The role of the European Union funds in economic development

The European Union project initially started as a peaceful solution for post- war reconstruction in Europe. European countries decided to cooperate rather to compete in an aggressive way. At the beginning, this project supposed market liberalization, trade barriers removals, market access improving (initially for coal, steel, energy and, later, for all goods, services, workforce and capital). Unfortunately, in the last decades, all these Single Market facilities have been backed by redistributive schemes, protectionist mechanisms, social engineering, subsidies and facilities packed in so-called "EU policies". New "European" institutions have been created; more and more funds have been involved to financially support this very complex redistributive intervention. Political dimension of the European Union project enhanced the economic dimension and constantly suffocated private markets and economy. The "incomes" of the European Union that fuel its financial support are coming from taxes and / or inflation (better administrated after the introduction of Single Currency - euro). This paper will discuss the relevance of European Funds for economic development, especially for new members in this project.