Macroeconomic Functions of the European Union Budget and the Multinational Financial Framework for 2014-2020

This study aims to identify macroeconomic functions of the European Union budget and an indication of the possibilities and extent of the impact of the budget on the economy of the Community, as well as evaluating the functions performed on the background of Multiannual Financial Framework for 2014-2020. The budget of the European Union - despite many different opinions - can acts and actually performs close macro functions which are attributed to the modern national budgets. In order to demonstrate the veracity of this claim there were reviewed literature on the economic functions of the national budget, and it was referenced to the regulations of the functioning of the general budget of the European Union. This demonstrated the specificity and limitations of the impact of this budget on the economies of the Member States. Functions which are performed by the European Union budget were analyzed against the Multiannual Financial Framework for 2014-2020. The result of this study shows that the budget of the European Union performs five of the traditional functions of the state budget: redistributive, allocative, stimulus, information and control, and fiscal. But it does not perform the stabilizing function. The specificity of the impact of the EU budget shows the Multiannual Financial Framework for 2014-2020, which includes a particularly difficult period in the history of the Community - a period of recovery from the financial and economic crisis, as well as discussions and seeking a compromise on the shape and the possible strengthening of European integration in support of the primary instrument of fiscal policy, which is the budget. Current issues are therefore discussed in this paper, which are part of a Europe-wide debate on the future of the Community.