Evaluation of the EU Policy Concerning the Basic Economic Functions of a Modern Government in a Mixed Economy

The paper analyses the budget of the European Union in terms of its redistribution power and stabilization efficiency. The redistribution of finance from rich regions to poorer ones is an important function of public budgets. The EU budget only partially fulfils this function. Stabilizing economic development is another important function of public budgets. Also, the effectiveness of the EU budget in this area is not sufficient and could be significantly strengthened.