Patterns and trends of public investment in the new Member States of the European Union

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Available languages : English
Period : 2007-2013
Date : 10/01/2010

Public expenditure is lower in new Member States (NMS) than in the EU-15 countries for a number of reasons. Lower expenditure in social protection in NMS is a key source of the difference. Nevertheless, despite restrictions on total expenditure, public investment is on average higher in NMS in terms of GDP. This higher investment can be linked to a significant extent to the support from European Cohesion Policy (ECP), which accounts in NMS for 55% of public expenditure in environmental protection and 10% in economic affairs and human capital. Following the economic crisis, public investment is under pressure and declining in some NMS, underlining the importance of continued efforts under EU Cohesion Policy.