World Economy and Policy, 2026 (vol. 2026), issue 2

The EU Budget in Times of Crisis: The Importance of the Short‑Term Stabilisation Effect of the ESIF

Eliška Sankotová

World Economy and Policy 2026, 2026(2):1  

Against the backdrop of recurring crises, the limited flexibility and capacity of the EU budget to respond to economic shocks has been highlighted. This article examines whether transfers from the European Structural and Investment Funds fulfil a short-term macroeconomic stabilisation function within the EU budget. The aim is to empirically verify the countercyclical effect of the ESIF in relation to the stabilisation of gross national income. The analysis uses a VAR model and an impulse response function based on data for the period 1986-2026. The results show that the ESIF do not exhibit a statistically significant short-term stabilising effect in...