The author's purpose is to estimate the redistributive power of the European Union budget among the European countries and regions. The analysis is focused on the main items of revenue, expenditure, and net fiscal balance. First, the income elasticity of the European Union revenues, expenditures, and fiscal balance are estimated in order to examine the degree to which these instruments are progressive. Second, the impact of these instruments in the regional and national income is analysed with the objective of evaluating the capacity to reduce differences in per capita income levels.
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