This study examines the impact of the European Union’s Common Agricultural Policy (CAP) funds, specifically the European Agricultural Fund for Rural Development (FEADR) and the European Agricultural Guarantee Fund (FEGA), on a range of economic, social, and environmental outcomes across European regions. Utilizing Fully Modified Ordinary Least Squares (FMOLS) estimators, this research analyses 13 equations corresponding to various dependent variables, including employment rates, poverty levels, agricultural productivity, and environmental indicators such as greenhouse gas emissions and renewable energy production from agriculture. This analysis covers the period from 2010 to 2021, and draws upon a balanced sample of 301 observations to ensure robust estimations. Results indicate that both FEADR and FEGA payments significantly influence these regional outcomes, though the effects vary depending on the specific economic or environmental indicator examined. The findings reveal that while FEADR payments positively impact rural employment, agricultural income, and renewable energy production, they are less effective in addressing poverty reduction and productivity enhancement. Conversely, FEGA payments exhibit a stronger influence on agricultural productivity and income, but have mixed effects on environmental sustainability. This study highlights significant regional disparities, suggesting that the allocation of CAP funds is uneven in its impact across regions. The implications for policymakers are clear: a more tailored approach is required to enhance the effectiveness of CAP funds in meeting diverse regional needs, particularly in promoting economic development while minimizing environmental harm. This study also emphasizes the need for further research to explore alternative policy mechanisms and innovative agricultural practices that can bridge the gaps identified in the current CAP framework. Limitations of this study include data availability and the inherent complexity of agricultural systems, which may affect the generalizability of the results across different EU member states.

In the context of current global challenges, the integration of digitalization, financial performance, and renewable energy is pivotal in fostering sustainable and resilient economic development. The aim of this paper is to explore the interplay between banking performance, digitalization, and renewable energy consumption in the context of the European Union (EU), with a focus on sustainable economic development. This study examines the extent to which the digitalization and efficiency of the banking sector influence the uptake of renewable energy considering the EU’s environmental and economic priorities. The methodology used involves an econometric analysis based on statistical data from EU countries, using Fully Modified Ordinary Least Squares (FMOLS) to assess causal relationships between variables, complemented by Vector Autoregression (VAR) models and Granger causality tests to further investigate the dynamic interactions among the variables. The data were analyzed to examine the correlation between banking performance, digitalization, and renewable energy consumption levels. The results reveal a positive correlation between greater digitalization in the banking sector, stronger financial performance, and higher investments in renewable energy sources. These factors also support the transition to a green economy, but the effect varies between EU countries depending on national policies and existing digital infrastructure. Recommendations for policymakers include stimulating digitalization in the financial sector, creating a regulatory framework to encourage green energy investments, and strengthening collaboration between financial institutions and the energy sector to facilitate the transition to renewables. This paper also suggests a fiscal policy conducive to technological innovation and digitalization to accelerate the uptake of renewable energy.

Financial development is often associated with significant economic growth, but studies have shown that a high level of financial development can be the cause of deepening income inequality in many countries. The main objective of the proposed study is to identify to what extent financial development influences income inequality in Central and Eastern European Countries (CEEC). Thus, for the model specification we used as dependent variable the Gini coefficient and as independent variable the financial development index. The sample period for the analysis was from 2004 to 2019, restricted by the lack of data on the Gini coefficient in CEECs. Data on the financial development index were collected from International Monetary Fund, and data on the Gini coefficient were extracted from the World Bank’s Poverty and Inequality Platform. The study unravels several contributions. First of all, the use of quantile regression allowed for the examination of the effects of financial development across the entire distribution of income inequality. Second of all, the use of a comprehensive financial development index offered a more robust and comprehensive measure of financial development compared to single indicators. Taking into account that the Gini coefficient must be close to zero, this result was a positive one with, in essence, financial development reducing income inequality in CEECs. Thirdly, the specific focus on CEECs fills a gap in the literature. Finally, the findings of this study have important policy implications. The obtained results indicate a negative causal relationship between financial development and income inequality, emphasizing the fact that the relationship between these two components cannot be generalized for all regions. These might include measures to promote financial inclusion, improve financial literacy, and enhance the stability and efficiency of financial systems. Supporting financial development in CEECs and similar transition economies can be an effective strategy for tackling income inequality.