Fiscal sustainability requires that governments respect the intertemporal budget constraint at present value. We test the cointegration between public expenditures and revenues as ratios of GDP as a condition for the sustainability of budgetary policies in the European Union.

This paper aims to evaluate the trade potential of manufactured products between countries belonging to the EU in the threshold of its Eastern enlargement. For this purpose we use a Gravity model which is estimated with a Poisson Pseudo-Maximum Likelihood Method. We extend the specification of...