Transformation of the Fiscal Mechanism of EU Member States and Ukraine During the Covid-19 Pandemic: from Consumption Supporting of to Investment Stimulation

Faced with COVID-19, most countries have used the fiscal mechanism to mitigate the effects of the coronavirus crisis, which primarily involved supporting economic subjects and ensuring the required level of consumption. However, on the way to overcome the pandemic, it is necessary to use a fiscal mechanism to stimulate investment, which is an important prerequisite for economic recovery. Therefore, the purpose of the article is to determine the role of the fiscal mechanism in the context of the COVID-19 pandemic and justify its reorientation from supporting consumption to stimulating investment. In the course of the research, it was established that in modern conditions the fiscal mechanism acquires special significance, becoming a priority tool for the struggle of states against the consequences of the corona crisis, shifting the emphasis from the previous priority of the monetary mechanism. The impact of the fiscal mechanism in terms of budget revenues, budget expenditures, government loans, and guarantees on consumption and investment in EU member states and Ukraine were analyzed. As a result of the study, it was found that the COVID-19 pandemic, which has intensified all existing socio-economic problems of states, despite all its negatives, can become a springboard for qualitatively new investment development. At the same time, it is necessary not to change the design of the fiscal mechanism, but to reorient it to more efficient and adapted to new conditions investments in the development of green and digital economy, as well as strengthening the socio-economic stability of countries.