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A quick Guide to Regional Policy. Its origins and purpose. What is regional policy ?. Article 158 of the Treaty states that:

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a quick guide to regional policy

A quick Guide to Regional Policy

Its origins and purpose

what is regional policy
What is regional policy?
  • Article 158 of the Treaty states that:

"in order to strengthen its economic and social cohesion, the Community shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions or islands, including rural areas"

also called:

    • cohesion policy
    • structural policy
    • refers to the Structural Funds
    • or "EU money"!
origins
Origins

Treaty of Rome set up:

  • CAP
  • European Social Fund
  • No specific provision for regional policy or regional fund

Why?

  • Common market thought to be enough
  • Strong economic growth in 1950s and 1960s
why change
Why change?
  • Recession of 1970s highlighted development gaps
  • Regional disparities increased with accession of:
    • 1973: UK, Ireland and Denmark
    • 1981: Greece
    • 1986: Spain and Portugal
why is regional policy important
Why is regional policy important?
  • Socio-economic cohesion considered to be a priority for the European Union
  • Second most heavily funded sector in the Union after the Common Agricultural Policy.
  • From less than 5% of 1975 budget to 35% of 1999 budget Now moving towards 40%, especially if you add research
  • € 233 billion. (approximately £ 160 billion)
  • Visible sign of the EU
  • Promotes convergence (helping poorer regions develop)
economic rationale
Economic Rationale
  • Effects of single market on regional disparities
  • Migration to rich areas not poor
  • Less mobility in Europe
  • Social costs
political rationale
Political rationale
  • need to legitimise the new economic and political order
  • fiscal and monetary policy seen as not being enough
  • "sweetener" for Member State accession
slide8

Greater differences between regions and Member States:

  • regional disparity levels are higher than national disparities but are also falling
  • Over ¼ of EU-27 population lives in regions below 75% of EU average GDP
  • 13 Member States of EU-27 have GDP below 90% of average – 21% of population
regional and cohesion policy
Regional and Cohesion Policy
  • Three new objectives
  • Convergence (like old Objective 1: greater scope) 81.9%
  • Competitiveness (old Objective 2&3, tie to Lisbon) 15.7%
  • Territorial co-operation (former Interreg programme and RFEC networks to test ideas) 2.4%
eu structural funds
EU Structural Funds
  • The 2007-2013 Structural and Cohesion Funds
  • The European Council of December 2005 agreed a total Structural Funds budget of €308 billion for 2007-13. 
  • As a result of the agreement, the UK will continue to receive substantial Structural Funds receipts, amounting to €9.4 billion (2004 prices), for 2007-13.
the neighbourhood policy of the eu
The Neighbourhood Policy of the EU

Partners:

  • Russia, Ukraine, Belarus and Moldova
  • Mediterranean partners: Algeria, Egypt, Israel, Jordan, Lebanon, Libya, Morocco, Syria, Tunisia, as well as the Palestinian Authority
  • inclusion of Armenia, Azerbaijan and Georgia

National Action Plans (3-5 years):

  • Alignement with EU standards
  • Co-operation on EU polices

- Dialogue on counter-terrorism

  • Participation in EU Programmes

- Co-operation on JHA

regional policy 2007 2013
Regional Policy – 2007-2013

Objective 'Regional

Competitiveness and Employment

Red – Convergence Criteria

Blue = Competitive – bring in regions already over 75%

Pink = Statistically affected regions

slide17

<50

Regional Disparities in EU27

GDP per head in % in PPP (2002)

50 - 75

75 - 90

90 - 100

100 - 125

 125

Index, EUR-27 = 100

slide18

EU Regional Policy 2000-06

40% to 49,9%

of EU population

(155→224 Mio.) in eligible areas (Obj. 1 & 2)

233 bn. Euro

(one third of the EU budget)

slide20

Convergence-Objective:

Regions below 75% of EU25 GDP

Average 2000-2002

86 Regions

124 million inhabitants

27.3%of EU population

Allocation: EUR 177.8 bn

conclusions
Conclusions
  • Does it work?
    • across Member States yes
    • within Member States less
  • What will enlargement do (Poland 40 million, Spain 40 million)
    • from 15 to 25 Member States
    • new Member States are much poorer
    • pressure on budget
  • Causes friction between member-states
    • Poor vs. rich
    • South vs. North
    • East vs. West