Regional inequalities and cohesion policies in the european union

Abstract

In spite of the huge amount of public aids to poor regions, relative movements in the distribution of income, labor productivity and employment rates across European regions show no positive relation with the distribution of the Structural Funds. Specifically, widening employment gaps and a growing positive correlation between productivity levels and employment rates are brought to light. Furthermore, although the distribution of Funds committed by the Commission appears conform to equity and cohesion principles, once the total cost of projects - which includes the contribution of national authorities - is considered, the image of equity is blurred. This bias in the allocation process may have contributed to the scarce efficiency of EU regional policy carried out during the nineties.

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