Unwritten Factors Affecting Structural Funds: The Influence of Regional Political Behaviours on the Implementation of EU Cohesion Policy

While EU regional policy has the ambitious objective of supporting lagging regions and promoting inter-regional convergence, its impact is dependent on the ability of regional policymakers to secure and use EU funding to meet the region's needs. This paper aims to show under which conditions politics has a defining influence on the distribution, allocation and utilization of structural funds (SF), specifically in Objective 1 regions. The empirical analysis focuses on the 2000–2006 programming cycle in France, Germany, Italy, Spain and the UK. The results show that regions politically aligned with national governing coalitions tend to perform better in terms of received SF support and enjoy more flexibility in implementing SF. However, the influence of regional political behaviours on economic performances is very limited. The findings confirm the importance of politics in influencing SF implementation, but its limited influence on economic outcomes.     

Institutional Influences on EU Funded Regional Technology Development in the UK: A Study of the Yorkshire and East London Regions in the 1990s

This paper seeks to place policy research undertaken in the Yorkshire and East London regions of the UK within the broader context of regional innovation system building. In particular, it attempts to draw out the releasing factors and conditions that shaped stakeholder relationships in these two EU Objective Two regions during the 1990s. This is undertaken with a view to drawing out conclusions about the extent of autonomy, institutional lock-in and compatibility within regional governance. The extent to which such EU stimulated influences are relevant to the practice of regional technological development is explored in areas which have experienced industrial restructuring.     

EU Regional Policy After 2006: Will Scotland Notice the Difference?

In order to accommodate the recent enlargements of the European Union (EU) there has been considerable changes to the operation of EU regional policy which means that Scotland along with other regions in the EU-15 will receive considerably less money from the Structural Funds in the future. This article discusses the extent to which the reduction in EU funding for economic development will impact on the Scottish economy. The issue is explored by considering the contribution, which Structural Funds have made in the past to economic development in Western Scotland, which has received the lion's share of the money allocated to Scotland. It is suggested that whilst the amount of economic development in Scotland will not be significantly reduced as a result of the decline in EU funds the types of projects and organizations receiving funding will alter because of changes made to the way in which the funds are administered in Scotland.     

Wales and objective 1 status: learning the lessons or emulating the errors?

West Wales and the Valleys is approaching the mid‐way point of its European funded Objective 1 programme—the highest form of Structural Fund aid for the Union's economically and socially ‘lagging’ regions. Objective 1 has afforded Wales the tools to develop an economic regeneration strategy aimed at improving the performance of the western part of the Welsh economy, and combating the country's entrenched pockets of economic and social disadvantage. However, after three years there are some important structural and implementation problems facing those managing Objective 1 in Wales, specifically in terms of the governance of the programme and resource allocation. This paper draws out these key issues by tracing the main fault lines in the design and delivery of the programme, and also offers some critical assessment of the initial economic impact of Objective 1. In short, this paper argues that Wales has shown little evidence of learning the lessons from other Objective 1 regions, but has been rather more adept at emulating the errors found elsewhere.     

Does EU cohesion policy work? Theory and evidence

This paper evaluates the effectiveness of European Cohesion Policy in the regions of 12 EU countries in the period 1991–2008, on the basis of a spatial growth model, which allows for the identification of both direct and indirect effects of EU funds on GDP per worker growth. We find that “Objective 1” funds are characterized by strong spatial externalities and a positive and concave effect on the growth of GDP per worker, which reaches a peak at the ratio funds/GDP of approximately 3 percent and becomes non‐significant after 4 percent. “Objective 2” and “Cohesion” funds have nonsignificant effects, while all the other funds exert a positive and significant effect, but their size is very limited. EU Cohesion Policy, moreover, appears to have increased its effectiveness over time. In the period 2000–2006 Objective 1 funds are estimated to have a median multiplier equal to 1.52, and to have added 0.37 percent to the GDP per worker growth. Overall, in the period 1991–2008, funds are estimated to have added 1.4 percent to the median annual growth, and to have reduced regional disparities of 8 basis points in terms of the Gini index.     

Reform of the structural funds after 1999

In efforts to promote cohesion in the EU, the structural funds are an important instrument. The current mandate for the funds comes to an end in 1999, and it mill have to be renegotiated shortly against a backdrop of the start of EMU and probable enlargement of the EU. This paper reviews the principles governing the structural funds and looks at the problems they face in practice. It then considers possible reforms to meet the obligations on, and expectations of, the EU in the years to come, and what these would imply for different regions as well as the potential new member states.     

The European Union Structural Funds and Regional Development. The Perspective of Small and Medium Enterprises in Eastern Poland

Abstract

The article concentrates on the role of European Union (EU) structural funds in the development of small and medium enterprises (SMEs). The analysis presented in this paper is based on the results of computer-assisted telephone interviews conducted with 394 representatives of enterprises localized in three Polish Voivodships: the Podkarpackie, the Lubelskie and the Podlaskie. The entire EU structural funds are based on the assumption that by additionally financing the development of SMEs, they influence regional development indirectly. Even though EU structural funds are not the only factor influencing economic growth and the creation of Gross Domestic Product, they affect the development potential of enterprises indirectly. However, from the perspective of the representatives of researched SMEs, EU structural funds are not so significant for commitment to investment. Actually, for SMEs in Eastern Poland, they have no effect on future investment plans. This bottom-up perspective researched in one of the poorest areas of the EU puts the assumption of the positive relation between the EU structural funds and regional development into doubt.     

The Regional Impact of EU Eastern Enlargement: A View from Germany

Based on a relational concept of regional analysis this contribution emphasizes that European Union (EU) Eastern enlargement will primarily lead to a restructuring or intensification of interregional economic relations. However, it rejects the widespread view that at first the border regions at the present EU Eastern boundary would be affected by Eastern enlargement. This view relies on the problematic assumption that the regions' transnational relations are subject to a logic of geographical nearness. The most important nodes of transnational economic relations in an enlarged EU are not the border regions, but certain regional development centres in the interior of the European economic space. Thus the regional impact of EU Eastern enlargement should be differentiated with regard to different types of regions: Particular advantages come towards the structurally strong regions in the interior of the present EU as well as the accession countries, whereas the structurally weak regions at the present EU Eastern boundary can gain advantages from Eastern enlargement only to the extent that they manage to overcome their endogenous blockades concerning cross-border economic cooperation and a positive attitude of the regions' population towards European integration.     

Spatial and sectoral differentiation of support to innovative companies from EU funds in Czechia

This paper aims to introduce a case study of Czechia in distribution of the EU funds and their spatial patterns. EU funds receive plenty attention from both European society and the scientific community. However, there is a lack of detailed evaluations of spatial and sectoral differentiation, which might bring a better understanding to the whole EU funds system. This paper attempts to fill this gap with a method of geographical differentiation analysis of the Czech operational programme Enterprise and Innovations 2007–15, which should increase the competitiveness of industry and develop services for commercial activities. Historically, subsidies often go to peripheral regions at the borderland with Slovakia and Poland, while regions along the borders with Germany and Austria receive only a low level of support. Jurisdictions of the major recipients from hi-tech sectors are mainly in the close vicinity of the largest cities (Praha, Brno), which are natural centres of high technologically demanding sectors, but a high share of high-tech subsidies goes to some peripheral districts as well. These findings can contribute not only to the academic discussion about contradictory developmental impacts of subsidies but to the all-European debate on the EU funds purposes as well.     

Are we spending too much to grow? The case of Structural Funds

We evaluate whether the impact of EU Structural and Cohesion Funds (EUF) on Member States’ regional economic growth depends on the intensity of treatment, measured by the normalized amount of funds distributed in each region. We use an original data set that covers all the main sources of EUF and extend the regression discontinuity design to the case of continuous treatment. The results suggest an average positive effect on regional growth. The estimated conditional intensity‐growth function is concave and presents a maximum value. Therefore, the exceeding funds could have been allocated to other lagging regions without reducing the effect on growth.     

Local Strategies within a European Policy Framework

This article discusses the Lisbon Agenda from the perspective of entrepreneurship policy. After a brief overview of the events leading up to the development of the Lisbon Agenda, the authors describe the goals and content of this policy framework as well as of the structural funds. Using examples of initiatives towards implementation at the local level, the authors illustrate the necessity to promote entrepreneurship in order to foster economic growth in communities and regions. We assess how the new European growth policy became translated into an action plan realized through structural funds and community initiatives and demonstrate that a greater focus on entrepreneurship policy could strengthen the Lisbon Strategy and aid in the achievement of its goals.     

Do EU Regional Policies Favour Regional Entrepreneurship? Empirical Evidence from Spain and Germany

The European Commission in the scope of its cohesion policy tries to increase competitiveness of the European Union (EU) regions by supporting, beside many other instruments, entrepreneurial activities in the EU sub-national regions. This paper sheds an empirical light on the relationship between entrepreneurial activities and entrepreneurial perceptions on the one hand and the economic performance of regions eligible for EU regional policies in Spain and Germany on the other. Based on empirical data on the NUTS2 level, there will be analysis of whether previous EU support has later had an impact on entrepreneurial activities and/or entrepreneurial perception in the regions. The results show empirical evidence for a relationship between entrepreneurial activities and EU regional policies. However, other determinants such as gender and the role model function have an even stronger impact. Some of the results may help to increase the effectiveness of EC regional policies and of regional policies of the national governments, especially if the interdependence of entrepreneurship support policies and proper regional policies is considered.     

European Corridors as Carriers of Dynamic Agglomeration Externalities?

Transport corridors are viewed as a promising way forward in European Union (EU) transport policy, assumed to contribute positively to regional economic development. However, the validity of this assumption is not evident. The aim of this paper is to empirically test whether agglomeration economies in European transport corridor regions are positively related to indicators of regional economic development compared to regions outside the scope of corridors. The results build on the notion that the type of agglomeration economy in combination with the structure of the economy matters for prospects of structural economic growth in different regions. In this way, the analysis not only contributes to enhancing the empirical scrutiny of the corridor concept in EU transport policy, but also provides new insights into how corridors contribute to regional economic growth. We find only limited evidence for a corridor effect across European regions on productivity and employment growth externalities. Instead, we find a large degree of spatial heterogeneity interacting with corridors—a heterogeneity that has been little recognized in EU policies. We suggest that recent attention to place-based development strategies may accord well with the kinds of agglomeration effects related to corridor development observed in this study.     

European Union Competition Policy and the European Territorial Cohesion Agenda: An Impossible Reconciliation? State Aid Rules and Public Service Liberalization through the European Spatial Planning Lens

The territorial and spatial planning impacts of European Union (EU) economic and competition policies have remained under-researched in the field of European spatial planning, in contrast to other EU policy fields. This briefing explores how two elements of the EU competition policy, the regulation of “state aid” and the liberalization of “services of general interest (SGI)”, have significant implications for the pursuit of the objective of territorial cohesion through spatial planning and territorial development policies at different scales. The paper first reviews the development of the concept of territorial cohesion in the EU discourse and policy agenda since the mid-1990s, as well as the contribution of public services (Services of General Interest, or SGI in EU jargon) to it. It, then, reviews how the EU state aid rules and liberalization policies affect the state's ability to intervene (i) in support of sub-national territories which are lagging behind or suffering decline, and (ii) in the provision of public services across the national territory, specifically in peripheral regions or areas where the provision is not catered for by the market. The conclusion of the paper outlines the additional challenges to the pursuit of territorial cohesion in the EU posed by the post-2008 economic crisis and suggests avenues for future research.     

Foreign Aid after the Cold War

This paper argues that foreign aid programmes originated as part of the ideological confrontation known as the Cold War and that the motives behind aid were always more political than economic. It is further argued that the economic justifications for foreign aid — filling ‘gaps’ in capital, technology and skills—are suspect and that the economic benefits in terms of long-term development are at best negligible. Turning to the future, foreign aid programmes are bound to change to reflect the new realities of global international relations. Nine specific predictions are made about the future size and composition of aid programmes. The outlook for those who favour aid is not bright, but recent changes in thinking about development suggest that more sell-reliant strategies could well be more beneficial to the poor than conventional aid-supported strategies.     

Regional Policy and the 'Regionalization' of University-Industry Links: A View from the English Regions

As several senior figures in UK Government have recently professed to want to promote the knowledge-driven economy across the nation, discussion of university-industry ties in less-favoured regions is particularly salient. This account documents how UK central government efforts to encourage greater university-industry links have increasingly taken on a regional dimension but then stresses that these efforts do not constitute a 'regional policy' (in the traditional sense of measures that seek to reduce interregional economic disparities). This activity is then set within the context of overall Government and European Union (EU) funding to universities which is also at odds with stated government aims of lessening regional economic disparities. The article goes on to highlight how mainstream regional policy, particularly that of the European Commission, has seen considerable support for university-industry activity in the regions but has faced an uncertain future due largely to the spectre of fund-draining EU expansion. The article concludes by asking what policies might be pursued for university-industry links to be increased in weaker regions. The underlying aim of the article is to contribute towards raising the profile of universities in debates about reducing interregional economic disparities (that must, in turn, be much higher on the public policy agenda).     

SPATIAL DISCONTINUITY FOR THE IMPACT ASSESSMENT OF THE EU REGIONAL POLICY: THE CASE OF ITALIAN OBJECTIVE 1 REGIONS*

The economic impact of the Regional Policy of the European Union is still controversial. This paper exploits administrative boundaries as spatial discontinuity to estimate the causal effect of this policy on the Italian Objective 1 regions’ employment. The analysis, developed both in a border strategy framework (municipalities contiguous to the policy‐change boundary) and with more traditional RDD models balanced by spatial forcing variables (centroids’ distance and coordinates), shows that the EU Regional Policy produced a positive impact on employment levels, without any displacement of economic activities away from nontreated regions and a concentration of the impact in key economic sectors.     

Why a British referendum on EU membership will not solve the Europe question

This article scrutinizes the merits of holding a referendum over UK membership of the EU. It queries the assumption that direct democracy can somehow resolve the longstanding Europe question in British politics. To do this, the analysis traces the existence of an exceptionalist approach to the EU within Britain, now associated with re‐negotiating UK membership in the shadow of a referendum. The article argues that the prospects for a radical reconfiguration of the UK's treaty obligations are slim, thereby increasing the risk of a vote to withdraw. Yet withdrawal would be the opposite of a simple solution to the Europe question. Political and economic interests dictate lengthy politicking over a highly complex post‐Brexit settlement revisiting free movement of goods, services, capital and people. Such negotiations undermine any mooted cathartic benefits of a popular vote, while Eurosceptics will remain dissatisfied in the event of a yes, a result likely to further destabilize the Conservative Party. Consequently, the simplicity and decisiveness that a referendum—particularly one that spurns the EU—promises is merely a mirage as relations with the EU necessarily form part of an enduring British political conversation.     

Civic Sacrament and Social Imaginaries in Transition: The Case of the South African Churches and the Truth and Reconciliation Commission

Abstract

This article reflects on a seminal moment within South Africa's Truth and Reconciliation Commission (TRC): the appearance of the African Initiated Churches (AICs) before the Commission in 1997. It demonstrates how this moment brought into relief divergent contestations of the public within South African Christianity in three ways: first, by situating the TRC within the liturgical performance of a reimagined South African nationality, making it a "civic sacrament" of reconciliation; second, by highlighting the formative role churches themselves played within this liturgy, deploying theological language to create a healed, secular body politic; third, by displaying the different social imaginary of the AICs—a social imaginary which interrupted the TRC's liturgical recreation of time and space, as well as challenging the historical relations between church and state in South Africa. The paper concludes with the question posed in this "interruption," a question that challenges the broader church with regard to fulfillment of the liturgy not in the secular nation-state, but in that City which is to come.     

The Unbearable Instability of Structural Funds' Distribution

In order to promote “cohesion, competitiveness and cooperation” across Europe, the EU has established a common regional policy to support underdeveloped territories. This EU regional policy required to set up a very complex mechanism to implement such a huge effort to coordinate many interventions across highly differentiated territories. However, those territories are provided with very different institutional settings, and then the mechanism to coordinate all of them becomes particularly complex. The aim of this paper is to discuss the EU multi-level governance for structural funds (SFs), revising the origin, rationale and evolution of this policy in order to identify the limits of the institutional mechanism for the implementation of this policy. These limits will show their effects on the unstable distribution of SFs across the EU regions on a long-term perspective. Results show that the intervention of the EU is neither constant nor stable across regions, independently from their development paths. This instability should provide further arguments on the discussion about the SF policy and governance in order to take into considerations also institutional limits of the EU.