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Cohesion Policy – Aims and Instruments

Title: Cohesion Policy – Aims and Instruments

Seminar Paper , 2007 , 10 Pages , Grade: 1,5

Autor:in: Master of Science in Management Swen Beyer (Author)

Business economics - Miscellaneous
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Der Grundgedanke Europäischer Kohäsionspolitik ist es, wirtschaftliche und strukturelle Differenzen auf nationaler und regionaler Ebene zu harmonisieren. Um diese Defizite perspektivisch und gezielt zu beheben, hat die EU Kommission Fonds aufgesetzt. Die verschiedenen Arten der finanziellen Unterstützung und deren Handlungsrahmen wird auf den folgenden Seiten erläutert. Durch die Aufnahme der 10 neuer Länder in die EU 2004, steht die Europäische Kohäsionspolitik vor neuen Herausforderungen.

Excerpt


Table of Contents

1. Introduction

2. General Aims of Cohesion Policy

3. Division of the EU areas

4. Elements/ Instruments of European cohesion policy

4.1 Structural Fund

5. Cohesion policy for the period 2007-2013

6. Conclusion: Evaluation of Cohesion Policy

Objectives and Topics

The primary objective of this publication is to examine the instruments and strategic aims of European Cohesion Policy, specifically focusing on how the European Union addresses economic disparities and regional development gaps among its member states through targeted financial support.

  • Theoretical foundations and objectives of regional cohesion within the EU.
  • Categorization of EU areas based on economic intensity and support needs.
  • Functional analysis of the various financial instruments, including the Structural and Cohesion Funds.
  • Evaluation of the effectiveness of cohesion measures on regional development.
  • Challenges posed by EU enlargement and the need for future policy reforms.

Excerpt from the book

3. Division of the EU areas

In order to distribute the funds fairly and correctly, the commission has made up three categories corresponding their intensity and need for support.

Objective 1: Areas suitable for objective 1 funding must have an average GDP per capita below 75% of EU average GDP per capita. The EU Commission is checking this criterion quite strictly and areas overcoming this maximum level have to phase out their programs (for example Ireland in 2004). Different funds are used for improvement of infrastructure, coaching and assistance for small and medium sized enterprises, the support of research and development institutions and advanced technology transfer. The aim of the vocational training is to make the integration of unemployed easier. During the period 2000-2006 approximately 64% of the whole funds was given to Objective 1 areas (Wagener, Eger, Fritz 2006: p.502). These were 50 regions that include 22% of the European population (Ribhegge 2006: pp.96). All cohesion countries mainly consist of Objective 1 regions.

Objective 2: Areas often hit by economic crisis, like declining industrial and rural output, or highly relying on fishery, which find themselves in the process of economic and social restructuring are eligible for objective 2. The most important criterion for this objective, is the rate of unemployment (especially youth unemployment) particular one-sided employment in industry or agriculture. Hence the basic aim is, to diversify the employment, generate a better business culture and to advance the protection of the environment. About 10% of the structural fund is given to objective 2 regions (Wagener, Eger, Fritz 2006: p.502).

Objective 3: This area has the goal to equalize and modernise the educational and employment systems basically with the social fund. The amount of the financial support depends on the class (objective) where the region is located in. Objective 3 is only horizontally oriented, i.e. where, in general all regions with some kind of problem can get support from the structural fund. Regarding objective 1 and 2 the structural fund has a regional orientation.

Summary of Chapters

1. Introduction: Outlines the historical context and the persistent necessity of economic cohesion to reduce disparities between European regions.

2. General Aims of Cohesion Policy: Explains the dual objectives of supporting underdeveloped areas and balancing regional economic disparities within the EU.

3. Division of the EU areas: Details the three-tier categorization system used by the Commission to distribute funds based on specific regional needs.

4. Elements/ Instruments of European cohesion policy: Describes the various financial tools and funds available to member states for development.

4.1 Structural Fund: Provides a breakdown of the specific functions of the ERDF, ESF, EAGGF, and FIFG.

5. Cohesion policy for the period 2007-2013: Discusses the new challenges resulting from EU eastern enlargement and the subsequent need for policy adjustments.

6. Conclusion: Evaluation of Cohesion Policy: Synthesizes the effectiveness of past interventions and reviews the developmental progress of the major Cohesion countries.

Keywords

European Union, Cohesion Policy, Structural Funds, Regional Development, GDP, Economic Disparities, Objective 1, Objective 2, Objective 3, EU Enlargement, Infrastructure, Unemployment, Financial Instruments, Economic Integration, European Integration

Frequently Asked Questions

What is the core focus of this work?

The work focuses on the European Union's regional cohesion policy, examining its primary objectives, financial mechanisms, and the historical development of support for member states.

What are the central thematic fields covered?

Key themes include regional economic inequality, the criteria for funding eligibility, the structure of the various EU funds, and the evaluation of economic progress in supported countries.

What is the primary objective of this publication?

The primary objective is to analyze the aims and instruments of cohesion policy and determine how effectively these measures have served to harmonize economic structures across the EU.

Which scientific methodology is used?

The author employs a descriptive and analytical review of existing literature, official EU reports, and empirical data, such as GDP per capita statistics, to assess policy impact.

What topics are discussed in the main body?

The main body covers the theoretical basis of cohesion, the categorization of EU regions (Objectives 1, 2, and 3), the functionality of specific funds like the ERDF and ESF, and the impact of the 2004 eastern enlargement.

Which keywords characterize this paper?

The paper is characterized by terms such as Cohesion Policy, Structural Funds, Regional Development, Economic Integration, and European enlargement.

How does the EU classify regions for funding purposes?

Regions are classified into three categories based on their economic intensity and need: Objective 1 (regions with GDP below 75% of EU average), Objective 2 (regions in restructuring or crisis), and Objective 3 (horizontally oriented support for education and employment).

What impact did the 2004 EU enlargement have on cohesion policy?

The enlargement significantly increased the gap between the richest and poorest regions, as new member states generally had a lower GDP per capita, thereby increasing the pressure on existing cohesion funds.

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Details

Title
Cohesion Policy – Aims and Instruments
College
European University Viadrina Frankfurt (Oder)  (Economics)
Grade
1,5
Author
Master of Science in Management Swen Beyer (Author)
Publication Year
2007
Pages
10
Catalog Number
V152760
ISBN (eBook)
9783640649907
ISBN (Book)
9783640649549
Language
English
Tags
EU Chesion Policy Agricultural policy Subsidies Agrar Subventionen
Product Safety
GRIN Publishing GmbH
Quote paper
Master of Science in Management Swen Beyer (Author), 2007, Cohesion Policy – Aims and Instruments, Munich, GRIN Verlag, https://www.grin.com/document/152760
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