After the successful and Eu(ro)phoric introduction of Europe‘s new currency – the new symbol of the Europe’s unity – emotions, especially among the Brussels technocrats, cooled down rapidly. The negotiations with the Candidate Countries entered in a new stage. Latest since the Council Meeting in Laeken the enlargement of the EU is conducted in an increasingly rational manner1. In February 2002 rumours indicated the difficulties, which the European Union faces after the enlargement.
A prominent objective of the EU is the regional cohesion, the relative regional equality, thus can hardly be accomplished in its today’s structure after the accession of up to 12 countries. The reform of the EU Agricultural and Structural Policy is inevitably today. It will need much more efforts to do so after the enlargement of the European Union. However, the agenda for enlargement is set by the political elites, not by EU bureaucracy. Thus, the negotiations may be used for a certain kind of political blackmailing within the Community. Yet, the enlargement must not fail by financial disruption, since this could easily result in dissolution of all of the European experiment2. The EU Structural Policy has been so far a more or less efficient tool to bridge the unequally distribution of wealth in the Community. It thus provided for a sustainable development and a well-balanced social climate among the Member States and its Regions. Accordingly, aim of this paper shall be first to define the term of cohesion and identify means of structural policy. The EU generated a variety of tools to accomplish its objectives in regard of “raising of the standard of living and quality of life, and economic and social cohesion” 3. Accordingly, the second part of the paper shall be devoted to describe in a limited scope the actual mechanisms of EU Structural Policy. Finally, the approaching enlargement of the Community will provoke further inconveniences concerning the Agricultural and Structural Policy. Hence, the predictable implications of the enlargement will be discussed in the last part of this paper.
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Table of Contents
1. Introduction
2. Cohesion and Structural Policy
3. EU Structural Policy
3.1 Objectives
3.2 Means of EU Structural Policy
3.3 Agenda 2000
4. Implication of EU enlargement
4.1 Social and Economic Cohesion vs. the EU budget
4.2 PHARE, ISPA, SAPARD, or even XYZ?
5. Conclusion
Research Objectives and Themes
This paper examines the function and mechanisms of the EU Structural Policy and evaluates the potential implications of the upcoming EU enlargement on these existing structures. The central research question explores whether the current structural policy framework can effectively accommodate the needs of new member states without facing financial disruption or compromising its objective of regional cohesion.
- The theoretical foundations and technical definitions of EU cohesion and structural policy.
- An analysis of the instruments and funds used to manage regional disparities and economic transitions.
- The impact of the Agenda 2000 reforms on budgetary allocations and the prioritization of structural objectives.
- The socio-economic challenges presented by the inclusion of candidate countries, particularly concerning employment and infrastructure.
- A critical evaluation of the sustainability of current EU financial resources in light of an enlarged union.
Excerpt from the Book
3. EU Structural Policy
The mentioned ‘unpleasant certainties’ imply financial interventions predominately in the system of European fiscal adjustment to bridge the regional disparities, while accomplishing exact determinate purposes. To put it in other words, the EU Structural Policy intends first and foremost to establish nothing but a relative equality of living conditions in the area of the Community, which in the end provide for a sound development. All of Europe’s societies benefited from the establishment of the Common Market, and they will inevitably draw their advantages from the common currency. ALLEN thus argues that the Structural Policy rather hints on a short to mid term perspective, “while, in the long run, the operation of the market itself should provide increased welfare for all and reduce the regional disparities”. However, the formerly existing gap between poor and rich regions prevailed and prevails. From a EU perspective, the Southern enlargement and the re-unification of Germany even increased these disparities. Yet, the principle of solidarity among the Member States of the EU, featured already through the founding Treaties leaves no alternatives but to cope with these unequal developments.
Summary of Chapters
1. Introduction: Outlines the historical context of EU enlargement and sets the stage for the necessity of reforming agricultural and structural policies.
2. Cohesion and Structural Policy: Distinguishes between technical bureaucratic definitions of cohesion and the broader political goals of establishing relative equality of living conditions.
3. EU Structural Policy: Details the specific objectives, the functioning of structural funds (ERDF, ESF, etc.), and the impact of the Agenda 2000 reforms.
4. Implication of EU enlargement: Analyzes the economic consequences of admitting new member states, including budget constraints and the role of pre-accession programs like PHARE and ISPA.
5. Conclusion: Synthesizes the challenges ahead, suggesting that the current financial scope may be insufficient for a successful, sustainable enlargement.
Keywords
EU Structural Policy, European Enlargement, Economic Cohesion, Regional Disparities, Agenda 2000, Common Agricultural Policy, European Regional Development Fund, PHARE, ISPA, SAPARD, Fiscal Adjustment, Candidate Countries, Sustainable Growth, Solidarity, Budgetary Projection
Frequently Asked Questions
What is the primary focus of this research?
The paper examines how the EU Structural Policy manages regional economic disparities and evaluates the challenges posed by the impending enlargement to include candidate countries.
What are the core themes addressed in the work?
The core themes include the definition of cohesion, the operational mechanisms of EU financial instruments, the budgetary impact of enlargement, and the socio-economic transitions required in candidate countries.
What is the central research question?
The research questions whether the existing mechanisms of the EU Structural Policy are robust enough to maintain regional cohesion amidst the financial constraints and increased scope following the accession of up to 12 new members.
Which scientific methods or approaches are utilized?
The author employs a descriptive and analytical approach, synthesizing legal Treaty foundations, budgetary data, and political-economic theory to evaluate policy effectiveness.
What does the main body of the paper cover?
The main body covers the theoretical basis of cohesion, the specific structure of the funds, the reforms under Agenda 2000, and a comparative analysis of the pre-accession instruments (PHARE, ISPA, SAPARD).
Which keywords best describe the work?
Key terms include EU Structural Policy, Economic Cohesion, Agenda 2000, Regional Disparities, and Enlargement, among others listed in the summary section.
How does the author view the role of the PHARE program?
The author views PHARE as a vital tool for institution building and adapting legal frameworks in candidate countries, though notes it serves a different, preparatory purpose compared to the primary Structural Policy funds.
What is the author's outlook on the future of Structural Policy post-enlargement?
The author is cautious, arguing that without significant reform and increased financial contributions from member states, the current structural policy risks being unable to effectively address the inequalities in an enlarged union of 27 members.
- Quote paper
- Heiko Bubholz (Author), 2002, EU Structural Policy and the Implications of Enlargement, Munich, GRIN Verlag, https://www.grin.com/document/6242
