Regional policy of the European Union

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The Regional policy of the European Union (EU), also referred as Cohesion Policy, is a policy with the stated aim of improving the economic well-being of regions in the EU and also to avoid regional disparities. More than one third of the EU's budget is devoted to this policy, which aims to remove economic, social and territorial disparities across the EU, restructure declining industrial areas and diversify rural areas which have declining agriculture. In doing so, EU regional policy is geared towards making regions more competitive, fostering economic growth and creating new jobs. The policy also has a role to play in wider challenges for the future, including climate change, energy supply and globalisation.

The EU's regional policy covers all European regions, although regions across the EU fall in different categories (so-called objectives), depending mostly on their economic situation. In the current 2014–2020 funding period, money is allocated differently between regions that are deemed to be "more developed" (with GDP per capita over 90% of the EU average), "transition" (between 75% and 90%), and "less developed" (less than 75%), and additional funds are set aside for member states with GNI per capita under 90 percent of the EU average in the Cohesion Fund. Between 2007 and 2013, EU regional policy consisted of three objectives: Convergence, Regional competitiveness and employment, and European territorial cooperation; the previous three objectives (from 2000–2006) were simply known as Objectives 1, 2 and 3.

Objectives

File:European regional policy 2014.svg

Eligibility of regions for different objectives from 2007 to 2013:

  Eligible under Convergence objective

  Phasing out eligibility under Convergence objectives

  Eligible under Regional competitiveness and employment objective

  Phasing in eligibility under Regional competitiveness and employment objective.

Less developed regions

By far the largest amount of regional policy funding is dedicated to the regions designated as less developed. This covers Europe's poorest regions whose per capita gross domestic product (GDP) is less than 75% of the EU average. This includes nearly all the regions of the new member states, most of Southern Italy, Greece and Portugal, and some parts of the United Kingdom and Spain.

With the addition of the newest member countries in 2004 and 2007, the EU average GDP fell. As a result, some regions in the EU's "old" member states, which used to be eligible for funding under the Convergence objective, became above the 75% threshold. These regions received transitional, "phasing out" support during the previous funding period of 2007–13. Regions that used to be covered under the convergence criteria but got above the 75% threshold even within the EU-15 received "phasing-in" support through the Regional competitiveness and employment objective.

Funding for less developed regions, like the Convergence objective before it, aims to allow the regions affected to catch up with the EU's more prosperous regions, thereby reducing economic disparity within the European Union. Examples of types of projects funded under this objective include improving basic infrastructure, helping businesses, building or modernising waste and water treatment facilities, and improving access to high-speed Internet connections. Regional policy projects in less developed regions are supported by three European funds: the European Regional Development Fund (ERDF), the European Social Fund (ESF) and the Cohesion Fund.

Areas designated as less developed

• Bulgaria – all
• Croatia - all
• Czech Republic – all (except Prague)
• Estonia – all
• France – French Guiana, Guadeloupe, Martinique, Réunion
• Greece – Anatoliki Makedonia Thraki, Dytiki Ellada, Ipeiros, Kentriki Makedonia, Thessalia
• Hungary – all (except Central Hungary)
• Italy – Basilicata, Calabria, Campania, Apulia, Sicily
• Latvia – all
• Lithuania – all
• Poland – all (except Masovian Voivodeship)
• Portugal – Alentejo, Azores, Centro, Norte
• Romania – all (except Bucharest)
• Slovakia – all (except Bratislava)
• Slovenia – Vzhodna Slovenija
• Spain – Extremadura
• United Kingdom – Cornwall and the Isles of Scilly, West Wales and the Valleys

Transition regions

These are regions whose GDP per capita falls between 75 and 90 percent of the EU average. As such, they receive less funding than the less developed regions but more funding than the more developed regions.

Areas designated as transition regions

• Austria – Burgenland
• Belgium – all of Wallonia (except Walloon Brabant)
• Denmark – Sjælland
• France – Auvergne, Corsica, Franche-Comté, Languedoc-Roussillon, Limousin, Lorraine, Lower Normandy, Nord-Pas-de-Calais, Picardy, Poitou-Charentes
• Germany – Lüneburg, all of the former East Germany sans Berlin (except Leipzig)
• Greece – Dytiki Makedonia, Ionia Nisia, Kriti, Peloponnisos, Sterea Ellada, Voreio Aigaio
• Italy – Abruzzo, Molise, Sardinia
• Malta – all
• Portugal – Algarve
• Spain – Andalucía, Canarias, Castilla-La Mancha, Melilla, Murcia
• United Kingdom – Cumbria, Devon, East Yorkshire and Northern Lincolnshire, Highlands and Islands, Lancashire, Lincolnshire, Merseyside, Northern Ireland, Shropshire and Staffordshire, South Yorkshire, Tees Valley and Durham

More developed regions

This covers all European regions that are not covered elsewhere, namely those which have a GDP per capita above 90 percent of the EU average. The main aim of funding for these regions is to create jobs by promoting competitiveness and making the regions concerned more attractive to businesses and investors. Possible projects include developing clean transport, supporting research centres, universities, small businesses and start-ups, providing training, and creating jobs. Funding is managed through either the ERDF or the ESF.

Areas currently eligible

• Austria – all (except Burgenland)
• Belgium – all of Flanders, Walloon Brabant
• Cyprus – all
• Czech Republic – Prague
• Denmark – all (except Sjælland)
• Finland – all
• France – Aquitaine, Burgundy, Brittany, Centre, Champagne-Ardenne, Île-de-France, Midi-Pyrénées, Pays de la Loire, Provence-Alpes-Côte d'Azur, Rhône-Alpes, Upper Normandy
• Germany – Berlin, Leipzig, all of the former West Germany sans Berlin (except Lüneburg)
• Greece – Attiki, Notio Aigaio
• Hungary – Közép-Magyarország
• Ireland – all
• Italy – Emilia-Romagna, Friuli-Venezia Giulia, Lazio, Liguria, Lombardy, Marche, Piedmont, South Tyrol, Trentino, Tuscany, Umbria, Valle d'Aosta, Veneto
• Luxembourg – all
• Netherlands – all
• Poland – Masovian Voivodeship
• Portugal – Lisbon region, Madeira
• Romania – Bucharest
• Slovakia – Bratislava
• Slovenia - Zahodna Slovenija
• Spain – Aragon, Asturias, Balearic Islands, Basque Country, Cantabria, Castilla y León, Catalonia, Ceuta, Galicia, La Rioja, Madrid Region, Navarre, Valencian Community
• Sweden – all
• United Kingdom – all of London, South East England, and the East of England, plus Dorset, Somerset, Gloucestershire, Wiltshire, Herefordshire, Worcestershire, Warwickshire, West Midlands, Leicestershire, Rutland, Northamptonshire, Derbyshire, Nottinghamshire, Cheshire, Greater Manchester, West Yorkshire, North Yorkshire, Tyne and Wear, Northumberland, South Western Scotland, Eastern Scotland, North Eastern Scotland and East Wales

European territorial cooperation

This objective aims to reduce the importance of borders within Europe – both between and within countries – by improving regional cooperation. It allows for three different types of cooperation: cross-border, transnational and interregional cooperation. The objective is currently by far the least important in pure financial terms, accounting for only 2.5% of the EU's regional policy budget. It is funded exclusively through the ERDF.

See also

• Structural Funds and Cohesion Funds
• Nomenclature of Territorial Units for Statistics – for how the EU defines regions
• Euroregion
• Council of European Municipalities and Regions
• European Grouping for Territorial Cooperation
• List of micro-regional organizations

External links

• Overview of EU regional policy on the European Union's website
• Official EU website for regional policy
  • Overview of regional policy objectives
  • List of regions by objective
  • Interactive map on EU regional policy across Europe
• The Council of European Municipalities and Regions