The New Europe

Regional Policy

 

Twin processes:  Europeanization and Regionalization

ÒdevolutionÓ

 

subsidiarity

 

A Europe of Regions

 

The Regions

Vary in size/population, power, political salience; decided by the nation states

E.g. Germany – they are co-terminous with the Lander

In Italy and Spain - with regional governments

In Poland, France – invented as vehicle for participating in EU policies

Representing ÒregionalÓ interests at the EU and administering/overseeing the expenditure of EU regional funds

 

Funds (see Box 18.3)

European Regional Development Fund (1975)  (given treaty basis in SEA 1986)

    Created after accession of UK, Italy, Austria

    Infrastructural Improvement, job creation, local development, aid to small business

    Restructuring the economy

 

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European Social Fund

    Re-training of workforce, worker recruitment

 

European Agricultural Guidance and Guarantee Fund

    Rural development, aid for farmers in lagging regions

   

 European Cohesion Fund (1993)

    For the poorest member states (GNP per capital <90% of EU average)

    For finance of major projects in environment and transport

 

EU Budget 2012

 

Resources in the EU

   Sources of Revenue

 

    Percentages in 2011

    Ò4th resourceÓ a % of each countryÕs GDP 75%

    Òown resourcesÓ from tariffs, etc. 13%

    VAT taxes (base capped at 50% of GNI for poorer countries) 11%

    other – 5%