European funds in Central and Eastern Europe: drivers of change or mere funding transfers? Evaluating the impact of European aid on national and local development in Bulgaria and Romania

In recent years, there have been numerous academic and policy debates on the delivery mechanisms of European Union (EU) funds in member states. Studies focused on issues arising, for instance, during the management and implementation of EU aid at the local level but devoted less attention to the economic and institutional impact of EU funds. To what extent do EU funds act as drivers of socio-economic development and institutional change? Theoretically, this paper contributes to debates about economic convergence and the institutional spillover effects generated by EU aid across national and local settings. Empirically, the paper evaluates the impact of EU aid in Bulgaria and Romania after a decade of EU membership. Firstly, the paper examines a mix of quantitative indicators and secondary sources on the socio-economic impact of EU funds in the two countries. Secondly, using original qualitative evidence, the paper assesses the spillover effects of EU aid on domestic institutions and stakeholders, policies and practices. Finally, the paper provides an analysis of the unintended domestic consequences triggered by EU funds. It contributes to growing debates on the impact of European aid and suggests potential avenues for policy development and for further academic research in this area

European funds in Central and Eastern Europe: drivers of change or mere funding transfers? Evaluating the impact of European aid on national and local development in Bulgaria and Romania

In recent years, there have been numerous academic and policy debates on the delivery mechanisms of European Union (EU) funds in member states. Studies focused on issues arising, for instance, during the management and implementation of EU aid at the local level but devoted less attention to the economic and institutional impact of EU funds. To what extent do EU funds act as drivers of socio-economic development and institutional change? Theoretically, this paper contributes to debates about economic convergence and the institutional spillover effects generated by EU aid across national and local settings. Empirically, the paper evaluates the impact of EU aid in Bulgaria and Romania after a decade of EU membership. Firstly, the paper examines a mix of quantitative indicators and secondary sources on the socio-economic impact of EU funds in the two countries. Secondly, using original qualitative evidence, the paper assesses the spillover effects of EU aid on domestic institutions and stakeholders, policies and practices. Finally, the paper provides an analysis of the unintended domestic consequences triggered by EU funds. It contributes to growing debates on the impact of European aid and suggests potential avenues for policy development and for further academic research in this area

One decade onwards: assessing the impact of European Union membership on Bulgaria and Romania

The main aim of this Special Issue is to critically analyse the impact of the EU on Bulgaria and Romania, during their first decade as members of the European community, in several poignant areas of membership. The rationale for this endeavour is twofold. On the one hand, very few studies have looked in depth at the post-enlargement experience of the two countries and how the EU factor has played out and influenced various domestic policies and issues, ranging from national policies to the rule of law. On the other hand, there is little knowledge regarding the way the two countries experience EU membership or deal with their counterparts in Brussels

One decade onwards: assessing the impact of European Union membership on Bulgaria and Romania

The main aim of this Special Issue is to critically analyse the impact of the EU on Bulgaria and Romania, during their first decade as members of the European community, in several poignant areas of membership. The rationale for this endeavour is twofold. On the one hand, very few studies have looked in depth at the post-enlargement experience of the two countries and how the EU factor has played out and influenced various domestic policies and issues, ranging from national policies to the rule of law. On the other hand, there is little knowledge regarding the way the two countries experience EU membership or deal with their counterparts in Brussels

Evaluating the Determinants of EU Funds Absorption across Old and New Member States – the Role of Administrative Capacity and Political Governance

This article assesses the impact of administrative capacity and political governance factors on the absorption of structural and cohesion funds (SCF). We drew on EU-27 country level data and developed a dynamic panel data model for the 2007–15 implementation period. By using a tobit estimation technique, the results indicated that government effectiveness and public diversion of funds significantly affect the recipient countries ability to absorb EU funds. The results revealed that increasing government effectiveness and combating corruption had significant stronger boosting effects on the absorption of SCF, especially in the new member states (NMS). This might explain why bottlenecks of administrative capacity and political governance are highly relevant for NMS and why these countries generally faced lower absorption rates, as compared to EU-15. Moreover, the results also underlined that the recent great recession reduced the ability of countries to absorb SCF. Against our expectations, domestic financial capacity and political decentralization were not shown to be decisive for EU funds absorption. In policy terms, our study suggests a focus on administrative capacity-building and fighting corruption in NMS and across lagging regions of older member states in order to improve absorption rates, while also focusing more on the efficiency and effectiveness of European cohesion policy. Finally, several suggestions are made on how our analysis can be replicated and taken forward by analysts of the European Union's internal development cohesion policy

Evaluating the Determinants of EU Funds Absorption across Old and New Member States – the Role of Administrative Capacity and Political Governance

This article assesses the impact of administrative capacity and political governance factors on the absorption of structural and cohesion funds (SCF). We drew on EU-27 country level data and developed a dynamic panel data model for the 2007–15 implementation period. By using a tobit estimation technique, the results indicated that government effectiveness and public diversion of funds significantly affect the recipient countries ability to absorb EU funds. The results revealed that increasing government effectiveness and combating corruption had significant stronger boosting effects on the absorption of SCF, especially in the new member states (NMS). This might explain why bottlenecks of administrative capacity and political governance are highly relevant for NMS and why these countries generally faced lower absorption rates, as compared to EU-15. Moreover, the results also underlined that the recent great recession reduced the ability of countries to absorb SCF. Against our expectations, domestic financial capacity and political decentralization were not shown to be decisive for EU funds absorption. In policy terms, our study suggests a focus on administrative capacity-building and fighting corruption in NMS and across lagging regions of older member states in order to improve absorption rates, while also focusing more on the efficiency and effectiveness of European cohesion policy. Finally, several suggestions are made on how our analysis can be replicated and taken forward by analysts of the European Union's internal development cohesion policy

Revisiting the role of domestic politics: politicisation and European Cohesion Policy performance in Central and Eastern Europe

This article evaluates the influence of domestic political factors on the performance of Cohesion Policy (CP) in new member states. It argues that domestic levels of politicisation, within Central and Eastern European countries (CEECs) can mediate the outcome-driven performance of the policy. Empirically this is probed against original empirical evidence from two cases studies: Bulgaria and Romania. Evidence was found to suggest that politicisation can affect the management and implementation of EU funds delivery. More specifically, political patronage damaged managerial continuity and the development of expertise in the specialised institutions managing CP. In addition, political clientelism was associated with some of the problems found in the selection of EU funded projects and, more pre-eminently, with regard to the allocation of public procurement contracts. The article discusses the wider theoretical implications of its findings and the impact of politicisation on the implementation of EU policies in CEECs