The Micro-efficiency of EU Cohesion Policy

Cohesion policy micro-efficiency is determined by the institutional or absorption capacity of recipient regions and Member States. This, in turn, co-determines the policy's macro-economic impact. The analysis shows that Cohesion policy is not perceived as an "EU receipts maximising instrument", but instead that it is understood as a means to the set objectives, i.e. that it is about the genuine impact. At the same time, however, the analysis also shows that proper change to implementation systems is needed. The paper puts forward four proposals for improvements. The most radical of them, the 'coordinated full decentralisation' option, conceives Cohesion policy as a bulk transfer of investment-conditioned financial resources, where full responsibility for the legality, regularity, efficiency and effectiveness would be entirely transferred to the Member States/regional level while, at the same time, preserving Cohesion policy as a genuine European policy. The analysis reveals that the subsidiarity principle is still not taken into account to a satisfactory degree, that experience and political context have significant influence on the (optimal) design of implementation systems and finally that, on average, there seems to be merit in concentration both with regard to the number of operational programmes (less so for their thematic focus) as well as to the number of institutions involved in the implementation systems, horizontally and especially vertically

Quo Vadis, Slovenia? Between Framework Conditions and Internal Capabilities

We consider the new EU member states as semi-peripheral countries standing at the development crossroads. We emphasize the sociocultural factors of development, present a model for bringing together several cultural and social influences, and test its validity by applying a fuzzy-set methodology, a rather novel approach in social sciences. We augment our analysis of internal socio-cultural factors by considering the likely changes in the external framework conditions. Focusing on demography, technology, and global economic and political structures, we outline possible scenarios for European development that will certainly affect the chances of individual countries. As our contribution, we discuss the interplay between such framework conditions and internal development capabilities and draw some implication for the case of Slovenia.development, socio-cultural factors of development, long-run scenarios

The Effectiveness of EU Cohesion Policy Revisited : are EU Funds Really Additional?

Is Cohesion policy effective? Does it contribute to the reduction of development disparities and strengthen competitiveness in the EU? These are the questions that have inspired a growing body of research on Cohesion policy evaluation, which has come to varied and inconclusive results. There has been significant variation with regards to the established (in) effectiveness of Cohesion policy among different methodological approaches. Ideally, the econometric tests would be able to provide conclusive results, which would represent the most convincing empirical proof. Unfortunately, the nature of Cohesion policy itself is posing serious limitations to the econometric approach, which has usually been limited to the direct testing of the macroeconomic impact of the resources. In order to circumvent these shortcomings, the authors have continued to rely on the econometric methods, but have nevertheless proved the benefits of using an indirect estimation approach. They have confirmed that Cohesion policy effectively increases the structural expenditures of the recipient Member States, thereby fulfilling one of the necessary conditions for effectiveness of EU transfers. Overall, effectiveness still depends on other conditions, among which the micro-efficiency of funds' management and their effect on private investment stand out in particular

Towards Cohesion Policy 4.0 : Structural Transformation and Inclusive Growth

In the context of the debate on the future of Europe, this book makes the case for a new approach to structural transformation, growth and cohesion in the EU. It explores both the opportunities and challenges from globalisation and technological change, the widening differences in productivity between leading and lagging regions, and the need for a new policy framework capable of delivering inclusive growt