Application of Regionally Varying Additionality Degrees in the Practice of EU Cohesion Policy

The additionality principle says that the funds of the European Union should not replace, but be an addition to national regional policy funds. The benchmark for the co-funding is that the EU bears 50% of total costs associated with regional projects eligible for EU support. In some regions, however, the EU contribution has reached 85% of total costs. This study examines how such additionality degrees are determined. Our findings indicate that the regional variation of additionality degrees is largely in line with EU cohesion policy goals. Most notably, higher shares of EU funds are provided to regions with lower GDP per capita. Furthermore, while the share of service-sector employees in a region is negatively related to the additionality degree, the impact of the rate of long-term unemployment is positive.additionality, cohesion policy, EU regions, matching grant, growth and distribution

Alkalinization during re-oxygenation prevents functional damage by hyperglycaemic hypoxia

HYPERGLYCAEMIA impairs recovery from transient cerebral ischaemia: the importance of tissue acidification for this phenomenon has not been clarified in detail. We investigated this issue in a less complex in vitro preparation of isolated rat dorsal spinal roots exposed for 30 min to hyperglycaemic hypoxia. Peak height of compound action potentials recovered minimally in 5 mM bicarbonate. However, recovery was greatly improved by addition of the weak base trimethylamine during re-oxygenation. Addition of the weak acid propionate had no such effect. Cytoplasmic alkalinization improved recovery in a brief time window only: application of trimethylamine after 15 min of re-oxygenation was without beneficial effect. These data emphasize the importance of cytoplasmic acidification for neurophysiological recovery from hyper-glycaemic hypoxia during the initial period of re-oxygenation

Lisbon Agenda, Regional Innovation System and the New EU Cohesion Policy

The EU’s cohesion policy should now be confluent with the goals of the Lisbon strategy by promoting growth and employment. In this context, the promotion of a concept called regional innovation system has recently become important in the EU for guaranteeing long-term regional economic growth. This paper attempts to explain the determinants of the varying degrees of innovation promotion by the EU from one region to another. Since regional-policy strategies should have been subject to a new orientation towards more innovation promotion, we are particularly interested in whether the EU’s co-financing policy of innovation projects changed for the 2007-2013 program period compared with the 2000-2006 period. According to our empirical analysis, which controls for various determinants of innovation promotion, there has been no significant change in the EU’s regional policy strategy in general. We confirm this result when focusing on less-developed Objective 1 regions, where we would have expected the new policy strategy to show up more pronounced in particular.Lisbon Agenda, regional innovation network, EU cohesion policy

Taxation and Capital Structure Choice – Evidence from a Panel of German Multinationals

This paper analyzes the impact of taxes and lending conditions on the financial structure of multinationals' foreign affiliates. The empirical analysis employs a large panel of affiliates of German multinationals in 26 countries in the period from 1996 until 2003. In accordance with the theoretical predictions, the effect of local taxes on leverage is positive for both types of debt. Moreover, while adverse local credit market conditions are found to reduce external borrowing, internal debt is increasing, supporting the view that the two channels of debt finance are substitutes.corporate income tax, multinationals, capital structure, firm-level data