Nello chapter 13 regional policy

Nello chapter 13 regional policy - Regional Policy Chapter...

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Unformatted text preview: Regional Policy Chapter 13 The European Union: economics, policies and history 1st edition Susan Senior Nello The aims of EU regional policy Concern for Europes disadvantaged regions has always been part of EU priorities In Treaty of Rome preamble; Article 2 of the EC Treaty: to promote a harmonious, balanced and sustainable development of economic activities; convergence of economic performance; economic and social cohesion and solidarity between member states. Pre-1986, most spending on regions was national Rural electrification, phones, roads, etc. Entry of Spain & Portugal created voting-bloc in Council (with Ireland and Greece) that induced a major shift in EU spending priorities, away from CAP towards poor-regions Structural spending now about 1/3 EU budget Europes Economic Geography: Facts Europe highly centralised in terms of economic activity. western Germany, Benelux nations, N.E. France and S.E. England have 1/7 th land, but 1/3 rd of pop. & GDP Periphery has lower standard of living More unemployment Especially among youth More poverty Periphery Centrality of EU25 Regions Intermediate Core Periphery Centrality of EU25 Regions Intermediate Core Geographic income inequality Very uneven income distribution, geographically 1999 income/pop by nation Luxembourg is 110% richer than average Bulgaria only 26% of average 50 100 150 200 250 Bulgaria Romania Lithuania Latvia Estonia Poland Slovakia Hungry Czechia Greece Slovenia Portugal Cyprus Spain France Italy Finland UK Sweden German Belgium Austria NL Ireland DK Lux. EU26=100 Geographic income inequality income distribution even more uneven at regional level. Within nation economic activity is very unevenly distributed Income distribution has become: More even in EU15 Less even within EU15 nations (by region) Guyane (F) Guadeloupe (F) Martinique (F) R union (F) Canarias (E) A ores (P) Madeira (P) Kypros Index, EUR-26 = 100 SIG16 SIG16 GDP per head by region (PPS), 1998 < 30 30 - 50 50 - 75 75 - 100 100 - 125 >= 125 Index, EU-25 = 100 < 30 30 - 50 50 - 75 75 - 100 100 - 125 >= 125 Index, EU-25 = 100 < 30 30 - 50 50 - 75 75 - 100 100 - 125 >= 125 Index, EU-25 = 100 Geographic income inequality French example Ile de France (Paris) has almost 1/3 of all economic activity Per capita incomes (not shown) are 158% of EU15 average Mediterranee has 10% of GDP, 12% of population GDP/pop only 86% of EU15 average Outre-Mer are former French colonies (poor islands in Caribbean, etc.) 0.00 0.05 0.10 0.15 0.20 0.25 0.30 Ile de France Bassin Parisien Nord - Pas-de-Calais Est Ouest Sud-Ouest Centre-Est Mediterranee Outre-Mer GDP share Pop share Indicators that can be used to assess...
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Nello chapter 13 regional policy - Regional Policy Chapter...

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