Externalities of Cohesion Policy

Client/Funding Institution

European Parliament

Abstract

The study investigates the effects of Cohesion Policy (CP) which occur in a country other than the one in which CP resources were actually spent. The study estimates that macroeconomic spillovers significantly contribute to the impact of CP. Spillovers directed to EU countries represent around 9% of the total annual CP expenditure. Other spillovers to non-EU countries are around 8% of the CP expenditure. Macro and micro spillovers together arrive at 21% of the annual CP expenditure, 67% of which is distributed among EU countries. Around 20% of the CP expenditure can trigger sectoral spillover effects in the environment, transport and higher education sectors. The analysis demonstrates that externalities reinforce EU growth and competitiveness without CP deserting its convergence objective.

Duration

January 2018 - October 2018

wiiw team Leader

Roman Römisch

wiiw Staff

Mario Holzner, Leon Podkaminer

Project Partners

Ismeri Europa S.r.l.

External Publications

Externalities of Cohesion Policy

Keywords: Cohesion Policy, European Parliament, spillovers, expenditure, externalities, growth, EU

Countries covered: Austria, Bulgaria, Cyprus, Czechia, Estonia, France, Germany, Great Britain, Greece, Hungary, Italy, Latvia, Lithuania, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain

Research Areas: Regional Development


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