European Union Regional Policy: Sleepwalking to a Crisis

Abstract

The European Union has developed a sophisticated and quite well-funded regional policy administered through its various structural funds. This policy now faces a number of severe challenges. Market forces are bringing about convergence at a snail's pace. With the regional impacts of the single market and monetary union ahead, and with the threat of enlargement to the east looming, reform is an urgent priority. Unfortunately, the existing policy structure is inadequate for the challenges ahead. This paper considers the weaknesses of the current policy and urges a radical shake-up.