Cohesion policy
Introduction
The regional policy of the European Union, also called cohesion policy, is the main regional and social investment policy and aims to reduce the socioeconomic and territorial disparities that exist between the regions of the Union.[1] This policy covers all European regions, although these regions belong to different categories, depending mainly on their economic situation.
More than a third of the EU budget is dedicated to this policy, which seeks to eliminate economic, social and territorial disparities within the EU, restructure areas with industrial decline "Deindustrialization (economy)") and diversify rural areas that have declining agriculture.[7] In doing this, EU regional policy is aimed at making regions more competitive, encouraging economic growth and job creation. Politics also plays a role in broader goals for the future, including climate change, energy supply and globalization.
The most important enlargement of the EU took place in May 2004 with ten new Member States, mostly from Central or Eastern Europe, followed by the accession of Bulgaria and Romania in January 2007. Most of these countries were poorer at the time than the previous members and this meant a reduction in the average per capita income of the EU, which meant that some regions of the former EU-15 were no longer eligible for Community financial aid, since the majority The regions of the new Member States meet the requirements to receive such funds.[8].
These investments eventually contribute to achieving the smart, sustainable and inclusive growth objectives of the European Green Deal.[9].
History
Objectives 2007-2013
By far the majority of regional policy funds (more than 80%) are dedicated to the regions included in the Convergence objective. This target covers the poorest regions in Europe whose GDP per capita is less than 75% of the EU average. This includes all regions of the new Member States, most of Southern Italy, East Germany, Greece and Portugal, much of Spain, and some parts of the United Kingdom.
With the enlargement of new Member States in 2004 and 2007, the average GDP per capita has decreased. As a result, some former EU 15 regions, which used to receive funding under the Convergence target, are now above the 75% threshold. These regions now receive transitional "phasing out" support until 2013, when it will be phased out completely. The regions that received funds through the Convergence criterion and that are now above the 75% threshold are receiving increasing funds through the Regional Competitiveness and Employment objective.[10].