A Parallel on the Results of Cohesion Policy in Stimulating the Regional Economic Growth in EU

Abstract

This paper provides a relevant and balanced analysis of sustainable regional development, taking into consideration the reduction of disparities in economic development between regions and the evolution of the cohesion strategy. The first part of the essay converges on meeting the purposes of diminishing economic and social discrepancies, by promoting cohesion policy, which aims to increase economic growth. The main instruments and mechanisms underlying the implementation of the cohesion policy are mainly the reallocation of chunk of the Community budget attained through the subsidy of the Member States to disadvantaged regions, advising solutions such as: lowering the inflation rate, reducing unemployment, increasing per capita income, creating new jobs, liberalizing the movement of goods and services markets. I started from some ideas, which would allow the achievement of the objectives of stimulating the economic growth on the existing situation, but also a simulation for the next period, considering that the following factors suggested by me will bring an extra performance in the economic analysis. These factors aim to support investment in innovation or renewable sources, and physical capital, technical progress, human and public capital have a positive impact on the development of all regions, thus contributing to a more competitive and balanced Union.

Keywords

• regional development
• cohesion
• convergence
• divergence
• disparities