Table of Contents

Economic Convergence and Divergence in Europe

Economic Convergence and Divergence in Europe

Growth and Regional Development in an Enlarged European Union

Edited by Gertrude Tumpel-Gugerell and Peter Mooslechner

This highly topical book addresses the challenge of economic convergence within Europe, beginning with a thorough review of the theory of growth and related empirical research. Historical and more recent economic developments within the present EU and current accession countries are discussed, along with the design for the process of further integration of accession countries into the EU and the Euro area. Moreover, the potential to achieve a sustainable catch-up process in Western Balkan countries, the Ukraine and Russia is explored, focusing on the task facing the EU in designing proper policies vis-à-vis these countries. The contributors’ varied perspectives ensure that the theories and policies postulated are linked closely with the actual situation in accession countries and offer up-to-date insights.

Chapter 24: Economic and social cohesion in an enlarged European Union

Vasco Cal

Subjects: economics and finance, regional economics, urban and regional studies, regional economics

Extract

Vasco Cal The second report on economic and social cohesion, which was adopted by the European Commission on 31 January 2001, marks the beginning of the debate on the cohesion policy after 2006. The first report, which was adopted in 1996, gave rise to the Agenda 2000 proposals and the Berlin summit decisions on the financial perspective for 2000–2006. In the second report, the Commission analyses the situation and regional disparities in a Europe of 27 member states, and the contribution of Community policies – among them the structural policies – to cohesion. The main conclusions of the report are as follows: 1. Compared with the present situation, regional disparities will more than double in an enlarged European Union: ● ● almost the entire population of 105 million people in the applicant countries will be living in regions with a per capita GDP of less than 75 per cent of a Community average that will itself be more than 18 per cent down on the present level; the standard of living in the least-developed regions of the enlarged European Union will be equivalent to about 31 per cent of the Community average, compared with 61 per cent at present. 2. There will be three groups of member states in the enlarged European Union: ● ● a group comprising the majority of the current applicant countries, which will have a per capita GDP (expressed in PPP) of 40 per cent of the Community average; a group made up of the majority of the current member states,...

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