94457 - The New Member States And Cohesion Policies In The Eu

Learning outcomes

An effective common regional (or cohesion) policy is crucial to the future development of an enlarged EU. This process requires joint action to strengthen the predominance of free market forces, as well as the establishment of a support system for the regional policy managed at EU level. One of the major endeavors as well as one of the consequences of the European integration process is to reduce the differences in development between individual countries and regions and to support the less developed areas in catching up with the others. If the EU does not have a commitment to reduce the disparities in income differences and living standards, the future of the integrative process would be undermined. It would be unacceptable for citizens in differing parts of the Union to be subject to significantly different standards. Although the future resource transfer was not the only reason to become full members of the EU, this field played a very important role for the Central and Eastern European countries. The new members can use the Structural Funds as major instruments to support their modernization process. There is no doubt that it is of high importance for the historically undercapitalized countries to accelerate their modernization process, among others, also by having access to EU funds.  The course is dealing with the operation of the common regional (cohesion) policy within the European Union and focuses on the extension of the policy towards the member states from Central and Eastern Europe. We analyze the impacts of Structural Funds and Cohesion Fund supports on development of the backward regions. We evaluate the economic, legal and institutional preconditions of successful absorption of EU transfers. The course focuses on the experience of the Visegrad Countries in using these transfers in their economic and social modernization and their catching up processes. The students are expected to have learned the theoretical background of regional development policies and the rationale for an EU level intervention. They should be familiar with the regulatory background (instruments, common objectives, principles) and operation (institutional preconditions and processes, contents of development plans and operational programs) of EU level cohesion policy. They should be able to analyze and compare the experiences of less developed member states in implementing EU funded programs. They should be able to evaluate the new member states’ national development programs and their role in economic and social development. They should be able to analyze preconditions of successful absorption of EU funds in individual member states.

Course contents

Lectures:

Topic 1

Necessity of regional development policy. Theories on convergence and divergence. Regional disparities within the European Union. Factors underlying regional disparities.

Topic 2

Strengthening economic and social cohesion: gradual development of EU level intervention. Specific regional policy funds, objectives, eligibility criteria, basic principles.

Topic 3

Contents and structure of development plans. Institutional frameworks. Implementation process of EU funded programmes. The impact of EU level rules on the operation of national development policies.

Topic 4

Budgetary transfers and macroeconomic impacts. The EU level budget and its functions. Evaluation of the importance of expenditures spent on regional development. Results of macroeconomic model estimations.

Topic 5

Extension of regional policy to the new members. Evaluation of the preparation for the Eastern enlargement and the first 15 years of EU membership from the point of view of EU transfers. Concluding remarks on the importance of EU cohesion policy transfer.

Presentations:

Topics: Economic and social development and regional disparities. The role of EU transfers in catching up. Case studies on the new member states.

Readings/Bibliography

Offered reading:

Alcidi, C.: Economic Integration and Income Convergence in the EU. Intereconomics. Vol. 54 No. 1. January/February 2019, pp. 5-10.

European Commission: A new partnership for cohesion. Convergence, competitiveness, cooperation. Third Report on Economic and Social Cohesion. Luxembourg, 2004.

European Commission: Growing Regions, growing Europe. Fourth Report on Economic and Social Cohesion. Communication from the Commission. Office for Official Publications of the European Communities. May 2007. Luxembourg

European Commission: My Region, My Europe, Our Future. 7th Report on Economic, Social and Territorial Cohesion. 2017. Luxembourg

European Commission: Communication from the Commission to the European Parliament, the European Council, the European Economic and Social Committee and the Committee of the Regions: A Modern Budget for a Union that Protects, Empowers and Defends. The Multiannual Financial Framework for 2021-2027. {SWD(2018) 171 final}, COM(2018) 321 final, 2.5.2018., Brussels

Farole, T. – Rodríguez-Pose, A. – Storper, M.: Cohesion Policy in the European Union: Growth, Geography, Institutions. Jornal of Common Market Studies. Vol. 49, Issue 5, September 2011. pp. 1089-1111.

Kengyel, Á.: The EU’s regional policy. In: Palánkai, T. (ed.): Economics of European Integration. Akadémiai Kiadó. Budapest, 2003., pp. 355-375.

Kengyel, Á.: Evaluating the added value of EU level regional policy. Society and Economy. Vol. 30 (2008) No 2, December 2008. pp. 303-322.

Kengyel, Á.: The Future of EU Cohesion Policy. Endogenous Development – Added Value of Intervention – Regulatory Frameworks. EU Working Papers. 3/2011. Vol. XV. No. 3. pp. 51-74.

Kengyel, Á.: The potential role of EU cohesion policy in funding social economy projects. In: Viñals, C. R. – Rodríguez, C. P. (eds.): Social Innovation. New forms of organisation in knowledge-based societies. Routledge. London-New York, 2013, pp. 159-187.

Kengyel, Á.: The European Union and its policies. In: Palánkai, T. (ed.): Economics of Global and Regional Integration. Akadémiai Kiadó. Budapest, 2014, pp. 175-190.

Kengyel, Á.: The Importance of EU Cohesion Policy in Central and Eastern Europe. Transition Studies Review, Vol. 22. No. 1. (2015), pp. 3-20.

Kengyel, Á.: New Headings – Old Problems: The Evolution and Future of the EU Budget. Intereconomics. Vol. 51 No.2, March-April 2016, pp. 100-106.

Kengyel, Á.: The next Multiannual Financial Framework (MFF) and its duration. In-Depth Analysis requested by the BUDG committee. IP/D/BUDG/IC/2017_113. European Parliament, Directorate General for Internal Policies of the Union, Policy Department for Budgetary Affairs. October 2017, Brussels. http://www.europarl.europa.eu/RegData/etudes/IDAN/2017/603798/IPOL_IDA(2017)603798_EN.pdf

Kengyel, Á.: A Neglected Aspect of the Debates on the EU Budget: Duration of the MFF. Intereconomics. Vol. 53 No. 4, July/august 2018, pp. 225–232.

KPMG (2014): EU Funds in Central and Eastern Europe. Progress Report 2007-2013. KPMG Central and Eastern Europe Ltd. Varsaw.

Nič, M. - Świeboda, P. (eds.) (2014): Central Europe fit for the future. Visegrad Group ten years after EU accession. Report by the High Level Reflection Group. Central European Policy Institute (CEPI) - demosEUROPA Centre for European Strategy. Bratislava – Warsaw.

http://www.cepolicy.org/sites/cepolicy.org/files/attachments/central_europe_fit_for_the_future_report.pdf

Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006. Official Journal of the European Union. L 347. pp. 320-469.

Rozmahel, P. et al. (2013): Integration of Central and Eastern Euroepan Countries: Increasing EU Heterogeneity? Working Paper no 9. WWWFOREUROPE WelfareWealthWork. European Commission European Research Area Seventh Framework Programme. http://www.foreurope.eu/fileadmin/documents/pdf/Workingpapers/WWWforEurope_WPS_no009_MS77.pdf

The European Commission’s regional policy website:

http://ec.europa.eu/regional_policy/index_en.htm

Varga, J. – in’t Veld, J.: The Potential Impact of EU Cohesion Policy Spending in the 2007-2013 Programming Period: A Model-Based Analysis. European Economy. Economic Papers 422, September 2010.

Wintjes, R. - Hollanders H.: Innovation pathways and policy challenges at the regional level: smart specialization. UNU-MERIT Working Paper Series no. 2011-027, 2011

Wyplosz, Ch. (2019): Divergence? What Divergence? Intereconomics. Vol. 54 No. 1. pp. 39-41.

Zawistowski, J. et al. (2011): Evaluation of benefits to the EU-15 resulting from the implementation of the Cohesion Policy in the Visegrad Group countries. Instytut Badan Strukturalnych. Varsaw.

http://eu.kormany.hu/admin/download/0/ad/20000/benefits_EU15_cohesion.pdf

Teaching methods

Lecture, presentations, case studies and discussions.

Assessment methods

Each student should prepare a paper in 8-10 pages (including tables, figures and references) and a presentation in 15 minutes about the experience of an EU member state from Central and Eastern Europe in relation to the implementation of EU funded programmes. The main goal of the students’ individual research activities is to gain some in-depth experience through analysing individual country cases. The ppt drafts and papers should be submitted via e-mail to akos.kengyel@uni-corvinus.hu.

The country case studies (ppt draft and paper) should consist of the following parts:

• Presentation of the country’s long term economic development and present situation. Economic and social problems and regional disparities based on statistical figures (indicators) should be explained.
• The former experience with EU funding should be summarized (amounts of transfers and their sectoral distribution).
• A short description of the development strategy, basic goals and priorities of the Partnership Agreement for 2014-2020 should be explained. Contents of operational programmes should be summarized and the budgetary background (EU funding + national public and private contributions) should be explained.
• The impact of the Structural Funds on catching up should be analysed including former programming periods (based on ex-post evaluations) and expected results of intervention in the 2014-2020 programming period. Macroeconomic indicators and physical indicators should be explained (e.g. impact on GDP, employment, Europe 2020 indicators, infrastructure, SMEs, R&D activities, education, etc.).
• 3 project examples should be selected and explained (aims, implementation and results). The projects could be chosen also from earlier programming periods. The projects can show best practices of using EU funds to improve competitiveness and economic and social cohesion.

The final grade will be based on the quality of ppt presentations and the submitted papers.

Teaching tools

ppt presentations, case studies - lectures and discussions

Office hours

See the website of Akos Miklos Kengyel