European Cohesion Policy
European Cohesion Policy. European cohesion policy is less successful than it could be. Cohesion policy aims at reducing differences in GDP per capita between regions within the European Union. Billions of euro are spent on regional projects that, among other things, improve infrastructure and modernise education. Simulations with large macroeconomic models show that these projects could accelerate economic growth substantially. Analyses of the actual growth record of recipient regions reveal, however, that this potential materialises only to a limited extent. For some of the poorest regions in Europe this means they miss out on half a percentage point of annual economic growth. Sjef Ederveen, Joeri Gorter, Ruud de Mooij and Richard Nahuis of CPB Netherlands Bureau for Economic Policy Analysis reach this conclusion in their study "Funds and games: the economics of European cohesion policy"