EU Regional Policies

Question 1

Facts and figures about Europes region’s GDP and incomes

Answer 1

• dispersion of income levels across nations is still very high, between MS the gaps are decreasing
• inequality across regions within each EU nation has been rising steadily

Question 2

Why are there differences in regional developments?

Answer 2

Theory 1: comparative advantages

Theory 2: new economic geography

• > dispersion forces favour the geographic dispersion of economic activity
• > agglomeration forces encourage spatial concentration (demand linkages, cost linkages)

Theory 3: Mobility of capital and labour, regional unemployment, peripherality and real geography

Question 3

Proposed EU Regional Policy Reforms 2021-2027

Answer 3

• helping firms innovate, supporting SMEs, advancing digital technologies, fostering industrial modernisation
• enhance the speed of shifts towards a low-carbon economy and the fight against climate change