Session 5 Flashcards
What are the 4 European Cohesion Funds
- ERDF
- ESF
- Cohesion Fund
- Just Transition Fund
What is the ERDF
It aims at correcting imbalances between regions. It covers all EU, but allocations var across regions, depending on 3 categories:
- less developed
- transition region
- more developed regions
What is ESF?
Focus on employment and combating poverty, regional eligibility based on 3 categories from less developed to transition region
What is the Cohesion Fund?
It aims at reducing economic and social disparities to promote sustainable development. It is reserved
What is the Transition Fund?
It helps alleviate the socio economic costs triggered by climate transition, supporting the economic diversification and reconversion of the territories concerned
What are the key principles of European structural regional policies?
- concentration : assistance focused on limited number of objectives
- programming : supports programmes not individual projects
- partnership : commission, member states and authorities
- additionality : added to MS expenditure not substituted
- macroeconomic conditionality: need to take effective action if in excessive deficit procedure etc to avoid suspension of these programmes
Define new economic geography
Economic activity tends to concentrate spatially. It creates losers and winners.
What are the two processes behind economic geography?
- Agglomeration : lead industry to cluster geographically
- Dispersion: tend to encourage industry to disperse geographically
Give examples of dispersion forces
Rent, wages, cost, strong competition, shipping and trade costs
Give examples of agglomeration forces
Economies of scale, labour market, infrastructure, larger demand
What portion of the EU budget do cohesion funds represent?
30% as opposed to 5% before
