Abstract
The strong focus of the evaluation literature of EU Cohesion Policy on economic growth raises the question of whether EU funding has an impact on public investment, to which a major part of total EU aid is allocated (European Commission, 2004a). According to the principle of additionality, EU-funded projects must not crowd out investment spending elsewhere (European Commission, 2007a). Thus, the EU Commission aims to ensure that Cohesion Policy payments do not replace domestically-financed public or structural expenditure.
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