Reform of the structural funds: Central and East European perspectives

Abstract

Eastward enlargement poses an unprecedented challenge to EU policies for economic convergence. On the existing criteria for distribution of the structural funds, new central and east European members would qualify for sums that are politically unacceptable to the current EU‐15. Yet the policy objectives of the structural funds are highly relevant to CEE, given the regional inequalities in income and employment both within and between the applicant states, and the prospect that catch‐up with average EU income levels could take many years after accession. In ‘Agenda 2000’, the Commission proposed a neat compromise between the competing interests of net contributors, current recipients and CEE needs, but one which sacrifices the principles of solidarity and cohesion. Gaps between the applicants could widen as the front‐runners become eligible for much higher levels of EU funding than those left outside.