Regional economic development policy in Europe: Where next?

Abstract

The recent financial crisis has raised important questions about the future of regional economic development policy in Europe. Budget cuts at a time when economic growth is a priority indicates some lack of confidence by governments in the effectiveness of economic development. Deflationary policies to defend the euro in poorer Member States of the European Union are sharply increasing divergence between economies, with the long-standing economic development imperative of convergence taking a back seat. Migration from poorer to richer countries is likely to increase as a result. Yet EU governments individually and collectively show every sign of wishing to continue to be seen to be doing economic development, even with reduced resources. Thechallenge for economic developers and policy makers is to devise programmes which are not blown off course by sudden changes at the macro level, can demonstrate their value at the regional and national level, and can attract sufficient political support to be sustained for the long term. This article suggests some ways forward.