THE SIGNIFICANCE OF THE EUROPEAN FUNDING PROGRAMS FOR THE REGION OF THE PELOPONNESE

Abstract

Many national economies rely on the manufacturing industry to improve their productive and their public finance. Moreover, manufacturing companies employ too many human capital, which plays vital role for the sector and the local communities as well. Many studies show that the manufacturing industry is a sector with significant cyclical behaviour. The region of the Peloponnese in Greece received adequate funding during the last years from different European programs. The result was to boost productivity of some sectors in the region, especially the manufacturing, while the infrastructure was improved and new technologies were adapted. The aim of this paper is to provide a thorough analysis of the manufacturing sector in Greece and especially the Peloponnese, and to research the contribution of European funding. Although Greece’ s manufacturing industry has a smaller share in the economy, comparing to the overall european level, it still has a great significance. Especially for the local communities, which find employment in the industry or even boost their public finance via indirect taxes. The significance of the region makes it very attractive for investments in this field. Results showed that not only did the percentage of the manufacturing sector in the Peloponnese increase, but also businesses in the region found significant funding in a turbulent period. The contribution of the European programs is very important, as companies in the region found important funding, when Greece’s public spending was being decrease as part of the public finance collapse. Moreover, they contributed in the increase of the exports, which was also a very important aspect and overall target of the European programs as a whole. The industry was totally modernised, as companies had increased their investments in crucial infrastructure, human expertise and lands to expand their business activities as well. Furthermore, the adoption of the latest technologies, artificial intelligence, big data and new high speed technological infrastructure modernised the manufacturing industry as a whole in the region of the Peloponnese. It was very crucial as many years of underinvestment and cutting in spendings and decrease in public support had left the manufacturing industry at a very immature level. Today, companies are more competitive, they reach the European levels of investments and expenditure, as well as increase their exports to neighbouring countries firstly, and then to other continents of the world as well. On this level, manufacturing industry in the Peloponnese dos reach European standards. Keywords: Peloponnese, European Programs, manufacturing sector JEL: L67