EU Regional Policy Research Articles

Regions and the European Union in times of crisis: A decline of the regional interest?

Abstract The article examines the evolving role of regions in the EU integration process, particularly in light of recent crises, such as the euro and COVID-19 crises. Historically, EU regional studies have emphasized the importance of regions in EU identity and integration, highlighting their role in regional and cohesion policies as key to a multilevel governance system. However, the euro crisis marked a significant shift, as the European Union’s response—focusing on fiscal discipline—curtailed regions’ budgetary autonomy, especially in Southern Europe. In contrast, the COVID-19 crisis prompted a different approach, with the EU relaxing fiscal controls and increasing public expenditure through initiatives like the Recovery Plan for Europe. Despite these measures, the article argues that state interests continue to dominate, sidelining regional voices in the new institutional structures. The article focuses on two critical aspects: the formal participation of regions in EU governance, particularly in the Economic and Monetary Union and the new pandemic-related frameworks, and the impact of these crises on EU regional policy. The findings suggest a decline in regional influence both in institutional participation and in regional policy resources, marking a regression from pre-crisis trends. While the article does not cover a broader multipolicy analysis or the national-level role of regions, it indicates that the post-crisis era has been challenging for regions in maintaining their relevance and influence within the EU framework. The article thus contributes to the discourse on whether the European Union’s interest in regions has diminished, signaling a potential shift in the balance of power within the EU integration process.

Impact of the European Green Deal Strategy on the Evolution of EU Regional Policy after 2021

Impact of the European Green Deal Strategy on the Evolution of EU Regional Policy after 2021

Regional innovation policies and directionality: exploring the role of conditionality*

ABSTRACT The paper investigates the use of conditionality to achieve directionality within transformative innovation policies. To date, research in this area has been very limited in spite of the increasing adoption of the instrument of conditionality to advance societal goals, such as in the context of the new US industrial policy. The paper contributes to filling this gap by taking the specific perspective of regional policies which offer for different reasons a vantage point to analyse the mechanism. We first conceptualize the main benefits and limitations arising from the use of conditionalities with a directional purpose. We then analyse the concrete application of this specific form of conditionality in four case studies from EU and domestic regional policy comprising both policy conditionalities (S3) and grant conditionalities (regional or national funding schemes). The case studies suggest that the instrument of conditionality requires a high degree of flexibility to be effective in transformative innovation policies.

Administrative traditions and the role of conditionality for governance reforms: evidence from the EU regional innovation policy

This study examines how governments from different administrative traditions reformed their innovation policy governance following the adoption of the Smart Specialisation approach of EU cohesion policy for the 2014–2020 funding period. Based on four case studies, it argues that different administrative settings played a role in the uptake of intended governance reforms and that thematic ex ante conditionalities were not sufficient to guarantee substantial change in the absence of continuing political and bureaucratic support. The analysis supports the idea that governments and administrations which were already better aligned with the Smart Specialisation logic may have had limited incentive to update their governance structures, while those less aligned with it appeared sincerely motivated to overhaul existing arrangements, yet without proving capable of sustaining the desired changes.

Exploring the role of research and innovation institutions in regional digital development: The experience of Lazio Region

Developing a strong and vibrant economic base is one of the European Union priorities for 2019-2024. According to European policymakers, research and innovation activities have a direct impact on the level of prosperity and well-being of European society. EU regional policy is among other issues concentrated on the support of the development of SMEs and strengthening regional research and innovation activities. EU Smart specialisation strategy (S3) prioritizes research and innovation investment as a tool for the development of the European regions. Italy is an industrial country; its manufacturing companies represent the engine of economic growth and development, with their ability to produce wealth and job opportunities. Starting from the structure of the Italian economy characterized by widespread entrepreneurship, creating a favorable environment for businesses therefore responds to a specific public interest. For this reason, industrial policy is back at the core of the government's agenda. Knowing how to take up this challenge, however, not only concerns the government, but mainly entrepreneurs, to whom the new development and digitalization plans are providing agile and flexible tools to grow, innovate and acquire competitiveness. The development of collaborations between research and development institutions and SMEs is one of the measures to achieve these goals. By concentrating on the representative Lazio Region case, this study seeks to understand the contribution of the joint work of these platforms to the regional development and local entrepreneurial competitiveness through an in-depth analysis of strengths, weaknesses, threats and opportunities of the ongoing smart specialization and digital transformation strategies.

RESEARCH OF KEY INDICATORS OF THE STATE OF ECONOMIC SECURITY OF THE EUROPEAN UNION COUNTRIES IN THE FRAMEWORK OF THE CONCEPT OF SUSTAINABLE DEVELOPMENT

Summary. The article examines the basic priorities of the EU economic security strategy. The key indicators of the economic security of the European Union countries are analyzed. The sectoral structure of value added in the EU countries is revealed. The peculiarities of implementing the strategy of strengthening the EU economic security are investigated. The countries of the European Union are one of the most attractive investment destinations for international companies due to their open economy and secure cross-border cooperation in research and innovation. These elements will remain key drivers of European competitiveness and sustainability. Partners around the world benefit from access to European markets, capital and technology for the transition to a clean and sustainable economy. The EU's regional policy, aimed at ensuring collective economic security, in particular by strengthening economic cohesion through assistance to the least developed regions and sectors of the EU member states, is an important element of the EU's structural policy, and along with institutional adaptation and economic integration, is considered one of the main means of influencing public welfare. However, the EU's regional policy is also not without contradictions in the distribution of funding between countries, in particular, there is a discrepancy in the receipt of funds for regional development by the new members of this association and the amount of their contributions to the common budget. Keywords: economic security strategy, global economy, European Union countries, international companies, sustainable development, investment projects, financial and economic crisis, European markets, innovation, competitiveness, cross-border cooperation.

TERRITORY, NETWORKING AND REGIONAL POLICIES: REGIONAL DEVELOPMENT AGENCIES OF THE POST-TRANSITION EU MEMBER STATES

RDAs - regional development agencies have a long development path in Europe since the early 1960s until today. RDAs are directed to the regions of the countries that implement it, but it also applies to the national level as well as to the level of the EU (which comes to the fore with the country's accession to full membership). In addition to the significant differences in the level of development of the regions of the EU Member States, there are also significant differences in the development of the regions of 11 post-transition EU Member States (Bulgaria, Romania, Czech Republic, Slovakia, Hungary, Poland, Slovenia, Estonia, Latvia, Lithuania and Croatia). Because they all belonged to the former "socialist bloc of countries" and broke their state alliances with the former states in the early 1990s, as well as because they did not have the same historical circumstances or the same timing for joining the EU, all this had and still has an important role on the uneven development of their regions. But, RDAs do not play the same role and importance in all post-transition countries, which reflects the specificity of their regional development management systems and makes it necessary to examine the role and importance of RDAs' work. This paper will analyze: 1) the role and development of RDAs in post-transition EU member states, and 2) the institutional framework of RDAs with an attempt to find innovative transformations of the role of RDAs that respect the framework of EU regional policies.

FINANCIAL AND MATERIAL EFFECTS OF SME INVESTMENTS UNDER OPERATIONAL PROGRAMS IN 2014–2020 IN POLAND

Aim: The importance of SMEs for the Polish economy, their financial condition, and the rules of allocating EU funds to beneficiaries raise the question of the effects of SMEs’ participation in the EU regional policy support. As the matter has not been investigated from the financial perspective of 2014–2020 so far, the study aims to fill this gap. Method: The database included 5679 investments carried out by SMEs located in Mazovian Voivodeship, Poland. The qualitative data included inter alia, information on the main beneficiary type, the exact location and title of the project, the name of the operational program, and its priority and action. Quantitative data included the total value of the investment as well as the value of qualified costs and EU funding. Standard qualitative data analysis (QDA) was applied to analyze the textual information of the entries, while descriptive statistics and comparative analysis were used to make conclusions based on the quantitative data. Results: SMEs in Mazovian Voivodeship (Poland) were very active beneficiaries of operational programs in 2014–2020, which is confirmed by the main financial and quantitative effects of their investment activity. As of March 31, 2023, the total value generated in projects by micro, small, and medium-sized enterprises equaled 10.5 billion PLN. The SMEs’ investments covered a wide range of topics, supporting both the development of enterprises themselves and, at the same time, the social, eco­nomic, and environmental development at the local and regional levels. However, some of the actions under operational programs supported this sector during COVID-19 to enable its survival and further functioning. Conclusions: All three subcategories of SMEs, i.e., micro, small, and medium-sized enterprises in Mazovian Voivodeship, benefitted from the EU support, carrying out projects of different values, scopes and thematic profiles, irrespective of their legal form.

POST-WAR RECOVERY OF UKRAINE: REFORMS AND PUBLIC POLICY INITIATIVES

The article analyses the main directions of formation of the State policy on post-war re­construction of Ukraine, which consists in timely implementation of reforms and creation of conditions for their effective implementation. The author analyses the proposals for priority reforms and strategic initiatives reflected in the action plan for post-war recovery and develop­ment of Ukraine. It is established that the Recovery Plan in the field of European integration and public administration reform are cross-cutting, as they serve as the foundation and contrib­ute to the further promotion and implementation of all reforms in the country. It is established that among the problems that arise today within the framework of the European integration process are the following: policy development system - the lack of a legal framework that would regulate the entire process of policy analysis and development, and a prescribed strategy for its development. It is determined that the main aspects of public admin­istration reform should be the creation of a modern model of public authority to help ensure state security and law and order, territorial development in accordance with the principles of EU regional policy and the development of sectoral management mechanisms in accordance with the European principle of freedom, management of public affairs and provision of pub­lic services. It is noted that in order to implement the anti-corruption policy, it is appropriate not only to strengthen the regulatory and legal component, but also to involve civil society institutions in combating corruption, since they are mediated by the purpose of mediation be­tween the population and the State. Among the functions that civil society should perform in anti-corruption activities are: control of access to information, its truthfulness and openness, protection of the rights of certain social groups, and active interference in the activities of state bodies to stop corruption.

REGIONAL POLICY AS A COMPONENT OF INFORMATION AND COMMUNICATION INTERACTION OF LOCAL SELF-GOVERNMENT BODIES WITH THE PUBLIC: THE EXPERIENCE OF EU COUNTRIES

The article analyzes the features of EU regional policy, especially in relation to the phenomenon of Euroregions, which is unique for the European Union. Structures, processes, functions, and relationships of information and communication interaction of self-government bodies with the public, based on participation paradigm and ecosystems capabilities are outlined. Conceptually, regional development is presented as a process of resolving local and regional problems and contradictions based on communication and interaction between participants and stakeholders. A number of cases of the EU countries’ good practice regarding the formation and implementation of regional policy within the framework of Cohesion Policy are considered.

Border Effects on firm's productivity: The role of peripherality and territorial capital

AbstractBorder effects have long been studied and are a central element of EU regional policies. While most literature takes a macroeconomic approach, this paper adopts a microeconomic one, studying the impact on firm productivity in border areas. The empirical analysis, on Italian land borders, employs a novel two‐phases double‐matching design, which considers firm‐level characteristics as well as the territorial capital of municipalities where they locate. Results suggest that border effects are not limited to territories close to the border but affect larger areas. Furthermore, they are significant and negative in urban areas, while they are insignificant in peripheral areas which are characterized by low accessibility and territorial capital endowment.

Convergence and economic integration of CEECs through EU regional policy system

In order to assess the effectiveness of individual management systems in the analysed EU countries (Croatia, Poland, Slovakia, Latvia, Lithuania, Estonia, Malta, Cyprus, Slovenia, Hungary), an econometric analysis of the interdependence between the quality of the institutional and regulatory framework and the absorption of EU funds and economic growth was conducted. Conceptually, the econometric analysis aims to identify two levels of interdependence between institutional and regulatory variables on the one hand and dependent variables on the other: (1) the effect of the quality of the institutional and regulatory environment on the absorption of EU funds; (2) the effect of the quality of the institutional and regulatory environment on economic growth. The results of the analysis confirm that EU funds have led to increased economic growth in EU countries which provides basis for economic convergence. However, the allocation of funds alone did not necessarily increase the quality of the institutional framework and competitiveness of the analysed countries. Thus, the paper confirms the importance of improvement of the institutional and regulatory framework of particular grant recipient country, as this not only increases the absorption of EU funds, but also improves the economic growth prospects.

Sustainable Environmental Development from the Regional Perspective—The Interesting Case of Poland

The EU regional development policy aims to reduce through its cohesion policy the socio-economic development disparities between its most developed regions and peripheral regions. Research shows that despite this strategy, the economic development of EU countries in the spatial system is not homogeneous. In addition, contemporary strategies take into account economic development with respect to environmental protection. The goal of this paper was to assess sustainable regional development in Poland, taking into account environmental and innovative activity indicators, as well as mobility and accessibility in remote areas. To recognize the effects of supporting sustainable development, the evaluation was carried out considering the indicators from the Statistics Poland platform, concerning 2011 and 2021, and related them to economic development, the environment, mobility and accessibility of 16 regions. Comparing results obtained with the K-means clustering method with those obtained with the partitioning around medoids method, it was possible to verify, with greater reliability, the migration of regions into different clusters. Results showed that development of all the regions was significant yet highly disproportionate, thus highlighting the consolidated presence of dynamically growing regions versus peripheries, which means further regional polarization. An educational cross-sectorial approach can play a crucial role in promoting green pro-innovative development.

The new EU regional policy: implementation features in the context of modern challenges and risks

The development of EU countries in the conditions of Ukraine’s war with Russia, the threat of challenges associated with new waves of the pandemic create new development imbalances, which are important to take into account when building EU regional policy. The purpose of the article is to research new approaches to EU regional policy and clarify current challenges and risks. The article highlights the paradigmatic changes in the regional policy of the countries of the European Union and explains the shift of the regional development model from resource-distributing to innovation-stimulating. An analysis of the financing of EU countries from structural funds was carried out and it was found that the impact of globalization, migration, climate change, and environmental pollution are inherent in all countries, not only less developed ones, which requires financial support from highly developed countries. New approaches to EU regional policy have been systematized and the main principles, financial instruments, key investment priorities, innovations for the 2021-2027 period and differences from previous periods have been clarified. The main challenges and risks of the EU’s regional policy in today’s conditions are identified: the «migration» crisis associated with the influx of migrants and refugees from Ukraine and countries with unfavorable living conditions into the EU; new twists of the «coronacrisis»; uneven load of refugees and different dependence of countries on Russian energy resources; the deterioration of the demographic situation due to the aging of the population, the emergence of a shortage of qualified workers due to digital transformations. The answer to the new challenges of EU regional policy should be sought in three directions: increasing stability and the ability to respond to unexpected shocks; adaptation to the strengthening of the demographic crisis, the fair distribution of the transition to a climate-neutral, circular economy.

Региональная политика Евросоюза в работах отечественных исследователей: историографический анализ

The article examines the emergence of the study of regional policy issues or the cohesion policy of the European Union in Russia. An attempt is being made to systematize and typologize all the available works of domestic researchers on EU regional policy. The practical experience of many domestic researchers studying the problems of this area of EU activity is summarized.

РЕТРОСПЕКТИВНИЙ АНАЛІЗ ЄВРОПЕЙСЬКОЇ ПРАКТИКИ ТРАНСФОРМАЦІЇ ЕКОНОМІЧНОГО СЕРЕДОВИЩА ПРИКОРДОННИХ ТЕРИТОРІЙ У ПРОЦЕСІ РОЗШИРЕННЯ ЄС

The theoretical foundations of the essence and organization of the economic environment of border areas are generalized. The features of its transformation are outlined on the basis of the analysis of changes in the qualitative and quantitative characteristics of its structural elements in the context of deepening European integration processes. The priorities of the EU Regional Policy in the field of regulating the development of internal and external border regions are outlined and the main instruments for its implementation are structured. The development of border regions is monitored by the main socio-economic indicators of their development. The factors of formation and functioning of the shadow sector of the regional economy are substantiated and systematized, and the main methods of its assessment are summarized. Promising directions for the development of border areas in the context of liberalization of foreign economic activity are identified, and relevant proposals to public authorities and local governments are prepared. According to The EU Action Plan for the border regions is envisaged and systematized: Increased investment in transport infrastructure of the Trans-European Networks (TEN) by increasing the level of Community support for TEN projects to 20% to finance the most urgently needed projects in the border area; reorientation of structural instruments to maximize the impact of EU financial assistance; financing measures aimed at strengthening cooperation between small and medium-sized enterprises ; providing the EU with EUR 20 million for networking activities between border regions and candidate countries within the framework of INTERREG; modification of the Phare-CBC program in order to: identifying the same priority areas under Phase CBC and INTERREG A; simplifying co-financing of transnational (INTERREG B) or interregional (INTERREG C) cooperation projects that are important for improving the socio-economic situation in the border area; launching a special program of the European Investment Bank (EIB) to support healthcare and transport infrastructure projects in the border regions of the candidate countries.

The Euregional policy impact of COVID 19 on the border region between the Netherlands, North-Rhine Westphalia and Belgium

Abstract During the Coronavirus pandemic, internal European borders were temporarily re-established with the argument to mitigate the outbreak. Also in the border region between the Netherlands, North-Rhine Westphalia and Belgium (EMR). Existing evidence on the effectiveness of border control for infectious disease control (IDC) has been dominated by studies that focused on scenarios within countries with limited attention to border regions. To address this gap, we analysed the experiences of public health professionals working in European border regions. We conducted three studies: 1. seroprevalence and questionnaire study among 10.001 Dutch persons with and without cross border mobility, 2. analyses of incidence data in municipalities in 4 cross border regions to analyse cross border differences, and 3. we conducted 27 semi-structured interviews with public health professionals in the EMR. Participants were asked about their perspectives on border controls and the spread of Covid-19. Four key-results: First, border regions are characterised by dynamic social life and cross-border movements. Incidence was mainly determined by country policy, Second, the impact of border control and closing on local infectious disease epidemics is likely marginal. Third, due to the dynamic social life, border control measures cannot be fully implemented in border regions, and thus their effectiveness is even more questionable. Fourth, border control measures may harm the social fabric of border regions more than they do in in-countries territories. Our study results highlighted the ineffective role of border control measures for regional infectious disease control. Sustainable cross-border collaboration is crucial to ensure effective pandemic management in border regions. The results of our study impacted on policy makers, to be much more reluctant with closing borders.

How Can the European Union Adapt to Climate Change?

Europe must increasingly deal with the harmful impacts of climate change, regardless of its success in reducing emissions. These impacts have significant cross-border effects and threaten to deepen existing divisions. Cooperation on adaptation, which is mostly seen as requiring local or regional efforts, may be useful, but the role of the European Union is ill-defined. This article gives an overview of how climate change might transform Europe and how it might affect people and the economy. It also discusses on what grounds adaptation policies should be pursued at the EU level. The article argues that a stronger adaptation governance framework would benefit adaptation efforts and formulates three ideas to strengthen adaptation. The first is a three-layered governance framework based on intensive cooperation to establish binding adaptation plans. Second is an EU-level insurance scheme against damages from climate change, with the size of national contributions tied to the achievement of targets in adaptation plans. The final suggestion is to increase ex ante adaptation funding by targeting more spending under EU regional and agricultural policies specifically to adaptation in the most vulnerable regions.

The response of regional well-being to place-based policy interventions

Enhancing the well-being of its citizens is the central remit of the EU's regional policy, but as yet, there is no analysis of the effects of EU regional policy on local well-being. The aim of this paper is to examine this relationship. To do this, we define a novel regionalised well-being measure and we exploit a dataset on regional expenditure in a continuous treatment framework. Based on both parametric and semi-parametric approaches, our analysis demonstrates that the EU regional development policy does influence regional well-being differently from GDP. We find evidence of a linear monotonic response of well-being growth to total transfers, although this effect varies according to the time lag considered and the level of development of the region.

Архетипні основи інституційно-інноваційних проєктів сталого розвитку територій в умовах постмодерну

The decentralization and post-war recovery processes raise the issue of sustainable territorial development to a qualitatively new level, based on innovation and the search for appropriate resources. The study aims to analyse the features of building institutional and innovative projects within the new concept of territorial development resources based on the archetypal approach and develop practical recommendations for their implementation on the example of sub-ethnic groups of the Sumy region. The study based on world experience substantiates that the process of innovative development of territories should not focus solely on economic issues and technological change but should consider socio-cultural aspects that can be viewed as an essential component of the potential. Considering territorial archetypes when initiating changes and resolving issues of territorial development will allow the development of effective measures through the rational use of resource potential. It is determined that the question of considering socio-cultural historical and modern approaches to to studying settlements, cities, and landscapes (regional and local aspects), analysis of their formation, change and development in developing strategies. The importance of the regional component is illustrated by the experience of the EU, where local authorities are gaining more and more ground in finding the most practical and concrete opportunities for territories. It is determined that public administration undergoes significant changes under the influence of postmodernism, a new philosophy of building organizational structures, government, and management. It considers the uncertainty and ambiguity of new types of social systems and is seen as open to the future. The authors consider the application of postmodern theories to be fruitful in studying the impact of the socio-cultural environment on socio-economic processes and adaptation of innovations. This factor’s impact on economic entities’ behaviour has traditionally been regarded as exogenous. Given the use of postmodern methodology must be studied when trying to return people and actual processes to a place occupied by abstract variables and modelled dependencies. The influence of postmodernism at the territorial level is determined based on the evolution of innovation communities. This approach is consistent with the current EU regional policy, which aims to enhance regions’ development by improving competitiveness efficiency. It is proposed to consider the possibility of using institutional and innovative projects for sustainable development of territories, considering the archetypal resource component and the concept of innovation communities. Institutional and innovative projects are considered so-called «security-related products» of territorial development, which may include innovative projects and programs that involve a wide range of resources, including socio-cultural, focused on achieving sustainable development goals. It is substantiated that the use of tools for institutional and innovative projects should be considered in the context of the smart specialization of regions, making it possible to consider the socio-cultural component practically. Examples of the use of archetypes for the construction of innovation and institutional projects in the instance of two sub-ethnic groups of the Sumy region are considered. The main archetypes of goryuns and sevryuks are generalized, and paper provides the related institutional and innovation projects they will promote.