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EFFECTIVENESS OF THE EU'S STRUCTURAL COHESION POLICIES
Tuesday 20th April 2004
An independent report on the effectiveness of the EU's structural and cohesion policies has been published today.
The report examines the effectiveness of the funding and notes a comparison between stated aims and actual output. It shows, through detailed cases studies and interviews, that targets have consistently not been met.
In Objective 1 regions, the report shows there has been some success. Economic growth averages one percent higher than for the EU as a whole. There are very significant variations in the performance of regions - not what would be expected to be seen if the policy was effective. Structural policies have not proved to be consistent.
In Objective 2 regions, the report shows that GDP per head actually fell in relative terms. Economic activity also rose by a smaller amount than in the EU as a whole. Some success was achieved - unemployment fell measurably faster in those regions receiving support, but these jobs were created at a cost of €37,000 (25,000) per job.
Interviews conducted show that the personnel selected to manage programmes have very little training or experience. Their public sector background often means they lack natural understanding of business needs. In some regions around 30% of applicants have had to wait over 6 months for project approval.
Timothy Kirkhope, MEP for Yorkshire and the Humber, said:
"Case studies show that targets have consistently not been met. For example, figures from the mid-term report on Wales's structural funds programme show that the impact of their use has been at best inconsistent and at worst totally ineffective. Only 3,736 of the 15,300 jobs due to be created had been achieved at mid-term. Over 1,000 agricultural holdings were due to receive funding but at mid-term only 59 had received support.
This report highlights the failures of the EU 's structural and cohesion policies. A huge amount of time and money has been wasted through attempting to meet local needs through a supranational body. In order to ensure that these local needs are met effectively, it is clear that large scale reform is desperately needed."
