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Application of Regionally Varying Additionality Degrees in the Practice of EU Cohesion Policy

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  • Chang Woon Nam

    ()

  • Georg Wamser

Abstract

The additionality principle says that the funds of the European Union should not replace, but be an addition to national regional policy funds. The benchmark for the co-funding is that the EU bears 50% of total costs associated with regional projects eligible for EU support. In some regions, however, the EU contribution has reached 85% of total costs. This study examines how such additionality degrees are determined. Our findings indicate that the regional variation of additionality degrees is largely in line with EU cohesion policy goals. Most notably, higher shares of EU funds are provided to regions with lower GDP per capita. Furthermore, while the share of service-sector employees in a region is negatively related to the additionality degree, the impact of the rate of long-term unemployment is positive.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2010/wp-cesifo-2010-02/cesifo1_wp2971.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2971.

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Date of creation: 2010
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Handle: RePEc:ces:ceswps:_2971

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Related research

Keywords: additionality; cohesion policy; EU regions; matching grant; growth and distribution;

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References

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  1. Ron Martin & Peter Tyler, 2006. "Evaluating the impact of the structural funds on objective 1 regions: An exploratory discussion," Regional Studies, Taylor & Francis Journals, vol. 40(2), pages 201-210.
  2. Sjed Ederveen & Joeri Gorter & Ruud de Mooij & Richard Nahuis, 2003. "Funds and Games: The Economics of European Cohesion Policy," Occasional Papers 03, European Network of Economic Policy Research Institutes.
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Cited by:
  1. Chang Woon Nam & Alina Schoenberg & Georg Wamser, 2011. "Lisbon Agenda, Regional Innovation System and the New EU Cohesion Policy," CESifo Working Paper Series 3564, CESifo Group Munich.
  2. Chiara Del Bo & Massimo Florio & Silvia Vignetti & Emanuela Sirtori, 2011. "Additionality and regional development: are EU Structural Funds complements or substitutes of national Public Finance?," Working Papers 201101, Centre for Industrial Studies (CSIL).

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