Expenditure allocation for Rural Development interventions: main trends and patterns in the choices of the Italian Regions under the CAP 2023-2027

The introduction of the new delivery model in the 2023-2027 Common Agricultural Policy increased the decision-making and management autonomy of Member States and their regions when implementing Rural Development policies. Thus, understanding the drivers behind allocation choices for rural development funds is crucial. This study analyses the allocation of rural development funds across Italian regions, considering ex-ante share allocation for different types of Rural Development interventions. A cluster analysis is then performed. Different groups of Italian regions are characterised using the indicators developed within the common monitoring and evaluation framework, the allocation of spending in the previous programming period, and other variables. Four clusters of Italian regions are identified: cluster 1 includes rural regions with low urbanisation, prioritising supporting interventions in disadvantaged areas and “environmental” ones; cluster 2 shows large allocation for cooperation interventions; cluster 3 includes regions funding primarily agricultural investments; cluster 4 shows no distinct or unique characteristics. This study is the first one addressing expenditure allocation of the 2023-2027 Common Agricultural Policy. It confirms that expenditure patterns partially couple with geographical and historical similarities, although two main spending priorities (i.e. “environment” and “investments”) persist.