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Complementing EMU: Rethinking Cohesion Policy

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  • Iain Begg

Abstract

Under EMU, the less competitive regions of the EU--usually assumed to be peripheral--have been widely expected to lose ground, yet it is the core of the EU that, so far, has appeared to have suffered from the advent of the euro. This paper looks at the processes behind regional divergence in the EU, and presents evidence on recent and prospective trends as EMU is consolidated. Bearing in mind that the imminent enlargement of the EU will radically change the political economy of the EU's efforts to assure 'cohesion', policy issues are then discussed. Looking forward to the next renegotiation of the Structural Funds, it is argued that difficult decisions have to be taken about the extent and character of EU policy. The option of an open method of coordination for cohesion policy is put forward as a means of resolving some of the hard choices. Copyright 2003, Oxford University Press.

Suggested Citation

  • Iain Begg, 2003. "Complementing EMU: Rethinking Cohesion Policy," Oxford Review of Economic Policy, Oxford University Press, vol. 19(1), pages 161-179.
  • Handle: RePEc:oup:oxford:v:19:y:2003:i:1:p:161-179
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    Cited by:

    1. Nikos Christodoulakis, 2009. "Ten Years Of Emu: Convergence, Divergence And New Policy Priorities," National Institute Economic Review, National Institute of Economic and Social Research, vol. 208(1), pages 86-100, April.
    2. Nigel Pain & Desirée Van Welsum, 2003. "Untying The Gordian Knot: The Multiple Links Between Exchange Rates and Foreign Direct Investment," Journal of Common Market Studies, Wiley Blackwell, vol. 41(5), pages 823-846, December.
    3. Hansen, Heiko & Herrmann, Roland, 2012. "The two dimensions of policy impacts on economic cohesion: Concept and illustration for the CAP," Food Policy, Elsevier, vol. 37(4), pages 483-491.
    4. Iain Begg, 2008. "Structural policy and economic convergence," CESifo Forum, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 9(1), pages 3-9, April.
    5. Rodriguez-Oreggia, Eduardo & Rodriguez-Pose, Andres, 2004. "The Regional Returns of Public Investment Policies in Mexico," World Development, Elsevier, vol. 32(9), pages 1545-1562, September.
    6. Florence Bouvet, 2010. "EMU and the dynamics of regional per capita income inequality in Europe," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 8(3), pages 323-344, September.
    7. Golemanova, Antoaneta & Kuhar, Ales, 2007. "Post-Accession Opportunities for Rural Development in Bulgaria," 100th Seminar, June 21-23, 2007, Novi Sad, Serbia and Montenegro 162397, European Association of Agricultural Economists.
    8. Petrakos, George & Dimitris, Kallioras & Ageliki, Anagnostou, 2007. "A Generalized Model of Regional Economic Growth in the European Union," Papers DYNREG12, Economic and Social Research Institute (ESRI).

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