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Consequences of enlargement for European Regional Policy: the spanish viewpoint

  • Carmela Martín
  • Ismael Sanz

The aim of this study is to assess possible reforms for the future financial framework of the Community Budget for the period 2007-2013, attaching special importance to their impacts on the Spanish economy. We analyze the fiscal balances of each of the Fifteen with the Union budget and reveal the existence of problems of horizontal equity in the contributions of the Fifteen to the Community budget. We also show that, as opposed to what is usually affirmed, Spain is not the country that has most benefited from the Structural Measures policy. After simulating the costs that would be entailed in enlargement, including the “statistical effect”, we defend the advisability of introducing corrective mechanism that may enable the regions of the present members that would continue to be beneficiaries of aid to Objective 1 regions, if there were no enlargement, to go on receiving it. Furthermore, our study upholds a more ambitious proposal: to undertake a reduction in the Community budget funds allocated to direct CAP aid in order to release funds both for the regional policy and for other Community policies.

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Paper provided by European Economy Group in its series European Economy Group Working Papers with number 27.

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Length: 66 pages
Date of creation: 2003
Date of revision:
Handle: RePEc:eeg:euroeg:27
Contact details of provider: Postal: Despacho 104.Pabelloon de Segundo, Facultad de Economicas. Universidad Complutense de Madrid. 28223 Pozuelo de Alarcon, Madrid
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Web page: http://www.ucm.es/info/econeuro
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  1. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  2. Diego Puga, 2002. "European regional policies in light of recent location theories," Journal of Economic Geography, Oxford University Press, vol. 2(4), pages 373-406, October.
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  8. Ottaviano, Gianmarco & Puga, Diego, 1997. "Agglomeration in the Global Economy: A Survey of the 'New Economic Geography'," CEPR Discussion Papers 1699, C.E.P.R. Discussion Papers.
  9. Bradley, John & Modesto, Leonor & Sosvilla-Rivero, Simon, 1995. "HERMIN : A macroeconometric modelling framework for the EU periphery," Economic Modelling, Elsevier, vol. 12(3), pages 221-247, July.
  10. David Alan Aschauer, 1998. "Public Capital and Economic Growth: Issues of Quantity, Finance, and Efficiency," Economics Working Paper Archive wp_233, Levy Economics Institute.
  11. Isabel Argimon & Jose Gonzalez-Paramo & Jose Roldan, 1997. "Evidence of public spending crowding-out from a panel of OECD countries," Applied Economics, Taylor & Francis Journals, vol. 29(8), pages 1001-1010.
  12. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
  13. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
  14. J.Peter Neary, 2001. "Of Hype and Hyperbolas: Introducing the New Economic Geography," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 536-561, June.
  15. de la Fuente, Angel, 2002. "Is the Allocation of Public Capital Across the Spanish Regions too Redistributive?," CEPR Discussion Papers 3138, C.E.P.R. Discussion Papers.
  16. Enrique Lopez Bazo & Esther Vaya Valcarce & Antonio Jose Mora & Jordi Surinach Caralt, 1997. "Regional economic dynamics and convergence in the european union," Working Papers in Economics 12, Universitat de Barcelona. Espai de Recerca en Economia.
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