A classification of European NUTS3 regions

Over the years a number of Common Agricultural Policy (CAP) reforms have led to the emergence of a CAP chapter specifically dedicated to rural development, also referred as Pillar 2, and have resulted in a progressive switch of CAP budget from Pillar 1 (i.e. direct support to farmers, including direct payments and other instruments for market regulation) to Pillar 2. Approximately 23 per cent of the CAP should be allocated to rural development measures during the period 2014-2020. The recent development of Pillar 2 calls for further research on the impact assessment of such policies. Unfortunately, the diversity of rural situations across Europe has complicated the empirical studies of the impacts of rural development and often makes any comparison between regions rather trivial. The main objective of this report is the creation of a classification of 1303 NUTS3 regions, which reflects the heterogeneity of NUTS3 characteristics in the EU. This classification is multidimensional. In particular, the typology is based on the following set of four criteria: Rural Character, Accessibility, Actual economic diversification and Total Gross Domestic Product per capita. Such classification will facilitate the comparison of rural development policy impacts between regions of interest across Europe.