An ex-post evaluation of the Fund for European Aid to the Most Deprived 2014-2020

The study performs an ex-post evaluation of the Fund for European Aid to the Most Deprived (FEAD) during the 2014-2022 implementation period, assessing its impact on poverty across EU regions. The study examines six key poverty measures, including population at risk of poverty or social exclusion (AROPE), poverty incidence and intensity, income inequality, concurrence, and persistence of poverty. The analysis reveals significant regional disparities, with Mediterranean and Eastern European countries experiencing higher rates of poverty and income inequality, partly exacerbated by the 2008 economic crisis. While notable reductions in AROPE were observed, particularly in less developed regions, improvements in poverty intensity and income inequality remain uneven, with some areas showing worsening conditions. A Fixed Effects regression model shows a positive correlation between increased FEAD funding and reduced poverty and inequality, although challenges in establishing causality persist due to the non-random allocation of FEAD. To address this, a Dose-Response model was applied, demonstrating significant positive effects of FEAD on all six poverty measures, indicating that increased FEAD funding effectively reduces poverty and social exclusion across the EU.