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Regional Policy


            
             Regional Policy is one of the most controversial areas of European Union's communal programs. The aim of "economic and social cohesion- - as in the Treaty of European Union it is referred to - has been to bring the lagging regions closer to the average level of EU's economic performance. It is always difficult to appraise the achievements of any incentive scheme since it can be compared to nothing. We must make assumptions about what would have happened if it had been carried out instead of that Therefore, this essay does not intend to announce the final judgment on Regional Policy rather tries to demonstrate its effects made to reduce the regional disparities in the European Union. .
             I try to present as many facts and figures as is required for anyone to draw his/her final conclusion. The question is far more complex than to be simply summarized as a failure or success. Because of the above mentioned reasons it is impossible to tell where the regions would have arrived at without the undertaken actions. Hence, I feel my obligation to point out precisely the work and effort that have been done, so that critical analysis could be carried out. .
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             INTRODUCTION TO REGIONAL POLICY.
             I think before going into detailed discussion of the policy it is worth examining the structure and idea of the whole process to be able to comment its accomplishments later on. Therefore, I would like to start with a short description of the bodies it is based on, the ideas by which the aims are set and some factual data to see what was actually spent on the problem regions. .
             With the accession of Spain, Portugal (1986) and Greece (1981) the population of EU grew by 22 per cent while its GDP only by 10 per cent . It was one of the many reasons why the Regional Policy became more appropriate and stressed within the EU gaining share constantly in the annual budget. In the 70's, it amounted to 5 per cent, 10 per cent in the 80's and almost one third of the budget was spent on regional issues in the 90's .


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