Regional Disparities in the EU (2011:4)

The aim of reducing regional disparities in the European Union is enshrined in the EU Treaty. An important aspect that takes centre stage in discussions on the EU’s so-called cohesion policy is the ranking of the Union’s many regions in terms of their levels of prosperity. This ranking largely determines whether and by how much a region will be supported from the general budget. Crucially, regional prosperity and the ranking as such depend largely on how we measure disparities and development. This report discusses how regional disparities should be measured and what the EU ought to do in order to reduce these disparities.

The report was presented at the seminar Regional Dispartities and Regional Policy in the European Union and is part of the research project The EU Budget.

Adolfo Maza is Associate Professor of Macroeconomics at University of Cantabria and José Villaverde is Professor of Macroeconomics at University of Cantabria.