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.
* EAGGF: European Agriculture Guidance and Guarantee fund
Despite improvements, unemployment remains a pressing concern. In the worst affected regions, the rate rose from 20% in 1987 to 24% in 1997 although it levelled out at around 4% in the 25 most favoured regions. In the 25 worst hit regions, 60% of those out of work were long-term unemployed, youth unemployment was 47% and only 30% of women of working age had a job .
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