European Union Regional Policy

European conjugation regional indemnity After the min World War, there had been attempts to re-unify the war-torn countries in Europe. However, there were many obstacles on the processes made. Problems still existed amid rival countries such as in the midst of France and Germany, and sparing situations in the European countries later the war was in a charter of development. In order to get away with such paradoxs of providence and relation between these countries, a community was created in 1951 by having first coal and brace as their central sh ared interests. This European Coal and Steel residential district later genuine in to the European Economic Community and in the long run in to the well-known European union. This kind of community allows its fraction to correct their scotch conditions through custom heart and free trade, while advances their diplomatic relationship through their interactions. Efforts to integrate Europe can similarly be seen in 6 expl osions of the Union allowing other states of Europe to join after they dupe accepted the community law. However, allowing other states to be divisions of the Union representation there leave be differences between the new and the old members of the union especially in economical terms. The most significant enlargement was the fifth enlargement in 2004 which was when the ten poor states in Europe trenchant to join the Union. In order to lessen the financial gaps between the members, the regional insurance came in and played a major role in improving the economic disparities between states to allow their economy to grow. This paper result be focusing on the background of the regional policy, reasons why it is needed, primary(prenominal) verifiables, geographical eligibility, and who decides the mount.Background The idea of balancing the economic status of member states in the community has been there since the very early years of the European integration, or around 1950s. T here were common chord sectors of financial support which were created during 1957- 1988 the root of the integration, to help support the development missions of the European Community the European loving origin (ESF), the European Agricultural Guidance and Guarantee Fund (EAGGF), and the European regional Development Fund (ERDF). In 1986, the cohesion policy was introduced after the agreement on the Single European Act with the verifiables of re-uniting and developing the economy of member states all together. However, in order to achieve the purpose of foodstuff development through support and emulation between states, the members of the Union have to be equally strong or at least, the differences between countries shall not be very high in economic sense, or the poorer ones testament not be able to survive within the Union.Reasons for having the European Regional Policy The European Union expansion has been achieved, merely only in the number of members, not in economi c and favorable development terms. several(predicate) countries have different financial and social status, but to unite them together and to amend their economic growth, these differences have to be reduced to the extent that they impart not affect the countries with economic and social disadvantages in a interdict way, but allow them to grow stronger together and compatible with the more-developed nations in the community. The enlargement in 2004 has included 10 poorer countries in Europe in to the Union Poland, Cyprus, Slovakia, Czech Republic, Slovenia, Hungary, Malta, Latvia, Estonia, and Lithuania and other 2 later on in 2007 Romania and Bulgaria, in to the European Union making its numbers increased to 27 members (the EUs fifth Enlargement, 2004). The population of the union has increased significantly by 20%, but there was only 5% increase in the gross domestic product or the Gross Domestic Product of the Union. The problem here is that now the gross domestic product per person is lower than the average level of the European Union-27 in the ploughshare of 25% (one in four regions) making it a need to light their differences (Regional Policy, 2009). It is an idea agreed by all of the Unions members that in order to ameliorate the economy of all(prenominal) state and of the union as a completely, competition within the market is required. To survive in the competitive market and to improve its economy, a state needs to make itself capable of competing. The regional policy is there for financing the in-needed regions projects and helping the countries within the union to r to each one their goal of economic expansion, competitiveness, and solidarity. Ideas and technology can also be shared between states as in the process of development.Main objectives There are three main objectives divided by the Union Convergence, Regional Competitiveness and Employment, and European Territorial Cooperation, and three structural funds and instruments the Eu ropean Fund for Regional Development, the European Social Fund, and the coherency Fund. The policy for integrating and balancing the economic and social conditions in Europe is also known as the cohesion Policy whose current budget of 2007-2013 is 347.41 billion euro or around 35.7% of the general budget of the European Union (Regional Policy, 2009).The Convergence Objective aims to promote economic growth and social development for the least-developed members of the Union in order to set ahead their ideal convergence. The areas of concern are environment, tourism, culture, transportation, energy, education, health, risk prevention, etc. The funding for this objective is consisted of around 282.8 billion euro (81.54% of the total ropiness Policy funding) provided by the EFRD, ESF, and the Cohesion Fund ibid.The Regional Competitiveness and Employment objective helps supporting regions to toughen their economy by investing on the public and private sectors of the regional econom y to emphasize on competition, attractiveness and employment. By doing so, they believe that it go away provide more works with better standard for the people of each region which will also improve the regions economic and social conditions. This objective also has its aim on preserving the environment, improving transportation and communication system. The do of funding for this objective is 55 billion euro (15.95% of the total Cohesion Policy funding) provided by EFRD and ESF ibid.The European Territorial and Co-operation objective is funded by the European Fund for Regional Development with the amount of 8.7 billion euro (2.52% of the total Cohesion Policy funding) ibid. This objective aims at improving the integrated regions social and economic conditions, multinational cooperation, and at a lower placelining the answeriveness of the Regional Policy.Geographical EligibilityThe state members who are eligible for receiving the Cohesion Policy Fund are mostly countries from th e 5th and 6th enlargements in 2004 and 2007, whose Gross National Income (GNI) are less than 90% of the average of the European Union. Regions which get this kind of funding are Bulgaria, Czech Republic, Estonia, Greece, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Portugal, Romania, Slovenia, and Slovakia (Regional Policy, 2009). Spain is another state of matter that fits in this phratry, however, for Spain it is a special case since its GNI was low enough for this category when EU had 15 members. In order to deal with this matter, Spain was put under the phasing-out system, so the country will not be much bear on after the ten poorer states join the Union in 2004.The Convergence objectives funding is available for countries whose Gross Domestic Product per person is lower than 75% of the European Union average (Regional Policy, 2009). Examples of regions in this category (EU-25) are the whole Bulgaria, Estonia, Latvia, Lithuania, Poland, Romania, and Slovenia, parts of Cz ech Republic, Germany, Greece, Spain, Hungary, Italy, France, United Kingdom, and Portugal. For the phasing-out system which was introduced to help reduce the effect it might have on the poor countries receiving this funding before the poorer 10 countries join the EU, which concerns countries who were eligible at the time when EU had 15 members are some regions in Belgium, Germany, Greece, Spain, Austria, Portugal, Italy, and the United Kingdom. The Regional Competitiveness and Employment Objectives funding is available to regions who are not supported by the convergence objective, and until 2013- whose GDP is higher than 75% of the EU-15 average. Examples of these regions are those in Eire-Ireland, Greece, Spain, Italy, Hungary, Portugal, etc. The geographical eligibility for the European Territorial Cooperation Objective consists of cross-border cooperation transnational and interregional cooperation- including regions within a distance of 150km. on board of inner, outer land bord ers, and maritimes.Who decides funds? The European commission will talk about with its member states about the cohesion policy and the strategy for dealing with each states conditions in order to reduce the existing disparities between the more developed and the less developed regions within the Union. After come to an agreement, the Commission will draw out a proposal and hand it over to the European Parliament and the European Council who will take it into consideration and decide on the structural funds and their regulations.Conclusion The expansion of the European Union is firing well throughout the decades however, after accepting new members from the poorer regions, especially in the enlargement of 2004, the European Union has faced with a bigger problem of social and economic differences between member states. In order to cope with this matter, the Regional Policy has been emphasized on more than in the erstwhile(prenominal) to improve the newly-joined-less-developed regio ns and the old-less-developed regions economic and social status, so that they are compatible with the more developed countries. In order to improve the European Unions economic and social status, the market has to remain its competitiveness and solidarity, meaning that if the poorer countries are less capable, they may not be able to survive or improve their economy, but financially and socially fail. The Regional Policy helps improve the smaller bits of the member states in regional scale to make better environment for the prox stronger economy of the countries and strengthen their conditions, so that they will be able to get by in the domestic and international market, improve their social and economic situations and also those of the Union as a whole.ReferencesRegional Policy, 2009. Regional Policy. European Commission. online unattached at http//ec.europa.eu/regional_policy/policy/history/index_en.htm Accessed 20 March 2010.The EUs 5th Enlargement, 2004. The European Union in the World. Enlargement. online Available at http//www.dellbn.ec.europa.eu/en/enlargement/index.htm Accessed 20 March 2010.Malais J. Haegeman, H., 2009. Analysis on the European Union Regional Policy. European Union Regional Policy. online Available at http//www.iiuedu.eu/ shift/journals/sds/sds1_july_2008/07_SECC_03.pdf Accessed 20 March 2010.