First, we document the motivation for such policies, that is, the large income disparities across the regions of the EU15.
Large disparities are certainly present.
Second, we illustrate the various instruments adopted and discuss their underpinnings in established economic theories. Our conclusion is that regional and structural policies serve mostly a redistributional purpose, motivated by the nature of the political equilibria upon which the European Union is built. They have little relationship with fostering economic growth. This casts a serious doubt on their social value and, furthermore, strongly questions extending such policies to future members of the European Union. A successful EU enlargement, in our view, calls for an immediate and drastic revision of regional economic policies.