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GO 357 The Political Economy of Regionalism

GO 357 The Political Economy of Regionalism. Walter Hatch Colby College “A Europe of Regions”. The EU: integrating nation-states. The EU: integrating local governments. In Principle. Subsidiarity: decisions should be made at the closest practical level to the citizen. In reality.

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GO 357 The Political Economy of Regionalism

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  1. GO 357The Political Economy of Regionalism Walter Hatch Colby College “A Europe of Regions”

  2. The EU: integrating nation-states

  3. The EU:integrating local governments

  4. In Principle Subsidiarity: decisions should be made at the closest practical level to the citizen

  5. In reality A Democratic Deficit

  6. Regional Policy Treaty of Rome (1957) is designed to promote regional integration … “by reducing the differences existing among the various regions and the backwardness of the less-favored regions.”

  7. Structural Funds • European Social Fund (ESF) • European Agricultural Guidance and Guarantee Fund (EAGGF) • European Regional Development Fund (ERDF) • Financial Instrument for Fisheries Guidance (FIFG) • Cohesion Fund (not a regional fund)

  8. Regions in the EU

  9. Why? • Maintain cohesion in midst of disparities • Germany vs. Portugal • Belgium vs. Greece • “Sidepayments”

  10. New Challenges • Dramatic income disparity • GDP per capita in Luxembourg: $65,600 • GDP per capita in Latvia: $6,800 • Dramatic employment disparity • 2% jobless in Warwickshire (UK) • 30% jobless in Reunion (FR) and 23% in Vychodne (Slovakia)

  11. Creating a Monster • 1/3 of EU budget • ¾ if CAP included • Annual budget of about 30 billion euros ($37 billion) • Seven-year budget of about 235 billion euros ($290 billion) for 2000-2006 • For 2007-2013: 336 billion euros ($413 billion)

  12. Structural FundsCurrent Budget (2000-06) Billion EUR; commitments in 1999 prices

  13. Old Winners and Losers(pre-enlargement) • Net winners: Spain, Portugal, Greece • Net Losers: UK

  14. New Winners and Losers(post-enlargement) • Net Winners: Poland, Malta, Latvia, Estonia, etc. • Net Losers: Spain, Portugual, Greece

  15. Structural Funds for EU-15(2000-06) million euros; commitments in 2004 prices

  16. France

  17. Spain

  18. Poland

  19. Inter-regional integration

  20. Newhouse • Wealthy regions • Transnational but not international economic complementaries • Secessionist impulses

  21. Catalonia

  22. Jordi Pujol

  23. Padania

  24. Umberto Bossi

  25. Toward a system ofmulti-level governance

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