EU Structural Policies: Objectives, Instruments, and Principles

Posted on Mar 6, 2025 in Business Administration and Management (BAM)

EU Structural Policies: An Introduction

The European Union (EU) employs structural policies to address regional disparities and promote economic and social cohesion. These policies involve various instruments and operate under specific principles.

Structural Instruments

Several key instruments support the EU’s structural policies:

  • European Coal and Steel Community (ECSC, 1951): Addressed structural issues in the coal and steel sectors.
  • European Social Fund (ESF) and European Agricultural Guidance and Guarantee Fund (EAGGF, 1958): These policies were established to support the Treaty.
  • European Regional Development Fund (ERDF, 1973): Introduced the concept of redistribution between developed and less developed regions.
  • Integrated Mediterranean Programs (IMP, 1986): Implemented to assist Greece, Italy, and France.

Cohesion Instruments

  • ERDF: Corrects regional imbalances within the Community, introducing redistribution between regions.
  • ESF: Promotes employment opportunities, geographical and professional training, and funding for stable employment and start-ups, particularly for workers under 25 years old.
  • EAGGF: Supports shifting cultivation and secure production.
  • FIFG: Groups financial resources for structural measures in fisheries and aquaculture.
  • Cohesion Fund: Contributes to economic and social cohesion through environmental projects and trans-European networks, benefiting countries with a GNP per capita less than 90% of the EU average.
  • European Investment Bank (EIB): Provides investments to help disadvantaged regions within and beyond the community, also supporting SMEs.

Principles of Structural Policies

  1. Principle of Concentration: Funds are allocated based on unified criteria, targeting disadvantaged and less populated regions.
  2. Principle of Programming: Structural policies are scheduled on a 6- to 10-year basis, with coordinated funds.
  3. Principle of Cooperation: Member states are responsible for presenting programs to the Commission, coordinated with agencies at a lower level.
  4. Principle of Additionality: EU instruments do not replace national resources. Problems should be addressed at lower levels when possible.
  5. Principle of Evaluation: The EU evaluates its initiatives, which may not always align with member states’ views, and develops its own pilot projects.

Regional Policy and Structural Action

Regions are categorized under objectives (Objective 1, 2, etc.), with Objective 1 regions being the most disadvantaged. Examples in Spain include the two Castiles, Andalusia, Galicia, Ceuta, Melilla, Canary Islands, and Murcia.

Remote Regions

French overseas departments (Guadeloupe, Martinique, Reunion), the Canary Islands (Spain), and Madeira (Portugal) are committed to development due to their remoteness. The Maastricht Treaty recommends specific provisions to address their unique circumstances, particularly for Objective 1 regions, and suggests fiscal policy considerations.

Trans-European Networks (TENs)

TENs are networks that cross national boundaries to overcome natural barriers like the Alps, Pyrenees, the Channel, and Scandinavia. Examples include high-speed rail, pipeline interconnectivity, and central telephone networks, which the EU focuses on.