While the competitiveness of the EU’s underperforming regions has increased over the years, a closer look shows that wide regional differences remain, hampering Europe’s overall economic growth and development.
The benefits of improving regional competitiveness are clear.
On average, the EU’s more competitive regions gain significant advantages in economic development and more – such as offering better opportunities for young workers – as shown by the EU’s latest Regional Competitiveness Index (RCI) report.
In more competitive regions on average, GDP per capita is higher, women have better achievement rates and lower rates of unemployment.
Recent graduates find such regions more attractive, as it is easier for them to find a job.
Around one-third of the EU’s budget is invested in Europe’s regions under cohesion policy funding, which is overseen by the Directorate-General for Regional and Urban Policy (DG REGIO).
Most of the investments are for the development of underperforming regions and aim to reduce regional disparities, including in competitiveness.
DG REGIO’s RCI report shows that less developed regions have improved their competitiveness between 2016 and 2022.
Improvements were made in some key components of competitiveness, such as a more skilled workforce and better infrastructure.
Advances were also made on average in areas more linked with innovation. (...)
Both the handbook and a new cohesion policy objective will contribute to achieving sustainable growth in all EU regions and bringing Europe closer to citizens. The Handbook of Territorial and Local Development Strategies
is a tool for designing, implementing and monitoring strategies that
build resilience, prosperity and democracy in non-urban areas. The
intended audience includes managing authorities, policymakers, local
action groups and development agencies, and anyone interested in
ensuring that non-urban areas meet the needs of citizens and are part of
a green and digital Europe. (...)
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