Gap between EU regions increasing

Date: 12/09/1996

By Mark Turner

EU POLICIES designed to strengthen the economic performance of its weaker members have narrowed the gap between richer and poorer member states, but the gulf between individual regions is getting wider.

A Commission report due to be published later this year is also expected to reveal that while regional aid has yielded dividends in Portugal, Spain and Ireland, it has had considerably less success in Greece and southern Italy.

The full findings are expected to emerge next month as the Commission examines possible changes to its regional development strategy when the current six-year 141-billion-ecu package expires at the end of 1999.

With the prospect of enlargement eastwards hanging over the Union, a key feature of the politically sensitive debate will be whether to reduce the number of areas benefiting from regional aid.

At present, half the Union is eligible. Advocates of change argue that for the policies to be effective and costs contained, the figure should be nearer 30&percent;.