The economic return of cohesion expenditure for Member States

This study provides an analysis of the economic returns of structural and cohesion policy expenditure (ERDF and Cohesion Fund) to net contributors to the EU budget, (“donor” member states). The analysis shows that the economic benefits for the recipient countries are positive both during the implementation phase and in the long-run. Although the donor member states gain from expanded trade, this is not sufficient in all cases fully to compensate them for the negative economic effects that arise from the extra cost to finance the cohesion expenditure programmes in the recipient states by means of higher taxes in the donor states. However, negative impacts, where they arise, are small.

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