Undermining the Principle of Concentration? European Union Regional Policy and the Socio-economic Disadvantage of European Regions

Abstract: This paper sets out to analyse the regional policy of the European Union by assessing whether the actual distribution of funds to the regions undermines the principle of territorial concentration. The empirical analysis shows that, due to either political equilibriums or inaccurate assumptions about the most cost-effective allocation of the funds, the sources of structural disadvantage are more spatially concentrated than the funds devoted to compensating this disadvantage and reveals a weak association between socio-economic disadvantage and European Union funding. Corrections in allocation mechanisms are recommended in order to increase fund concentration and earmark resources more adequately to disadvantaged regions.