A Research On Cohesion Fund And Regional Policy Effect In European Union

Unbalanced development of regional economy is a widespread problem in the world. Both developed and developing countries, there is a difference in various degree in such aspects as economic development level, resources endowment, per capita income, synthesized economic strength between every area. With the development of economic globalization, regional economics integration, the regional difference has trend of expansion. In order to solve the regional economy unbalance, it has formed a series of regional economic theories and regional economic policies. It is two main views of the regional economic development theoretical research, which are regional balanced development theory and economic theory of uneven development. The regional balanced development theory under the assumed conditions that the free flow of production elements and the diminishing of marginal return, think that in the role of the market mechanism, the price of inter—regional element will be gradual convergence, and regional disparity can disappear automatically. The economic theory of uneven development think that in the role of the market, the economic development will depend on the non—balanced regional development, the development of the regional economy should be according to the law of non—balanced development of the regional economy, focused, clear level of development, rather than balanced distribution and coordinated development. As the development and changing of international economy, economic integration of the world and regional economy grouping have already become two main characteristics of international economy. The western scholar has introduced relevant concrete models to analyse the location theory, having adopted some new research approaches and means, and a new discipline——New Economic Geography has appeared. New economic geography has assembled and carried on the new discussion with the characteristic of economic integration and rule of development to the regional industry in the theory field.The situation of European Union's regional unbalance development is the existing problem all the time; influence the development of European Union. When European Community was established in 1958,"Rome treaty"stipulated that took various kinds of measures to reduce and gradually eliminate the imbalance in regional development. With the development of integration, the questions, such as the regional gap in the community and the decline of old industrial area, etc. are outstanding day by day. European Community set up the European Regional Development Fund and Regional Policy Committee in 1975, and began to plan assistance to the development of backward areas. European Union has established Structural Fund and Cohesion fund to support the economic development of the backward areas and solve the issue of"problem area". In the 1990s, EU regional policy system is basically formed. EU regional policy tools include: Structural Fund, Cohesion Fund, the financial instruments, administrative measures. At present, the EU's eastern enlargement is the greatest challenge of EU regional policy. Facing the huge economic gap between 12 new Central Eastern European members countries and 15 existing members,EU have to help raise its level of economic development before the Central Eastern European countries joining in EU. EU regional policy needs to expand the scope of assistance, and improve the level of assistance. EU regional policy must undergo the new reform.The main study object of this article is Cohesion Fund. Cohesion Fund is the one of main measures which carries out EU regional policy, and provide assistance for the members which the per capita GDP level is less than 90 per cent of the Community's member states. Cohesion Fund is the recipient of Greece, Spain, Portugal, Ireland, and only provides the financial assistance for the environment and the important transportation infrastructure project. Cohesion Fund reduced disparities of the economic development level, raised the rate of economic development, strengthen the construction of infrastructure facilities, increase the number of per capita GDP, and improve the employment problem. Greece, Spain, Portugal and Ireland which are the four poorest members before EU's eastern enlargement have obtained the distinct improvement in the economy. Ireland is the most prominent, and has become one of the wealthiest countries in Europe. EU's eastern enlargement makes Cohesion Fund to adjust strategy, to increase the number of recipient countries, and to improve the assistance efforts further.Since European Union implemented the regional policy, EU have made certain effect in promoting economic growth and social development, solving the problem of unemployment and creating the employment opportunity for the backward countries and regions, especially have narrowed the disparity between relatively backward member in the north state and the richer member in the south state effectively. It has played an important role in strengthening the social cohesiveness of European Union, guarantee the existence and development of European integration. The economic globalization requires EU increased the assistance, and carried out decentralization management of Structural Fund, in order to mobilize the enthusiasm of governments better, strengthening the EU whole international competition ability. EU's eastern enlargement requires more resources allocated to the EU regional policy, reforming the existing regional policy, expanding its assistance to the new member and finding a new balance between the new members and the existing members at the same time, increasing the efficiency of Funds, drawing up the assistance policy which is closer to the reality.The EU Regional Policy has accumulated abundant experience on the issue that solves regional development gap, economic growth and employment, etc... Through the study on Cohesion Fund and EU Regional Policy, we can receive helpful experience enlightenment. First, a clear regional policy. The regional policy is the main tool of the government to interference the regional economic development and to coordinate the regional economy relation. It is an important component of government's public policy, is the result that the economic space pattern developed into certain stage, it has extremely important directive significance to the development of the regional economy. Second, the regional policy should have abundant financial support. The financial support of Structural Fund and Cohesion Fund is the key that EU regional policy is implemented smoothly. With the development of European integration, Structural Fund and Cohesion Fund will gradually expand assistance to the backward region. Third, the regional policy should have perfect system foundations. It is especially important to devote more efforts to supervising and auditing. EU regional policy formulation, implementation, monitoring, evaluation and other links have enacted strict system. It ensure that the norm of regional policy fund application. Fourth, strengthen the investment in infrastructural construction. Cohesion Fund only provides funds for the environment and transport infrastructure projects. The investment in infrastructural construction is the current way that the economy is developed rapidly.