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29-03-2012


Which EU-15 countries benefit from the Cohesion Policy implemented in the Visegrad Group countries?

Each net euro invested in Poland, the Czech Republic, Slovakia or Hungary generates 61 cents in the form of additional exports to the countries of the “old” EU (EU-15). The overall value of their benefits will amount to EUR 74.69 billion in the 2004-2015 period.

Key conclusions

On the commission of the Polish Ministry of Regional Development the Institute for Structural Research and Raytech sp. z o.o. conducted an analysis of benefits to the EU-15 countries resulting from the implementation of the Cohesion Policy in the Visegrad Group (V4) countries.

The research effects show that benefits resulting from an increase in exports from the EU-15 countries to the V4 countries, significantly reduces the financing costs of the Cohesion Policy implementation in the latter countries for the countries of the “old” EU. The research also confirms that the entire European Union takes advantage from the development processes and elimination of the development gap of the less developed countries.

The Cohesion Policy was created to ensure economic, social and spatial cohesion of our continent. Identification of the benefits following thereof for the EU-15 countries is significant both from the perspective of the Cohesion Policy usefulness and its implementation costs. The positive impact of the Cohesion Policy on both V4 and EU-15 countries results in the achievement of its assumptions, namely the EU internal integration, thereby contributing to deepening the economic cooperation between the regions, tightening trade between the regions and leading to faster overall development.

Direct benefits

Direct benefits for the EU-15 countries are related to the participation in projects implemented on the V4 territory, e.g. through winning tenders or sales of goods. The direct benefits amount to EUR 8.64 billion (11% of all benefits) and are predominated by two categories of tasks:

  • provision of construction services; 
  • supply of medium and high technology products.

It is estimated that in case of contracts concluded with enterprises from the EU-15 countries construction services in the 2004-2015 period will account for approx. 44% of all funds. Moreover, it is expected that further 44% of the envelope will fall to high and medium-high technology products.

In case of capital channel, as much as 84% of all contracted resources falls to the construction area. This follows from the organisational structure of construction companies, which are often international companies of complex organisational structure.

Indirect benefits

The definite majority of benefits of the EU-15 results from indirect impact through economic development of the V4 countries. The indirect benefits amount to EUR 66.05 billion.

As a result of implementation of numerous EU projects in the V4 countries, the economic growth proceeds faster, which generates additional demand for certain goods and services. Consequently, increased demand results in increased production not only in the given country, but owing to the Community regulations facilitating trade within the EU, the production (exports) grows also in other EU countries.

Moreover, increased demand can occur in certain sectors characterised with different level of technological advancement. Consequently, increased demand can result in intensified trade (exports) between the EU-15 and V4 countries in certain sectors of the economy thereby causing their faster development.

 

Map: Benefits of countries - net payers of the EU-15 after deduction of the costs incurred on the Cohesion Policy implementation in the V4 countries

Which EU-15 countries benefit from the Cohesion Policy implemented in the Visegrad Group countries?

·         Spain, Portugal and Greece are not net payers;

·         in case of Germany, Ireland and Luxembourg the additional value of exports directed at the V4 countries because of the Cohesion Policy implementation therein, is higher than the actual costs of its implementation incurred by these three countries;

·         In case of Ireland the benefits amount to as much as 299%, since its share in policy financing is low while the export is relatively high.

 

Download:

Full report: Evaluation of benefits to the EU-15 countries resulting from the implementation of the Cohesion Policy in the Visegrad Group countries Plik w formacie PDF otwiera się w nowym oknie (2,88 MB)
Report summary Plik w formacie PDF otwiera się w nowym oknie  (271 KB)

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