EU cohesion policy: the debate on Structural Funds

After 15 years of EU cohesion policy, implemented through National Development Plans (NDPs) and Structural Funds (SFs), economists remain divided on interpretations of policy effectiveness. As new member states prepare for the next programme of EU cohesion aid, it is important to review this debate. Two contrasting empirical approaches are distinguished: 'testing' and 'impact quantification'. We examine views of participants in the debate, and the methodologies and tools of economic analysis that are commonly used to support different conclusions. Having surveyed current methodologies, we conclude that none of them are likely to provide a decisive resolution to the debate.