EU Cohesion Policy in the Iberian Peninsula: main territorial impacts (1986-2013) and challenges for a more efficient new programming period (2014-2020)

Abstract

This paper identifies the main territorial impacts of the EU Cohesion Policy in the Iberian Peninsula, in its first four programming periods (1989-2013). Moreover, it discusses the relevance of the strategy associated with this Policy, the role of the EU funds in promoting a more cohesive territory, and suggests alternative paths to improve its effectiveness and efficiency. In short, our analysis concludes that, despite the high levels of inefficiency, and the lack of an adequate medium-longer term strategic vision to make the most out of the Iberian Peninsula’s territorial capital, the large volumes of funding were crucial in modernizing many territorial infra-structures, and in improving the human capital of both Iberian countries. Yet, overall, the territorial cohesion goal was not achieved during the last couple of decades. Worse still, the continuous negative trade balance which has been characterizing both Iberian economies for a long time, associated with low productivity increases, is illustrative of the existing and persistent structural territorial development constraints. Hence, these need to be tackled in a more effective manner during the next programming period of the EU Cohesion Policy, in order to put the Iberian Peninsula in track with the most developed territories in Europe.