1. Cohesion Policy
The reduction of economic and social disparities between richer and poorer regions.
Enlargement increases disparities
European Regional Development Fund
Integrated Mediterranean Programs
Delors: ‘regional disparities can become permanent source of political confrontation.’
Single European Act –cohesion becomes a fundamental objective

2. Cohesion Policy 1988 reform (Delors 1 package):
Double structural funding
Economic development
Principles of additionality and partnership
Concentrated on specific objectives
Promotes regionalism in Europe.
1992 Delors II package: increases structural funding
Enlargement to Central and Eastern Europe
Effectiveness of cohesion policy
Ireland versus Greece

5. Turkey and Cohesion Policy
Pre-accession instruments. Development projects in many regions of Turkey.

6. Source: Zeynep Özler (EU specialist- İktisadi Kalkınma Vakfı), Kriter Türkiye- AB İlişkileri Haber- Yorum Dergisi, December2006, Issue 6, Page 46.

7. Top 10 Most Developed Areas in the EU
Top 10 Least Developed Areas in the EU
1. Inner London (Britain)
315
1. Lubelski (Poland) 32
2. Brussels (Belgium)
235
2. Podkarpackie (Poland) 33
3. Luxembourg (Luxembourg)
213
3. Warminsko - Mazurski (Poland) 34
4. Hamburg (Germany)
188
4. Podlaski (Poland) 35
5. Paris (France)
176
5. Swietokrzyskie (Poland) 36
6. Vienna (Austria)
173
6. Eszak Magyaroszag (Hungary) 37
7. Berkshire, Buckingshire, Oxfordshire (Britain)
162
7. Upolskie (Poland)
8. Autonomous Bolzano state (Spain)
160
8. Eszag-Alföld (Hungary) 38
9. Stockholm (Sweden)
158
9. Vichodne Slovensko (Slovakia) 39
10. Oberbayern (Germany)
10. Latvia
TURKEY
11. TR42 (Kocaeli, Bolu, Sakarya, Yalova, Düzce) 53
11. TRB2 (Van, Muş, Bitlis, Hakkari) 10
According to the PPP (EU-25=100)
Source: Zeynep Özler (EU specialist- İktisadi Kalkınma Vakfı), Kriter Türkiye- AB İlişkileri Haber- Yorum Dergisi, December2006, Issue 6, Page 47.

8. Economic Policy Coordination
2000 Lisbon Strategy:
To become the most competitive and dynamic knowledge-based economy in the world capable of sustaining economic growth with more and better jobs and greater social cohesion.
Broad Economic Policy Guidelines, since 2003
Multilateral surveillance of member state economic performance
2005 Mid-term Review of Lisbon Strategy
Not sound performance, Lisbon strategy simplified and relaunched.
Emphasis on social and environmental pillars
Lisbon Strategy replaced by EU 2020 strategy in June 2010
Guide Europe’s economy our of recession
Smart growth, sustainable growth, inclusive growth

9. The 5 targets for the EU in 2020
1. Employment
75% of the year-olds to be employed
2. R&D / innovation
3% of the EU's GDP (public and private combined) to be invested in R&D/innovation
3. Climate change / energy
greenhouse gas emissions 20% (or even 30%, if the conditions are right) lower than 1990
20% of energy from renewables
20% increase in energy efficiency
4. Education
Reducing school drop-out rates below 10%
at least 40% of 30-34–year-olds completing third level education
5. Poverty / social exclusion
at least 20 million fewer people in or at risk of poverty and social exclusion

10. Single Market Continuous process 1992 Program
Removing physical barriers
Free movement of goods
Free movement of people
Removing technical barriers
Standards, testing, and certification
Movement of capital
Public procurement
Free movement of labor and professions
Free movement of financial services
Transport
New technologies
Company law
Intellectual property
Company taxation

11. Single Market 1992 Program (cont.) Beyond 1992
Removing fiscal barriers
Value-added tax
Excise tax
International trade
Beyond 1992
Transition periods and derogations
Liberalization of energy and telecommunications
Transposition into national law
The proliferation of new trade barriers.
Services directive (2005)

12. Single Market Act 2012 12 Levers to Boost Growth
Access to Finance for SMEs
Mobility for Citizens
Recognizing professional qualifications- European professional card
Intellectual Property Rights –a single European patent
Consumer empowerment
Services
Networks: energy and transport infrastructures
Digital single market
Social entrepreneurship –cooperatives
Taxation –energy taxes
Social cohesion
Business environment
Public procurement

13. Competition Policy
Instrument of economic reform in order to boost competitiveness and growth
Antitrust regulation
Mergers
State aid
Regulated industries
Independence of commission
International dimension

14. Microsoft and EU Competition Policy
March 2005, EU orders Microsoft to pay 497 million euros
Microsoft pays the fine and appeals the decision in the European Court of First Instance
In 2005 and 2006, additional fines for not fully complying with the ruling.
In 2007, Microsoft loses the case and announces it will not appeal anymore
In 2008, EU fined Microsoft 899 million euros for failure to comply with the decision. Microsoft lodged an appeal.

15. Financial Crisis and EU Competition Policy
State aid to financial institutions
Exceptional circumstances: state aid is allowed to correct for a serious disturbance that affects the entire economy of a member state.
Tension between short-term financial stability and medium-term competition.
State aid to real economy
Temporary Framework enabling member states to adopt new support measures until 2010
Opel, Renault

16. Turkey and Competition Policy
Requirement of Customs Union agreement
Competition Agency –successful in anti-trust cases
Insufficient development in state aids
Regional rather than sectoral subsidies