1. GO 357 The Political Economy of Regionalism Walter Hatch Colby College “A Europe of Regions”

2. The EU: integrating nation-states

3. The EU: integrating local governments

4. In Principle Subsidiarity: decisions should be made at the closest practical level to the citizen

5. In reality A Democratic Deficit

6. Regional Policy Treaty of Rome (1957) is designed to promote regional integration … “by reducing the differences existing among the various regions and the backwardness of the less-favored regions.”

7. Structural Funds European Social Fund (ESF) European Social Fund (ESF) European Agricultural Guidance and Guarantee Fund (EAGGF) European Agricultural Guidance and Guarantee Fund (EAGGF) European Regional Development Fund (ERDF) European Regional Development Fund (ERDF) Financial Instrument for Fisheries Guidance (FIFG) Financial Instrument for Fisheries Guidance (FIFG) Cohesion Fund (not a regional fund) Cohesion Fund (not a regional fund)

8. Regions in the EU

9. Why? Maintain cohesion in midst of disparities Maintain cohesion in midst of disparities Germany vs. PortugalGermany vs. Portugal Belgium vs. GreeceBelgium vs. Greece “Sidepayments” “Sidepayments”

10. New Challenges Dramatic income disparity Dramatic income disparity GDP per capita in Luxembourg: $65,600GDP per capita in Luxembourg: $65,600 GDP per capita in Latvia: $6,800GDP per capita in Latvia: $6,800 Dramatic employment disparity Dramatic employment disparity 2% jobless in Warwickshire (UK)2% jobless in Warwickshire (UK) 30% jobless in Reunion (FR) and 23% in Vychodne (Slovakia)30% jobless in Reunion (FR) and 23% in Vychodne (Slovakia)

11. Creating a Monster 1/3 of EU budget 1/3 of EU budget ¾ if CAP included¾ if CAP included Annual budget of about 30 billion euros ($37 billion) Annual budget of about 30 billion euros ($37 billion) Seven-year budget of about 235 billion euros ($290 billion) for 2000- 2006 Seven-year budget of about 235 billion euros ($290 billion) for 2000- 2006 For 2007-2013: 336 billion euros ($413 billion) For 2007-2013: 336 billion euros ($413 billion)

12. Structural Funds Current Budget (2000-06) Billion EUR; commitments in 1999 prices

13. Old Winners and Losers (pre-enlargement) Net winners: Spain, Portugal, Greece Net winners: Spain, Portugal, Greece Net Losers: UK Net Losers: UK

14. New Winners and Losers (post-enlargement) Net Winners: Poland, Malta, Latvia, Estonia, etc. Net Winners: Poland, Malta, Latvia, Estonia, etc. Net Losers: Spain, Portugual, Greece Net Losers: Spain, Portugual, Greece

15. Structural Funds for EU-15 (2000-06) million euros; commitments in 2004 prices

16. France

17. Spain

18. Poland

19. Inter-regional integration

20. Newhouse Wealthy regions Wealthy regions Transnational but not international economic complementaries Transnational but not international economic complementaries Secessionist impulses Secessionist impulses

21. Catalonia

22. Jordi Pujol

23. Padania

24. Umberto Bossi

25. Toward a system of multi-level governance