Cohesion Policy 2007-2015: The RHOMOLO assessment

The European Cohesion Policy 2007-2015 was implemented in challenging times due to the economic and financial crisis and widespread cuts to public investment. Cohesion Policy has been used to reach objectives related to employment, R&D, energy sustainability, education, and poverty and social exclusion. Policy simulations using the RHOMOLO dynamic CGE model show positive macro-economic effects of the policy at the EU level, with significant differences between less developed regions, transition regions, and more developed ones. Cohesion Policy funds mainly targeted the less developed regions which received 60% of the total investments, while transition regions and more developed ones received 24% and 16% of the total, respectively. RHOMOLO simulations estimate the long-run GDP impact of Cohesion Policy to be equal to +0.7% at the EU level, with peaks in some less developed regions above +5%. The cumulative multipliers associated with the Cohesion Policy funds are above one in most EU regions by 2030.