European Social Policy and Regional Development Instruments

Welfare State: European Social Policy

The Welfare State involves a set of measures and actions by which governments assume responsibility for an increasing number of services and benefits (health, education, environment, housing promotion, unemployment insurance, etc.). The aim is to provide all citizens with decent living conditions to ensure their welfare. There are significant differences in implementation between countries north and south of the Union.

Cohesion Fund

The Cohesion Fund is one of the instruments of regional policy that seeks to attenuate regional economic imbalances within Europe. Established by the Maastricht Treaty, its purpose is to reduce disparities between national economies and facilitate convergence (measured in terms of inflation, government deficit, unemployment, foreign debt, etc.) with the least developed countries of the European Union.

Eligibility and Focus

• Only Member States whose per capita GNP was less than 90% of the EU average could benefit.
• Beneficiaries must have a program aimed at fulfilling the conditions of convergence.
• It focuses on projects related to the environment, transport infrastructure, telecommunications, and renewable energy.

Structural Funds

These are the basic instruments of EU regional policy, materialized as financial resources (grants), which aim to reduce disparities between European regions. They are allocated to regions that meet specific objectives:

Structural Fund Objectives

Goal 1

Promote development through the creation of basic infrastructure in those regions whose average GDP per capita is low.

Goal 2

Facilitate the economic and social conversion of agricultural areas, fisheries, or regions facing industrial or urban crisis.

Goal 3

Promote human resources through the adaptation and modernization of policies and systems related to education, training, and employment.

Outermost Regions

These regions face specific disadvantages in achieving economic and social development due to factors such as:

• Distance from the European continent.
• Insularity.
• Reliance on monocultures.
• Generally tropical climate and often volcanic, mountainous soil.
• Proximity to less developed countries and relatively high population density.

Consequently, they receive special aid from the EU to guarantee their development.

Treaty of Maastricht

The Treaty of Maastricht entered into force in 1993. Under this treaty, the European Community became the European Union. It established a timetable for economic and monetary union, defined common foreign and security policy, and promoted cooperation in justice and home affairs.