Question

There are three sets of possible policy conclusions about European Structural Funds (Euro funds that allocate funds from the European Budget to promote regional cohesion):

1. The European Commission should void transfers to regions where they do not do any good

2. Improve the efficiency of structural funds by prioritising regions that benefit most from transfers

3. Reform the system of transfers

Briefly discuss whether the first two options would benefit the integration process of the European Union.

Answer 1

Ans. There are not just three set of policy. But stucking to the questions, it is important to first know a little bit of history behind EU Integration.

The need of integration was identified after the first world war. Sadly it was followed by Great depression & Second World War and it manifold increased the put a reson in place to avoid War - which was helping none. The union was aimed to help nations needing it most. It was aimed to bring social, economic, industrial & health benefits to the general public at large and put the economical conditions back on track for a self-sustainment. In the light this narration it is quite evident that in order to stick to the overall motive and agenda of the EU integration the supprot has to be withdrawn where it is not of any use or doing good (point 1) and giving the economic support to the region that needs it most (point 2). So having said that the steps enumerated in 1 & 2 would help.