(Extended) Abstract

The main subject of this study is the impact of the European Union’s Cohesion Policy on the regional disparities observed across its Member States. The analysis examines the effectiveness of the Cohesion Policy in reducing regional inequalities in the EU overall and specifically in sectors of Research & Innovation, Competitiveness and Digital Transformation since 2014. In addition, it investigates the impact of Cohesion Policy in Greece and its regional units. To explore these issues, a literature review was conducted, focusing on key concepts, such as regional economic policy and economic development, the EU as a case study for achieving economic & social cohesion and the implementation of Cohesion Policy in Greece. To better understand the case of Greece, data was collected through a qualitative research approach. Findings indicate that regional disparities persist within the EU and tend to widen during periods of economic crises. Despite overall growth in all EU regions, growth rates differ significantly by region and especially by country, with more developed regions responding more effectively to cohesion policies and demonstrating greater resilience in times of crisis. Since 2014, the Cohesion Policy has contributed to a reduction in disparities and it is attended to continue. However, the reduction is not yet sufficient to suggest a fully integrated European economy. In the examined policy areas-Research & Innovation, Competitiveness and Digital Transformation- the trend reflects economic development but not regional convergence. The Greek economy is more vulnerable to economic crises and, despite receiving substantial financial support, continues to struggle to achieve the desired growth rates and close the gap with the rest of Europe.

JEL Classifications: R11, O18, O52.

Keywords: Regional Inequalities, Economic Development, European Union, Cohesion Policy, Greece