The causes of inequality

Regional policy

The EU may be one of the richest parts of the world, but there are large differences in prosperity levels both between countries and inside individual countries. The wealthiest country, Luxembourg, is more than seven times richer than Romania and Bulgaria, the poorest and newest EU members.

However, the dynamic effects of EU membership, coupled with a vigorous and targeted investment policy, can bring results.

Solidarity and cohesion

Regional fund spending by activity © EU

EU regional policy aims to:

· help each region achieve its full potential

· improve competitiveness and employment by investing at regional level in areas of high growth potential, with an added value for the EU as a whole

· bring living standards in the countries that have joined the EU since 2004 up to the EU average as quickly as possible.

The causes of inequality

Regional inequalities can be due to many factors, including:

· longstanding handicaps imposed by geographic remoteness or sparse population

· more recent social and economic change

· the legacy of formerly centrally-planned economic systems

· combinations of these and other things.

The impact of these disadvantages is frequently evident in:

· social deprivation

· poor-quality schools

· higher levels of unemployment

· inadequate infrastructure.

Romanians benefiting from regional funding © DG REGIO

Regional policy is about investing in people.