Summary

The Cohesion Policy financed by the Community budget is beneficial for all the Union’s Member States. In the medium and long term, it facilitates a process of real convergence with the poorest countries and regions, although it also offers some important competitive advantages to the wealthiest members of the Union. However, if regional policies are not accompanied by the necessary structural reforms, there is a risk that subsidies will become the main source of income for extensive sections of the population on a permanent basis, thus perverting the nature and purpose of these funds.