Promoting Regions, Strengthening Trust?

19.07.2019

Cohesion Policy and EU Scepticism – Lecture and Statement by WIFO Economist Bachtrögler at Europe Club Vienna

On 9 July 2019, the Austrian Society for European Policy (ÖGfE) and WIFO invited to a panel discussion at the House of the European Union in Vienna. WIFO economist Julia Bachtrögler presented the study "EU Scepticism and European Regional Policy" and discussed the results with a renowned panel.

Can trust in the EU be strengthened by European regional funding? Under the direction of "Der Standard" journalist Gerald Schubert, Bachtrögler debated the issue with Judit Varga (Hungarian State Secretary for EU Affairs), Sonja Puntscher-Riekmann (Professor of European Politics) and Kai Stryczynski (European Commission, Directorate-General for Regional and Urban Policy).

The presentation of a recent WIFO study by Julia Bachtrögler and Harald Oberhofer, which deals with the question of whether European regional policy can influence the approval of pro-European or Eurosceptic parties, served as an input for the discussion. The starting point for this analysis was the increased approval rates for eurosceptic parties in EU countries in recent years and the observation that the proportion of eurosceptic voters often varies significantly between regions within a country. According to existing analyses, the economic situation in a region, demographic factors and population density are likely to play a role.

EU regional policy aims to increase the economic development, competitiveness and attractiveness of European regions and cities. By means of targeted co-financing of projects, regional labour markets, transport, social or cultural infrastructure are to be promoted. Regional policy is thus not only the second largest item in the EU budget but is also designed in such a way that every EU citizen can potentially benefit from it.

Therefore, the question arose whether the level of regional funding paid out in a district or region on the one hand, and its effectiveness on the other, could contribute to reducing the number of votes for Eurosceptic parties. Bachtrögler and Oberhofer examined this question based on the French presidential election in 2017. The empirical results show that both the amount of the funding pot in a département and the extent of the employment increases achieved through the support in the subsidised companies are associated with a lower proportion of votes of the strongly Eurosceptic candidate Marine Le Pen.

Further Information about the event can be found here.

ÖGfE Policy Brief

Op ed in the daily newspaper "Wiener Zeitung"


 

Publications

This study investigates whether there is a link between the successful implementation of European cohesion policy and the voters' attitudes towards the EU. Using the French presidential elections in 2017 as a case study, we do not solely consider regional funds expenditures but also its induced effects in a region as further potential determinant of pro-European or eurosceptic voting behaviour. In order to measure the effectiveness of EU structural funds and Cohesion Fund assignment, firm-level employment effects in French NUTS-2 regions stemming from project allocation during the multi-financial framework 2007-2013 are estimated. The obtained average treatment effects are, in a next step, used together with other regional characteristics to capture the citizens' perceived exposure to the EU in an empirical voting model for the French presidential election in 2017. The estimation results reveal a significant negative relationship between the effectiveness of EU funds allocation and the vote share of the eurosceptic candidate Marine Le Pen.
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Julia Bachtrögler-Unger, PhD

Research groups: Regional Economics and Spatial Analysis
Julia Bachtrögler (© ÖGfE)
Julia Bachtrögler (© ÖGfE)