This research tells that the main instruments for the Cohesion Policy are several structural funds: The European Social Fund (ESF), European Regional Development Fund (ERDF) and others. These instruments are needed because poorer member states do not have the funds available to support economic growth within their regions. By joining the European Union, and abiding by the policies of the EU, they make themselves eligible for financial assistance from the other member states. According to Floriana Cerniglia “ a distributive policy is one which benefits the citizens of one district or jurisdiction, but whose costs are borne by citizens of all districts” .
All European Union member states benefit from distributive politics because it moves money to poorer states that need the funds to continue to build their infrastructures. The poorer states benefit from the economic influx of monies while the richer member states benefit from having an improved transportation network to get their goods to market as well as to new markets created by the integration of poorer states into the EU. This creates a win-win situation where all members of the EU benefit in one way or another.
Distributive Politics can create economic and political stability within the region because all member states benefit from its implementation. There are distributive economic consequences. The compliant member states end up expending funds to bring into compliance the newer member states and not seeing a return on the investment for some time. Side payments consist of monies moved from richer EU member states to poorer member states. This redistribution of funds is not done arbitrarily. Member states must meet specific criteria to qualify. The recipient states can use these funds to upgrade their transportation networks and meet environmental objectives.
The main objectives of side-payments are to spur economic growth, employment, social equity, and to build solidarity within the EU. The Maastricht treaty of 1992 put into effect policies that encourage the side-payments. Side-payments infuse money into poorer sectors of the “ one market” economy.
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