The relationship between regional policy and regional state aid policy in the European Union and implications for Turkey

Uğurlu, Ülge
The aim of this thesis is to investigate the relationship between regional policy and regional state aid policy in the European Union and to evaluate the implications of this relationship on the transformation of the regional policy approach of both the EU and the member states with specific focus on the implications for Turkish regional policy in the process of EU accession. After providing a critical review of regional policy and regional state aid policy in the EU, this thesis lays out the possible alternatives for regional policy following the enlargement of the Union in 2004. The analysis shows that in the absence of a significant increase in the funding directed to regional policy at the EU level despite an increase in regional disparities and as a result of more strict regulations on regional state aids granted by member states; a trade-off exists, especially for less-prosperous member states, between national growth and reduction of regional disparities. Thus, achieving a proper balance between competitiveness and cohesion in the EU necessitates the coordination of national and EU level funding for regional development. The implications for Turkey is that in order to achieve national convergence with the EU in the short run and to reduce regional disparities in the long run, Turkey needs to revise its regional policy and regional state aid policy as to strategically coordinate national and EU regional policy funding.


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Citation Formats
Ü. Uğurlu, “The relationship between regional policy and regional state aid policy in the European Union and implications for Turkey,” M.S. - Master of Science, Middle East Technical University, 2006.