How are regional policies in Europe responding to an ever more complex world?

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The context for regional policy making across Europe is ever more complex and challenging. Long term structural problems are exacerbated by both irreversible transitions and frequent crises – each with significant spatial implications.  The green transition, digital revolution, geo-political instability and economic shifts all present unique spatial vulnerabilities and opportunities across Europe.  Europe-wide discontent at a real, or perceived, sense by regional populations of being ‘left behind’ is increasingly reflected in regional and national ballot boxes.

How are regional policies responding?  This blog summarises key findings from the EoRPA Report “Regional Policy in Europe: No Place Left Behind”, covering recent regional policy analysis in 30 European countries. What is clear is that the principles of a ‘place-based approach’ – including differentiated treatment of different types of region, multi-level coordination and an integrated policy mix – are firmly in evidence in legislative, evaluation and governance-related changes across Europe.

Regional Policy responses: key developments across Europe

Several European countries have introduced new laws and strategies to bolster regional development. Hungary’s new Law on Regional Development introduces new territorial approaches including a focus on functional urban and peripheral areas and a strengthening of mandatory coordination between different levels of government in order to achieve more unified policy implementation. Switzerland has launched a new eight year regional policy Programme for 2024-31 focusing support on rural, mountain and border regions and also introducing measures to mobilise local actors to meet regional and local demand. Finland’s new 2024-27 Regional Development Decision integrates a regional perspective and, for the first time, incorporates comprehensive security concerns into regional policy. Geographically targeted programmes introduced in Poland, Finland and Estonia also reflect the growing impact and importance of security issues in regional policy. Poland also presented a new National Development Concept emphasising territorialisation and improved use of participatory planning.

Is it working? Evaluating policy effectiveness

The challenging context for regional policy makers is increasing the importance of ensuring effective regional policy approaches. Germany published the first Equivalent Living Conditions Report in July 2024 providing comprehensive statistical analysis and public consultation on living conditions across the country to inform spatially targeted policy making. An external evaluation of the national model for regional development in Finland affirmed the importance of a partnership-based approach but highlighted fragmentation across policy areas and responsibilities. In Sweden, government responses to a National Audit Office report require County Administrative Boards to report on the contribution of their activities to regional and rural policy objectives. A public enquiry on regional development and rural policy is also underway to ensure that these policy areas are aligned with current challenges and opportunities. Hungary is fundamentally revising its regional policy framework by 2026 including a new territorial logic in policy planning and implementation, a strengthened institutional system and a new capacity building network to reinforce sub-national skills and management knowledge.

The importance of governance: national institutional changes and decentralisation

Effective governance structures and institutions play a key role in ensuring the effective implementation of regional policy. Several counties have undertaken reforms to improve coordination. Italy, Czechia, Estonia and Hungary have all moved towards closer policy coordination of EU and domestic policy or have introduced mechanisms to ensure the consideration of regional implications in other areas of sectoral policy making.  Decentralisation trends are evident in many countries motivated by goals of economic efficiency, public accountability and local empowerment.  Key reforms include upscaling sub-national governments, greater levels of fiscal decentralisation and the introduction of asymmetric decentralisation with the varied allocation of competencies across time, policy fields, sub-national governments and territories.

Looking ahead: implications for future regional policy in Europe

As Europe grapples with ongoing transitions and crises, the role of regional policy in addressing economic, social, and environmental challenges is more critical than ever. The emphasis on place-sensitive approaches, governance reforms, and targeted investment strategies reflects the renewed political commitment to addressing territorial inequality, particularly in the context of rising popular discontent. Will these measures be enough to ensure no region is left behind? Time will tell. But one thing is certain: the future of Europe’s regions depends on policies that are as dynamic and resilient as the challenges they aim to address.

 

Ruth Downes, Research Associate, European Policies Research Centre, University of Strathclyde, Glasgow, UK