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Impact of European Structural Funds on Greek Economy

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Impact of European Structural Funds on Greek Economy
The Impact of the European Structural Funds on the Greek Economy

Professor Hugh McDonald
21 February 2007

Abstract:

Despite of the tremendous amount of public aid to poor regions, relative movements in the distribution of income, labor productivity and employment rates across European regions show no positive relation with the distribution of the Structural Funds. Greece has been receiving structural funds from the European Union in accordance with the first objective and the community initiatives. The main reason behind these funds is the upgrade and development of the Greek economy and other poor regions in the EU like Spain, Portugal and Ireland. However, the success of these funds is debatable, especially in the case of Greece. Nevertheless, improvement has been made since Greece’s entrance to the European Monetary Union, albeit not as much as desired or planned.
Introduction:

“Eccentric millionaires, intent on disinheriting their children, subscribe to the idea that being given large wads of money is bad for you”[1].This quote states that poorer European nations manipulate the European structural funds and have no initiative to work harder towards improvement. Instead, they rely on the European Aid and in some cases politicians keep large amounts of the aid for personal purposes, by stealing from the government.
Two hundred and twenty seven billion dollars or two hundred and thirteen billion euros are being sent to the impoverished parts of the European Union annually, to enhance economic equality and equity among the European Union Members. These funds are called structural funds. It is suggested that these funds are making Europe worse off and in particular Greece, instead of helping the European nations to improve and become developed.
Consequently, this paper will attempt to examine whether the structural and cohesion funds sent to Greece have been used efficiently. I intend to examine whether the Greek economy


References: 1) “Drowning in a sea of structural funds.” Economist.com 27 Mar. 2006. 2) The European Union Homepage. “The European Structural Funds:” “A Solidarity Policy.” 13 Oct. 2005 .
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