Classifying regions for european development funding

Abstract

Structural and cohesion funds play a prominent role in European Union regional policy, which aims to reduce gaps in development between regions and disparities in well-being between European citizens. The regions and areas eligible for funding — 308,000 million during the 2007—13 period — are chosen according to regional GDP per inhabitant as the variable of reference. Despite the great importance of this indicator, the complex socioeconomic reality of regions cannot be fully explained by means of a single variable. Hence, using the large number of variables on economic, political, cultural and demographic characteristics available at regional level, this article groups European regions into homogeneous clusters. This makes it possible to identify the weak and strong points of each group of regions and to ascertain what type of action should be promoted and, therefore, funded in each region.