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Socio-economic impact of the Cohesion Fund

The European Commission has published a call for tender for a study on the socio-economic impact of projects financed by the Cohesion Fund in Spain, Portugal, Greece and Ireland. The Cohesion Fund was set up under the Treaty on European Union in order to strengthen economic a...

The European Commission has published a call for tender for a study on the socio-economic impact of projects financed by the Cohesion Fund in Spain, Portugal, Greece and Ireland. The Cohesion Fund was set up under the Treaty on European Union in order to strengthen economic and social cohesion and help the less prosperous Member States meet their obligations relating to the control of budget deficits. The Fund makes financial contributions, at a rate of 80-85% of public or equivalent expenditure, to projects in the fields of environmental protection and trans-European transport infrastructure networks. Under the Regulation concerned the Commission is required to report regularly on the economic and social impact of the Fund in the Member States, and on its contribution to strengthening economic and social cohesion in the EU. The central aim of the study is to help the Commission meet this requirement by recommending and developing a rigorous and systematic method for quantifying the socio-economic impact of Cohesion Fund interventions on the economies concerned, both at an aggregate level and at the level of major individual investments or groups of investments. The study may involve the development of a formal, quantitative economic model (or the adaptation of an existing model) which can be applied in each of the beneficiary countries and which can be used to estimate the impact of Cohesion Fund interventions on key socio-economic variables at the regional and/or national level. Such effects should include the demand impact of investments as well as the medium-term and long-term dynamic, or supply-side, impacts. The model should be capable of being applied equally to both the transport and environment sectors. A thorough investigation of the latest theoretical and empirical research work in the field is required, with full justification being given of the need to develop new approaches to the problem. Any model developed or adapted during the course of the study must be thoroughly tested, and its practical value demonstrated by application to Cohesion Fund investments. Existing data sources must be used as far as possible. The study is intended to examine the overall impact of the projects concerned and will complement more specific sectoral approaches in transport and environment. Requests for invitations to tender should be addressed to: European Commission Directorate H Secretariat General Cohesion Fund Mr. J. F. Verstrynge 200 rue de la Loi B-1049 Brussels Tel. +32-2-2951147/2991111; Fax +32-2-2961096 Telex COMEU B 21877