VOX  CEPR Policy Portal

Regional economic divergence has become a threat to economic progress, social cohesion, and political stability in Europe. Market processes and policies that are supposed to spread prosperity and opportunity are no longer sufficiently effective. This column argues that a different approach to economic development is required – one that would strengthen Europe’s strongest regions, but with new methods and instruments to unleash the economic potential of weaker cities and regions. The approach should be adaptable to the specific characteristics, structures, and challenges faced by different groups of cities and regions.