Cohesion and Competitiveness in CEE
The Impact of EU Cohesion and Development Policies on the Competitiveness and Energy Transition in Central and Eastern Europe
Copyright (c) 2025 Navracsics Tibor, Taraczközi Anna

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Absztrakt
The admission of Central and Eastern European (CEE) countries to the European Union (EU) caused significant economic growth, yet achieving sustained competitiveness within the EU continues to present difficulties. The paper analyses the competitiveness of CEE economies within the EU context, emphasising the effects of EU cohesion and development policies, energy transition initiatives and developments in digital infrastructure. This work examines the distinct economic and structural issues confronting CEE nations, utilising ideas from major EU papers such as The Future of European Competitiveness (Draghi Report), Much More than a Market (Letta Report) and the Ninth Cohesion Report. Particular attention is given to energy dependency, regional digital divides and the socio-economic impact of green transitions on traditionally coal-reliant economies.
Our analysis utilises statistical data – such as GDP growth, renewable energy adoption rates and digital readiness scores – to evaluate policy effectiveness. Statistical analyses of NUTS-2 areas in Hungary and Poland reveal regional disparities, emphasising the relationship between EU funding allocations and improvements in economic indicators such as internet accessibility and renewable energy adoption. Findings indicate that centralised governance structures and regional variations in CEE nations limit the effectiveness of EU initiatives, highlighting the necessity for localised, adaptable approaches in cohesion policy. This study adds to ongoing policy debates on the competitiveness of CEE countries by highlighting key areas where strategic investments can help create a more cohesive and sustainable Single Market with a view to the corresponding role of EU funding programmes.
Kulcsszavak:
Hivatkozások
BALASSA, Béla (1961): The Theory of Economic Integration. London: Routledge. Online: https://doi.org/10.4324/9780203805183
BARCA, Fabrizio (2009): An Agenda for a Reformed Cohesion Policy. A Place-Based Approach to Meeting European Union Challenges and Expectations. Independent report prepared at the request of the European Commissioner for Regional Policy, Danuta Hübner.
BARRO, Robert J. – SALA-I-MARTIN, Xavier (1992): Convergence. Journal of Political Economy, 100(2), 223–251. Online: https://doi.org/10.1086/261816
BECKER, Sascha O. – EGGER, Peter H. – VON EHRLICH, Maximilian (2012): Too Much of a Good Thing? On the Growth Effects of the EU’s Regional Policy. European Economic Review, 56(4), 648–668. Online: https://doi.org/10.1016/j.euroecorev.2012.03.001
BIBRI, Simon E. – KROGSTIE, John (2017): Smart Sustainable Cities of the Future: An Extensive Interdisciplinary Literature Review. Sustainable Cities and Society, 31, 183–212. Online: https://doi.org/10.1016/j.scs.2017.02.016
BÖHRINGER, Christoph – RUTHERFORD, Thomas F. (2008): Combining bottom-up and top-down in energy policy modeling. Energy Economics, 30(2), 574–596. Online: https://doi.org/10.1016/j.eneco.2007.03.004
BÖHME, Kai – REDLICH, Sina (2023): The Territorial Agenda 2030 for Places and a More Cohesive European Territory? Planning Practice & Research, 38(5), 729–747. Online: https://doi.org/10.1080/02697459.2023.2258029
BOLDRIN, Michele – CANOVA, Fabio (2001): Inequality and Convergence in Europe’s Regions: Reconsidering European Regional Policies. Economic Policy, 16(32), 206–253. Online: https://doi.org/10.1111/1468-0327.00074
CASTELLS, Manuel (2000): The Rise of the Network Society. Hoboken: Blackwell Publishers.
Council of the European Union (2024): The Budapest Declaration. Online: https://www.consilium.europa.eu/en/press/press-releases/2024/11/08/the-budapest-declaration/
DIJKSTRA, Lewis – GARCILAZO, Enrique – MCCANN, Philip (2015): The Effects of the Global Financial Crisis on European Regions and Cities. Journal of Economic Geography, 15(5), 935–949. Online: https://doi.org/10.1093/jeg/lbv032
EDERVEEN, Sjef – GORTER, Joeri – DE MOOIJ, Ruud – NAHUIS, Richard (2002): Funds and Games. The Economics of European Cohesion Policy. The Hague: CPB Netherlands’ Bureau for Economic Policy Analysis.
Energynomics. (2024). Lack of internet access in rural areas is both a problem and an opportunity. Online: https://www.energynomics.ro/en/lack-of-internet-access-in-rural-areas-is-both-a-problem-and-an-opportunity/
ESPON (2017): Territorial Futures: Thinking and Shaping the Future of the European Territory. ESPON EGTC. Online: https://www.espon.eu/territorial-futures
European Commission (2020): Territorial Agenda 2030: A Future for All Places. Online: https://territorialagenda.eu/
European Commission (2021): Cohesion Policy 2021–2027. Online: https://ec.europa.eu/regional_policy/2021-2027_en
European Commission (2023a): EU Regional Competitiveness Index 2.0. Online: https://doi.org/10.2776/46106
European Commission (2023b): Rule of Law Report 2023: Hungary and Poland. Online: https://ec.europa.eu
European Commission (2024a): The Future of European Competitiveness: In-depth Analysis and Recommendations (Draghi Report). European Commission Directorate-General for Economic and Financial Affairs. Online: https://commission.europa.eu/topics/strengthening-european-competitiveness/eu-competitiveness-looking-ahead_en
European Commission (2024b): Much More than a Market: Speed, Security, Solidarity (Letta Report). European Commission Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs. Online: https://www.consilium.europa.eu/media/ny3j24sm/much-more-than-a-market-report-by-enrico-letta.pdf
European Commission (2024c): Ninth Cohesion Report on Economic, Social, and Territorial Cohesion. European Commission Directorate-General for Regional and Urban Policy. Online: https://ec.europa.eu/regional_policy/information-sources/cohesion-report_en
European Commission (s. a.): The Just Transition Mechanism: Supporting a Fair Green Transition. Online: https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/finance-and-green-deal/just-transition-mechanism_en
European Council on Foreign Relations. (2023). From coal to consensus: Poland's energy transition and its European future. Online: https://ecfr.eu/publication/from-coal-to-consensus-polands-energy-transition-and-its-european-future/
European Parliament (2023): Reforming EU Cohesion Policy: Challenges and Opportunities. European Parliamentary Research Service. Online: https://www.europarl.europa.eu/thinktank/en/document/EPRS_BRI%282023%29753948?utm_source=chatgpt.com
Eurostat (2022): Real GDP Growth Rate [nama_10_gdp, nama_10_pc]. Online: https://doi.org/10.2908/TEC00115
Eurostat (2023): Purchasing Power Parities and GDP per Capita [prc_ppp_ind]. Online: https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Purchasing_power_parities_and_GDP_per_capita_-_flash_estimate
Eurostat (2024): Renewable Energy Statistics [nrg_ind_ren]. Online: https://doi.org/10.2908/NRG_IND_REN
Government of Hungary (2015a): Modern Cities Program. Online: https://kormany.hu/dokumentumtar/modern-varosok-program
Government of Hungary (2015b): Digital Welfare Program. Online: https://digitalisjoletprogram.hu/
HUBER, Joseph (2000): Towards Industrial Ecology: Sustainable Development as a Concept of Ecological Modernization. Journal of Environmental Policy and Planning, 2(4), 269–285. Online: https://doi.org/10.1080/714038561
HUNTER, Alison (2023): Addressing Cohesion Policy’s Identity Crisis in a Changing European Union. Discussion Paper. European Policy Centre. Online: https://www.epc.eu/en/publications/Addressing-Cohesion-Policys-identity-crisis-in-a-changing-European-Un~4e645c
IEA (2022): World Energy Outlook. International Energy Agency. Online: https://www.iea.org/reports/world-energy-outlook-2022
IEA (2023): World Energy Outlook. International Energy Agency. Online: https://www.iea.org/reports/world-energy-outlook-2023
KRUGMAN, Paul (1991): Geography and Trade. Cambridge, Mass.: The MIT Press.
LEONARDI, Robert (2006): Cohesion in the European Union. Regional Studies, 40(2), 155–166. Online: https://doi.org/10.1080/00343400600600462
Ministry of Innovation and Technology (2022): Hungary’s National Energy and Climate Plan. Online: https://energy.ec.europa.eu/system/files/2022-08/hu_final_necp_main_en.pdf
Ministry of Development Funds and Regional Policy (2021): Regional Development Strategies in Poland. Online: https://www.funduszeeuropejskie.gov.pl/
Ministry of Digital Affairs (2014): Digital Poland Operational Program 2014–2020. Online: https://www.funduszeeuropejskie.gov.pl/strony/o-funduszach/dokumenty/operational-programme-digital-poland-for-2014-2020/
National Fund for Environmental Protection and Water Management (2018): Clean Air Program. Online: https://czystepowietrze.gov.pl/
PINDYCK, Robert S. (1979): The Structure of World Energy Demand. Cambridge, Mass.: The MIT Press.
PORTER, Michael E. (1990): The Competitive Advantage of Nations. New York: The Free Press.
RODRÍGUEZ-POSE, Andrés – KETTERER, Tobias (2020): Institutional Change and the Development of Lagging Regions in Europe. Regional Studies, 54(7), 974–986. Online: https://doi.org/10.1080/00343404.2019.1608356
SACHS, Jeffrey D. (2015): The Age of Sustainable Development. New York: Columbia University Press.
SCHWAB, Klaus (2016): The Fourth Industrial Revolution. World Economic Forum.
Science Business (2024): New Survey Unveils Hidden Costs of EU–Hungary Tussle over Research Funding. Online: https://sciencebusiness.net/news/horizon-europe/new-survey-unveils-hidden-costs-eu-hungary-tussle-over-research-funding
SOLOW, Robert M. (1974): The Economics of Resources or the Resources of Economics. The American Economic Review, 64(2), 1–14. Online: https://doi.org/10.1057/9780230523210_13
SZEMZŐ, Hanna – GERŐHÁZI, Éva – GERTHEIS, Antal – FÜLÖP, Orsolya – MAGYAR, László – ÁMON, Ada (2020): The Energy Transition in Central and Eastern Europe. The Prince of Wales’s Corporate Leaders Group. Online: https://www.corporateleadersgroup.com/system/files/documents/cee-energy-transition-report.pdf
TOADER, Elena – FIRTESCU, Narcis Bogdan – ROMAN, Angela – ANTON, Sorin Gabriel (2018): Impact of Information and Communication Technology Infrastructure on Economic Growth: An Empirical Assessment for the EU Countries. Sustainability, 10(10), 3750. Online: https://doi.org/10.3390/su10103750
United Nations Development Programme (UNDP) (2023): Strengthening Energy Governance Systems: An Energy Governance Framework for a Just Energy Transition. Online: https://www.undp.org/publications/strengthening-energy-governance-systems-energy-governance-framework-just-energy-transition
Further reading
ARTELARIS, Panagiotis – MAVROMMATIS, George (2020): Territorial Cohesion as a Policy Narrative: From Economic Competitiveness to ‘Smart’ Growth and Beyond. Social Inclusion, 8(4), 208–217. Online: https://doi.org/10.17645/si.v8i4.3336
BENTLEY, Gill – PUGALIS, Lee (2014): Shifting Paradigms: People-Centred Models, Active Regional Development, Space-Blind Policies, and Place-Based Approaches. Local Economy, 29(4–5), 283–294. Online: https://doi.org/10.1177/0269094214541355
DIEMER, Andreas – IAMMARINO, Simona – RODRÍGUEZ-POSE, Andrés – STORPER, Michael (2022): The Regional Development Trap in Europe. Economic Geography, 98(5), 487–509. Online: https://doi.org/10.1080/00130095.2022.2080655
DHÉRET, Claire (2011): What Next for EU Cohesion Policy? Going “Beyond GDP” to Deliver Greater Well-Being. EPC Policy Brief, March 2011. Online: https://www.epc.eu/content/PDF/2011/What_next_for_EU_Cohesion_Policy.pdf
DIJKSTRA, Lewis – POELMAN, Hugo – RODRÍGUEZ-POSE, Andrés (2020): The Geography of EU Discontent. Regional Studies, 54(6), 737–753. Online: https://doi.org/10.1080/00343404.2019.1654603
European Commission (2017): Competitiveness in Low-Income and Low-Growth Regions: The Lagging Regions Report. Commission Staff Working Document. Online: https://ec.europa.eu/regional_policy/en/information/publications/reports/2017/competitiveness-in-low-income-and-low-growth-regions-the-lagging-regions-report
European Court of Auditors (2022): EU Cohesion and Recovery Fund Allocation and Monitoring. Online: https://eca.europa.eu
Reuters (2023): EU holds up Hungary's recovery money in rule-of-law standoff. Online: https://www.reuters.com/article/business/eu-holds-up-hungarys-recovery-money-in-rule-of-law-standoff-idUSKBN2EI1ES/