REGIONALNA OBILJEŽJA I SPECIFIČNOSTI U EVROPSKOJ UNIJI / REGIONAL FEATURES AND PECULIARITIES OF THE EUROPEAN UNION

Abstract

The main task of regional policy is helping the less developed regions. Help is, in theory, as a function of their development, which should align the overall development of the European Union. Regional policy should help those regions that are poorly qualified for the competition. It is counter-influence the results arising from the common market and monetary union. In this paper, the terms "regional policy" and "cohesion policy" are used interchangeably. Regional policy includes elements of the social and agricultural policies. Regional policy in the narrow sense refers to the reduction of regional disparities and renewal of old industrial areas. General justification for the funds that are allocated underdeveloped regions found in the poor functioning of the neoclassical model in terms of the real world. Neoclassical model assumes that under ideal conditions, there is no theoretical need for any regional aid for the underdeveloped regions themselves to attract investment because the rate of return of these was significantly higher than the rates in the developed regions of the saturated capital. In the situation when adapting to market changes and a perfect place with no cost, it could very well be so. Small population, fiscal weakness, unskilled labor, peripheral geographical location, poor local politics, corruption and many other factors have made no automatic adjustment of underdeveloped regions developed. In order to eliminate imperfections, resorted to the distribution of funds through funds of regional policy. The regional policy of the European Union have the strongest influence Council of Ministers and the Commission, and not, say, the CoR. As with other issues, and when it comes to regional politics CoR has only a consultative role.