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Inclusive Growth and Poverty in the context of EU Funding

In 2012, 25% of the EU28 population were at risk of poverty or social exclusion, corresponding to around 125, 3 million persons. The highest shares were recorded in Bulgaria, Romania and Latvia (36- 49%), while the lowest shares were in the Netherlands, Czech Republic and Austria (15-17%). Compared to 2010, in EU28 the level of poverty rose from 23, 7%. EUROPE 2020 and related EU policies, especially the Cohesion policies, are set to promote inclusive growth. In this respect it is essential to develop active inclusion strategies to underpin employment measures, improve education levels and ensure access to lifelong learning, boost sustainable and adequate social protection, as well as social inclusion policies (child care, access to labour market etc.). In Member States with high levels of poverty, the crucial problem is connected with macro-economic, administrative and financial absorption deficiencies. Although they need the greatest financial support for the restructuring of their economies. Absorption capacity stands for the degree in which a country is able to effectively and efficiently spend the financial resources from the Structural & Cohesion Funds. Thus, linking EU funds to Europe 2020 priorities (such as the Inclusive Growth) and supporting social innovation should enhance effectiveness, meaning a higher level of economic, social and territorial cohesion in the EU. In this respect, Western Balkan countries, as possible MS of the EU, should give special attention to the particularly vulnerable categories and invest in human capital & demographic renewal. So, the use of EU funding (for 2014-2020, the Commission has proposed a financial allocation of € 14.1 billion to 'IPA II' projects) should be encouraged on regional projects, the integration of former refugees & the reconciliation. Also, a very important factor is the improvement of the business & administrative environment, which should boost competitiveness.

Poverty and social exclusion; Cohesion policies; EU Funding; Inclusive Growth; Absorption capacity

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