The Sixth Periodic Report on the social and economic situation and development of regions in the EU was published by the European Commission at the beginning of 1999. It was produced with extensive assistance from Alphametrics, working closely with Applica sprl, a sister company based in Brussels.

The two companies also collaborated on the Fifth Periodic Report in 1994, and the First Report on Economic and Social Cohesion in the European Union, published at the end of 1996.

Analysis of regional disparities
The report examines the extent of disparities in GDP per head and unemployment across the EU and how this changed over the 1990s. It finds that whereas the gap in GDP per head between the stronger and weaker regions seems to have narrowed over the past 10 years or so when assistance from the Structural Funds to support lagging regions has been expanded markedly, large differences remain in rates of unemployment. Although while there has been some catching up of productivity in the weaker regions, this has not yet been translated into an increased rate of employment growth.

Understanding the causes
Analysis of the causes of regional disparities in economic performance points to the importance of establishing a favourable structure of economic activity, a capacity to innovate, good communication links and a well-educated and trained work force in weaker regions, but also efficient public administration, effective business support services and extensive social facilities. As the report notes, the success of Northern Italy and the lagging development of the South cannot be explained simply in terms of the structure of economic activity, accessibility or education levels. It, therefore, calls for a long-term strategy to build up the social capital of lagging region – their business culture, administrative structure, institutional relationships and so on – in parallel with their physical infrastructure, the skills of the work force and the productive base.

Central and Eastern Europe
The report also examines regional developments in Central and Eastern Europe, where there has been some recovery of both output and employment after the initial deep recession following the collapse of the previous system of centrally-planned production and trade, but where the growing prosperity of urban centres and a number of Western regions bordering the EU contrasts with the acute problems faced in agricultural and industrial regions where large-scale job losses have occurred. It notes that while most countries have yet to develop regional policies and have accorded priority to macroeconomic stabilisation, there is increasing realisation of the need for structural measures to address regional disparities.

The text, maps, graphs and tables of the report are available in PDF format at the Directorate-General for regional Policy site.