170 Billion Problems

But Cohesion Ain't One

13 February 2020

Cohesion policy promotes upward social convergence among EU countries. It is well-managed, well monitored and supports quality projects. Unlike tax avoidance and evasion, cohesion funding is a cash flow that works and delivers results.

According to a widely discussed piece in Politico by Clotilde Armand, there is a major fallacy at the heart of the EU’s budget debate, because we do not take into account the cash flow from the East to the West.

Profits of multinational corporations are being shifted, tax bases are eroded and the governments in Central European countries are left with less money to address their societies’ needs.

Clotilde Armand

I will not argue that more money is being shifted than new member states get from cohesion policy as Mrs Armand and Thomas Piketty before her.

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Piotr Arak

Head of the Polish Economic Institute

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