provide scientific evidence; a prerequisite as no other for improved co-ordination and greater
effectiveness of these policies.
Second, the conclusion seems evident that improved co-ordination would also lead to a more
effective implementation of European financial assistance. This has been confirmed by
representatives of the European Commission. In order to collect more information on the
spatial effects of policies and the potential costs resulting from the non-co-ordination, in 2001
DG Regio commissioned a study of these interdependencies. The study concentrates on the
territorial impacts of the Common Agricultural Policy and the Rural Development Policy, the
Common Transport Policy as well as the Common Environmental Policy. It aptly illustrates
numerous imbalances regarding the allocation of European financial assistance and proposes
that in the future the spatial effects of joint policies be better recognised and that more
effective co-ordination of these policies be facilitated (cp. CEC 2001b, 160).
The recent EU Enlargement has posed substantial additional challenges concerning the
integrative capacity of the Community. Despite the increased duties and responsibilities as a
consequence of this enlargement, member states are unlikely to allocate more funds.
Therefore, a more efficient use of EU Structural Funds will become of great importance. Now
more than ever, European spatial development geared to co-ordination and territorial cohesion
seems the order of the day. By means of such co-ordination, spatially relevant EU sector
policies could be employed in such a manner that, together with the Structural Funds, they
reinforce territorial cohesion.
2.5 The Necessity of Co-ordination against the Background of Competitiveness
The creation of the European Single Market has deeply affected the macrostructure of
European space, by a reallocation of economic resources. The free flow of people, goods,
services and capital has extended and intensified European-wide competition among private
firms as well as among localities. The related processes lead to several changes in European
spatial structures.
A new functional division of labour between regions is evolving. Attracting investors is no
longer only a question of intranational but of Europe-wide competition. Regions with
particular economic advantages and excellent infrastructure are able to attract enterprises from
all over Europe. BENZ is stressing, that “the reallocation of investments in the larger
European context is driven by the opportunities to reduce costs by adequately combining
private and public activities in production clusters and networks.” (Benz 2002, 140). As a
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