European policy and the regions: a review and analysis of tensions

This article explores a series of tensions inherent in the series of European policies that are designed to improve the competitiveness of regions in the face of globalization. Its focus is the co-existence of interventionist policies intended to overcome problems of lagging regions such as cohesion policies and those, for example competition policy which are designed to remove barriers to market integration and that are anti-interventionist. Moreover, the changing relationship between the European Union (EU), member states and the regions and problems of how regions are defined complicate policy implementation. To review these issues, the article adopts an agent-centred approach to understanding economic behaviour in the face of globalization in particular geographical and sectoral contexts. This methodology is used to highlight five sources of tension relating to the reality of the experience of globalization. These are illustrated by evidence from a recently completed EU Fifth Framework Programme study of regional adjustment strategies and technological change in five European countries