31 January 2012
Extended Cohesion System of HERMIN models for all EU-27 member states
On behalf of the European Commission, DG Regional Policy the macroeconomic Cohesion System of HERMIN models (CSHM) will be extended to cover all 27 EU member states. The general aim of the present project is to extend the coverage of the current 16-country CSHM (and 2 macro-regional models) to cover all 27 EU Member States. Essentially, this requires the additional modelling of the eleven more advanced states in the manner of, and consistent with the aims and objectives of the original CSHM, namely Austria, Belgium, Denmark, Finland, France, Germany, Italy, Luxemburg, the Netherlands, Sweden and the United Kingdom. Although these eleven additional states are – to a large extent – “net” contributors to the EU budget, they all receive non-zero amounts of assistance in the context of EU-wide cohesion policy. Of course, these funds are directed mainly at some of their internal, lagging regions, and the amounts of assistance are far smaller than the finance made available to the less developed states. Nevertheless, the Structural Fund investment mechanisms have to be inserted into the eleven new models in order to be in a position to evaluate the impacts on these economies.
The extended version of the CSHM to all EU Member States is designed to be able to:
- Assess the impact of Cohesion Policy on each Member State of the EU and the two macroregions (Eastern Germany and Mezzogiorno) arising from the Structural and Cohesion fund interventions, including the indirect impact of Cohesion Policy through the trade links and other links.
- Assess the impact of Cohesion Policy on each Member State of the EU and the two macroregions (Eastern Germany and Mezzogiorno) under different assumptions about co-financing (no co-financing, private and public co-financing).
- Assess the impact of contributions to the EU budget for Cohesion Policy under different assumptions concerning the Member States contributing to the EU budget (e.g. all Member States or only so-called net contributors).
The extended version of the CSHM will be used to:
- Simulate the impact of Cohesion Policy for the intervention period from 2014 to 2020 based on the legislative and financial package proposed by the Commission and expected contributions to the EU budget for Cohesion Policy. The simulations will run up to the year 2030.
The project ends in December 2012.