Cohesion and Competitiveness in CEE : The Impact of EU Cohesion and Development Policies on the Competitiveness and Energy Transition in Central and Eastern Europe

Navracsics, Tibor and Taraczközi, Anna (2024) Cohesion and Competitiveness in CEE : The Impact of EU Cohesion and Development Policies on the Competitiveness and Energy Transition in Central and Eastern Europe. EURÓPAI TÜKÖR: AZ INTEGRÁCIÓS STRATÉGIAI MUNKACSOPORT KÉTHAVONTA MEGJELENŐ FOLYÓIRATA, 27 (2). pp. 37-57. ISSN 1416-6151

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Abstract

The admission of Central and Eastern European (CEE) countries to the European Union (EU) caused significant economic growth, yet achieving sustained competitiveness within the EU continues to present difficulties. The paper analyses the competitiveness of CEE economies within the EU context, emphasising the effects of EU cohesion and development policies, energy transition initiatives and developments in digital infrastructure. This work examines the distinct economic and structural issues confronting CEE nations, utilising ideas from major EU papers such as The Future of European Competitiveness (Draghi Report), Much More than a Market (Letta Report) and the Ninth Cohesion Report. Particular attention is given to energy dependency, regional digital divides and the socio-economic impact of green transitions on traditionally coal-reliant economies.Our analysis utilises statistical data – such as GDP growth, renewable energy adoption rates and digital readiness scores – to evaluate policy effectiveness. Statistical analyses of NUTS-2 areas in Hungary and Poland reveal regional disparities, emphasising the relationship between EU funding allocations and improvements in economic indicators such as internet accessibility and renewable energy adoption. Findings indicate that centralised governance structures and regional variations in CEE nations limit the effectiveness of EU initiatives, highlighting the necessity for localised, adaptable approaches in cohesion policy. This study adds to ongoing policy debates on the competitiveness of CEE countries by highlighting key areas where strategic investments can help create a more cohesive and sustainable Single Market with a view to the corresponding role of EU funding programmes.

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