PUBLIC INVESTMENT IN RURAL AREAS: CHALLENGES AND LIMITATIONS OF EUROPEAN PRACTICE
DOI:
https://doi.org/10.35774/Keywords:
public investment, structural funds, common agricultural policy, cohesion policy.Abstract
Introduction. Despite the positive experience of public investment, EU countries face a number of challenges due to a high level of bureaucratization and excessive focus on control by EU governing bodies, and on the other hand, the low level of institutional and financial capacity of rural areas, and the ability to absorb EU structural funds.
The purpose of the article is to clarify the features and challenges of public investment in rural areas of the EU.
Results. The features of public investments in rural areas were clarified. The financial instruments of cohesion policy and the common agricultural policy of the EU were analyzed. The financing, distribution and absorption of EU structural funds were studied.
Conclusions. It was found that the biggest challenge to public investment in the EU is the low level of absorption of EU structural funds by member states due to low institutional and financial capacity at the national and local levels.
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