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The Impact of EU Structural Funds on Greece Liargovas, Panagiotis (Ed.); Petropoulos, Sotiris (Ed.); Tzifakis, Nikolaos (Ed.); Huliaras, Asteris (Ed.)

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The Impact of EU Structural Funds on Greece Liargovas, Panagiotis (Ed.); Petropoulos, Sotiris (Ed.); Tzifakis, Nikolaos (Ed.); Huliaras, Asteris (Ed.) www.ssoar.info Beyond "Absorption": the Impact of EU Structural Funds on Greece Liargovas, Panagiotis (Ed.); Petropoulos, Sotiris (Ed.); Tzifakis, Nikolaos (Ed.); Huliaras, Asteris (Ed.) Veröffentlichungsversion / Published Version Sammelwerk / collection Empfohlene Zitierung / Suggested Citation: Liargovas, P., Petropoulos, S., Tzifakis, N., & Huliaras, A. (Eds.). (2015). Beyond "Absorption": the Impact of EU Structural Funds on Greece. Sankt Augustin: Konrad-Adenauer-Stiftung. https://nbn-resolving.org/urn:nbn:de:0168- ssoar-456316 Nutzungsbedingungen: Terms of use: Dieser Text wird unter einer CC BY-NC Lizenz (Namensnennung- This document is made available under a CC BY-NC Licence Nicht-kommerziell) zur Verfügung gestellt. Nähere Auskünfte zu (Attribution-NonCommercial). For more Information see: den CC-Lizenzen finden Sie hier: https://creativecommons.org/licenses/by-nc/4.0 https://creativecommons.org/licenses/by-nc/4.0/deed.de Hellenic University Association Auslandsbüro Griechenland for European Studies Αντιπροσωπεία στην Ελλάδα Beyond "Absorption": The Impact of EU Structural Funds on Greece Panagiotis Liargovas, Sotiris Petropoulos, Nikolaos Tzifakis and Asteris Huliaras www.kas.de/greece Published by the Konrad-Adenauer-Stiftung e.V. © 2015, Konrad-Adenauer-Stiftung e.V., Sankt Augustin/Berlin All rights reserved. No part of this book may be reproduced or utilised in any form or by any means, electronically or mechanically, without written permission of the publisher. ISBN 978-3-95721-182-8 This research has been co-financed by the European Union (European Social Fund – ESF) and Greek national funds through the Operational Program “Education and Lifelong Learning” of the National Strategic Reference Framework (NSRF) - Research Funding Program: EXCELLENCE (ARISTEIA) – Re-Considering the Political Impact of the Structural Funds on Greece. Acknowledgements We are indebted to several people for their support in preparing this collective volume. First, we would like to thank the Konrad-Adenauer-Stiftung, the Hellenic University Association for European Studies (EPEES), the Greek Politics Specialist Group (GPSG) of the UK’s Political Studies Association (PSA) and the Institute of Diplomacy and Global Affairs for their support in organizing the initial conference which led to this collection of papers. Special thanks also to the Konrad-Adenauer-Stiftung and EPEES for publishing this volume. Furthermore, we wish to express our gratitude to Mrs. Dionysia-Eleni Tountopoulou for her meticulous work on language editing of the manuscripts. Last but not least, we are hugely indebted to the contributors of this volume, who entrusted us with their original research and inspiring ideas. September 2015 Panagiotis Liargovas Sotiris Petropoulos Nikolaos Tzifakis Asteris Huliaras 3 Contents Beyond “Absorption”: An Introduction to the discussion on the Impact of EU Structural Funds on Greece Panagiotis Liargovas, Sotiris Petropoulos, Nikolaos Tzifakis and Asteris Huliaras 1. Greece not Competitive in Spite of European Subsidies: The EU must rethink its Cohesion Policy Heinz-Jürgen Axt ................................................................................................................... 10 2. Structural funds and sustainable development in Greece Panagiotis Liargovas and Nikolaos Apostolopoulos .................................................................... 20 3. Greece and EU structural funds: what do the choices made by Greece regarding the allocation of structural funds over the past three decades imply for the developmental model of the country? Alexandros Karvounis and Nikos Zaharis ................................................................................ 35 4. The governance effects of EU cohesion policy in Greece; the horizontal dimension George Andreou ................................................................................................................. 49 5. Taking Stock of Agent-Principal Challenges in EU structural programmes: The Case of the ‘Extended University Programmes’ (PSE) in Greece (1997-2006) Maria Mendrinou and Nikolaos Tzifakis ................................................................................... 60 6. The application of the principle of partnership in Greece: has it affected traditional governance practices and the power balance? Fotini Papoudakis ................................................................................................................ 75 7. Assessing the Impact of EU Cohesion Policies. Cases of Innovation Policy in the Regions of Thessaly (Greece) and Basse-Normandie (France) Georgios Koukoufikis ........................................................................................................... 88 8. The contribution of European Union Structural Funds to the Developmental Strategy of the Region of Eastern Macedonia-Thrace” Panagiotis D. Koudoumakis and George N. Botzoris ................................................................ 98 9. The Law of Unintended Consequences: Greek Civil Society and EU Structural Funds Asteris Huliaras and Sotiris Petropoulos ............................................................................... 109 10. A case of ritual compliance? Role of European Structural Funds in the shaping of Greek employment policy (1995–2008) Georgios Ioannides .......................................................................................................... 117 11. EU funding in Greek Tertiary Education. A lost opportunity: The case of Technological Educational Institutes (TEI) Spyros Stamoulis ............................................................................................................. 132 Authors ............................................................................................................................ 141 4 Beyond “Absorption”: An Introduction to the discussion on the Impact of EU Structural Funds on Greece Panagiotis Liargovas, Sotiris Petropoulos, Nikolaos Tzifakis and Asteris Huliaras Since 1981, Greece has been a major beneficiary of EU funds (European Regional Development Fund, European Social Fund, Cohesion Fund and structural support for agriculture). For decades, the average EU transfers ranged from 2.4-3.3% of the country’s annual GDP. EU’s structural aid – about € 22 billion for 2007-13 – still continues to finance thousands of projects all over the country in almost every sector of the economy – from motorways construction to human resources upgrade. Brussels has commissioned a large number of ex ante, ex itinere and ex post evaluation studies that have assessed the direct impact of the Structural Funds. The usual method applied was to measure outputs in relation to the counterfactual: how many more kilometres of road it could have been possible to construct, how many more new business start-ups could have been supported, how many more people could have been trained. Thus, evaluation focused on projects or actions with Community support, which would not have been realised otherwise. Over time, much progress has been registered in EU’s evaluation practices at both project and program levels. For instance, until the midst of 1980s in Southern Europe, the use and effect of “substantial amounts of expenditure could not be accounted for” (Bachtel & Michie, 2007: 745). With the 1988 and 1993 reforms of the Structural Funds, evaluation gained a prominence it had not had before. However, even in the early 1990s, a survey concluded that the growth of evaluation practices in the EU owed “more to the wit of individual evaluators than to any formalized system of knowledge” (MEANS, 1991). To be sure, the introduction of multi-annual programming (with the objective of achieving economic, social and territorial cohesion) contributed to the attainment of significant improvements in the evaluation process (Gaffey, 2013: 195). The Commission also made significant efforts to distinguish short-term direct effects (results) from longer-term indirect effects (impact). In 1995, it established the MEANS (Means for Evaluating Actions of a Structural Nature) programme that produced a six-volume set of handbooks on monitoring and evaluation approaches and techniques. In 2000, MEANS was succeeded by EVALSED – an online resource on evaluation guidance that is now updated regularly (Gaffey, 2013: 196). Since the Structural Funds fundamental objective is to support economic and social cohesion across and within the member states of the Union, EU’s evaluations have focused on measurable outputs. Their verdict has generally been positive. For example, it has been estimated that in 1994-1999, the European Regional Development Fund, the European Social Fund and the Cohesion Fund contributed to the creation of 390,000 jobs in Greece (Beutel, 2002). Nonetheless, these estimates were based on national reporting that was often of dubious quality. For example, Greece reported jobs created during the construction of EU-funded buildings – “which by definition is not an impact” (Gaffey, 2013: 198). In addition to reporting improved infrastructure and upgrade of human capital, there has also been considerable criticism. Weak institutional framework and capabilities, low planning capacity, cumbersome bureaucratic procedures and lack of experienced staff were often cited as factors delaying decisions and forestalling outcomes. Corruption made matters worse. For instance, the EU Court of Auditors reached the conclusion that in several cases a significant percentage of total payments should not have been
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