The purpose of this report is to study, from both the theoretical and the empirical point of view, the extent to which regional policy can reduce the disparities in economic activity levels that arise between regions belonging to an integrated trade area as the European Union.

The European Commission's Regional Aid Guidelines define the criteria applied by the European Commission when examining the compatibility of regional aid granted by Member State public authorities within the European internal market. In order to prepare for a review of the RAG 2007-2013, DG...