How European Union funds impacts the regions: the multiplier effect of Azores2020 programme between 2014-2020

Abstract

For decades, the European Union has been systematically creating mechanisms to strengthen its economic power and to give to the Member States tools and funding that allow them to develop, modernize and grow, not only in terms of economy but also socially.The programme, addressed as MFF, defined the European Union’s development priorities for the period of 2014-2020. A total amount of €960billion was to be distributed between Member States in order to enable them to achieve common goals during that period.Portugal, like the other Member States, signed a Partnership Agreement, where amounts and objectives were predetermined. The total amount estimated to be distributed in Portugal was €25 billion. This amount was then distributed between the 7 Portuguese economic regions. The programme become to be addressed as PT2020. With the MFF reaching its ending, we understood that it was important to study its impact in the Country. We have been developing a longitudinal study by region. In this paper we present the results of the Azores region as 31st of March 2020.At the end of the study, we were able to conclude that this funding system had a positive impact in the region, where €1 of funding generated €1,34 of investment, thus contributing directly to value creation and value capture.