Effective Cohesion Policies to Strengthen Social Integration in the EU

Rafael de Hoyos and Michal Rutkowski

No 207798, The Social Policy and Labor Discussion Paper Series from The World Bank

Abstract: The paper examines the European Union's efforts to promote economic and social integration. Despite significant convergence across EU member states, regional inequalities persist, particularly between urban centers and lagging rural areas, fueling Euroscepticism and political polarization. To counter these issues, the paper proposes a three-pronged strategy to strengthen social integration. The European Social Fund+, a vital component of Cohesion Policies, could focus on targeted social assistance programs, such as the Guaranteed Minimum Income (GMI), and combine them with “case management,” enhancing the effectiveness of social policies in addressing the challenges faced by vulnerable groups. Second, administrative capacities at the local level should be enhanced to ensure an efficient use of Cohesion Policy funds. Finally, the paper recommends fostering policy innovation and rigorous evaluation to adapt social policies to evolving economic challenges, including population aging, technological shifts, and the green transition. This approach could maximize the impact of EU social policies, addressing rising disparities within and between regions to promote a more inclusive and resilient Union.

Date: 2026-01-12
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