Regional paths towards Europe 2020 targets: a spatial approach

Europe 2020 is a 10-year EU strategy, promoting smart, sustainable and inclusive growth. Despite ambitious goals, its spatially blinded approach might seriously threaten its success. Actually, large territorial disparities still affect the EU, being the basis for a strong EU-wide cohesion policy and suggesting a general re-framing of sectoral policies on a regional basis. In this respect, the paper tackles the issue of regional disparities in achieving Europe 2020 Strategy targets. As the Strategy involves different targets, principal component analysis is applied to disentangle Europe 2020 domains and to describe major differences in EU-27 NUTS 2 regional performances. In particular, two components are returned: high-employment inclusive growth and smart growth. Territorial patterns of both components are analysed, by jointly considering some geographical features that may affect them. Both a rural and a spatial effect occur: rural and remote regions show poor performances whilst the presence of spatial autocorrelation may actually lock-in negative outcomes. When considering urban rural divides, also within-regions disparities matter. Results strengthen the idea that Europe 2020, as other sectoral policies, should be translated into a regional setting according to a place-based approach: although requiring large efforts, this represents the only way to fully achieve its own targets.