The multiplier impact of European Union funding between 2014-2020 in the "Lisboa and Vale do Tejo" region

Abstract

The Partnership Agreement between the European Union and the Member Countries for the implementation of the European structural and investment funds for the period 2014-2020 (H2020) is in its final stages; therefore, it is important to understand what impact the partnership agreement had on public and private investment in the different regions, and consequently in the member countries. This paper is part of an extended study that analyses the multiplier impact of the application of EU funds on public and private investment in 7 Portuguese regions. In this paper analyse the multiplier impact of the investment of European funds invested in the ‘Lisboa’ and ‘Vale do Tejo’ Region of Portugal, until March 2020. Data was retrieved from the Coordinating Committee of the Lisbon & Vale Tagus Region’s website. Data analysis allowed to answer the following questions: a) What is the amount invested in the regional economy for each Euro of support allocated by the European Union through the H2020 programme. b) What is the distribution percentage of Community support versus investment for each of the intervention areas? C) What is the implementation rate when there is less than a year to go before the end of the programme? We were able to conclude that within the framework of the Horizon 2020 Programme, and according to the data available up to 31 March 2020, 3.004 projects were financed, representing a total investment of €1,670.356.612, with Community’s Funds amounting to €721.206.118, representing 43.2% of support, i.e., per each Euro of European Union support, €2.32 were invested in the Portuguese Region of Lisbon and Tagus Valley.