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This article analyses the impact of EU structural policy on the economic development of German regions between 1995 and 2004. In this period East- German regions have converged, while regional disparities have been increasing in West-Germany. In addition East-German Landkreise have caught up with poor western regions. However the overall gap between rich and poor Landkreise has risen. Economic theory describes a trade-off between regional convergence and aggregate growth. Our empirical findings support this hypothesis. It is shown that the EU’s regional transfers speed up convergence, but have a negative impact on longrun aggregate growth.

Konvergenz- und Wachstumseffekte der europäischen Regionalpolitik in Deutschland