Expenditure allocation for Rural Development interventions: main trends and patterns in the choices of the Italian Regions under the CAP 2023-2027

Abstract

Since the origin of the Common Agricultural Policy (CAP), its second pillar addressing rural development has grown significantly both financially and strategically. Rural development policies have always been managed in a decentralised manner, granting significant decision-making and management autonomy to Member States and their regions. This trend has increased even more with the introduction of the new delivery model in the 2023-2027 programming period. Therefore, it becomes crucial to understand which are the drivers behind the allocation choices for rural development funds at EU level. To address this topic, this study analyses the allocation of rural development funds across Italian regions, considering the ex-ante share distribution for the different types of interventions. Then a cluster analysis is performed. Different clusters of Italian regions are characterised using the indicators developed within the common monitoring and evaluation framework, the distribution of spending in the previous programming period, and other variables. Results return four clusters for Italian regions: cluster 1 includes regions with low urbanisation and high rurality, prioritising supporting interventions in disadvantaged areas and "environmental" interventions; cluster 2 shows large allocation for cooperation interventions in agriculture; cluster 3 primarily finances investments in agriculture; cluster 4 shows no distinct and uniquely characteristics.