• The European Commission has published two studies to determine the scope and impact of rural development aid through both the CAP and the LEADER approach.
• The “EU Rural Financing Study” analyses the role of the CAP in addressing rural areas, and beyond agriculture, from 2014 to 2022.
• For its part, the “Evaluation of the impact of LEADER on Balanced Territorial Development” takes stock of the results of LEADER aid over the same period.

The European Commission ( EC ) has just published two studies on rural development at the European level, to determine how effective the Common Agricultural Policy ( CAP ) aid is, beyond agricultural development, and the LEADER approach – through its strategy from the local to the global – in addressing the balanced development of rural areas.

Both reports highlight the impact of the CAP in addressing the needs of rural areas and its central role in shaping the long-term vision for rural areas .

Study on the financing of rural areas in the EU

This study analyzes the role of the 2014-2022 CAP alongside other EU funds for rural areas: the ERDF/CF, the ESF, and the EMFF. It also offers a vision for the CAP 2023-2027.

1. Figures from the study:

• CAP spending on strict rural development measures in the period 2014-2022 amounted to €8.6 billion (9% of total EAFRD spending).
• Spending on indirect rural development measures associated with the agricultural sector amounted to €18.3 billion (14% of the EAFRD).
• Funding for joint measures amounted to €41 billion.

2. Study recommendations:

• The consulting firms responsible for the study (ÖIR, CCRI, and ADESA) recommend increasing the budget allocation for EAFRD interventions targeting rural development, beyond agriculture, to effectively address rural needs.
• Strengthen the role of other funds , such as the ESF+, the ERDF/CF, and the EFFAP in rural regions, to reach areas where the CAP does not reach and is insufficient: digitalization, mobility, SMEs, and non-agricultural employment.
• To ensure that the provision of the CAP and other EU funds is more integrated and holistic at the local and regional levels. This means offering integrated support outside the use of LEADER, with multiple funding options .
• Training local stakeholders responsible for providing aid so that administrative limitations do not hinder access.
• The study identifies 223 remote and disadvantaged rural regions , representing approximately 54% of all rural regions and around 10% of all EU inhabitants.
• Member States should apply rural-specific criteria tailored to each territory (e.g., by remoteness or persistent population decline), taking into account the territorial heterogeneity present in rural areas.
• The creation of networks for authorities and stakeholders (already existing, such as the National CAP Networks, the Rural Pact or the LAGs), for the protection and strengthening of governance structures .

Evaluating the impact of LEADER on Balanced Territorial Development

This report assesses the impact of the LEADER approach on rural development. It should be noted that Member States are required to allocate 5% of their financing to LEADER funds (in Spain's case, the decision was made to increase the allocation to 10%).

1. Figures:

• The EU Rural Development Fund allocation for LEADER is € 8.5 billion for the period 2023-2027. Other EU funds can also be added, but their effective contribution to multi-fund strategies is only 25%.
• As of September 2023, the average utilization of funds is 63% . The implementation period continues until the end of 2025.
• There are 2,894 Local Action Groups ( LAGs ) in Europe, covering a rural population of 170 million ( 62% ). In practice, the average amount of public funding allocated to each local strategy is €4 million for the entire nine-year period.
• LEADER has created nearly 60,000 jobs.
• The number of LEADER projects completed by 2021 is 120,000.

2. Conclusions:

• The results are determined by how the LEADER approach is implemented; the morethe seven LEADER principles are applied , the greater the achievements.
• LEADER's contribution must be assessed in light of the limited resources allocated to it (2% of the CAP budget). Therefore, complementary measures (CAP, other EU or national measures) are essential to address rural development.
• LEADER actors should pay more attention to policies on the added value of LEADER: building social capital, strengthening local governance, and implementing improved projects.
• In the future, less stringent requirements for project durability and success are planned, as well as the promotion of more innovative projects through LEADER.
• Cooperation appears key to the continued existence of LEADER: networking at regional, national, and EU levels must be a priority for LAGs.

Further exploration is needed to simplify LEADER's multi-pronged funding and cooperation, as well as to reduce administrative burdens and complexities, particularly in the implementation mechanism and multi-level governance.