Support measures can contribute to growth in the regions that lag behind; they must not, however, distort the incentives for firms and workers by hindering the optimal use of resources. To improve the economic conditions in the South and Islands and to raise growth potential requires long-term action, fully exploiting the opportunities afforded by European and national funds.
It is necessary to intervene in the factors underlying the delays in the South; attempts to compensate for them with monetary transfers cannot be the only solution. The effects on the southern economy of public investment in schools and infrastructure could be highly significant.