Assessing the Economic Multiplier of Recent EU Cohesion Funds in the Alentejo Region

This study evaluates how European Structural and Investment Funds (2014–2020) have stimulated public and private investment in Portugal’s Alentejo region. By examining projects in infrastructure modernization, cultural and natural heritage promotion, energy efficiency upgrades, ICT deployment, R&D initiatives, urban rehabilitation, and mobility improvements—alongside intermunicipal and business ventures—we quantify the funds’ multiplier effects. Using regional investment data through March 2020, we apply an input-output approach to isolate the direct, indirect, and induced impacts of EU support under the H2020 framework. Our findings reveal that every euro of EU funding generated between €1.25 and €1.50 in additional regional investment, underscoring the pivotal role of cohesion policy in fostering balanced territorial development. These results inform policymakers on optimizing fund allocation to maximize economic spillovers in less-developed regions.