In late 2023, regional representatives from Central Europe petitioned the European Commission for additional Just Transition funding to prevent a 'green divide' from opening up across the continent. There are concerns that without adequate support, the gap between carbon-intensive regions and high-tech economies will widen.

This contrast in transition costs is particularly evident in countries like Poland, Bulgaria, and Romania, where local economies remain heavily dependent on coal mining and heavy manufacturing. These nations argue that a rapid phase-out of fossil fuels threatens long-term regional stability, while wealthier member states like Denmark and Sweden push for faster decarbonisation targets.

At a recent summit in Brussels, delegates warned of 'severe structural shocks' to industrial heartlands if workers are not reskilled. The European Single Market is designed to allocate capital efficiently, but structural adjustments can cause deep localized recessions.

Structural unemployment is now concentrated in fossil-fuel dependent regions, however, and has been rising as traditional industries close down. This could increase regional inequality and political tensions within the EU. The impact on individuals includes a permanent loss of skills, while local economies face a shrinking tax base.

Nevertheless, wealthier regions are not fully immune. Massive restructuring in the German automotive sector, as it shifts from combustion engines to electric vehicles, has led to significant job losses in regions like Saxony and Thuringia.

During such a transition, the role of EU cohesion policy becomes critical. Supporters argue that the Just Transition Fund is essential to maintain solidarity, whereas critics argue that top-down funding cannot fully offset the rapid decline of traditional manufacturing.

Extract A


In late 2023, regional representatives from Central Europe petitioned the European Commission for additional Just Transition funding to prevent a 'green divide' from opening up across the continent. There are concerns that without adequate support, the gap between carbon-intensive regions and high-tech economies will widen.	5
This contrast in transition costs is particularly evident in countries like Poland, Bulgaria, and Romania, where local economies remain heavily dependent on coal mining and heavy manufacturing. These nations argue that a rapid phase-out of fossil fuels threatens long-term regional stability, while wealthier member states like Denmark and Sweden push for faster decarbonisation targets.	10
At a recent summit in Brussels, delegates warned of 'severe structural shocks' to industrial heartlands if workers are not reskilled. The European Single Market is designed to allocate capital efficiently, but structural adjustments can cause deep localized recessions.	15
Structural unemployment is now concentrated in fossil-fuel dependent regions, however, and has been rising as traditional industries close down. This could increase regional inequality and political tensions within the EU. The impact on individuals includes a permanent loss of skills, while local economies face a shrinking tax base.	20
Nevertheless, wealthier regions are not fully immune. Massive restructuring in the German automotive sector, as it shifts from combustion engines to electric vehicles, has led to significant job losses in regions like Saxony and Thuringia.	25
During such a transition, the role of EU cohesion policy becomes critical. Supporters argue that the Just Transition Fund is essential to maintain solidarity, whereas critics argue that top-down funding cannot fully offset the rapid decline of traditional manufacturing.	30

Extract A (lines 17–19) suggests that structural unemployment 'is now concentrated in fossil-fuel dependent regions' and that this 'could increase regional inequality and political tensions within the EU'.

2.3 Economic performance

Question 58

Extract A

Markscheme

2.3 Economic performance

Question 58

Extract A

Markscheme

2.3 Economic performance

Question 58

Extract A

2.3 Economic performance Questions

2.3 Economic performance

Question 58

Extract A

2.3 Economic performance Questions