The measures of Common Agricultural Policy (CAP) and Regional (Cohesion) Policy are aimed at achieving cohesion, i.e. reducing the economic (sectoral), social and territorial disparities at European Union level. The issue of rural areas has become an important part of the CAP measures in Pillar 2. Since the CAP does not have a primarily territorial orientation, it does not contribute to territorial cohesion of rural areas. In a similar vein, regional policy, which is primarily oriented towards territorial development, also failed to give rise to complete, balanced development. Using qualitative analysis, this article summarises references selected on the basis of the authors’ experience in policy issues. The types of discourse included on the subject of coherence of common policies are the role of agricultural, rural and regional policy in cohesion and the conflict of cohesion and competitiveness objectives. Modern political and economic efforts of converging competitiveness into the macro concept with spatial implication result in planning and implementation of inappropriate measures and instruments intended to encourage the balanced territorial development of the EU. From this arises a conflict of cohesion and competitiveness, coupled with long-term consequences for the most vulnerable areas.

Aim of study: This paper evaluates the effect of pre-accession EU grants on beneficiaries in the agri-food sector using a quasi-experimental approach on the case of Croatia. An insight into the available literature reveals a lack of rigorous research and evaluation of the results of using these funds in Croatia as well as in other beneficiary countries.Area of study: Republic of Croatia, Europe (2006–2017).Material and methods: Two datasets were used: (1) financial and structural data on the population of Croatian enterprises for the 2003–2017 period, and (2) data on SAPARD and IPARD grants in the 2007–2016 period. Data were analyzed using counterfactual impact analysis, i.e., a combination of difference-in-difference approach and propensity score matching.Main results: The grants showed to have a positive effect on firm survival, as well as positive effects on obtaining bank loans and increasing turnover, value added, employment, and total factor productivity. Heterogeneous treatment effects show that the grants resulted in the greatest additionality for micro-sized firms located in Central Croatia. Cost-benefit analysis estimates an increase in the value added, which outweighs scheme-induced costs by 120% in the short run and 90% in the mid run.Research highlights: Pre-accession programs in Croatia had a positive impact on the beneficiaries’ growth and business performance indicators in both short and mid term. This paper also promotes the application of similar research in other EU candidate countries where the same or similar funds are implemented.