The 7th EU Cohesion report shows that Europe's economy is bouncing back. GDP and employment have reached new highs and regional economic disparities have started shrinking again. But all is not well. Regions are growing, but not at the same pace. Less-developed regions are catching up but their employment rates remain low. Public investment remains low, especially in those countries and regions worst hit by the recent crisis, to the point that Cohesion Policy funds remain a lifeline for many of them.