title: Commission Communication concerning the Structural Funds and their coordination with the Cohesion Fund - Guidelines for programmes in the period 2000 to 2006

eurovoc_concepts:
Cohesion Fund
EU programme
Structural Funds

text: C 267/2 EN Official Journal of the European Communities 22. 9. 1999 Commission Communication concerning the Structural Funds and their coordination with the Cohesion Fund Guidelines for programmes in the period 2000 to 2006 (1999/C 267/02) INTRODUCTION Purpose of the guidelines The main aim of the Union’s structural and cohesion policies is to help reduce economic and social disparities. They support national and regional policies in the weakest regions and on national and regional labour markets. While it is primarily the responsibility of the Member States and regions to define their priorities for development, the part-financing of programmes by the European Union requires that account is to be taken also of Community priorities, to promote the Community dimension of economic and social cohesion. in order Therefore, in accordance with Article 10(3) of Council Regu- lation (EC) No 1260/1999 laying down general provisions on the Structural Funds, the Commission has adopted the following broad, indicative guidelines on relevant and agreed Community policies in relation to the objectives of the Funds. The guidelines seek to help national and regional authorities to prepare their programming strategies for Objectives 1, 2 and 3 of the Structural Funds and their links with the Cohesion Fund. Their aim is to set out the priorities of the Commission based both on past experience in the implementation of programmes and on current Community policies for structural assistance. These priorities should help ensure the best possible use of Community assistance at national and regional level. The the draft guidelines already formalises present document adopted by the Commission on 3 February 1999. Programming of assistance from the Structural Funds for the period 2000 to 2006 will be implemented under each of the three objectives in conformity with the new Regulation. Never- theless, the guidelines are presented on the basis of thematic priorities for they must be taken into account under each of the objectives in varying degrees according to the specific situations of the Member States and regions. Economic and social cohesion: growth and competi- tiveness for employment In part thanks to support from the Structural Funds and the Cohesion Fund since the 1988 reform, there are now clear signs of economic and social convergence, particularly in those regions whose development is lagging behind and so substantial gaps are eligible under Objective 1. However, in between the regions still remain and require attention; infrastructure regional capital human endowments enterprises. the of Furthermore, despite the fall in unemployment rates in the level of unemployment and its regional Union, and competitiveness incomes, and the overall disparities Job creation is therefore still the main structural challenge facing the Union. remain at unacceptable levels. The next generation of programmes must help to continue the reduction of all such disparities and to establish the conditions which will assure the long-term development of the regions, for it for sustainable growth and improved competitiveness in the regions that employment will be fostered and maintained. is only through support The European Employment Strategy The development of appropriate strategies for promoting job creation will be facilitated by the implementation of the Member States’ national action plans for employment as required by the European Employment Strategy provided for in the Treaty of Amsterdam. These plans, drawn up on the basis of common employment guidelines adopted by the Council, will serve as the overall framework for measures to support employment policies under the Structural Funds, and in particular the European Social Fund. The conditions for investment and the impact of EMU important in creating the The efforts of the Member States to maintain macro-economic stability will be appropriate conditions for investment. As this will involve continuing the need for a high level of public budgetary discipline, investment, especially in infrastructure, may require some restructuring of government expenditure. Appropriate means to leverage budgetary expenditure through private sector part- financing should also be explored. further increases For regions within the euro area, economic and monetary union (EMU) integration in the Single Market for which diversified economic structures, an entrepre- neurial environment and a working population adapted to the needs of competition within the Union are more essential than ever. The regional programmes must take account of this. Two horizontal principles: sustainable development and equal opportunities the Treaty of Amsterdam, Under financial instruments are required to work, simultaneously and in the long-term interest, towards economic growth, social cohesion in other words, and the protection of the environment; the Union’s 22. 9. 1999 EN Official Journal of the European Communities C 267/3 sustainable development. Furthermore, the European Council at Vienna has confirmed the political priority of integrating the environment in structural and agricultural policies in the context of Agenda 2000. This means that environmental considerations, and in particular compliance with Community environmental and nature protection legislation, must be incor- porated into the definition and implementation of measures supported by the Structural Funds and the Cohesion Fund. That will also help the Union comply with its international commitments such as those concerning climate change given at Kyoto. Equality for men and women is a basic democratic principle Its incorporation underpinned by the Treaty of Amsterdam. into all policies is no longer an option but an obligation. In this context, an overall mainstreaming approach for equal opportunities must be introduced into all Strucutral Funds programming. This involves both efforts to promote equality and specific measures to help women and the mobilisation of all general policies by actively and openly taking into account at the planning stage their possible effects on the respective situation of women and men. Effectiveness enhanced by a strategic approach and part- nership An integrated approach to development and conversion must be reflected in programming methods in order to make the system of implementation more effective. On the one hand, the identification of integrated strategies for development and conversion which make the greatest possible use of synergies between the priorities and measures to realise a coherent vision will be an initial condition to be met in the plans to be drawn up by the Member States. These integrated multi-annual strategies must concentrate on three main priorities: (cid:151) regional competitiveness, (cid:151) social cohesion and employment and, (cid:151) the development of urban and rural areas (including specific actions for fisheries areas). In addition, they take full account of the analyses contained in the sixth periodic report on the social and economic situation and the development of the regions. Finally, they are illustrated with a number of key examples of good practice from the current (1994 to 1999) programmes. It is the firm view of the Commission that these indicative guidelines can make a valuable contribution to the identifi- cation of coherent and balanced development priorities for the next round of programmes. PART 1: CONDITIONS FOR GROWTH AND EMPLOYMENT: REGIONAL COMPETITIVENESS I. Creating the basic conditions for regional competi- tiveness framework If the objectives of improved regional competitiveness and a greater employment content of growth are to be achieved, an environment conditions appropriate conducive to entrepreneurial activity must be promoted in the regions. This means that enterprises must have available, in order to maximise output and employment, a full range of indirect supports, in sectors such as physical infrastrucuture, research, telecommunications and information technology, technological development and innovation. and (cid:151) increasing the competitiveness of regional economies, in order to create sustainable jobs; The following general considerations should govern assistance for the development of these sectors (cid:151) increasing employment and social cohesion, chiefly through the upgrading of human resources, and (cid:151) urban and rural development in the context of a balanced European territory. (cid:151) Investments in transport, energy and telecommunications infrastructure supported by the ERDF and the EIB should place particular emphasis on connections and intercon- nections with the trans-European networks (TENs) where they need to be completed. Furthermore, the creation of a decentralised, effective and broad partnership is a key factor in the success of structural programmes. Partnership, involving upgrading of the partners’ skills where appropriate, maxmises synergies, increases the level and commitment of all calls on a wide range of financial and intellectual contributions, principally through the system of global grants. involved at regional and local (cid:151) In the Member States eligible for the Cohesion Fund, there should be full coordination between assistance from the Fund, the ERDF and, where applicable, the EIB. (cid:151) Where appropriate, partnership between the public and private sectors in the development of infrastructure and the provision of services should be encouraged (see box on financial engineering). Structure and analytical basis for the guidelines The guidelines which follow are structured on the basis of the three strategic priorities mentioned above: (cid:151) In all cases, the programme authorities should ensure that the assistance granted is in conformity with Community competition rules. C 267/4 EN Official Journal of the European Communities 22. 9. 1999 A. Transport systems infrastructure: improving networks and Efficient transport networks and systems have an integral role to play in supporting economic development. The business to sector needs markets for inputs and outputs, while citizens need good passenger training, transport shopping and leisure. to have reliable and cost-effective access for access to jobs, services Therefore, future regional development programmes should promote improvements to transport that remove constraints faced by business and passengers while taking account of the substantial progress that will already have been made by the end of the current programming period under the Structural and Cohesion Funds. Such investments should seek to reduce transport costs, congestion and travelling time, and improve including network capacity, performance and service quality, safety. Transport priorities for the next period (cid:151) in particular in the less developed regions (cid:151) should contribute to efficiency, modal balance, accessibility and sustainability: transport this will infrastructure. (cid:151) Efficiency. Despite progress to date, there is a continuing need to improve the efficiency of the transport system. In involve the modernisation and many cases, upgrading of equally important, however, to promote better management of the transport system. This can include the development transport systems and actions promoting of intelligent interoperability technical standards. The final result should be the integration of different transport modes into coherent transport systems for the movement of passengers and freight. harmonisation through of is It from the Structural and Cohesion Funds (cid:151) Modal balance. Currently, the greater part of investment in is transport directed to the road transport sector. There is scope for a better balance in the allocation between transport modes of the funding available during the next programming period. Balance is also required between major transport projects and smaller-scale local improvements in transport systems. In general, priority should be given to the development of coherent systems, inter-modal and combined transport including the development of transfer nodes. (cid:151) Accessibility. Where appropriate, transport programmes should reflect the need to improve regional accessibility. In addition to assistance to complete the TENs on the territory of the eligible regions, the secondary connections to these networks are also important. Finally, account must always be taken of the access needs of people with mobility handicaps. (cid:151) Sustainability. Community funding in the transport sector should be embedded in consistent strategies adopted by the Member States for achieving sustainable transport systems, and this necessarily involves both reducing the environ- mental impact of transport and encouraging a shift to the use of more sustainable forms of transport. In particular, regional development programmes have to be consistent with the Community’s commitment to reduce greenhouse gas emissions, and this requires particular efforts in the road and air transport sectors. the closest possible In the Member States eligible for the Cohesion Fund, there is a need for coordination between its assistance and that of the ERDF. The Cohesion Fund also has an important role to play in the implementation of the trans- European transport networks with particular regard to the network corridors and nodes that will have the maximum impact on cohesion. The concentration of support from the Cohesion Fund on such projects is a major priority. some shortcomings Investment Outside the less-developed regions, the European Union is, in general, well equipped with basic transport infrastructure, although there are some rural areas and areas where the in provision terrain is particularly difficult where gaps in urban public remain, as well as transport networks. infrastructure should in such cases be limited and focus largely on small-scale projects. in coordination where the ERDF, appropriate with the EIB, could focus on the following actions: providing local links to improve intra-regional or local access; improving the compatibility and interoperability of transport infrastructure; developing inter-modal and transfer nodes, and supporting urban and regional public transport systems. In this regard, in transport Multi-modal transport systems arteries its development in the vicinity put Multi-modal transport systems play an important part in the Objective 2 programmes in the Netherlands. For instance, in the case of the Arnhem-Nijmegen area, which is situated in the province of Gelderland in the east of the location and the presence of major country, a central European transport the region’s transport and distribution functions at the centre the of programme is therefore to increase the multi-modal effi- ciency of the region. This was featured in the 1994 to 1996 programme, second programming period 1997 to 1999, when the measure was somewhat broadened to include related infrastructure in the transport, distribution and logistic sectors, including developing and improving business areas around the (cid:145)Euro Trade Port(cid:146). strategy. The first priority of continued into the and B. Energy: networks, efficiency and renewable resources The promotion of sustainable regional development depends on an efficient, diversified and competitive energy sector in order flexibility and quality of to enhance the security, energy supply and reduce energy costs. 22. 9. 1999 EN Official Journal of the European Communities C 267/5 In the less-developed regions, investments under the Structural Funds should concentrate on effects of and the remote supplier in the most (cid:151) Energy networks: The development of energy trans- mission infrastructure helps to reduce dependency on a isolation, given external regions. Therefore, particularly completing interconnections, with special emphasis on the TENs, improving electricity grids and the completion and improvement of gas transmission and distribution networks are priorities. In particular, priority should be given to interconnections that will contribute to the opening up of the electricity and gas markets and that will be operated in accordance with the competition rules of the Treaty cost reductions and reductions (cid:151) Energy efficiency: More efficient use of energy must be encouraged through technologies capable of achieving substantial overall in energy intensity. In order to avoid unnecessary increases in energy production capacity, measures should initially focus on the demand side: targeted aid could be used to promote the production of energy-efficient equipment, its acquisition by SMEs, and the use of such equipment in households and public buildings. Support for investment by industry in energy-efficient and innovative technologies, such as Combined Heat and Power (CHP) or cooling and power, could be coupled with voluntary agreements, energy labelling and best practice initiatives. audits, the use of Investment in energy efficient technologies can usefully be accompanied by related training measures. Alternative energy source The installation of 20 wind generators, each with a capacity of 25 kW on the island of DØsirade (region of Guadeloupe) at an altitude of 270 metres facing the open sea allows electricity production from wind power catering for up to 80 % of the needs of the island. This facility, situated in a tourist zone, also allows an annual saving of some 220 tonnes of little noise and no pollution. fuel oil and is environmentally friendly: A renewable energy project in Austria Renewable energy projects have been an innovative component of many rural development programmes in co-financed by the Structural Funds. For example, Zalms (Tirol, Austria), the rural development programme is supporting a comprehensive renewable energy strategy for a small includes a isolated community. The project system for providing heat and electricity based on the burning of waste wood chips. For the future, there are plans to install solar heating systems. The energy is used both for economic activity (cid:151) in silos for stocking primary products (cid:151) and for domestic purposes. C. Telecommunications: towards the information society (cid:151) Renewable energy sources: Investment in renewable energy sources favours the development of local resources and contributes to the reduction of dependency on energy job imports while at the same time creating new local opportunities. Targeted aid could be used to promote the acquisition of renewable energy equipment in SMEs, for instance in the tourism sector, where there is considerable the potential Commission’s White paper on a Community strategy and action plan for renewable energy sources, calls on Member States to guarantee that at least 12 % of the global budget of is used to support renewable energy sources. for the use of renewables. energy sub-programmes In this regard, the Outside its less-developed regions, the Community is in general well equipped with infrastructure for energy production. Consequently, investment here would tend to focus on small-scale innovative infrastructure projects. Priorities include investments to promote the use of renewable energy sources, investment aid for reducing SO2 and CO2 emissions, the use of efficient energy energy management In this context, greater use could be made of local and regional energy agencies. the promotion of towns and cities. and in SMEs, audits The rapid development of the information society has opened up new possibilities for economic development. It has widened the locational options of firms and can help regions, including remote and rural communities, to attract and retain activities that make high-quality employment. contribution important an to An efficient basic telecommunications infrastructure is a key requirement for acces to the information society. However, the role of public support is perhaps less central than for other infrastructure since, even in less-favoured regions, types of investment is potentially profitable in most cases. should therefore be financed mainly by the telecom operators’ own resources or by borrowing, if appropriate through the EIB. in the telecommunications sector It When public grant support for the telecom sector is considered necessary, it must follow transparent rules aimed at preventing distortion of competition while, at the same time, allowing public resources to be directed towards areas where investment would not otherwise be forthcoming under market conditions. Public subsidy is generally justified only where there are no new competitive fixed-link providers, the existing infrastructure is incapable of supporting modern standards of voice and data communications and the necessary investment in upgrading of fixed networks would not otherwise take place. C 267/6 EN Official Journal of the European Communities 22. 9. 1999 the information society is not just a The development of question of providing appropriate hardware but of integrating technology in a coherent policy to exploit the benefits (cid:151) economic, social and cultural (cid:151) of the communication and information revolution. Therefore, interventions financed by should maximise the real business the Structural Funds benefits of the information society for commercial organi- sations (cid:151) especially SMEs (cid:151) while also encouraging and facili- tating the exploitation of the new information networks by the private citizen. This should include actions aimed at: (cid:151) Stimulation applications of new services and innovative fields include electronic commerce and the Important exploitation of the Internet as a business tool, including the development of Electronic Data Interchange (EDI), as well as applications that facilitate teleworking. There are also potential benefits for public administration, including the provision of public services and information through electronic means. Alongside these efforts, awareness and and demonstration competence actions including broad consultation exercises involving large sections of tech- the local population, nology and information society experiences and best practices (cid:145)road-show(cid:146) campaigns, etc. are also important. raising through pilot administrations, transfer of between local (cid:151) Equipping potential users Education and training is a key requirement for building up the skills which allow new economic activities to flourish and users to maximise the benefits of the information society. This includes tele-education and distance learning through electronic means (multimedia packages, (cid:145)education/ entertainment(cid:146) applications, etc. ). Raising the level of skills in the business sector through training and education is also essential. Public support for telecommunications infrastructure in an open market infrastructure, e. g. broadband, In Ireland, the competitive environment brought about by the liberalisation of the telecommunications market was not to ensure provision of advanced telecommuni- sufficient cations in peripheral or uneconomic regions. This justified an intervention of the ERDF by way of an open tendering process which allowed all telecommunications providers to compete, on an equal footing, for grant support for the provision of infrastructure in accordance with certain criteria set down in advance. This competitive tendering process ensured that projects judged which would not otherwise be carried out, purely on commercial criteria alone, would go ahead, thus ensuring that peripheral areas could now fully participate in the information society. The consequent upgrading of that more towns and villages will now have the capacity to participate in infrastructure has meant if the information age and thus replicate the success of Ennis, Ireland’s first information age town. This pilot project was established as a test bed to see what happens when citizens have full access to advanced communications services. Competitiveness for farmers through telematics Joutsa offers some 50 local A small but successful project in mid-Finland organised by the municipality of farmers training and assistance to make better use of their PCs. The participants are receiving (cid:151) according to their knowledge (cid:151) basic training or advanced courses on computerised business management, production planning and networking. Some learn to combine their farming job with distance working. The total budget for this one-year project is about EUR 130 000 of which 60 % is financed by the Structural Funds. D. Infrastructure for a high-quality environment report of the second assessment shows that the European Environment Agency The recent Europe’s environment: there have been substantial reductions in most countries in the substances with a negative impact on the emissions of environment and human health. Nevertheless, the European environment remains under threat, principally with regard to water, air and soil quality. Therefore, environmental infra- structure needs to be constructed or upgraded, especially in least because high quality the less-developed regions, not environmental factor for regional socio-economic development. infrastructure constitutes an important The Structural Funds and the Cohesion Fund should, as a priority, assist compliance with the environmental standards established in the relevant Community Directives, in particular with regard to water and waste management. Also, in the Member States eligible for the Cohesion Fund, there should be full coordination between assistance from the Fund and that from the ERDF. Finally, in areas prone to danger from natural disasters, such as floods, preventive civil protection measures should be encouraged. The specific priorities with regard to the water and waste management sectors during the next programming period are as follows (cid:151) Water: Environmental infrastructure in this sector should ensure the supply of adequate amounts of drinking water and the collection, treatment and discharge of urban waste water. Projects should be consistent with the principles of the proposed water framework Directive, the adoption of which is expected in 1999. to drinking water, With respect there should be more emphasis on increasing the efficiency of existing infra- structure with a view to limiting losses (leakages) and to improving quality at the consumer’s tap. 22. 9. 1999 EN Official Journal of the European Communities C 267/7 In the context of the design of urban waste water systems, special attention must be paid to the following: the location of discharge points and the impact of discharges on the environment, sludge of produced by water treatment and the management of run-off water and storm-water overflows. sustainable disposal sewage An important issue in regard to water services is the need for proper pricing to reflect the real scarcity of and demand for water. Particular attention should be paid to integrated water projects, which should take account of water quality as well as water quantity at the river basin level, including the trans-national dimension. strategy (cid:151) Waste management: This concerns the management and disposal of solid, urban, industrial and harzardous wastes, according to Community policy and legislation (e. g. the Community for waste management, waste framework Directive, hazardous waste Directive, Regulation on shipment of waste, etc. ). Funding of waste infrastructure should follow the established hierarchy of principles: prevention of waste production and its harmful impact; recovery of waste by means of recycling, re-use or recla- mation and safe final disposal, limited to waste for which no possibility of recovery exists. A central feature of the waste Directives is the requirement for Member States to draw up waste management plans covering their whole territory. The adoption of such plans, which elaborate a strategy to meet the concrete objectives of national and regional waste policies, should be a pre-requisite for any Community funding of waste infrastructure. Preference should be given, management where it to the recovery of material over energy recovery operations. is environmentally sound, Contaminated sites such as old landfills and unauthorised discharges of wastes constitute a considerable threat for the environment and for human activities. Member States should address issue by introducing appropriate clean-up measures. this Waste-water treatment An interesting waste-water collection and treatment project being part-financed in Cagliari, Sardinia, combines three recycling, conservation and environ- important aspects: mental benefits. First, the treatment system permits the reuse of Cagliari’s waste water for irrigation during the summer months. Secondly, during the other months of the year, after further treatment to minimise phosphates, the water is stocked in an existing fresh-water reservoir. From there it will be used during periods of water shortage due to drought. Thirdly, besides the environmental interest arising from the integrated nature of the project, there are further environmental benefits because the waste water is no longer disposed of in the Mediterranean. Reclamation of contaminated sites former Pollution in the five new L(cid:228)nder and eastern Berlin has been considerable. Water contamination, air and soil pollution has been at high levels, notably because of the lack of legislative protection and concentration on short-term centrally planned economic goals under the system. The task of cleaning up the environment is immense. European financial support makes a contribution to tackling resulting structural problems in some areas, thus contributing to the improvement of the quality of locations. The measures often take the form of decontamination and reclamation of industrial sites and military sites. In Parchim (Mecklenburg-Vorpommern), the ERDF has contributed to the decontamination and conversion of abandoned military installations. The measures included the dismantling of a huge fuel depot and the subsequent decontamination and upgrading of ground water on a former military airport by an innovative and cost-effective technique. Thus, the inter- vention has eliminated the threats for the environment and created the conditions for the establishment of a business park. APPLICATION OF THE POLLUTER-PAYS PRINCIPLE the Therefore, is clearly established that policies. the reform of It the polluter-pays principle should apply horizontally in the implementation of all Commission’s Community proposals for the Structural Funds and revision of the Cohesion Fund include provisions to apply the polluter-pays principle in the operation of the Funds. Currently, application of the principle varies considerably between the Member States and, without a coherent and homogeneous Community-wide framework, there is a danger of unequal in the implementation of Community funding. treatment The Commission will therefore present in the near future (cid:151) in a technical paper separate from these guidelines (cid:151) a framework for the application of the polluter-pays principle. This will operate mainly through the differentiation of rates of assistance for infrastructure operations financed by the Cohesion Fund and the Structural Funds. In other sectors of intervention, such as industry and agriculture, and where there are negative the impacts, environmental principle to be applied. there is also a need for the various forms of The underlying elements of the framework will be that (cid:151) a system should be promoted through the differentiation of rates of assistance, whereby the environmental costs related to the treatment of pollution and/or preventive actions are borne by those who cause the pollution, C 267/8 EN Official Journal of the European Communities 22. 9. 1999 (cid:151) the application of the polluter-pays principle must be compatible with the goals of economic and social cohesion, (cid:151) its development should be progressive and concern the range of infrastructure sectors covered by Community funding, (cid:151) it should take into account the social acceptance of charging, (cid:151) it should take into account Treaty provisions related to the careful and rational use of resources, especially water and energy. As a priority, the Commission will also proceed with the development of a common framework for the application of the polluter-pays principle generally in the implemen- tation of all Community policies. E. Research, technological development and innovation: modernising the productive base raising regional competitiveness. The structural Funds should assist SMEs in particular to access the skills they need to promote their own growth, and to strenghten the industrial and commercial clusters and supply chains of which they are part. Interactions with Community and international networks specialising in RTD and innovation should be further enhanced. (cid:151) Developing human capabilities. Within the domain of RTD and innovation, attention needs to be given to lifelong learning and continous upgrading of skills and capabilities. With regard to the needs of SMEs, is important that management development programmes are instituted to assist them to absorb new technologies and related organisational methods. The range of education and training opportunities made available in the region is instrumental in enhancing levels of innovation. Therefore, programmes for the training and mobility of graduates, managers, scientists and engineers, are priorities. it High levels of activity in the fields of research and tech- (RTD) and innovation are important nological development features of the productive environment in the most competitive regional economies. Structural assistance should therefore give an increasing priority to promoting RTD and innovation capacities in an integrated manner in all fields of intervention of the Funds. In general, successful regions will be those that take a strategic approach to innovation and offer help to companies to integrate their own resources and expertise with those of government agencies, higher and further education, other companies for the effective management of new technology, research and development, and product and process inno- vation. organisations business support and Raising the efficiency of RTD and innovation in terms of their impact on economic development (cid:151) in the less-developed regions in particular (cid:151) during the next planning period the requires clearly defined policy priorities following areas: in each of (cid:151) Promoting innovation. A wide range of targeted activities should be covered, including new forms of financing (e. g. venture capital) to encourage start-ups, spin-outs/spin-offs and innovative developments, specialised business services, to technology transfer and related services, measures and encourage productive higher education/research institutes, better exploitation of information technologies for commercial and community benefit and measures to encourage small firms to carry out RTD for the first time. interactions between firms (cid:151) Networking and industrial cooperation. The flow of knowledge through technology transfer and dissemination of new techniques is also an important contributor to (cid:151) Consolidating RTD and innovation actions through effective policy management. Along with the three policy priorities above, there is also a need for improved policy management. Performance-oriented schemes could be introduced in order to increase the efficiency and quality of RTD and innovation assistance. Statistical tools at improved. New delivery methods, using score systems and benchmarks should be effectiveness of to enhance considered in order assistance in a systematic way. should be regional level the Networking for technological development A network of eight technology centres (Basque Country) has, since 1992, been supported by assistance from the ERDF and the ESF for the purchase of equipment and for research projects. Activities relate to the following six information/telecommunications, sectors materials industrial biotechnology and energy). The network involves annually 1 100 researchers (of whom about one fifth are grant-aided) and 450 research projects, with employment in associated enterprises amounting to some 1 700 jobs. (manufacturing, technology, environment/recycling, Innovation audit In the framework of a Regional Innovation Strategy (RIS), 350 companies in Wales undertook an (cid:145)innovation(cid:146) audit with the help of business services and over 600 organi- sations were involved in this RIS process. Thus nearly 70 new projects were identified and the industrial South Wales Objective 2 Structural Fund programme for 1997 to 1999 includes now up to EUR 56 million for innovation-related projects. 22. 9. 1999 EN Official Journal of the European Communities C 267/9 II. Competitive enterprises for employment creation The creation or expansion of competitive enterprises is the pre-condition for creating sustainable jobs and thus for the Structural Funds regional economic development. All contribute to this aim in the regions eligible for Objectives 1 and 2, while the European Social Fund contributes across the whole of the Union. While all sources of employment are important, the increasing role of the services the net sector (cid:151) which has been responsible for most of employment growth in the Union in recent years (cid:151) needs to be reflected in Community programmes. the territory of Many actions in support of enterprises will involve the granting financial assistance or other advantage to undertakings of cases, engaged the activities. the assistance programme authorities granted is in conformity with Community competition rules. should ensure that in commercial In these A. Support for enterprises: priority to SMEs focus to stimulate the Structural Funds the Assistance under in particular on small and productive sector must (SMEs) while not neglecting the medium-sized enterprises needs of the close large enterprises, especially in view of relationship which often exists between them and SMEs. The priorities for support from the Funds for enterprises are as follows: (cid:151) Shifting the emphasis from capital grants: Developing the business sector in general, and encouraging the setting up and development of SMEs in particular, involves a wide variety of actions on the part of the programme authorities. the emphasis has been on capital grants, Traditionally, inward investment especially as far as the attraction of has been concerned. In the future, capital grants, and especially those financed by the Structural Funds, should play a reduced role. is worth noting In this regard, from the current programming period the case of Ireland, where ERDF support for inward investment ceased in 1998. it Alternative sources of finance should be promoted such as reimbursable advances, risk and venture capital, loan capital and revolving funds, mutual guarantee schemes, etc. (see box on financial engineering below). However, duplication of aid schemes available for enterprises, and notably SMEs, should be avoided and this may require some rational- isation in order to improve efficiency. those with a weak in the less-developed regions or enterprise tradition the following principles are recom- mended: (cid:151) Considering the heterogeneous nature of the SME popu- lation, improved targeting according to the specific needs of each SME category or sector should be a priority. Integrated and clearly identifiable support packages for SMEs should be developed and include measures such as easier access to finance, business support services and training measures and should be adjusted to the needs of SMEs at the different stages of transfer). This their necessitates ERDF measures. Assistance should also be targeted on micro- businesses and on specific groups, such as young or those from disadvantaged women entrepreneurs or groups. should support new products and processes, and this could involve support for the creation of clusters of SMEs within specific business sectors. life-cycle (start-up, growth or Finally, Community programmes integration and ESF the of aim for (cid:151) Support should where appropriate be focused on fields of competence in which the region concerned can real- specialisation and istically a degree of commercial advantage. However, their in view of overall importance, a number of sectors will be a priority in almost all regions. These would include the information society, and services in general, given their importance in employment creation. Within the services sector, commerce has a particular role to play at the regional level. It provides an outlet for local production, for example from the crafts sector, helps preserve the fabric of local communities and in general makes a significant contribution to employment creation. for Support (cid:151) The inter-dependent nature of relations between larger and smaller enterprises cannot be ignored in any strategy to develop the productive comprehensive sector. should be enterprises large continued therefore but related to their added value for the regional economy, notably through networks in particular SMEs. established with other enterprises, the development of human resources Strategies for should target increases in the productivity of such networks. (cid:151) Improving the delivery of Increasing attention should also be paid to more qualitative and organisational aspects, notably the systems for delivering assistance and the overall productive environment. In order to raise the efficiency of the delivery system especially assistance: (cid:151) As a general rule, where the contracted conditions for support, in terms of either the nature or duration of the given activity, are not fulfilled, repayment of all or part of the grant aid should be required. Also, Community funds should not in general be used to facilitate the transfer of production or other facilities within the territory of the Union. C 267/10 EN Official Journal of the European Communities 22. 9. 1999 (cid:151) Involvement of the private sector in the formulation of strategies: As evaluations of past assistance have shown, the quality of programmes to develop the SMEs’ sector can be improved where they are worked out and implemented in the context of a broad partnership including represen- tatives of private companies and business service organi- sations. The exploitation of results of research on the basis of cooperation between companies and universities should similarly involve a broad partnership (see above, part I. E). the Community budget by favouring as far as possible recourse to private sources of financing, notably risk and venture capital and Public-Private Partnerships (PPPs), as a increasing the resources available for means both of investment sector ensuring that private expertise is brought to bear on the way in which schemes are run. and also of Apart from direct assistance to firms in the form of investment aid and business support measures, increasing emphasis should be placed on the skills of the workforce generally. This implies clearly identifiying present and future bottlenecks in the regional and risks of (skill redundancy and unemployment that have to be tackled at an early stage. These issues are considered in greater detail in Part 2 below. labour markets shortages) Aid scheme for micro-enterprises In Portugal, the (cid:145)Promotion of regional development (PPDR)(cid:146) programme has financed an aid scheme for micro-enter- prises called (cid:145)RIME(cid:146) whose objective is the creation of employment in local communities affected by rural depopulation and specific development problems. The scheme aims for the creation and/or modernisation of micro and small enterprises. It gives a priority to projects in the following areas: craft industries, local and neigh- bourhood services, rural tourism and ecology. to assist Cooperation between large and small companies advice knowledge. The trained managers in the Objective 2 area of Turnhout The Plato project (Belgium) involves the loaning of managers or (cid:145)guardian angels(cid:146) from big companies to SMEs, especially new enter- prises, so that they can benefit from their greater experience and from large corporations have offered assistance in areas ranging from marketing to expansion strategy. 265 SMEs participated in the period 1996 to 1998. Assistance was offered both in the context of workshops and through individual contacts. This project has been more informal recently been expanded to so successful that companies the It was recently short-listed as Netherlands and Ireland. one of the most successful projects in terms of employment creation for the Job Challenge organised by the European Commission. in several other countries such as it has FINANCIAL ENGINEERING The new Structural Funds Regulations stress the need to leverage from operations funded from achieve the best to help Risk and venture capital. Member States will be encouraged to pay particular attention to monitoring performance in order to assess more precisely the contribution of financial engineering schemes to regional development, private sector participation sustainability, ensure management by independent professionals with autonomy for day-to-day decisions, rigorous project selection criteria and which support financial assistance to be linked to the provision of advisory support and different instruments to SMEs so as to provide them with flexible and sustained assistance at various stages in their development. In appro- priate cases, the support of the EIF can be requested. development objectives financial regional project Under the (cid:145)Invest(cid:146) measure (Hainaut), four venture-capital funds provide start-up capital or capital to launch new activities and develop and diversify existing firms. These Funds may also provide firms with the resources they need to carry out investments to implement the results of innovation processes. industrial research or technological They may also provide assistance cross-border through participation in inter-regional projects, context the establishment of inter-regional firms, etc. This assistance takes the form of capital holdings, loans and the issue of convertible bonds. The products are adapted to each indi- vidual case in order to meet the specific needs of each firm. in a subject PPPs. Private sector involvement is directly related to the prospect of a suitable revenue stream, to an acceptable level of uncertainty. There is a need for the earliest possible involvement of the private sector, especially at the planning stage of infrastructure projects, the allo- cation of project risks to those best able to support them in the PPP contract documents, real as clearly set out consultation and involvement of the public directly affected by the scheme prior to detailed design, appropriate protection of the public interest by contract or legislation, respect of European Union public procurement and competition requirements and reconciling the need for ERDF to be made within the period covered by the financial perspective while the public/private counterprart expenditure will usually be well outside this the Commission could prepare a period. technical paper this financing method. illustrating the possible use of commitments If necessary, 22. 9. 1999 EN Official Journal of the European Communities C 267/11 A notable example of a successful public/private partnership concerns the construction of the Vasco da Gama Bridge (Portugal). This project to provide a second crossing of the river Tagus at Lisbon, costing approximately EUR 900 million, was undertaken on the basis of a concession contract to build, own, operate and transfer (BOOT). The concession was awarded to Lusoponte, a joint venture comprising Portuguese, French and British construction companies. Under the terms of the concession, as well as building the bridge, Lusoponte will operate it for a maximum of 33 years before transferring ownership to the the operation and maintenance by Lusoponte of the existing 25 April Bridge. The project is financed by the Cohesion Fund, the EIB, and the shareholders with the Portuguese Government’s contribution being provided through the transfer of tolls from the existing bridge. concession also includes government. The B. Business support services: helping the creation and development of enterprises The significance of business support services for the successful creation growth, and transfer of enterprises, in particular SMEs, is well established. Such services enable companies to increase their competitiveness and their capacity to identify new markets. They also help to create a level playing field in areas essential to the opening up of the internal market, such as public procurement where SMEs have a potentially key role to play. Measures under the Structural Funds to support such services should include assistance for technology transfer, the promotion of marketing and internationalisation (excluding direct aid linked to exports), innovation in organisation and management and assistance for the creation and development of start-up capital, mutual such as guarantee companies, etc. As a result, the priorities should be: instruments financial (cid:151) Identification of the needs of companies: This involves identifying the type of service to be developed and the most suitable bodies to respond to the needs of firms and to support them in the implementation of their development plans. SMEs tend to have a clear preference for a single agency as the first point of contact to provide information for assistance and to and advice on the possibilities establish links with further specialised agencies. For these agencies targeted and customised imformation and services for SMEs coupled with appropriate advice must be available. to provide assistance, efficient (cid:151) Exploitation of synergies: There is particular scope for improved synergies in the case of service centres, tech- nology universities, research centres, etc, which often operate in an uncoor- dinated manner. Cooperation can help to improve the centres, transfer science parks, the services provided, through quality of effective staff training and the dissemination of best practice (incuding via the Internet) and the encouragement of a strong customer orientation. in particular (cid:151) Reinforcement of international cooperation between firms cooperation: This promotes to develop the European and international dimension of their business in order to build a more solid position in the single European market. As well as public support services for enterprises, the private business services sector (cid:151) consisting of computer, marketing, technical, recruitment, and other professional and commercial services (cid:151) makes an important contribution to improving the competitiveness of enterprises, as well as being a significant is source of employment estimated to represent 10 % of total employment in the Union). in its own right (the sector Business services have tended to concentrate in the more pros- perous and central regions, as that is where demand for such services has been strongest. Programmes under the Structural Funds should seek to identify the constraints on a more balanced availability of business services. Policies to achieve the demand for this could include the identification of business services in the regions, the development of appro- priate human resources and the promotion of the information society as a business support tool. Practical support for enterprises developed assistance (construction from the (Catalonia) was to thanks The IDIADA test and certification centre for the automobile and sector equipment) ERDF programmes implemented in this region since 1992. The centre consists of test tracks and laboratories allowing firms to test the performance and security of their products as well as validating their parts and vehicles. At present, more than 275 firms use these installations which employ 150 people. 150 BICs: integrated services for the creation of enterprises for and services support Innovation Centres (BICs) Some 150 Business successfully operate organisational models of compre- hensive systems of business the launch and development of innovative enterprises. Based on a public/private and local/regional partnership, BICs act in their areas as an interface between the needs of enterprises and the offer of specialised services. They also contribute to the internationalisation of firms (marketing, interregional cooperation). The spreading of BICs in all assisted areas and their more intensive use in implementing regional programmes would help further disseminate good practice in business creation and development. BICs are linked, by cooperation agreements to other Community networks, such as the Innovation Relay Centres, the EuroIn- foCentres of the local action groups of Leader. C 267/12 EN Official Journal of the European Communities 22. 9. 1999 89 territorial employment pacts An approach based on strategy and partnership figures very clearly in most of the action plans in the 89 territorial pacts for employment, which cover almost 10 % of the Union’s the territorial pact of West- population. For example, resulted in an integrated Brabant partnership very project broad encompassing all ground actors on the including the trade unions. (Forges de Clabecq) by a characterised the major (cid:151) Environmental management. Financial support should be provided in particular to SMEs, to make use of environ- mental services such as Eco-audits. (cid:151) Industrial sites. Priority should be given to the rehabili- industrial sites (brownfields) over the tation of derelict development of greenfield sites. C. Areas with particular potential: environment, tourism and culture, social economy The measures discussed above aim to increase the competi- tiveness of enterprises, in particular SMEs, and thus their employment-creating potential. Experience in the current programmes has shown that there are some sectors where this potential for employment creation is very significant but has so far been under-utilised. Moreover, the employment guidelines place particular emphasis on the need to exploit new opportunities for jobs. The three areas presented below, mainly in the services sector, provide examples of some of the opportunities which exist for further employment creation. Environmental tiveness improvement: a contribution to competi- Environmental quality is a major factor in regional devel- opment and competitiveness. The integration of environmental quality in productive investment will ensure a rational use of resources, enhancing economic performance and competi- tiveness while maintaining employment. Moreover, environment-related products or processes provide an additional opportunity for the regions as they are them- selves a potential new source of employment. Specific action in combining environmental industry and services should include: improvement and investment creating and (in SMEs) should particular (cid:151) Preventive approach. Support from the Funds for business activities promote in investments characterised by a preventive approach and this could be encouraged by the higher rates of assistance available for such in investments. Priorities should inlcude the efficient and sustainable use of natural resources, waste minimisation and reuse, reduction of air pollution and the implementation of a sustainable product policy. Moreover, the Funds could support the development and marketing of innovative environmentally-sound products and services. (cid:151) Clean technologies. Member favour measures to accelerate the shift from old, polluting tech- nologies and end-of-pipe measures to new clean tech- nologies. should States (cid:151) Training. This in environment-related issues within the business sector and to promoting new employment (or conversion). to improving skills fundamental is Normally, environmental State aid is given favourable treatment under European competition rules. In order to facilitate the preparation of such aid measures, the Commission has estab- lished guidelines on State aid for environmental protection. Tourism and culture: advantages for local development (cid:151) Sustainable quality tourism. Tourism is one of the leading growth industries in Europe and worldwide, in terms of both output and employment creation. Tourism thus represents an important for a large number of regions, rural communities and cities in the Union. A balanced and sustainable development of tourism should be supported in particular through: economic asset (cid:151) the modernisation of tourism-related infrastructures and the improvement of their efficiency, (cid:151) upgrading skills and professional profiles in order to respond better to the expectations of tourists and the needs of the industry, (cid:151) encouraging business-to-business partnerships, public- to services cooperation and networking in order private integration of improve involved in the (cid:145)tourism chain(cid:146). the different the Tourist development should be carefully planned so as to take into consideration the carrying capacity of the site with regard to environmental, and economic impacts. Such integration of environmental concerns and the conservation of natural and cultural heritage in devel- to encourage sustainable and opment plans is essential high-quality forms of tourism. social (cid:151) Culture: an economic growth point. Culture is closely linked to tourism as the cultural heritage of a regional not only contributes to the development of a local or regional identity but also attracts tourists. Culture thus offers opportunities for additional employment, a factor of major importance to the disadvantaged regions of the 22. 9. 1999 EN Official Journal of the European Communities C 267/13 Community with a high concentration of cultural potential. The cultural dimension should thus be integrated into tourism development strategies. Exchanges of experience between regions or local authorities help to transfer knowledge about culture and ways of developing cultural tourism and finding joint solutions. The cultural potential of a region will it more attractive to outside investors in general. render Culture is also an increasingly important part of the private economy in its own right, with considerable potential for growth and job creation. Member States should thus make more use of the employment potential of innovative and for example in the areas of creative cultural products, culture-related online services, media and the information society or design, and include measures in these fields in their regional programmes. Finally, flexible training linked to culture-related professions is both a requirement for the functioning of the cultural sectors and contributes to the preservation or modernisation of traditional activities and the establishment of entirely new skills, linked for example to the information society. Tourism integrated into a local economy Tourism development supported by the Structural Funds in focused on four strategic zones with a high Piedmont tourism potential (cid:151) Lake Maggiore, the Val di Susa skiing district, the city of Turin and the Canavese castles circuit. The tourism development adopted an integrated approach by financing a mix of infrastructure-improving local attractiveness, aid schemes to small and medium-sized tourism businesses and tourism promotion programmes. Value was added both by good partnership between local impact and regional administrations, and the greater achieved through concentration of activities in limited areas. Preservation of a heritage site For at least five centuries, numerous manufacturing sites powered by the water from mountain springs have been located in the valley of Lousios in the Peloponnese in Greece. Within the operational programme for the Pelo- ponnese 1994 to 1999, a group of buildings has been reconstructed and the machinery restored. An open-air water power museum has been opened and it serves as an amenity offering a tourist and educational experience. The museum provides the public with knowledge concerning water-power and the production of black powder and leather. Tourists can walk along the paths beside the Lousios, which have been opened up and which are carefully maintained. The project as a whole has given rise to significant development in the region because of the number of tourists and schools that it has attracted. There are a wide variety of organisations, such as cooperatives, mutual societies, associations and foundations, as well as enter- prises and individuals, which provide for their members or are formed to serve groups in society with common needs. Some operate (credit unions, mutual insurance associations, etc. ) while others provide services that are closer to the public sector; for example health and welfare services, and services, recreation. in competitive markets neighbourhood activities sports Although the entities that form the social economy are created to meet specific social needs, they also make an important economic contribution, notably in the field of employment. it is estimated that some 5 % of total At the present time, in the European Union is represented by the employment for further social economy and there is a clear potential growth. On the basis of the experience with national support schemes and community pilot projects as well as the action plans of some territorial employment pacts, the priorities for assistance to this sector should be: (cid:151) Active support for the creation and development of service providers: This involves, firstly, the identification the of promising new sectors of activity and, second, provision of appropriate support services to potential and existing service providers, such as information and coun- selling, as well as financial and technical assistance. (cid:151) Organisation and durability: Once established, service providers, especially those involving newly active persons, will generally require continuing assistance for some time, notably in the areas of managment support and training. However, the ultimate objective should in general be the operation of the service on a sustainable basis. Therefore, public support should be degressive over taking account of the particular needs of the service in question. time, Social economy: new employment-creating services Not all those engaged in economic activities can be categorised clearly as being part of either the public or private sectors. The initiatives taken by the Member States in favour of youth employment, the fight against social exclusion and the devel- opment of local services have allowed organisations and enter- prises in the social economy sector to become new and significant partners of regional and local authorities. The overall aim of assistance form the Structural Funds should be to confirm and strengthen this partnership. C 267/14 EN Official Journal of the European Communities 22. 9. 1999 Innovative childcare facilities In a deprived area of Belfast, a project originally addressed to the parents of young children will result in a commercial childcare venture which will subsidise continuation of the project after the end of the ERDF-funded scheme. The local development group aims to break the cycle of deprivation to bring their by encouraging parents, mostly mothers, children to local play centres. Here, through the medium of their peers, the mothers are helped to complete their own education in order to help their children, and some then go on to further training, including childcare. ERDF has funded two new multi-purpose buildings, one of which is near the commercial centre of the city This is intended to house a profit-making child-care centre which will in turn support the core work in the other building, which, due to its location, would not attract middle-class parents with the money to pay for the service. By the time the building is finished, some mothers will have completed their child-care training, and can take up work in the centre. financially and horizontally in a given geographical area (across the whole of the Member State outside Objective 1 areas) for Employment (NAPs). in support of National Action Plans Activities in this field will be developed also in the context of the human resources Community Initiative. I. Objective 3: The frame of reference for human resource development for more and better jobs to increase Given its mission of contributing to actions employment, instrument at the ESF is the main financial European Union level for helping the Member States develop and implement the employment guidelines under the European employment strategy. This strategy provides the framework: PART 2: THE EUROPEAN EMPLOYMENT STRATEGY: A KEY PRIORITY FOR THE COMMUNITY (cid:151) within which the employment policy priorities of the Member States are translated into National Action Plans (NAPs), it pursues The European Social Fund is the main financial instrument at European Union level for human resource development across the whole territory of the Union and throughout all priority Objectives of the Structural Funds. It has a dual mandate: on the one hand, it seeks to improve employment opportunities in the internal market and to contribute thereby to raising the standard of living. On the other hand, as one of the Structural Funds, strengthening economic and social cohesion. The priorities set out below apply across the whole territory of the European Union, although in regional programmes or where Objective 3 is programmed or implemented regionally there will be regional specificities which need to be taken into account. It will also be important to ensure complementarity and synergy between ESF-supported measures and rural development measures financed outside Objectives 1 and 2. their overall objective of In this context, the Commission has proposed that Objective 3 of the Structural Funds, which supports the adaptation and modernisation of education, training and employment, should have the following functions: (cid:151) firstly, as a policy frame of reference for all measures to promote human resources across the whole of a national territory, irrespective of Objective status. This sets out the ways in which the Member State proposes to use the Structural Funds (principally, but not exclusively the ESF) to contribute to employment growth and economic and social cohesion, (cid:151) secondly, as a programming and financial through which the European Social Fund will instrument, intervene (cid:151) which guides these priorities, including those supported through Objective 3, and actions undertaken to fulfil the (cid:151) which should apply to employment-related activities throughout the European Union and in each Member State. Clearly, there must be coherence between the employment strategy as reflected in the NAPs and the priorities of human resource development supported by the ESF. Indeed, the Vienna Summit Conclusions recommend that the reform of the ESF be used to strengthen support for the employment strategy. The NAPs combine national strategy on employment and national policy instruments with the European priorities of cohesion and employment. Throughout three general elements are of particular importance: the whole human resource strategy proposed, (cid:151) a mainstreaming approach for equal opportunities between men and women is essential, (cid:151) the employment potential of the information society must be harnessed in the interests of society as a whole, and 22. 9. 1999 EN Official Journal of the European Communities C 267/15 development, (cid:151) the contribution of the European Social Fund to promoting territorial the local employmet pacts, must be enhanced. This approach would allow the actions undertaken in the framework of the NAPs to be completed and reinforced on the appro- priate territorial level. example via for Measures covered under this policy field might involve a more innovative use of the ESF than has traditionally been the case. For example, they could include a variety of services such as pre-training, counselling, community employment, job search assistance, job support and employment aids, all combined in a flexible comprehensive approach. Within that context, the five policy fields in the ESF Regulation set out the areas in which Member States should undertake action which will support the four pillars of the employment guidelines. B. An inclusive society, open to all It should also be noted that actions to promote training and employment in companies can constitute State aid and must be in conformity with competition rules. A. Active labour market policies to promote employment In this policy field, Member States should demonstrate how they turn the active and preventive strategies called for in the employment guidelines into concrete proposals for action. Activation and prevention rely on (cid:145)tailor-made(cid:146) assistance based on individual characteristics. Such targeting requires an early identification of individuals at risk and should combine a wide range of measures such as diagnostic interviews, training tied to a personal action plan, career counselling and job search assistance, and work trials. It will be important to offer the unemployed training or other active employability measures before their unemployment becomes long-term. Promoting the employability of young people is a key requirement for combating youth unem- ployment, and it is therefore essential to equip young people with greater ability to adapt to technological and economic changes and with skills relevant to the labour market (cid:151) where appropriate by implementing or developing appren- ticeship training. and exclusion, Regional and local employment services have a key role to play in preventing skills bottlenecks and in supporting adaptation to structural change. For example, they should take a lead role in auditing the skills available and the levels of young people’s professional qualifications, as well as the training needs of the employed and the re-skilling needs of the unemployed. This is essential both to develop training and integration opportunities adapted to specific or individual needs and to adapt the provision of continous traning to the needs of local and regional enterprises. Employment services therefore have a particularly important role to play in regions undergoing structural change. The promotion of a labour market open to all is a priority for Member States in the European employment strategy. In this context, special attention should be given to the needs of the disabled, ethnic minorities and other groups and individuals who may be disadvantaged, and to the development of appro- priate preventive and active policies to promote their inte- gration into the labour market. However, reducing unem- ployment and improving the (re-)integration into the labour market of such groups is often not possible without over- forms of exclusion: Exclusion often has a coming other number of causes, so only an integrated and comprehensive approach can be effective as a strategy for integration. It is important to tap into the capabilities of the non-governmental sector in this field, since it can be closer to the reeal needs of those concerned than statutory agencies. Equally, mobilising local groups and their projects can be an effective way of reaching those at risk of exclusion or already suffering from it. The Commission’s draft ESF Regulation lays appropriate emphasis on this means of providing such effective responses to exclusion, whatever its origin. Good practice in projects for social inclusion In Portugal the Integrar sub-programme, which receives EUR 279 million from the ESF over the 1994 to 1999 period supports multi-dimensional projects seeking social and economic development of underprivileged communities and social groups. This is in keeping with the high priority given by the government to the national strategy against social exclusion, with Integrar funding active training and orientation measures for the long-term unemployed who are from the Government. Integrar seeks to support actions designed to prevent factors leading to exclusion and promote the access into the labour market; vocational training schemes; and actions targeted on socially underprivileged communities inte- and social groups which aim to strengthen social gration. receiving minimum income payments In keeping with an all-embracing approach, the main lines of action of the sub-programme include making a special effort to inform the target population, who often experience the greatest difficulties in gaining access to information, to ease integration and/or prevent exclusion; and training professionals who intervene directly within disadvantaged C 267/16 EN Official Journal of the European Communities 22. 9. 1999 groups and address their specific problems. The innovative elements of the programme include: (a) Measures training traditional upstream of and employment measures for people who have difficulties (for in participating in those traditional measures example, housing, social welfare support the most vulnerable groups, specific training schemes for disabled people), which improve their participation and success rates in tradi- tional labour market measures. education, health and for (b) The adoption development methodology, reflecting a recognition of the territorial basis of the problems and their social dimension. community the of C. Promoting employability, skills and mobility through life-long learning This policy field covers strategies to broaden access to the acquisition of skills, to support the diversification and rein- forcement of training opportunities and to improve the quality of education and training systems. In order to reinforce the development of a skilled and adaptable workforce, opportunities for lifelong learning, particularly in information and communication technologies, the fields of In this respect, attention should be should be improved. given to the development of nationally recognised certification permitting flexibility in the continuation of studies. The quality of education and training received is fundamental to young people’s capacity to enter the labour market. Education and training systems should be better equipped to give people the ability to adapt and to integrate into the labour market, and notably to provide every individual with the minimum basic and numeracy). Particular attention should be given to young people with learning difficulties. The improvement of skills through basic education and training may be supported where there is a clear link with improving the functioning of the labour market and/or the employability of the individual. required (specifically literacy skills In regions lagging behind, improving the capacity and effec- tiveness of the education and training systems as a whole is an competitiveness. element important Consistent time has been investment shown to produce excellent results. their sector over in up-grading in this D. Developing adaptability and entrepreneurship Under this policy field, Member States should demonstrate how, working with the social partners, they can combine their efforts to modernise work organisation and forms of work, and enable the workforce to adapt better to economic change. It will also be important for the creation of more and better jobs to support entrepreneurship and the expansion of training opportunities. ESF action should focus on helping individuals to adjust to changes arising from new technologies and from new market conditions, particularly employees who risk becoming unem- ployed. The anticipation of skills needs is crucial here, as is the supply of training activities and advisory services to employees of SMEs. Such actions imply the strengthening of partnership and the full the social partners, as does the development of new ways of distributing working time among occupational groups and of reconciling working and family life. involvement and cooperation of It will be necessary to link actions and measures aiming at integration, professional training (initial or ongoing) and re-skilling to activities supporting economic development and conversion. This applies both at the level of support for enter- prises (for example for innovation) and at the level of basic conditions such as research and technological development (for example in the development of a regional strategy for inno- vation and technological development). Such a pro-active in regions undergoing approach is particularly important structural conversion. to promote entrepreneurship and employment In order creation, a combination of demand-side measures (such as the provision of subsidies or other support for individuals in becoming self-employed or starting their own enterprises) and supply side measures (such as targeted information, training and tutoring activities) should be taken. Training for entrepre- neurship and targeted support services for entrepreneurs are also important. Entrepreneurial activity, including self employment, could also be supported, and Member States should promote measures to exploit fully the possibilities offered by job creation at local level, in the social economy, in the area of environmental tech- nologies, in rural areas and in new activities linked to needs not yet satisfied by the markets. Partnership and anticipation in Sweden (Objective 4) in the active and joint During the 1994 to 1999 period, Objective 4 seeks to facilitate the adaptation of the workforce to industrial change. A key success factor for Objective 4 in Sweden lies involvement of both the management and employees in the planning and implemen- tation of the projects. The partnership approach stresses that both parties recognise the benefits change will bring. Objective 4 has brought about the close cooperation of social partners and authorities which did not exist before. It has been shown that about 80 % of the participating 22. 9. 1999 EN Official Journal of the European Communities C 267/17 enterprises have not previously received any public support and counselling. training for With EUR 173 million the Swedish Objective 4 programme concentrates mainly on innovative adaptation measures for those employed by SMEs with less than 50 staff and is individual implemented in two stages: drawing up of business plans; and the change of key employees/managers and for the competence development of the firm’s workers and of those at risk of becoming unemployed. Some studies show that 80 % of employees have been involved in a joint analysis. Another success factor has been that the work plan has been produced by the enterprise itself and is based on individual needs. According to the Swedish principle, the empowerment of individuals leads to true adaptability, also for businesses, which is carried out in the second stage. E. Positive action for women While mainstreaming a gender perspective into all actions supported by the Structural Funds is essential, the specific positive action is required to complement this. These specific actions must be based on: (cid:151) an analysis undertaken in the mainstreaming context of the difference between women and men in the sectors and areas concerned and of to equal benefits from policy measures, and specific constraints should reflect It employment strategy and supplement aimed at improving the employability of the workforce. the main objectives of the European the general actions Strengthening employability and enterpreneurship among women In Spain, the Ayuntamiento of Santa PerpØtua de Magoda and the Association of Employers set up a programme to help women identify their career choices and find work linking both the needs of using an integrated approach: local business in the region. women and the needs of Providing information on the career options available was the beginning, individual consul- tations and groups sessions for women. Then followed the training itself: from 400 to 500 hours including both practice and theory in areas such as community services or technical administration. then came a series of One of the major barriers women face entering the labour market is the lack of care services. With funding from ESF, children whose childcare mothers were attending training courses in LiŁge (Belgium). facilities were provided for Women are a minority among entrepreneurs. In Finland, the ESF supported projects to encourage women to set up their own companies. This project provided unemployed women over 25 years old with six months training in entre- preneurship and a four-week placement in a company. (cid:151) on targets based on this analysis to correct these imbalances. II. Specific actions in Objective 1 and 2 regions the gender-specific obstacles Indicators should then be set to monitor and assess progress on equality. Programmes and measures should be designed to fully address to equal access and participation in order to make sure that discriminatory effects are neutralised and that gender equality is promoted and a balanced participation of women and men in decision- making structures should be ensured. This could be achieved through measures which aim to improve women’s career progression and access to higher level positions, correct the imbalance in the representation of women or men in certain the increased economic sectors and occupations, employment of women and increase the level of entrepre- neurial activity among women. support In this field, it will be important not just to rely on training measures, but to use the full potential of all eligible measures available, so as to support a comprehensive positive strategy. Member States should therefore ensure that active labour market policies are made available for women in proportion to their share of unemployment, give particular attention to obstacles which hinder women to wish to set up new busi- nesses or become self-employed and ensure that women are able to benefit positively from flexible forms of work organi- sation. The European Employment Strategy is not solely implemented by national policies; regional and local authorities have a role to play in implementing the employment guidelines within their own sphere of competence. There is therefore scope for a strong regional dimension in the implementation of these guidelines, which may be translated into concrete measures through regional programmes under Objective 2. The essential characteristics of such programming in the employment and human resource development fields are that: (cid:151) it must respond to a local or regional assessment of need bottom-up programming result of a and the be arrangement, (cid:151) the activities supported should be integrated with activities supported by other Structural Funds, (cid:151) it must avoid all risk of double financing of measures or actions financed under Objective 3. C 267/18 EN Official Journal of the European Communities 22. 9. 1999 In the regions covered by Objective 2, the identification of needs for training and skills should go hand-in-hand with the setting of goals for the development or conversion of firms receiving investment aid from the Structural Funds. This could include, for example, specific actions in the following the general measures fields, under Objective 3: in so far as they complement (cid:151) Developing suitable training and integration initiatives and adapting the availability of on-going training to the evolving needs of in the context of conversion or in anticipation of restructuring in Objective 2. local and regional enterprises, (cid:151) Stimulating and responding in an appropriate manner to the training requirements of enterprises in the regions eligible for Objective 2 (aid to firms to train young people or provide those in work with new skills while also developing new activities such as the development of new products or processes or satisfying market potential, including taking account of needs for training in tech- nology). (cid:151) Supporting the role of local and regional authorities in promoting the identification and formulation of the needs of firms and in assisting in the adjustment of systems of training and employment to meet local and regional needs. These activities, based on a bottom-up approach, can be included also in actions undertaken in regions eligible for Objective 1. PART 3: URBAN AND RURAL DEVELOPMENT AND THEIR CONTRIBUTION TO BALANCED TERRITORIAL DEVEL- OPMENT A harmonious development of the Community territory takes place against a background of greater economic integration and increasingly global markets. It is equally influenced by Community policies, each in its own individual manner. This is the case for the interventions of the Structural Funds, notably through their assistance to urban development in an integrated regional approach and to rural development in its double role of contributing to the European agricultural model and to economic and social cohesion. The complementarity of this assistance with a more balanced development over the whole of the territory of the Union cannot be taken for granted. is necessary therefore to encourage an integrated process aimed at favouring a synergy of urban and rural development in order to make progress towards a more balanced territorial development. It The Member States have prepared a draft informal document containing indicative guidelines on the long-term development the European territory (European Spatial Development of In this context, assistance from the Structural Perspective). Funds to reduce disparities between the core and peripheral regions must be continued in view of the increased concen- tration of activity in parts of the Union as well as in certain metropolitan areas. The development strategy of each region must also take account of the indicative guidelines in order to include them in a boarder overall view, not just of the country in question but of is important to take account of trans-national effects in estab- lishing investment priorities, notably in the transport sector. the Union as a whole. Similarly, it Thus, the development of each region will progressively encourage the emergence of an increasing number of zones of economic integration more evenly distributed across the Union, and the progressive evolution from the current centre- periphery model towards a more multi-centred European area. A. Urban development within an integrated regional policy Urban areas play a vital role in the European economy. They are centres of communication, commerce, creativity, innovation and cultural heritage, but they also consume more than their fair share of energy and non-renewable natural resources and produce disproportionate amounts of waste and pollution. in particular also expert a powerful Medium-sized towns influence on rural areas. (cid:145)Sustainable urban The Commission’s recent communication: development in the European Union: a framework for action(cid:146) (notably actions 1, 8 and 18) sets the context for work to be supported by the Structural Funds in urban areas. As part of the integrated strategy for development or regional conversion, this work should aim at four interdependent goals: (cid:151) greater prosperity and employment in urban areas by enhancing the role of towns and cities as regional growth poles, (cid:151) support for social integration, fairness and the regeneration of urban areas, (cid:151) the protection and improvement of the urban environment life, protecting improving the qualify of as a means of human health and safeguarding local and global ecosystems (including sustainable transport systems, renewable energy sources and rational energy management), (cid:151) contributing to systems for sound urban and local management. In both the Objective 1 regions and the Objective 2 areas, this various programming approach should mean that documents under include integrated the Structural Funds packages of operations in the form of integrated urban devel- opment measures for the main urban areas in the region. Such the 22. 9. 1999 EN Official Journal of the European Communities C 267/19 measures will make a vital contribution to an integrated approach to regional development or conversion. special support Specifically, the restoration of disadvantaged urban areas could through an integrated territorial receive approach similar to that developed by the Urban Community Initiative, whose experience gained from its most innovative measures and an approach through partnership could usefully be generalised. the measures Furthermore, supported by the ESF under Objective 3 should have a major impact in terms of social cohesion even in the towns not covered by Objectives 1 and 2. The renovation of an urban area in difficulty Public and private assistance has been offered to Aulnay- sous-Bois in the ˛le de France region which has 5 000 council dwellings, with numerous problems. This takes the form of a major urban project including renovation and complementary measures supported by Urban, one of which seeks to reduce insecurity while offering new services to the inhabitants in the form of branch centres local providing staff, mobile services and offices associations. There is also an initiative to collect bulky objects and recyclable waste. for B. Rural development for mondernisation, diversification and environmental protection While some of the most dynamic regions of the Union have a rural character, there are many other rural areas experiencing often acute socio-economic problems reflected in weak demo- graphic structures, insufficient job opportunities and an under- provision of key services. Many of the difficulties can be traced to the effects of extensive structural change stretching over in the several decades, notably economic the decline importance of agriculture in terms of its contribution to regional income and employment. Today, around three-quarters of Europe’s farmers are part-time requiring supplementary sources of income. At the same time, rural areas still account for some four-fifths of European Union territory, while agriculture is the largest user of rural land and remains a key economic sector in many regions. For the European Union as a whole, one important aim of rural development policy is to ensure the sustainability of the European agricultural model. As such, it forms the second pillar of the Common Agricultural Policy. This requires a twin-track approach that supports both the development of a multi-functional agricultural sector, on the one hand, and the broader social and territorial context in which the agricultural sector exists, on the other. In the areas most those eligible under severely affected, Objectives 1 and 2, rural policy should seek both to develop a competitive agricultural sector using environmentally-friendly methods of production and support for the diversification of farm holdings and the rural economy into new activities and sources of employment. Rural development in these terms remains an important element of cohesion policy and at the same time would complete the modernisation and reform of market policies under the CAP. In these eligible areas, the Structural Funds and the EAGGF Guarantee Section should support the diversification of a competitive rural economic structure based on encouraging new activities through integrated programmes. Their priorities will include: (cid:151) A stronger agriculture sector to ensure that agriculture and forestry are competitive by supporting investment in modernisation, including the processing and marketing of agriculture and forestry products, attempting to reduce costs and improving product quality, increasing the value added by agriculture and maintaining agricultural holdings (principally by ensuring that they can be taken over by young farmers) and the rural environment (including agri- environmental measures). (cid:151) Improving the competitiveness of rural areas by improving access and promoting diversification into new activities and the creation of employment. This includes the development of firms, most of which produce virutally unique high-quality products. Other opportunities exist in the field of renewable energy, including energy generation from urban waste in rural areas close to major agglomerations. tourism and small (cid:151) Maintenance of the environment and Europe’s rural heritage: environmental protection must be a major rural policy the countryside and natural resources, traditional rural areas, the promotion of agricultural tourism and the renovation of villages. preservation including priority the of In addition, the multi-functional role of the agricultural sector is increasingly recognised. Besides the economic role of agri- culture, forestry and other productive activities, it now fulfils an important social role through the provision of quality products and the supply of leisure and recreation opportunities to town dwellers. It is also an important factor in maintaining the quality of the environment and the cultural heritage. Rural areas are of the utmost importance for the development of the European territory. The mainstream rural development strategies cannot on their own address all the problems confronting rural areas especially in view of their local scale. The new Community initiative for rural areas will provide an opportunity for complementary actions to the mainstream programmes by supporting actions conceived and carried out by partnerships operating on a local level. The aims are to encourage the emergence and devel- opment of new rural development models, which are then C 267/20 EN Official Journal of the European Communities 22. 9. 1999 disseminated through networks, and to promote cooperation between local actors in different regions and Member States. New agricultural activities in northern Italy In the Val Bormida, in northern Italy, innovative solutions were found in order to support the incomes of inhabitants experiencing declining incomes from traditional agriculture, based on te exploitation of the region’s potential as a for medicinal purposes. With the supplier of plants assistance development rural programmes, two new projects were supported, involving the purchase of automated processing and packaging of dried plants and the under- taking of research for the introduction of new varieties and to improve quality-control. European Union allowing the equipment of rate of By the mind-1990s, production of essential oils reached 1 500 kg compared to 120 kg some 10 years earlier while the quality certification (cid:145)biological product(cid:146) was obtained guaranteeing a superior market position and a higher return. As a result, a new agricultural outlet has been developed in the region, creating seven new jobs. It has also contributed to the maintenance of the natural landscape in a mountainous environment, bringing a total of 100 hectares of less fertile land under cultivation. Sustaining rural communities in Nordrhein-Westfalen One of the problems of rural areas is the tendency towards the concentration of key economic and social services, while access to towns and cities via public transport is being progressively reduced. In certain Member States, Objective 5b programmes have assisted in the re-estab- lishment of basic rural services. For example, in the small German village of Ottenhausen in Nordrhein-Westfalen, the local bakery and the grocery closed down in 1995, leaving the villagers dependent on services some distance away and giving rise to particular difficulties for those with problems of mobility. With the support of the local inhabitants and with EAGGF co-financing, a new village shop was opened but on a different basis from pre-existing facilities in that it provided several services from a single outlet. It now acts as a supplier of local agri- cultural products and bio-products as well as providing important services: a post office, a central agency for shoe and linen repair, for cleaning and an advisory service on environmental matters. Thus basic services (cid:151) especially important for older people and mothers with children (cid:151) It also promotes local agricultural are provided locally. products: all from a disused stable and hence restoring part of the architectural heritage of the village. food and household products, Water recycling in the Canary Islands An obstacle to development in the Canary Islands is the shortage of water, is high price and the unequal distribution of water resources in the islands. More than 80 % of the available water comes from underground sources. These underground reserves have diminished in recent times, modifying the balance between extracted and rainwater sources and leading to a progressive increase in salination. On the islands with the lowest rainfall, it has been necessary to resort to desalination of seawater in order to supply the population. Agriculture consumes 60 % of available water. The shortage of water and its poor quality, along with the competition from an expanding tourist sector are two of the causes of the scaling back of agricultural activity. On the island of Tenerife, a study has examined the technical feasi- bility and economic viability of a more complete purifi- treated water and its use in different areas. cation of the authorities decided to invest, Following the study, with the financial assistance of the EAGGF, in the estab- lishment of a remote-controlled water distribution network, tertiary purification treatment and the filtration of irrigation water. This investment allows the agricultural sector access to a new supply of water. It has also contributed to tourism, the maintenance of green spaces and the improvement in the quality of life. C. Synergies between urban and rural areas: balanced development If the Union is to enjoy the best possible conditions for devel- opment, towns and rural areas must complement each other. The synergies to be encouraged in each region assisted by the Structural Funds must be those that favour the multi-centred and hence more balanced territorial development of the European Union. Rural areas must have access to the specialist services that only urban centres can offer. City dwellers need to be provided with the food supplies and natural, tourism and recreational facilities which rural areas can offer. The contribution of the Structural Funds to integrated terri- torial development must be backed by support for networks between urban centres and improved links between towns and rural areas designed both to prevent duplication of effort on identical work and to promote a model of land use which is more effective and more respectful of sustainable development. the role of urban centres, particularly The development of medium-sized ones, in thinly is of populated areas. They are the only service reception points for economic viability. Coor- which reach the thresholds dination with national programmes may also prove necessary where regions are only partially covered by programmes supported by the Structural Funds. importance special The geographical size of the regions covered by Objective 1 is such that it provides an adequate framework in which to meet the need for an overall approach in which urban and rural areas are complementary. That approach should also be used in the Objective 2 areas, where it will be facilitated by the use of the single programming document for the new Objective 2. This should be used to prepare strategies which seek a balance between rural and urban areas at regionale level. 22. 9. 1999 EN Official Journal of the European Communities C 267/21 in the various programming documents of The inclusion of integrated approaches to urban or rural devel- the opment regional Structural Funds does not programmes. These approaches, which take account of the the various parts of a single region, specific features of for global and integrated should rather provide a basis regional strategies. remove the need for They should contribute to the creation of areas of dynamic scale, principally through integration on an international infra- highly effective trans-national, national and regional structure. The should Interreg III Community complete this process by supporting trans-European, and particularly cross-border, cooperation to achieve the balanced development of the Union’s territory. initiative SENSITIVE AND COASTAL AREAS When structural programmes cover sensitive and coastal areas, it is important that they, in conjunction with other sectoral programmes, ensure the sustainable development of such areas. Within the framework of a regional economic strategy, structural funds could support actions necessary for the protection of these areas, including the funding of access infrastructure and the promotion of (cid:145)nature(cid:146) tourism. for actions coastal management Priority encompass: reduction of pollution and rehabilitation of degraded areas, control of beach fronts, excavations and other activities altering water basins and the sea floor, and the conservation of natural habitats. D. Specific measures for fisheries areas Structural policy in the fisheries sector (including aquaculture and the processing and marketing of their products) is a vital element of the common fisheries policy. It seeks to guide and speed up the restructuring of the sector through the rational- isation and modernisation of the means of production and other measures which will have a permanent impact. Regarding the fishing fleets, programmes must take account of the following priorities: (cid:151) The multi-annual guidance programmes for the fishing fleets, (MAGP IV until 2001 and MAGP V subsequently) remain the reference basis for the framework for fisheries capacity. Hence, priority must be given to their implemen- tation (including that of the future MAGP V). (cid:151) It is also necessary to avoid undesirable effects. Thus, insuf- ficient renewal could lead to the widespread ageing of the fleet; on the other hand, technical progress could wipe out reductions in capacity, even resulting in a worsening imbalance between the fishing effort and resources. (cid:151) At the technical level, priority must be given to the use of improving the the fish taken and preserved on board and more selective fishing gear and methods, quality of improving working conditions and safety. In the rest of the productive sector (aquaculture, the processing of products), collective measures which devote attention to the interests of the sector have a much greater priority than investment in firms. Combating environmental problems, and disposing of improving product quality surplus or under-exploited species are also priorities. the whole of Structural policy in the fisheries sector is also a component of cohesion policy: on the one hand, Community aid the sectoris concentrated chiefly in the regions eligible under the territorial Objectives of the Structural Funds; on the other, it seeks to provide a response to the socio-economic difficulties of coastal areas caused by the restructuring of the sector by creating jobs and diversifying activities in the most promising areas through joint assistance from various Structural Funds. It is therefore essential to ensure the synergy of the different Structural Funds in order guarantee the effectiveness of their combined impact. Projects in support of the fisheries sector Processing of products (Belgium) In Antwerp, a dozen fish processing companies, located in run-down buildings in the city centre reorganised into four new firms on an industrial site close to means of transport. Since then, the turnover of the new firms has increased significantly. Aquaculture (United Kingdom) Based in Argyll (Scotland) West Coast Aquaculture Ltd was assisted to construct and equip a new, state of the art water re-circulation system to on-grow juvenile turbot and reliance on farmed Atlantic diversify to avoid over salmon. By the end of the year 2000 the company expects to be harvesting some 450 tonnes of turbot per year. Collective exploitation of the shoreline (Spain) In Galicia, many projects aimed at the collective exploi- tation of the shoreline by shore fishermen have allowed the improved conservation of the resource (bivalves) and quality control of fish products