# CE2004084EN.01057501.xml

| 3.4.2004 | EN | Official Journal of the European Union | CE 84/575 |
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3.4.2004

EN

Official Journal of the European Union

CE 84/575

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(2004/C 84 E/0652)

WRITTEN QUESTION E-0357/04

by Ewa Hedkvist Petersen (PSE) to the Commission

(12 February 2004)

Subject:   Sparsely populated areas in future regional policy

Subject:

Living and running a business in sparsely populated areas entail higher costs for day-to-day activities. Long distances to work, goods and services, both within the region concerned and other regions, together with inadequate infrastructure mean that the population of such areas have a very high cost of living.

In view of this situation, will the Commission give sparsely populated areas special treatment in its proposal on the new structural funds by granting higher levels of support?

Will the Commission propose that sparsely populated areas receive favourable treatment in terms of the scope for state aid?

Answer given by Mr Monti on behalf of the Commission

(22 March 2004)

(22 March 2004)

Under the present Commission Guidelines on national regional aid laying down the State aid rules for regional development purposes for the period 2000-2006 (1), regions characterised with low population density, i.e. regions with less than 12,5 inhabitants per square kilometre (km2), receive a favourable treatment and enjoy an investment aid ceiling of 30 % net, unless they fulfil the 75 % gross domestic product (GDP)/capita test, and have then access to use higher aid intensities. Moreover, in the low population density areas, operating aid in the form of aid to offset additional transport cost is also allowed.

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The Commission is currently reviewing its rules on regional State aid for the period after 2006. A decision on the new regional aid guidelines is likely to be adopted in 2005.

With regard to low population density areas, no substantial change as compared to the present situation to the detriment of these areas is envisaged at this stage of reflection. Low population density areas are likely to continue to be eligible for regional aid, including aid to offset additional transport costs that affect the economic activity in the regions concerned. Furthermore, the Commission is aware of the continued depopulation that the most arctic regions are suffering from and is examining whether other types of operating aid can be authorised where such aid is necessary to stop depopulation, provided that the aid does not adversely affect trading conditions to an extent contrary to the common interest.

Moreover, the proposal for the reform of the cohesion policy, as laid down in the third cohesion report, takes into account the situation of regions suffering from geographical handicaps, including sparsely populated areas, thus hindering their accessibility and their development. It is therefore proposed that these territories should actually benefit from an increase in the maximum Community contribution. Furthermore, the allocation of the resources for the regional competitiveness and employment priority (new objective 2) should take account of this by using ‘territorial’ criteria, thus reflecting the relative disadvantage of these regions. Member States should thus ensure that the specificities of these regions are taken into account when targeting the resources within regional programmes.

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(1)  OJ C 74, 10.3.1998.

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