EN    EN EN 
EN    EN  COMMISSION OF THE E UROPEAN COMMUNITIES 
Brussels, 20.10.2008 
SEC(2008) 2649 
  
COMMISSION STAFF WORKING DOCUMENT 
Annex to the 
 
19TH ANNUAL REPORT ON IMPLEMENTATION OF  
THE STRUCTURAL FUNDS (2007) 
 
PARTS 1 – 3 
 
  
{
COM(2008) 659 final} 
EN 2   EN TABLE OF CONTENTS 
Part 1: General anal ysis of activities......................................................................................... .4  
1. Introduction................................................................................................................ .. 4 
2. Analysis of implementation ......................................................................................... 5 3. Consistency and Coordination ................................................................................... 13 4. Evaluations................................................................................................................. 19 
5. Controls.................................................................................................................... .. 21 
6. Committees Assisti ng the Commission ..................................................................... 28 
Part 2: Analysis by Member State............................................................................................ 31 
1. Belgium..................................................................................................................... . 31 
2. Cyprus ...................................................................................................................... .. 36 
3. Czech Republic .......................................................................................................... 38 4. Germany..................................................................................................................... 42 
5. Denmark..................................................................................................................... 48 
6. Greece ...................................................................................................................... .. 51 
7. Spain....................................................................................................................... .... 56 
8. Estonia..................................................................................................................... ... 63 
9. France...................................................................................................................... ... 66 
10. Italy ...................................................................................................................... ...... 70 
11. Ireland .................................................................................................................... .... 78 
12. Latvia..................................................................................................................... ..... 83 
13. Lithuania .................................................................................................................. .. 86 
14. Luxembourg ............................................................................................................... 89  
15. Hungary.................................................................................................................... .. 92 
16. Malta ...................................................................................................................... .... 95 
17. Netherlands ................................................................................................................ 97 
18. Austria.................................................................................................................... .. 100 
19. Poland..................................................................................................................... .. 105 
20. Portugal ................................................................................................................... . 109 
21. Slovakia................................................................................................................... . 112 
EN 3   EN 22. Slovenia................................................................................................................... . 116 
23. Finland.................................................................................................................... .. 121 
24. Sweden ..................................................................................................................... 126 
25. United Kingdom....................................................................................................... 131 
Part 3: List of Major Projects ................................................................................................. 137 
EN 4   EN Part 1: General analysis of activities 
1. INTRODUCTION  
As required by Article 45(2) of Council Regulation (EC) No 1260/1999, this report 
sets out to give an overview of the implementation of the Structural Funds 
(2000-2006) in 2007.  
2007 was the eighth year in which Structur al Funds programmes and projects for the 
2000-2006 programming period were implemen ted. Altogether, 226 Objective 1 and 
Objective 2, 47 Objective 3, 12 FIFG (outside Objective 1), 81 INTERREG, 
71 URBAN, 27 EQUAL, 73 LEADER+ a nd 122 Innovative Action programmes 
were managed in 2007. 
Even though no further commitments could be  made in 2007, sums were disbursed in 
respect of 2000-2006 Structural Funds a ssistance. Implementation of the 2007 budget 
was excellent. In terms of payment appropriations, 99.9% of ERDF, 99.9% of ESF, 
100% of EAGGF and 97.5% of FIFG re sources were used (compared to 
99.9% ERDF, 99.9% ESF, 99.9% EAGGF and 84.16% FIFG in 2006). 
Member States and regions with programme s of high execution rates were able to 
start preparing for closure. The gene ral framework for the closure of 2000-2006 
Structural Funds assistance was set out in Commission Decision C(2006)3424 
in 2006. 
In addition to implementation of 2000-2006 Structural Funds programmes and 
projects and preparation for their closure,  the Commission was also heavily involved 
in planning and programming the 2007- 2013 period in 2007. Negotiations were 
concluded on a total of 27 national st rategic reference frameworks and 
428 programmes (311 ERDF, 117 ESF).1 
Efforts were continued to improve th e quality of programmes and projects 
co-financed by the Structural Funds, an objec tive which also covers reliable financial 
management of programmes. Better financ ial management, control and evaluation 
also made for good governance of co -funded programmes and projects. 
The partnership model, set up between th e Commission and the na tional and regional 
authorities in the Member States to im plement the programmes, has produced very 
high quality results. The case of Ireland is a good example, where the national 
government decided to apply the same pa rtnership structure used to implement 
ERDF-financed programmes in the execu tion of national development funds. 
To demonstrate the added value of Europ ean cohesion policy, an ex post evaluation 
of Objectives 1 and 2 programmes for 2000-2006 was launched in 2007. This will be carried out by way of 12 phased and interlinked evaluations, which will be 
                                                
 
1 See Communication on the results of negotiations on strategies and programmes for the programming 
period 2007-2013. 
EN 5   EN completed by the end of 2009. Preparatory work was also undertaken on the design 
of ex post evaluations of INTERREG and URBAN. 
As part of the “ Regions for Economic Change”  Initiative, the Commission has been 
active in highlighting good pr actice projects in different fields of economic 
modernisation through network activitie s and encouraging dissemination to 
mainstream operational programmes. The ke y principles of spreading good practice 
and linking networks to the mainstream were incorporated into the texts of the INTERREG IVC and URBACT II programmes adopted in autumn 2007. Two major 
conferences were organised under this banne r, namely, “Regional policy responses to 
demographic challenges” in January 2007, and “Fostering competitiveness” 
in March 2007. The “RegioStar Awards for Innovative Projects” initiative launched 
in March 2007 was also a success, attracting applications from more than 70 regions. 
Two conferences took place in 2007 for the network program mes, ERIK+ and 
IANIS+, which were designed to gather  and transfer experience on innovation 
in technology and the information society. 
October 2007 heralded the “European week of regions  and cities” OPEN DAYS, 
under the slogan “ Making it happen: regions deliver growth and jobs” . With more 
than 5500 participants from 34 countries, th is was the biggest event ever organised 
on European Cohesion Policy; it was held jointly with the Committee of the Regions and 212 regions and ci ties across the EU. 
On 28-29 June 2007, Potsdam hosted the conference ”50th Anniversary of the 
European Social Fund — Review and Prospects”. This was the official 
50th anniversary event for the European Soci al Fund. It also marked the closing of a 
series of political conferences organise d by the Federal Ministry of Labour and 
Social Affairs under the German EU Pres idency. In organising this high-level 
conference, the German Pres idency acknowledged the impo rtance of the European 
Social Fund. Looking to the new program ming period, which kicked off in 2007, the 
conference accentuated the opportunities, chal lenges and prospects for the ESF in an 
enlarged European Union. The Commission also produced a book tracing the history 
of the European Social Fund in the co ntext of Europe’s economic and social 
development over the last 50 years. 
2. A
NALYSIS OF IMPLEMENTATION  
2.1. Budget Implementation 
2.1.1.  ERDF 
In terms of budgetary execution, 2007 was an exceptional year for 
DG Regional Policy. The overall execution ra te of ERDF paym ent appropriations 
reached 99.9% (the same result as in 2006), while the level of payment 
appropriations was higher than ever  (EUR 21.4 billion compared with 
EUR 16.0 billion in 2006). 
The high level of payment appropriations results from the fact that in 2007 two 
programming periods were managed: further interim payments for the 2000-2006 period and, for the first time, advance pa yments for programmes financed under the 
EN 6   EN 2007-2013 financial perspective. The vast majority (428 out of a total 455) of 
2007-2013 operational programmes (98% in value, i.e. operational programmes 
worth a total of EUR 340 b illion out of EUR 347 billion for the whole programming 
period) were adopted by the Commission before the end of 2007. 
For Objectives 1 and 2 and Commun ity Initiatives for the period 2000-2006, 
DG REGIO achieved full implementation of  payment appropriations. To do so, 
a number of internal transfers from Obj ective 2 to Objective 1 had to be made, 
following the suspension of certain payments to the UK as a result of audits. Moreover, Objective 1 programmes made a higher demand on reimbursements than 
was initially forecast, thereby offsetti ng advance payments to new programmes 
adopted in late December 2007 or postponed to 2008. 
At the end of 2007, outstanding commitments (RAL) from previous years on which 
payments were still to be made to talled EUR 28.0 billion, compared to 
EUR 45.8 billion in 2006. 
ERDF total commitments relating to  2007-2013 operational programmes amounted 
to EUR 27.2 billion (98.6%). The remain ing appropriations not committed in 2007, 
due to delays in the adopti on of operational programmes,  have been carried over 
(EUR 117 million) or reprogrammed (E UR 378 million) to 2008 (total of 
EUR 495 million) . 
Also in 2007, the “n+2” rule (committed Stru ctural Funds must be invested, properly 
spent and accounted within two years of th e year of commitment) proved to be an 
efficient tool for encouraging Member States  to devote resources and effort to timely 
execution of European programmes. After an alysing the exceptions granted under the 
“n+2” rule (State aid, major projects, et c.), the latest internal forecasts of 
DG Regional Policy suggest that the risk  of possible decommitments should not 
exceed 0.7% of 2005 commitments (around EUR 140 million).  
The pace of implementing the Structural Funds proves that Cohesion Policy works. 
Throughout 2007, the ERDF absorption rate (payments vs. commitments) for all 
Member States reached 79%. New Member  States achieved record absorption 
figures, receiving EUR 3 billion in 2007, near ly as much as they were reimbursed 
altogether in 2004, 2005 and 2006 (EUR 3.5 b illion). This means that by the end of 
2007 the new Member States have achieved average consumption of 71% of their financial allocations for the period 2004- 2006, whereas the average ERDF absorption 
rate for the EU-15 (period 2000-2006) was 85%.  
2.1.2.  ESF 
The overall execution rate of ESF paymen t appropriations reached 99.9% (the same 
as in 2006), while the level of payment a ppropriations was higher than last year 
(EUR 11.3 billion compared with EUR 9.3 billion in 2006). 
2007-2013 programming period 
ESF total commitments relating to 2 007-2013 operational programmes amounted to 
EUR 10.486 million (99.88%). The remaining appropriations (EUR 13 163 237) not committed in 2007 concern the French OP “Martinique Region”, which was 
EN 7   EN not expected to be adopted in 2007. These appropriations are carried over to 2008 for 
further consumption.  
The cumulative consumption of payment appropriations during January-December 
amounted to EUR 1 513 million. This corresponds to 99.87% of annual payment appropriations (EUR 1 515 million). The di fference (EUR 1 957 184.6) consists of 
the advance payment for the French OP “Martinique Region” and will be paid in 2008. 
2000-2006 programming period 
Application of the “n+2” rule involv ed 12 programmes at the end of 2007 and 
EUR 92.2 million. The risk of possible decommitments should not exceed 0.8% of 2005 commitments.  
The total outstanding commitments at  the end of 2007 stood at EUR 12 billion 
(compared to EUR 22.9 billion in 2006). 
At the end of 2007, outstanding commitmen ts from previous programming periods 
(RAL) totalled EUR 179 million, compared with EUR 204.6 million at the end of 2006. 
2.1.3.  EAGGF 
The total amount paid in 2007 was EUR 3.4 billion. The financial execution rate of 
EAGGF payment appropriations for rural development programmes for the period 
2000-2006 was 100.0%. 
As rural development operational programmes are not part of the Structural Funds in 
the new programming period 2007-2013, there is  a slight decrease in the overall 
amount paid out in 2007 compared with the previous year (i.e. EUR 3.6 billion). 
A number of internal transfers had to be  made to achieve full financial execution, 
mostly from the new European Agricultural Fund for Rural Development (EAFRD). 
In 2007, there are no commitments for rural development programmes relating to the 
2000-2006 period. 
At the end of 2007, outstanding commitments  from previous years (RAL) totalled 
EUR 3.9 billion, compared with EUR 7.3 billion in 2006. 
The first estimates as regards the “n+2 ” rule (applying at the end of 2007 to 
commitments made in 2005 or before) show that the risk of possible decommitments 
concerning rural development funds is around EUR 70 million. 
2.1.4.  FIFG 
Budgetary implementation in 2007 was highly satisfactory, 97.5% of payment 
appropriations being executed. The paymen t rate reached 96.44%  in Objective 1 
regions and 99.96% in regions  outside Objective 1.  
EN 8   EN The total RAL for the FIFG at the e nd of the year 2007 was EUR 811 million 
(compared to EUR 1 336 million in 2006).  
As regards implementation of the “n+2 rule”, estimated decommitments are around 
EUR 54 million for 2007.  
2.2. Programme Implementation 
2.2.1.  Objective 1 
Expenditure on Objective 1 programmes followed much the same path as in 2006 
(for details, see part 5). Objective 1 programmes focuse d on basic infrastructure 
projects (41.4%), with over half of all investment in this category spent on transport infrastructure (53%). More than a thir d (33.5%) of Objective 1 resources were 
invested in the productive envi ronment, where the focus c ontinues to be on assisting 
SMEs and the craft sector (28.6%). Projec ts geared to human resources account for 
23.2% of resources in Objective 1 regions. The main areas of assistance in this field 
are almost equally split between labour market policies (31.3%) and education and vocational training (31%).  
2.2.2.  Objective 2 
The main focus of programmes in Objec tive 2 regions conti nues to be on the 
productive environment, with over half of all financial resources devoted to this 
category (55.8%). Within this field, assistance to SMEs and the craft sector is the most dominant (56.6%). The second most suppor ted field is basic infrastructure, with 
39.6% of all Objective 2 resources. Un like Objective 1 programmes, the most 
important areas in financial terms are pl anning and rehabilitati on of areas (45.4%). 
In the category of human resources (10.1% of  all investment in Objective 2 regions), 
workforce flexibility, entrepreneurial activity, innovation, information and 
communication technologies are the main fields of investment (30.8%).  
2.2.3.  Objective 3 
The main emphasis of ESF programme im plementation in 2007 continued to be 
support for the European Employment Stra tegy, particularly measures aimed at 
improving employability in th e labour market (32%), lifelong learning (27%) and 
equal opportunities (6%). There was still  a marked difference in concrete 
implementation of programmes, as meas ured by financial execution, between the 
EU-15, where long-established programmes continued to be implemented, and the 
EU-10, where some Member States are expe riencing considerable difficulties in 
getting certain projects and measures under way.  
2.2.4.  Fisheries outside Objective 1 
Implementation of the structural policy in  the fisheries sector improved in 2007. 
This was reflected in the financial execu tion of FIFG operational programmes, which 
helped to achieve the objectives  of the Common Fisheries Policy. 
EN 9   EN 2.2.5.  Community Initiatives 
2.2.5.1.  Interreg 
INTERREG supports cross-border, transn ational and interregional cooperation 
designed to encourage harmonious, balanced and sustainable development of the EU 
territory. By the end of 2007, the 81 INTERREG III / Neighbourhood Programmes 
had selected about 15 000 projects and netw orks designed to reduce the effects of 
national borders, language barr iers and cultural di fferences, to develop border areas, 
and to support strategic development and terr itorial integration acr oss larger zones of 
the Union, including better integration wi th its neighbours. Th e effectiveness of 
regional development policies and instrume nts has also been improved through the 
sharing of good practice and exchange of experience. 
The first 54 INTERREG III programmes were adopted in 2001 and were followed by 
15 programmes in 2002 and 3 in 2003. Enlarg ement increased the overall number of 
EU borders and resulted in 9 new progr ammes being adopted in 2004, many of 
which are Neighbourhood Programmes. In 2004, most programmes were amended to 
take account of the mid-term evaluations and the distribution of indexation funds. 
Changes were also necessary for some programmes due to enlargement and/or 
integration of the Neighbourhood Programme  concept. N+2 decommitments and 
updates of the mid-term evaluations made  for further programme amendments in 
subsequent years. 
By the end of 2007, the payment execution rate was about 68%. Due to the more 
specific and challenging nature of cooperation pr ogrammes and projects, 
decommitments under the “n+2” rule could not be avoided for some programmes. 
While EUR 63 million is still under furthe r investigation, up to EUR 18.5 million 
will have to be decommitted, adding to the EUR 113 million already decommitted 
between 2003 and 2006. 
Progress continued on 81 INTERRE G III/Neighbourhood programmes in 2007. 
The Commission continued its active follow-up in close cooperation with the authorities responsible for programme impl ementation, which partly overlapped this 
year with the start-up and early implementation of the 2007-2013 cooperation 
programmes.  
As programmes were approaching the end of the programming period, limited funds 
were available for new projects, and fewer monitoring and steering committee 
meetings were organised compared with prev ious years. To make for more efficient 
spending of funds, and thus also prepare for programme closure, 65 amendments to 
programme complement were made. 
Programmes have been closely monitored to ensure efficient implementation, in 
particular as regards financial management . There have been regular contacts with 
the implementing authorit ies, including on dissemi nation of good practice. 
In addition to this, the INTERACT support pr ogramme has continued to contribute to 
efficient and effective implementation of  INTERREG III programmes by organising 
a large number of best practice events and producing management manuals for 
cooperation.  
EN 10   EN 2.2.5.2.  Equal 
In 2007, good progress continued to be ma de on 27 programmes and more than 
3 300 projects under Equal. Around 30 mee tings of Equal monitoring committees 
were held during 2007. They focused on strategies and action to mainstream good practice that has been developed and validat ed. Administrative i ssues such as annual 
reports and transfers of appropriations betw een programme priority axes were also 
discussed during these meetings. Two coordination meetings of the Equal 
managing authorities took place in Bru ssels during 2007. As regards financial 
implementation, six Member States were una ble to use part (between 8% and 49%) 
of their 2005 budgetary comm itment (“n+2” rule).  
In an effort to maximise the results of the Equal programmes and projects, and thus 
steer policy and practice, including the shape of nati onal and regional 
ESF programmes for the programming peri od 2007-2013, the Commission continued 
to work in partnership with the Memb er States on the work launched in 2006. 
This work covered policy issues such  as asylum seekers, diversity and 
empowerment, youth employment, the (re) -integration of ex-offenders, social 
economy, inclusive business creation, and media and diversity, together with 
management principles (partnership, transnational cooperation, innovation and 
gender mainstreaming). This mainstreami ng work concentrated on gathering and 
validating good practice in new methods of delivery, on supporting EU mainstreaming platforms for the lessons learnt and on disseminating information on 
the achievements of Equal through the E qual website and the Equal newsletter. 
The work of the EU mainstreaming plat forms was completed in 2007 by closing 
conferences bringing together decisions-makers, representatives of Equal and ESF managing authorities, representatives of Equal Development Partnerships and major 
players in the respective fields. These confer ences concentrated in particular on ways 
of taking forward the successful approaches  that have been pioneered under Equal. 
There was also a strong will to continue , within the context of the new ESF 
programming period, with what these mainstreaming platforms had so successfully started, namely the creation of a stable an d real link between pe ople and projects on 
the ground and policy issues at  EU and national level.  
To help shape transnational cooperation in the new ESF programmes, the 
Commission organised a semi nar at the beginning of 2007, which brought together 
government representatives from all Memb er States in charge of planning and 
implementing the new ESF programmes.  The Commission took on board the 
recommendations from this seminar to draft an action plan to faci litate transnational 
and interregional cooperation in the ESF. The first step was taken at a second seminar in the spring where Member St ates and regions agreed to establish a 
formal network of contact points. A kick -off meeting of the network of nominated 
contact points for transnati onal cooperation was held in  September 2007 to ensure 
that effective mechanisms and procedures to make transnational cooperation work 
were put in place. Fifteen workshops on th e Equal programme were organised during 
the European Week of Regions and C ities (“Open Days”) in October 2007.  
EN 11   EN 2.2.5.3.  Urban  
Work continued in 2007 on the manage ment of the 71 operational programmes 
implementing the URBAN Community Initiative by way of annual reports, monitoring committees and annual meeti ngs. Programmes management meant not 
only the follow-up of financial implementati on but also ensuring the continuity of the 
“URBAN” methodology and approach. There was active follow-up of the URBACT I programme, including the launc h of two fast track pilot networks. 
The URBACT II programme, one of the main instruments of the Regions for 
Economic Change initiative, was approve d and launched. URBACT has developed 
20 networks and 6 thematic working groups , and also working groups bringing 
together several networks ar ound a particular theme. The programme is in its final 
phase of closure. A specific tool was created for the URBACT programme to 
exchange knowledge on integrated urba n development between experienced city 
experts (city managers, projec t/programme leaders, external consultants) and cities 
with limited experience in that field. Th e Support for Cities In itiative was conducted 
between September 2006 and June 2007, and involved 43 cities across eight Member States. 
In three years, URBACT has become the framework for exchange and reflection on 
urban issues and problems not only for de cision-makers in cities, but also for 
regional authorities, Member States , universities and research bodies. 
The programme promotes territori al, sectoral and disciplinary 
decompartmentalisation between cities and also within the city. In the mid-term 
evaluation (12/2005), URBACT was describe d as “a highly relevant initiative for 
Europe’s cities”. URBACT is already a useful tool for mutual learning among 
policy-makers, technicians and others. 
2.2.5.4.  Leader+ 
The Community Initiative Leader+ consists of three actions: implementation of local 
development strategies by public private partnerships, cooperation between rural 
territories and netw orking. 73 Leader+ programmes for the EU-15 were approved for 
the period 2000-2006. Recently acceded EU Member States had the option of integrating Leader+ type measures into  their EAGGF Objective 1 programmes. 
Local development strategies  
2007 saw a significant accelerati on in project commitment. A survey made at the end 
of 2007 showed a total number of 79 953 appr oved local projects. The average total 
budget for local ‘action 1’ projects is EUR 54 000. 
The physical indicators for some progra mmes clearly show the success of the 
programmes already, e.g. 
– 18 500 jobs created in 4 Member St ates (Spain 12 042; Finland 3 075; 
Ireland 2 500; Greece 862; Sweden 405);  
– micro-enterprises created: Spain 2 7 17; Greece 1 794; Finland 539; England 500; 
– 43 000 people trained in Ireland; 26 7 32 in Finland; 12 824 in Sweden; 
EN 12   EN – 5 400 community services and facilities  assisted or created in England. 
As regards management of the programme s, closure dates for local action groups 
range between April and September 2008. 
Cooperation  
At the end of 2007, 83.25% of the 894 lo cal action groups were involved in 
inter-territorial coopera tion projects and 68.51% in  transnational cooperation 
projects. This is a very positive result, b earing in mind the difficulty in drawing up 
concrete joint actions betw een different territories.  
The average total budget for cooperation project s is EUR 90 000 (for  inter-territorial 
projects the average is EUR 95 000, fo r transnational EUR 74 000). The most 
common issues covered by cooperation projec ts are tourism, ag riculture and food, 
cultural heritage and knowledge ma nagement, education and training.  
A European database of approved transnat ional cooperation projects established by 
the Leader+ European Observatory lists 383 projects (status at the end of 2007). 
This is far beyond the achievements of  Leader II in th e period 1994-1999 
(around 250 projects).  
Networking  
Most of the Leader+ National Networks w ill end their activitie s in 2008. In some 
Member States, this closure date has been brought forward due to the start of the new 
national rural development ne tworks funded by the Europe an Agricultural Fund for 
Rural Development (EAFRD) for the period 2007-2013.  
Some national networks have organised final Leader+ even ts (Austria and Sweden). 
National networks are working on the leg acy of Leader+. In the Netherlands, an 
evaluation of the Network Unit showed its added value in improving cooperation 
between government administration and ci vil parties and assisting local action 
groups.  
Dissemination and transfer of know-how is a core element of most National Network 
Unit programmes: an important area of act ion relates to trai ning and pedagogical 
actions on Leader and local development methods. 
The European Leader+ Observatory iden tified 264 good practices in collaboration 
with national networks. A first publicati on setting out twenty-one examples of 
good practice was issued in 2007. 
The Leader+ European Seminar in Borgo (Corsica) on 24-26 April 2007 focused on 
the issue of local action group mana gement. 300 representatives from 
25 Member States, including 150 local action groups, participated in this event.  
A Leader+ final European conferen ce took place in Evora, Portugal, 
on 22-23 November 2007: presentations were ma de of sixteen rural territories chosen 
from sixteen Member States. This event aimed to communicate clear messages about the legacy of the Leader initiative fo r the programming period 2007-2013, where the 
Leader method has been integrated in to rural development programmes.  
EN 13   EN 2.2.6.  Innovative Actions 
2.2.6.1.  ERDF 
DG Regional Policy also managed 122  Regional Programmes of Innovative Actions 
(of which 26 were closed in 2007), which help  to promote strategic innovation in the 
regions, by experimenting with innovative methods an d practices designed to 
improve the level of innovation and the quality of EU assistance under three themes: knowledge and technological innovation, information society and sustainable 
development. 
2.2.6.2.  ESF 
During 2007, the six remaining projects  from the call for proposals on 
“Local Employment Strategies and Innovati on” were closed. DG Employment also 
managed 80 transnational projects selected  under the three rounds of the last call on 
“Innovative approaches to the manageme nt of change” (22 closed in 2007). 
Projects support the development and testi ng of innovative actions  to anticipate and 
manage change in two priority areas: ma nagement of restructuring and management 
of demographic change. In addition, thirteen projects (of which five were closed in 2007) are aimed at mainstreaming the results  of previously se lected projects under 
the call on “Transfer and dissemination of i nnovation from ESF Article 6 projects”.  
2.2.6.3.  FIFG 
DG Maritime Affaires and Fisheries managed 29 innovative action projects 
(of which the last two were closed in 2007). 
3. C
ONSISTENCY AND COORDINATION  
3.1. Consistency with other Community policies 
3.1.1.  Competition policy 
Article 9(5) of Council Regulation (EC) No 1083/20062 requires operations financed 
by the Funds to comply with the provisions  of the Treaty and of acts adopted under 
it. Article 9(2) of that Regulation requir es the Commission and the Member States to 
ensure that assistance from the Funds and th e Member States is consistent with the 
activities, policies and priorities of the Community. 
Under the provisions of Regulation 1083/ 2006, the approach to the control of 
State aid issues in the ne w Structural Funds is funda mentally different to the 
approach applied for the programming period 2000-2006.  
Under the current legislative framework, full responsibility for the compliance of 
Structural Funds operations with State aid ru les lies with the Member State, and in 
particular, with the managing authorities.  
                                                 
2 Council Regulation (EC) No 1083/2006 of 11 July 2006 laying down general provisions on the 
European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing 
Regulation (EC) No 1260/1999; OJ L 210 of 31.7.2006; hereinafter: “Regulation 1083/2006”. 
EN 14   EN Article 60 of the Regulation, for exam ple, makes the managing authorities 
responsible, amongst other things, for en suring that operations comply with 
applicable Community rules (thus Community State aid rules) and national rules for the whole of the implementation period.  
In addition, Articles 70 and 71 of Regulation 1083/2006 also require Member States 
to ensure that the relevant control mech anisms are put in place, these consisting, 
inter  alia, of setting up certifying and audit authorities/bodies or a reporting 
obligation to allow effective ex-post contro l of the State aid re sponsibilities of the 
Member States. 
The OP provisions should explicitly refl ect the new Member St ates’ responsibilities 
in the area of State aid. To this  end, the decision approving the 
Operational Programmes themselves should include the following clause: 
“The Managing Authority is responsible for ensuring that any State aid under the 
Programme complies with the procedural and material State aid rules applicable at 
the point of time when the public support is granted”.  
Procedural compliance implies an obligati on on the part of the Member State to 
notify the Commission of any plans to grant new aid and to await the Commission’s 
authorisation before the measure is put in to effect. The materi al criteria of the 
compatibility of aid measures with EC ru les are laid down by the Commission in the 
form of different “frameworks”, “guidelines” and “communications”.  
In 2007, DG Competition issued an updated vademecum, which gives an overview 
of different procedural and material rules applicable to State aid and summarises the 
State aid legislation that is considered the most relevant for Structural Funds 
operations. It is available on the DG Competition website: http://ec.europa.eu/comm/competition/st ate_aid/legislation/legislation.html
.  
The new approach, with the new State aid responsibilities of the Member States, 
however, in no way affects the possibility  of Commission action provided for by the 
procedural Regulation (EC) No 659/1999,3 which includes the examination of 
allegedly non-notified (unlawful) measur es and the recovery of incompatible 
non-notified aid co-financed by the Structural Funds. 
3.1.2.  Internal market 
Regulation (EC) No 1083/2006 al so requires Member States to verify that operations 
financed by the Funds comply with EU Public Procurement Directives. Where the Commission learns of any breach of EC legi slation or where audits demonstrate that 
this is the case, it will take appropri ate action. In the progr amming context, the 
Commission requires information from the Member States in the form of annual 
reports on the programmes. The Directorat es-General for Regional Policy and for 
Internal Market have helped to clarify the legal treatment of concessions dating before the accession of new Member States, on 1 May 2004, that were not in compliance with the EC acquis . A new regulatory framework for public 
                                                
 
3 Council Regulation (EC) No 659/1999 of 22 March 1999 laying down detailed rules for the application 
of Article 93 of the EC Treaty, OJ L 83, 27.3.1999. 
EN 15   EN procurement law and the awar ding of concessions has been  introduced in order to 
provide greater legal certain ty both for the private and for the public sector. 
3.1.3.  Environment 
In the context of the adopti on of Cohesion Policy NSRFs and 
operational programmes for 2007-2013, the priori ties are correct application of the 
Strategic Environmental A ssessment (SEA) Directive, providing adequate 
investment for implementing the environmental acquis , addressing new challenges 
such as climate change and sustainabl e energy, and continuing to mainstream 
sustainable development as a horizontal principle. 
The focus with ongoing programmes continue s to be on supporting compliance with 
the Community acquis  in the field of urban wastewater, water supply, 
waste management and biodiversity. Other important areas of investment are in 
eco-innovation and rehabilitation of polluted soil. The promotion of 
sustainable development has continued through investments in environmentally-friendly transport and ener gy by introducing environmental criteria 
into project selection, and by pro-activel y ensuring compliance of projects with 
environmental legislation. 
3.1.4.  Transport 
Cohesion programmes continue to be the main source of Community support in 
transport, as introduced in the White Paper “European transport policy for 2010: 
time to decide” and the mid- term review published in 2006.  Accordingly, Funds have 
been used both in TEN-T projects and in projects supporting co-modality, energy efficiency in transport, intelligent transport systems and urban transport mobility. 
3.1.5.  Gender equality 
The Commission has worked to implement the “Roadmap for Equality between 
Women and Men”, reflecting th e Commission’s commitment to  this issue. In this 
context, gender equality and gender mainst reaming are cross-cutting issues linked to 
all programmes in the new Cohesion Po licy Period 2007-2013. A meeting of the 
High Level Group on Gender Mainstreaming in  the Structural Funds in June 2007 
underlined the importance of involving gender bodies in the design and implementation of programmes. 
3.2. Coordination of instruments 
3.2.1.  The Structural Funds and the Cohesion Fund 
Aid granted by the Cohesion Fund provides financing for transport infrastructure 
projects in the fields of trans-Eur opean networks and the environment. 
The Cohesion Fund enables the beneficiary Member States to channel significant 
public investment into these two fields of common interest, while meeting the objectives of reducing the budget deficits set out in the conve rgence and stability 
programmes drawn up as part of Economic and Monetary Union. 
EN 16   EN Following the enlargement of the Eur opean Union in Ma y 2004, the ten new 
Member States are covered by the Cohesion Fund. In the period 2000-2006, before the latest enlargement on 1 January 2007 to include Romania and Bulgaria, there 
were 13 beneficiary Member States. As a result of its economic growth, Ireland has 
not been eligible for the Fund since 1 January 2004. 
The principal instrument for coordina ting funding under the Cohesion Fund and the 
Structural Funds is the strategic referen ce framework (SRF), which covers the whole 
of the 2000-2006 period. Counc il Regulation (EC) No 1265/1999 amending Annex II 
to Regulation (EC) No 1164/94 provides that  “Member States shall also provide the 
results of the environmental impact assessment in conformity with Community legislation, and their consiste ncy with a general environmental or 
transport strategy at administrative unit or sector level”.  
The four “old” Member States benefiting from the Cohesion Fund presented their 
SRFs for the environment and transport sectors at the end of 2000. The ten new Member States submitted theirs during the fi rst half of 2004. Since then, decisions to 
finance projects by the Cohesion Fund have be en subject to a veri fication process to 
avoid duplication with programmes adopted under the Structural Funds. In addition, 
SRFs improve the complementarity between the two instruments.  
Thus, in certain cases, these SRFs form an  integral part of the programmes approved 
under the Structural Funds for the peri od 2000-2006; this improves coordination 
between funding under the Cohesion Fund and the Structural Funds. 
3.2.2.  The Structural Funds and the EIB/EIF 
Jessica — Joint European Support for Su stainable Investment in City Areas
 
With its focus on promoting sustainable i nvestment, growth and jobs in Europe’s 
urban areas, the JESSICA initiative is positioned at the core of the renewed Lisbon agenda. 
It introduces a cultu ral shift in how Structural  Funds support is delivered, 
encouraging recyclable forms of assist ance and moving away from the exclusive 
reliance on grants. 
JESSICA allows managing authorities to use some of their Structural Funds 
allocations to invest in Urban Developm ent Funds and thus to recycle financial 
resources in an effort to enhance an d accelerate investment in urban areas. 
A “Preliminary Evaluation Study” carried out by the EIB and the Commission on a 
sample of representative “old” and “new” Me mber States provided a first estimate of 
the potential demand and an overview of ex isting structures fo r urban investments 
under JESSICA. 
In a bid to highlight the a dvantages of increasing the us e of financial engineering 
instruments in the context of cohesion po licy and to raise awar eness regarding the 
possibilities offered by JESSICA, kick-off mee tings with representatives of the EIB 
and the Commission have been organised. 
EN 17   EN Up the end of 2007, these kick-off meeti ngs had already taken place in sixteen 
Member States. Meetings should be organi sed as soon as possible in the remaining 
Member States. 
The EIB will carry out detailed JESSICA ev aluations for Member States or regions 
genuinely interested in this initiative. Th e results will be made freely available to 
Member States, to help them organise urban investments funded by the ERDF and 
the private and banking sectors under the JESSICA initiative. 
JASPERS  
In 2005, the Commission agreed in principle with the EIB and the EBRD to step up 
cooperation, especially with the Member States that joined the EU in 2004 and 
Romania and Bulgaria. Because of the rela tive lack of experience of the national 
administrations with project preparation, it was agreed to establish a new joint 
structure called JASPERS (Joint Assistance to Support Projects in 
European Regions) to assist those twelve Member States with the preparation of 
major projects. JASPERS headquarters is  at the EIB in Luxembourg, but it was 
agreed to base the majority of the new expert staff to be recruited close to the beneficiaries in regional offices in  Warsaw, Vienna and Bucharest.  
The new facility came into operation in 2006, drawing on the core staff provided by 
the EIB and the EBRD (target input: 16 and 5 staff years respectively). Following an 
intense period of recruitmen t of new staff and finalisi ng legal agreements in 2006, 
JASPERS expanded rapidly during 2007 with the first of the new expert staff 
arriving in January, building up to cl ose to target size by mid-year.  
Action plans (work programmes) for 2007 we re agreed with all twelve of the 
beneficiary countries by mi d-year. The JASPERS regiona l office in Warsaw was 
formally opened in January, followed by the Vienna office in May and the Bucharest office in June. 
By the end of the year, JASPERS had st aff of 54 experts and a portfolio of 
266 projects and horizontal studies; 21 assi gnments were completed during the year. 
JEREMIE
 
The new JEREMIE initiative to improve access to finance for SMEs in the regions 
was launched jointly by the Commission a nd the EIB group in 2006. It made a very 
successful entry, in 2007, in the lives of the regions, the managi ng authorities, and 
the business and banking sector. JEREMIE is now part of the new generation of 
operational programmes approved in 2007, and has already been launched in several 
Member States and regions. 
In 2007, Greece was the first Member State to sign a funding agreement with the 
EIF, the JEREMIE holding fund tasks bei ng assigned by way of a grant. Hungary 
opted to implement JEREMIE, signing a funding agreement in 2007 with a national 
financial institution, designated by nationa l law, which is assigned the JEREMIE 
holding fund tasks. By the end of 2007, JEREMIE actions were scheduled in more than 85 operational programmes approved by the Commission for the programming 
period 2007-2013. Overall, about twenty Memb er States have already made clear 
EN 18   EN their intentions to implement JEREMIE,  while the other Member States were 
examining ways of joining the initiative at a later stage.  
The EIF is certainly a ke y player in implementing JEREMIE. About fifteen 
Member States are expected to implement JEREMIE, working jointly with the EIF, 
the latter acting as a holding fund, eith er at national or at regional level. 
The Commission finances 85% of the cost of gap analyses offered to regions and 
Member States, while the EIF co-finances  the other 15%. A total of 36 JEREMIE 
gap analyses, identifying gaps between supply and demand for access to finance by 
SMEs in Member States or region s, were completed by the EIF in 2007. 
DG REGIO and the EIF jointly carried out a wide-scale information campaign in 
2007 to promote and explain JEREMIE to Me mber States and regions, to SMEs in 
the regions and to European enterprise  and industry associations such as 
Euro-business, Euro-chambers, Eurada, et c. Several JEREMIE events and workshops 
involving regions and SMEs took place in  October in the context of the 
2007 OPEN DAYS. 
Resources from about 85 ERDF operational prog rammes that envisa ge the possibility 
to implementing the JEREMIE facility in the period 2007-2013 are put at around EUR 2.5 billion. The total public and private resources expected to  be invested under 
JEREMIE to enhance SMEs’ access to finance in the regions could reach EUR 15 billion for the period 2007-2013. This would be a considerable improvement 
on the estimated EUR 3 billion invested in the same objective by ERDF operational programmes for the period 2000-2006.  
Building on its Communication on financing SME growth (2006), 
on 23 November 2007, the Commission adopted an initiative for the development of micro-credit in Europe in the form of a Commission Communication to the 
Institutions. This communication was dr afted with the aim of developing a 
sustainable micro-credit market with the JEREMIE instrument and contributing to 
the growth and jobs objectiv e of the Lisbon agenda.  
This micro-credit initiative of the Comm ission’s addresses exis ting instruments and 
highlights strands where there is room for improvement, i.e. 
– improving the legal and institutional e nvironment in the Member States;  
– changing the climate in favour  of entrepreneurship;  
– promoting the spread of best practices; and  
– providing additional financial capital for micro-finance institutions (MFIs).  
The Commission estimates that th ere is potential demand for over 
700 000 micro-loans in Europe, amounting to  some EUR 6 300 million, which is not 
given adequate consideration by trad itional banks for various reasons 
(high administrative costs compared to the size of the loan, ab sence of collateral, 
etc). To fill this gap, the Commission s eeks to help the emergence of new non-bank 
micro-finance institutions (MFIs) and t hus to develop a laye r of reliable and 
sustainable financial intermediaries, which, in turn, will disburse loans to micro-borrowers. 
EN 19   EN As part of this initiative, the Commission will channel technical assistance resources 
from Cohesion Policy into develop ment oring services for MFIs and provide 
technical support and accompanyi ng measures in addition.  
A micro-fund to increase the provision of  repayable capital for non-bank MFIs is 
being established by the EIB in the pilot phase of the Commission initiative. It will be managed by the EIF. The criti cal mass of this micro-fund will be some 
EUR 40 million, to which the EIB Group will contribute substantially. 
4. E
VALUATIONS  
In 2007, the Commission continued to carry out evaluations to support 
decision-making under cohesion policy.  
ERDF 
Three strategic evaluations, published in 2006, have contributed to the quality of the 
programmes agreed during 2007 for the 2007-2013 period. In addition to country-level recommendations, the ev aluations concluded the following: 
– The Strategic Evaluation on the Environment and Risk Prevention came to the 
conclusion that, without Structural Funds assistance over the 2007-2013 period, 
the time needed for the Member Stat es to achieve compliance with the 
environmental acquis  would be extended by a factor of four, posing serious 
regional disadvantages. 
– The Strategic Evaluation on Transport I nvestment Priorities highlighted the 
importance of Structural Funds assistance in addressing missing links in existing 
networks and the potential to generate spillover effects. 
– The Strategic Evaluation on Innovati on and the Knowledge-based Economy 
confirmed the need for increased i nvestment in res earch, technological 
development and innovation (RTDI), compared to the 2000-2006 period. 
Other evaluations completed in 2007 were as follows: 
– An analysis of the impact of cohesion policy, providing estimates  for a number of 
economic variables, including economic gr owth, employment, ca pital formation, 
structural change and trade effects. 
– Development of evaluation cap acity in the EU Member States, a study resulting in 
an analytical framework that addresses multiple aspects of evaluation capacity development. This framework can be a us ed either as a means of monitoring and 
comparing evaluation capacity development across the EU, or as a self-assessment 
or diagnostic tool by any i ndividual Member State. 
– A study on the economic impact of convergence, aiming to quantify the economic 
impacts of convergence assistance in a numb er of selected countries for the period 
2007-2013. The study came to the conclusion that Structural Funds will have positive impacts in all the recipient count ries, real GDP increasing by 15% more 
than the business-as-usual level by the year 2020 in some countries. 
EN 20   EN These positive impacts will continue even after the end of the financial period 
2007-2013, thanks to TFP increased growth, higher labour productivity, and more 
accumulated human capital and better infrastructure. 
In 2007, the Commission launched the ex pos t evaluation of Objectives 1 and 2 for 
the 2000-2006 period, a total of  12 interlinked phased “w ork packages” to explore 
different aspects of the effectiveness a nd efficiency of cohesion policy. The first 
interim results of the study will be used during the forthcoming policy review of the EU budget in 2008/2009 and in the discussion of the future of cohesion policy.  
Another important task of the Commission is to provide methodological guidance to 
the Member States and organise exchanges of experience. To this end, EVALSED, 
the online and interactiv e resource for the evalua tion of socio-economic 
development, is currently being updated. 
ESF  
To assess the actual results and impacts of  assistance, new monitoring systems and 
evaluation arrangements have been set up at national level under th e guidance of the 
Commission. One of the major positive cha nges in this programming period are the 
more stringent evaluation requirements,  which place the focus on up-to-date 
information on what the ESF does and what it achieves in terms of socio-economic 
change. The adoption of fewer, more us eful and objective-focused indicators was 
secured through extens ive negotiations.  
Following the successful adoption of NSRFs and OPs for the 2007-2013 period, 
a summary overview of all Operationa l Programmes was commissioned by the 
Evaluation Unit and will be available by mid-2008. Preparation for the new 
programming period also included the planning of future strategic evaluations (to be 
launched by DG EMPL) on the contribution of  the ESF to different policy areas. 
In 2007, the Commission continued to mana ge the implementation of the 2000-2006 
programmes. A number of thematic ev aluation activities were completed:  
(a) ESF monitoring and evaluation systems in the Member States,  
(b) ESF support for management of the anticipated economic change and 
restructuring,  
(c) ESF contribution to employment and other policies by way of support 
for systems, structures and accompanying measures.  
The main objective of these evaluations was to draw lessons for the new 
programming period. 
Evaluation of the EQUAL Community Ini tiative continued th roughout 2007, the aim 
being to identify as many successful innovative practices as possible (on combating 
discrimination and promoting equality fo r vulnerable groups), for subsequent 
mainstreaming into ESF-funded programmes. 
2007 was also a year of preparation for th e ex post evaluation of the 2000-2006 ESF 
programmes. More specifically, two prepar atory studies, which were needed to 
EN 21   EN collect essential information for the main ex  post exercises, were carefully planned in 
2007, one of them, on data availability, being launched in 2007.  
5. CONTROLS  
5.1. ERDF 
Closure of programme period 1994-1999 Closure audits have been completed on a sample of 56 mainstream programmes and 
one INTERREG programme, covering all EU -15 Member States. The programmes 
audited give a 20-60% coverage of the ERDF  contribution in all Member States, with 
one exception, and overall cove rage of 35% of the ERDF contribution to mainstream 
programmes (31% of the total ERDF allo cation). At the end of 2007, 18 enquiries 
had been closed and corrections tota lling EUR 23.9 million had been applied 
(including a formal Commission decision of EUR 9.6 million). Final position letters 
have already been sent or hearings set for 25 programmes. For the remaining fourteen cases, the final position letters are being prepared, the aim being to complete 
all financial correcti on procedures in 2008. 
Programme period 2000-2006 
For the ERDF, an audit enquiry was star ted in mid-2004 to examine the effective 
functioning of key elements of the ma nagement and control systems in the 
Member States for mainstream programmes. The audits comprise two phases, a systems review and an audit of a representa tive sample of projects. The on-the-spot 
audit work initially planned was concl uded by the end of 2006 for the EU-15 and by 
the end of 2007 for the EU-10. Additional audits were carried out on 25 programmes in 2007, to extend coverage or address specif ic risks where identif ied by audits, or to 
follow up on the implementation of action plans. 
At the end of 2007, 214 audit missions (of which 13 INTERREG) had been carried 
out and 95 programmes had been audited. The programmes audited cover 41% of 
mainstream programmes and 61% of  the planned ERDF contribution. 
Based on the audit work performed, the main  general risk identified continues to be 
insufficient management control by the mana gement authorities and/or intermediate 
bodies, which is not offset by an effective certification function. The main specific 
risk is in the area of public procurement,  where problem issues concern failure to 
observe the transparency prin ciple, irregular complement ary works, application of 
illegal selection criteria and tender evaluation. One of  the main reasons for the 
deficiencies in EU-10 Member States is th at staffing is still a persistent problem. 
Problems recruiting and retaining sufficiently qualified staff make for an ineffectual 
control environment. 
In 2007, DG Regional Policy launched a new audit enquiry to check the reliability of 
the audit work of the winding-up body. The objective is to draw conclusions as to whether the audit work of the national bodies can be relied on as a main source of assurance for the remainder of the programming period and whether the winding-up 
declaration will be based on adequate audit work and be a reliable source of 
EN 22   EN assurance at programme closure. Thirteen audits were carried out under this enquiry 
during 2007. 
As regards INTERREG, DG Regional Policy launched a separate audit enquiry in 
2006, which it continued in 2007. The particular  challenge is that for most of the 
81 INTERREG III programmes the management  and control systems are different. 
Programmes to be audited have been selected on a risk basis, in the same way as mainstream programmes. This has been suppl emented by an analysis of the results of 
a “self-assessment exercise” conducted by the national bodies using a questionnaire 
prepared by the Directorate-General, and by a detailed assessment of the annual control reports to help draw c onclusions on non-audited programmes. 
Three additional programmes were audited in  2007, bringing the overall coverage to 
35% of ERDF commitments. Also, one of the programmes was subject to a project 
audit and 2 follow-up audits were carried out. 
Other audit work for the programming period 2000-2006 included the examination of 
the annual control reports rece ived (132 in total) under Article 13 of Regulation (EC) 
No 438/2001 and the review of national sy stem audit reports  (231 in total). 
By the end of 2007, 10 annual bilateral meeti ngs with national audit bodies had taken 
place, at which updates on audit work, pr ogress on sample checks and follow-up of 
findings were reported. The other meetings  were concluded by early February 2008. 
To help bring about further improvements, reduce the level of e rrors and show that 
the structural actions budge t is being effectively managed, in February 2008 the 
Commission adopted a “Communication on an action plan to strengthen the 
Commission’s supervisory role under shar ed management of structural actions” 
(COM(2008) 97 final). The action plan incl udes specific outputs and deadlines and 
focuses on correcting system deficiencies through implementation of the Structural Funds DGs’ audit strategy, im proving financial correction mechanisms, 
preparing for closure, finalising actions  under the Commission Action Plan towards 
an Integrated Internal Control Framework and taking preventive measures for the programme period 2007 2013. Th e Commission has committe d itself to providing 
the European Parliament with quarter ly reports on implementation of the 
Action Plan.  
5.2. ESF 
Main outputs achieved in 2007 95 audit missions were organised by DG EMPL  in 2007. These involved audits of (a) 
unaudited (in part, or in full) operati onal programmes identified in the 2007 
risk analysis and (b) follow-up missions on the implementation of recommendations 
issued by the ESF audit unit or on the results of audits undertaken by the European Court of Auditors (ECA). The subjects of these 95 audit missions can be 
broken down as follows: 
– 9 missions relating to the closure of the 1994-1999 programming period; 
– finalisation of audit work on 1994-1999 cl osures carried out  in late 2006 in 
Germany and Ireland, the organi sation of four wrap-up meet ings for these specific 
audits. Four closure audits  1994-1999 were carried out in three Member States 
EN 23   EN (France, Italy (2) and Spain). A follow- up mission on the ECA’s closure audit in 
Sweden was undertaken. The closure audit in Belgium will be carried out in 2008; 
– 86 missions relating to the audit of the ma nagement and control systems in place 
for the 2000-2006 programming period;  
– 10 audit missions of unaudited EU-15 ope rational programmes (or parts of 
operational programmes, mainly  decentralised systems); 
– 4 missions to the EU-10 in preparation for the 2000-2006 closure;  
– 54 audits on substantive testing of ope rations (sample check s, including desk 
review and on-the-spot vi sits). Of these 54 audits, 20 related to programmes 
implemented in the EU-10 and 34 in the EU-15; 
– 18 follow-up missions, of which 5 in the EU-10 and 13 in the EU-15. 
Problems identified throughout th e audits in the EU-25 in 2007 were: inadequate first 
level checks, insufficient certification procedures, breaks in the audit trail, insufficient separation of duties, deficien cies in performing 5%  checks and issues 
related to the IT systems used in the mana gement and control of the ESF. Four early 
warning letters were issued by DG EM PL/I.3 in 2007. The Member States and 
regions concerned are: France /Guadeloupe, Germany/Hamburg, 
United Kingdom/Scotland and Luxembourg.  
From the findings of the Commission, Member  State and Court of Auditors audits, 
results were available for 225 out of a to tal of 239 OPs (94.1%) at the end of 2007.  
The cumulative coverage (in amount s) of the 2000-2006 programming period, 
including additional coverage by national audits, reached 98.9%.  
Substantive testing of (gr oups of) programmes was carried  out in 2007, 433 projects 
being covered by desk reviews and 270 by on-th e-spot visits. This will be continued 
in 2008. The main objective of these audits is to confirm the level of assurance 
obtained by the ESF audit unit through the systems audits. Some 520 projects are 
scheduled to be audited in th e course of 20 audits in 2008. 
Preparatory work for the 2007-2013 programming period 
Compliance Assessment and Audit Strategy: the ESF audit unit has prepared for a 
major challenge in 2008, namely, to analys e and report to the Member States on 
approximately 117 compliance assessments a nd 117 audit strategies. The procedural 
framework, checklists, standard notes, et c., were developed in cooperation with 
DG REGIO. A monitoring tool was developed within the ESF audit unit to screen the 
timing of each compliance assessment received. 
DG EMPL channelled considerable human resources into the development of 
guidance notes and explanatory documents for the Member States for the new programming period 2007-2013. 22 training semi nars were organised and delivered 
for the Member States’ Audi t Authorities, mainly duri ng the second half of 2007. 
The topics discussed related to various is sues such as statistical sampling, risk 
analysis, role of the audit authority, compliance assessment, audit strategy, reliance 
EN 24   EN on the work of other auditors, etc. Following these seminars, the ESF audit unit, in 
cooperation with DG REGIO, provided assistan ce to the Member States in the form 
of a “Frequently Asked Questions” brochure. 
The ESF audit unit has also been heavily i nvolved in the process of developing and 
issuing guidelines to the Member St ates. The guidelines developed are:  
– Guidelines for Compliance Assessment of the management and control systems; 
– Guidelines for the Audit Strategy appli cable to the delive ry of operational 
programmes; 
– Guidelines and development of key requirements for the management and control 
systems; 
– Guidelines on the use and implementati on of the flat rate for overheads 
(DG EMPL only); 
– Guidelines on statistical sampling;  
– Guidelines on annual summaries; and 
– Guidelines on financial corrections for public procurem ent irregularities. 
Lastly, the ESF audit unit participated in a fact-finding mi ssion to Poland. 
This mission was organised at the request  of the geographical desk, with the 
objective of monitoring implementation of the IT system (SIMIK 2) developed for 
the 2007-2013 programming period. 
Annual summaries 
The Commission has completed its first assessment of the annual summaries 
submitted and has sent letters to most Memb er States. The letters already sent cover 
all cases of serious non-compliance. Where necessary, Member States that have not 
completely followed the recommendations  in the Commission’s guidance note are 
requested to provide revised annual summari es. Since these points do not constitute a 
formal legal requirement, the Commission canno t take any further action, but it will 
continue to encourage Member St ates to adopt best practices. 
The majority of the Member States have complied, or mainly complied, with the 
minimum requirements regarding the information to be provided, as set out in the guidance note. The formal submission of this information by the Member States 
increases the accountability of the Member States as regards use of the Funds and 
contributes to the Commission’s assura nce. However, only a limited number of 
Member States followed the Commission recommendations to maximise the value of the annual summaries. In addition, in cases wh ere an overall analysis was made or an 
opinion given, the quality could still be fu rther improved. This can be explained, at 
least partially, by the fact that this was the first year of applica tion of the requirement 
and that many Member States decided onl y a few weeks before the deadline to 
provide information on the 2000-2006 period.  Overall, the results provide a good 
basis for encouraging Member States to present annual summaries next year of 
EN 25   EN generally better quality, which will make a mo re significant contribution to assurance 
for structural actions. 
5.3. EAGGF 
DG AGRI adopted the same basic approach  as DG REGIO and shared the same 
general objectives. 
As regards the 1994-1999 period, the ex po st audit programme had already been 
completed in 2006. A number of financia l correction procedures are under way: 
bilateral meetings held with the Memb er States in 2007 covered 2 programmes. 
Four financial correction decisions cove ring 12 programmes were adopted by the 
Commission during the year. 
For the period 2000-2006 (EU-25), 19 pr ogrammes covering 18% of planned 
expenditure were audited in 2007. By the e nd of the year, a total of 87 out of the 
152 approved EAGGF-Guidance programmes had been audited. The programmes 
audited cover 92% of the planned EAGGF contribution and 57% of the number of 
programmes. Typical problems identified we re: inadequate management controls, 
failure to verify eligibility criteria agains t the provisions of agri cultural legislation 
and a low level of independent controls. These findings are being followed up with 
the Member States concerned and may lead  to financial corrections. A number of 
financial correction procedur es are under way. One fina ncial correction decision 
covering one programme was adopted  by the Commission during the year. 
5.4. FIFG 
Closure of the programme period 1994-1999 By the end of 2007, 43 out of 52 programmes ha d been closed, one is in the process 
of being closed, and six will be subject to a financial correction procedure by the Commission under Article 24 of Regulation 4253/1988. The closure proposal letter is 
being prepared for the last two programme s . The percentage of  programmes closed 
or in the process of being clos ed covers 84.6% of the total. 
Outstanding commitments (RAL) on pr ogrammes not yet closed amount to 
EUR 36.5 million, which is EUR 5.8 million le ss than in 2006. This is 1.3% of the 
total amount allocated to FIFG programmes for the period. The financial corrections 
requested by DG MARE during the closure exercise amount to EUR 113.1 million, i.e. 4% of the total amount allocated to FIFG programmes . Of this total, 
EUR 38.9 million was accepted by the Member States, which was covered either by 
reduced payments or by recovery orders.  
The amount still under discussion, which ma y be subject to financial correction 
procedures by Commission Decisi on, comes to EUR 83 million,
4 which is 2.66% of 
the total amount allocated to FIFG programmes. 
The table below shows the situation re garding closure procedures as at 
31 December 2007. 
                                                 
4 Including a correction of EUR 9 million for the Spadare measure. 
EN 26   EN 31/12/2007 No of OPs FIFG Budget Corrections 
Programmes closed 43 1 409 211 498 38 889 317 
Programmes not yet 
closed  7 1 301 159 775 74 251 021 
Programmes for 
which final 
proposal to be made 2 72 462 000 n.a. 
TOTAL 52 2 782 833 273 113 140 338 
Programme period 2000-2006 
The ex post control sector carried out a total of ten on-the-spot controls in the course 
of 2007 for the FIFG.  
The ten FIFG audits carrie d out in 2007, covering twelve  operational programmes, 
focused on the verification and follow-up of the effective functioning of management 
and control systems for the period 2000-2006. The audits tested key controls in place in the management and control systems, co mbined with sample checks of projects by 
desk review and on-the-spot vi sits to projects and beneficiaries. These audits indicate 
that, of the programmes/systems audited by the DG in 2007, two function well (category 1), five function but  need improvement (categor y 2) and five do not work 
(category 3). 
For the five operational programmes classi fied under category 3 the findings show 
weaknesses in key control elements, such as: 1) managing authorities do not carry 
out sufficient on-the-spot visits, 2) the certi fication process by th e paying authority is 
weak and 3) there is no follow-up of corr ections. An action plan has been agreed 
with the national auditors. Reporting on the implementation of corrective actions 
should be provided in 2008. 
The other seven programmes/systems au dited in 2007 were classified in 
categories 1 (reasonable assurance) and 2 (reasonable assurance with limitations/acceptable assurance) depending on whether no deficiencies or only minor deficiencies in key and/or anc illary control elements were detected. 
In total, 79 projects were checked by desk re view and/or on-the spot visits for a total 
eligible amount checked of EUR 102.5 m illion with FIFG participation of 
EUR 48.2 million. An amount of EUR 10.3 mill ion was identified as potentially 
ineligible. This potentially ineligib le amount represents 0.40% of the 
Community contribution of audited pr ogrammes and 2.00% of the total amount 
paid out by DG MARE in 2007 for the co-financing of FIFG programmes.  
Since the beginning of the programmi ng period 2000-2006, DG MARE has carried 
out a total of 36 audit missions, cove ring all of its mono-fund programmes 
(18 programmes for a budget contribution of EUR 3 608.73 million — 87.1% of total 
2000-2006 budget) as well as 13 of its multi- fund programmes for a contribution of 
EUR 269.48 million — 6.5% of total 2000-2006 budget. In total, DG MARE systems 
audits have covered 93.6% of the to tal FIFG contribution for 2000-2006. For the 
EN 27   EN other programmes, the assurance is gained  from other Structural Fund DGs’ audit 
work and/or national audits.  
The overall result shows that 49 programmes (cove ring 93.15% of the FIFG 
2000-2006 allocation) are considered to be  working well or working but some 
improvements are needed. For the 7 program mes that do not work (6.66% of the 
FIFG 2000-2006 contribution), actions plan s have been issued and payments 
interrupted. The maximum amount  at risk is estimated fo r most programmes at 10% 
of payments made in 2007 (whi ch is 0.49% of 2007 payments). 
Other audit work for the programming period 2000-2006 included an examination of 
the annual control reports received under Article 13 of Regulation (EC) 
No 438/2001. Analysis of the reports was conc luded with the dispatch of replies to 
the Member States with observations and, where necessary, requests for additional information in order to draw as much assurance as possible from the results of national audit work. Furthermore, all nati onal system audit re ports received in 2007 
were reviewed, giving rise in some cases  to further observations/enquiries for the 
annual coordination meeting or even interru ption of payments in cases where an 
adverse opinion was given by the national audit authority on the management and 
control systems. 
5.5. OLAF 
In 2007, OLAF undertook 37 missions in the Me mber States relating to measures 
co-financed by the Structural Funds. Of these, 19 concerned on-the-spot checks
5 
(during which 26 controls were carried out on economic operators) and 18 others 
gathered information or assisted either  national administrations or judicial 
authorities. Typical problems identified  by OLAF in the course of 2007 included 
false declarations, false invoicing and failu re to abide by public procurement rules. 
In 2007, Member States submitted to the Commission, in accordance with 
Regulation (EC) No 1681/94,6 some 3 7407 notifications of ir regularities involving 
EUR 717 431 387 affecting co-financed measures from the 1994-1999 and 2000-2006 programming periods. 124 notif ications concern the 1994-1999 
programming period, with a financial im pact of approximately EUR 33 million. 
Member States have informed the Co mmission that administrative and/or 
judicial procedures have been concluded at national level in a number of cases and 
an amount of EUR 153 465 848 has been recovered. 
In 2007, both the number of notifications  and the amounts involved increased by 
around 19.3% and 17.9% respectively, as compared to the year before. The main explanations for this new increase seem to be: 1) a higher number of irregularities 
from the new Member States (EU-10) as  a result of full implementation of the 
programmes and better understanding and implementation of the reporting 
obligation; and 2) the fact that the cohesion policy came under particular “pressure” 
                                                
 
5 Regulation (EC) No 2185/1996, OJ L 292, 15.10.1996, p. 2. 
6 OJ L 178, 12.07.1994, p. 43. 
7 2006: number of communicated cases 2 988; overall amount relating to communications 
EUR 516 697 561. 
EN 28   EN from the control authorities. This is reflect ed in a higher number of irregularities than 
in 2006, even among the old Member States (EU-15).  
The most frequent types of irregularitie s reported are “non-eli gible expenditure”, 
while secondary irregularities include “infri ngement of rules of public procurement” 
and “missing or incomplete supporting documents”. 
The figures demonstrate increased aw areness and better reporting by the 
Member States, in conformity with  their Community law obligations. 
Furthermore, on 7 November 2007 the Co mmission approved the Communication on 
the division of responsibili ties and cooperation between the “authorising officers by 
delegation” in the Commission and OLAF for the financial follow-up of irregularities 
relating to expenditure under shared management in the Agricultural and 
Structural Actions areas [C(2007) 5709].  
6. COMMITTEES ASSISTING THE COMMISSION  
6.1. COCOF 
The main points dealt with by the COCO F Committee can be classified in the 
following groups: 
– points where the Committee acted as the Committee in the conventional 
comitology sense, namely, giving opini ons on draft decisions of the Commission, 
e.g. Draft Decision amending Commissi on Decision 2006/769/EC of 31/10/2006 
drawing up the list of regi ons and areas eligible for funding from the European 
Regional Development Fund under the cross- border and transnational strands of 
the European territorial cooperation objective for the period 2007-2013 (Annex 1 
on CBC and Annex 2 on Transnational C ooperation), and Draft Commission 
Decision concerning the financing of the programme for the use of operational 
and non-operational technical assistance at the initiative  of or on behalf of the 
European Commission under the European Social Fund (ESF) for 2007; 
– points where the opinion of the Committ ee was required in accordance with 
Regulation (EC) No 1083/2006, the genera l regulation governing the Funds for 
the 2007-2013 period, e.g. for the new programming period 2007-2013, Indicative 
guidelines on evaluation methods: Eval uation during the programming period — 
Working document No 5; Submission for opi nion of the updating at mid-year of 
the various types of technical assistance m easures to be financed by the ERDF and 
the Cohesion Fund under Article 45 of Regulation (EC) No 1083/ 2006 — 
Budget lines 13 01 04 01 and 13 03 20. 
The COCOF Committee was most frequently active as the forum for presenting and 
discussing interpretative documents and not es of the Commission, the aim being to 
share the views with the Member Stat es and to seek their opinions on the 
interpretations put forward. The main topics discussed were: 
– Eligible expenditure in the 2007-2013 period; 
– European Grouping of Territorial Cooperation; 
EN 29   EN – Guidance Note on the Audit Strategy; 
– Guidance Note on Compliance Assessment; 
– Guidance document on the annual summaries under Article 53b(3) of the 
Financial Regulation (annual summary of available audits and declarations); 
– Guidelines for the determination of financial corrections applicable to expenditure 
co-financed by the Structural Funds  and Cohesion Fund in relation to 
infringements of rules concerning public procurement; 
– Information note of the Commission on ER DF support for investment in SMEs; 
– Irregularities — Information under Artic le 9 of Regulation (EC) No 1681/94 
(OLAF) 
– “n+2” rule; 
– Study on regional expenditure of  the ERDF and Cohesion Fund. 
6.2. ESF Committee 
The Committee pursuant to Article 147 of the Treaty (ESF Committee) met three 
times in Plenary Session and its Technical Working Group seven times.  
In 2007, the ESF Committee was consulted on 115 of the 117 ESF 
Operational Programmes for 2007-2013 (the  other 2 Operational programmes 
(Martinique OP and Greece Contingency Re serve OP) will probably be adopted in 
2008). It was also consulted on the Draft Commission Decision for ESF 
Technical Assistance in 2007 and on the Broc hure for ESF use on family friendly 
policies. 
The ESF Committee discussed implementatio n of the ESF and specifically the 
visibility of the ESF and the role of th e ESF Committee and thematic evaluations for 
2000-2006 concerning restructuring management and administrative capacity building. 
The Technical Working Group was informed of the state of play regarding the 
adoption of Operational Programmes fo r 2007-2013. Among others, it discussed 
audit and control issues, evaluation issues, the “n+2” rule and simplification aspects, 
including the flat rate rule regarding the declaration of indirect costs and 
public tendering. 
6.3. Committee on Agricultural Structu res and Rural Development (STAR) 
The STAR Committee met three times in 2007  and gave a favourable opinion on the 
amendment to a rural development pr ogramme (the SAPARD programme for 
CROATIA) under Article 4 of Coun cil Regulation (EC) No 1268/1999. 
6.4. Committee on Structures for Fish eries and Aquaculture (CSFA) 
In 2007, the Committee was consulted on a num ber of issues: the draft Commission 
Regulation amending Commission Regul ation (EEC) No 3440/84 as regards 
EN 30   EN conditions for certain trawls for vessels operating pump aboard systems; the draft 
Commission Decision on a Community  financial contribution towards 
Member States’ fisheries control, insp ection and surveillan ce programmes for 2007 
(second instalment); the draft Commission Regulation laying down detailed rules for 
the implementation of Council Regulation (EC) No 1966/2006 of 21 December 2006 
on electronic recording and reporting of fishing activitie s and on means of remote 
sensing; the draft Commi ssion Regulation on landing and weighing procedures for 
herring, mackerel and horse mackerel; a nd the Commission Decision designating the 
Community Fisheries Control Agency. 
EN 31   EN Part 2: Analysis by Member State 
1. BELGIUM  
2007-2013 programming period Belgium will receive EUR 2.258 billion from  the Structural Funds for period the 
2007-2013, with EUR 638 million going towards the Convergence objective, EUR 1.425 billion towards the Regional Comp etitiveness and Employment objective 
and EUR 194 million towards the European  Territorial Cooperation objective.  
The Walloon province of Hainaut will benefit from the Convergence objective. As it 
is a region that would have been elig ible for the Convergence objective if the 
threshold had remained at 75% of the av erage GDP of the EU-15 rather than the 
EU-25, Hainaut will continue to benefit from transitional support (phasing-out). 
The remainder of Belgium is covered by the Regional Competitiveness and 
Employment objective.  
In the previous programming period, certa in areas also received Objective 2 
subsidies (Meuse-Vesdre, Antwerp, part of  the Namur province, the entire province 
of Luxembourg, West Flanders and East Flanders).  
Strategic objectives — Given Belgium’s institutional structure, each region has 
developed a strategy adapted to its own socio-economic characteristics.  
ERDF (European Regional Developm ent Fund) financing will benefit:  
– Brussels-Capital Region: enhancing territorial cohesion and maintaining territorial 
competitiveness.  
– Flemish Region: promoting the knowle dge economy and innovation, stimulating 
entrepreneurship, using regional features  that attract economic interest, and 
supporting urban development.  
– Walloon Region: boosting business and j ob creation, developing human capital, 
knowledge, know-how and research, and ensuring balanced and sustainable 
territorial development.  
ESF (European Social Fund) financing is focused on: 
– Brussels-Capital Region: promoting active employment and social integration, 
and increasing the participation of women on the labour market. 
– Flemish Region: upgrading the skills and co mpetencies of the workforce to satisfy 
the demands of the knowledge economy and promote innovation.  
– Walloon Region together with French  Community (including Hainaut): 
developing employment, enterprises,  human capital, knowledge, know-how, 
research and social inclusion. 
EN 32   EN – German-speaking Community: promoting active employment and social 
integration. 
– Federal Belgium: supporting social integration. 
Expected impact of the new Cohesion Policy — The country requires a strategy for 
encouraging investment in innovation and the marketing of high-tech products and 
services, and for providing real  incentives for research and development in line with 
the Lisbon objective of devoting 3% of GD P to R&D by 2010. The authorities have 
adopted the Lisbon objectives: the employme nt rate should approach 70% for the 
total population, 60% for women and 50%  for 55-64 year-old workers.  
The programme should help to establish cl oser cooperation links  between public and 
private research units, an attractive wo rk environment for the highly qualified, 
financing channels suitable for venture capi tal, an efficient a nd coherent regulatory 
framework, reduced administrative procedur es and a non-distorting tax system 
conducive to business activity.  
Investment for growth and jobs — In line with Community goals, expenditure will 
be concentrated on the Lisbon Stra tegy and cohesion objectives. 77% of 
Convergence subsidies and 85% of Re gional Competitiveness and Employment 
subsidies will go towards Lisbon priorities.  
Operational programmes — Cohesion policy in Belgium will be implemented via 
ten operational programmes, of which four will be  financed by the 
European Regional Development Fund (ERDF) and six by the European Social Fund 
(ESF). 
2000-2006 programming period 
1.1. Objective 1 
Two new amending decisions were adopted  in April and October 2007. The first 
concerned the adoption of the financial pl an in each axis, following approval by the 
monitoring committee 18 December, and adjustment of the financing plan to make 
for optimum consumption of the budget. The second decision confirmed the “n+2” 
decommitment for EAGGF (2004 commitment). 
The level of expenditure presented for pa yment to the ERDF amounted to 88% of 
ERDF appropriations (EUR 375 908 847.13) at  the end of 2007. Global execution for 
EAGGF-Guidance at the end of 2007 am ounted to 70% of EAGGF appropriations 
(EUR 29 392 295). For ESF, payment claims submitted to the Commission at the end 
of 2007 amounted to 73.74% of total ESF appropriations (EUR 147 637 970). 
No payment requests were submitted in 2007 for the FIFG.  
1.2. Objective 2 
For the seven programmes under the Objective 2 from which Belgium benefits, the 
2006 annual reports for each programme were approved by the corresponding monitoring committees, submitted to the Commission and examined by the Commission. Two monitoring committees  were organised in June and 
December 2007 for each programme. 
EN 33   EN The main subjects dealt with by the monitoring committees were:  
– approval of the 2006 Annual Implementation Reports, 
– programme changes mentioned above and below, 
– follow-up of the “n+2” situation, 
– a state of play with the new 2007-2013 NSRFs and OPs. 
As regards the Objective 2 SPD in Wall oon Region (Meuse-Vesdre and Rural), the 
monitoring committees ratified modifi cations in December 2007 based on sound 
management of each programme, thus requiri ng a new adjustment of the financing 
plan and adoption of a new programme co mplement in 2008. The levels of ERDF 
expenditure are respectively EUR 108 766 922.51 and EUR 43 861 424.61, which correspond to 79% and 80% of ERDF appropriation rate s. The levels of ESF 
expenditure are respectively EUR 17 162 005 and EUR 3 656 156, which correspond 
to 66.7% and 64.92% respectively of  ESF appropriation rates. 
For all four Objective 2 programmes for Flanders, the allocated funds are fully 
committed. The payments level fully covered the required “n+2” level for the ERDF (total ERDF payments for Flemish programmes: EUR 153 320 537.41, which means 
average spending of 86.69% of the tota l ERDF contribution). For the three 
Objective 2 programmes involving the ESF in  Flanders, payment claims submitted to 
the Commission amounted to EUR 12 120 543, corresponding to 70.73% of ESF appropriations. 
For Brussels-Capital Region, th e progress on ERDF expenditu re (only an intervening 
fund) continued in 2007, thereby avoiding any decommitment under the “n+2” rule. The level of the expenditure presented for payment to the ERDF amounted to 
76.03% of the ERDF allocation (E UR 34 952 654.85) at the end of 2007. 
1.3. Objective 3 
The total ESF appropriation for Objective 3 is EUR 798.4 million, divided over five 
operational programmes. All five program mes are performing according to plan. 
For the Federal SPD, the total ESF budget amounts to EUR 70.1 million. The level of expenditure declared to the Comm ission in 2007 amounts to EUR 29.8 million 
(42% of the total ESF appropriation) . The Flemish programme has a total 
ESF budget of EUR 392.5 million. The entire b udget has been allocated to projects. 
The declared expenditure at the end of  2007 amounted to EUR 312.0 million or 80% 
of the total ESF budget. The programm e for the Wallonia-French Community 
programme has a total ESF budget of EUR 297.9 million. Total payments at the end 
of 2007 amounted to EUR 234 355 670. The ESF budget for the Brussels region amounts to EUR 24.7 million, 95% of which had been paid at the end of 2007. 
The German-speaking Community has a se parate Objective 3 programme, with a 
total ESF budget of EUR 11.2 million. At th e end of 2007, the expenditure claimed 
from the Commission amounted to EUR 10.6  million or 95% of the total budget. 
Implementation of this programme is finalised. 
EN 34   EN 1.4. Fisheries outside Objective 1 
Currently the total FIFG allocation to th e fisheries programme is EUR 23.57 million. 
The most important measures, in line with the Common Fisheries Policy, are 
scrapping of vessels, modern isation of the fleet, proces sing and marketing, collective 
investments and innovative measures. Impl ementation of the programme continued 
at a rather slow pace. As a result, with regard to the “n+2” target for 2007, the Commission envisages a decomm itment of EUR 2.26 million. 
1.5. Community Initiatives 
1.5.1.  Equal 
There are two EQUAL programmes in Belgium: one for the French- and 
German-speaking communities, and one for the Dutch-speaking community. The French- and German-speaking programme proceeded without any major difficulties in 2007. In financial terms, the ra te of execution of the ESF part of the 
programme at the end of 2007 was 66.83% . Automatic decommitment under the 
“n+2” rule was avoided for 2007. The Dutch-speaking EQUAL programme also proceeded without major difficulties in  2007. At the end of 2007, the rate of 
execution of the ESF part of the programm e was 55.88%. There will be an automatic 
decommitment of EUR 0.510 million unde r the “n+2” rule. The two EQUAL 
programmes supported around 125 projects, mainly in fields such as employability, adaptability, life-long le arning and social economy. 
1.5.2.  Leader 
Belgium has two Leader+ programmes: one  for Flanders, involving total public 
expenditure of EUR 7 984 200, and one for Wallonia, invol ving total public 
expenditure of EUR 20 669 294. For both pr ogrammes, the allocated funds have 
been fully committed.  
At the end of 2007, total financial execu tion came to EUR 9 103 761, i.e. 63.54% of 
total EAGGF-Guidance expenditure earmarked for the period 2000-2006. 
1.5.3.  Urban 
There are three URBAN II programmes in Belgium. The programmes for Brussels, 
Antwerp and Sambreville were all appr oved on 12 November 2001; two of them 
were amended in 2006 (Antwerp, Sambreville) and the other (Brussels) in 2007. Each programme originally receives EUR 7.173 million from the ERDF, but under the “n+2” rule at the end of 2005, the c ontribution was reduced to EUR 7.130 million 
for Antwerp and, at the end of 2006, to 7.083 million for Brussels. The total budget 
for Brussels is EUR 14.3 million, for An twerp EUR 22.9 million and for Sambreville 
EUR 17.1 million.  
Annual reports for 2006 were submitted by all three programmes and approved. 
For all three programmes, the management  authority is the region. The monitoring 
committee of each programme met at least once.  
EN 35   EN Two programmes reached the “n+2” targets for 2007. For Brussels-Capital, there was 
a decommitment of less than EUR 95 000. A new decision was adopted in 2008.  
Overall comments concerning the 2000-2006 period in Belgium 
The Sambreville programme is the biggest  in Belgium and has already reached a 
significant number of their targets. Many of the project s have been completed or 
started. Some tangible benefits are starting to  become visible in terms of jobs created, 
unemployed trained, SMEs started, compan ies expanding, etc. The added value of 
URBAN II is that it has made a big difference, by starting a dynamic that has changed the image of Sambreville, allo wed it to attract a number of high value 
companies and put work in a stronger part nership with the private sector and the 
local population. The Antwerp programme had a very slow start, although the 
projects currently being developed s hould make the impact more tangible. 
The Brussels-Capital URBAN II programme has been seen as a small appendix to the Objective 2 programme, but it has been a successful addition to the latter and to 
urban regeneration agreements. 
EN 36   EN 2. CYPRUS  
2007-2013 programming period The procedures for the adoption of th e NSRF and OP for Cyprus for 2007–2013 
were already advanced by early 2007. ERDF commitments of EUR 75.6 million were made in 2007 for the new programmi ng period, with an advance payment of 
EUR 5.6 million. 
The National Strategic Reference Fram ework for Cyprus for 2007–13 was submitted 
by the Cypriot authorities on 21 December 2006. The decision adopting the NSRF (C(2007) 2015) was taken on 7 May 2007. In 2007–13 Cyprus will have one 
ERDF/CF Operational Programme, which will cover both the Convergence and the 
Regional Competitiveness and Employment objectives. 
The Operational Programme on Sustaina ble Development and Competitiveness was 
submitted on 5 March 2007 and approved on 17 September 2007 by Decision C(2007) 4351. It provi des EUR 492 665 838 of Co mmunity funds for the 
years 2007–13, of which EUR 279 461  354 from the ERDF under the 
Regional Competitiveness and Employment Obj ective, while the Cohesion Fund will 
contribute EUR 213 204 484 under the Convergence Objective. 
The ESF Operational Programme “Emplo yment, Human Capital and Social 
Cohesion” was submitted on 5 March 2007 and approved on 8 November 2007 by 
Decision C(2007)5507-1. It will provide maximum assistance from the European Social Fund of EUR 119 769 154, as calculate d with reference to the total eligible 
public expenditure. The maximum co-fin ancing rate as a whole will be 80%. 
The strategic objective of th e ESF Programme is full a nd quality employment, the 
development of human resources and the c onsolidation social cohesion and equal 
opportunities. An indicative 78% of ESF financing for the period 2007-2013 will be 
directed towards broader Lisbon -related priorities (earmarked). 
2000-2006 programming period 
2.1. Objective 2 
Interim payments for EUR 6.1 million were paid into the 2004-206 programme. 
The 2006 Annual Report for the Single Programming Docume nt for 2004–2006 was 
approved by the monitoring committee, and received and approved by the Commission. A revised Programme  Complement was received  in the second half of 
2007 and was accepted by letter of 6 February 2008. 
A monitoring committee meeting for SPD 2 and an Annual Review meeting took 
place in Cyprus in 2007. For the new programming period 2007-2013, the first monitoring committee meeting and the la unch event took place in November. 
In addition, various technical meetings  and project visits were organised 
during the year. 
EN 37   EN 2.2. Objective 3 
An interim payment claim of EUR 6 022 906.97 was submitted by the Cypriot 
authorities on 21 December 2007, fu lly covering the 2005 commitment. 
The 2006 Annual Implementation Report for the Single Programming Document for 
2004–2006 was approved by the monitoring committee, and received and approved by the Commission. 
A monitoring committee meeting for SPD 3 and an Annual Review meeting took 
place in Cyprus in 2007.  
For the programming period 2007-2013, the first monitoring committee meeting and 
the launch event took place in November. 
2.3. Fisheries outside Objective 1 
The Fisheries Operational Programme fo r Cyprus, adopted by the Commission in 
2004, entered its fourth year  of implementation. At the end of 2007, most of the 
programme’s resources had been allocated  by the managing aut hority and payments 
reached nearly 60% of the to tal FIFG available funds, av oiding the risk of loss of 
funds because of the “n+2” rule. 
The monitoring committee met in 2007, cove ring mainly monitoring and evaluation 
of progress. 
2.4. Community Initiatives 
2.4.1.  Equal 
In 2007, EUR 286 165 of ESF payments were made for the CI EQUAL. 
Approximately EUR 280 000 falls under th e “n+2” rule and will be decommitted. 
EN 38   EN 3. CZECH REPUBLIC  
2000-2006 programming period During 2007, the relatively slow start in ab sorbing the Structural Funds of the 
programming period 2004-2006 improved. For most Operational Programmes a solid 
project pipeline has been developed, most  of them have been contracted and 
implementation on the ground is advancing. Expenditures on the ground by the end of 2007 correspond to 70% of the total 2004-2006 budget. 
The risk of losing part of the Structural  Funds commitment by the end of 2007 due to 
the “n+2” rule was thus resolved for all programmes, including SPD Prague Objective 2 and the OP Human Resources Development, the programmes facing the 
most serious absorption problems.  
In comparison with the other new Member St ates, the Czech Republic  is still in the 
slower group of countries in terms of abso rption of the Structural Funds, but there are 
signs of an upward trend. Weaknesses re main in the administrative capacity 
(including high turnover of staff) and in the management reporting systems, mainly 
at the level of the Ministry  for Regional Development (n ational coordinator of all 
OPs) but also at the leve l of the managing authoritie s and certain intermediary 
bodies. Together with the lack of a reliable system of forecasts, these factors make it 
difficult for the Czech authorities to plan  efficiently and to implement preventive 
measures. To improve the situation, th e Commission has strongly recommended an 
action plan to establish a basic harmonised monitoring and information system to 
manage the funds.  
The 2006 Annual Implementation Reports were submitted for each Operational 
Programme in good time. All of them were deemed admissible and thus accepted by 
the Commission without significant objections.  
3.1. Objective 1  
The Community Support Framework for the period 2004-2006  covers a total budget 
of EUR 1 954 million, of which EUR 1 454 mill ion is contributed by the Structural 
Funds (63% ERDF, 25% ESF, 11.5% EAGGF  and 0.5% FIFG). Five Operational 
Programmes are implemented under the CSF.  
The CSF Managing Authority, at the Ministry for Regional Development, is 
responsible for the effectiveness, correct  management and delivery of the support 
provided by the Structural Funds in the Czech Republic. 
Two monitoring committees for the CSF me t in 2007: one on 17 June 2007 and one 
on 18 December 2007. The annual report for 2006 was discussed during the meeting 
in June. The second meeting focuse d on the implementa tion of related 
Operational Programmes with a view to the upcoming closure. The need for efficient 
management and coordination at CSF level was also stressed.  
The Joint Regional Operational Programme (JROP) , the largest Czech OP with a 
share of 31.2% (EUR 454 million) of the total Objective 1 allocation (28% ERDF 
EN 39   EN and 3.2% ESF), held two monitoring committee meetings in 2006: one on 
7vJune 2007 and one on 14 October 2007. Implem entation of the JROP measures has 
progressed significantly compared to 2006:  120% of the budget was approved by the 
end of 2007, 90% of that amount was execute d, of which 74% was certified. The best 
performing JROP measures are the schemes supporting regional business 
infrastructure and the development of services in tourism. Payments were sufficient by and large to avoid any application of  “n+2” rule for the 2005 commitment. 
The Human Resource Development Operational Programme accounts for a share of 
21.2% (EUR 318.8 million, ESF contribution) of  the total Object ive 1 allocation. 
One monitoring committee meeting took pla ce on 14 June 2007, the second meeting 
being postponed until 5 February 2008. The annual meeting was organised on 25 September 2007. Implementation caught up during 2007, with almost 100% of the 
total budget of the OP being contracted, alt hough in terms of (cer tified) spending the 
OP is still clearly la gging behind. The main sources of delay are the late start of OP 
implementation, fluctuation of staff and the need to manage a large number of small 
projects in a rather complex implementing system. The best performing measures are 
3.1 (Enhancing the quality of education at school and school facilities) and 1.1 
(Strengthening active employment policy for job seekers and job applicants). Interim 
payment claims totalling EUR 132 million were submitted by the end of 2007, which covers only 41.4% of the total budge t for 2004–2006. Payments were nonetheless 
sufficient to avoid any application of th e “n+2” rule for the 2005 commitment.  
The Operational Programme Industry and Enterprise  is the third largest OP with 
17.9% (only ERDF) of the total Objective 1 allocation. Two monitoring committee 
meetings were organised for this OP in 2007: one on 4 June 2007 and one on 15-16 November 2007. This remains one of  the best performing Operational 
Programmes, with 59% of the total budget executed, of which 46% was certified. 
Nevertheless, during the peri od under scrutiny, there was a certain slowdown in 
implementation, mainly due to organisa tional and administrative changes in 
CzechInvest, the principal intermediate body for this Programme. The most popular 
measures remain schemes supporting sm all and medium-sized enterprises, 
innovation schemes and two loan schemes aime d at starting entr epreneurs and firms 
in the initial development stage, whereas schemes targeting energy saving and renewable sources of energy ar e lagging behind for the moment. 
This Operational Programme had easily attained the threshold for the “n+2” rule for the 2005 commitment. 
The Operational Programme Infrastructure (OPI)  is the fourth largest OP, with 
almost 16.9% (only ERDF) of th e Objective 1 budget allocation. 
Two monitoring committee meetings were held for this programme in 2007: one on 15 March 2007 and one on 9 December 2007. Im plementation of the OPI measures 
has progressed significantly  compared to 2006: 115% of  the budget was approved by 
the end of 2007, in favour of 383 operat ions, payments on the ground cover 98% of 
the total budget and 75% of  the total budget was certifi ed. The best performing 
measures of OPI are those relating to tr ansport infrastructure. Payments were 
sufficient by and large to avoid any “n+2” risks for the 2005 commitment.  
The monitoring committee of the Agriculture and Rural Development 
Operational Programme  held two meetings in 2007 (in May and November). 
The 2006 annual implementation report was submitted to the Commission in June 
EN 40   EN and was subsequently approved. Implementa tion of the programme is progressing a 
satisfactorily, the most popular measure bein g investment in agricultural holdings 
(making up almost 50% of the OP, for whic h almost 70% of the allocation has been 
paid). 65% of allocated funds had been ut ilised by the end of 2007. No changes were 
made in 2007. Three interim payment requests amounting to a total of EUR 64 530 125 were submitted to DG AG RI in 2007. This amounts to 38.01% of 
the total EAGGF-Guidance allocation for this OP for the period 2004-2006. 
Fisheries 
As FIFG execution was low, the OP Rural Development and Multifunctional 
Agriculture was changed in 2007 by Deci sion C(2006) 7276. The FIFG contribution 
has thus been reduced from EUR 7.25 million to EUR 4.1 million. Two payments paid in 2007 improved the spending rate in stantly after the re allocation of unused 
financial resources from the FIFG (i .e. from measures  2.3 Fisheries and 
3.1 Technical Assistance) to the EAGGF m easures. The cumulative FIFG sum paid 
to the Czech Republic is EUR 3 905 million. At present, this fund has reached the 
95% threshold of payment rate and is aw aiting the closure procedure. One payment 
claim at the end of 2007 exhausted the remaining balance of the 2005 commitment, 
and thus there is no problem with the “n+2” rule. Regular monitoring committee meetings are held. 
3.2. Objective 2 
The Single Programming Document Prague  Objective 2 receives support of 
EUR 71.3 million from the Structural Funds (only ERDF). Two monitoring committee meetings were organised for this programme in 2007. Despite a marked acceleration in project implementation in 2007, progress on the SPD Objective 2 was still lagging behind other Operational Programmes in the Czech Republic to some extent. The principa l reason lies in the fa ct that right, after 
its launch, the SPD2 Prague had concerns wi th an insufficient number of projects in 
the pipeline, a fact that hindered successful absorptio n of the available budget. 
Nevertheless, the whole allo cation was approved (allocated  to projects) during 2007, 
compared with only 15.5% of  the total available budget approved by the end of 2006. 
The best performing measures are the one s dealing with transport systems and 
improvement of public infrastructure in th e suburban areas of Prague. 91% of the 
latter measure was already executed by the end of 2007. The risk of “n+2” rule was 
finally avoided at the end of 2007. 
3.3. Objective 3 
The Single Programming Document Prague  Objective 3 receives EUR 58.79 million 
from the Structural Funds (ESF only). Two monitoring committee meetings took 
place in 2007: on 13 February 2007 and on 13 June 2007. The annual meeting was organised on 25 September 2007. Implementation caught up during 2007, with almost 100% of the total budget contract ed to projects, although in terms of 
(certified) spending the SPD is still laggi ng behind somewhat. The main sources of 
delay are a late start to OP implementati on, low absorption capacity and the need to 
manage a large number of small projects in  a rather complex implementing system. 
The best performing measures  are 3.1 (Development of in itial education as a basis 
for lifelong learning) and 2.1 (Integration of specific gr oups at risk of social 
EN 41   EN exclusion). Interim payment claims tota lling EUR 29.5 million were submitted by the 
end of the year 2007, which covers 50% of the total budget for 2004–2006 and was 
enough to avoid decommitment at the end of 2007. 
3.4. Community Initiatives 
3.4.1.  Equal 
The Czech EQUAL programme receives suppor t of EUR 32.1 million from the ESF. 
Two monitoring committee meetings took pl ace in 2007: on 12 June 2007 and on 
19 December 2007. Financial implementation improved during 2007, although in terms of (certified) spending the programm e is still lagging behind. The programme 
is reaching implementation, and the Czech authorities are working intensively to mainstream the results of this initiative. There are six thematic networks established 
in the Czech Republic: 
– Integration of people with diffi culties into the labour market 
– Entrepreneurship 
– Social economy and community services 
– Adaptability and lifelong learning 
– Equal opportunities for men and women; 
– Integration of foreigners and racially disc riminated persons into the labour market. 
Interim payment claims totalling EUR 15.5 million were submitted by the end of 
2007, which accounts for 48% of the to tal budget for 2004–2006 and was still 
enough to avoid decommitment at the end of 2007. 
EN 42   EN 4. GERMANY  
2000-2006 programming period The overall performance of programme implementation in German regions was good 
and, in general, the core targets can be e xpected to have been  globally attained, 
despite the fact that some program mes have suffered an “n+2” loss. 
Managing authorities regularly inform  their monitoring committees about 
programme execution in financial terms, w ith respect to the targets set for each 
(sub-)period, and the development of ke y indicators such as jobs created and 
investment volume co-financed, as compared  to the targets set for the programme. 
In addition to that, information on program me execution is delivered in the annual 
implementation reports. Apart from issu es concerning programme execution, the 
main focus of discussions in the m onitoring committee meetings was on the 
preparation of the new programming period.  
In addition to their duties regarding implementation of the 2000-2006 programmes, 
the managing authorities led and/or follo wed negotiations with the Commission on 
the new operational programmes for th e period 2007-2013. The National Strategic 
Reference Framework was adopted in  May 2007. All 18 new ESF and 18 ERDF 
German operational programmes for the Objectives “Convergence” and “Regional competitiveness and employment” were submitted and successfully negotiated through to final adoption in 2007. The ESF will be managed through 18 programmes, including one multi-objective programme at federal level and one 
programme per Land (Niedersachsen being an exception with tw o ESF programmes). 
4.1. Objective 1 
Overall, financial absorption of ERDF cont ributions in German Objective 1 regions 
was very satisfactory in 2007 and attained  more than 99%. The ESF reached 100%. 
Only the Objective 1 area of Berlin repor ted an amount of about EUR 12 million not 
spent from its 2005 commitment, which will be decommitted at closure. 
The general outlook for all Objective 1 regi ons in Germany is very positive for 2008 
(the final year of the programming pe riod 2000-2006). ERDF and ESF contributions 
still to be claimed by the end of 2007 were below 10% of total 2000-2006 commitments. There was only one  programme change made in 2007, by 
which Berlin adapted its financial plans to the “n+2” loss of about EUR 2 million 
incurred in 2004.  
Each programme had to submit one or tw o programme complement changes to be 
accepted by the Commission. In the majority of the cases, these changes aimed to 
fine-tune the financial endowme nt at measure level so as to avoid financial losses at 
programme closure on 31 December 2008. A certain number of programme complements were adapted in view of the s hortage of appropriate projects in certain 
measures, funds being shifted to other meas ures with more promising projects with a 
view to avoiding “n+2” losses. 
EN 43   EN The overall performance of physical  programme implementation in the 
German Objective 1 regions was good and, in ge neral, the core targ ets as set in the 
programmes can be expected to have been globally attained. 
The FIFG Programme for Germany under Objective 1 performed well enough to 
avoid any decommitment at the end of 2007. Legally binding commitments by then amounted to EUR 91 495 213, payments to  final beneficiar ies EUR 86 920 452. 
Since the beginning of the period, more than  2.7 million people have participated in 
ESF measures in Objective 1 regions. More than 40% of them were young people 
(17-24 years) and around 10% we re start-ups. Within the di fferent priorities, around 
40% was spent on “Active and preventive Labour Market Policy”, 21% on “Society without Exclusion”, 8% on “Vocational Tr aining, Systems and Infrastructure”, 
20% on “Adaptability and Entrepreneursh ip”, 10% on “Equal Opportunities” and 
about 1% on “Local Social Capital”. 
Six German regions benefit from  EAGGF Objective 1 programmes. 
Payments made by the Commission to th e German regions in 2007 amount to 
EUR 312.617 million. The operational progr ammes for Berlin, Saxony-Anhalt and 
Mecklenburg-Western Pomerania reached th e maximum level of 95% of the total 
Community contribution. 
In 2007, 58.63% of 2006 commitments we re used and the cumulative 
EAGGF-Guidance contribution duri ng 2000-2006 reached 93.94% of total 
commitments. 
4.2. Objective 2 
Financial absorption of ERDF contributi ons in German Objective 2 regions was 
satisfactory overall and attained almost  98%. Three regions (Rheinland-Pfalz, 
Saarland and the Objective 2 area of Berlin ) had not been able to absorb full their 
2005 commitments by the end of 2007. Financial absorption of the ESF reached 
100%. The outlook for 2008 is encouraging, however, since on average payment 
claims had not been submitted for only 13% and 20% of total 2000-2006 ERDF and 
ESF commitments respectively by the end of 2007.  
Each programme had to make to one or two changes to its programme complement, 
which in some cases concerned adapting financial plans to the “n+2” losses incurred in 2004 (Baden-Württemberg, Bremen and Rheinland-Pfalz), and updating information contained in the programming docum ents in others. In a number of cases 
(for example in Baden-Württemberg, Ham burg, Nordrhein-Westfalen), changes had 
become necessary to respond to a shortage  of good projects in certain areas, with 
funds being shifted to measures where mo re promising projects could be expected. 
These changes were made to avoid problems with the “n+2” rule.  
Overall, however, the outlook regarding programme implementation is positive since 
no fundamental problems are expected for 200 8 and the regions will generally meet 
the targets set in the programmes. 
EN 44   EN 4.3. Objective 3 
The Objective 3 programme is the largest in Germany, covering ESF support for the 
West German Länder and Berlin. It is  partly managed by the Government ( Bund ) and 
partly by the Länder . With the implementation of the Labour Market reforms in 
Germany, an increasing share of the program me was shifted to the Länder. Support is 
granted to six priorities: i) “Active and preventive Labour Market Policy”, 
ii) “Society without Exclusion”, iii)  “Vocational and general Education, 
Lifelong Learning”, iv) “Adaptab ility and Entrepreneurship”, 
v) “Equal Opportunities”, and vi) “Local Social Capital”. More than 2.5 million 
people have already participated in project s co-financed by the ESF. About one third 
of all participants are young people, a fact  which reflects the particular attention 
given to this group. In 2006, about 58% of  all unemployed young people living in the 
Objective 3 area were supported by the ESF.  
A last modification of the Objective 3 Pr ogramme was requested at the end of 2006 
and adopted in 2007. As a consequence, a change was made to the programme 
complement to adjust the financial plan. The change allowed the programme to be 
fine-tuned before closure. The measures to fight against youth unemployment, to 
promoter Lifelong Learning and Local So cial Capital saw an increase in budget 
allocation whereas the priority Adaptability and Entrepreneurship was once again reduced due to insufficient take-up.  
Two meetings of the mon itoring committee were organised in which DG EMPL 
participated. During these meetings, par ticular emphasis was given to a possible 
“n+2” risk for the year 2007 and to the poten tial risk of unspent funds at closure. 
Whereas no funds were lost in 2007, some  underspending remains likely at the 
closure of the programme. 
4.4. Fisheries outside Objective 1 
The Fisheries Programme for Germany outside Objective 1 faced another 
decommitment of EUR 6 434 197 at the end of 2007. Accumulated payments amount to EUR 46 170 796 or 67% of the commitments of EUR 69 426 526.  
4.5. Community Initiatives 
4.5.1.  Equal 
The German EQUAL programme proceed ed without difficulties in 2007. 
Declared expenditure for 2007 did not cause any problem as payment requests were sent in more frequently than at the beginning of the programming period. 
The programme had no automatic decommitme nt under the “n+2” ru le. In financial 
terms, the rate of execution of the ESF pa rt of the programme at the end of 2007 was 
85% (including payments on account). Following the amendment to the Decision in 2004, no further changes have been made. One monitoring committee meeting for the programme was held in June 2007, wh ich mainly discussed the Annual Report 
and the mainstreaming of EQUAL activities.  
Germany organised an event on business creation and social economy in June 2007, 
which looked at the mainstreaming of EQUAL projects and taking th is forward to the 
EN 45   EN new ESF programming period. The EQUA L closure conference took place 
in December 2007. 
4.5.2.  Leader 
Thirteen German regions (Bundesländer) and the national network participate in the 
Community Initiative Leader+. 
In 2007, EUR 58.1 million was paid, bringing total payments to EUR 205.2 million, 
out of total commitments of EUR 267.4 million (77% of the total). 
Only Saxony Anhalt has reached the maximum level of 95% of the total Community 
contribution.  
In line with the “n+2” rule, an amount of EUR 51 433 had to be decommitted from 
the Leader+ programme for North Rh ine-Westphalia (re lating to 2005). 
Implementation of the other programmes pr ogressed satisfactoril y. The annual report 
for 2006 was received and accepted in 2007 for all programmes except the one for Schleswig Holstein, which was a pproved at the beginning of 2008. 
4.5.3.  Urban 
There are twelve URBAN II programme s in Germany, with a total ERDF 
contribution of EUR 150.9 million (Berli n, Bremerhaven, Dessau, Dortmund, Gera, 
Kassel, Kiel, Leipzig, Luckenwalde, Mannheim/Ludwigshafen, Neubrandenburg and Saarbrücken). The six programmes in the new Länder each receive 
EUR 15.1 million, with the exception of Leipzig, which receives EUR 14.9 million. The six programmes in the Western part  of Germany each receive an ERDF 
contribution of EUR 10.1 million. The total elig ible cost of the twelve programmes is 
EUR 276.8 million.  
An annual report for 2006 was received for all programmes and accepted in 2007. 
For nine programmes, the managing authority is at the level of the “Land” whereas 
for the cities of Kassel, Kiel and Saarbr ücken it was transferred to the municipal 
authorities during the co urse of the programme. 
In general, the monitoring committees met on ce or twice a year, usually in spring and 
autumn 2006. Cities that met only once sent all the relevant information by written 
procedure to the members of the m onitoring committees and sent updated 
information on the state of implementation of projects. 
All German URBAN II programmes met the “n+2” rule for 2005 in 2007.  
Overall comments concerning the 2000-2006 period  
The performance of the German URBAN II Programmes can be described as 
“very successful”, both in im plementation and in management. The main focus of the 
programmes was an improvement in the ec onomic performance of distressed urban 
areas. Taking an applied integrated appro ach towards sustainable urban development, 
these economic measures were successfully  combined with social, environmental 
and cultural activities. In addition, new forms of governance and the active 
involvement of citizens in the implementation of the programmes help to meet the (in part very) ambitious goals of the programmes. 
EN 46   EN Also, good management of the programmes su pported the efforts made within the 
URBAN II programmes. The management of all German programmes has been 
effective and successful. A very innovative management approach was taken by the 
Mannheim-Ludwigshafen programme, where one joint programme  for two cities 
(situated in two different Länder) led to ne w forms of cooperation between the cities, 
in and outside the programme context. In th e cases of Kassel, Kiel and Saarbrücken, 
the role of the managing authority was successfully sub-delegated to the local (city) level.  
Another European good practice is the bilateral “German-Austrian 
URBAN Network” — a platform of inform ation for the thematic exchange of 
experience. Established in 1994-1999, the ne twork to date includes the 12 German 
and the two Austrian URBAN II cities, plus several other interest ed cities/partners. 
Within the framework of this network, several high-ranking international URBAN 
Conferences were organised throughout  this Structural Funds period 
(Strassbourg 2003, Saarbrücken 2005 and Graz/Maribor 2006). In 2007, 
three thematic meetings took place: on 19- 20 April in Ludwigshafen and Mannheim, 
on 18-19 June in Gera and on 20-21 Se ptember in Dessau. The programme 
managers, the Federal Ministry for Ec onomy and Technology and the Commission 
used these occasions to meet and discuss programme management issues. 
4.6. Closure of the 1994-1999 programming period 
ERDF In 2007, three German Operational programmes, with an open amount of 
EUR 7 million, were closed, but there are still 15 programmes or Community 
initiatives to be closed, with an open amount of EUR 103 million. For three 
Saxony programmes, the Commission laun ched the procedure of financial 
corrections pursuant to Article 24 of Re gulation (EC) No 4253/88, after completing 
the required procedural steps in 2007 without achie ving consensus between the 
Commission and the Member State concerne d. The Commission is expected to adopt 
a decision in the first half of 2008 where by the total amounts still open would be 
reduced by EUR 63 million to EUR 40 million. In a number of other cases, Germany 
has challenged the Commission’s decisions  before the Court of First Instance. 
ESF 
Out of the original 48 ESF mainstream  Operational Programmes for 1994-1999, 22 
are now fully closed. Four further ESF programmes were closed in 2007 and the 
outstanding commitment (RAL) for mainst ream programmes is now EUR 39 million. 
However, ESF closures for 1994-1999 re main a concern, given the German 
objections to the Commission’s proposals in several cases, combined with the high 
number of “irregularities” (open case s) declared. For a further 15 Community 
Initiative Programmes, there are still out standing commitments of EUR 21.3 million, 
because of contention of the calculation of the closure payments. A financial 
correction procedure needs to be launched for these programmes. 
EN 47   EN EAGGF 
As regards the EAGGF, all German programmes for the period 1994-1999 are 
closed. Recoveries have been made for several Objective 1 and Leader II 
programmes, due to irregularities and OLAF cases amounting to EUR 1.388 million.
EN 48   EN 5. DENMARK  
2000-2006 programming period 
5.1. Objective 2 
For the programming period 2000-2006, there was one Objective 2 Programme for 
Denmark. The funding for the programme initially totalled EUR 617 million, of which EUR 197 million from the Struct ural Funds (EUR 29 million is for 
phasing-out regions), EUR 217 million from the national public sector (an increase 
of EUR 9 million compared to the initial  allocation) and EUR 194 million from the 
private sector (a decrease of EUR 30 million). 
The programme aimed to create the conditi ons for self-sustained growth in the 
regions of Denmark facing structural pr oblems. It combined actions under the 
European Regional Development Fund (ERDF)  (71%) and the European Social Fund 
(ESF) (29%). 
The eligible areas consisted of five  geographical sub-regions: Bornholm 
(Objective 2), Lolland, Falster and Møn (O bjective 2), Nordjylla nd (Objective 2 and 
phasing-out), parts of the counties of Viborg, Århus, Ringkøbing and Sønderjylland 
(Objective 2 and phasing-out) and Sydfyn and islands not covered by the above 
regions (Objective 2). 
There were no meetings in the Programme (PMC) in 2007. There were two hearings 
organised in 2007, one regarding the annual report for 2006 and the other concerning 
a change in the Nordjylland Programme Complement.  
Work in 2007 was dominated by two majo r tasks. One was the closure of the 
2000-2006 programme, including a process to reallocate ERDF funding that had 
been granted to projects but was not used  up as intended and therefore was available 
for the programme. The other ta sk was implementation of the 
2007-2013 programme. 
ERDF  
By the end of 2007, the Commission had paid out EUR 115 million, approximately 
81% of the total allocation. In additi on, around EUR 9.5 million was in the pipeline 
for payment, which was enough to meet the requirements under the “n+2” rule. 
The actual execution of the ERDF part of the programme was as follows: A total of 1309 ERDF projects received grants amounting to approximately 
EUR 129 million, including technical assi stance, accounting for around 92% of the 
total ERDF allocation to the programme . Payments to projects amounted to 
approximately EUR 115 million, including techni cal assistance. Almost a third of all 
projects concerned support for investment  in businesses. The measure that has 
absorbed the largest amount of money is  infrastructure investment in the 
development of the regions. 
EN 49   EN ESF  
By the end of 2007, the Commission had pa id out EUR 39 million, approximately 
72% of the total allocation. In addition, around EUR 3 million was in the pipeline for 
payment, although this was not enough to meet the requirements under the “n+2” 
rule. The ESF has supported 901 projec ts, under which almost 22 000 persons 
(47% of them women) have partic ipated in competence development. 
The ESF part of the program me has helped to create new education and training 
courses and bolstered cooperation between education institutions in the regions. 
Furthermore, the ESF projects have helped  to make company training planning more 
systematic and to develop new course s and new ways of cooperation between 
education institutions and enterprises. 
5.2. Objective 3 
For the programming period 2000-2006, there is one Objective 3 programme for 
Denmark. Funding initially totalled  EUR 757.9 million, with EUR 378.9 from 
the ESF. After allocation of the perf ormance reserve, the Structural Fund 
contribution amounts to EUR 394.8 m illion, plus EUR 294.3 million from the 
national public sector (an increase of EUR 9.5 million compared to the initial allocation) and EUR 100.9 million from the private sector (an increase of 
EUR 6.7 million). 
The programme supports active labour ma rket measures, the labour market 
integration of vulnerable unemployed pe rsons, the development of employee 
competencies and entrepreneurship. 
There were no meetings of the Program me Monitoring Committee (PMC) in 2007. 
The annual report for 2006 was processed by written procedure and the annual meeting between the managing aut hority and the Commission was carried out 
through an exchange of letters. 
By the end of 2007, the Commission had paid out EUR 277 million from the ESF, 
which was 70% of the total allocation. Moreover, a payment of approximately 
EUR 43 million was in the pipeline. However this was not enough to meet the requirements under the “n+2” rule. The E SF Objective 3 programme has supported 
4109 projects with 137 000 par ticipants, 50% of them wo men. Priorities absorbing 
the largest shares of funding are suppor t for competence development and support 
for entrepreneurship.  
5.3. Fisheries outside Objective 1 
The total FIFG allocation, incl uding the reserve, to the country-wide Danish fisheries 
programme is EUR 213.3 million. The main meas ures, in line with the reform of the 
Common Fisheries Policy, are scrapping of  vessels, processing and marketing, 
collective investments and innovative measures. 
Implementation has been rather slow and the “n+2” rule had to be applied in 2004 
and 2005. The programme met its “n+2” target  for 2006. In total, the programme has 
so far been reduced by EUR 24.1 million. Financial execution has reached 79% 
EN 50   EN (EUR 150.1 million out of EUR 189.1 milli on). A decommitment of EUR 6.5 million 
is anticipated for “n+2” in 2007. 
5.4. Community Initiatives 
5.4.1.  Equal 
The Danish EQUAL programme has suppor ted 62 projects in total, with 
9 800 participants (62% of them women) . By the end of 2007, the Commission had 
paid out EUR 20 million, which was 66% of  the total allocation. In addition, a 
payment of approximately EUR 4 million wa s in the pipeline, a lthough this was not 
enough to meet the requirements under the “n+2” rule. The National Thematic Networks are all in place. The two most  active networks are Integration of 
immigrants and refugees and Adaptability. 
5.4.2.  Leader 
The total public allocation for the Danish Leader+ Programme 2000-2006 was 
increased in 2004 following indexation and now amounts to EUR 34.6 million, 
including an EU contribution of EUR 17.3 million. The programme was amended in 2006 when a transfer of funding between priorities was approved in order to 
ensure more efficient use of funds.  
The programme has progressed well. Payments in 2007 amounted to EUR 3 million. 
A total of EUR 12.7 million had been paid out by the end of 2007, giving a rate of financial execution of 73.4% of the amount  available for the programming period 
2000–2006. 
5.4.3.  Urban 
The Århus URBAN II programme is the only one in Denmark. The ERDF will 
contribute a total of EUR 5.38 million to this  programme, for which the total eligible 
costs amount to EUR 12.1 million.  
The managing authority for the programme is the Danish Agency for Trade and 
Industry, while the functional day-to-day  management is delegated to the 
URBAN Secretariat in Århus. The m onitoring committee met once during 2007. 
The “n+2” rule was met in 2007. 
Overall comments concerning the 2000-2006 period  
The URBAN programme successfully contribu tes to all three dimensions of the 
Lisbon Strategy. On the economic side, it ha s helped to initia te and stimulate 
entrepreneurial culture, edu cation and IT development. Along the social dimension, 
the programme contributes to employment e fforts, equality, soci al protection through 
citizen involvement, empowerment and crime prevention. Its environmental contribution is exemplified by th e project “Hasle Bakkelandskab”. 
5.5. Closure of the period 1994-1999 
All programmes were closed before the end of 2004. 
EN 51   EN 6. GREECE  
2007-2013 programming period 2007 was a challenging year for Greece due to both the start of the new programming 
period and the near end of the 2000–2006 peri od. Focal points of the year were the 
negotiations and approval of the NSRF a nd the thematic and regional OPs for the 
period 2007–2013. In terms of  the 2000-2006 programmes, attention centred on the 
“n+2” situation.  
The National Strategic Reference Framework for Greece for 2007–13 was submitted 
by the Greek authorities on 26 January 2007. Following a series of technical meetings, the decision on the NSRF
8 was taken on 28 March 2007. 
In the new programming period, Greece contains eight Convergence, three phasing-out and two phasing-in regions. The new programming period reduces the number of 
regional operational programmes from thirteen  to five, with all but one regional 
operational programme covering three regions. 
Ten of the Greek ERDF Operational Programmes for 2007–2013 were submitted on 
3 March 2007. There are five regional pr ogrammes and five thematic programmes 
(of which two also contain financing from  the Cohesion Fund), including technical 
assistance. Following negotiations with th e Greek authorities,  all ten programmes 
were adopted in October and November 2007. 
These ten Operational Programmes reflect th e priorities of the Commission, the main 
target priority being the Lisbon Growth and Jobs priorities. 60.5% of funding has 
been earmarked for these act ivities, reflecting 60.2% of  funds in the Convergence 
objectives and 68.3% in Regional Competitiveness and Employment regions. Aspirations to make use of JEREMIE and JESSICA have been included in a number 
of OPs, and the first funding agreement for JEREMIE was signed on 26 June 2007 
with the EIF. 
The ESF will co-finance three sectoral Operational Programmes and a National 
Contingency Reserve programme during the programming period 2007-2013. 
The three sectoral programmes are “Human Resources Development”, “Education and Lifelong Learning” and “Administrative Reform”. The Greek 
authorities submitted the drafts of the three sectoral programmes on 6 March 2007. 
Following negotiations with the Greek au thorities, they were adopted in 
November 2007.
9 The draft National Contingency Re serve OP was submitted to the 
Commission on 4 October 2007. The negotiati on and adoption processes for this 
programme are still running, the aim bei ng adoption by the end of July 2008 
at the latest. 
The three sectoral programmes res pond to the Lisbon obj ectives and the 
European Employment Strategy. Overal l, 96.52% (EUR 4 058.7 million out of 
EUR 4 205 million) of their resources ar e earmarked for actions under the main 
                                                 
8 C(2007) 1389. 
9 AROP: C(2007)5528, 9/11/2007, HRD OP: C(2007)5534, 12/11/2007, Education and LLL: 
C(2007)5534, 12/11/2007. 
EN 52   EN headings of Annex II to Regulation (EC) No 1828/2006, which is the 
Implementing Regulation for the Funds during the 2007-2013 period. Furthermore, 96.56% of their resources allocated to convergence regions (EUR 3 937.34 million 
out of EUR 4 077.40 million) and 95.57% of  their resources allocated to 
competitiveness and employment regions (EUR 121.97 million out of EUR 127.63 million) are earmarked for actions under the above headings. 
Seven new ERDF major projects were adopted in 2007.  
2000-2006 programming period  
6.1. Objective 1 
In the 2000–2006 period, the 13 regions of Greece were all under Objective 1.  
The summer of 2007 was marked by wildfires in the regions of Attica in July, and on 
mainland Greece, in the Peloponnese and in Western Greece in August. The destruction was extensive and a nationa l state of emergency was declared on 
25 August. President Barroso and Commissione r Hübner visited the affected areas to 
survey the damage at the end of August. A technical meeting was held in Athens on 
7 September to discuss the legal and fina ncial aspects of an extension of the 
deadlines of the programmes and initiativ es. In accordance with Articles 14(2) and 
30(2) of Council Regulation (EC) No 1260/ 1999, due to significa nt changes in the 
socio-economic situation, on 19 December 2007, the Greek authorities wrote to the 
Director-General of DG Regional Policy to  request an extension of the regional 
programmes in the affected areas and the national programmes directly affected by the wildfires. Following agreement with the Commission, the final date of eligibility will be extended for the regional programmes concerned and the requests for an extension for the national programmes affected will be examined on a case-by-case basis. 
In the first half of 2007, DG REGIO represen tatives participated in a meeting in 
Athens on the application of Community public procurement legislation by Greece. 
There was a hearing on the applicati on of the mathematical formula.  
In 2007, EUR 2 978 670 418 of ERDF pa yments and EUR 761 738 759 of 
ESF payments for the 2000–2006 period were made. There were no decommitments to the Operational Programmes under the “n+2” rule, but the Community Initiative 
URBAN may face an “n+2” reduction of EUR 1 327 522 for 2005 commitments. Recoveries of EUR 150 383 811.81 were made in 2007, with EUR 150 000 000 being due to Commission Decision C(2005) 1731 of 17 May 2005, whereby 
EUR 518 million is to be recovered in st ages between 2005 and 2008. There were no 
recoveries made in 2007 for the ESF. 
EUR 1 911 874 622 of ERDF comm itments and EUR 648 706 520 of 
ESF commitments were made for the 2007–13 period. 
The annual reports for all ERDF Operat ional Programmes for 2006 were approved 
by the monitoring committees by written proc edure and were rece ived and approved 
by the Commission. All but one Operati onal Programme submitted a request for 
changed, which will be processed in th e course of 2008. Only three OPs did not 
submit a revised Programme Complement and two OPs submitted 2 revised 
EN 53   EN Programme Complements in the course of the year. Overall, taking into account 
revisions submitted last year, 23 revi sions of Programme Complements were 
approved. Only the Operational Programm e “Roads” held a monitoring committee 
meeting. 
EAGGF 
The national mono-fund EAGGF Guidance Section programme for Greece was 
approved by the Commission on 6 April 2001. The Community contribution to this 
programme is EUR 1 233.4 million for a total cost of EUR 3 010.2 million. On 24 November 2004, the Commission appr oved the decision for the mid-term 
revision of this programme, which incl uded an additional am ount of EUR 250 000 
from the programming and performance rese rves. An additional modification of the 
programme was made on 7 December 2006, without however any impact on total 
EU co-funding.  
The thirteen regional multi-fund programmes approved during the fi rst half of 2001 
and last amended on 7 December 2006 amount  to a total EAGGF contribution of 
EUR 1 069 million. All programming co mplements were adopted by the 
monitoring committees by written procedure.  
Due to the extensive fires that took place in Greece in the summer of 2007, which 
affected — among others— rural infrastructu re, forestry and private investment in 
rural areas, Greece submitted a request to the Commission in autumn 2007 to extend 
the date of eligibil ity of the national mono-fund EAGGF Guidance programme and 
the four pluri-fund regional OPs of the a ffected areas of Attica, Mainland Greece, 
Peloponnese and Western Greece menti oned above to 31 December 2009. 
In 2007, payments reached EUR 583.300 million. Cumulative payments from the 
EAGGF Guidance Section since the st art of the 2000-2006 programming period 
(EUR 2 020.832 million) account for 73.85% of the planned budget. 
Fisheries 
Implementation of the FIFG Objective 1 “Fisheries” Operational Programme (OP) 
for Greece continued in 2007. Payments have been regularly submitted, albeit with a 
peak towards the end of the year. The programme in 2007 may face an “n+2” reduction of approximately EUR 9 718  million for 2005 FIFG commitments. 
Generally speaking, the pace of implementation, compared to previous years, was slower. 
As in previous years, the monitoring committee met in 2007. This meeting was 
needed to discuss the relevant aspects of the Operational programme, to examine the 
problems and to propose appropriate measures. 
The contract level at the end of 2007 wa s around 83% while the payments level was 
69% of total public expenditure. 
EN 54   EN 6.2. Community Initiatives 
6.2.1.  Equal 
In 2007, payments of EUR 21 334 072 were made for EQUAL. 
6.2.2.  Leader 
There is only one Leader+ programme  for Greece, which was approved 
on 19 November 2001 with a total cost, foll owing the 2004 indexation exercise, of 
EUR 368.700 million, EUR 186.130 million of which is the contribution from the EAGGF Guidance Section. The programme was last amended in November 2006. 
A request for extension of the date of eligibility was also submitted for Leader+ following the extensive fires that affected Greece during the summer of 2007. For 2007, payments amount to EUR 35.154 million. Cumulative EAGGF payments from the start of the 2000-2006 programming period (EUR 132.500 million) account for 71.19% of the total b udget of the programme. 
6.2.3.  Urban 
There are three URBAN II programmes in Greece. The programmes for Perama, 
Komotini and Iraklio were approved at th e end of 2001. Recent modifications were 
made to the programmes of Perama (a pproved in November 2006) and Komotini 
(approved in October 2006), while Iraklio  received approval in September 2006 for 
its modification to the programme complement . The total eligible cost for the three 
programmes is EUR 34.1 million. The total EDRF contribution is EUR 25.6 million. 
Perama, which did not benefit from i ndexation, receives EUR 9.25 million from the 
ERDF, Komotini EUR 8.15 million and Ira klio EUR 8.185 million. The total budget 
for Perama is EUR 12.34 million, for Komo tini EUR 10.867 million and for Iraklio 
EUR 10.914 million.  
Annual reports on implementation during 2006 were submitted in accordance with 
Council Regulation (EC) No 1260/1999. 
For all three programmes, the managing authority is the national government 
(Ministry for Environment, Physic al Planning and Public Works).  
Two programmes, Perama and Iraklio, di d not meet the “n+2” rule at the 
end of 2007.  
Overall comments concerning the 2000-2006 period in Greece 
The programmes have already contributed to substantially upgrading of the area 
receiving assistance and the quality of life of its inhabitants, who are aware of the 
programme and its contribution to the upgrading of the city, in particular in Komotini 
(East Thrace) and Iraklio (Crete). The learning process of the URBAN II integrated approach is seen as positive in Greece and could contribute in the future to significant changes in na tional urban policy-making. 
EN 55   EN 6.3. Closure of the period 1994-1999 
One programme from 1994-1999 was still to be closed, the OP “Access and Road 
Axes”. A hearing procedure for th is OP took place on 22 March 2007. 
The Commission informed the Greek authoriti es of its conclusions  by letter dated 
14 May 2007 and received supplementary inform ation and clarifications by letter of 
29 June 2007. On 7 December 2007, the Comm ission sent the Greek authorities a 
letter proposing a correction of approxima tely EUR 18 million and a final payment 
of EUR 31 million. 
EN 56   EN 7. SPAIN  
2007-2013 programming period The National Strategic Reference Fr amework (NSRF), the 23 ERDF and 
Cohesion Fund Operational Programmes (OPs) and the 22 ESF Operational Programmes were approved in 2007. 
Commission Decision C(2007) 1990 on th e NSRF was adopted on 7 May 2007. 
It provides for ERDF, ESF and Cohesion Fund contributions of EUR 23 057 192 151, EUR 8 057 328 822 a nd EUR 3 543 213 008 respectively, 
broken down over the follo wing priority axis: 
(1) knowledge economy development: research, development and innovation; 
information society; communication technologies; 
(2) entrepreneurial development and innovation; 
(3) environment; natural environment; wa ter resources management; risks 
prevention; 
(4) transport and energy; 
(5) local and urban sustainable development; 
(6) social infrastructure; 
(7) fostering entrepreneurship and employees ’, enterprises’ and entrepreneurs’ 
adaptability; 
(8) fostering employability, social inclusi on and equal opportun ities between men 
and women; 
(9) increasing and improving human capital; 
(10) transnational and inte rregional cooperation. 
Four of the ERDF and CF OPs cover mo re than one region (RTDI for and by 
enterprises, knowledge-based economy, Cohesion Fund-ERDF and 
Technical Assistance) while th e other 19 cover single region s or cities. As for ESF, 
there are 3 multi-objective OPs (Adaptab ility and Employment, Fight Against 
Discrimination and Technical Assistan ce and Transnational Cooperation) and 
19 regional OPs. Distribution by objec tive is as follows: four full 
Convergence regions (Andalucía, Castilla -La Mancha, Extremadura and Galicia), 
four phasing-out regions and cities (A sturias, Murcia, Ceuta and Melilla), 
three phasing-in regions (Canarias, Cas tilla y León and Valencian Community) and 
eight full Regional Competitiveness and Employment regions (Aragón, Baleares, Cantabria, Cataluña, Madrid, Navarra, País Vasco and la Rioja). The main 
achievements of the negotiating process are as follows: 
EN 57   EN – Doubling of resources earmarked for RTDI  compared to the current period (over 
EUR 6-8 billion for the peri od 2007-2013 compared to less  than EUR 4 billion in 
the 2000-2006 period). This is despite an over 40% loss of funds compared to the 
period 2000-2006. Some actions ar e flagged up as EU pilot initiatives, such as the 
new “Technology Fund” with EUR 2 billion.  
– A new urban policy approach, providing follow-up of the current 
URBAN Community Initiative, has been adopted. This includes a nation-wide 
action for integrated urban developmen t, with project selection based on a 
competitive call for proposal. 
– A more strategic planning role for the national authorities, over and above sound 
financial and administrative management, in  the form of the establishment of six 
“thematic” networks in key interventi on areas (Innovation, R&D, Urban Policy, 
Equal opportunities, Environment and Soci al Inclusion) for the exchange of 
good practice among national and regional administrations and greater 
institutional collaboration. 
– A further step towards a regional ap proach, placing greater emphasis on 
partnerships and public-pri vate collaboration, coveri ng in particular innovative 
actions for financial engineering (Jeremie and Jessica).  
– Gender equality has been mainstream ed, and the programmes pay increased 
attention to vulnerable groups: insertion of  immigrants was not a key priority in 
the 2000-2006 programmes, whereas in the new period EUR 218 million is allocated to specific actions to bolster th e participation of migrants in the labour 
market. There has been a shift towards a more holistic appr oach, tailor-made 
measures replacing separate training sc hemes by in the form of pathways to 
employment. 
– There has been a shift in education from palliative action for early school leavers 
to preventive action to re duce early school leaving. 
– Lifelong learning  
is clearly a key theme for the ESF in Spain, with an allocation 
of 17% of ESF aid. The National Reform  Programme (NRP) and the Commission 
paper entitled “Strategic Objectives and Key issues for Spain” identified the low 
cover rate of continuous training as a challenge th at had to be addressed. 
To this end, more attention is paid to reaching SME workers. 
There is a strong link to the NRP, with Lisbon earmarking targets well above the 
targets established in Regul ation (EC) No 1083/2006 for the combined operation of 
the 23 ERDF and 22 ESF Operational Programmes. 
2000-2006 programming period 
7.1. Objective 1 
The average financial execution for Objective 1 as a whole is quite positive. 
The current execution rate for the ERDF, compared to the amount programmed for 
2000-2006, is 82% and the amount executed has reached EUR 20 842 million out of 
the EUR 25 359 million committed for this Objective in Spain for the period. The current execution rate of the ESF is 89.36%, with an amount of 
EN 58   EN EUR 8 127 million (including advance payments) being reached out of the 
EUR 9 095 million committed by the ESF for this objective in Spain for the period 2000-2006 (EUR 7 508 million, excluding advance payments).  
Looking at the level of performance by prio rity axes, “Infrastructures for human 
resources development”, “Transport and en ergy”, “Local and urban development” 
and “Competitiveness” have an execution rate higher than the average for all 
programmes, while “R&D and Informati on society”, “Environment and natural 
resources” and “Rural development” priori ty axes are slightly below the average 
execution rate. 
As far as major projects are concerned, a total of 100 decisions confirming the 
Community participation rate had been approved by the end of 2006. No new major 
projects were approved during 2007, although eight aid requests for major projects 
were being examined by the Commission in 2007. 
Spain faced the possibility of losing funds fo r the first time because of the automatic 
decommitment of funds not duly c overed by certified expenses before 
31 December 2007. The operational programmes concerned are the Research, Development and Innovation OP (EUR 7.3 million) and the URBAN 
Programme for Orense (EUR 111 000). The loss  is limited as a result of a series of 
measures proactively taken in those programmes where a risk situation had been 
observed following the mid-term reviews ca rried out and subsequent measures taken 
by the managing authority to minimise the ri sks of losses due to application of the 
“n+2” rule. Two modifications were made to operational programmes and eleven to 
programme complements during 2007. 
However, as a vast operation of controls have been launched for several intermediate 
bodies, following the findings of the Co mmission audits, significant amounts were 
decertified from several intermediate bodies (IBs), and a “hold” practiced by the 
certifying authority, which avoi ded certifying expenses from  IBs that did not comply 
100% with the regulatory requirements. Gene rally, this is also  the reason why the 
overall target of making payments of EUR 3 200 million was not met and was 
limited to EUR 2 199 million (including Ob jective 1, Objective 2 and URBAN for 
the period 2000-2006). As for the ESF, ther e was automatic decommitment under the 
“n+2” rule concerning the 2005 annual commitment of the OP I+D, for a total 
amount of EUR 15 121 832.29.  
As in previous years, a total of 18 m onitoring committee meetings were organised 
in 2007, as well as meetings of  the CSF Committee. These m eetings were essential to 
discuss the relevant aspects of each progr amme, to examine potential problems and 
to take appropriate measures, including financial transfers within the same priority axes. 
A total of 18 annual reports (with ERDF participation) were submitted by the 
managing authority in 2007. In many cas es, the Commission made comments 
designed to improve the quality of the initial  versions. After anal ysing their contents, 
the Commission accepted them all. 
EN 59   EN In 2007, there were no annual meetings  concerning 2006. Du e to the intense 
preparation of the 2007-2013 programming  period, only a written procedure was 
launched in early 2008. 
Looking at the global impact of the Co mmunity Support Framework since 2000, and 
at the results of recent evaluations, its cont ribution the real growth is estimated at 
0.28 percentage points per year, which is  equivalent to 2.03% for the whole 
2000-2006 period. In terms of employment, th e CSF is estimated to have helped 
create or maintain about 255 000 jobs over that same period. The ERDF, which 
covers 60.84% of the CSF, can thus be said to have contri buted 62.14% of the 
increase in real growth and 58.04%  of the impact on employment. 
EAGGF 
Monitoring data regarding the EAGGF Guid ance section show that at the end of 
2007 Spain had reached an execution rate of 92.8%. The regions with the best programmes in terms of ex ecution performance were Castilla Leon, Cantabria, 
Extremadura and Murcia.  
Fisheries inside Objective 1 regions 
As for the FIFG in Objective 1 regions, a modification of the OP was adopted by the 
Commission on 14.03.2007. This modificatio n was meant to adapt programmed 
funding rates to actual practi ce in anticipation of the appl ication of recently adopted 
closure guidelines. 
Financial execution reached almost 84% by the end of the year, with no “n+2” 
automatic decommitment, since payments during 2007 exhausted the funds committed before the end of 2005.  
The OP and SPD monitoring committees met only once, on 20 June 2006 in Madrid, 
to approve their respective annual execution reports, which were then forwarded in 
good time to the Commission.  
Implementation problems of sp ecific relevance to the FIFG  in Spain were discussed 
at a number of technical meetings and at the annual meeting in Brussels on 
28 January 2008, while issues of general relevance to OPs for Objective 1 regions were dealt with during the annual encounter for the Spanish CSF. 
7.2. Objective 2 
The average financial execution for Objec tive 2 is very positive. The current 
execution rate, compared to the am ount programmed for 2000-2006, is 78.8% and 
the amount executed has already reached EUR 2 013 million, out of the EUR 2 554 million committed for this Objective in Spain for the period. The current execution rate for the ESF is 86.45% and the amount executed is EUR 268 million(including advance payments), out of a total amount of EUR 310 million committed for the ESF in Spain under this objective for the period 
2000-2006 (EUR 245 million, excluding advance payments). 
No automatic decommitment for ERDF had been applied under the “n+2” rule as at 
31 December 2007. 
EN 60   EN As in previous years, the monitori ng committees of the seven SPDs met once 
in 2007. These meetings were concluded by wr itten procedures in several cases, in 
particular for the modifications of the SPDs and programming complements. 
Annual reports for the seven interventions were submitted on time and were examined by the Commission and the monitoring committees. The quality of the initial Objective 1 reports was acceptable, but the Commission made comments designed to complete the content in the fi nal versions. Two modifications were made 
to operational programmes and eight to programme complements during 2007. 
7.3. Objective 3 
The CSF for Objective 3 is implemente d through twelve operational programmes 
(seven regional and five thematic, multiregional programmes). The total Community contribution for these twelve  programmes is EUR 2 316 million for the 
period 2000-2006. Of this, EUR 919 million is for the regional programmes and EUR 1 397 million for the thematic  and multiregional programmes. 
These programmes are designed to support th e development and improvement of the 
systems of vocational traini ng, the insertion and reinser tion of unemployed people in 
the labour market, the promotion of the part icipation of women in the labour market, 
the fight against sexual discrimination, the insertion in the labour market of 
disadvantaged people, and the promotion of  entrepreneurship and lifelong learning 
for employed people. The global balance of implementation in 2007 was quite positive. Both physical and financial execu tion may be qualified as very positive. 
The financial execution rate reached 92.82% for the twelve programmes, which amounts to EUR 2 142 685 515.19, out of a total amount programmed for 2000-2006 
for this objective in Spain of 2 308 4 73 268.4. The current execution rate is 91.11% 
for the regional and 93.95% for the multiregional programmes  
In 2007, there were no automatic decommitments under the “n+2” rule from the 
2005 annual commitments for Objective 3 prog rammes. As in previous years, the 
monitoring committees for each of the twel ve programmes met in 2007, in particular 
to examine the annual execution reports. After being analysed by the different monitoring committees, the reports were pr esented to the Commission in good time, 
and accepted. At the end of 2007 discussions on the annual meetings for the multiregional and thematic programmes were conducted by written procedure. 
There was no monitoring committee meetin g for the CSG in 2007 due to the 
preparation and adoption of the ESF 2007-2013 programming documents. 
7.4. Fisheries outside Objective 1 
For regions outside Objective 1, financia l execution had reached almost 80% by the 
end of 2007. There was no automatic decommitment pursuant to the “n+2” rule as the last payment request, which had b een posted just before the end of 2007, 
exhausted all the funds comm itted before the end of 2005. 
A modification of the Single Planning Document (SPD) for regions outside 
Objective 1 was adopted by the Co mmission on 14.03.2007. This modification was 
meant to adapt programmed funding rates to actual practice in  anticipation of 
application of the recently adopted closure guidelines. 
EN 61   EN 7.5. Community Initiatives 
7.5.1.  Equal 
Actions under the Spanish EQUAL programme proceeded without any major 
difficulties in 2007. At the end of 2007, the ra te of financial execution of the ESF 
part of the programme was a pproximately 82% of the total.  The financial plan of the 
programme was amended by Co mmission Decision C(2007)6843 of 
22 December 2007, due to the automatic decommitment for 2004. In 2007, automatic decommitment was avoided. Ma instreaming and thematic activities 
continued in 2007, projects for Action 3 were selected and closing meetings of the 
Thematic Groups were held. Evaluation of mainstreaming and innovation is ongoing. 
7.5.2.  Leader 
By the end of 2002, the Commission had approved eighteen Leader+ programmes 
(one horizontal programme and seventeen regional programmes), with a planned 
EU contribution of EUR 502.06 million for 2000-2006 (after the 
indexation exercise).  
Seventeen programmes are currently im plemented via global grants and one 
(Basque Country) in the form of a common Operational Programme with a 
programme complement. One hundred and fo rty-five Local Ac tion Groups (LAGs) 
have been created. The total ar ea covered by the LAGs is 251 186 km
2, covering 
14% of the entire national population. 
From the official monitoring data availabl e at end 2007, the rate of interim payment 
is 72.5% of forecast expenditure.  
Eighteen annual reports were submitted in 2007 and examined by the monitoring 
committees and the Commission. The qual ity of the reports was considered 
acceptable. 
During 2007 the Commission amended three programmes in order to decommit that 
part of the funds committed in 2004 but not settled at the end of 2006 (“n+2” rule). 
The main reason behind this decommitment was the late start of the programmes. 
Eight financial plans were adjusted in th e course of 2007 (changes within the same 
axis to improve efficiency). 
7.5.3.  Urban 
There are ten Community Ini tiative Programmes in Spain, with an EU contribution 
of EUR 114.1 million, which accounts for 15%  of the total URBAN II budget for the 
period 2000-2006. 
The Spanish URBAN II Community Initia tive programmes are being implemented 
steadily, in accordance with the orig inal programming. All ten programmes 
submitted admissible annual implementation reports for 2006 in June 2006. There is only one programme (Orense) that did not meet the level of payments required to 
avoid application of the “n +2” rule at the end 2007. 
EN 62   EN The managing authority for the progra mmes is the Minist ry of Finance. 
Management and implementation were de legated to the local authorities. 
Overall comments for the 2000-2006 period 
Focusing on a single area, combined with  the strong local pa rtnership and the 
participation of several agencies in the decision-making procedure, has ensured that 
URBAN projects run smoothly and are sustainable. 
Project monitoring is being carried out effectively.  
7.6. Closure of the 1994-1999 programming period 
At the end of 2007, the following three ERDF  programmes still remain open (out of 
a total of 106), with outstanding commitments (RAL) of EUR 4 395 423.58:  
– DOCUP 5b País Vasco (RAL: EU R 114 120.04): pending validation of 
Commission Decision by Legal affairs unit (REGIO.B.3),  
– PO Medio Ambiente (RAL: EUR 2 199 785), and  
– PIC REGIS España-Canarias (RAL: EUR 1 967 440): awaiting a ruling by the 
Spanish courts. 
As for the ESF, remaining outstandi ng commitments of EUR 5.1 million were 
awaiting a ruling by the Spanish courts at the end of 2007. This concerns the three 
programmes of INEM Objective 3, Catalonia Objective 2 and Catalonia Objective 3, 
which were suspended by decision unde r Article 24 of Regulation 4253/88 
(Commission Decision C(2001) 2146 of 22.10.2001).  
As regards the closure of 1994- 1999 programmes assisted by the 
EAGGF-Guidance Fund, the last eleven ope n programmes were finally closed in 
2007 and the final decommitment will be ma de after adoption of the Decision on 
financial corrections. However, there are still ongoing audit procedures, which might 
also result in financial corre ctions for several programmes. 
EN 63   EN 8. ESTONIA  
2007-2013 programming period A first draft National Strategic Reference Framework (NSRF) was submitted by the 
Estonian authorities in Ma rch 2006. The informal negotiations for Estonia’s NSRF 
were concluded with the submission of the of ficial NSRF by the Estonian authorities 
on 1 March 2007. In 2007 the Commission took its decision on the NSRF and 
adopted the OPs. 
The NSRF is closely related to the Est onian National Reform Programme; it covers 
three OPs, two of which are ERDF/CF and one ESF. The managing authority for all 
OPs is located within the Mi nistry of Finance of Estonia. The total EU budget is 
EUR 3 403 million. The NSRF core targets refer to achieving fast as well as socially and regionally balanced sustainable econom ic development, which in turn should 
help to achieve real convergence.  
The main challenges for 2008 include the de velopment of selecti on criteria for the 
operations supported, the se lection of major projects  and the actual start of 
implementation of the 2007-2013 programming period in order to meet the n+3 
requirement in 2011. To date, slow progr ess has been noted in this regard. 
2000-2006 programming period 
Estonia, an Objective 1 NUTS II country, has been able to finance eligible operations 
from the Structural Funds since 1 January 2004, with ERDF funding of 
EUR 226 million and ESF funding of EU R 69 million, out of the total of 
EUR 371 million for the Objective 1 Structural Funds. The SPD identifies the core problems of Estonia (low GDP, unemployment,  disparities) and sets out the overall 
objective of “fast and regionally balan ced sustainable economic development”, 
mainly by shifting into higher value-added production. The SPD strategy is based on 
four priorities (excluding technical assi stance): (i) Human Resource Development, 
(ii) Enterprise Competitiveness, (iii) Agri culture, Fisheries and Rural Development 
and (iv) Infrastructure and Local Deve lopment. The SPD (Structural Funds) is 
coordinated by the Foreign Financing Department of the Ministry of Finance 
(i.e. managing authority). The paying authority and the audit body are the 
Departments of National Fund and Financ ial Control respectively, in the same 
ministry. There is one monitoring committ ee and each priority is monitored by the 
“Priority Working Group”. 
8.1. Objective 1 
Achievement of Objectives The Estonian 2004-2006 Objective 1 programme  has partly contri buted to the high 
growth rate in Estonia. Unemployment  decreased from 10.2% in 2004 to 4.9% 
in 2007 (national data). Cohesion Policy has facilitated the transf er towards a more 
knowledge-intensive economy and provided the necessary infrastructure for the 
expansion of economy.  
EN 64   EN 3 200 new jobs were been created, 8 500 unemployed persons received training, 
12 700 workers received on-the-job training, and 400 new enterpri ses were created 
with the support of the funds. In addition,  5 800 modern student places were created 
in vocational training centres, and 91 000 persons benefited from improved local 
government services in their neighbo urhood (data as at the end of 2006).  
In addition, the programmes have had an effect on softer issues, such as the 
introduction of an evaluation culture, the raised level of audit quality (evidenced also through the signature of the contract of confidence for ERDF between the Commission and the Estonian authoritie s), increased management and project 
planning capacity, and increased levels of  administrative capacity at sub-national 
level. 
The commitment levels (in terms of a pproved applications in the Estonian 
monitoring system) had reached 93% at national level in March 2008. 
The payment levels to beneficiaries are sa tisfactory for most measures and covered 
almost 80% of the programme. In 2007, the Commission paid EUR 73.5 million to Estonia from the ERDF. It should be noted that Estonia has no “n+2” issues and the 
requisite levels of funding utilisa tion were reached by the end of 2007.  
Monitoring committee meetings 
Two monitoring committee meetings were held in 2007. The Committees include 
participants from all stat e institutions involved and al so from civil society. 
Annual meeting 
The 2007 annual meeting between the Co mmission and the Estonian managing 
authority was organised in January 2008, due to the heavy workload preparing for the new period at the end of the previ ous year. The annual meeting covered the 
progress of programme implementation, preparation of the 2007-2013 programming 
period and management and audit issues. 
The quality of implementation and the admi nistrative capacity of the Estonian 
managing authority and implementing bodies  was monitored regularly, while also 
being the subject of several technical disc ussions (in the MC or in connection with 
preparing for the new period) during 2007, along  with issues such as the capacity of 
local authorities (financial, technical a nd administrative) to prepare for larger 
projects, mobility of staff, rising construc tion prices, rising pri ces in the field of 
training and better forecasting of pricing in technical design. Three main issues were 
identified as important for monitoring in the new period: staffing and mobility, 
procurement rules and projects pipeline. A nother issue is the technical capacity of 
final beneficiaries, e.g. of local authorities. 
8.2. Community Initiatives  
8.2.1.  Equal 
The Estonian EQUAL programme proceeded  without any major difficulties in 2007. 
There are thirteen Development Partners hips funded under the EQUAL Community 
Initiative. At the end of 2007, the rate of financial executi on of the ESF part of the 
EN 65   EN programme was 67%. Automatic decommitment under the “n+2” rule was avoided 
for 2007. No amendments were made to the programme. 
8.2.2.  Leader 
Estonia has implemented the Leader appro ach through the measure “Local initiative -
based development projects - LEADER”, as part of the Estonian National 
Development Plan for 2004–2006. The meas ure was implemented through two 
options: acquisition of skills (whereby local development strategies were prepared) and integrated rural area development stra tegy (the strategies were implemented).  
Local Action Groups applied for support unde r the Leader measure at the end of 
2006. By the beginning of 2007, 24 LAGs had been chosen. Twenty-one groups 
received support to prepare local development strategies and three groups started to implement their existing strategies. Total support was EEK 28.8 million (EUR 1.84 million). 
A Leader Information Centre was establis hed as a support structure for the groups. 
In 2007, Local Action Groups covered 181 out of 194 local government units in rural 
areas, i.e. approximately 93% of the total rural area. In addition, around 
1000 villages elected non-official village representatives (out of a total of over 
4000 villages). About 700 local societies we re involved in village development. 
EN 66   EN 9. FRANCE  
2007-2013 programming period The 2007-2013 Convergence Objective in Fran ce covers the four French outermost 
regions. All the other 22 metropolitan  regions are now covered by the 
Competitiveness and Employment Objective. For each Convergence and Competitiveness Region, a Regional programme was adopted during 2007. 
In addition, four multiregional program mes, two for mountain areas (Alps and 
Massif Central) and two for river basins (Loire and R hone) were also adopted. 
A national programme provides technical assistance and IT management for all 
programmes. The total number of French programmes is 31. 
Negotiations for the 2007-2013 period program mes focused on the concentration of 
financial resources in a reduced number of priorities of the Lisbon strategy. 
At the end of negotiations, the earmarking rate for France was 78,6% for competitiveness and 62% for convergence regions. 
Research and Innovation is the main priority in almost all Regional Competitiveness 
and Employment programmes. The vast majority of French regions committed themselves to improving their regional strategy for innovation by way of an 
ambitious exercise to be carried out in conjunction with the Commission, 
the French authorities and in ternational experts, which s hould be finalised two years 
after programme adoption. The programmes al so seek to improve the employability 
of workers through the prom otion of lifelong learning. 
Environment and risk prevention and information technologies follow in the 
priorities chosen by the regions. Some regions also proposed measures on urban policy, integrated in global strategies. Terri torial projects are still found in some 
regions, in Brittany, for instance, with a major project of a TGV connecting Rennes 
and Quimper to Brest. A certain weakness in  the indicators was also noted in the 
proposals for programmes, but signi ficant improvements were made 
during negotiations. 
A national seminar focusing on Innovation and the anticipati on of economic and 
social changes was co-organised by th e Commission and French authorities in 
Bordeaux, and a large audience (over 750 par ticipants) highlighted  the importance of 
this issue in the 2007-2013 programming period. 
2000-2006 programming period  
9.1. Objective 1 and 2 
The 2000-2006 Objective 1 in France covers  the four French outermost regions
10 
and, under transitory support, Cors ica and three districts of the 
North/Pas de Calais region.  
                                                 
10 Guadeloupe, Guyane, Martinique, Réunion. 
EN 67   EN Objective 2 concerns 21 of the 22 regions from metropolitan France. 
Four national programmes concerning techni cal assistance and IT management add 
to the 27 regional programmes. 
2007 was marked by several modification decisions (decommitments, financial 
modifications) to prepare for closure. A ll regions worked on the preparation and 
negotiation of the new period programmes. 
Average programming at the end of Decem ber 2007 (all Structural Funds together) 
increased up to 100.0% for Objective 1 regions and up to 98.4% for Objective 2 regions.  
The executed payments rate under Obj ective 1 was 82.38% from the ERDF and 
86.43% from the EAGGF (Guidance). 87.61% was paid from the ERDF under Objective 2.  
Decommitments of the 2005 commitment (ava ilable up to 31 December 2007) were 
limited for the ERDF to the national program me for IT management Objective 2 and 
technical assistance Objective 2. No decomm itments were registered for the EAGGF 
Guidance Section. 
31 annual reports were received on implement ation in 2006 of the Objectives 1 and 
2. An analysis of the reports confirms th e overall improvement in content, although 
significant differences remain between  regions. Accounting and financial 
information are complete but the qualitat ive analyses of the programmes should be 
improved, in particular as re gards quantifie d indicators. 
The high error rates observed following th e national French audit results puts the 
programmes at risk of possible suspension. 
9.2. Objective 3 
The French Objective 3 programme is a national programme but implementation is 
highly devolved to all the regions. Th e total appropriation for Objective 3 is 
EUR 4 918 million. The average program ming as at 15 December 2007 was 94%. 
At the end of 2007, 75.52% of this budget (EUR 3 714 042 039) had been paid out 
by the Commission. The 2007 annual meeti ng between the Commission and the 
French managing authorities took place on 7 December 2007. 
The year 2007 was important in terms of final reprogramming, spurred mainly by the 
need to optimise the allocation of funds in order to eliminate any “n+2” risks at the 
end of the period, and to allow optimal reprogramming of the agreed financial 
correction (EUR 110 million). In financia l terms, at the end of 2007, the average 
programming was 85% of the to tal and the rate of execution  of the ESF part of the 
programme was 61.37%. The programme was unable to avoid a decommitment of 
EUR 12.951 576 of the 2005 commitment.  
9.3. Fisheries outside Objective 1 
In France, the FIFG continues to be implem ented in line with the objectives of the 
reformed Common Fisheries Policy and the n eed to improve this sector. Execution is 
running well, both in terms of implementa tion and in terms of projects committed. 
EN 68   EN Thus, all French maritime regions are engaged in implementation of the fisheries 
structural policy. The sum of  the declarations of expend iture at the end of 2007 came 
to a total of EUR 861 million, of which EU R 205 million from the FIFG, i.e. 84% of 
the FIFG reserve. Altogether, more than  EUR 1 000 million has been invested or 
committed in 9 183 projects with support from the FIFG, 30% of the projects being in Brittany. 
France therefore exceeded 84% of its allocation in terms of reimbursement 
(EUR 205 million from the FIFG), with a globally very good execution rate and shorter delivery delays. 
At the end of 2007, the number of projects  with assistance from the FIGF was more 
than twice the number of projects for the whole of the previous programming period 
(1994-1999). 
9.4. Community Initiatives 
9.4.1.  Urban 
The URBAN II programme in France consists  of nine programmes being carried out 
in the following cities/gr oup of cities: Bastia, Bordeaux/Cenon/Floirac, 
Clichy-sous-Bois/Montfermeuil, Grenobl e, Grigny/Viry-Chatillon, Le Havre, 
Le Mantois, Les Mureaux/Val-de-Seine, Strasbourg. Four of the nine programmes 
(Clichy, Le Mantois, Grigny and Val-de-Sei ne) are located in the Ile de France 
region, with an ERDF contribution of EU R 51 million. In total, nine programmes 
received an amount of EUR 284.6 m illion, of which EUR 102 million from 
the ERDF. 
The annual reports for 2006 were submitted to the Commission on all the 
nine programmes and all of them met their “n+2” objectives for 2007. 
In the majority of cases, the mayor or the president of the inter-commune 
(four programmes) cooperati on structure fulfils the role of the managing authority, 
while the regional perfect plays this role for three programmes. The latter two cases 
concern both a public corporation and a public interest groupi ng chaired either 
by the mayor or by the prefect. In each  case, the paying authority is the 
Caisse des Depots et Consignes. 
Overall comments concerning the 2000-2006 period in France 
In general, the French programmes made  good use the added value of URBAN II 
programmes. They support the participation of citizens, of local associations and 
inter-commune cooperation. In addition, in 2002 the nine French URBAN II 
programmes, supported by the partners repres enting the state (the Interministerial 
Delegation to the City — DIV, the Interministerial Delegation to Planning and to the Competitiveness of the Territory — DIACT, the Deposit Bank — CDC) created ‘URBAN Network France’, whose aim is  to pool and share good practices, 
knowledge and experiences, in an effort to  optimise the management of URBAN II 
programmes in France. 
EN 69   EN 9.4.2.  Equal 
In financial terms, average programming was 85% of the total at the end of 2007. 
However, the programme was unable to avoid a decommitment of EUR 12 951 576 
of the 2005 commitment.  
The French managing authorities organise d a forum on combati ng discrimination 
based on origin, bringing together 270 pa rticipants from 18 Member States. 
The platform highlighted the need for pr ofessional stakeholders, the importance of 
intermediaries, the promotion of best practice, the recognition of immigrants’ 
specific pathways towards the labour ma rket and international exchanges. 
9.4.3.  Leader 
The French National Programme in the Co mmunity Initiative Leader+ was adopted 
on 7 August 2001 (C(2001)2094) in the form of  a global grant. Accordingly, the 
National Centre for the Setting-up of Farm ing Structures (CNASEA) was designated 
as the management authority. The total Community contribution, initially amounting 
to EUR 272 834 444, was set at EUR 263 611 385 by Commi ssion Decision 
C(2006)2039 of 16 May 2006. By Comm ission Decision C(2007)3542 of 
17 July 2007, the EAGGF (Guidance) contri bution to this progr amme was reduced 
by EUR 3 702 304. As at 31 December 2007 , the Community contribution was 
EUR 259 909 081.  
The programme is implemented by one hundred and forty Local Action Groups 
(LAGs), which were selected in 2002. Their action plans were drawn up in 2003, 
after signature of bilateral agreements with CNASEA. 
Payments reached EUR 47 124 756 in 2007. The level of expenditure incurred meant 
there was no “n+2” decommitment.  
Financial implementation since 2001 ha s reached a total of EUR 184.5 million, 
which amounts to 71% of the total Co mmunity contribution to the programme. 
9.5. Closure of the 1994-1999 programming period 
Balance requests continued to be processed during 2007. The outstanding 
commitment (RAL) of the ERDF was reduced to nearly zero during 2007 (compared to EUR 693.9 million before examination of the final reports and balance requests on 
1 January 2003).  
For the EAGGF (Guidance), the RAL wa s reduced by EUR 3.41 million during the 
year and was down to zero on 31 December 2007. 
The last OP to be closed, Ile de la Re union, is waiting for further information from 
the French authorities and s hould also be closed shortly. 
EN 70   EN 10. ITALY  
2000-2006 programming period 
10.1. Objective 1 
Budgetary execution According to the official monitoring data as at 31 December 2007 provided by the 
Italian authorities, the average commitment rate on total eligible expenditure (at CSF level) is 111% and the average paymen t rate on total elig ible expenditure is 
79.8% (all Structural Funds together).  
The ERDF commitment rate is 114.5% a nd the payment rate is 80.0%. As regards 
the EAGGF Guidance section, the monitoring data provided by the Italian Ministry 
of Economy and Finance show a commitmen t rate of 100.9% and a payment rate of 
79%. 
ERDF programmes performing the best in financial terms are the national 
programmes for “Education” (96.1%) and “Local develo pment” (payment rate: 
91.9%). At regional level, the best perf orming programmes in financial terms are 
“Molise” (87.5%) and “Basilicata” (82.9%). The programmes performing the poorest 
in financial terms are the regional programmes for “Sic ilia” (73.8%), “Campania” 
(74.4%), “Puglia” (74.5%) and the nationa l programme for “Research” (75.6%). 
The best performing EAGGF programmes, ac cording to the end-of-year data for 
2007, are the three regional programmes of Molise (85.4 %), Calabria (79.8%) and 
Basilicata (78.5%). 
As far as the FIFG is concerned, financial implementation of the national fisheries 
programme (PON Pesca) as at 31 Decem ber 2007 had reached 93% in terms of 
commitments on total eligible expenditure and 68% in terms of payments on total 
eligible expenditure. At regional level, th e best performing progr ammes in terms of 
FIFG are “Campania” (87.2%), “Calab ria” (76.2%) and “M olise” (75.4%). 
The programmes performing the poorest in financial terms are the regional 
programmes for “Puglia” (65.6%), “Sici lia” (65.1%) and “Sar degna” (49.2%). 
ESF shows a higher payment rate (80.7%), with a lower commitment rate (104.4%). 
On average, national progr ammes perform significantly better than regional ones 
(at the end of 2007, payment rate of 89.6%  against 77.5%), the best performing 
programme being the OP “Resear ch” (payment rate of 91.8%). 
With respect to the “n+2” rule at the end of 2007 for ERDF, a decommitment is 
envisaged for the “Sardegna” programme  of around EUR 11.3 million and also for 
two URBAN II programmes (Misterbianco and Taranto) for EUR 0.06 million and 
EUR 2.4 million respectively. The ERDF d ecommitment proposal for Sardegna is 
due to differences in interpretation of application of the “n+2” rule by the Italian authorities. No decommitment is e nvisaged under the “n+2” rule at the end of 
2007 for ESF OPs. 
EN 71   EN As regards the “n+2” rule at the end 2007 for the FIFG, a decommitment of around 
EUR 10.4 million is envisaged for the na tional OP for fisheries (PON Pesca), 
together with approximately EUR 2.4 m illion for “Puglia”, EUR 4.1 million for 
“Sardegna”, EUR 0.3 million for “Molise” and EUR 0.7 million for “Calabria”. The FIFG decommitment for Puglia and Sard egna is due to insufficient expenditure 
by the end of the year, while, for PON Pesca, Molise and Calabria, the decommitment is due to the late transmission of the respective payment requests, i.e. beyond the 31 December deadline. 
Overall results of programme implem entation throughout the programming period 
Although information on results and impact s is still scarce, outputs are becoming 
closer to definitive values and can provide evidence of the effort and effects of the use of Structural Funds. In particular: 
– In the environmental services sector, pr ogress has been made in separate waste 
collection: 9 000 000 people more have access to it thanks to Structural Funds assistance and 63 new waste treatment pl ants have been put  into operation. 
– Moreover, wastewater treatment capacity has increased by about 
7 200 000 inhabitants (equivalent) due to ne w or upgraded plants co-financed by 
the ERDF, in parallel with the upgrade of sewage networks (890 km of new 
pipelines). 
– The water cycle has also been boosted through action on primary water (3097 km 
of new aqueducts). 
– A huge effort in soil protection has been  made: the hydro-geologi cal risk has been 
reduced over an area of 876 526 km² and 438 hectares have been reclaimed by decontamination. 
– Environmental actions were complemented  by projects on sustainable energy: 
more than 5839 plants for Renewable En ergy Sources received contributions, 
mostly in the solar field (5821); in a ddition, 1028 operations concerning energy 
efficiency were funded. 
– R&D and competitiveness: the productive sector has largely benefited from 
ERDF assistance: 19 983 enterprises re ceived support (incl uding 202 start-ups). 
In addition, R&D projects involving 931 enterprises were funded, along with 
769 cooperation projects between rese arch centres and enterprises. 
Some 82 research centres were  also increased in capacity. 
– Transport infrastructure was further devel oped, priority being gi ven to sustainable 
modes of transport, with the construction of 2401 km of railways, 692 km of 
roads, and 4 km of new docks. 
– The Information Society was extended: 588 municipalities were connected to 
broadband, 425 e-government t ools for enterprises were put into practice and 
7255 enterprises took advantage of new IT services/tools. 
– Some improvements were made in public employment services. 
EN 72   EN As regards the EAGGF Guidance section, s ubstantial progress has been made in 
investments in agricultural holdings to improve the processing and marketing of 
agricultural products. 
Another significant result concerns the progr ess made in Objective 1 regions in the 
field of administrative capacity and gove rnance, which is a pre-condition for 
effective results in other sectors. 
Programme amendments, subjects covered at the annual meeting and the meetings of 
the monitoring committees 
Programme modifications 
8 proposals for programme amendments have  been submitted by Italy for Objective 
1 programmes (“Puglia”, “Local deve lopment”, “Molise” (2), “Campania”, 
“Calabria” and “Sardegna”(2)); 6 decisions have been adopted to date. The main 
reason for amending programmes was sound management and financial implementation at the end of the programmi ng period (amendment of allocations by 
priority axes). The allocation between funds and programmes was left unchanged. 
A new amending decision was also adopted for PON Pesca following the “n+2” decommitment at the end of 2006. 
Annual meeting 
In 2007, a single Annual Meeting was held in L’Aquila for Objectives 1 and 2; 
this was regarded as being good practice and will be continued. The agenda included:  
– 2006 annual reports;  
– financial execution and applic ation of the “n+2” rule;  
– resources from projects fina nced by national sources;  
– setting-up of monitoring committees a nd transitional phase 2000-2006/2007-2013; 
– preparation of 2007-2013 programming period.  
Meetings of monitoring committees 
Monitoring committee meetings for all pr ogrammes, excluding Sardegna, took place 
once or twice during the year: while they all examined the usual issues linked to 
implementation, the main issue wa s the amendment of programmes 
(financial reprogramming) for sound manage ment reasons (complete absorption of 
funds at the end of programming period). More emphasis was placed on the results of 
Structural Funds assistance. 
10.2. Objective 2 
Budgetary execution According to the official monitoring data as at 31 December 2007 provided by the 
Italian Authorities, the average commitment rate on total eligible expenditure is 111.8% and the average payment rate on to tal eligible expenditure is 88.1%. 
EN 73   EN The SPDs performing the best in financia l terms are “Valle d’Aosta” (133.9%), 
“Veneto” (106.1%) and “Emilia Romagna” (105.5%), which are virtually closed. The SPDs performing the poorest in fina ncial terms are “Abruzzo” (75.1%) and 
“Umbria” (79.5%). 
With respect to the “n+2” rule at the end of 2007, no decommitment is proposed, 
confirming the positive financial absorption of 2005 and 2006. 
Overall results of programme implem entation throughout the programming period 
Although information on results and impact  is still scarce, outputs are becoming 
closer to definitive values and can provide evidence of the effort and effects of the use of the structural funds. In particular: 
– In the environmental services sector, progress has been made in separate 
waste collection: 372 000 people more have access to it. 
– Moreover, wastewater treatment capacity has increased by about 
260 000 inhabitants (equivalent) due to ne w or upgraded plants co-financed by the 
ERDF, in parallel with the upgrade of  sewage networks (620 km of new 
pipelines). In total, 131 projects regarding waste and sewage treatment plants 
have been implemented.  
– Energy: 1 043 operations concerning rene wable sources of energy have been 
carried out (of which 923 so lar, 51 hydroelectric 59 biomass, 6 geothermal and 
4 wind). 
– R&D projects involving 2 192 enterp rises were funded, along with 
299 cooperation projects between res earch centres and enterprises.  
– Competitiveness: 94 000 enterprises have received support for their investments. 
– Transport infrastructure was further devel oped, priority being gi ven to sustainable 
modes of transport, with 53 operations  on multimodal platforms (680 000 m2), 
54 operations in ports and 782 m of new docks. 
– The Information Society was extended: 79 municipalities were connected to 
broadband, and 14 000 enterprises took adva ntage of new IT services/tools. 
Programme amendments, subjects covered at the annual meeting and the meetings of 
the monitoring committees. 
Programme amendments 
7 proposals for programme amendments have  been submitted by Italy for Objective 
2 SPDs (“Toscana”, “Bolzano”, “Abruzzo”, “Emilia-Romagna”, “Veneto”, “Marche” and “Friuli-Venezia Giulia”). The main reason for amending programmes 
for Objective 2 was also sound management and financial implementation at the end 
of the programming period (amendment of allocations by priority axes). 
The allocation between programmes was left unchanged. 
EN 74   EN Annual meeting 
In 2007, a single Annual Meeting was held in L’Aquila for Objectives 1 and 2. It was 
regarded as being good practice and will be continued. The agenda included:  
– 2006 annual reports;  
– financial execution and applic ation of the “n+2” rule;  
– resources from projects fina nced by national sources;  
– setting-up of monitoring committees a nd transitional phase 2000-2006/2007-2013; 
– preparation of 2007-2013 programming period.  
Meetings of monitoring committees 
Monitoring committee meetings for all pr ogrammes took place once or twice during 
the year: while they all examined the usua l issues linked to implementation, the main 
issue was the programme amendment (financial reprogramming) for sound management reasons (complete absorption of funds at the end of programming period). More emphasis was also placed on th e results of Structural Funds assistance. 
10.3. Objective 3 
Budgetary execution According to the official monitoring data as at 31 December 2007 provided by the 
Italian Authorities, the average commitment rate on total eligible expenditure is 102.05% and the average payment rate on to tal eligible expe nditure is 86.64%. 
Some Operational Programmes are virtually closed. The ones performing the best in 
financial terms are “Friuli Venezia Giuli a” (payment rate of  107.3%) and “Trento” 
(100.2%).  
With respect to the “n+2” rule at the end of 2007, no decommitment is proposed, 
confirming the positive financial abso rption throughout the financial period. 
Overall results of programme implem entation throughout the programming period 
In the 2000-2006 programming period, the ESF ha s played an essential role in  
– modernising the Employment Public Serv ices, which in most Objective 3 areas 
can provide advanced and quality services;  
– implementing active labour market policies for long-term unemployment; and  
– improving training systems, also via the setting-up of a certification system for 
training bodies. 
Implementation of the 2000-2006 Operationa l Programmes has also fostered a new 
approach towards evaluation, which is now ge nerally seen as a management tool for 
EN 75   EN all public assistance, not onl y for co-funded projects. The ESF has also pursued and 
encouraged the development of the part nership principle at  different levels. 
No programme amendments were submitted in 2007. The Annual Meeting was held in Ro me in November. Given the smooth 
implementation of the 2000-2006 Operational Programmes, it mainly focused on the 
preparation of the 2007-2013 programming period.  
Monitoring committee meetings for all pr ogrammes took place once or twice during 
the year: in addition to standard issues, such as the annual implementation reports, 
they addressed the drafts of th e 2007-2013 Operational Programmes.  
10.4. Fisheries outside Objective 1 
According to the official monitoring data as at 31 December 2007 provided by the 
Italian authorities, the FIFG mono -fund Single Programming Document (SPD) 
commitment rate on total eligible expenditure has reached 99.5% and the payment rate on total eligible expenditure is 73.6%. 
With respect to the “n+2” ru le, a decommitment was envisaged at the end of 2007 of 
around EUR 4.2 million. This is not due to poor  financial absorption but to the late 
transmission of the end of year payment request, i.e. beyond the 
31 December deadline.  
The FIFG SPD has also been amended with a view to sound management and 
financial implementation at the end of the programming period (amendment of 
allocations by priority axes). A monitori ng committee meeting was held in July and 
dealt mainly with analysing implementa tion levels, amendments to programme 
complements in line with the final repr ogramming decision, “n+2” forecasts and the 
state of play of informa tion and publicity activities. 
10.5. Community Initiatives 
10.5.1.  Equal 
The EQUAL Programme did not have any problems with the “n+2” rule in 2007. 
Payments in 2007 increased to EUR 69 897 918.81. To date, payments have risen to 
EUR 337 688 722 (total ESF c ontribution: EUR 401 364 808).  
After a few problems, implementation of final activities has progressed.  
10.5.2.  Leader 
There are 22 LEADER+ programmes in Ital y, of which 21 regional programmes and 
one national programme, amounting to a Community contribution of 
EUR 289.1 million for the period 2000-2006. 
From the official monitoring data recei ved from the Italian authorities, on 
31 December 2007 the level of commitments stood at 90.6% of eligible expenditure 
and the actual payments made amounted  to 75.2% of forecast expenditure. 
EN 76   EN Lombardia, Veneto and Piemonte were the best performing programmes in terms of 
financial execution, with an e xpenditure rate of more than 87% of allocated financial 
resources.  
In 2007, there were no decommitment decisi ons taken under the “n+2” rule was on 
Italian Leader+ programmes. However, the mo st recent data available show that two 
Italian programmes (Abruzzo and Puglia) did not meet the “n+2” target for 2007 
itself. Decommitments of around EUR 1.9 million for Puglia and EUR 0.10 million 
for Abruzzo are therefore envisaged. 
In 2007, four programmes were amended by Commission decisions (Toscana, 
Piemonte, Veneto and Liguria). The amendments related to financial programming adjustments.  
The 2007 annual reports for all programmes were received. The main achievements 
in implementing the programmes were reviewed by the Commission with the 
managing authorities as part of the 2007 annual review. The Commission asked Italy 
and the managing authorities of the Molis e, Liguria, Valle d’ Aosta and Friuli 
Venezia Giulia programmes to improve the quality of the annual reports as regards 
the quantification of monitoring indicators  and description of control activities. 
All programmes showed significant progres s in the implementation of measures, 
particularly as regards Axis 1 (support for rural development strategies, integrated 
and pilot actions), which was almost comp leted. Some progress was made on Axis 2 
(inter-territorial and transnational c ooperation), but implementation still lagged 
behind due to a number of complex technical issues. 
Monitoring committees (MC) for the programmes were regularly convened. 
During the MC meetings the programmes  and related programming complements 
were reviewed and updated, thus ensuring correct implementation of the programmes. 
10.5.3.  Urban 
All the ten URBAN II Programmes for It aly were adopted by the Commission in 
November 2001 and amended in 2006. The tota l eligible cost of  all ten URBAN II 
programmes is EUR 268 010 837, with an EU  contribution of EUR 116 535 331 and 
EUR 17 006 545 from the private sector. 
The managing authority of each Italian URBA N II Programme is th e municipality of 
the city. The monitoring committees are therefore chaired by the Town Council and 
organised at local level, one for each programme, and include both institutional bodies and environmental and social-ec onomic partners. Inhabitants and local 
partners are thus often dir ectly involved in programme  design and implementation.  
Annual reports on implementation for the year 2006 were submitted in June 2007. Two Italian programmes (Taranto and Mist erbianco) did not meet the “n+2” rule 
for 2007.  
EN 77   EN Overall comments for the 2000-2006 period 
Most of the Italian URBAN programmes have been very successful in their 
achievements and management. However, some  of them ran into serious problems, 
which delayed implementation. There were no problems with meeting the 
programme outputs. Experience has demonstrat ed that a local authority-led project 
can be a successful model for locally-based regeneration. 
10.6. Closure of the 1994-1999 programming period 
All the 1994-1999 ERDF programmes have been  closed (8 of them only partly). 
Projects have been suspended for judici al proceedings in seven programmes, for 
which the current outstanding commitment (RAL) is zero. Four programmes have 
been subject to a financial correction decision under Article 24 of Regulation 
4253/88. The 1994-1999 RAL was reduced by 87% (i.e. EUR 41 million — from 47 to 6 million). 
All 59 ESF files were processed. Current ly, the RAL (outstanding commitments) 
amounts to approximately EUR 40 million and is entirely due to legal and/or administrative disputes at national level,  which also considerably delayed the 
winding-up process. It will be possible to reduce this RAL gradually as soon as the 
legal action is resolved. 
As regards EAGGF programmes, only eight still remained open at the end of the 
year. “Article 24” decisions have to be taken for all of these programmes. 
EN 78   EN 11. IRELAND  
2007-2013 programming period For the 2007-2013 programming period, Ireland is no longer eligible under the 
Convergence objective (formerly Obj ective 1). The Border, Midland and 
Western Region (BMW) are “natural effect ” regions as its GDP per capital already 
exceeds the EU-15 average. It has “phasing-in” status to the new 
Regional Competitiveness and Employment objective. The Southern & Eastern Region (S&E), having already completed th e transition from Objective 1 in the 
2000-2006 programming period, is eligible on ly for the main Competitiveness and 
Employment objective.  
The organisation surrounding the NSRF in Ireland is based on a bottom-up approach, 
with the regional authorities organising local/regional meetings with the local partnerships and drafting th e ERDF OPs. The Department  of Enterprise, Trade and 
Employment (DETE), responsible for the E SF, has widely consulted with social, 
equality and labour market institutions to draw up the first drafts of the ESF OPs. 
The two regions, together with the DETE as pa rt of the ex ante evaluation, have also 
commissioned extensive needs analyses and various foresight studi es to prepare the 
new period. The Commission took its deci sion on the Irish NSRF on 27 July 2007. 
The strategic focus of NSRF assistance is on the following themes and priorities for 
the European Regional Development Fund (ERDF): 
– innovation, knowledge and entrepreneurship; and 
– consolidating the competitiveness, attractiveness and connectivity of the 
National Spatial Strategy (Gateways and Hubs) through improved access to 
quality infrastructure and promoting envi ronmental and sustainable development, 
including a coherent and balanced a pproach to regional development.  
For the ESF, the NSRF indicates a single priority, which will be implemented 
through two corresponding prio rities in the ESF OP: 
– Human Capital Investment through upski lling the workforce and increasing the 
participation and activation of groups outside the workforce. 
These themes are being implemented th rough three Operational programmes: 
ERDF OPs for the S&E and BMW regions, and one ESF Human Capital Investment 
(HCI) OP, together amounting to EUR 750 million of Structural Funds. The BMW 
and S&E Operational Programmes we re approved by the Commission on 
16 October 2007, the ESF OP on 6 November 2007. On 18 December 2007, the HCI OP was formally launched by the Minister for Innovation Policy, 
Michael Ahern, T.D. The launch was followed by the Inaugural Programme 
monitoring committee meeting. In terms of financial execution, the first advance payment of EUR 7 507 247 was made on 22 November 2007. 
EN 79   EN 2000-2006 programming period  
11.1. Objective 1 
Implementation of the ERDF in the five Irish Objective 1 programmes — 
Economic & Social Infrastructure, Productive  Sector (PSOP), Technical Assistance 
(TAOP), Border, Midland & Western (B MW) Region and Southern & Eastern 
(S&E) Region — continued at a satisfactory pace in 2007. Similarly, implementation of the ESF-funded EHRD OP and the ESF-funded childcare measures in the two regional OPs were also on schedule. 
The impact of the Structural Funds contri bution in the first two CSFs (1989-1993 and 
1994-1999) is estimated to have  raised GNP by 3% to 4%. The Structural Funds for 
2000-2006 have played an important role in  Ireland, both in the S&E and in the 
BMW regions, fostering of research, development and innovation and boosting information society capacity. In the peri od 2000-2006, the ERDF will have spent an 
estimated EUR 260 million on research, technical development and innovation and the information society. During the 2000- 2006 period, Irish research and innovation 
capacity increased significantly, in particular  in the S&E region, setting the basis for 
technology-based economy developm ents in the years to come.  
Similarly strong impacts can be observed in the field of human resources, which has 
been a vital area of ESF assistance since 1989. While, in  the years preceding 2000, 
investment boosted education and skills le vels with a strong focus on young people 
while at the same time enhancing the employment prospects of the unemployed, funding in the 2000-2006 programming period has placed increased emphasis on responding to shortages through targeted s upply-side initiatives  in education and 
training. A good example of this developm ent is the emphasis on in-company 
training and support for a number  of lifelong learning schemes. 
ERDF payments were submitted with a peak towards the end of the year. 
All payments to PSOP, BMW and S&E were temporarily interrupted while awaiting 
receipt of additional information on the Annual Implementation Reports. Use of the 
funds has been, generally speaking, fluid. The BMW payment claim of 
21 December 2007 is under scrutiny by the Commission owing to possible “n+2” implications.  
ERDF payments amounted to EUR 72.6 million in 2007, and have reached the 
ceiling of 95% for three of the programme s, i.e. PSOP, TA and S&E. Payments 
represent 93.89% and 71% for ESIOP and BMW respectively. 
In general terms, the management does de liver on the projects and the concomitant 
spending, although certain significant cost ove rruns have been identified over this 
period and certain m easures — Waste Management, E-Commerce 
(Local Infrastructure Priority) and Touris m (all ERDF co-funded) — for the regional 
programmes have been progressing more slow ly than other measures. However, even 
these measures are now performing much more  satisfactorily than was previously the 
case. 
The situation regarding payments is sim ilar to the ESF position: payments amounted 
to 95% of the total Social Fund alloca tion to the EHRD OP and the BMW OP. 
EN 80   EN Payments for the S&E OP came close, reaching 84%. ESF payments for 2007 
amounted to EUR 114 million. 
EAGGF 
The revised EAGGF-Guidance section amounts to EUR 153.6 million. Cumulative 
EAGGF (Guidance) payments to the e nd of 2007 amount to EUR 133.8 million or 
87.11% of the amount scheduled for the programming period 2000-2006..  
EAGGF Guidance will not contribute to th e two-year extension of the PEACE II 
operational programme, jointly managed w ith Northern Irela nd. Therefore, the 
EUR 12.6 million EU contribution to the progr amme was not increased. Up to the 
end of 2007, total expenditure for the PEACE II programme was EUR 43.5 million, 
99.3% of the budget of EUR 44 million for the years 2000-2004. 
FIFG 
EC payments for PSOP amounted to 64% of the total FIFG allocation for the 
programme by 31 December 2007. For the aqu aculture measures of the S&E and 
BMW programmes, EC payments am ounted 86% and 72% respectively. 
Monitoring committee meetings 
Monitoring committee meetings were held for all programmes, with participation 
from the Commission. Several horizon tal working groups (environment, 
equal opportunities, etc.) have been put in place at CSF/NDP level, with the 
objective of measuring the inclusion of themes in programmes. Participants from all the OPs are involved. A final report on the implementation of gender equality was 
delivered to the CSF monitoring committ ee in December 2007. Closure preparation 
was a regular item on the agenda of the PMCs.  
Annual reports and annual meeting 
All but two (PSOP and TA) of the Iris h Annual Implementation Reports were 
received by the Commission within the regulatory deadlines. The Annual Review 
Meeting for 2005 and 2006, covering all pr ogrammes under the Objective 1 CSF, 
took place on 25 September 2007. This  meeting focused on the ongoing 
implementation of the programmes, with par ticular reference to the various audits 
that have been undertaken by the Commissi on and the internal audit services in 
Ireland in order to address certain w eaknesses found. The Commission asked the 
Irish managing authorities and the Depart ment of Finance to strengthen their 
management and control systems (Article 4 and Article 10 checks) and to provide 
more detailed information on the findings  from these checks. The Commission also 
asked Ireland to communicate preliminar y indicative results of the look-back 
exercise as far as possible.  
Amendments 
During 2007, the BMW, S&E and PSOP were each subject to one 
programme complement amendment procedure. 
EN 81   EN 11.2. Community Initiatives  
11.2.1.  Equal 
The Irish EQUAL programme proceeded without any major difficulties in 2007. 
There are 43 Development Partnerships  funded under the Equal Community 
Initiative in Ireland, of  which 21 DPs are Round 1 and 22 DPs are Round 2. 
At the end of 2007, the rate of financial ex ecution of the ESF was 83.2% of the total. 
Payments amounted to EUR 6 287 439. Automatic decommitment under the “n+2” rule was avoided for 2007.  
The EQUAL Closing Conference took pl ace in Dublin On 9 October 2007. 
In July 2007, the Commission adopted a deci sion amending the financial plan and 
transferring funds from priori ties 2 and 3 to priority 4. 
11.2.2.  Leader 
The EU contribution for 2000-2006 amounts to EUR 48.745 million. At the end of 
2007, expenditure amounted to EUR 31.5 m illion, 64.7% of the initial programme 
budget. The mid-term evaluation of Lead er+ was received by the Commission in 
November 2005 and reported that there ha d been significant progress since phase 1 
of the programming period. The “n+2” target was not reached in 2007 and EUR 2.8 million was decommitted. 
11.2.3.  Urban 
The Dublin-Ballyfermot URBAN II progr amme is the only URBAN II Programme 
in Ireland. It was approved in December  2001, and amended in 2004 as a result of 
indexation. The ERDF will contribute a to tal of EUR 5.38 million to this programme, 
whose total cost amounts to EUR 11.58 milli on. In 2006, there was an amendment to 
the Programme Complement with no changes to the financial tables. The monitoring 
committee did not meet during 2007 as the programme is winding down towards closure. The annual review was conducted in writing with the responsible authorities 
encouraged to make whatever efforts were necessary to ensure appropriate financial 
control in anticipation of closure.  N+2 for 2007 was reached with ease. 
Overall comments concerning the 2000-2006 period in Ireland 
The Ballyfermot URBAN II programme ha s been very successful, both in its 
achievements and management. There were no problems with meeting the programme outputs and yearly “n+2” targets. The success and legacy of the URBAN II programme provided a sound basis fo r the planning of the next structural 
Funding period in Ireland, and integrated ur ban development will figure strongly in 
future Operational Programmes.  
11.3. Closure of the 1994-1999 programming period 
The RAL is zero for ERDF 94-99.  
At the end of 2007, the ESF 94 – 99 was closed and the RAL was zero.  
EN 82   EN With regard to EAGGF, the remaining 2 programmes were closed in 2007 
(one programme already havi ng been closed in 2006). 
For the FIFG, the C.I. PESCA programme has not been closed.  
EN 83   EN 12. LATVIA  
2007-2013 programming period The National Strategic Reference Framewor k and the Operational programmes were 
approved in the third quarte r of 2007. There are three operational programmes, two 
of which are ERDF/CF co-financed.  
For the Entrepreneurship and Innovations OP (2007LV161PO001), EUR 80 million 
was committed in September 2007 and the advance payment was made in October 2007 (i.e. EUR 15 million under the ERDF). For the Infrastructure and Services OP 
(2007LV161DO002), EUR 169 million was co mmitted in December under the CF 
and EUR 186 million under the ERDF. Advan ce payments for that programme were 
EUR 38 million under the CF and EUR 34 million under the ERDF in December. 
For the Human Resources and Employment OP (2007LV051PO001), 
EUR 60 million was committed in November  2007 under the ESF. Advance payment 
for the programme of EUR 11 m illion was made in December 2007. 
For the “Innovation and Entrepreneurship” OP , a first set of selection criteria was 
officially adopted in November 2007, wh ile for the other operational programmes 
draft selection criteria were  drawn up for later formal a doption. Selection criteria are 
defined against priorities, measures and activities and they are approved by the 
monitoring committee. In general, these criteria largely take due account of 
EU policies and the horizontal pr iorities of the programmes.  
Implementation of projects on the ground ha s not yet started, with the exception of 
the tendering for infrastructure projects,  on which a funding de cision has not yet 
been taken.  
2000-2006 programming period 
12.1. Objective 1 
Latvia, an Objective 1 NUTS II country, has financed eligible operations from the 
Structural Funds since 1 January 2004. With an ERDF participation of 
EUR 382 million, out of a total of EUR 626 million for the Objective 1 
Structural Funds, the SPD contributes to th e Latvian strategic objective of building a 
knowledge-based economy. The SPD (2003LV 161DO001) strategy is based on four 
priorities (excluding Technical Assistance ): (i) Promotion of Territorial Cohesion, 
(ii) Promotion of Enterprise and I nnovation Development of Human Resources, 
(iii) Promotion of Employment and (iv) Promotion of Development of Rural Areas 
and Fisheries. The SPD (Str uctural Funds) is co ordinated by the managing authority 
within the Ministry of Finance. The Paying Authority and the Audit Body are 
separate Departments with in the same ministry.  
The SPD for Latvia 2003LV161DO001 was la st amended in March 2007, following 
a request Latvia submitted in December 2006. The amendment concerned the shifting of funds within priori ties in order to ensure s ound financial management and 
redefine some of the activities. The program me complement was then adapted in line 
with the above programme amendment. 
EN 84   EN Payment claims resulted in payments  of EUR 153 million under the ERDF and 
EUR 65 million under the ESF. 66% of the ERDF budget and 57% of the ESF 
budget have been paid out against inte rim payment claims submitted by Latvia. 
In general, commitments at national leve l are close to 100%. The agreed objectives 
(among others, 40 improved water service systems; 250 km of renovated roads; 12 research centres assisted) for the pr ogramme have already been reached in 
most cases.  
Implementation of FIFG measures progres sed well in 2007 and the programme met 
its “n+2” target. Payments in 2007 amounted  to EUR 8 million. By  the end of 2006, 
75% of the total FIFG allocation had been paid out against interim payment claims 
submitted by Latvia, while commitments at national level are close to 100%. 
The agreed targets for the FIFG measures ha ve already been reached in most cases.  
The annual meeting for 2007 was postponed to February 2008 in  order to give 
priority to the adoption of the operational programme s for the 2007-2013 
programming period. The main issue at the annual meeting was the impact of macroeconomic developments on programme implementation. Latvia has the highest inflation rate (16%) within the EU and, as a result, projects face significant cost 
increases (in the construction sector), which might endanger their finalisation.  
Despite meeting its “n+2” targets, Latvia is  considered to be a slow absorber of 
ERDF funds, and the risk of decommitme nt at stage is considered to be high. 
The Commission has asked to be informed  of any steps taken by the managing 
authority to accelerate absorption (i.e. acti on plan, close monitoring, redistribution of 
funding, over-commitments) and encouraged Latv ia to take steps in this respect. 
The ministries with the worst absorption ra tes are the Ministry of Economy and the 
Ministry of Education and Science. The managing authority is closely monitoring 
both of these Ministries. The task of abso rbing EUR 175 million in  order to achieve 
full absorption is a stiff one, in particular given that La tvia intends to close the 
eligibility period early (i .e. by the end of August 2008)  in order to avoid any 
overlapping of tasks in the bodies re sponsible for the 2000-2006 and the 2007-2013 
programming periods.  
12.2. Community Initiatives  
12.2.1.  Equal 
The Latvian EQUAL programme proceeded without any major difficulties in 2007. 
At the end of 2007, the rate of financial execution of th e ESF amounted to 95% of 
the total. Payments amounted to EU R 4.5 million. Automatic decommitment under 
the “n+2” rule was thus avoided for 2007.  
A decision amending the initial decision  for the Latvian EQUAL programme was 
adopted in March 2007 and related to th e transfer of funds from Priority 1 
‘Employability’ to Priority 3 ‘Adaptabi lity’. Two monitoring committee meetings 
were held — on 26 June 2007 and 13 November 2007 respectively. The first approved the Annual Implementation Report for 2006 and the second examined the 
evaluation report. No annual review  meetings were held in 2007. 
EN 85   EN 12.2.2.  Leader 
Leader+ type measures were include d in the Objective 1 programme under 
Priority 4: “Promotion of Development of Rural Areas and Fisheries”. The EU 
contribution for 2004-2006 amounts to EUR 2.283 million. The start of Leader+ type 
measures was delayed due to ad ministrative and legal problems. 
In December 2006, seventeen Local Action Groups were selected; project selection 
was completed in October 2007 with cont racts covering 100% of the finances 
available. 
EN 86   EN 13. LITHUANIA  
2007-2013 programming period Negotiations between the Commission an d the Lithuanian authorities on the 
Lithuanian National Strategi c Reference Framework (NSRF)  and the four operational 
programmes, two co-financed jointly by the ERDF and the Cohesion Fund 
(“Economic Growth” and “Promotion of C ohesion”) and two co-financed by the ESF 
(“Human Resources Development” and “T echnical Assistance”), were successfully 
concluded in 2007. The Comm ission Decision approving certain parts of the 
Lithuanian NSRF was adopted on 26 April 2007, the Commission decisions 
approving the operational progr ammes co-financed by the ERDF were adopted on 
30 July 2007, and the Commission decisi ons approving the “Human Resources 
Development” and the “Technical Assistan ce” operational programmes co-financed 
by the ESF were adopted on 24 Septembe r 2007 and 18 December 2007 respectively. 
The operational programmes for “Econom ic Growth” and “Human Resources 
Development” have particularly strong li nks with the priori ties of the renewed 
Lisbon strategy. The operational programme for “Promotion of Cohesion” provides 
strategic responses to the developmen tal disparities within Lithuania. 
2000-2006 programming period 
13.1. Objective 1 
General The Lithuanian Objective 1 Programme  (Single Programming Document of 
Lithuania for 2004-2006) cove rs the whole of Lithuani a as an eligible area. 
The programme was adopted by Commissi on Decision C(2004)2120 of 18 June 2004 
and is co-financed by the ERDF (EUR 583.9 million), the ESF (EUR 176.2 million), 
the EAGGF (EUR 122.9 million), and the FI FG (EUR 12.1 million). The national 
counterpart consists of EUR 309.5 million of  public funding and EUR 2.3 million of 
private financing. Thus, the Structural Funds provide EUR 895 million out of a total 
budget of EUR 1207 million. The managing au thority of the programme is the 
Ministry of Finance of th e Republic of Lithuania. 
The programme consists of five prio rities: Socio-economic Infrastructure 
(EUR 347.1 million, ERDF), Human Resources Development (EUR 163.8 million, ESF), Productive Sector and Services  (EUR 222.4 million, ERDF), Rural and 
Fisheries Development (EUR 122.9 million, EAGGF and EUR 12.1 million, FIFG), and Technical Assistance (EUR 14.5 million, ERDF and EUR 12.4 million, ESF). 
Monitoring and annual review 
Two programme monitoring committee meeti ngs were held in 2007. Attainment of 
the quantified targets and financial implementation of the programme, as well as adjustments to the programme compleme nt, were among the key items discussed. 
The 2006 annual implementation report was duly submitted by Lithuania and 
accepted by the Commission. The report contains  useful information on the status of 
EN 87   EN SPD implementation in 2006. A number of examples of good practice projects are 
given, thus making the report more inform ative and reader-friendly to the general 
public. The report also contai ns structured information on financial implementation 
and monitoring indicators, although in some cases the availability of reliable and consistent monitoring information is not evident. 
An annual review meeting was held on 18 October 2007. The main discussion items 
were the contents of the annual impleme ntation report and the preparations for 
closure of the programme. 
Information and publicity 
Information and publicity activities were implemented in 2007 using a variety of 
printed and electronic media. The Lithua nian authorities organised a national 
information and publicity event in Viln ius on 24 May 2007, showcasing a selection 
of best project examples, including an ope n internet vote to select the most popular 
projects co-financed by the Structural Funds. A public internet portal 
www.esparama.lt
 operated by the Lithuanian Ministry of Finance has proved to be a 
helpful tool in providing timely data on the planning and implementation of EU 
structural assistance in Lithuania.  
Payments and programme results  
By the end of 2007, 67% of the total ERDF  allocation and 51% of the total ESF 
allocation, including an advance payment, had been paid out to Lithuania by the 
Commission, and more than a thousand opera tions had been granted assistance from 
the ERDF. As to the attainment of the quantitative objectives  of the programme, 
some divergences can be observed between  the forecast and actual achievements. 
While the quality of assisted operati ons is being monitored by the national 
authorities, in 2007 greater attention ha s also been given to increasing the 
consistency and reliability of the sy stem of indicators of the programme. 
With regard to FIFG measures, by the e nd of the year, the Commission had paid 79% 
of the total of EUR 12.2 million allocations  (including advance), while over 90% was 
committed by the national authorities. There was no “n+2” risk in 2007. However, 2008 will be crucial year in te rms of absorbing the remaining funds.  
At the end of 2007, the absorption rate of the total EAGGF-Guidance allocation 
(including the advance) reached 84.5%. By th at date, 82% of operations financed by 
the EAGGF-Guidance Section had been completed. 
13.2. Community Initiatives  
13.2.1.  Equal 
At the end of 2007, the rate of execution of  the ESF part of the Lithuanian EQUAL 
programme was approximately 57% of the total, including a 16% advance. 
Automatic decommitment under the “n+2” rule was avoided for 2007. The managing authority held two monitoring committee meetings. 
The Commission Decision was amended on 15 May 2007. 
EN 88   EN 13.2.2.  Leader 
Leader+ type measures are mainstream ed in the Objective 1 programme under 
Priority 4: Rural and Fisheries Development. In total, ten Local Action Groups were selected for implementation of the pilot integrated strategies. 
EN 89   EN 14. LUXEMBOURG  
2007-2013 programming period For the 2007-2013 programming period, Luxem bourg is to receive Cohesion Policy 
funds from the European Union to help  it implement two programmes under the 
Regional Competitiveness and Employment objective (one ERDF programme and 
one ESF programme, each worth EUR 25.2 m illion), plus one or possibly several 
programmes under the European Territorial  Cooperation objective for an amount of 
EUR 14.8 million. The total support provided therefore amounts to EUR 65 million.  
The signing ceremony of the National Stra tegic Reference Framework (NSRF) took 
place in Luxembourg in the presence of Danuta Hübner, the Commissioner 
responsible for regional policy, and Jeannot Krecké, the Minister for 
Economic Affairs and Foreign Trade.  The event officially marks the 
European Commission’s agreement on th e investment stra tegy chosen by 
Luxembourg to implement Cohesion Policy for 2007-2013. The Commissioner also held discussions with Prime Mi nister Jean-Claude Juncker.  
The NSRF for Luxembourg was officia lly adopted by the Commission on 
8 October 2007. In their national strate gic reference framework, the Luxembourg 
authorities describe how they plan to invest the EUR 65.27 million of European 
funding over seven years, in accordance with  the Lisbon strategy for growth and 
employment. The following priorities are defined: 
– help make Luxembourg more attractive fo r investment and jobs: this means in 
particular promoting the establishment of small and medium-sized enterprises (SMEs) and redeveloping urban centres that have undergone economic change;  
– improve knowledge and innovation, which ar e growth factors: to invest in 
equipping private and public research centres and enc ourage the innovation efforts 
of enterprises; to create more and bett er jobs; to give jo b seekers individual 
attention and to increase the low employm ent rates of women and older workers. 
The entire country is to be nefit under the Regional Competitiveness and Employment 
objective, in contrast to the 2000-2006 period when only cer tain specific areas were 
entitled to benefit from ERDF funds.  
Strategic objectives — This strategic document forms the framework for European 
investment of EUR 65.2 million in Luxembourg during the 2007-2013 programming 
period. The authorities have set three priori ties for investment, namely, to help  
– make Luxembourg a more a ttractive place for investin g and working, notably by 
promoting the establishment of small a nd medium-sized enterprises (SME) and 
redeveloping urban areas that ha ve undergone economic change;  
– improve knowledge and innovation, two key growth factors, by focusing 
investment on equipping private and public  research centres and by encouraging 
the innovation efforts of enterprises;  
EN 90   EN – create more and better jobs, by providing pe rsonal assistance to job seekers and by 
increasing the low employment rate s among women and older workers. 
The expected impact of the new Cohesion Policy — Due to its limited financial 
resources, the NSRF must ensure that  the Community support focuses on a set 
number of themes and priorities and on ope rations that pave the way in terms of 
regional development and employment. The aim is to avoid all forms of ‘diluting’ or 
‘spreading thinly’ and to obtain maximum Community value added.  
One of Luxembourg’s features is its low level of public investment in research and 
development (R&D). Private R&D differs in that it is concentrat ed in a handful of 
large enterprises. However, the setting- up of the University of Luxembourg and a 
National Research Fund should help to im prove the situation. Investments in R&D 
should achieve the 3% of GDP target by 2010. 
The NSRF will help Luxembourg to meet th e objectives that it set itself under the 
Kyoto Protocol, namely reducing gr eenhouse gas emissions by 28% by 2012 in 
comparison to 1990 levels. 
Investment for growth and jobs — 75% of the total Funds w ill target the priorities 
set out in the Lisbon Strate gy for growth and jobs (not ably research and innovation, 
energy efficiency, freeing up SMEs, entrepre neurship and education, investment in 
human capital and modernisation of labour markets). As regards the ERDF, 82% of 
expenditure will be in line  with the Lisbon Strategy. For the ESF, the entire amount 
will be allocated to the Integrated Guide lines (IG) for growth and employment, as 
established at Community level. 
Operational programmes — The objectives of the NSRF will be implemented 
through two operational programmes: one ERDF Luxembourg programme and one ESF Luxembourg programme. 
Additional financial support of EUR 14.8 million is to be set aside for the 
European Territorial Cooperation objective. 
2000-2006 programming period 
14.1. Objective 2 
2007 concentrated on best consumption of the allocation of a ppropriations in an 
effort to avoid any decommitment under the “n+2” rule. 
Overall, 100% of the programme budget wa s allocated through grant agreements. 
The programme monitoring committee met tw ice in 2007, at the initiative of the 
Ministry of Economy and Transport, th e managing authority of the programme. 
The Commission played an active part  in the work of the committee. 
The annual report was adopted at the May meeting of the monitoring committee.  
The level of the expenditure submitted for payment from the ERDF amounted to 
EUR 31.43 million, i.e. 71.4% of the ER DF allocation at the end of 2007. 
EN 91   EN 14.2. Objective 3 
The Objective 3 programme involves a to tal ESF contribution of EUR 35.57 million. 
At the end of 2007, the rate of execution amounted to 66% of the total. 
Four requests for payment were submitted to the Commission in 2007 for a total 
amount of EUR 2.31 million, but two requests were not executed following the audit 
mission in June-July 2007, which detected serious deficiencies  with regard to 
Articles 3, 4, 7 and 9 of Regulation 438/2001. 
The Luxembourg Authorities launched a call in 2007 for th e extension of existing 
contracts in order to reduc e the risks of decommitme nt as far as possible. 
Nevertheless, absorption capacity rema ins a problem and, under the “n+2” rule, 
EUR 3.89 million will have to be decommitted. 
The annual meeting took place on 13 Fe bruary 2007 and the monitoring committee 
met on 26 June 2007. The annual report for 2006 was adopted by the monitoring committee in June 2007 and approved by the Commission in September 2007, 
subject to a number of rese rvations regarding the lack of evaluation concerning older 
workers and the lack of  results indicators. 
14.3. Community Initiatives  
14.3.1.  Equal 
Despite minor “n+2” problems, the Lu xembourg programme runs smoothly. 
However, the audit mission held in June-J uly 2007 brought serious  deficiencies to 
light, which are still being discussed with  the national authorities. EUR 0.3 million 
will have to be decommi tted under the “n+2” rule. 
No annual meetings were held in 2007 and the Equal repr esentative of the 
Commission was not present at the monito ring committee meeting that took place on 
26 June 2007. 
14.3.2.  Leader 
The programme involves total public expenditure of EUR 8.42 million, of which 
EUR 2.14 million from the EAGGF Guidan ce Section. In Luxembourg, 4 LAGs 
were selected, covering 90 000 inhabitants, and a fifth is financed by national funds. 
At the end of 2007, after seven years of im plementation, the total financial execution 
is 66.66% of the total EAGGF-Guidance expenditure scheduled for the period 
2000-2006, i.e. EUR 1.40 million out of  a total of EUR 2.1 million. 
The National Leader network unit be came fully operational in 2004. 
Implementation of the programme is curre ntly satisfactory for all stakeholders. 
EN 92   EN 15. HUNGARY  
2007-2013 programming period The Commission formally adopted the Hungarian National Strategic 
Reference Framework on 7 May 2007 and all fifteen Operational Programmes 
(seven regional and eight sectoral pr ogrammes; thirteen financed from the 
ERDF/Cohesion Fund, two from the ESF)  by mid-September 2007. Two sectoral 
operational programmes, notably Social In frastructure and Economic Development 
OPs cover the six Convergence regions,
11 while the Social Renewal, State Reform, 
Transport, Environment and Energy, Implementation and E-administration Operational Prog rammes cover the whole country. 
The Structural Funds contribution to  the NSRF is EUR 16.279 billion at 
current prices, while the Cohesion Fund c ontribution is EUR 8.642 billion at current 
prices. Within the same period, an amount of EUR 3.840 billion will be available for Hungary from the EAFRD and EFF. Assist ance from the Structural Instruments 
breaks down as follows: ERDF 50.8%, ESF 14.6%; CF 34.7%. 
The first official meetings of the programme monitoring committees were held for all 
operational programmes in autumn 2007. The ma in issues discussed at the meetings 
included the rules of procedures a nd the project sele ction criteria.  
The first calls for proposals  were launched in Februa ry 2007. By the end of 2007, 
195 calls for proposals had been publishe d, 10-13 for each operational programme. 
Around 800 centrally appointed ‘key proj ects’ have also been selected. 
2000-2006 programming period 
15.1. Objective 1 
The Hungarian Community Support Fram ework for 2004-2006 consists of five 
operational programmes covering the whole country, since all the seven Hungarian 
NUTS II level regions correspond to Objective 1 in the 2004-2006 period. 
The Structural Funds contribution to the C SF is EUR 1.995 billion at current prices. 
Assistance from the Structural Funds  breaks down as follows: ERDF 62.1%, 
ESF 22%; EAGGF Guidance Section 15.68%; FIFG 0.22%.  
In terms of ERDF expenditure, th e 2004-2006 Hungarian Community Support 
Framework achieved good results. The pa yment rate was 86.28% of total public 
funding (including 16% of advance paymen ts). In terms of ESF expenditure, 
the payment rate was 63% of total pub lic funding (including 16% of advance 
payments). The “n+2” targets for 2007 were met by all operational programmes and Funds. 
monitoring committee meetings were held for each OP and for the CSF. 
The Annual Review Meeting on the Structural Funds took place on 21 November 2007. 
                                                
 
11 For the 2007-2013 programming period, Hungary has six NUTS II level regions under the Convergence 
objective and one region under the Regional Competitiveness and Employment objective. 
EN 93   EN Economic Competitiveness OP 
The ECOP payment rate was 91.15% of th e total public cost by the end of 2007. 
The most successful priority in terms of payments to final beneficiaries was the 
Investment Promotion priority. The least su ccessful in terms of  absorption were the 
R&D, innovation and information society priori ties, due to the complexity of projects 
and the type of beneficiarie s (local governments, univers ities). The IBs took further 
steps to accelerate payments, including lette rs to beneficiaries,  direct calls, and 
roadshows in regional centres. 
Human Resources Development Oper ational Programmes (HRD OP)  
The ESF co-finances most of the prior ities of the HRD OP  (“Supporting active 
labour market policies”; “Fighting social exclusion by promoting access to the labour 
market” and “Promoting lifelong learning polic ies”). The “n+2” target was reached 
for 2007 and the payment rate was 61% of th e total ESF allocation by the end of the 
year. Although progress seemed to be satisfa ctory in general, a few measures were 
lagging behind in terms of implementation. Steps had been taken to accelerate payments towards the final beneficiaries and to raise the absorption rate of the OP. Due to administrative changes in the ma nagement system of the programme, the 
implementing chapter of the OP was am ended twice in the course of 2007. 
Two out of the three IBs had undergone signi ficant changes, whic h also contributed 
to the lower absorption rate of some measures.  
The ERDF co-finances priority 4 of th e HRD OP, aimed at the “Development of 
Education, Social and Health Infrastructure ”, which has performed rather well, most 
projects being expected to be closed in  the first half of 2008. The ERDF payment 
rate by the end of 2007 wa s 66.77% of the total ERDF allocation to the OP. 
The measures “Developing the infrastruc ture of education and training” and 
“Developing the infrastructure of services  supporting social in clusion” progressed 
normally, but there is a slight  risk of loss in the measur es “Development of health 
care infrastructure in regions lagging behind”  and “IT Development in health care in 
regions lagging behind” due to the ongoing reorganisation of health institutions. 
The MA and the IBs are working to minimise potential losses. 
Environmental Protection and Infrastructu re Operational Programme (EIOP)  
The Operational Programme for the Envir onment and infrastructure progressed well 
in 2007. The overall level of payments reached 86.98%. Satisfactory progress was 
noted in both the environmental protection and the transport infrastructure axes. The uptake of technical assistance fu nds still needs to be improved.  
Operational Programme for Regional Development (OPRD)  
The average payment rate for the OPRD reached 90.00% of the total public cost. 
As regards programme allocation, ther e was overbooking of 10- 12%, in order to 
cover the loss of resources and to handle exchange risk s. The “n+2” target for 2007 
was achieved in the case of the ERDF. 
EN 94   EN Implementation of the ESF-financed priority  (“Strengthening the regional dimension 
of human resource development”) accelerated after a slow start. The “n+2” target 
was reached in 2007 and the payment rate by the end of the year was 73% of the total 
ESF allocation. Further efforts are needed to  reach the target for 2008 (especially in 
the case of the central projects).  
The Operational Programme for Agri culture and Rural Development (ARDOP) 
The ARDOP’s contracting and payment rate  showed remarkable progress in 2007. 
As at 31 December 2007, total payments ma de under measures co-financed by the 
EAGGF-Guidance Section (including the advance) amounted to EUR 285 million or 
91% of the total Fund allocation for the period 2004-2006.  
Fisheries 
In 2007, four payments were made to cover the reimbursement claims. Overall, 
the FIFG payment rate is 69% (out of EUR 4 389 million). Most of the funds are 
spent on aquaculture. 
15.2. Community Initiatives  
15.2.1.  Equal 
The Hungarian EQUAL Community Init iative Programme supports innovative 
projects in the field of employability, lifelong learning, equality between women and 
men, and support for asylum seeker s. The ESF contribution amounts to 
EUR 30 292 135. Through a PC amendment in  2007, funds were re -allocated from 
the preparatory phase to the mainstreaming phase, which underlines the shift of priorities towards the latter. The flow of declared expenditure was constant in the 
course of 2007, there was no “n+2” decommitment, and the payment rate was 61%. 
15.2.2.  Leader 
Hungary has included a Leader+ type m easure in the ARDOP under priority 3, 
development of rural areas. Implementation is underway. 
EN 95   EN 16. MALTA  
2000-2006 programming period 
16.1. Objective 1 
Budgetary execution Malta’s Objective 1 SPD for 2004-2006 progresse d at a good pace in its fourth year 
of implementation: 
– 100% was already committed in 2006. 
– Cumulated payments executed increased from 39.7% (31.12.2006) to 75.42% 
(31.12.2007). 
– The “n+2” threshold was exceeded on ever y fund, even without considering the 
advance payment. 
As regards implementation of the EAGGF, , total payments made as at 
31 December 2007 under measures co-finan ced by the EAGGF-Guidance Section 
amounted to EUR 2 621 131 (interim payments of EUR 1 949 131 and advance payments of EUR 672 000). Interim pa yments executed in 2007 amounted to 
EUR 1 085 855. 
Overall results of programme implem entation throughout the programming period 
The key issue of internal c ohesion is the catching-up pr ocess of Gozo, the sister 
island of Malta, with its double insularity problem s. Successful sectors of 
intervention on the island of Gozo, leading to results in 2007, were: 
– accessibility (roads) 
– support for tourism and manufacturing (linked) 
– human resources development (training centres, lifelong learni ng and retraining) 
– environment enhancement and environmenta l protection (natural  heritage, landfill 
effluent treatment, separate hous ehold collection and treatment) 
A wide publicity campaign and survey on EU and EU funds was run in 2007, in 
parallel with Eurobarometer. The main outcomes were that: 
– the Structural Funds appear to be much more popular than the EU itself 
(72% against 46%); 
– awareness of Structural Funds  projects, already high (69% ), had slightly increased 
to 72%; 
– most of the popularity is linked to assistance on road s (80%) and on water (>30%, 
very high for a network service); 
EN 96   EN – most people shared the opinion of additiona lity of funds (“such project would not 
have been implemented wit hout the EU c ontribution”) 
Programme amendments, subjects covered  at the annual meeting and monitoring 
committee meetings 
The monitoring committee met 3 times in 2007, with the aim of ensuring effective 
follow-up and control of assistance: 
– in February – for monitoring purposes only, without the a ttendance of the 
Commission,  
– in May and October — as “decisional”  MC involving the Commission desks. 
– Main subjects covered: 
– implementation update 
– adoption of annual implemen tation reports (in May) 
– amendment to the programme complement 
– thematic evaluation of projects financed in Gozo 
– publicity campaign and survey on EU and EU funds 
There was no annual meeting as usual, in agreement with the Commission, due to the 
regular monitoring in place. 
An amendment to the SPD was required in 2007 in order to increase the allocation of 
the national counterpart to the FIFG. Th e decision was adopted by the Commission 
in August. Subsequently, an amendment to  the programme complement was adopted. 
Another minor amendment to the programme complement, concerning project 
selection and a slight revi sion of targets, was started in 2007 and completed in 2008. 
16.2. Community Initiatives  
16.2.1.  Equal 
All EQUAL projects had finalised thei r training activities by the end of 
December 2007. The monitoring committee (MC) on the EQUAL 
Community Initiative Programme met twice during 2007, in May and October. 
The EQUAL Programme did not have any problems with the “n +2” rule in 2007. 
By the end of 2007, total payments made under the Equal Programme amounted to EUR 1.1 million (out of total E SF payments of EUR 8.7 million). 
EN 97   EN 17. NETHERLANDS  
2000-2006 programming period 
17.1. Objective 1 
The Flevoland province receives phasi ng-out support under Ob jective 1 amounting 
to EUR 131.9 million (of which EUR 81.7 million ERDF and EUR 33.6 million ESF). Programme implementation proceeded  relatively smoothly. By the end of 
2007, some EUR 77.6 million or 95% of the ERDF allocation had been effectively spent and certified. For the ESF, certified  expenditure amounted to EUR 28.8 million 
or 86% of the ESF allocation. By end of 2007, the managing authority had submitted a minor adjustment to the financing pl an of the programming complement.  
Global execution of the EAGGF-Guidance Se ction at the end of 2007 amounted to 
EUR 8.0 million or 77% of  the EAGGF allocation. 
17.2. Objective 2 
Financial absorption of the four Objective 2 programmes continue d in a satisfactory 
manner, as before. By the end of 2007, all programmes had received between 82% and 86% of the respective ERDF allocation. There is a risk of decommitment under 
the “n+2” rule for 2006 for two progra mmes, amounting to a total of some 
EUR 8.5 million. 
During 2007, coordination within the Neth erlands further improved and better 
control and monitoring procedures were  implemented in the context of the 
action plan that was agreed u pon following the 2005 and 2006 audits. 
The Annual Review Meeting (covering th e 2000-2006 Objectives 1 and 2 and also 
the new 2007-2013 operational programmes) was held on 9 November in Eindhoven. 
The major issues concerned the effects of the National Action Plan and the start of 
the new programming period 2007-2013. 
Commissioner Hübner concluded a series of regional visits  to the Netherlands in 
Limburg (in March) and Noord-Brabant (in June). She also met the Dutch Queen and 
the German President at the Dutch-Ge rman border in Twente (in October). 
17.3. Objective 3 
The total available ESF allocation for the SPD amounts to EUR 1.5 billion, which 
had been committed by the end of October 2005. All projects terminated by the end 
of 2007. Payment applications received up to 31 December 2007 cover 78% of the 
available allocation and exceed the available budget of the 2005 tranche. 
No decommitment is therefore envisa ged. By the end of 2007, the managing 
authority had submitted an adjustment to the financing plan of the programming complement. The monitoring committee me t twice and the Annual Implementation 
Report was received on time. 
EN 98   EN 17.4. Fisheries outside Objective 1 
The total FIFG allocation (including pe rformance reserve) to the fisheries 
programme is EUR 33.5 million. The most im portant measures, in line with the 
Common Fisheries Policy, are scrapping of  vessels, processing and marketing, 
collective investments and innovative measures. Although overall implementation of 
the programme has been rather good, the progr amme is now subject to the “n+2” rule 
for the first time (EUR 0.745 million of  2005 commitment appropriations). 
By the end of 2007, the 2006 annual impl ementation report had not yet been 
submitted to the Commission. 
17.5. Community Initiatives  
17.5.1.  Urban 
Three URBAN II programmes are implemented in the Netherlands in respect of the 
2000-2006 programming period in the cities of  Amsterdam, Rotterdam and Heerlen. 
The ERDF contribution to the programmes  in Amsterdam and Rotterdam is around 
EUR 9 million each and in Heerlen around EUR 12 million, the total eligible cost of 
the programmes amounting to some EUR 84 million. The city itself is both managing authority and paying authority.  
The 2006 annual reports have been receiv ed and accepted, gi ving accounts of 
satisfactory implementation of all three programmes. This development was confirmed by the fact that all three progr ammes managed to reach the “n+2” target 
for 2005 at the end of 2007. 
In the case of all three UR BAN II programmes, the city itself is both the managing 
and the paying authority. The Ministry of th e Interior provides informal coordination 
of information. 
Overall comments concerning the 2000-2006 period in the Netherlands 
The programmes are running very well and th eir impact can be seen in terms of 
improved safety, economic development and jobs for young people with 
low qualifications. In general, the projec ts of these programmes were assessed as 
being innovative. The management and im plementation structure made for swift 
completion of projects.  
17.5.2.  Equal 
Although the EQUAL programme in the Neth erlands proceeded without any major 
difficulties in 2007, payment applications received up to 31 December 2007 were not sufficient to reach the “n+2” target for 2005. A decommitment of EUR 17.9 million 
is therefore envisaged. 
All projects ended by 31 December 2007. A closure conference was organised in 
December 2007, at which the 5 national th ematic networks (Integration and 
Labour Market, Learning and Working, Activation, Equal Opportunities, and 
Entrepreneurship) presented their final repo rts. An electronic da tabase containing the 
products and methodologies developed by EQUAL projects will be published 
(first half of 2008) at www.agentschapszw.nl
. 
EN 99   EN The monitoring committee met once and the Annual Implementation Report was 
received on time. 
17.5.3.  Leader 
Four Leader+ programmes are being implemented in the Netherlands in the 
2000-2006 programming period (Randstad, Noord, Zuid and Oost). The EAGGF-Guidance Section contribu tion to these programmes amounts to 
EUR 82.6 million. At the end of 2007, global execution amounted to EUR 56.0 million or 67.8% of the EAGGF allocation. 
For the programme Leader+ Randsta d, decommitment under the “n+2” rule, 
amounting to EUR 1 065 846, was enacte d by Decision C(2007)6668. No other 
changes to the programmes were made in 2007. 
17.6. Closure of the 1994-1999 programming period 
It has not yet been possible to close the only remaining Dutch programme with 
ERDF assistance. A revised proposal has been prepared in the context of an 
Article 24 procedure. However, the unsettled commitment involved is very small. 
As regards the ESF, three programmes rema in open, despite a decreasing number of 
ongoing judicial procedures. 
EN 100   EN 18. AUSTRIA  
2007-2013 programming period The National Strategic Reference Framew ork (NSRF – designate d in Austria as 
“strat.at”) was adopted by Commi ssion Decision C(2007)1462 on 04/04/2007. 
It provides for total ERDF and E SF contributions of EUR 680 066 021 and 
EUR 524 412 560 respectively. 5 pr iorities are envisaged: 
(1) regional competitiveness and innovation; 
(2) attractive regions and quality of location; 
(3) employment growth and qualific ation of the labour force; 
(4) territorial cooperation; 
(5) governance. 
The ESF OP Burgenland Phasing-Ou t Objective 1 2007-2013 was adopted 
by Commission Decision C(2007)4485 on 25/09/2007, and the OP Employment 
by Commission Decision C(2007)6721 on 17/12/2007. 
The kick-off conference on the Structural F unds period 2007-2013 in Austria, held in 
Eisenstadt in June 2007, assembled fe deral authorities (Oerok, ministries, 
Federal Chancellery), the regional le vel (Länder, managing authorities), 
the European Commission (DG RE GIO and DG EMPL) and business 
representatives. Speakers underlined the positive impact of SF support for Austria’s 
regional and spatial development.  
The first Monitoring Committee Meeting Burgenland Phasing-Out Convergence 
2007-2013 held in Lutzmannsburg in June 2007 covered both ERDF and ESF OPs. The meeting laid the first cornerstones in terms of rules of procedure and project 
selection criteria.  
The first Monitoring Committee Meeting of  the Austrian OP ESF Employment 
2007-2013 took place in Vienna on 20 June 2007 and adopted the rules of procedure. 
Progress with the OP, project selection crit eria, questions relati ng to publicity and 
Territorial Employment Pact s were also discussed.  
The Operational Programme for the implem entation of the European Fisheries Fund 
in Austria was adopted on 17 December 2007. Commitments of the annual amounts 
for 2007 and 2008 have been made. The adva nce payment of 7% (out of a total 
budget of EUR 5 259 318) was made on 3 January 2008. This includes EUR 13 112 for the region under the C onvergence Objective, Burgenland, and 
EUR 355 039 for the rest of the country  outside the Convergence Objective. 
The first meeting of the monitoring committee was held on 1 February 2008. Selection criteria and national im plementing legislation are in place.  
EN 101   EN 2000-2006 programming period 
Austria received a total Structural Fund contribution of EUR 1 782 million between 
2000 and 2006 from the ERDF, ESF, EAGGF and FIFG.  
18.1. Objective 1 
The only Objective 1 region in Austri a is Burgenland. In 2007, both the Single 
Programming Document and the Program me Complement were amended once. 
The annual meeting of Austria Objectives  1 and 2 2000-2006 was held in St. Pölten 
in November 2007. The state of play of all Structural Funds programmes for 
Objectives 1 and 2 was presented. The m eeting also discussed certain aspects 
(management and control systems, ERDF monitoring system, co mmunication plans, 
evaluation 2007-2013) of the new pr ogramming period 2007-2013. The 2006 
annual implementation reports for all Funds and priorities concer ned were formally 
submitted to the Commission in June 2007 and approved in August 2007.  
In 2007, no commitment of ERDF appropriatio ns was made for this programme, as 
the entire amount of EUR 181.5 million ha d already been committed between 
2000 and 2006. However, the Commission reim bursed certified expenditures of 
EUR 20.8 million to the paying authority, which amounts to 11.5% of the total 
ERDF contribution for the entire programm ing period, whereas total payments by the 
Commission between 2000 and 2007 amount  to EUR 150.6 million or 83% of the 
total ERDF contribution. 
In 2007, EAGGF-Guidance Section payments made by the Commission for the 
Objective 1 priority for Burgenland am ounted to EUR 4.855 million. 62.13% of the 
amount committed for 2006 was spent and at the end of 2007 the cumulative EAGGF contribution for the period 2000-2006 had reached 94.20% of total commitments. 
No commitments of ESF funds were made, as the total ESF amount of 
EUR 57.4 million was already committed up to 2006. EUR 3.7 million was paid in 
2007. In the period 2000-2006, a total of EUR 57.4 million was committed and EUR 48.5 million was paid by the Commission (i.e. 84.4% of the total ESF contribution). After th e seventh monitoring committ ee meeting, which was held 
in June 2006, no further monitoring committee meetings for the period 2000-2006 took place in 2007. All decisions were taken by written procedure. 
For the FIFG, no payments were made to Burgenland as an Objective 1 region in 
2007, as the remaining programme cover ha s been transferre d to other Funds 
decommitted after 31 December 2004. 
18.2. Objective 2 
The following eight Austrian regions ar e Objective 2 regions: Upper Austria, 
Lower Austria, Styria, Cari nthia, Salzburg, Tyrol, Vorarlberg and Vienna. In 2007, 
no commitments of ERDF appropriations were made to these programmes because an amount of EUR 704.9 million had already been committed between 2001 and 2007. However, the Commission reimbur sed certified expenditure of 
EUR 99.4 million to the paying authority, which is 14% of the total 
EN 102   EN ERDF contribution for the entire pr ogramming period. Total payments by the 
Commission between 2000 and 2007 amount  to EUR 605.6 million or 86% of the 
total ERDF contribution. 
As far as the three programmes containing an ESF component (Carinthia, Styria and 
Vienna) are concerned, no commitments were made in 2007, as the total ESF amount of EUR 27.5 million was already committe d up to 2006. EUR 3.7 million was paid in 
2007. In the period 2000-2006, a total of EUR 27.5 million was committed and EUR 24.4 million was paid (i.e. 88.7% of the total ESF contribution). 
In 2007, six Single Programming Docu ments were amended. Moreover, 
eleven versions of programme complements were accepted.  
As for Objective 1, there were no monitoring committee meetings in 2007 for the 
period 2000-2006, and all decisions we re by written procedures. The 2006 
annual implementation reports for the programmes were formally submitted to the Commission in June 2007 and approved in August 2007. 
In November 2007, the annual meeting was held  in St. Pölten, Lower Austria, for all 
Objective 2 and Objective 1 programmes. At this meeting the state of play of all 
Structural Funds programmes was pres ented and discussed (cf. above under 
Objective 1).  
Regarding “n+2”, an amount of EUR 1.2 million has to be decommitted for the 
SPD 2 Vienna (ERDF).  
18.3. Objective 3 
In 2007, no commitment for the ESF program me was made, as the total ESF amount 
of EUR 571.97 million was already committed up to 2006. EUR 11.9 million was paid in 2007. In the period 2000-2006, a total of EUR 571.97 was committed and EUR 543.37 million paid (i.e. 95% of total ESF contribution).  
A monitoring committee meeting was he ld in June 2007. Th e Annual Report 2006 
and the state of implementation were disc ussed. The audit follow-up to a previous 
EMPL audit at the BMSK (Ministry for Social  Affairs) was a further important issue. 
The 2000-2006 monitoring committee was dissol ved and its tasks transferred to the 
2007-2013 monitoring committee.  
18.4. Fisheries outside Objective 1 
Within the Fisheries Operational Program me for Austria outside Objective 1, two 
priority axes are being co-financed by th e FIFG, “Aquatic resources, aquaculture, 
fishing ports, processing and marketing, in land fisheries” and “Other measures”. 
Their respective shares of the prog rammes are EUR 4 489 000 and EUR 11 000. 
Financial execution has reached 93.99% of the total (EUR 4 229 726 out of 
EUR 4 500 000). There is no risk of “n+2” decommitment in 2007. 
EN 103   EN 18.5. Community Initiatives  
18.5.1.  Urban 
There are two URBAN II programmes for Au stria. The Vienna programme receives 
EUR 4.2 million and the Graz programme  EUR 4.3 million from the ERDF. 
The total budget for Vienna is EUR 13.9 million and for Graz EUR 20.7 million. 
For both programmes, annual reports were  received each year, found to be 
satisfactory and adopted. 
The managing authority for both programmes is the city. The programmes coordinate 
their monitoring committees and both are represented in the monitoring committee of 
the other programme. They meet in autumn each year. 
Both programmes have consistently met the “n+2” targets. 
Overall comments concerning the 2000-2006 period  
The programmes have contributed to the economic regeneration of inner-city areas, 
where old industrial sites have been provide d with new infrastruc ture, facilities and 
access links, thus creating the basic conditi ons for a new cycle of post-industrial 
economic activity, particularly in the area of tech nological innovation. 
18.5.2.  Equal 
The Austrian programme proceeded without difficulties in 2007. In financial terms, 
EUR 89 million had been paid from the ESF by the end of 2007, out of a total of 
EUR 103.8 million – a ratio of 86%. Automatic  decommitment under the “n+2” rule 
was avoided for 2007. 
No audits were performed by the Euro pean Court of Auditors in 2007. 
A final monitoring committee meeting was held on 26 November 2007, as Austria 
had decided to close down EQUAL a year earlier than the other Member States. 
No Annual Meeting was held in 2007. No amendments were  made to the programme 
in 2007. 
18.5.3.  Leader 
The Leader+ programme for Austria was approved by Decision C(2001)820 of 
26 March 2001, as last amended by Decision C(2006) 4830 of 6 December 2006. 
Total expenditure under the programme was EUR 164.30 million in the period 
2001-2006. This includes an EU contri bution of EUR 76.80 million and a 
contribution of EUR 59 million from the private sector (these figures already include indexation amounts). 
The Austrian Leader+ programme covers 8 re gions of Austria, with the exception of 
urban Vienna. 
The amount paid from the EAGGF-Guidan ce Section for the Leader+ programme 
was EUR 21.837 million in 2007, bringing total payments to EUR 64.766 million, 
i.e. 84.29% of the amount for the period 2001-2006. 79.87% of the EAGGF-Guidance funds for 2006 is still to be consumed. 
EN 104   EN 18.6. Closure of the 1994-1999 programming period 
As regards the ERDF contribution to th e Austrian 1995-1999 programmes, all the 
Objective 2, Objective 5b and Community initiatives (except one INTERREG programme) were closed be fore 2006. The final decision for the 
INTERREG programme, based on the Article  24 procedure, is still pending.  
All ESF programmes are closed. 
EN 105   EN 19. POLAND  
2007-2013 programming period The final version of the NSRF for the 2007-2013 period was adopted by the 
government on 29 November 2006 and submitted to the Commission on 
7 December 2006. The first OPs were also submitted before the end of 2006: the Innovative Economy OP, the Human Capital OP, the Technical Assistance OP and 
the Infrastructure and Environment OP. The sixteen Regional Operational 
Programmes were submitted by March 2007. The subsequent intensive negotiations included in total 64 official and 30 thematic and working meetings. This exercise was particularly challenging, as the Polish regions were participating 
for the first time in negotiations as futu re managing authorities for regional OPs.  
The NSRF was adopted in less than 3 mo nths of effective assessment by the 
Commission (adopted on 5 May 2007 in the group of the first ten Member States). 
All 21 OPs were adopted by th e end of 2007. 18 OPs were adopted within 5 months 
of effective assessment.  
For two OPs (Swietokrzyskie ROP and Infrastructure and Environment OP) 
additional negotiations were necessary due to differences of opinions between the 
Commission and Poland. 
To measure the impact of Cohesion Policy, the NSRF has set several targets for its 
development strategy:  
– the GDP level per capita (in PPS) should reach 65% of the EU-25 average 
(compared to 51.1% in 2006);  
– 3.5 million jobs should be created with st ructural and cohesion funds support;  
– by 2013 the employment rate should be 60% (compared to 52.8% in 2005), and 
35% for people aged 55-64 (in 2013);  
– the long-term unemployment rate shoul d drop to 3% (from 7.8% in 2006); 
– the percentage share of the adult populati on (people aged 25-64) participating in 
education and training should increase to  10% (in comparison to 5.2% in 2005); 
– for the business sector, productivity per employee should reach 75% of the 
EU average (compared to 59% in 2005);  
– R&D expenditure should peak to 1.5% (compared to 0.57% in 2005);  
– the length of motorways s hould triple from 554 km to 1 754 km and railways from 
538 km to 1 786 km; and 
– the renewable energy share in electricity  should rise to 8.5% (compared to 2.9% 
in 2005) 
EN 106   EN The Commission promoted an objective-base d approach to OPs by using quantified 
targets. The outcome was a table with stra tegic indicators (core and additional ones), 
which was agreed between the EC and the Polish authorities. These indicators are included in all the relevant priority axes and OPs. This exercise provides for better strategies and greater consistency betw een the programmes and makes for direct 
comparison between programmes and aggr egated data. a matrix of specific 
objectives and measurable targ ets at programme and priori ty levels was defined for 
the Human Capital OP.  
Additional to the ROPs, the EC also aske d the managing author ities to introduce a 
GDP target. This target was to reflect the expected GDP level in Purchasing Power Standard in comparison to the EU-27 and increase the “visibility” of the EU contribution in the region. 
2000-2006 programming period 
19.1. Objective 1 
2007 was the second year where the “n +2” rule was applicable to Poland. 
However, this time it was a real hurdle as the advance paymen t no longer counted. 
Thanks to concerted efforts by the Commi ssion and the Polish authorities, all the 
“mainstream” programmes avoided decommitme nt of funds. The Integrated Regional 
OP was the most advanced OP in terms of financial execution of the ERDF. Financial execution of the ESF Priority under the Integrated Regional OP was more challenging, but finally at the end of  2007 the risk of “n+2” was averted. 
Execution of the ESF under the Sectoral Operational Programme “Human Resources 
Development” showed very good results, reaching a level of reimbursement of 78% at the end of 2007. The Sectoral Programme for Transport and the 
Sectoral Programme “Increase of Competitiveness of Enterprises” substantially accelerated their financial execution and ex ceeded the “n+2” thresholds with ease. 
In terms of budget implementation of all Operational Programmes together, 
all commitments for 2004-2006 (EUR 4.972 billion for ERDF and EUR 1.908 billion 
for ESF) had been made by the end of 2006 — and thus there were no new 
commitments in 2007. As far as payments are concerned, EUR 1.476 billion from the ERDF was paid in 2007 (2004-2007: EU R 3.369 billion including advances) and 
EUR 758.8 million (2004-2007: EUR 1.4 billion including advances) from the ESF. 
Total payments for the EAGGF in 20 07 amounted to EUR 346.4 million (2004-2007: 
EUR 895.1 million). No amounts from the FIFG funds were paid out in 2007 
(2004-2006: EUR 201.5 million). Although there was no need for FIFG decommitment under the “n+2” rule, to tal payments amount to only 45% of the 
total FIFG allocation. Total payments for a ll Structural Funds up to the end of 2007 
were EUR 5.75 billion (including advances). 
The Polish authorities use a developed vers ion of the HERMIN model to assess the 
impact of Cohesion Policy on the Polis h economy, and estimate that in 2007 the 
Structural Funds will have contributed to  additional GDP growth in the range of 
0.57%-1.71%, and created up to 316 000 new jobs. This shows that, for a country like Poland, a massive inflow of EU f unding will bring visible results for the 
Polish economy, even if the supply-side effects are not yet fully taken into account.  
EN 107   EN Throughout 2007, the Polish authorities contin ued to fine-tune the implementation 
system, following the finalised national action plan on the simplification of 
procedures. The National Development La w was amended, and rules for financial 
management improved (handling of advances, co-financing). The Ministry for Regional Development fully developed its capacity as the main coordinator of 
Cohesion Policy issues in Poland, in c ooperation with regional authorities and 
national line ministries.  
The Commission participated in the C SF and the OP monitoring committees. 
Items discussed included appr oval of the periodical (inc luding annual) reports and 
amendments (including financial) to the programme complement of the respective 
operational programmes.  
The annual review meeting was held in Poland on 22-23 October 2007 as a joint 
meeting for all OPs and Funds. Additional annual meetings for ESF programmes (SOP Human Resources Development and In tegrated Regional OP) were held in 
Brussels in advance of a mega Comm unity Support Framework annual meeting. 
The meetings focused on the qualitative assessment of the implementation of 
programmes so far and on practical measures  for improving performance in the near 
future. The main issues discussed were, for example, the contribution of operations to the Lisbon Strategy, implementation of the human resources development 
strategy, implementation of transport stra tegy, measures to boost R&D expenditure, 
and the territorial impact of funds on inter-regional differences, including the 
prosperity of rural areas. The Polish authorities presented the outcomes of the evaluations of the Structural Funds, which showed impressive results in relation to 
the macro-economic impact of the funds. Unfortunately, progress on R&D and the 
information society in this shortened pr ogramming period was rather limited due to 
the complexity of the projects. In negotiati ons on the new 2007-2013 
programming period, therefore, more em phasis was put on achieving objectives 
geared to the Lisbon agenda  (64% of Lisbon-earmarked expenditure). Other aspects 
discussed during the annual meeting we re problems with compliance with 
EU policies (for example, public procurem ent, environment), informatics system, 
and boosting the administrative capacity (programme management, coordination, 
project selection). 
One of the issues to which the atten tion of the Commission was drawn was a 
new legal set-up for the next period, i.e.  the Development Policy Law was amended 
by the Polish authorities in order to fully comply with EU regulations regarding the 
set-up of managing authorities, terminol ogy and project selection. Other national 
legislation of relevance to Cohesion Policy will need to be further amended in order 
to be brought in line with EU directives (i.e. public procurement, environment). 
A stable legal environment in compliance wi th EU legislation needs to be guaranteed 
in order to give certainty to the bene ficiaries regarding the implementation of 
their projects. 
19.2. Community Initiatives 
19.2.1.  Equal 
The Polish programme proceeded without di fficulties in 2007. At the end of 2007, 
the rate of financial execution (incl uding advance payments) of the ESF was 
EN 108   EN approximately 64.3% of the total. Automa tic decommitment under the “n+2” rule 
was avoided for 2007.  
There were two monitoring committee mee tings held in 2007, one of which the 
Commission attended. Items discussed include d approval of the pe riodic (including 
annual) reports and amendments (inc luding financial) to the programme 
complement.  
An amendment of the programme  entered into force in 2007. 
19.2.2.  Leader 
As with other recently acceded Member States, a Leader+ type measure is 
mainstreamed in the EAGGF Objec tive 1 programme “Restructuring and 
modernisation of the agri-food s ector and rural development”. 
EN 109   EN 20. PORTUGAL  
2000-2006 programming period 
20.1. Objective 1 
For operations in Portugal, 2007 was a challenging year with a number of 
reprogramming exercises desi gned to maximise efforts to absorb the resources 
allocated for the period 2000-2006 and to op timise the ability to comply with the 
“n+2” rule, in tandem with negotiations for the new programming period 2007-2013. 
The 2006 annual reports for the Operational Programmes (OPs) and for the 
Community Support Framework III (CSF II I) were submitted and accepted by the 
Commission. Occasionally, approval of th e annual reports was accompanied by 
observations or additional informa tion requested from the Commission.  
Unlike in previous years, a horizontal annual meeting between the Commission and 
the managing authorities for CSF III assistance in 2007 was not considered necessary, primarily because most of the effort was devoted to preparing the new programming period. Nevertheless, annua l meetings were organised in 2007, 
but only in the case of four operational programmes (Accessibili ty and Transport, 
Economy, Alentejo and Norte), where it was deemed necessary. These four meetings 
were postponed to the first quarter of 2008 due to pressure of work at the end of 
2007. The main items on the agenda at the annual meetings of these OPs were financial and physical execution and ability to comply with  the “n+2” rule, analysis 
and quantification of indicators, follow-up of the recommendations of the audits and 
ongoing action plans to improve control syst ems, prospects for closure and a number 
of outstanding issues specific to each pr ogramme. An annual review meeting of OPs 
mainly co-financed by the ESF took plac e in early 2008 regardi ng implementation in 
2007 and the 2006 annual report on the two biggest ESF-funded programmes (POEFDS and PRODEP). This meeting focu sed on the main chal lenges regarding 
implementation, the prospects for closur e and also the transition towards the 
2007-2013 ESF OP (Human Potential OP). On 31 December 2007, these OPs presented high execution rates and both are scheduled to reach 100% execution for closure. The main challenge remain s the high error rate in POEFDS. 
As there was no material for discussion or  information, the annua l horizontal level 
monitoring committee meeting for C SF III did not take place in 2007. 
As usual, the majority of Portuguese  OPs held their first series of 
monitoring committee meetings in the first half of 2007. The second round of 
monitoring committee meetings were consider ed not to be necessary for the same 
reasons as mentioned above. In many cases , written procedures were applied to 
approve the annual reports and to deal with the reprogramming exercises.  
As regards reprogramming, 2007  was a year of further adjustments to certain 
programmes or programme complements.  
General implementation of the CSF in Port ugal continued at a satisfactory pace with 
the vast majority of payments concentr ated at the end of the year. In 2007, 
EN 110   EN total payment claims for the CSF III tr ansmitted to the Commission amounted to 
63% of the payment claims forecast by the national authorit ies in April 2007. 
In nominal terms, this means that EUR 1 651 million was implemented compared to the forecast EUR 2 565 million. At Fund le vel for 2007, the ERDF reached 57% of 
forecast expenditure, which means that it spent EUR 1 021 million during 2007. The relatively low level of ERDF spending is due in part to implementation of the Action Plan on public procurement, whic h led the Portuguese Authorities to 
withdraw a considerable amount of irre gular expenditure. E SF payments in 2007 
reached 58% of the total forecast for the year, which amounts to spending of around 
EUR 380 million. For the same year, the EAGGF-Guidance Section reached 76.5% 
of forecast expenditure, i.e. EUR 248.5 million. FIFG payments compared to the forecast reached 53% in 2007, i.e. EUR 18 million.  
No decommitment amending decisions we re needed in 2007 for the ERDF in 
application of the “n+2” rule at the e nd of 2006. However, two ERDF programmes 
(Agriculture and Rural Development and Information Society) did not reach the 
threshold of the “n+2” rule at the end of  2007, and thus the automatic decommitment 
procedures have been initiated.  
As regards the EAGGF-Guidance Section, two decommitment amending decisions 
were necessary in 2007, following application of the “n+2” rule at the end of 2006 for the OPs Algarve and Centro. At the end of 2007, five OPs (Agriculture and 
Rural Development, Algarve, Alentejo, Ce ntro and Norte) did not reach the “n+2” 
threshold as regards the EAGGF and the automatic decommitment procedures were initiated. 
In 2007, three new major project decisions were adopted by the Commission, which 
all relate to renewable wi nd energy generation projects. 
20.2. Community Initiatives 
20.2.1.  Equal 
The PT EQUAL programme enjoyed efficient implementation throughout 2007. 
A new Decision was adopted [C(2007) 1261, of 14 March 2007] to tr ansfer of funds 
between priorities. The managing author ity organised a monitoring committee 
meeting on 18 June 2007 in Lisbon, to approve the annual rapport of the preceding year, and presented the CAIM project (in the field of human trafficking). 
Interim payments amounted to EUR 99.14 m illion by the end of 2007, i.e. 86% of the 
overall budget. 
20.2.2.  Leader 
Portugal has a single national Leader+ Progr amme. The total cost of this programme 
for the period 2001-2006 is set at EUR 272.625 million. This includes a contribution from the EAGGF-Guidance Section of EUR 164.454 million. At the end of 2007, 
payments amounted to EUR 137.889 million, i.e. 84% of the planned EAGGF-Guidance amount for the w hole programming period. In 2007, 
EAGGF payments reached 108% of forecast expenditure for that year, meaning that EUR 30.392 million was spent. This program me reached the “n+2” target for 2007. 
EN 111   EN 20.2.3.  Urban 
There are three URBAN II programmes in  Portugal: Amadora (Damaia-Buraca), 
Lisboa (Vale de Alcântara) and Porto-Gondomar. Amadora receives 
EUR 3.7 million, Lisboa EUR 5.7 milli on and Porto-Gondomar EUR 10.1 million 
from the ERDF. The total budget for Amadora is EUR 10.6 million, Lisboa 
EUR 10.3 million and Porto-Gondomar EUR 1 4.5 million. Draft annual reports have 
been received each year for all three progr ammes, amended in the light of comments 
from the European Commission and adopted.  
The managing authorities for the programmes are at regional level in the Regional 
Coordination and Development Commissions. In the cases of Amadora and Lisboa, this is the Lisboa and Vale do Tejo Region and, in the case of Porto-Gondomar, it is 
the Norte Region. The monitoring committees met once or twice each year. 
All three programmes reached the “n+2” targets for 2007 Overall, the programmes have  tackled serious socio-econom ic problems in inner-city 
areas and contributed to the renovation of local infrastructure, training, community 
mediation programmes and the treatment of drug dependency. 
20.3. Closure of 1994-1999 programming period 
As regards the closure of 1994-1999 progra mming period for the CSF II, the last 
three ERDF programmes open were finally closed in 2007, but there are still audit 
procedures ongoing that can result in fina ncial corrections for several programmes. 
The last seven programmes open regarding the EAGGF-Guidance Section were also 
closed in 2007 and the final decommitment will be made after adoption of the Decision on financial corrections. However,  ongoing audit procedures may result in 
financial corrections for several programmes. 
EN 112   EN 21. SLOVAKIA  
2007-2013 programming period As regards the period 2007-2013, negotiations  on the National Strategic Reference 
Framework started in October 2005. The first official text was submitted in 
December 2006, and the Commission adopted the decision on the NSRF on 17 August 2007. The NSRF approved eleven operational programmes (ERDF, ESF, 
CF), thus providing for a budget of  EUR 11.36 billion for Slovakia. 
The main discussions focused on achieving balanced regional allocations and involvement of the regions in national programmes and on the inclusion of Roma 
issues and energy efficiency as cross-cu tting priorities. Ther e was a significant 
increase in the share of R&D and information society measures compared with the previous period. 
In the new programming period, Slova kia has eight ERDF OPs under the 
Convergence objective, with an ERDF budget of EUR 7 billion. The Research and 
Development OP  is a multi-objective OP, while the Transport and Environment OPs  
also include Cohesion Fund fi nancing (EUR 3.9 billion). All OPs were officially 
submitted in February/March 2007. Four operational programmes were adopted by the Commission in September 2007 and the remaining four in November 2007. 
Two OPs ( Regional OP and Environment OP ) had their first monitoring committee 
meetings in December 2007, where rules of procedure and selection criteria for projects were discussed. 
In the new programming period, Slovakia has two multi-objective ESF OPs, with a 
total allocation of EUR 1.5 b illion, namely the OP Employment and Social Inclusion 
with an allocation of EUR 882 million and th e OP Education with an allocation of 
EUR 618 million. The OPs have budgets of EUR 35.6 million under the Competitiveness Objective and EUR 1.46 bill ion under the Convergence Objective. 
Both OPs were officially submitted in March 2007 and adopted in 
October/November 2007. Both OPs had their first monitoring committee meetings in November 2007, where rules of procedure and selection criteria for projects 
were discussed. 
In the programming period 2007-2013, there is one ERDF OP that falls under the 
Regional Competitiveness and Employment Objective, namely Bratislava, with an allocation of EUR 87 million. The OP was submitted in March and adopted in December 2007. There is also a multi-obj ective operational programme, namely 
the Research and Development OP , with an allocation of EUR 326 million, 
for Bratislava. 
2000-2006 programming period 
Slovakia received a total EU contribu tion of over EUR 1 145 million for the 
programming period (2004 to 2006) under the CSF (i.e. funding from the ERDF, 
ESF, EAGGF and FIFG). This is split into three mono-fund operational programmes 
and one operational programme funded from  the EAGGF and the FIFG, as described 
below. There are also Objective 2 and Objective 3 single programming documents 
for the Bratislava Region.  
EN 113   EN Eight meetings of the CSF monitoring comm ittee were held in total (two meetings 
in 2007) to address horizontal issues in implementation of the Structural Funds in 
Slovakia. The discussion focused on horizont al themes - coordination, administrative 
capacities and use of technical assistance, Roma issues, evaluation, simplification of 
procedures and regional aspects in thema tic OPs. The CSF annual report for 2006 
was submitted in June 2007 and evaluated. 
21.1. Objective 1 
Two monitoring committee meetings on the Basic Infrastructure OP  took place in 
2007 (eight in the period 2004-2006). Th e 2006 annual implementation report was 
formally submitted to the Commission in  June 2007 and approved. The full amount 
of EUR 422.3 million (ERDF) had already been committed in the previous period. 
EUR 140.5 million was paid in 2007 and another EUR 44.1 million requested (paid in 2008). In total, EUR 272.7 million ha d been paid out up to the end of 2007 
and, with the request submitted in December for EUR 44.1 million, this comes to 75% of overall commitments. The OP has me t the “n+2” rule so far. The OP was 
amended in May 2007 and one amendment of the programme complement was approved with reallocation of money within the programme. 
Approximately 1 100 projects have been financed under the OP, including large 
environmental, road and railway proj ects, schools, social infrastructure, 
information technologies and village renewals.  
The Industry and Services OP  held two monitoring committee meetings to evaluate 
progress. The 2006 annual implementation report was formally submitted to the Commission in June 2007 and approved. The full amount of EUR 151.2 million 
(ERDF) had already been committed in the previous period. EUR 49.1 million was 
paid in 2007 and another EUR 19.6 million requested (paid in 2008). In total, 
EUR 88.8 million had been paid out up to the end of 2007 and, with the request 
submitted in December of EUR 19.6 m illion, this comes to 71.7% of overall 
commitments. Approximately 400 projects have been financed under the OP, 
including investments in private compan ies and public infrastructure to support 
innovation, business incubators, industrial parks, research and development, energy 
efficiency and tourism. 
The Agriculture and Rural Development OP  had two meetings of its monitoring 
committee, one in March and one in November 2007. The 2006 annual implementation report was submitted to the Commission in May and subsequently approved. Implementati on of the programme progressed in a 
satisfactory manner, the most popular meas ure being investment  in agricultural 
holdings (53% of funds). 72% of allocated funds had been utilised by the end of 
2007. No proposals for programme amendments were submitted in 2007. Three interim payment requests amounting to a total of EUR 54 172 910 were submitted to DG AGRI in 2007. This amounts to 30% of this OP’s total EAGGF-Guidance Section allocation for 2004-2006. 
The ESF Human Resources OP held two monitoring committee meetings in 2007. 
The Annual Implementation Report for 2006 was formally delivered in June 2007 
and approved by the Commission. The annual meeting took place in February 2008. 
The Paying Authority received EUR 76.5  million following the submission of 
two payment requests in 2007. Processing of the third payment request 
EN 114   EN (EUR 18.7 million) delivered in December 2007 has been interrupted; the process of 
notification under Article 39(2) of Council Regulation (EC) No 1260/1999 is 
currently under way. In total (advance a nd interim payments), EUR 197 million has 
been paid to the Paying Authority and, with the interrupted request submitted in December 2007, this comes to 76% of the total 2004-2006 ESF allocation. 100% of the total allocation was contracted in 2007. The OP has met the “n+2” rule so far. 
Financial resources were reallocated in June 2007 between measures of a 
single priority in order to react to implementation needs. Approximately 800 projects (national and demand-driven) have so  far been financed under the OP, 
including projects for activ e labour market policy development, improving the 
qualification and adaptabil ity of employees and job seekers, and increasing 
social inclusion and equal opportunities in the labour market. 
Financial execution is 85% of the total FIFG contribution for the OP 
(EUR 1 565 million out of EUR 1 829 million) . 99% of the funds for the fisheries 
measures has been contracted. There is no risk of “n+2” decommitment. 
Regular monitoring committee meetings are held, which review the situation regarding implementation of the OP Ag riculture and Rural Development 2004-2006. 
21.2. Objective 2 
The monitoring committee for the SPD 2 progr amme Bratislava held two meetings. 
One amendment to the Commission Deci sion on the programme (December 2007) 
and two amendments to programme complements were approved in 2007. 
The 2006 annual implementation report was submitted to the Commission 
in June 2006 and was approved. The full amount of EUR 37 million (ERDF) had already been committed in the previous period. In 2007, EUR 0.13 million was decommitted in 2007, as the programme did not fully meet the “n+2” rule requirements. Following increased efforts by the managing authorities, 
implementation was improved in 2007 and the programme fulfilled the “n+2” targets 
in 2007. In total, EUR 21.1 million had been pa id out up to the end of 2007, of which 
EUR 15 million in 2007. This amounts to 57% of overall commitments. More than 200 projects have been financed under th e OP, including investments in private 
companies, public infrastructure in  support of innovation and tourism.  
21.3. Objective 3 
The Single Programming Document Br atislava Objective 3 held two 
monitoring committee meetings in 2007. The Annual Implementation Report for 2006 was formally delivered in June 2007 and approved by the Commission. The annual meeting took place in Februa ry 2008. The Paying Au thority received 
EUR 7.5 million in 2007 following one paym ent request from 2006 and two payment 
requests from 2007. Processing of the third payment request (EUR 6.5 million) delivered in December 2007 has been interr upted; the process of notification under 
Article 39(2) of Council Regulation (E C) No 1260/1999 is currently under way. 
In total (advance and interim payments), EUR 15.3 million has been paid to the Paying Authority and, with the interrupt ed request submitted in December 2007, 
this comes to 35% of the total 2004-2006 allocation. As the programming document did not comply with the “n+2” rule at  the end of 2006 and EUR 1.25 million had to 
be decommitted, an amending Commission Decision reflecting the decommitment 
was adopted on 4 October 2007. The progra mming document did not comply with 
EN 115   EN the “n+2” in 2007 either, and therefore EU R 6.5 million will have to be decommitted 
(i.e. 44% of the 2005 allocation and 15% of the total 2004-06 ESF allocation). 
Financial resources were reallocated in June 2007 between measures of a single 
priority in order to react to implementati on needs. Projects financed include demand-
driven and national projects for active la bour market policy development, lifelong 
learning development and support for R&D.  
21.4. Community Initiatives  
21.4.1.  Equal 
The Community Initiative EQUAL  held two monitoring committee meetings in 2007. 
The Annual Implementation Report for 2006 was formally delivered in July 2007 
and approved by the Commission. The annual meeting did not take place. The Paying Authority received EUR 7.4 million following submission of three 
requests for payment in 2007. Processi ng of the fourth payment request 
(EUR 2.8 million) delivered in December 2007 has been interrupted; the process of 
notification under Article 39(2) of Council Regulation (EC) No 1260/1999 is 
currently under way.  Automatic decommitment under the “n+2” rule was avoided 
both for 2006 and for 2005. In total (advance and interim payments), EUR 11.1 million has been paid to the Payi ng Authority and, with the interrupted 
request submitted in December 2007, this comes to 62% of the total 2004-2006 ESF allocation. 
EN 116   EN 22. SLOVENIA  
2007-2013 programming period An intense phase of pre- negotiation between the nati onal authorities and the 
Commission started back in October 2005 when  the two parties held a first meeting 
on macro-economic issues at which the main areas of possible Cohesion policy 
assistance were identified and analysed. Slovenia officially submitted the National Strategic Reference Pr ogramme (NSRF) and the three 
Operational Programmes in February 2007. The NSRF decision was adopted on 
18 June 2007 whereas the Cohesion Policy Operational Programmes 
“Strengthening Regional Development Pote ntials (ERDF)” and “Development of 
Environment and Transport Infrastruc ture (ERDF/CF)” were adopted on 
27 August 2007. The “Human Resources Development (ESF)” OP was adopted on 21 November 2007. The first monitoring committee meetings took place in 
December 2007 and focused mainly on preparin g selection criteria and a proposal for 
a communication plan. 
The general objectives of the NSRF are to improve the welfare of Slovenian citizens 
by promoting economic growth, facilitati ng job creation, st rengthening human 
capital and ensuring balanced and harmonious development, in particular at the regional level.  
Overall, the negotiations of the 2007- 2013 programming period were based on a 
strong partnership and can be described as both open and constructive. The Commission and the Slovene authoritie s succeeded in developing strategic and 
thematic priorities with a clear focus on Li sbon objectives. Hence, the majority of the 
total allocation of EUR 4 205 million (c urrent prices) for Structural and 
Cohesion Funds for Slovenia in the program ming period 2007-2013 will be used to 
promote entrepreneurship, innovation and t echnological development, to improve the 
quality of the educational system, trai ning and R&D activities , to increase labour 
market flexibility and to guarantee em ployment security. For the programming 
period 2007-2013, 65% of National Strategi c Reference Framework resources are 
earmarked for the renewed Lisbon priorities. 
The “Strengthening Regional Developmen t Potentials” Operational Programme 
(OP SRDP) specifically aims to enhance co mpetitiveness, foster entrepreneurship, 
innovation and technology development, and facilitate job creation, including in the 
tourism sector, while taking into account environmental and social concerns.  
As for sector-specific infrastructure inve stments, the “Development of Environment 
and Transport infrastructure” Operational Programme (OP DETI) aims to create the conditions for growth by providing sustai nable mobility, improving the quality of the 
environment and constructing suitable and su stainable infrastructure. In particular, 
the programme will help to attain one of the core objectives defined in the NSRF, namely ensuring a balanced regional development throughout the entire country. Concrete activities of the OP  include, for instance, the construction/modernisation of 
428 km of railways (TEN-T), the reconstr uction/modernisation of 215 km of roads 
(65 km of which on TEN-T), an increase in  the population share served by adequate 
water supply to 96%, the connection of an additional 700 000 people to public 
EN 117   EN sewerage and the provision of additional renewable energy cap acity, thus reducing 
energy the intensity and emission of CO 2 and other air pollutants. 
The “Human Resource Development” Operational Programme (ESF) aims to boost 
human capital towards greater  innovation capacity and em ployability and contribute 
to improved labour market flexibility while  guaranteeing employment security, in 
particular through job creati on, and promoting social incl usion. Particular emphasis 
is also given to improvement institutional and administrative capacity to help accelerate economic growth in Slovenia. Among other objectives the programme 
estimates that 270 000 participants will benefit from different ESF 
co-financed activities. It aims to increase adult participation in  lifelong learning from 
15.3% to 20.7%, the share of re searchers in the bu siness sector from 41% to 50% and 
the employment rate of young people from 35.3% to 38% and of older workers from 
33.5% to 43.5%. 
2000-2006 programming period 
22.1. Objective 1 
Slovenia is considered to be a single  Objective 1 region for the period 2004-2006. 
From the very beginning, Slovenia intended to  use the EU Structural assistance of 
EUR 237.5 million to achieve further converg ence with the EU in terms of economic 
and social development and to mitigate in ternal imbalances within the country. 
The Single Programming Document (SPD) 2004-2006 forms the legal basis for the 
use of structural funds in Slovenia a nd, more importantly, defines Slovenia’s 
strategic objectives to be achieved in the framework of Cohe sion Policy. The total 
planned public expenditure for the SPD  amounts to EUR 334.5 million. The total 
financial contribution from the four stru ctural funds (ERDF, ESF, EAGGF, FIFG) 
for the 2004-2006 period amounts to EUR 237.5 million, of which 57.5% is covered by the ERDF, 31.8% by the ESF, 9.9% by the EAGGF and 0.8% by the FIFG.  
The strategic focus of the SPD is on the following themes: 
– competitiveness of the productive sector 
– development of human resources and em ployment (creation of new jobs and 
securing existing jobs) 
– restructuring of the agricultural sector, forestry and fisheries 
– improvement of competitiveness in the different regions and areas as well as 
balanced regional development. 
Implementation of the SPD continued at a satisfactory pace in 2007 for the majority 
of the funds. In particular, the absorp tion of ERDF funds increased steadily. 
Payments authorised by the Commission up to the end of 2007 amounted to 86% of 
the total ERDF contribution to the programme , an increase of 23% over the previous 
year. For the other funds, abso rption was somewhat slower in the first half of the 
year but picked up noticeably towards the end. The cumulative amount of payments actually paid out by the end of 2007 (includi ng advance payments) for all four funds 
amounted to around EUR 173 million, which corresponds to approximately 73% of the total Structural Funds contributi on for the SPD. No cases of automatic 
EN 118   EN decommitment under the “n+2” rule for th e ERDF, ESF, EAGGF or FIFG arose at 
the end of 2007.  
As regards financial execution of the EAGGF-Guidance Section, payments made by 
the Commission for Slovenia’s Object ive 1 programme in 2007 amounted to 
EUR 7.836 million. In 2007, 74.79% of the amount committed for the year 2006 was spent and at the end of 2007 cumulative E AGGF-Guidance payments for the period 
2004-2006 reached 89.10% of total programme commitments. 
Monitoring committee meetings 
The SPD monitoring committee meeting t ook place in Slovenia in June 2007 and 
provided the opportunity to review proj ect implementation of the programme, 
financial management and the main outcomes achieved during 2006. During the meeting, representatives of the managing authority and the line ministries made 
detailed presentations of the progress of implementation for each priority and the specific measures. This included presentati ons of several co-fin anced projects to 
illustrate what had been achieved with th e support of the Structural Funds on the 
ground. Overall, the committee members cons idered the implementation of the SPD 
to be successful. In partic ular, it was noted that th e selection procedures and 
execution of projects had improved in  comparison to previous years. 
The managing authority reported that, notably  for the ERDF, more than 100% of the 
available Structural Funds allocation ha d been tendered and allocated by mid-2007. 
In terms of results, it was highlighted, for instance, that almost 6000 SMEs have been 
supported through SPD assistance, 21 busine ss zones have been established and 
around 400 investments on farms have been carried out. 
The monitoring committee approved the 2006 Annual Implementation Report and 
agreed to the proposed changes of the SPD Programme Complement concerning 
measure 1.3. “Improving the support environm ent for entrepreneur ship” and measure 
2.3 “Lifelong learning”.  
On the day before the meeting, the member s of the Committee had the opportunity to 
visit a selection of Community -funded projects (ERDF, ESF,  EAGGF) as part of the 
work agenda for the monitoring committee. This allowed them to obtain first-hand impressions of the programme’s outcome s as well as to discuss project 
implementation and possible problems with the final beneficiaries.  
Annual Reports and annual meeting 
As in previous years, the Annual Implementation Report for 2006 was received in 
good time and was accepted by the Commission with certain comments and recommendations for improvement.  
The SPD annual meeting was held in Ljubljana in December 2007. 
The meeting considered all aspects of impl ementation, with special reference to audit 
activities that had been carried out by the Commission. The ESF audits revealed 
major weaknesses in monitoring and controls  system. Consequently, in the summer 
the managing authority submitted an Action plan to the Commission and proposed a 
10% financial correction. The Commi ssion accepted the Action plan and the 
correction. Due implementation of the actio n plan was confirmed by a follow-up 
audit in November. The Annual meeting also stressed the need for further 
EN 119   EN improvements to the monitoring systems in or der to obtain a meaningful analysis of 
quantitative and qualitative results and indica tors. It was also noted that financial 
reallocation among ESF measures will be n ecessary and that ESF expenditure had to 
be accelerated during 2008. 
Amendments 
At the request of the national authoritie s and following approval by the monitoring 
committee, the SPD Programme Comp lement was amended once during 2007. 
The amendment did not entail any changes to the financial plan.  
The use of technical assistance  
The SPD operational technical assistance programme includes a specific priority 
designed to ensure the ri ght conditions for effective implementation of the 
development strategy, and to facilitate the implementation, management, follow-up, 
control and evaluation of the programme . This priority is co-financed both by 
the ERDF and the ESF.  
Fisheries  
The total FIFG allocation committed to the measures “Modernisation of existing 
vessels and small-scale coastal fisheries” and “Aquaculture, Processing and Marketing” within the SPD for structural assistance in Slovenia  under Objective 1 
(2004-2006) amounts to EUR 1 781 040, of which an amount of EUR 1 434 752.47 
was certified before the end of 2007. Lega lly binding commitments were reported to 
have covered the whole FIFG allocation. The payment limit of 95% was not yet reached (35.81%); payments to the Member State amounted to EUR 637 799.7. 
22.2. Community Initiatives  
22.2.1.  Equal 
The Slovenian EQUAL programme proceeded with some difficulties and, at the end 
of 2007, the rate of financial execution of the ESF part of the programme remained 
low, at only 46.33%, or EUR 2.86 million (i ncluding PoA). Due to low financial 
execution by the end of 2006 and the “n+2” rule, automatic decommitment of the 2004 budget was carried out in the sum of EUR 0.276 million in 2007.  
The audit of the system carried out by the BSO (Budget Supervising Office) in 2006 
found out that management and control sy stems for CIP EQUAL were deficient in 
certain parts and therefore recommendations fo r rectification of th e deficiencies were 
issued. An audit on the observance of th ese recommendations performed by the BSO 
in spring 2007 and again at the end of 2007 found out that the progress has been 
made in respect of the majority of th e recommendations issued. It also noted 
significant turnover of managing authority staff. 
In 2007, the BSO carried out an audit of el igible expenditure for the SPD. The BSO 
selected the company Deloitte to perfor m the audit of eligible expenditure. 
These reports have not yet been sent to the Commissi on. No other EQUAL audits 
have been carried out in Slovenia so far. 
EN 120   EN The managing authority held two monitori ng committee meetings, one in June and 
one in December. An Evaluation Steering Gr oup held two meetings, one in January 
and one in June. A Workshop on final report s for the development partnerships was 
held in September 2007, while the final E QUAL conference and the second national 
thematic network meeting took place n 23 October 2007. 
No amendments were made to the programme. 
EN 121   EN 23. FINLAND  
2007-2013 programming period The five regional ERDF programmes (Eas tern, Northern, Western and Southern 
Finland and Åland Islands) and the two ESF programmes (Mainland Finland and the 
Åland Islands) were adopt ed by the Commission in  autumn 2007. The first 
commitments and advance payments were ex ecuted for all seven programmes before 
the end of 2007. The main strategic prioriti es of the programmes are the promotion 
of business activity, innova tion activity and networki ng, consolidating knowledge 
structures, and improving regional accessi bility and operational environments.  
The 2007-2013 ERDF programmes and th e Mainland Finland ESF programme 
started implementation in the autumn of 2007. A kick-off ev ent took place in 
October 2007 in Helsinki. Directo r-General Ahner from DG REGIO and 
Director Stub Jörgensen from DG EMPL  participated. The first monitoring 
committee meetings for the Mainland Fi nland ERDF and ESF programmes took 
place at the end of year 2007 and for the Ål and Islands programmes in January 2008. 
During the first monitoring committee meetings, the rules of procedure and the selection criteria for the programmes were adopted and the allocations of technical 
assistance were decided. The start of  implementation of the programmes and 
communication activities was al so discussed. No annual review meetings for the 
2007-2013 programmes were organised in 2007. 
2000-2006 programming period  
For the 2000-2006 period, Finland was allo cated EUR 2 120 billion (1999 prices) 
from the Structural Funds, of which approximately 60% ERDF, 26% ESF, 13.5% EAGGF and 0.5% FIFG. The funds we re allocated to two Objective 1 
programmes, three Objective 2 program mes, two Objective 3 programmes, 
one FIFG programme, nine IINTERREG programmes, one URBAN programme, 
one LEADER programme and one EQUAL Community Initiative programme.  
For the 2007-2013 programming period, Fi nland was allocated EUR 1.596 billion 
under the Regional Competitiveness and Employment objective and EUR 120 million under the Cooperation obj ective, totalling EUR 1.7 billion. 
Of this amount, 64% is ERDF and 36%  ESF funding. The Eastern and Northern 
Finland regions benefit from a special allo cation from the ERDF, based on their very 
sparse populations, in the amount of EUR 35 per inhabitant per year, totalling 
EUR 359 million. The whole territory of  Finland is eligible under the 
Regional Competitiveness and Employment objective, with Eastern Finland as a phasing-in region. The Finnish Struct ural Fund strategy for 2007-2013 is 
implemented through five regional ERDF  programmes and two ESF programmes.  
23.1. Objective 1 
In 2007, the Northern and Eastern Finland Objective 1 programmes progressed as 
planned. At national level, EU funds were fully committed to projects and over 82% of EU funding was paid to fina l beneficiaries. At  Commission level, 
100% of the programme funds was committe d by the end of 2007 and over 87% of 
EN 122   EN programme funds had been paid to Finl and, including advance payments. No “n+2” 
decommitments have been made for any of the programmes.  
The two programmes were amended in March 2007 for the last time following 
requests from the Member State subm itted in December 2006. The amendments 
concerned the shifting of funds  within priorities in or der to ensure full use of 
programme funds towards the e nd of the programming period. 
Both programme complements we re adapted twice during 2007.  
No monitoring committee meetings were organised for the two programmes in 2007. 
The 2006 annual reports were adopted by wr itten procedure. The annual review 
meeting between the Commission and the Fi nnish Managing authority was organised 
in February 2008 and dealt mainly with th e progress of programme implementation, 
closure preparations and management a nd audit issues, incl uding an action plan 
proposed to Finland to improve the opera tion of their manage ment and control 
system in respect of the 2000-2006 programming period. 
The quantitative and horizon tal objectives set for the programmes have been 
achieved. The programmes ha ve helped to create ne arly 40 000 jobs and 
8 300 enterprises. Over 250 000 people ha ve participated in ESF measures. 
In addition, the programmes have strengthene d the role of regions, fostered regional 
identity and responsibility for local deve lopment, improved multi-annual strategic 
planning, and promoted partnership and coope ration between the different levels of 
public administration and other stakeholde rs. New methods and models have been 
created in the field of employment and education and training policies. 
Fisheries 
FIFG implementation in the Objective 1 programmes is progressing well. 
For the Northern programme, the commitment rate at the end of the year was 100%, 
while the 95% limit has been reached. Th e Objective 1 Eastern programme had a 
100% commitment rate and 92% paym ent rate. No “n+2” rule-related 
decommitments were necessary for the FIFG. 
23.2. Objective 2 
In 2007, the three Finnish Objective 2 programmes for Southern Finland, 
Western Finland and the Åland Islands progressed as planne d. At national level, over 
100% of EU funds had been committed to projects and over 80% of EU funding had 
been paid to final beneficiaries in S outhern and Western Finland, and, for the 
Åland Islands, the funds are virtually fu lly committed and payment levels close to 
70%. At Commission level, 100% of the pr ogramme funds had been committed by 
the end of 2007 and over 88% of programme funds paid to the national authorities, 
including advance payments. The progr ammes had no “n+2” decommitments.  
The Southern and Western Finland program mes have helped to create nearly 
40 000 jobs and over 7 500 enterprises. Over 180 000 people have participated in ESF measures. The horizontal targets fo r equality, environmental sustainability 
and information society have been reached, apart from gender equality projects in Southern Finland, where only 50% of the target has been met. Due to very 
ambitious target setting, the target for cr eating new enterprises will only be partly 
met: 50% for Western Finland an d 52% for Southern Finland. 
EN 123   EN The Mid-Term Evaluation updates conclude d that the programmes have brought 
added value to the regions, improved the competitiveness in the area and helped to decentralise regional research and deve lopment. The Åland Islands Objective 2 
programme has helped to create around 200 new jobs and 30 new enterprises.  
The two mainland Finland programmes were amended in April 2007 for the last time 
following requests from Finland in Decem ber 2006. The amendments concerned the 
shifting of funds within prio rities in order to ensure full use of programme funds 
towards the end of the programming peri od. The programme complements were then 
adapted in line with the programme amendments. The Åland programme complement was amended once in 2007.  
No monitoring committee meetings were or ganised for the two mainland Objective 2 
programmes in 2007. The 2006 annual reports were adopted by written procedure. 
For the Åland Islands, two monitoring committee meetings were organised in May and November 2007. The main items on the agenda were the progress of programme 
implementation, the 2006 annual report, prepar ations for closure and the preparations 
for the 2007-2013 period. 
The annual review meeting for Mainland  Finland programmes was organised in 
February 2008 in Brussels and dealt ma inly with the progress of programme 
implementation, closure preparations and ma nagement and audit issues, including an 
action plan proposed to Finland to improve the operation of their 2000-2006 management and control system. The Åland Islands annual review was 
handled by written proc edure in spring 2008.  
At national level, ERDF funding by the e nd 2007 had been granted to 825 projects 
and 3.55% of ERDF funds ha d been committed to the value of EUR 34.6 million. 
Payments to projects had reached EUR 1.2 million. The programmes have helped to create 170 new enterprises and 2 700 new jobs. ESF funding had not been committed 
by the end of 2007. 
23.3. Objective 3 
ESF funding for Finland’s Objective 3 SPD  (including the Åla nd Islands) totals 
EUR 436.6 million. The programme has progressed well. By the end of 2007, commitments totalled 100% and payments 87.05% for the mainland and 84.86% for the Åland programme. 
Altogether, 472 000 people had participated  in the activities of the mainland 
Objective 3 programme by the end of 2006. The programme has helped to create more than 8.000 new enterprises and 18 000 new jobs. More than 27.000 jobs have 
been preserved.  
Monitoring committee meetings and Annual meeting 
Two joint monitoring committee meetings fo r the new and the old period took place 
in Helsinki on 24.5.2007 and 4.12.2007. The Annua l Review meeting was held in 
Helsinki on 3.12.2007. The main issues disc ussed at the Annual Review meeting 
were implementation of the programme, the new programming period, and follow-up 
of the audit reports. A major change in th e Finnish administration will take place 
EN 124   EN following the elections of 2007 and the new government Vanhanen II. The first step 
is the formation of a new Ministry of Employment and the Economy. 
Amendments 
Some minor programme amendmen ts, with the aim of 100% 
financial implementation of all Structural  Funds funding, were introduced and some 
amendments to the annexes were proposed, in  line with administra tive and legislative 
changes in the Ministry of Labour in  2006. The final Comm ission decision was 
adopted on 7.6.2007. 
Implementation of the Åland Islands Objective 3 programme continues to progress 
very well. By the end of 2007, everything had been committed and the Commission had paid out 75% of the to tal budget. Altogether, 3 000 pe ople had participated in 
projects of the Åland Islands Obj ective 3 programme by the end of 2007. 
Two monitoring committee meetings for Object ives 2 and 3 were held jointly during 
2007. The Annual Review was dealt with by written procedure. 
23.4. Fisheries outside Objective 1 
The programme progressed better than in the previous y ear, although in the 
Ǻland islands progress was still slightly slower than in the rest of the country.  
The overall commitment rate at the end of the year was 98%, wh ile 87% of the FIFG 
financing was paid out. 
23.5. Community Initiatives  
23.5.1.  Equal 
The Finnish programme proceeded without difficulties in 2007. At the end of 2007, 
the rate of financial execution of the ESF part of the programme was 81% of 
the total. Automatic decommitment unde r the “n+2” rule was avoided for 2007. 
The managing authority organised one monitoring committee meeting and a closure seminar. Finland has decided to run dow n the EQUAL programme, in coordination 
with the other period 2000-2006 ESF programmes. No amendments were made to 
the programme. 
23.5.2.  Leader 
In 2001, the Commission approved one Leader+ programme for Finland; 
25 Local Action Groups (LAGs) were se lected and are supported by a 
national network. 
After six years of implementation of the programme, an amount of 
EUR 46.36 million (82.23%) has been paid, out of the EUR 56.38 million committed 
for 2001-2006. During the years of implementation, there were no automatic decommitments. 
EN 125   EN 23.5.3.  Urban 
The Helsinki-Vantaa URBAN II programme is  the only one in Finland. The ERDF 
will contribute a total of EUR 5.38 milli on to this programme, for which total 
eligible cost amounts to EUR 20.37 million. The managing authority for the programme is the City of Helsinki and the functional day-to-day management is 
delegated to URBAN Helsinki-Vantaa. The monitoring committee met once during 
2006. 
The “n+2” target was met in 2007.  
Overall comments concerning the 2000-2006 period  
The programme has increased the social capit al in the area and the participation of 
citizens has become more evident. New ne tworks have been established between 
authorities, citizens, homes and schools, making for a new approach, especially 
on social issues. 
23.6. Closure of the 1994-1999 programming period 
All Finnish Structural Fund programmes from the 1994-1999 programming period 
were closed before 2006. 
EN 126   EN 24. SWEDEN  
2007-2013 programming period During the spring of 2007, several meetings we re held with the Swedish authorities 
to negotiate and discuss the NSRF and th e new Operational Programmes. The NSRF 
was accepted by Commission decision of  20 July 2007, and the eight ERDF 
Operational Programmes were finally approved between 9 and 16 August 2007. 
The ESF Operational Programme was approved on 25 September 2007. 
2000-2006 programming period 
General Objectives 1 and 2 
There are two Swedish Objective 1 program mes, Norra Norrlandsregionen and Södra 
Skogslänsregionen, which together cover 65%  of Sweden’s land area but have a 
population of less than one million (11% of  total population). The total support from 
the Structural Funds for the period 2000-2006 is EUR 780 million, of which the ERDF share is almost EUR 490 milli on or 63%, ESF EUR 164 million, EAGGF 
EUR 116 million and FIFG EUR 10 milli on. Including national public and private 
participation, the Structural Funds wi ll generate assistance of EUR 2.1 billion. 
There are four Objective 2 programmes: the North, West, South and the Islands 
programmes, with total Structural Funds  support of EUR 440 million for the period 
2000-2006 (ERDF EUR 385 million or 88%, ESF EUR 55 million or 12%). The programmes cover approximatel y 16% of the Swedish population. 
Including national public and pr ivate participation, the Stru ctural Funds will generate 
assistance of EUR 1.5 billion. 
In total, more than 16 000 projects have  been started. For instance, a number of 
venture capital and mutual guarantee pr ojects have been approved since 2005. 
These projects have gained a lot of attention and interest. 
By the end of December 2007, the Swed ish programmes (all funds) had created 
more than 110 000 new or preserved jobs  and more than 21 000 new companies. 
Studies performed in 2005 on a couple of the programmes indicate that the majority 
of these jobs and companies are still there a year after the projects ended. 
Annual Review meeting  
The Annual Review meeting between the Commission and the Swedish authorities 
and the managing authorities for Objectiv es 1 and 2 was held in Brussels on 
11 October 2007. The meeting was devoted to an exchange of information on the continued developmen t of the programmes (and fu rther information on the 
procedures for closure of the programmes). The meeting concluded that the programmes were progressing well a nd that Sweden is well prepared for 
the programme closure exercise. The Co mmission did not reque st any additional 
information or follow-up.  
EN 127   EN Information and publicity 
Being at the end of the programming period,  the focus of the pr ogrammes has shifted 
over the last few years towards measures to present and promote positive results and good examples (for instance, an evaluation has shown that  the positive effects of 
the programme remain more than a year af ter the projects have finished: 100% of 
the new jobs, 90% of the new companies and more than 100% of the new networks are still there). Several of  the programmes have therefore produced brochures with 
key results and examples of best practi ce, such as Objectiv e 2 Södra in 2007.  
24.1. Objective 1 
ERDF and EAGGF-Guidance Section  
Implementation of the Objective 1 programmes is running smoothly. By the end of 
2007, more than 100% of the total 2000-2006  Structural Funds budget had been 
allocated to projects (t aking into account flow-backs into the programme) and 
approximately 93% (83% in 2006) had been paid out to projects. Payment claims 
presented to the Commission by the end of 2007 were 94.5% of the total ERDF 
budget and large enough to avoid any auto matic decommitments. By the end of 
2007, the Commission had paid out 87% of the total ESF budget, more than enough to avoid any automatic decommitments. Execution of the EAGGF was 87.43% of the funds available and no decommitment fo llowing the “n+2” rule was necessary. 
On 27 April 2007, a joint monitoring committ ee meeting was held for both Objective 
1 programmes. Besides reports on the progr ess of the programmes and a discussion 
on lessons to be learnt from the 2000-2006 period, the agenda included brief information of the 2007-2013 programming period in Sweden.  
The 2006 annual implementation reports were  received on 29 June 2007, and, after a 
review, the Commission considered the reports to be acceptable on 29 August 2007. 
The reports were also discussed in the c ontext of the annual review meeting, where 
some proposals for improvements were made, for instance, as regards the link to the 
new integrated guidelines for growth  and employment (adopted in 2005).  
24.2. Objective 2 
All four programmes are progressing very  well. At the end of 2007, approximately 
101.5% (101% in 2006) of the total 2000-2006 budget for ERDF had been allocated and approximately 91% (81% in 2006) had been  paid out to projects. At the end of 
the year, the Commission had paid out between 87% and 95% of the ERDF budget 
for the respective programmes, wh ich was sufficient to avoid any 
automatic decommitment. 
A joint monitoring committee meeting was he ld for all four Ob jective 2 programmes 
on 6 March 2007. Besides reports on the progr ess of the programmes, a discussion 
on lessons to be learnt from the 2000-2006 period, and brief information on the 2007-2013 programming period in Sweden, th e agenda included a presentation by 
Nordregio on the effects of Structural Funds 2000-2006.  
EN 128   EN The annual implementation reports for 2006 were received by the Commission on 
3-5 July 2007 and were accepted on 19 July (Objective 2 Västra) and 21 August 2007 respectively. The reports this year again showed that the programmes were progressing well, but that  the description of  the “5% controls” 
should be further developed and at least co ntain information on the percentage level 
of the controls actually pe rformed, as well as on how th e programme intends to reach 
the 5% target. These issues were later discussed at the Annual Review meeting on 
11 October 2007, where a number of proposals for improvements were made.  
During the year, some of the regions and speci al interest groups actively participated 
in the debate on the future cohesion policy. 
24.3. Objective 3 
There is one Objective 3 programme with total Social Fund support of 
EUR 780 million for the period 2000-2006. More than 100% of the total 2000-2006 Social Fund budget has been allocated to projects (taking into account flow-backs 
into the programme). The allocation is likely to come down to 100% of the 
Social Fund budget. By the end of 2007, th e Commission had paid out 87% of the 
total ESF budget, more than enough to avoid any automatic decommitments. 
Implementation of the Objective 3 programme is progressing well. In total, about 
50 000 projects have been started. Most of the targets set in the programme have 
been reached. For example, the number of part icipants is above th e targets set for all 
priorities while the targets set for people fi nding a job after participation in an action 
have not been fully reached for all measures. The 2006 annual implementation report was received on 6 July 2007 and, after a review, the Commission has accepted the 
updated report. 
24.4. Fisheries outside Objective 1 
The total FIFG allocation to the Swedish fisheries programme outside objective 1 is 
EUR 54 014 745 for the period 2000-2006. Due to the rather low level of 
implementation, and application of the “N+2 ” rule for the fourth consecutive year, a 
decommitment of EUR 333 920 could not be avoided at the end of 2007. All in all, 
the programme has been reduced by EUR 7.5 million. The Swedish authorities have 
put in place certain corrective measures designed to improve 
programme implementation. 
The most important measures planned in li ne with the recent reform of the Common 
Fisheries Policy included sc rapping of vessels, processi ng and marketing, innovative 
measures/pilot projects, fishing port equi pment, protection of aquatic resources, 
collective investments, and renewa l and modernisation of the fleet. 
Two meetings of the monitori ng committee were held in 2007. 
24.5. Community Initiatives  
24.5.1.  Equal 
The Swedish EQUAL programme proceeded without any major difficulties in 2007. 
At the end of the year, the rate of fi nancial execution of the ESF part of the 
EN 129   EN programme was 84%. Automatic decommitment under the “n+2” rule was avoided 
for 2007. 
Much was done to mainstream the results  of the EQUAL programme through various 
national thematic networks and events in 2007. At EU level, the Swedish EQUAL managing authority organised the fo llowing EU-wide communication and 
learning platforms: 
– Media and Diversity learning seminars  and final conference in Paris 
in November 2007 at UNESCO. Its traini ng toolkit for media professionals is 
being widely disseminated. 
– Policy Forum on Asylum seekers (Malmö, June 2007). The conclusions have been 
well received in the context of prepar ation of the European Policy Plan on 
Asylum. 
– Community of Practice on Transnationa lity. This web-based platform is 
operational and serving all ESF MAs. 
– Sweden has actively participated in the steering groups of two other platforms: 
– Policy Forum on Diversity (led by France); 
– Policy Forum on Business Creation and Social Economy (led by Germany). 
The EQUAL team is fully integrated in th e new ESF Council structures in Sweden 
and active within the Eur opean ESF Technical Group. 
24.5.2.  Leader 
In 2001, the Commission approved one Swedish Leader+ programme. In total, 
twelve Local Action Groups were selecte d. Implementation of the programme is 
approaching its end. By the end of 2007, approximately 109% of the total EAGGF-Guidance Section budget for 2000-2006 had been allocated to projects. 
During the seven years of implementation, no automatic decommitment has had to be executed. Payment claims presented to the Commission up to the end of 2007 
amounted to EUR 33 986 695 from the EAGGF-Guidance Section, i.e. 82.46% of the 
programme’s total budget. 
24.5.3.  Urban 
The Göteborg URBAN II programme is the only one in Sweden. The ERDF 
contributes a total of EUR 5.38 million to  his programme, whose total cost amounts 
to EUR 16.08 million. The annual implementation report for 2006 was submitted to the Commission in June 2007. 
The managing authority for the programme is the County Administrative Board in 
Örebro and the functional day-to-day ma nagement is delegated to the URBAN 
Secretariat in Göteborg. The monitoring committee met twice during the year. 
The “n+2” target was met in 2007. 
EN 130   EN Overall comments concerning the 2000-2006 period  
The programme strategy has a coherent approach combining entrepreneurship, 
infrastructure improvement and equal opportunities.  
Implementation is satisfactory. There we re no problems with meeting the yearly 
“n+2” targets of the programme. 
24.6. Closure of programmes 1994 – 1999 
The last programmes from the budget pe riod 1994-1999 were already closed in 2004 .  
EN 131   EN 25. UNITED KINGDOM  
2007–2013 programming period The UK NSRF considers the five factors influencing productivity — competition, 
enterprise, innovation, investment  and skills — in order to  identify areas of relative 
weakness and priority for ac tion. It states as the overa ll economic objective of the 
UK government to raise the rate of sust ainable growth and achieve increasing 
prosperity and a be tter quality of life with economic and employment opportunities 
for all. The focus of the ERDF is on innovation, enterprise and sustainable 
communities. With regard to the ESF, the ob jective across all UK nations will be on 
removing barriers of disadvant aged groups to enter the la bour market as well as 
raising the skills level of the workforce.  
Following discussion on a number of techni cal issues, the UK NSRF was formally 
submitted to the Commission on 27 Apr il 2007 and the Commission adopted a 
decision approving certain elements of the document on 30 July 2007.
12 
The ESF allocation to the UK amounts to EUR 10 613 million (at current prices). 
Almost 27.5% of this amount is allocat ed to the Convergence objective and 
‘phasing out’ regions.  
The UK has submitted the following six ESF Operational Programmes, which reflect 
the two ESF priorities set out in the NSRF: one multi-objective programme for 
England and Gibraltar; two program mes each for Scotland and Wales, 
one per Objective; and one Regional Co mpetitiveness and Employment Programme 
for Northern Ireland. The Commission adopt ed all Programmes between August and 
November 2007. Advance payments for all UK Programmes amounted to almost EUR 89.5 million. 96% of the ESF progra mmes allocation is earmarked for 
Lisbon codes. Programme Monitoring Co mmittees were established following 
adoption of the programmes, and projects are expected to st art in April 2008.  
2000-2006 programming period 
25.1. Objective 1 
The ERDF provided a total of EUR 3981 m illion to Objective 1 programmes in the 
United Kingdom during the programming peri od. FIFG support is available in five 
Objective 1 programmes, for a total of EU R 96 million. The ESF provided a total of 
EUR 1881 million to Objective 1 program mes in the United Kingdom during the 
programming period (including the Northern Ireland BSP programme). 
The total ERDF amount (excluding PEACE II) paid out in 2007 was EUR 578 million. Further claims for payment were made before the end of December 2007 and these will be paid in 2008. The total ESF amount paid out in 2007 (excluding PEACE II) was EUR 233 milli on. For the EAGGF, the total amount 
(excluding PEACE II) paid by the end of  2007 was EUR 271 million (76% of the 
scheduled budget for the 2000-2007 progr amming period, i.e. EUR 357 million). 
Further claims for payment were made before the end of December 2007 and these 
                                                
 
12 C(2007) 3583. 
EN 132   EN will be paid in 2008. With regard to the “n+2” rule, two programmes did not meet 
the 2007 target: Merseyside missed the “n+2” target for the ESF by 
EUR 14.8 million and the Highlands and Isla nds programme missed the “n+2” target 
for the EAGGF-Guidance Section by EUR 247 651. All other programmes for all funds met the “n+2” targets in 2007. 
Two Objective 1 programmes in England had payments suspended for the ERDF 
during 2007 — Merseyside and South Yo rkshire. Following further work, the 
suspensions were lifted by the end of the year.  
Assistance is provided through five Single Programming Documents and two 
Operational Programmes. Three of the Single Programming Documents concern the 
English regions of Cornwall and the Isles of  Scilly, Merseyside and South Yorkshire; 
the other two Single Programming Docu ments concern Wales (West Wales and 
The Valleys) and Scotland (transitional programme for Highlands and Islands). 
Each programme covers four to six prio rity areas, grouped around five main themes: 
support for small and medium-sized busin ess, support for business modernisation, 
community economic regeneration, human resource developmen t and development 
of strategic infrastructure. 
The two Operational Programmes under th e Northern Ireland Community Support 
Framework are funded by all f our Structural Funds. They are: “Building Sustainable 
Prosperity” (BSP), a transitional Objective 1 programme, and the EU Programme for 
Peace and Reconciliation in Northern Irel and and the Border Region of Ireland 
(“PEACE II” programme 2000–2006). The ESF for the BSP OP amounts to 
EUR 285 million.  
PEACE II 
The “PEACE II” programme builds on the experience of the special support 
programme “PEACE I” (1995–1999) and exemp lifies the practical support given by 
the EU to the peace process after the Belf ast Agreement. Initially PEACE II covered 
the period 2000-2004 but in 2004 it was deci ded to provide additional funding and 
extend the programme to 2006, bringing it in line with the other Structural Funds 
programmes in the rest of the European Union. 
For the PEACE II programme, the ERDF provided EUR 368 million. The ESF in 
PEACE amounts to EUR 147 million — another EUR 46 million come from the Irish part of the programme, which brings  the total to amounts to EUR 193 million. 
The total amount paid in 2007 was EUR 93 million. The total ERDF amount paid in 
2006 was EUR 42 million. In the case of the ESF, overall payments for the whole period have reached close to 90% of th e total ESF allocation, i.e. EUR 33 million. 
The total amount paid from the EAGG F-Guidance for the PEACE II Programme 
managed jointly with Ireland was EU R 38 million (88% of the budget of 
EUR 44 million for the years 2000-2004). The “n+2” target for 2007 was met for all funds. 
25.2. Objective 2 
The ERDF provides a total of EUR 4 325 m illion for Objective 2 programmes in the 
United Kingdom, and the ESF a tota l of EUR 528 million. The funds are 
implemented through fourteen Single Pr ogramming Documents. Nine programmes 
EN 133   EN cover the English regions of West Midlands, Yorkshire and the Humber, 
East Midlands, North East of England, North West of  England, East England, 
South East England, South West England and London; three cover the regions of 
South of Scotland, East of Scotland and West ern Scotland; one concerns East Wales; 
and one concerns Gibraltar. Each programme  covers an average of three priority 
areas, grouped around three main themes : developing diverse, dynamic and 
competitive business bases, strategic spatial development, and community 
regeneration and economic and social  development. The UK Objective 2 
programmes were adopted in 2001, meaning th at increasing levels of activity and 
progress were not regist ered until 2003. The total amount paid in 2007 was 
EUR 317 million for the ERDF and EUR 52 million for the ESF. Payment claims submitted in December 2007 will be paid in 2008. With the exception of North West 
of England, all other Programmes met the ERDF “n+2” target in 2007. An amount of 
EUR 4.8 million was decommitted for the ERDF 2005 commitment. The remaining 
thirteen Objective 2 programmes claimed sufficient expenditure to meet the “n+2” target for all funds set by Article  31(2) of Council Regulation 1260/1999. 
Five Objective 2 programmes in England had payments suspended for the ERDF 
during 2007 — North West, North East, York shire and the Humber, West Midlands 
and London. All but one of the suspensions were lifted before the end of the year following further work. ESF payment flows ha ve also been difficult for the Scottish 
programme due to audit issues. 
Overall summary of the 2000-2006 period 
Programme implementation was in line with the relevant strategies at local level 
across the UK, placing the emphasis on economic restructuring and regeneration, the development of key sectors and community economic development. 
Monitoring indicators reveal that all Oper ational Programmes meet their targets and 
achieve their objectives. In addition, eval uations confirm that Structural Funds 
assistance has had a positive impact on the areas of intervention in promoting 
economic convergence and cohesion between  the regions, as well as employment 
and social inclusion. 
25.3. Objective 3 
The level of the expenditure in 2007 amount ed to EUR 709 million, i.e. 86% of the 
ESF allocation.  
The ESF provides a total of EUR 4 948 m illion for Objective 3 programmes in 
Great Britain, implemented through one Community Support Framework and three 
Operational Programmes: England (EUR 4 290 million), Scotland (EUR 520 million) 
and East Wales (EUR 138 million). The total amount paid in 2007 was EUR 709 
million: England (EUR 678 million) and Ea st Wales (EUR 31 million). All three 
programmes met their “n+2” targets for 2007. Payment flows have been difficult for 
the Scottish programme due to audit issues. 
For the Scottish OP two meetings of the Programme Monitoring Committee took 
place, for England three and for Wale s none. All three A nnual Implementation 
Reports were received. They were cons idered admissible and satisfactory.  
EN 134   EN 25.4. Fisheries outside Objective 1 
The UK outside Objective 1 Fisheries progr amme covers most of England, all of 
Scotland except Highlands and Islands a nd a very small part of Wales.  
The total FIFG amount allocated over the period 2000-2006 is EUR 125.5 million, 
almost half of it for Scotland. Implementa tion of the programme has been slow and 
for the fourth consecutive year the program me will have to be reduced due to the 
application of the “n+2” rule. After the last decommitment of approximately EUR 6.3 million from the 2004 tranche,  the size of the programme is 
EUR 93.2 million, all of which is co mmitted. With EUR 4.3 million to be 
decommitted from the 2005 tranche, the original amount of the programme has been decreased from EUR 125.5 million to EUR 88.9 million, i.e. by EUR 36.6 million, or 
30%. Due to the “n+2” rule, the programme  has lost about 25% of its initial 
allocation. The corrective measures put in  place by the UK authorities have had 
little effect. 
Payments made to the programme total a little over EUR 50 million, i.e. 56.33% of 
the payment limit.  
Limited assurance was credited to the functioning of the PA following the 
DG MARE audit mission to England in September 2007.  
25.5. Community Initiatives  
25.5.1.  Equal 
The UK has two EQUAL programmes: Great Br itain (gb) and Northern Ireland (ni).  
The UKgb EQUAL programme continued wi thout any major difficulties in 2007. 
At the end of 2007, the rate of financia l execution of the ESF was 84.86% of the 
total. Automatic decommitment under th e “n+2” rule was avoided for 2007. 
Payments in 2007 amounted to EUR 109 360 080.  
Implementation of the UKni programme continued with no major difficulties 
in 2007. The “n+2” target for 2007 was achieved. In December 2007, 
the Commission adopted a decision amendi ng the financial tables and approving 
the transfer of EUR 600 000 from Priority  4 (Equal Opportunitie s) to Priority 1 
(Employability). At the end of 2007, the rate  of financial execution for the ESF was 
83.24%. Payments in 2007 amounted to EUR 1 974 378. 
25.5.2.  Leader 
The UK has four Leader+ programmes: Engl and, Northern Irela nd, Scotland and 
Wales, with fifty-five Lo cal Action Groups. The total co st of the four programmes 
amounts to EUR 266 million, of which th e EAGGF-Guidance Section contributes 
EUR 115 million.  
By the end of 2007, a total amount of EUR 80 million had been paid (70% of the 
total budget for the 2000-2006 programming period). 
All programmes reached their “n+2” targets. 
EN 135   EN 25.5.3.  Urban 
In the UK the ERDF supports eleven pr ogrammes under the URBAN II initiative. 
These programmes propose innovative deve lopment models for the economic and 
social regeneration of the areas concer ned and finance proj ects to this end. 
Partnership in design, selection and implementa tion of projects is a key feature of the 
URBAN II programmes.  
The total ERDF support allocated to the 11 programmes in  the UK amounts to 
EUR 126.2 million. In 2007, a total of EUR 16.6 million was paid out to URBAN II 
programmes in the UK, with total cumu lative payments reaching EUR 98.3 million 
at year end.  
DG REGIO audits revealed problems with  management and control systems in 
England, leading to the suspension of ERDF payments for several programmes. 
The URBAN II programmes affected by suspension were Stockwell (London), 
Burnley (North West of England), Halifax  (Yorkshire and the Humber), Hetton and 
Murton (North East of England), and Pete rborough (East of England). For the latter 
region, only payments to the URBAN II programmes were suspended, while in the other regions it affected all ERDF progr ammes. Suspension had been lifted by the 
end of 2007.  
In 2007, attention shifted more and more to wards closure and legacy issues, which 
were also the focus of the annual UK Urban II Network meeting that took place in Belfast on 13-14 March 2007. Several evalua tions are to be conducted in 2008, 
which will be the final year of implemen tation. Potential areas of emerging best 
practise relate to strong social involv ement and community engagement, with the 
focus on specific target groups such as young people, women and migrant 
population, and good connections of the programmes with the wider 
development area.  
English Programmes  
Broadly speaking, the English URBAN II progr ammes are better at meeting socially 
related targets than business-relate d ones. The programmes and programme 
complements had to be adjusted to mirror this fact.  
By the second half of 2006, the focus tuned more to the legacy and closure of the 
programmes. The results of this were discussed in the UK Network Event held in North Belfast in 2007 March. 
The Gies for the programmes are the regi onal Government Offices in England and 
the respective Government Department in  other parts of the UK. In most cases, 
however, functional responsibil ity has been delegated to the local authority most 
concerned. 
All 8 programmes submitted receivable annual implementation reports for 2006 
in summer 2007.  
There were regular monitoring comm ittee meetings for each programme.  
All UK programmes met the “n+2” target for 2007. 
EN 136   EN Northern Ireland, Wales and Scotland 
Since the second half of 2006 concentration ha s turned more and more to the legacy 
of the programmes. 
N+2 targets were met for 2007. The annual implementation report for 2006 was 
submitted in summer 2007. 
Overall comments for the 2000-2006 period in the United Kingdom  
The UK URBAN II programmes were very in novative and successful, especially in 
meeting the strategic aims of social incl usion, partnership and concentration on the 
younger generations. Presumably these will have of the strongest impact on URBAN II legacy in the UK.  
The UK urban network and the regularly he ld network events based on URBAN II 
activities are also worth noting. These conn ections are very strong and effective, 
which the programmes want to sustain in th e future, including for best practice and 
exchange of experience in the field of urban development policy. 
For proper closure of the programmes, it is very important to tackle the problems in 
the management and control systems f ound in the UK. To this end, several 
action plans are being prepared by the British Authorities.  
25.6. Closure of the 1994-1999 programming period 
Three ERDF programmes were still par tially open at the end of 2007 due to 
unresolved issues rega rding irregularities. 
Two ESF programmes relating to the MARI/N RITEA irregularities were closed and 
the recoveries were settled during 2007. On ly one programme remained partially 
open and will be handled during the first quarter of 2008. As a follow-up to discussions with OLAF on pending irre gularities, a revised final claim, 
taking account of these outstanding irre gularities reported to OLAF, arrived 
early January 2008. The total outstanding commitment (RAL) was 2.7 million. 
A formal procedure for an Article 24 Co mmission decision to apply a flat rate 
financial correction wa s launched on 23/10/2007.  
All EAGGF programmes have been closed. 
 
EN 137   EN Part 3: List of Major Projects 
Given the fact that the list of major proj ects has not changed since the last annua l report was published, the information incl uded in Part 3 of the 18th 
Annual Report on the Implementation of the St ructural Funds (COM(2007)676) remains valid and can be consulted for further detai ls.