IPWPHV 
COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 20.11.1996 
COM(96) 512 final 
COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL, THE EUROPEAN PARLIAMENT, 
THE ECONOMIC AND SOCIAL COMMITTEE 
AND THE COMMITTEE OF THE REGIONS 
COHESION POLICY AND CULTURE 
A contribution to employment 

I. INTRODUCTION 
The diversity of cultural heritage in Europe is one of its most valuable assets. It forms a 
major part of the continent's identity. As yet, however, the full potential of this asset 
remains underexploited, as do opportunities for further innovation. The Commission's 
White Paper on "Growth, Competitiveness and Employment" identified Culture as one 
sector of future employment. In its Communication on "Community Structural Assistance 
and Employment"1 the Commission has offered a frame of reference for job intensive 
investment assisted by the Structural Funds. 
The growing importance of culture is closely linked to recent economic development 
trends. Firstly, the expansion of culture is related to the evolution of societies away from 
traditional industries towards the service sector. Secondly, changes in lifestyle (e.g. 
increased personal mobility) and growing leisure time create more demand for leisure 
activities, including culture. Both trends tend to encourage the economically viable 
aspects of culture. 
The cultural sector is characterised by growing close and varied interrelations between 
cultural life (public cultural and socio-cultural institutions: theatres, museums, arts 
centres, historical urban/rural sites, arts and music schools etc.) and the cultural economy 
(music, arts, literature and books, film television and video-production; photography, 
design, visual and entertainment arts, architecture, crafts and trade, protection of historical 
monuments, tourism). 
In this context culture can contribute significantly to employment. Cultural products and 
industries offer opportunities for job creation, adding significantly to the effects of more 
"classical" measures such as the preservation or development of cultural heritage. Culture 
is not merely a public occupation creating extra costs but also an increasingly important 
part of the private economy with considerable growth potential, fostering creative, 
innovative and productive effects for regional 'and local economies. For example, culture 
contributes significantly to content and applications development which is one of the key 
elements of competitiveness in the Information Society. 
Art. 130a of the Treaty on European Union provides that the Community shall promote 
actions strengthening economic and social cohesion. Given the conditions defined below, 
cultural actions can fall under the scope of this provision. Moreover, Art. 128 of the 
Treaty states that the Community shall take cultural aspects into account in its other 
policies. 
1 COM (%) 109 final of 20 March 1996 
A comprehensive definition of culture in its whole variety is very difficult. Art. 128(2) of 
the Treaty provides for a Community role (coordination, support or complementing of 
Member States' actions) in the areas of improvement of knowledge and dissemination of 
the culture and history of European peoples, conservation and safeguarding of cultural 
heritage of European significance, non-commercial cultural exchange, as well as artistic 
and literary creation (including the audio-visual sector). 
The Structural Funds Regulations do not specifically mention culture but offer some scope 
for assistance to cultural measures in the context of 
a) productive investment to permit the creation or maintenance of permanent jobs (Art. 
la ERDF regulation) 
b) investment in infrastructure (Art. lb ERDF regulation) 
c) the development of endogenous potential in the regions by measures which encourage 
and support local development initiatives (Art. lc ERDF regulation) 
\ 
d) training and employment schemes in the growing tourism and leisure sector, as well 
as in the arts sector (Art. 1 ESF regulation) 
e) the encouragement of tourist and crafts investment (including improvement of 
agricultural property); in Objective 1 also village renovation and protection of rural 
heritage if not covered by the ERDF (Art. 5 EAGGF regulation) 
In addition, there is further scope for innovative pilot projects especially enabling co­
operation and exchange of experience between regions or local entities 
(Art. 10 ERDF, Art. 6 ESF, Art. 8 EAGGF, Art. 4 FIFG). 
This Communication deals with culture only to the extent that it is linked to social and 
economic cohesion and regional development as assisted by the Structural Funds. The 
document should be seen in the context of the Commission's general aim of identifying 
those areas with still under-utilised employment potential within Structural Funds 
operations. The aim is to provide a basis for discussion of the scope for assistance to 
culture by the Structural Funds within the present regulatory framework. 
IL CULTURE AND REGIONAL DEVELOPMENT 
Culture is linked to regional development and the notion of economic and social cohesion. 
Indeed, culture in its complexity expresses regional or local identity and the region's 
endogenous potential. Cultural activities are in particular an important characteristic of 
European cities. It is, therefore, essential to integrate the assistance to culture by the 
Structural Funds into the Community's developing urban policy. At the same time regional 
or local culture is constantly influenced and modified by interregional or international 
influences. The Commission's new call for proposals for interregional cultural co­
operation by regional and local authorities (1995-99)2 has explicitly acknowledged that 
link. 
Under the present regulations, cultural activities are only eligible for funding by the 
Structural Funds if they are linked to regional or local development; this means that they 
should contribute to sustainable employment and form an integral part of local or regional 
development strategies. 
Culture is of threefold importance for regional development. Firstly, culture is a major 
source of employment; activities related to the cultural heritage as well as cultural 
products and industries create jobs directly and indirectly. Secondly, culture is an 
increasingly important location factor for further investment as it contributes to the image 
and attractiveness of a region. Culture can be an important factor in regenerating deprived 
urban or rural areas. Thirdly, culture can play a positive role in promoting social 
integration and thus contribute to social cohesion. 
/. The employ ment potential of culture 
There is still a lack of knowledge about the link between culture and regional employment 
creation. European-wide studies or figures are not available yet. Firstly, the cultural sector 
is not homogenous and contained within different categories of existing statistics. 
Secondly, variations of definitions and statistical classifications of culture between the 
Member States are enormous. 
2(C(95)253/11), OJ C 253 of 29.9.95. 
Despite the lack of statistical information available, some general trends are discernible^ 
The importance of culture for economic development and job creation has already been 
mentioned in the Commission's document on Local Development and Employment 
Initiatives3. Cultural projects are often directly or indirectly linked to the promotion of 
tourism. However, apart from tourism, the cultural sector contributes in various other 
ways, directly or indirectly, to employment and regional development. 
A central factor for increasing the effectiveness of cultural action on employment is 
appropriate investment in the marketing of the location and of the cultural projects 
assisted as well as the improvement of related tourist services. Tourism and culture are of 
mutual benefit to each other and can, if supported accordingly, increase the employment 
effect of Structural Funds assistance. In addition, relevant accommodation can be an 
important factor. 
Development of culture and tourism in rural areas 
In Viistra Sverige (Sweden) the Objective 5b programme for the period 1995 to 1999 
allocates 20% of the Structural Funds contribution to a specific priority "tourism and 
culture ". Amongst other aspects the priority aims at the preparation of a market 
atialysis, the development of an inventory of the area's cultural resources as well as 
investment in tourist facilities such as visitors centres, accomodation, museums and other 
cultural institutions. It is estimated that the measure Mill directly and indirectly create 
approximately 100 new jobs. 
a) Direct employment effects 
Culture contributes directly to employment by the creation of new enterprises, in 
particular SMEs. Moreover, training and education in the area of culture enhance the 
employment potential in the region. The creation of new skills and professions related 
to culture adds further new job opportunities. Co-operatives, associations and 
foundations which often work with socially excluded or unemployed people play a 
major role in this. In particular, the expansion of cultural products and industries 
linked to the changing way of life is creating an increasingly important employment 
potential, for example in those sectors related to multi-media and the information 
society 
3SEC(95)564 of March 1995 
Support for cultural and media industries 
Several Objective 2 programmes in the United Kingdom for the period 1994 to 1996 
provide for a specific measure assisting cultural industries. The designation wider 
programme priorities varies according.to the regional characteristics ("Cultural and 
producer services", "Tourism, cultural industries and image enhancement" etc.). In 
some of the larger areas (Greater Manchester, Lancashire, Cheshire, North East, 
London, Yorkshire and Humberside) the priorities linked to culture account for 11-17 
per cent of total Structural Fund allocation. 
For example, the Single Programming Document for North West England (Greater 
Manchester, Lancashire, Cheshire) provides under the priority "Tourism and Cultural 
Industries and Image Enhancement" for "Support for cultural and media industries". 
The objectives of the measure are 
the encouragement of long-term growth and employment by a coordinated 
strategy for cultural industries (in particular SMEs) 
the exploitation of growth and employment potential of media-related 
industries (including the information society) 
improving networking and collabora/ion within the cultural industries 
It is estimated that about 700 businesses will be assisted creating or safeguarding 
around 2000 jobs. 
Estimates suggest that approximately 400 MECU under the Structural Funds programmes 
1989-1993 went directly to the cultural sector. However, due to the programme approach 
any figures have to be handled with caution. As cultural action is often hidden under 
various other measures, there are no precise figures available. Moreover, the seemingly 
low quantitative contribution to culture by the.Structural Funds has to be seen in relation 
to its qualitative impact. Being quantitatively significantly less costly than investment 
required by infrastructure, support for culture can contribute as significantly as the latter 
to the improvement of local or regional attractiveness. 
Conservation of historic buildings 
Between 1986 and 1992 the Integrated Mediterranean Programme (IMP) for Crete 
supported with the participation of the ERDF the renovation of the historic centres of 
Chania and Rethimnon (Greece). The Community contributed 4.9 MECU to the total 
cost of 7 MECU. The measures include the securing and refurbishment of historic 
buildings and monuments as well as improving their environment and access. The 
scheme is an example for the combination of preservation of architectural heritage with 
environmental improvement resulting in a considerable increase in the attractiveness of 
the locations for tourists. 
Within the Community Support Framework for Italy 1989 to 1993 the ERDF contributed 
to the restoration of the Castle of Lagopesole in Avigliano (region of Basilicata in 
Italy).The project is a good example of the combination of preserving cultural heritage 
with commercial use, cultural research as well as environmental protection. Firstly, the 
refurbished castle will accommodate the Frederician Institute of the National Council for 
Research, charged with the restoration and re-utilisation of historic monuments in the 
Mezzogiorno as well as environmental monitoring. Secondly, the building will house the 
national centre for the safeguarding of forests. Thirdly, the co-operative of the castle 
based in the renovated building organises guided lours, conferences, exhibitions, music 
and theatre events. A restaurant for visitors is managed by the same co-operative. 
b) Indirect employment effects and the image factor of culture - improving the 
quality of locations 
The borderline between direct and indirect employment effects is not fixed: in the long 
run, direct effects are often complemented by additional indirect effects. A good example 
in this context is start-up assistance to theatre or concert halls, as well as museums. 
The effects of cultural attractions go far beyond simply attracting additional tourists. 
Amongst other aspects, the creation or maintenance of SMEs related to the cultural sector 
(support and assistance services, suppliers, construction firms, training centres, booking 
services) offers increasingly important potential for the creation of employment. 
The importance of the indirect effects of culture and the role of culture in improving the 
image and attractiveness of a region or location are still underestimated. Cultural life is 
increasingly part of the environment which attracts investment, especially in modern and 
innovative sectors. In an increasingly mobile world, decision makers (i.e. on locations for 
investment) take account of location assets such as the cultural or natural environment 
when deciding between competing locations (decisions related to the choice of working 
and living places are very often closely linked). 
2, Culture, local development initiatives and sustainable development 
Cultural measures are most effective where they form part of a strategic concept for 
sustainable development. Economic development, social cohesion, environmental 
protection and cultural action are interrelated and not necessarily opposed to each other. 
Culture, sustainable development and industrial conversion 
An exemplary project for the integration of culture into a strategy of sustainable 
development is the "Zechenbahn Ruhrgehiet" (Germany). Within the framework of 
RECHAR II (1994-1997) the Structural Funds will assist the renovation of a disused 
network ofraihvays linking coalmines and steelworks . An important part of the project 
is the renovation of old stations and buildings along the network, reflecting the regional 
heritage of industrial architecture. The integration of the preservation of industrial 
heritage into a major scheme of tourism and urban development (including simultaneous 
recycling of disused industrial sites) while improving the regional image, attracting 
visitors and creating employment, illustrates how culture can be included in local 
development strategies. 
This is most evident at the local level where often very specific conditions are important 
for the success of any development strategies (i.e. "local software": local innovation and 
business culture, community organisation, technical skills, specific architecture); local 
development initiatives are therefore a central tool for the "capitalisation" of cultural 
assets. Culture can, for example, be a valuable part of urban development concepts as its 
infrastructural aspects improve physical attractiveness and local quality of life as well as 
the location image while productive investment in cultural business creates long-term 
employment. 
Cultural training and urban regeneration 
Another remarkable example for the inclusion of culture into an urban redevelopment 
project is the revitalisation of the historic centre of Marseille by the "Cité de là 
Musique" in the city's Belsunce district. The project (total cost 10 MECU) has received 
4 MECU from the ERDF as an Urban Pilot Project under Article 10 of the ERDF 
regulation. The focus of the project is on musical training aimed at students, pupils, 
business people, workers and residents. It is based on a cultural policy concept 
concerned with multi-cultural music, creativity, visual presentation and concerts offering 
the most deprived inhabitants of the quarter -young unemployed immigrants- a sense of 
direction. This should enable them to create an identity and to draw up plans for their 
future as well as to develop communication between the inhabitants of the quarter and 
those living elsewhere in the city and thus fostering greater openness, cultural and social 
inclusion. 
Moreover, cultural activities often encourage people, whether insufficiently trained or 
disabled and threatened with exclusion from the labour market, to make an effort for 
being economically and socially reintegrated^ 
Culture, social integration, training and tourism 
In Kolding (Denmark) a group of young people excluded from the labour market 
tranformed an old Russian submarine into a tourist attraction. The project was 
supported by the municipal authorities with assistance (40%) from the ESF (Objective 3) 
and combined practical and theoretical experience. After a basic course (history, 
languages, working as tourist guide) the participants could choose from a number of 
training courses (electronics, marketing, meta} working) and practical work (publishing, 
communications, setting up a submarine museum etc.). During the first three years 110 
people participated and 69 of them have found work or are attending training courses. 
In rural areas, products and activities are often closely linked to the cultural origins of the 
region. Specific manifestations of this type of cultural heritage are for example wine 
festivals linked to the grape harvest, traditions of local bread making as well as special 
forms of the transhumance economy in Alpine regions. While offering the potential for 
regional development and tourism, they reinforce the identification of the population with 
their location. In the framework of the LEADER-initiative, for example, numerous 
projects at local level are related to cultural aspects. They contribute to the promotion of 
regional identity, the valorisation of cultural heritage, the creation of permanent cultural 
infrastructure (eco-museums, culture centres) as well as the organisation of specific 
cultural activities (festivals, travelling cinemas). 
Cultural activities are most effective when they profit from the region's endogenous 
potential. Conversely, assistance to cultural products and industries contributes to the 
strengthening of regional endogenous potential. Culture related businesses generally 
depend to a large extent on local or regional supplier- and customer-networks and, 
therefore, are attached more closely to regions or locations than other forms of productive 
investment. Moreover, most cultural industries are relatively labour intensive and thus 
contribute significantly to employment. Cultural investment (cultural industries as well as 
cultural infrastructure including cultural heritage) improves the region's competitive 
situation against other rival locations and constitutes a particularly valuable investment in 
regional or local performance. 
Cultural industries and heritage as an integral part of a local development initiative 
An outstanding example for the revitalisation of a derelict inner-city district through the 
development of facilities which provide support for the growth of SMEs in the cultural 
sector is the Temple Bar project in Dublin. The project is exemplary for the integration 
of culture into a comprehensive local development strategy consisting of various aspects 
such as residential property, environment, retail, restaurants and hotels as well as 
marketing. 
The long-term project has involved the creation of various cultural centres (the Irish 
Film Centre, artists' studios, art galleries, exhibition spaces, a Viking museum, a 
jewellery design centre, a children's theatre etc.). Frequent festivals are held in the area. 
Over the four years period to December 1995, 120 MECU of public money (EU and 
national) has reinforced 70 MECU of private investment, 1200 jobs have been created in 
the cultural and services sectors, 72 new businesses have located in Temple Bar, and 150 
people have been trained in the cultural and environmental fields. Temple Bar is -now 
considered to be the third most popular destination for tourists in Dublin. 
A cautious inclusion of culture in the formulation of tourist or economic development 
strategies rather than the building of "new attractions" encompasses a sustainable 
approach towards local or regional development. 
Combine.d with conventional types of mass-tourism (i.e. along the coastlines or in skiing 
resorts) culture can contribute to alternative, more dispersed and thus more sustainable 
forms of tourism. In addition culture may even out seasonal peaks or troughs and thus 
contribute to additional employment. 
10 
Conservation of archaeological sites and non-seasonal tourism 
In the north-western part of Sicily the ERDF contributed under the multifund regional 
programme for Sicily to the excavation of the city ofSegesta. The assistance of 3 MECU 
by the ERDF financed considerable parts of the whole scheme, including the uncovering 
of the Agora, the old city wall, as well as remains of an old Arabic city and a later 
Norman settlement. The complex attracts many tourists at all seasons and gives an 
example of the Structural Funds' contribution towards strengthening non-seasonal 
tourism and permanent culture related employment. Moreover, in spring and summer 
various cultural events (theatre, concerts) in the old Greek theatre enhance local 
attractiveness. 
3. Interregional/international exchange of culture - a special role for the Community 
While the integration of cultural projects into local or regional development backgrounds 
is vital, the exchange of experience between locations of different cultural situations can 
be very valuable for innovation. The transfer of knowledge can be an important tool to 
enable local or regional communities to make best use of their cultural assets (e.g. 
marketing) rather than delegating this task to consultants outside the region. 
The Commission plays a special role in this context to enable the necessary contacts. 
Various projects of cross border cultural activities have in the past been funded by the 
Structural Funds programmes. The Commission's call for proposals for interregional co­
operation in the field of culture under Article 10 ERDF regulation, in particular, addresses 
this issue and provides until 1999 for co-operation in the areas of 
- historical and architectural heritage 
- industrial and technological heritage 
- crafts heritage 
H 
The scheme is designed to 
- foster an integrated approach to development by mobilising regional and local actors 
in the fields of politics and administration, in the public and private sector and non­
profit making associations; 
- promote exchanges of experience and know-how in the cultural sphere between 
regional and local authorities with a view to contributing to Community cohesion; 
- promote the use of new information and communication technologies. 
Out of 228 projects eligible, the Commission has chosen 33 projects which put emphasis 
on the dimensions of interregional cooperation and local development. The projects are in 
particular aimed at innovative approaches in the above areas. 
Linking interregional cooperation with culture and modern technology 
Under the leadership of Antwerp the regions and cities of Uusimaa (FIN), Palermo 
(IT),Tuscany (IT), Porto (POR), and Newcastle (UK) will create a virtual European 
museum on historical heritage via Internet, aimed amongst others at fostering tourism 
development. The ERDF will contribute ECU 600.000 to (he project's total cost of 1.165 
million ECU. 
In the context of local initiatives in rural areas, cultural aspects are an integral part of 
Community wide interregional networking under the LEADER Community Initiative. The 
network enables contacts between local action groups and discussion amongst them on 
subjects such as regional identity or marketing of specific regional products. Also, the 
development of transnational projects such as the Celtic Route, resulting from cooperation 
between LEADER groups in France in the United Kingdom, are supported. 
IILLIMITATIONS AND REMAINING POTENTIAL: PERSPECTIVES 
FOk THE FUTURE 
Compared with other explicit assistance to culture by the Community, the Structural 
Funds are already the largest financial contributor to projects directly and indirectly linked 
to culture. Unused potential remains for assistance to cultural actions even within the 
limitations of the current regulations. 
As the least favoured regions of the Community present a high concentration of cultural 
potential, assistance to culture-related projects in these regions by the Structural Funds 
offers additional ways to strengthen their underperforming economies. The integration of 
a cultural dimension in tourism development strategies offers further opportunities for 
alternative and more dispersed sustainable forms of tourism, and hence contributes to 
additional employment. 
12 
As cultural life is increasingly recognised as an important factor for the image and 
attractiveness of a region for potential investors, the cultural sector offers new 
opportunities to cope with industrial decline. Cultural industries and products carry a 
considerable growth potential and thus contribute to long-term employment. Integrated 
into urban development concepts, culture related business can add creative and innovative 
aspects to urban regeneration. The exploitation of industrial and technological heritage in 
these areas can also contribute to alternative employment creation. 
In rural areas the exploitation of cultural heritage along with cultural products and 
industries offers new opportunities to cope with problems of depopulation and abandoned 
villages, and adds further perspectives for the attraction of complementary economic 
activities. The integration of culture in rural development strategies is vital to exploit 
traditional activities as assets for regional development and tourism while adding 
significantly to the identification of the rural population with their locality 
/. Assistance to cultural activities on the initiative of the Member States 
The quality of assistance to culture under the Community Support Frameworks and 
Community Initiatives relies on the strategies and ideas of the Member States and thus the 
regions and local communities concerned. A "bottom-up" approach in the design of 
cultural activities corresponds with the close link between culture and the endogenous 
potential of the region. As regards the interregional exchange of experience in the area of 
culture, the emphasis of any action should be put on innovation rather than imitation while 
being based on the endogenous potential of the regions. 
Intensified assistance to culture in this context should be appreciated with respect to its 
potential for employment creation, its link to regional development, and its integration 
into regional and local development initiatives. Culture, apart from being part of the 
regional or national heritage, is also an economic asset. Future action should make more 
use of the increasing employment potential of innovative and creative culture products and 
industries, for example those linked to multi-media and the information society. The 
Commission invites the Member States to propose innovative and commercial measures 
going well beyond the "classical" assistance to the cultural heritage or being linked to 
tourism.. 
In application of Articles 130A and 128 of the Treaty as well as of the subsidiarity 
principle, further reflection could enhance the link between the Structural Funds and 
cultural action. In future, the question of clearer eligibility criteria for development 
projects with a cultural basis will have to be addressed in a flexible manner to take 
account of regional differences in circumstances and needs. Eligibility criteria - and, if 
necessary, the specification of evaluation methods - could help to clarify the contribution 
of the Structural Funds to Culture. 
13 
Furthermore, research towards improving knowledge about the link between cultural 
action, image and regional development, especially jobs (i.e. inputs and outputs of 
"image") should be intensified and an explicit evaluation be carried out of its potential to 
create new employment, which should emphasise cost-effectiveness. 
2. Pilot projects under Article 10 of the ERDF regulation 
Article 10 of the ERDF regulation will continue to give the Commission the opportunity 
to assist those projects which need special guidance or co-ordination at a European level. 
The experience gathered through projects of interregional cultural co-operation, up until 
1999 should, after a period of experimentation, offer further guidance for their application 
and dissemination within the Community Support Frameworks and Community Initiatives. 
Moreover, Article 10 of the ERDF regulation should continue to be used as a tool for 
experimental measures going beyond the scope of the Community Support Frameworks 
and Community Initiatives, such as exchange of experience or innovation in the field of 
culture. 
In this regard, and in the years to come, synergy will be sought between these actions for 
regional development and cooperation and those undertaken in the framework of the 
Community's cultural programmes. It will, in particular, be necessary to strengthen 
common cultural heritage and the latter's role in providing a sense of Union citizenship. 
IV. CONCLUSION 
The increasing importance of culture for regional development has to be seen in the 
context of the restructuring of the economy as well as a result of changed ways of life. In 
this perspective, the cultural sector should be further exploited to enhance and diversify 
the local and regional development potential of both the least favoured regions and those 
suffering from stmctural change 
As culture is often treated in a manner isolated from other factors of development or 
image, it, will be important to address culture as a more integral part of regional and local 
development strategies towards new employment. Moreover, to maximise innovation and 
employment effect, there is scope for further synergie between support to culture by the 
Structural Funds and other related Community programmes (e.g. R&D programmes such 
as multimedia support networks uner ESPRIT, Media II, Info 2000) 
Assistance to culture by the Structural Funds not only enables the preservation and 
development of cultural assets (i.e. the cultural heritage), but also productive investment 
in cultural industries and products. As a rapidly expanding sector of the private economy, 
cultural industries and products provide for a considerable growth potential, for example 
in the sectors linked to media. 
14 
The potential role of the Structural Funds in this context is yet not fully exploited. In view 
of the programme approach as well as the importance of development concepts based on 
endogenous potential, the Member States and regions concerned play a central role in 
giving more effective weight to cultural action under the Structural Funds. 
15 

ISSN 0254-1475 
COM(96) 512 final 
DOCUMENTS 
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Catalogue number : CB-C0-96-599-EN-C 
ISBN 92-78-11738-2 
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