1.Map of the EU’s outermost regions

2.Selected statistics on the outermost regions compared to national and EU averages

NEET- young people neither in employment nor in education and training

Sources: EUROSTAT, INSEE/IEDOM, Azores SREA, Madeira DREM, Canarias ISTAC, DG REGIO calculations (for indicator: growth rate 2000-2019 - real GDP per head)

% share of Erasmus participants among the ORs

% households with broadband access to the internet

3.Selected specific provisions for the outermost regions in recent EU legislation

EU LEGISLATION (*) PROVISIONS

Common Provisions Regulation (CPR) •Co-financing rate 85% for all outermost regions, independently of GDP. •Increased specific additional allocation of EUR 1.514 billion: •- EUR 1.142 billion in ERDF and EUR 372 million in ESF+ (current prices) •Retro-activity: investments under EMFAF compensation envelope and ERDF/ESF+ additional allocation can be financed after completion. •Higher allocation for technical assistance.

European Regional Development Fund (ERDF) •Additional allocation exempted from thematic concentration requirements. •ERDF investments possible for: new airports and their infrastructure; disposal of waste landfill; increasing capacities for residual waste treatment in justified cases; productive investments in enterprises, irrespective of size. •Outermost regions considered less developed regions, independently of their GDP, for thematic concentration requirements.

Interreg (European Territorial Cooperation, ETC) •A specific strand of EUR 280 million for outermost regions cooperation with other regions, countries and territories in their neighbourhood. •Co-financing rate 85% for outermost regions cooperation projects.

Recovery Assistance for Cohesion and the Territories of Europe (REACT-EU) •Dedicated additional amount of EUR 146.4 million (in 2018 constant prices) in addition to a share of respective national envelopes: •- EUR 65.9 million for French outermost regions •- EUR 65.6 million for the Canary Islands •- EUR 14.9 million for Portuguese outermost regions

Just Transition Fund (JTF) •Calls on Member States to consider the specific situation of their outermost regions in the JTF plans and, when including them in their plans, to provide a specific allocation for them.

European Social Fund + (ESF+) •New specific additional allocation of EUR 372 million (current prices) is to be used for the general ESF+ objectives and is exempted from requirements to allocate a specific percentage to thematic areas. •In general, 12.5% of ESF+ funding is to support youth employment, vocational education and training in outermost regions with a rate of young people not in employment in education or training above EU average (all OR).

European Maritime, Fisheries and Aquaculture Fund (EMFAF) •Earmarked budget of EUR 315 million (current prices, same as in 2014-20) for compensation of additional costs and for structural investment: •- EUR 131 million for French outermost regions •- EUR 102 million for Portuguese outermost regions •- EUR 82 million for the Canary Islands •Outermost regions can allocate up to 60% of budget on compensation, up to 70% if justified. •Compensation measures receive 100% EU financing. •Commission reports on implementation of outermost regions related measures.

Programme d'Options Spécifiques à l'Éloignement et l'Insularité – Programme of Options Specifically Relating to Remoteness and Insularity (POSEI) •POSEI: EUR 653 million (in current prices) per year in 2021-27 (same as in 2014-2020) for the supply of essential agricultural products and support to local agricultural production: •- EUR 278.4 million/year for French outermost regions •- EUR 106.2 million/year for Portuguese outermost regions •- EUR 268.4 million/year for the Canary Islands

European Agricultural Fund for Rural Development (EAFRD) ·Co-financing 85% for outermost regions that are less developed regions and 80% for remaining outermost regions. ·Higher sectorial co-financing rates. ·Exemptions from various obligations. ·Member States must assess outermost regions situation in shaping their CAP strategic plans.

L’Instrument Financier pour l’Environnement – Programme for Environment and Climate action (LIFE) •Special regard for projects in geographical areas with specific needs or vulnerabilities: specific environmental challenges; natural constraints; trans-border areas; areas of high natural value or outermost regions. •Support to small projects for protecting outermost regions biodiversity and ecosystems.

Connecting Europe Facility (CEF) •Specific provisions to support transport, energy and digital projects in outermost regions with 70% co-financing. •Award criteria to take into account cross-border dimension, network integration and territorial accessibility projects, including for outermost regions and islands. •Connections to airports, ports, urban nodes are eligible for funding.

Digital Europe Programme (DEP) •Contribute to greater connectivity and better digital skills in the outermost regions. •Balanced geographical distribution including bridging digital divide, outermost regions to be taken into account in award criteria. •Specific entities to cover outermost regions’ needs to be set up locally.

Erasmus+ and European Solidarity Corps •Should take into account outermost regions specificities and seek to increase their participation. •Higher financial support for outermost regions’ participants.

Horizon Europe •Opens ‘Widening Participation and Spreading Excellence’ actions to all outermost regions to share expertise to help them capitalise on their assets. •Covers important topics for the outermost regions: tropical diseases; biodiversity; blue economy; renewable energy; combating climate change.

Asylum, Migration and Integration Fund (AMIF) Integrated Border Management Fund (IBMF) Internal Security Fund (ISF) •Encourages Member States to ensure that national programmes address the specific challenges outermost regions face, in particular situations of migratory pressure.

Neighbourhood, Development and International Cooperation Mechanism (NDICI – Global Europe) •Encourages cooperation between outermost regions and overseas countries and territories; enables joint programming Global Europe/Interreg.

Creative Europe ·Outermost regions’ specificities should be taken into account and their contribution to cultural diversity should be valued.

InvestEU ·Encourages Member States to use part of the national compartment in addressing market failures, e.g. in the outermost regions.

Overseas Countries and Territories (OCT) Decision ·Encourages cooperation between overseas countries and territories, neighbouring African, Caribbean and Pacific (ACP) and/or non-ACP states or territories and the outermost regions, as well as with regional bodies.

EU Space Programme ·The Azores, Madeira and the Canary Islands are to be included in the European Geostationary Navigation Overlay Service. ·Can support adaptations to space ground infrastructure.

Citizens, Equality, Rights and Values Programme ·Seeks to promote greater sense of belonging to the EU in the outermost regions and the Union values.

Single Market Programme ·Should address the specific needs of the outermost regions. ·Can finance phytosanitary programmes for the control of pests in the outermost regions.

Octroi de mer – Dock dues in the French outermost regions ·Reduced taxation for certain locally produced products and categories of products; higher level of taxation for products “imported” from outside the region, including from mainland France; the tax differential between local and “imported” similar products is up to 20% or 30% in Guadeloupe, French Guiana, Martinique, Mayotte and Réunion. ·Local economic operators with an annual turnover below EUR 550 000 are not subject to dock dues.

Tax on Imports and Deliveries of Goods in the Canary Islands (AIEM) ·Reduced taxation for certain locally produced products and categories of products; and higher level of taxation for “imported products” applies with a tax differential of up to 15%. ·Total fiscal advantage resulting from AIEM is limited to EUR 150 million per year with possible exemptions in justifiable cases.

Reduced excise duties on certain alcoholic products in the Portuguese outermost regions ·Certain locally produced alcoholic products benefit from a reduced excise duty of 75% if purchased locally and of 50% if purchased in mainland Portugal.

Reduced rate of indirect taxes on traditional rum in certain French outermost regions ·Traditional rum from Guadeloupe, French Guiana, Martinique and Réunion benefits from a reduced taxation of maximum 50% (both excise duties and tax contribution on alcoholic beverages) when purchased in mainland France. ·Total fiscal advantage is limited to an annual quota of 153 000 hectolitres of pure alcohol.