A4-0125/95

Resolution on the Fifth Periodic Report on the Social and Economic Situation and Development of the Regions of the Community

The European Parliament,

- having regard to the Fifth Periodic Report on the Social and Economic Situation and Development of the Regions of the Community (COM(94)0322 - C4- 0095/94),

- having regard to Regulation (EEC) No. 2083/93 of 20 July 1993 amending Regulation (EEC) No 4254/88 laying down provisions for implementing Regulation (EEC) No 2052/88 as regards the European Regional Development Fund (( OJ L 193, 31.7.1993, p.34)),

- having regard to Article 8 of Regulation (EEC) No 4254/88 thus amended,

- having regard to the Fourth Periodic Report on the Social and Economic Situation and Development of the Regions of the Community (COM(90)0609 - C3- 0053/91) and its resolution of 12 March 1992 thereon ((OJ C 94, 13.4.1992, p. 309.)),

- having regard to the Commission's White Paper, in particular chapter 10 thereof (COM(93)0700),

- having regard to the fifth action programme on the environment (COM(92)0023),

- having regard to the Commission's draft Europe 2000+ programme (CX-86-94- 117)

- having regard to the report of the Committee on Regional Policy (A4- 0125/95),

1. Congratulates the Commission on the Fifth Periodic Report which, together with the Fourth Periodic Report and its report 'Europe 2000+", gives a comprehensive and detailed description of the economic and social situation of the Union's regions, forming a sufficiently valid basis for formulating structural policies at Union level; is satisfied that each subsequent report has improved substantially in the number of development factors described and analysed;

2. Notes with satisfaction that several recommendations made in the Parliament's report on the Fourth Periodic Report have been taken up by the Commission in the Fifth Periodic Report, namely more detailed descriptions on the demographic situation and anticipated developments, immigration patterns, investment flows and Member States' regional policies;

3. Notes that the important aspects of state subsidies and the informal economy have still not been included and insists that the scale and influence is assessed in the forthcoming report; underlines the need for such an assessment, given the critical role of structural and regional policies as instruments to support and underpin the regions' moves towards EMU;

4. Reminds the Member States that the responsibility for achieving sound economic and social policies remains the task of the Member State governments and the regions; reaffirms that the Community's financial contribution - in the absence of an active contribution by the Member States - can only slowly result in a reduction in economic and social disparities;

5. Regrets that the positive moves towards nominal convergence at national level are not paralleled by real convergence at regional level, and that divergences in cohesion within the regions are not taken sufficiently into account; calls on the Commission and the Member States to ensure complementarity and integration of Community policies to allow regions to improve on their economic and social base, while undertaking to achieve the EMU convergence criteria; calls on the Commission to come forward with proposals and policies to support regional convergence;

6. Considers that it cannot be taken for granted that 'the adoption of a single currency will benefit regional development' as the Commission seems to believe and that such benefits will depend in large measure on establishing a genuine economic, budgetary and fiscal policy at Union level alongside monetary union;

7. Recognizes the long-term nature of Community regional and structural policy; is also aware that even long-term policies must operate within the given financial constraints;

8. Points out to the Council that, in order to justify the high input of funds, the policy on trans-European networks in the transport sector is resulting in investment in regions where growth is already strong and is therefore reinforcing the concentration of economic activity in those regions, while the opportunities for companies to set up in less developed regions decline;

9. Recalls the report's findings that investment in the educational basis in the less-favoured regions is a vital requirement for the improvement of employment prospects and to boost competitiveness; a larger proportion of public budgets must therefore be earmarked for human resources, to provide support for teaching, training and research;

10. Considers it equally important to revitalize less-favoured regions by providing incentives for the establishment and improvement of small and medium-sized undertakings;

11. Points to the need to improve education and training systems and promote in- service training with a view to ensuring that skills are constantly upgraded to meet the need to improve competitiveness and keep unemployment under control;

12. Is deeply concerned at the scale of the disparities in research and development (three quarters of all public research contracts, including those financed by the Community, are in the hands of a small number of innovation centres);

13. Calls on the Commission to analyse in greater detail the underlying factors which support competitiveness in the less-favoured regions, with a view to better targeting of structural actions to improve on the regions' competitive strengths; regrets the fact that despite overall improvement in the Community's regions, economic and social disparities between the richest and poorest regions remains wide; recalls that the strengthening of economic and social cohesion remains one of the main pillars of the Treaty of the European Union and is a keystone of the Community's convergence objectives; regrets the fact that widening disparities between and within the regions continues to result in unacceptably high levels of unemployment and underemployment of human resources; calls on the Commission and the Member States to coordinate macroeconomic and Community policies more effectively in order to tackle unemployment in the regions and, in the light of the White Paper's analysis, to review the use of macroeconomic mechanisms and Community policies to determine to what extent they are justified in terms of their effectiveness in reducing unemployment and to take account of the rise in unemployment among women by means of special accompanying measures;

14. Calls on the Commission in a forthcoming assessment to analyse the job creation impact of structural fund actions, as far as possible providing statistics and information by region;

15. Calls on the Commission to give more thorough consideration to investigating, identifying and analysing those factors which have an adverse impact on and tend to widen the disparities in certain regions of the Community despite the heavy input of resources under the Community's regional and structural policies;

16. Calls on the Commission to undertake a more detailed analysis of the comparative performance rates of the regions in comparable socio-economic situations, to assess the contribution of Community structural policies to performance and to bring forward recommendations for future Structural Fund actions;

17. Calls on the Commission to cover in its next periodic report specific problems (peripheral location, regional and social impact of the crisis in the maritime industries such as shipbuilding, the fisheries sector, etc.), new issues (the economic role of seaports and coastal shipping, maritime environmental protection, renewable sources of energy) and the prospects for development facing European coastal regions so that a consistent effort can be made in future in the context of European regional policy on behalf of these often severely deprived and peripheral regions of the European Union;

18. Regrets the fact that inspections have revealed various irregularities in the implementation of the Funds;

19. Notes with concern that in some cases the regional policies pursued in the Member States by central or regional government may not complement or reinforce Community regional policy actions; calls on the Member States and the Commission to improve coordination of their respective instruments; calls on the Commission to take appropriate action to ensure that Member States fulfil their obligations to achieve economic and social cohesion;

20. Considers that, in analysing the problems of the coastal regions, the Commission should in future also make a detailed analysis, similar to the report's consideration of particular sectors of the economy on a geographical basis (which covers the automobile sector, the aerospace industry, textiles and clothing and the defence industry), of the regional significance of the fisheries sector and other maritime sectors of the economy (shipbuilding, ports, coastal shipping) in those regions and identify possible areas in which regional policy could help develop their inherent economic potential;

21. Reminds the Member States and the Commission of the important role local and regional authorities play in the reduction of economic and social disparities, therefore reinforcing the need to involve local authorities and regions in the planning and implementation of regional policy actions; recalls that application of the principle of subsidiarity requires transparency and participation and, therefore, closer involvement of both sides of industry and of local and regional authorities in planning activities;

22. Calls on the Commission to undertake an assessment of Member States' domestic and structural financial interventions in regions where Community Structural Fund actions have been allocated and to strengthen controls and penalties for the improper use of funds by Member States; calls on the Member States to ensure that financial or policy intervention in eligible regions reinforce and underpin the goal of economic and social cohesion, particularly where actions are seen to be to the detriment of economic and social cohesion; Member States should consider structural fund measures and objectives when drawing up their plans for eligible regions;

23. Calls on the Commission to explore the possibilities of identifying and defining more comparable 'socio-economic regions¨ (possibly including most elements used for defining 'travel-to-work areas¨) with a view to more precisely formulating targeted structural policies;

24. Calls on the Commission, in anticipation of future reform of the Structural Funds, to undertake a study of the eligibility criteria of the Structural Funds, with a view to ensuring a higher degree of effectiveness and a noticeable concentration of funds;

25. Reminds the Member States and the Commission of their commitment to the structural fund regulations to ensure equal opportunities and of the need for priority action to benefit disadvantaged and weaker regions and communities;

26. Calls on the Commission and Member States to prevent any misuse or misappropriation of structural funds, particularly in the light of the Commission's current investigation into the payment of ERDF monies to privatised utilities; calls on the Commission to ensure the stringent and rigorous application of the regulations and where necessary amend regulations to prevent the improper use of funds;

27. Calls on the Commission to examine the impact of a future enlargement of the Union on structural fund policies; more specifically asks the Commission to prepare urgently a detailed analysis of the budgetary implications of a future enlargement, along the lines of the CAP survey, and an evaluation of the necessary budgetary redistribution measures to ensure the achievement of the goal of economic and social cohesion within the framework of the acquis communautaire and in a spirit of solidarity; moreover, efforts should be made to ensure that available funds are put to optimal use;

28. Instructs its President to forward this resolution to the Council and the Commission.