COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(94) 61 final 
Brussels, 02.03.1994 
Community Initiative concerning Urban Areas (URBAN) 
Aâc 
Explanatory Memorandum 
Community Initiative concerning Urban Areas (URBAN) 
1. The Commission has, during recent years, recognised the need to give more attention at 
Community level to the problems of cities. Eighty percent of the Community's 
population live in urban areas. It is thus evident that most Community policies have a 
direct or indirect impact on cities, although the Treaties do not give any mandate to 
develop an urban policy as such. 
In addition the subsidiarity principle indicates that most policies to address urban issues 
are most appropriately carried out by the Member States and cities themselves. The 
Commission could however contribute to the implementation of urban policies developed 
at the national, regional or local level. 
2. Cities have during the period 1989-1993 increasingly benefited from Community actions, 
both in financial and policy terms. A more ambitious and better coordinated approach 
could be expected for the period 1994-1999. 
This approach might be summarised under five headings: 
Continuation and strengthening of the financial support to cities which belong to 
regions or areas which are eligible under the Structural Funds in particular for 
Objectives 1 and 2 areas. 
Further introduction of the urban dimension in the formulation of various 
Community policies. 
Further research on issues linked to urban problems in particular through the new 
Fourth Research Framework Programme . 
A continuing dialogue with cities and their organisations, in particular through the 
newly established Committee of Regions. 
And finally, launching of a new Community initiative for urban areas aiming to 
promote innovative actions which can be used as examples to be diffused in cities 
across the European Union and promotion of networks of exchange of experience 
and cooperation 
3. Cities in objective 1 and 2 regions 
The ERDF and ESF have directed a substantial part of their total expenditure in 
Objective 1 and 2 areas, to cities. In all, 22 out of the 58 cities in the Community with 
over 200000 inhabitants as well as many smaller ones, have been assisted during the 
period 1989-1993. 
A variety of important infrastructure projects have been supported by the ERDF for 
cities in Objective 1 areas. 
Major initiatives of infrastructure and assistance for productive investment and training 
have also been supported by the Structural Funds in the sixty regions of industrial 
restructuring (Objective 2 areas). 
Under the amended Structural Funds regulations more urban areas have been added to 
the list of objective 1 areas: the cities in the New German Lander, and the heavily 
urbanised areas of Merseyside and Hainaut. Certain Member States are beginning to give 
a particular attention to urban issues in their Objective 1 Regional Development Plans 
which have been presented to the Commission. 
For objective 2 areas, a new criterion has been included in the amended regulations 
making it possible to also give support under this objective to urban areas with severe 
problems linked to the regeneration of derelict industrial sites. The new list of Objective 
2 areas for the period 1994-1999, includes many new urban areas such as parts of 
London and Marseilles. 
4. Objectives 3 and 4 
Most of the Social Fund's spending concerned with long term and youth unemployment 
is disbursed in urban areas where these problems are inevitably concentrated. 
In the amended regulations of the Structural Funds two new objectives relevant to urban 
areas have been introduced in the Social Fund, namely to facilitate the integration of 
those threatened with exclusion from the labour market and to facilitate workers' 
adaptation to industrial changes and to changes in production systems. 
5. Pilot Projects 
Beyond the mainstream activities of the Funds the Commission has been also exploring 
innovative ideas in tackling urban problems by supporting Urban Pilot Projects. About 
100 MECU will have been committed, under Article 10 of the ERDF regulation, in the 
period 1989-1993 on 32 Urban Pilot Projects designed to test out new ideas on how to 
handle urban problems. 
./. 
6. Networks of Cooperation 
Cities are also seeking assistance for activities which aim at linkages, exchange of 
information and co-operation between themselves, on issues which directly concern city 
authorities (transport, environment, administration, energy, social issues etc.). The 
Commission has been contributing under the same Article 10 to the financing of 15 
networks between cities in the framework of the RECITE interregional co-operation 
programme. Assistance will continue to be given for pilot projects and networks in cities 
throughout the Union under Article 10 during the 1994-99 period. Assistance is also 
given to cities to co-operate with counterparts in Eastern and Central Europe through the 
ECOS Programme, and in the context of the new Mediterranean policy the co-operation 
with cities in the South Mediterranean is being promoted through the MED-URBS 
programme. 
7. The scope and objectives for a Community Initiative for Urban areas. 
A Community Initiative for urban areas should aim to build upon what has already been 
done through the Structural Funds, to demonstrate ways of safeguarding and 
strengthening the positive trends in the European Union's urban system and to counteract 
its negative elements. 
The European Parliament, various organisations of cities, as well as certain Member 
States have requested that the Commission should put forward proposals for a specific 
Community initiative on Urban areas. The European Parliament proposed a specific 
programme of integrated urban development aiming to stimulate local economic 
development. 
An Urban Community Initiative cannot hope to match in scale what is in effect a major 
issue of contemporary society. It should instead complement the wide range of existing 
activities in urban matters and act as a catalyst in a broad based approach, by 
undertaking key schemes to help deprived urban areas or cities with serious problems 
to achieve a lasting improvement in living standards for their inhabitants. 
It will provide assistance to the responsible authorities in their efforts to change the 
image of the selected urban areas with the improvement of infrastructures and the 
environment, to provide the necessary amenities so as to attract economic activity and 
create confidence to the population living in the areas, and combat social exclusion. 
Programmes to be supported under this initiative would have to be integrated, innovative 
and apt to serve the diffusion of their results to other cities within a national and in 
particular a European context. Such programmes should include as far as possible 
measures linked to all the elements which constitute present urban life: economic 
development, the application of technology, environmental improvement, transport, 
training and education, crime prevention and security, energy efficiency, infrastructures 
and social facilities. 
The design of actions to be supported under this initiative should also be such as to 
encourage wherever appropriate a high leverage of private finance complementary to the 
public funding. 
Target areas could be urban neighbourhoods geographically identifiable; either an 
existing administrative unit such as a borough, a commune or even smaller entities, 
within a densely populated area, with a minimum size of population, with a high level 
of unemployment, with a decayed urban fabric, bad housing conditions and lack of social 
amenities. 
As a general rule such urban areas are found in cities or urban agglomerations with a 
population of more than 100000. There are some 350-400 such cities in the European 
Union. In addition and exceptionally support could also be envisaged for actions in 
medium sized or smaller cities suffering from overall economic decline. 
This initiative will only be able to support a limited number of actions. The number of 
individual programmes that could be supported with a budget of 600 MECU might be 
a maximum of fifty. Such programmes should in principle run for up to four years. A 
limited amount could also be devoted to complementary activities of networking, 
information diffusion, technical assistance and strategic planning. 
Each Member State would send a limited list of proposed urban programmes in 
agreement with the local and other authorities concerned. The final selection would be 
based on the advice of an independent panel of experts brought in by the Commission 
in cooperation with the Member States, using criteria established in advance. 
Notice C (94) to the Member States, laying down 
guidelines for operational programmes 
which Member States are invited to establish in the framework 
of a Community initiative concerning urban areas (URBAN) 
At its meeting on 2nd March 1994, the Commission of the European Communities 
decided to establish a Community initiative concerning urban areas (hereafter called 
URBAN) within the meaning of Article 11 of Regulation (EEC) N° 2082/93 amending 
reg. N° 4253/88 and Article 3 (2) of Regulation (EEC) N° 2083/93 amending reg. N° 
4254/88. 
In the context of URBAN, Community assistance in the form of loans and grants and 
technical assistance is made available for measures and in areas which respect the 
guidelines laid down in this notice, and which are included in operational programmes 
submitted by the Member States and approved by the Commission of the European 
Communities. 
I. Scope and objectives 
3. Some of the Community's most acute problems associated with lack of economic 
opportunity, low incomes and a generally poor quality of life are found in urban areas. 
The growing tensions within European society are evident particularly in the serious 
level of social exclusion in an increasing number of inner city or peripheral urban areas. 
4. Problems are often aggravated by the financial difficulties of many urban local 
authorities who are unable to provide increasingly expensive support services for a less 
affluent population. This leads to the deterioration of the urban fabric, the impossibility 
of renovating or replacing obsolete infrastructures and the disappearance or severe 
reduction of economic activity in the worst affected areas. 
5. Difficult neighbourhoods within cities may be identified geographically. Certain socio­
economic indicators are significantly worse than the average of the city or urban 
agglomeration area. These would include unemployment levels, education attainment, 
the crime rate, standard of housing, the percentage of social-welfare benefit recipients, 
the socio-ethnic mix, environmental decay, deteriorating public transport and poor local \ 
facilities etc. These deprived areas can also be within generally prosperous cities, or in 
cities which are the most prosperous parts of a less developed region. 
6. Urban issues should be tackled in an integrated way, supporting business creation, 
improving infrastructures and the physical environment, providing customised training 
and social amenities. The combined effort of ERDF and ESF will be needed, but it has 
to be complemented by other resources. 
./. 
7. This initiative cannot hope to match in scale what is in effect a major problem of 
contemporary society. It aims instead to act as a catalyst in a broad-based approach, by 
undertaking key schemes to help deprived urban areas achieve a lasting improvement 
in living standards for their inhabitants. 
8. It will provide assistance to the responsible authorities in their efforts to provide the 
necessary amenities so as to attract economic activity and create confidence and security 
for the population living in the areas, integrating them into the economy and the social 
mainstream. 
II. Definition of eligible areas for the purpose of URBAN 
9. Eligible areas for the purpose of the URBAN initiative will include a limited number 
of urban areas within cities and urban agglomerations with a population of more than 
100,000. There are some 350-400 such cities in the European Union. In exceptional 
cases urban areas in smaller cities could be taken into consideration. Only a limited 
number of such cities will be assisted under the initiative. 
10. Target areas could be urban neighbourhoods geographically identifiable; either an 
existing administrative unit such as a borough, a commune or even smaller entities, 
within a densely populated area, with a minimum size of population, with a high level 
of unemployment, with a decayed urban fabric, bad housing conditions and lack of 
social amenities. In addition and exceptionally support could be provided for actions in 
medium sized or smaller cities suffering from overall economic decline. 
11. Priority would be given to urban areas in cities located in objective 1 regions. 
12. The number of individual projects that could be supported by this initiative might be a 
maximum of fifty. As a general rule projects would run up to four years. They should 
have a demonstrative character for other urban areas suffering from similar problems. 
Each Member State would send a limited list of proposed projects, in agreement with 
the local and other authorities concerned. The selection decision of the Commission | 
would be based on the advice of an independent panel of experts brought in by the 
Commission. I 
13. Priority will be given to innovative projects forming part of long term urban integration 
strategies being implemented by the cities concerned. The drafting of plans of this kind 
could be supported, at the request of a Member State, by technical assistance. 
J. 
III. Eligible measures 
14. Community assistance, in the form of loans or grants in aid as appropriate, may be made 
available within the framework of the URBAN initiative, in favour of integrated 
development programmes for a geographically defined and limited part of a city. The 
integrated approach should address in a comprehensive way the economic, social and 
environmental problems of the deprived urban area. The integrated programme should 
comprise a balanced and coherent set of economic development, social integration and 
environmental measures based on local partnership proposals. Priority will be given to 
integrated programmes which are of an innovative character, which have a demonstrable 
added value and help create local employment. 
15. There should be a systematic attempt to add the multiplier effect of public input in 
support of private and collective efforts. The structural funds cannot be involved in all 
areas e.g. housing but can contribute to concerted action by national and city authorities. 
In this context the Funds could support the preparation of overall urban strategies at the 
request of the Member States or the regional or local authorities concerned. 
16. The initiative should also back European networks for mutual cooperation and exchange \ 
of information in sharing experience from schemes that have already proved successful, 
so far as these requirements are not met by cooperation activities assisted under other 
Community initiatives introduced under the structural funds regulations or other 
programmes of the Community. These exchange of experience networks can include I 
cities in regions not currently eligible for ERDF assistance. I 
17. In accordance with the principle of subsidiarity, the measures to be included in an 
integrated programme should be drawn up by the local partnership, taking into account 
the diversity of problems faced by cities. The following list of possible measures that 
could feature in integrated programmes is intended to be illustrative and indicative. It 
comprises a number of types of measures which have been included in the Urban Pilot 
Programme financed under Article 10 of the ERDF Regulation. 
• Launching of new economic activities: 
Provision of workshops; support for business, commerce, cooperatives, mutual | 
associations, and services for SMEs; creation of business centres, technology 
transfer 
Creation of public/private partnerships in particular to manage integrated 
economic development programmes 
Creation of a pool of management and marketing consultants; Customised 
counselling for businessmen; advice to starters. 
./. 
• • Ensuring employment for local peor/e: 
- Customised training scheme* arid language training oriented in particular to the j 
specific needs of mino^nes 
- Training for new^fechnologies, e.g. computer skills needed in the financial 
services sector or computer based production for the commercial arts 
Mobile unifs for employment and training advice 
Work-experience schemes for long term unemployed on local rehabilitation 
projects 
Support for job intensive projects at the local level; | 
Improvement of social, health and security provisions. 
Provision of nursery and crèche facilities 
Improvement of health conditions; drug rehabilitation centres 
Increasing security and preventing criminality, involvement of residents in the | 
supervision of neighbourhoods; improved street lighting; 
Improvement of infrastructures and environmental conditions linked to the above 
measures. 
Renovation of buildings to accommodate new social and economic activities 
Rehabilitation of public spaces including green areas 
Improvement of energy efficiency ' 
Improvement to access to telematic services 
Reclamation of derelict sites 
Provision of cultural, leisure and sports amenities 
- Actions to facilitate the mobility of the local population; g 
Special workshops to give incentives, skills and opportunities to residents for ih^ 
refurbishing, maintenance and improving of security of housing estates ,-
Support in improving the local capacity to solve problems, including exchange 
schemes and the creation of partnerships of the city organisations and actors 
concerned. 
IV. The Community's contribution to the financing of URBAN 
18. The total contribution by the Structural Funds to the URBAN initiative during the 
period 1994-1999 is estimated at 600 MECUs of which 400 MECUs should go to 
Objective 1 areas.. 
19. Where possible and appropriate, operations funded by this initiative should be planned 
and implemented taking into account other actions under the Structural Funds and j 
Community programmes as well as actions supported by grants from the E.F.T.A. 
Cohesion Fund and loans from the European Investment Bank. 
V. Implementation 
20. Member States wishing to benefit from URBAN are invited to present operational 
programmes for urban areas within four months of the date of publication of the 
guidelines. Proposals received after this date need not be taken into consideration by 
the Commission. 
During the preparation of proposals, the Commission will offer on request any 
necessary technical assistance. 
Local and other authorities and the social partners should be involved in the preparation 
and implementation of operational programmes in the manner appropriate to each 
Member State. 
21. All correspondence related to this notice should be addressed to: 
Mr E. Landaburu, 
Di rector-General, 
Directorate-General for Regional Policy, 
Commission of the European Communities, 
200, rue de la Loi, 
B-1049 Bruxelles. 
ISSN 0254-1475 
COM(94) 61 final 
DOCUMENTS 
EN 05 
Catalogue number : CB-CO-94-068-EN-C 
ISBN 92-77-65768-5 
Office for Official Publications of the European Communities 
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