WRITTEN QUESTION E-2242/01

by Mikko Pesälä (ELDR) and Samuli Pohjamo (ELDR) to the Commission

(26 July 2001)

Subject: Duration and development of the EU structural funds' employment policy programmes

Structural fund actions take the form of individual projects. A common problem with employment projects, for example, is that they have only a limited capacity to create permanent jobs. The duration of the projects should be extended in order to obtain lasting results.

Sometimes it is possible by means of national funding to keep projects going for some time and thus to improve the result. Generally, however, local authorities' funding opportunities are limited.

It might therefore be useful for any aid to businesses to come with an employment requirement attached.

Even though the implementation of structural fund actions is the responsibility of the Member State, the Commission ought to take up a position on this matter.

What does the Commission propose to do to improve the results of projects, inter alia from the point of view of employment levels?

Answer given by Mr Barnier on behalf of the Commission

(10 October 2001)

The creation and maintenance of employment in the regions of the Community, both directly and indirectly, is one of the principal aims of the programmes supported by the European Union under the Structural Funds. The conditionality of support on the number jobs created, and the optimum duration of projects, are, as the Honourable Members suggest, important considerations. But it is important that these considerations are adapted to the different fields of intervention under the Structural Funds, respectively, productive investment, infrastructure and training.

One of the principal vehicles for job creation under the Structural Funds is through the support given to productive investment, especially to small and medium-sized enterprises (SMEs). The Commission's evaluation of the impact of the Structural Funds on SMEs, completed in 1999, found that between 1994 and 1999 2,3 million gross jobs were created or 2 million jobs in net terms. Where possible, support is linked to new jobs created. However, such an approach cannot be universally applied, for example, in circumstances where support is granted in order to improving competitiveness of SMEs through encouraging innovation or improving the skills of the workforce.

Support for infrastructure investment is also a major priority under the Structural Funds, especially in the Objective 1 regions (least developed areas). The employment directly associated with this investment is by definition of short duration, linked to the construction phase. At the same time, the existence of transport, telecommunications and energy infrastructures is essential for the long-term competitiveness and for the sustainability of employment in any region.

With regard to training supported under the European Social Fund (ESF), actions are aimed at job creation and to the realisation of the priorities contained in the European Employment Strategy. The Strategy is designed to support greater employability, entrepreneurship, workforce adaptability and equal opportunities as part of general effort to create permanent jobs. In practice, there are considerable variations in the duration of the actions supported by the ESF. These variations, which reflect the pattern of projects selected for support by the partners on the ground, generally aim to take account of the very different needs of social groups concerned.

The Commission remains open to any suggestion, which could help to raise the effectiveness of its efforts under the Structural Funds with regard to employment creation.