COMMUNICATION FROM THE COMMISSION Community structural assistance and employment
Date: 1996-03-20
Institutions: European Commission
Subjects: Structural Funds, development policy, employment policy, impact study, structural policy

COMMISSION  OF THE  EUROPEAN  COMMUNITIES 

Brussels,  20.03.1996 
COM(96)  109  final 

COMMUNICATION  FROM  THE  COMMISSION 

COMMUNITY  STRUCTURAL ASSISTANCE AND  EMPLOYMENT 

COMMUNITY STRUCTURAL ASSISTANCE AND EMPLOYMENT 

Contents 

Page 

I. 

II. 

Analysis and assessment of the impact of structural assistance 
on employment 
A. 

The structuring work of the Funds is essential for the 
creation of lasting jobs 
An impact on employment which varies depending on 
Objective 
Quantifying the impact 

B. 

C. 

Possible adjustments:  doing more for employment within existing 
programming and doing it better 
A. 
B. 
C. 

Providing the conditions for long-term economic growth 
Increasing the job-intensity of economic growth 
Promoting a more active approach to economic and social 
solidarity, including equal opportunities 
Developing and enriching the partnership in the context of 
structural assistance 

D. 

Conclusions 

Annexes 

3 

3 

8 
12 

15 
15 
18 

24 

26 

29 

COMMUNITY  STRUCTURAL  ASSISTANCE AND  EMPLOYMENT 

BACKGROUND 

The  serious  employment  situation  is  a  central  concern  of  the  European  Union,  where 
the  unemployed  now  number  around  18  million.  This  makes  the  fight  against 
unemployment  and  the  creation  of  new  jobs  a  first  priority  for  the  European 
the  White  Paper  on  "Growth, 
Community  and 
Competitiveness  and  Employment",  the  Essen  European  Council  decided  to  take 
medium-term  measures  in this  field  through  multi-annual  programmes  to be defined  by 
the Member  States. 

its  Member  States.  Following 

In  its  communication  to  the  Council  on  action  to  be  taken  as  a  result  of  the  Essen 
summit,1  the  Commission  stressed  the  need  to  ensure  consistency  between  the  policy 
decided  there  and  the use  to  be  made  of  the  Structural  Funds.  Similarly,  in  its  recent 
communication  on  trends  and  developments  in  employment  systems  in  the  European 
Union  -  the  European  employment  strategy,2  the  Commission  set  out  its  priorities  on 
how  the  Structural  Funds  could  take  account  of  recent  developments  and  prospects  in 
employment  policy.  This  report  was  favourably  received  at  the  Madrid  European 
Council,  which  drew  particular  attention  to  "the  mutually  beneficial  effects  of  greater 
coordination  of the Union's economic and structural policies." 

With  a budget  (including  the  Cohesion  Fund)  of  ECU  170 000  million  at  1995  prices 
for  1994-99,  the  Structural  Funds,  acting  in  the  context  of  economic  and  social 
cohesion,  have  an  important  role  to  play  in  promoting  employment,  principally  in  the 
Member  States  and  regions  where  they  are  concentrated,  through  programming,  the 
main  responsibility  for  which  lies  with  the  Member  States.  They  provide  support  for 
medium-  and  long-term  job-creation  by  improving  the  match  between  physical  and 
human  resources  and  the  operation  of  the  labour  market.  They  also  have  a  short-term 
impact through extra demand  for  goods and services. 

To  offset  persistent  regional  disparities  within  the  Union,  the  structural  policies 
promote  the  balanced  territorial  development  of  the  priority  regions.  The  regional 
disparities  relating  to  employment,  create  too  considerable  tensions  within  the  Union 
with regional unemployment  rates  varying  from  3.4%  to 34.7%, a ratio of  1 to  10 (see 
Annex  I).  In  any  case,  unemployment  statistics  should  be  read  in  the  light  of 
employment  rates  which 
the 
economically  active  population  between  15 and  64  which  is  in  employment),  in  order 
to  reveal  under-employment.  Here  too,  there  are  wide  variations,  with  participation 
rates  ranging  from  51% to  86.5%  (see  Annex  II),  the  lowest  rates  being  mainly  in the 
south of the Union (Northern Greece,  Spain and the Mezzogiorno). 

take  account  of  participation  (the  percentage  of 

COM(95) 74 final of 8 March  1995. 
COM(95) 465 final of 11 October 1995. 

2 

Elsewhere,  structural  policies  are  contributing  to  the  implementation  of  active  labour 
market  policies  promoting  the  integration of young people,  the long-term unemployed 
and those threatened with exclusion and the adjustment  of the labour force  to industrial 
change. 

Through their contribution to promoting employment,  structural  policies can also help 
foster  equal  opportunities  which,  as  several  European  Councils  have  stressed,  are  a 
priority for the Union and its Member States. 

I. 

A. 

ANALYSIS  AND  ASSESSMENT  OF  THE  IMPACT  OF  STRUCTURAL  ASSISTANCE  ON 
EMPLOYMENT 

The  structuring  work  of  the  Funds  is  essential  for  the  creation  of  lasting 
jobs 

1. 

In general terms, structural assistance operates in two ways: 

(a) 

(b) 

the  main  thrust,  on  the  supply  side:  investment  part-financed  by  the 
Structural  Funds  helps  improve  the  economic  performance  of  the 
productive  apparatus  by  increasing  and  adjusting  supplies  of  physical 
and human resources which in due course leads to higher employment; 

secondarily,  on  the  demand  side:  where  they  have  a  direct  impact  on 
income  and  employment  and  substantial  indirect  and  induced  effects 
arising  from  higher  final  demand.  These  also  have  leakage  effects 
outside  the  regions  assisted  which  benefit  mainly  the  more  developed 
areas. 

More generally,  the structural policies may be regarded as one element of the national 
economic  policies  which  they  help  to  part-finance.  A  typical  example  is  the 
"Gemeinschaftsaufgabe"  (joint  scheme) in Germany, which is a national scheme of aid 
for regional purposes. 

Macro-economic impact 

Proportion of investment undertaken by the regions concerned 

In  terms  of  gross  fixed-capital  formation,  the  proportion  of  Community  assistance devoted  to  investment 
(principally  under  the  ER0F)  accounts  for  almost  Vl% of  alt  public  and private  investment  in  Greece, 
between  8%  and 9%  in Ireland  and Portugal and 7%  in the relevant regions Of Spain. These proportions, 
which do  not  at present  include  the Cohesion Fund, give a glimpse of the economic impact of  the Funds. 
These  figures  are calculated  as a proportion of total investment,- both private and public. AS proportions of 
public investment alone, they become substantial, rising to as much as 50%. 

Impact on growth in the beneficiary Member States 

Initial estimates concerning the CSFs adopted suggest that they have a matted effect'on  growth and hence 
on  employment.  In  Portugal  and  Greece»  the  additional  growth  in  G0P  dae to Community  assistance  is 
estimated at 0.5% per year  (plus an additional  1% generated by the national contribution). This means that 
by  1999 GDP in Portugal and Greece will be 3% higher man if there had been no Community transfers. 

The  first  results  of  estimates  for  Spain  and  Ireland  suggest  additional  growth  in  GDP  in  the  regions 
concerned amounting to 0.4%  per year (0*7% if the national contribution is included), which means that in 
1999 GDP will be 2% higher than it would have bee» without assistance, 

Naturally,  the  actual  impact  on  growth  will  depend  to  a  large  extent  on the  general  economic  context, 
comprising both the success of macro-economic policies and developments in the world economy. 

Structural assistance employs a range of tools based on measures of three types: 
support  for 
infrastructure,  support  for  the  productive  sector  and  the 
development of human resources. 

(a) 

Infrastructure stimulates growth andjience employment: 

(i) 

a  better  standard  of  infrastructure  creates  positive  externalities 
for  private  capital  (increased  productivity  and  lower  production 
costs).  This  is  particularly  marked  in  the  least  well-equipped 
Objective  1 regions; 

(ii) 

the  impact  on  employment  is  generally  positive  and  may  be 
broken down into: 

direct  effects  linked  mainly  to  construction.  Such  jobs 
are,  however,  by  their  nature,  temporary  and,  to  some 
extent,  filled from outside the région; 

indirect  effects  related  to  externalities  generated  by  the 
completion  of  infrastructure  and the amount  of  use  made 
of it.  Density of employment is variable. 

Infrastructure 

The major  rail infrastructure  programmes supported by the ERDF in Italy and Greece will directly create or 
safeguard  37 000 and  11 600 jobs respectively. The indirect impact may be estimated at 57 000 jobs in Italy 
and  7  100  in  Greece.  The  programme  for  the  construction  and  equipment  of  15  hospital  centres  in  the 
Spanish  region  of  Castile-Leon  will  help  create  445 jobs  directly.  An  initial  estimate,  probably  on  the 
conservative  side, of the  impact of  infrastructure  financed  by  the Cohesion  Fund in  1993 gives a  figure  of 
40 000 person/years plus 7 500 person/years for the operation of the  infrastructure. 

(b) 

Support for the productive sector 

Aid  schemes  for  firms  should  be distinguished  from  indirect  assistance 
affecting  demand for services: 

(i) 

The impact of direct aid on employment varies depending  on the 
nature  of  the  investment  (productivity,  capacity,  cleaning  up 
pollution,  diversification),  the  type  of  sector  (capital-labour 
coefficient)  and how firm  the commitment to employment  is. Its 
main  limitation  should  also  be  noted:  the  fact  that  such  aid  is 
often  automatic  means  that  the  employment  variable  cannot 
always be taken into account in financing  decisions. In any case, 
the  Structural  Funds  regulations  require  these  aid  schemes  to 
seek to create  or  safeguard  permanent jobs  and  the Commission 
and the Member States are required to check regularly that this is 
being  done.  Furthermore,  a  number  of  direct  aids  appear  to be 
inadequately  targeted  on  growth  sectors  and  benefit  large  firms 
rather  than  the  small  businesses  which  are  often  involved  in 
technological  innovation and job creation while at the same time 
they  are  often  more  concerned  with  physical  investment  than 
non-material investment. 

Investment aid 

There are legal provisions covering this point in Spain while in Germany and the United Kingdom a positive 
impact  on  employment  is  a prime condition of  investment  aid. On the contrary,  investment  aid  schemes  in 
Portugal,  and,  to  a  lesser  extent  in Italy,  are  more  targeted  on firms competitiveness  and  their  impact  on 
employment is therefore  medium term oriented. 

(ii) 

Business  services:  these  non-material  measures  provide  essential 
support for the productive sector. 

They  have  a  wide-ranging  effect  on  employment  by 
increasing 
the  supply  of  non-material  capital  and 
increasing  the  effectiveness  and  external  competitiveness 
of local firms. They may be divided into: 

• 

advisory  and  support  services,  including  financial 
engineering mechanisms; 

• 

services  to  support  innovation,  quality  and  RTD, 
which  are  particularly  vital  in  the  most  outlying 
areas and those with low population densities. 

Even  though  their  direct  effect  on  employment  remains 
relatively  limited  in terms of  individual  economic  activity, 
these  are  often  highly  skilled  jobs  offering  high  added 
value  and  with  substantial  general  potential,  particularly 
as  regards  the  establishment  of  businesses,  the  promotion 
of  new  technologies  and  closer  contacts  between  research 
centres  and businesses. 

Business services 

The goals of the Industry sub-programme  in the CSF for  Portugal  lay particular  stress on the provision of a 
complete range of new services to businesses. 

The  Objective  2  SPDs  in  the  United  Kingdom  contain  specific  measures  to  support  the  establishment  of 
strategic groups of small firms in key sectors at regional level with stress on the development of small firms 
at local level. 

Objective  6  pays  particular  attention  to  the  question  of  support  for  innovation  and  RTD.  In  these  areas, 
Finland  will  devote  about  35%  of  resources  to  programming  of  this  type.  Similarly,  the  introduction  of 
telecommunications  into rural  areas  has enabled  certain  activities  to start up  in isolated  areas  and provided 
them  with  access  to  certain  services  and  training  offering  qualifications  (telecottages  in  the  United 
Kingdom). 

By way of example, since it began in 1984 the Community BIC programme, which offers  integrated  support 
to  those  establishing  small  firms,  has  contributed  to  the  consolidation  of  some  5  600  firms  directly 
generating 27 000 jobs in the Union. 

(c) 

The development  of human  resources 

This  has  a  variety  of  effects  on  competitiveness,  growth  and 
employment.  These can be better understood  if they  are  looked  at  in two 
groups: 

(i) 

trained.  Such  measures 

investment  in  human  resources  through  education  and  training 
provided  that  the  productive  sector  is  able  to  absorb  the  labour 
accordingly 
increase  the  productive 
potential  of  the  human  element,  which  is  acquiring  greater 
importance  in  the  attempts  to  achieve  economic  recovery  and 
establish  a process  of  growth.  The  availability  of a skilled  labour 
force  permits  physical  investment  offering  greater  productivity 
the  dissemination  of  new  knowledge  and 
and 
techniques,  which  may  in turn  increase  the  effectiveness  of  firms 
and make economies  as a whole more competitive. 

facilitates 

Here,  the  approach  adopted  by  the  Structural  Funds  involves 
improving  qualifications  adapted  to  employment  by  modernizing 

the  system  of  education  and  initial  training  and  improving  the 
opportunities  for  training throughout  working  life. 

The  Structural  Funds  also operate to improve  human resources  in 
the  areas  of  research,  science  and  technology  through  advanced 
training  and  the  training  of  managers  and  technicians  in  research 
establishments.  In the medium  and  long  term,  this  potential  helps 
create  new  jobs  and  consolidate  those  exposed  to  international 
competition. 

(ii) 

Active  labour  market  measures  which  operate  both  on the  supply 
of  work,  through  training  measures,  and  on  demand,  through 
measures  to promote  employment. 

Measures  in  this  area  help  offset  rigidities  in  the  labour  market 
by  providing  an appreciable  level  of  support  for  macro-economic 
policies  to  strengthen  the  process  of  growth.  They  also  operate 
directly  on  the  level  of  employment  by  making  the  least  skilled 
section  of  the  population  easier  to  employ.  The  combination  of 
measures  to  subsidize  low  wages  with  those  to  improve  skills 
means  that  the  best  possible  use  can  be  made  of  the  available 
labour  force  and the greater  social cohesion achieved. 

Human resources 

The  CSF  for  Greece  devotes  substantial  financial  resources  to  the  development  and  modernization  of 
systems of education and initial training. The strategy adopted includes the following principal  features: 

at  secondary  level,  attention  is  concentrated  on  the  adaptation  of  curricula,  the  promotion  of 
technical and scientific  subjects and the introduction of computer studies; 

a  new  role  for  vocational  training  and  apprenticeship  is  the  priority  within  the  initial  training 
system; 

in higher  education,  the  main aim is to modernize  the management of universities  and strengthen 
their links with the world of work. 

In  the  area  of  training  to  develop  human  resources,  the  "Knowledge bases"  and  "Vocational  training  and 
employment"  programmes  will  enable  Portugal  to  train  31  200  workers,  4  700  of  whom  will  be  in  the 
research  sector.  These  measures  will  also be of particular  importance  in the  Objective  2  areas  affected  by 
industrial change. 

The urban policy being followed  in a number of Member States places particular stress on the area of aid to 
integration.  In  the  Objective  2  areas  of  France,  structural  assistance  provides  support  for  training  and 
employment  establishments  which  seek  to  centralize  services  offering  information  about  employment  and 
training and guidance facilities  for those who are already unemployed. 

In  1989-93 vocational training absorbed about  11 %  of the total finance for  Objective  5(b) and is expected to 
absorb about  15% in the new period,  so permitting the skills of rural workers to be improved and adapted to 
employment in areas such as tourism and the environment which are new for certain regions. 

B. 

An impact on employment which varies depending on Objective 

The extent of the impact on employment  is a function  of the intensity  and combination 
of assistance, which depend on the light of the initial situation,  the Fund Objective and 
the Member State. 

1. 

The  Objective  1 regions,  which  will  eventually  account  for  70%  of  Structural 
Fund  assistance,  seek  to give priority  to job-creation  principally  by promoting 
growth to reduce gaps in per capita GNP. This explains the great stress laid on 
the  general  modernization  and  upgrading  of  the  productive  sector  in  order  to 
improve  competitiveness  and  on  the  provision  of  a  variety  of  basic 
infrastructure.  In  terms  of  employment,  the  key  feature  underpinning  this 
approach  is the establishment  of an economic base for  sustainable  development 
which  will  create  jobs  over  the  long  term  using,  amongst  other  means, 
increased education, training, research and technological  innovation. 

In  the  short  term,  the  effect  of  this  approach  on  employment  is  less  clear-cut 
since  it  results  in  the  creation  of  temporary  jobs  on  building  sites  while  also 
destroying jobs  in agriculture  and traditional  sectors  through the modernization 
and  restructuring  of  the  economy.  It  is  important  to  note  too  the  contribution 
made  by  active  labour-market  policies  which  seek  to  make  the  labour-force 
more employable. 

Objective 1 

The  development  strategy  of  the CSF  for  Ireland  seeks  to  support  the  exposed  sectors  of  the economy.  In 
the  long  run,  this  will  improve  their  competitiveness  and  productive  capacity  and  so  create  employment. 
Assistance  to agriculture  and the food  industry,  the main employer  in the country,  is designed to  safeguard 
employment  and  raise  productivity  at  the  production  stage  while  increasing  the  number  of  jobs  in  the 
downstream  sectors of processing and marketing. 

In the case of Portugal,  the evolution of the economy will lead to a decrease in the agricultural  workforce  to 
probably  less than  10% by  1999. The programmes part-financed  through the Structural  Funds shall,  among 
other  objectives,  reduce  the negative  impacts  on employment  of this structural  adaptation.  Along  the same 
lines,  while,  according  to the  Ministry  of  Planning,  80 000 jobs  were  created  between  1989  and  1993 as 
direct result of the CSF, total employment remained unchanged at the end of the period,  which suggests that 
an equivalent number of jobs were lost in the sectors undergoing  restructuring. 

In  the  Objective  2  areas,  which  are  defined  on  the  basis  of  criteria  mainly 
concerned with employment, the priority  is the diversification  and revitalization 
of  a declining  industrial  fabric  by  seeking  the  most  immediate  possible  impact 
on  employment.  To  the  list  of  such  areas  should  also  be  added  those  smaller 
industrialized  areas which are eligible under Objective  1 in the United Kingdom 
(Merseyside),  Belgium  (Hainaut)  and  France  (Nord/Pas-de-Calais),  which 
resemble each other closely. 

This means that the instruments used concentrate  on support  for  the productive 
sector  and  the  development  of  human  resources  while  seeking  to  make  the 
speediest possible impact on employment. 

In  providing  support  for  the  productive  sector,  most  of  the  SPDs  give  priority 
to  locally-generated  development  through  job-creation  and  aid  to  job-creating 
investment  in  existing  firms.  This  trend  also  gives  greater  scope  to  the  role  of 
indirect  aid  for  improving  the  business  environment,  as  compared  with  direct 
aid  to  investment. 

Objective, 2 

The trend of redirecting  aid to the productive sector is demonstrated particularly clearly  in the programmes 
for  the United Kingdom,  where the percentage dedicated to support for  small firms has increased  from  10% 
of  total  assistance  in  the  previous  programming  period  to  30%  now.  This  has  also  been  accompanied  by 
increased  part-financing  from  the  private  sector.  A  similar,  although  less  marked,  trend  may  also  be 
observed  in  Germany  (SPDs  for  Saarland  and  North  Rhine-Westphalia)  and  France  (SPD  for  Lorraine, 
which stresses support for  innovation,  and measures to support business incubators  in most SPDs). 

Measures  to  develop  human  resources  are  mainly  designed  to  improve  the 
productive  base  and  business  management,  particularly  in  small  firms.  This 
approach  should  assist  the  diversification  of  the  economy  of  the  region  and 
enable  the  labour  force  to  adapt  to  the  productive  needs  stemming  from  the 
application  of new  technologies. 

More  generally,  and  this  point  is  linked  to  the  previous  one,  the  very 
considerable  reduction  in  finance  for  infrastructure  (including  infrastructure  in 
the  productive  sector)  as  compared  with  the  previous  programming  period 
should  be noted.  There can be no doubt that this improves  the cost  effectiveness 
of the programmes  in employment  terms. 

3. 

In  the  cases  of  Objectives  5  and  6.  the  question  revolves  mainly  around  the 
maintenance  of  activities,  employment  and  population  in  rural  areas,  which 
often  includes  thinly  populated  areas  in  need  of  economic  diversification,  and 
the fisheries  sector. 

It  should  be  noted  that  the  regulations  governing  Objective  5(a).  on  the 
modernization  of agricultural  structures,  apply  equally  throughout  the  European 
Union.  Their  adjustment  in  the  light  of  the  new  rules  governing  the  Structural 
Funds,  which 
territorial 
Objectives  (particularly  as  regards  integration  with  Objective  1)  and  allows 
better  account  to  be  taken  of  new  factors  such  as  the  environment  and  the 
diversification  of activity  in agriculture,  is of recent date. 

links  between  this  Objective  and  the 

improves 

Each  year,  assistance  of  this  type  contributes  to  the  establishment  of  some 
15000  young  farmers,  to  whom  it  provides  grants  for  investments  in  their 
holdings.  Furthermore,  33000  agricultural  holdings  are 
improving  and 
modernizing  their  production  and  working  environment  every  year,  so  enabling 
family  workers  to  be  better  employed,  creating  new  jobs  and  discouraging 
young people  from  leaving  rural areas. 

Compensatory  allowances  are  also  important  because  they  ensure  an  adequate 
income on more than  1 million holdings covering  56%  of the area  of the  Union. 
This  too maintains  the population of rural  areas. 

The  food  industry  is  an  even  more  important  source  of  jobs  than  agriculture 
and,  in certain  sectors,  particularly  those  concerned  with  new  markets  and  new 
consumer  products,  their  number  may  be  increased  by  investment  in  the 
improvement  and processing  of agricultural  and  forestry  products. 

In  the  case  of  Objectée  5(a)  fisheries,  the  tasks  of  the  FIFG  are  to  reduce  the 
fishing  effort  in  terms  of  the  over-exploitation  of  natural  resources  and  to 
support  this  sector,  which  is in a state  of severe  structural  crisis. 

The  first  category  of  assistance  will  inevitably  reduce jobs,  although  this  can be 
offset  by  the  supporting  measures  now  having  been  adopted  by  the  Union. 
These  include  aid  for  national  early  retirement  schemes  and  flat-rate  individual 
permanent  cessation  premiums  for  younger  fishermen.  By  contrast,  the  second 
group  will  increase  employment,  although  it  should  be  stressed  that  their  main 
goal  is to improve  the competitiveness  of the Union's  fishing  industry. 

Objective 5(a)  fisheries 

In the area of processing fisheries products,  for  example,  the FIFG could help create 750 new jobs  in Italy 
and  1 100 in  Germany  by  1999 but  its  main  contribution  will  be  to  safeguarding  existing jobs,  which  are 
seriously  threatened by the crisis in the sector. 

Similar considerations  apply to aquaculture  (1 300 jobs expected to be created in Ireland) and to investment 
to modernize the fleet  and port facilities. 

In any case,  the safeguarding  and creation of jobs are linked to support to the productive  sector.  The Pesca 
Community  Initiative,  by  contrast,  concentrates  on  employment  and  human  resources  in  coastal  areas 
because  it can help maintain activity  levels in such areas,  whether  in fisheries  or elsewhere.  It may  finance 
diversification  measures for firms and vocational retraining to enable fishermen to pursue other occupations, 
such as tourism or aquaculture, or it may finance training courses to improve either vocational  qualifications 
or the general training of sea  fishermen. 

Assistance  to  employment  under  Objective  5(b)  concentrates  mainly  on  the 
diversification  of  activities.  While  in  the  case  of  agricultural  production  in  the 
strict  sens  of  the  term,  this  is  designed  to  safeguard  jobs,  mainly  by  enhanced 
development  of  local  products,  the  bulk  of  jobs  created  have  been  in  other 
activities  and  sectors,  such  as  tourism,  small  businesses,  services  and,  more 
recently,  the environment.  Rural  tourism  is often  of the utmost  importance  since 
its  rapid  expansion  has  resulted  in  the  development  of  a  number  of  related 
activities. 

10 

Objective 5(b) 

Assistance  in  the  area  of  the  environment 
is of  recent  origin  and  is  primarily  directed  towards  reducing 
pollution  from  agriculture  and  the  food  industry  (construction  of treatment  stations  at Trento  in Italy),  the 
purification  of  water  for  some  hundred  municipalities  in  Limousin  (France),  the  development  of  organic 
farming  in  Brittany  (France)  and  the  improvement  of  forested  areas  in  Cantabria  (Spain).  Alongside  this, 
there  is  now  growing  emphasis  on  turning  the  protected  environment  to  economic  use.  An  evaluation  of 
about  twenty  areas  found  1 270  environment-related  initiatives  which  had  created  a  substantial  number  of 
jobs. 

The renovation  and development  of villages also constitutes the first stage of a large number of investments 
which  so far  has  had remarkable  multiplier  effects,  mainly  in the construction  sector  and principally  in the 
new German  Lander.  As can also be seen  in France,  support  for  tourism  forms  an essential  element  in the 
diversification  of Objective  5(b) areas. The achievements  in this field  part-financed  by  the Structural  Funds 
include  the  rapid  development  of  "nature"  tourism  (crossing  the  sands  around  Mont-St-Michel)  and  hiking 
and adventure tourism (Stevenson route). 

Similar  comments  apply  to  Objective  6,  although  its  programmes  are  very 
recent. Since areas under Objective 6 are even more thinly populated than those 
under  Objective  5(b),  expenditure  on  RTD  and  the  new  information  and 
communications technologies is an important factor  in economic  diversification. 

Since their main aim is bring demand into line with supply, and so place people 
in the jobs  available,  those measures under  Objectives  3 and 4 which are most 
oriented  towards  the  labour  market  are,  by  their  nature,  directly  linked  to 
employment.  Assistance under these Objectives applies throughout the Union. 

At  present,  about  8%  of  measures  under  the  Funds  come  under  Objective  3. 
They are concerned  with the integration  of young people (36%), the long-term 
unemployed  (40%), 
those  threatened  with  exclusion  (16%)  and  equal 
opportunities for men and women (5%). 

Objective 3 

Measures  under  Objective  3  are  intended  to  develop  or  consolidate  national  employment  policies  while 
taking account of regional and local needs. Hence, in the German Lander, structural assistance complements 
measures taken under the law to support employment. It is estimated that some 400 000 people benefit  from 
measures receiving  part-finance. 

Because  of  the  very  high  level  of youth  unemployment  in Spain,  structural  assistance  has  concentrated  on 
the  social  and  vocational  integration  of  this  category.  In  accordance  with  the  Youthstart  Community 
Initiative, Community  support backs up national efforts  to increase the proportion of  16-18-year-olds  in  full-
time education. 

About 2% of measures under the Funds come under Objective 4 (the adaptation 
of workers to industrial changes). 

11 

Objective 4 

The main beneficiaries  in France  of assistance under Objective 4  are the least  skilled workers  who  are the 
main  victims  of  industrial  change.  Preventative  measures  also  provide  support  for  prospective  studies  of 
branches,  support  for  advisory  and  diagnostic  services  to  firms  and  some  of  the  tasks  of  the  regional 
observatories of employment and training.  It was also planned that at least 70% of workers benefitting  from 
measures under  Objective  4 should come from firms employing under 500 people,  with particular  attention 
being paid to those employing under 250 people. 

The main aim in Denmark is to improve access to continuing training for employees of small firms in order 
to promote the rotation of employment. 

The  impact  on  employment  of  measures  taken  under  Objectives  3  and  4  can 
only  be  assessed  on  a  case-by-case  basis  and  using  appropriate  methodologies. 
However,  it  may  be  estimated  that  some  11  million  people  will  benefit  from 
such measures  in  1994-99. 

In  general,  assistance  from  the  Structural  Funds  under  Objectives  3  and  4  is 
handicapped  by  the unfavourable  conditions  arising  from  the  weight  of  massive 
long-term  unemployment  and  the  acceleration  of  economic  restructuring,  the 
main  victims  of  which  are  those  least  able  to  compete  on  the  labour  market. 
Structural  measures  prove  particularly  useful  in  these  difficult  circumstances. 
The  programmes  part-financed,  which  are  designed  with  an  eye  to  both  the 
short  and  the  medium  term,  help  strengthen  the  links  between  growth  and job-
creation  and  hence  reduce  the  pressure  on  the  most  disadvantaged  groups. 
Despite  the  modest  resources  available,  this  assistance  also  exerts  a  multiplier 
effect  on national  policies.  Active policies  at the expense  are referred  to passive 
income-support  policies  and  good  practice  enjoys  wider  circulation  through  the 
partnerships  and  networks  set up as a result of this  assistance. 

The  summary  tables  in  Annex  III  illustrate  these  developments  by  showing  by 
Member  States  and  for  all  the  Objectives  the  finance  allocated  to  each  of  the 
main categories  of structural  assistance. 

C. 

Quantifying  the  impact 

The  programming  of  structural  assistance  for  1994-99  drawn  up  through  partnership 
reflects  the  great  importance  attached  to  the  promotion  of  employment  throughout  the 
Union.  Through  its  general  and  rather  indirect  effects, 
it  also  demonstrates  the 
difficulties  inherent  in a firm  commitment  to quantified  employment  objectives. 

1. 

Programmes  often  include  a  lot  of  data  on  employment  which  demonstrate, 
particularly  for  the  assisted  regions,  the  extent  of the concerns  for  this  area  felt 
by those responsible  at national and regional  level. 

However,  the  available  information  tells  us  more  about  the  difficulties  both  of 
maintaining  employment  as  a  target  and  of  estimating  employment  effects  than 
about  the  total  impact  that  can  be  expected.  This  derives  from  a  lack  of 
consensus,  either  at  methodological  or  operational  level,  on  how  to  calculate 
employment  effects.  Thus,  for  example,  in  region  A  a  measure  such  as 

12 

'reclaiming  and  improving  industrial  sites'  might  be  forecast  to  create  30 jobs 
per  million  ecus  invested,  while  in  region  B a  similar  measure  might  anticipate 
300 jobs  per  million ecus. 

The  difference  does  not  necessarily  have  anything  to  do  with  the  efficiency  of 
the  respective  programmes,  but  rather  with  the  types  of  jobs  that  are  being 
counted.  For  example,  in  one  case  only  jobs  involved  in  the  actual  work  of 
clearing  the  site  might  be calculated;  in another,  those  temporary jobs  might  be 
excluded  but all employment  created  by companies  occupying  the  newly  cleared 
zone might be estimated. 

It  is  therefore  necessary  to  appreciate  the  different  ways  in  which  jobs  can  be 
created  by  the  Structural  Funds,  and  also  the  various  ways  in  which  the  total 
might be over-  or under-estimated  (in this regard  it will be necessary  to  develop 
for  the  future  a methodology  for  forecasting  job  creation).  Briefly,  jobs  may  be 
created  by the implementation  of  measures 

the  workforce  directly  involved  in  clearing  the  site,  building  the  road, 
delivering  the training 
as  a  direct  outcome  of  the  measure  e.g.  new  staff  operate  equipment 
purchased  with  financial  assistance,  staffing  of  a  tourist  attraction...; 
as  an  indirect  or  induced  outcome  (jobs  created  by  the  new  purchasing 
power  delivered  by  the  Funds,  new  companies  created  thanks  to  the 
improved  business climate or  skilled  labour  resources). 

The  calculation  of  this  indirect  effect  is  a  most  difficult  exercise  as  it  requires 
an  identification  of  the  impact  of  non-Structural  Fund  related  factors  on  job 
creation. 

For  these  reasons,  and  especially  because  there  is no  standard  methodology,  the 
information  provided 
is  fairly  disparate  and  so  unsuitable  for  systematic 
treatment. 

The  SPDs  for  Objectives  2  and  5(b)  suggests  that  650  000  and  518 000 jobs  respectively  will  be  created 
over the period but these figures should be treated with the greatest caution due to the relative importance of 
the displacement and deadweight effects  in those areas. 

2. 

In  response  to  this  situation,  the  Commission  has  launched  a  series  of  studies 
intended  to lead  to a rapid  improvement  in our understanding  and  calculation  of 
employment  effects. 

The  important  macro-economic  impact  of  the  Union's  structural  transfers, 
particularly  in  those  Member  States  most  fully  covered  by  Objective  1 (E,  EL, 
I,  IRL,  P)  has  a  direct  effect  on  employment.* Where  Objective  1  applies  to 
whole  countries,  or  at  least  to  major  economic  regions,  'top  down'  analyses, 
based  on  the  macroeconomic  relationships  of  the  economy,  are  employed. 
While  subject  to  a  number  of  limitations,  based  particularly  on  the  'static' 
nature  of the relationships  used  as assumptions,  these techniques  can give broad 
brush  estimates  of the employment  and  income effects  of structural  assistance. 

13 

Independent  analyses for  the period  1994-99 suggest that implementation of the CSFs  will create  about  1.2 
million  jobs  (4.1% of  the  active  population)  in  all  the  Objective  1 regions.  In  the  case  of  Portugal,  for 
example, this figure  is  190 000 jobs per year,  for  Spain 220 000 jobs per year,  for Greece 260 000 jobs per 
year  and  for  the new Lander  160 000 jobs per year.  However,  only some of these jobs  will be new,  hence 
the disparities with the estimates provided by the Member States. These do have the advantage of providing 
a uniform  and comparable  assessment  of the impact of Community  assistance on the labour  force  deployed 
in these Member States. 

This  consideration  of  current  programming  shows  where  improvements  can  be 
to  the  Monitoring  Committees,  along  the  lines  of  the 
proposed,  particularly 
Commission's  communication  on  a  European  strategy  for  employment.  Such 
improvements  include adjustment  of both the content of  and procedures  for  assistance 
while respecting  the guidelines already agreed. To achieve this, all available scope for 
manoeuvre (the  "deflator"  effect,  adjustments  within programmes within the powers of 
the  Monitoring  Committees,  etc.)  will  be used  and  attention  paid  to  improving  links 
between macro-economic effects  and the actual areas they  affect. 

14 

II. 

POSSIBLE  ADJUSTMENTS:  DOING  MORE  FOR  EMPLOYMENT  WITHIN  EXISTING 
PROGRAMMING  AND DOING IT BETTER 

The task of the Structural  Funds is to support economic and social cohesion within the 
Union.  The  first  consideration  is  therefore  to  provide  the  conditions  for  strong 
sustainable  growth  which  takes  account  of  increased  international  competition  and the 
growing  pace of  technological  change.  However,  while  such growth  is essential,  it is 
not of  itself  sufficient  to find  a solution to the employment problem:  efforts  must also 
be  made  to  increase  the  employment  content  of  growth.  The  currently  unacceptable 
practice of work sharing reflected  in low activity rates and high unemployment must be 
replaced  by arrangements  which ensure full  participation in work and mobilize the  full 
potential  of  our  economy.  This  will  promote  greater  solidarity  in  the  economy  and 
society and a more active approach to employment. 

The  aim  is  therefore  to  work  within  current  programming  to  seek  adjustments  which 
can  increase  the  impact  on  growth  and  the  impact  of  growth  on  employment.  This 
means concentrating  on using the scope for  manoeuvre  and flexibility  available within 
current programming in order to pursue the following goals: 

A. 

Providing the conditions for long-term economic growth 

1. 

The  first  priority  is  to  ensure  that  due  importance  is  given  to  non-material 
investment,  a  form  of  investment  which  has  become  a  major  source  of 
economic  growth.  The  stress  laid  by  the  Structural  Funds  on  promoting 
research,  development  and  the  organization  of  businesses,  particularly  small 
businesses,  open  to  innovation  and  the  constant  improvement  of  human 
resources  through  education  and  training  represent  a  vital  contribution  to  the 
development and dissemination of new technologies and forms of production. 

(a) 

Investment  in  human  resources  is  a  vital  component  of  non-material 
investment  and  so  should  be  accorded  pride  of  place3.  Current 
circumstances  suggest  that  stress  should  be  placed  on  the  following 
priorities: 

increasing  supply  in order  to  guarantee  all  young  people  access 
to  education  and  initial  training.  The  Structural  Funds  should 
play  an  important  role  here,  particularly  in  the  less-favoured 
areas of the Union; 

fostering  an integrated  education  and training  system  throughout 
working life; 

This has been a permanent approach  in the White Papers on Growth,  Competitiveness, 
Employment,  on Social  Policy  and on the Learning  Society. 

15 

adapting  the  structures  and  content  of  education  and  training  to 
the  needs  generated  by  economic  and  technical  changes.  This 
presupposes  the  adaptation  of  curricula,  the  establishment  of 
links  between  schools  and  the  world  of  work  (apprenticeships, 
stimulating  the  growth  of  an  entrepreneurial  spirit,...)  and 
encouragement  for  training  organized  by  firms; 

encouraging  public  and  private  investment  in  education  and 
training  and  creating  appropriate  structures  to  ensure  that  such 
investment  is  profitable. 

(b) 

These  developments  also  make  improved  business  support  services, 
particularly  for  small  firms,  highly  desirable.  National  and  regional  aid 
schemes  part-financed  by  structural  assistance  could  give  firmer  support 
to  demand  for  quality  services  by  small  firms,  a  category  of  business 
which  has  a large degree  of  flexibility  in  organizing  its production.  Still 
more  important  is  the  need  to  seek  integration  in  providing  support  for 
the offer  of such services. 

local 

in  the  proliferation  at 

While  a  large  number  of  structures  providing  services  for  small 
businesses  have  developed  in  regions,  particularly  over  the  last  ten 
years,  which  has  resulted 
level  of 
comparatively  specialized  and  often  competing  bodies,  heads  of  firms 
still  have  considerable  problems  in  securing  general  advisory  services 
which  could  then,  in  the  light  of  their  needs,  direct  them  towards 
specific  services.  The  Commission  has  recently  launched  a  number  of 
pilot  projects  to  provide  assistance  at  regional  level  for  preparation  of  a 
strategy  to  support  innovation  and  technology  in  small  firms  (Regional 
Innovation  Strategies:  RIS).  These  entail  analysis  of  the  supply  of 
support  services,  comparisons  between  them  and  their  adaptation  to  suit 
the  varying  needs  of  small  firms  while  also  promoting  a  single  access 
point  (development  agencies,  chambers  of  commerce,  BICs,  technology 
centres  and  the like) or contact point  (Euro Info  Centres  - EIC)  for  these 
services under one roof  and organized  in the form  of a regional  network. 

Furthermore,  the  advisory  nature  of  such  services  is  not  usually 
coordinated  with  the  financial  aspect,  which  substantially  reduces  their 
effectiveness.  The  under-capitalization  of  small  firms  is  a  critical  point 
from  which  stem  the  bulk  of  their  problems  as  regards  ability  to 
continue,  develop and operate  internationally. 

The  Commission  therefore  advocates  the  systematic  integration  of 
financial  services,  seed  capital,  risk  capital  and  other  forms  of  financial 
engineering,  into  the  advisory  and  support  structures  for  small  firms. 
International  marketing  also  represents  an  important  element  for  the 
development  of small  firms. 

16 

Measures  to  support  technological  innovation  must  also  be  given  particular 
attention.  A series  of  Community  programmes  to this  end  is  already  under  way 
and  discussions  have  begun  on  the  basis  of  the  Green  Paper  on  innovation 
which  the Commission  adopted  on 20 December  1995. 

We  must  take  energetic  measures  to  meet  the  challenge  of  the  information 
society.  More  should  be  done  in  the  way  of  regional  and  Community 
development  planning  to prepare  for  technological  developments  and  not  merely 
submit to them passively. 

Telematic  services  and  applications  now  offer  the technical  potential  for  a rapid 
and  high-quality  response  to  individual  requirements  offering  lower  prices  for 
private  persons  (telemedicine,  education  and  training,  trade,  reservations,  etc.), 
employees  (teleworking),  business  and  industry  and  local authorities. 

the 
These  new  technologies  are  certainly  not  an  unmixed  blessing  for 
employment  situation  where  they  are  used  to  rationalize  and  automatize  tasks 
previously  done  by  people.  Be  that  as  it  may,  their  arrival  is  inevitable  and  so 
supporting  measures  should  be  prepared  well  in advance.  If  those  measures  are 
successful,  the new technology  can also create  opportunities  by: 

opening  up  and  expanding  outlets  and  know-how  in  the  least  developed 
areas  (Objectives  1 and  5(b))  and  the  most  remote  areas  (Objective  6): 
examples  of  this  are  teleworking,  and  the  improvement  in  quality  made 
possible by medical  telediagnosis; 

customizing  and  improving  access to training,  in particular  for  Objective 
2,  3  and  4  areas:  constant  updating  of  knowledge  and  adjustment  of 
programmes  to  specific  needs  are  major  advantages 
in  a  rapidly 
changing  world; 

in general,  increasing  the  amount  of  free  time:  the  gains  in  productivity 
the  new  technologies  bring  with  them  will,  ultimately,  mean  a  reduction 
in  working  hours,  which  can  only  be  a  good  thing  for  the  new  sources 
of employment  in the services  sector. 

These  are  the  aims  of  the  Community  pilot  measures  in  support  of  the 
information  society  recently  launched  under  the  IRIS  Initiative  and  of  the  pilot 
projects  under  Article  10  of  the  ERDF  Regulation  and  Article  6  of  the  ESF 
Regulation. 

17 

Information  technologies 

It is worth  mentioning here some experience  and orientations  from  various programmes:  in Limousine and 
Aquitaine  (France),  telesecretarial  services  have  been  developed  and,  in  on  a  larger  scale,  Sweden  and 
Finland  new methods of work, training and education are receiving Structural  Funds support. 

The  British  "knowledge-based  industry"  programmes  and  programmes  for  the  integration  of  tourism, 
culture  and  media  industries  provide  examples to be followed,  as does the  support  in France  for  research, 
development and technology  in SMEs in pursuit of  "regional excellence". 

B.  Increasing the job-intensity  of economic  growth 

The  aim  here  is  to  regain  a  margin  of  manoeuvre  between  growth  and  employment, 
which  is currently  being  restricted  by the imperatives  of competitiveness  in the medium 
term.  To achieve this,  we need  to devote particular  attention to: 

1. 

The  employment  question  when  financing 
infrastructure  and  productive 
investment,  giving  greater  weight  to  this  criterion  in  the  case  of  the  more 
developed  regions. 

(a) 

In general: 

/  - 

implementation, 

as  regards 
the  methodologies  and  selection 
criteria  for  projects  are  not  always  satisfactory,  since  they  result 
in  undifferentiated  assistance  designed  to  reduce  the  overall  cost 
of  the  investment.  Although  there  has  been  an  improvement  on 
the  previous  period,  the  criteria  should  be  more  selective  and 
give  greater  priority  to  measures  with  the  greatest  job-creation 
potential. 
The  procedures  for  granting  the  assistance,  particularly  to  small 
firms,  should be simplified  and  speeded up. 

Project selection criteria 

The  "scoring  system" used  in the United Kingdom provides one example of a methodology to help with the 
qualitative  analysis  of  assistance,  it  is  based  on  two essential  features:  firstly,  the  projects  must  satisfy  a 
certain number of basic criteria, and secondly there are specific criteria for evaluating the quality of a project 
in  relation  to  the  corresponding  measure.  Employment  is  one  of  the  basic criteria,  which  means  that  if  a 
project  does not create jobs  (in net terms),  it has  little chance of being selected.  The criteria specific  to the 
measure  involved  are  based  on  unit  cost  indicators  corresponding  to  the  type  of  operation  concerned, 
including  the cost per job  created.  Only  the  most efficient  projects,  i.e.  those with  the best  cost/job-created 
ratio, are financed  under the aid scheme. 

in  the  same  vein,  certain  Monitoring  Committees  for  Objective  5(b)  areas,  such  as  the  Committee  for  the 
French region of Provence-Alpes-Côte d'Azur,  have included job creation in their project selection criteria. 

more  appropriate  evaluation  methods  should  be  used,  better  adjusted  to 
the  diversity  of  the  regions  and  so  providing  a  better  picture  of  the 
quantified  objectives  in terms of the creation  and preservation  of jobs. 

18 

For  the  monitoring  of  operations,  tools  could  be  developed  for  the 
continuous  assessment  of  interim  impact,  with particular  attention  to  the 
measures  which create the greatest number of jobs. 

(b)  Measures  to  accompany  infrastructure  work  and  investment  aid  should 
be  stepped  up  in  order  to  maximise  the  spill-over  effect  on  local 
employment.  Direct  jobs  generated  by  major  infrastructures  have  two 
limitations:  they  are  temporary  and  risk  being  filled  by  people  from 
outside the area. 

There  should  be  a  pro-active  response  to  this  situation,  involving  close 
cooperation  between  promoters  and  supervisors  of  major  projects  with 
the  aim of maximising  the local  spill-over  effects  of the  works.  In  order 
not  to  influence  the  award  of  contracts,  this  approach  will  of  course  be 
applied  at  a  later  stage  (cf.  box  below).  It  may  also  be  applied  to  local 
businesses  with  a  view  to  sub-contracting  parts  of  the  works  following 
Commission  guidelines on better access for  SMEs to public contracts. 

Particular  attention  should  also be given to the possibility  of  making  the 
local jobs  and  outlets  thus generated  permanent  (cf.  box below). 

The  same principles  (targeted  training of workers  and  upgrading  of  local 
SMEs) could  be applied  to major  productive  investments. 

19 

Measures to support  infrastructures 

The jobs  generated  by  infrastructures  are  temporary  since  they  are  linked  to single  construction  operations 
and,  generally  speaking,  no steps  are  taken to make any of  them  permanent  after  the  works  are  completed 
(by way of example,  the region of Andalusia and the site of Expo '92 in Seville).  An estimate shows that up 
to  50  to  80%  of  work  on  major  construction  sites  under  Objective  1 is  supplied  by  firms  (and  staff)  from 
outside the region,  and sometimes from  outside the Member State. This estimate obviously  varies according 
to the qualifications  required and the population density in the area where the works are carried out. 

in  order  to  improve  the  local  spill-over  effects  of  these  works,  the  following  measures  could  be  initiated 
after  the contracts have been awarded in accordance with the relevant Community Directives: 

advance forecast  of craft  labour requirements at each site; 

comparison of those requirements  with supply on the local or regional  labour market; 

adjustment  of local supply to those requirements which it is not already equipped to meet, using 
intensive training programmes (part-financed  by the ESF). 

An operation to create permanent jobs could be carried out: 

either  at  local  level:  maintenance,  repairs  and  operational  management  of  the  infrastructure  and 
general  services  to it (e.g.  supply of consumer goods, refreshments),  which represent  an estimated 
100 000  local jobs  per year;  even more could be created  by systematic  measures  in the context of 
local services, in particular environmental services; 

or  at  external  level:  creation  of  pools  of  qualified  or  expert  staff  for  one  or  more  of  the  trades 
needed for the works, which could be used on similar sites outside the area. 

With regard  to measures  accompanying productive investment,  the German CSF for the new Lander shows 
a  possible  way  ahead  in concentrating  on the  recycling  of  industrial  material  and promoting  a  strategy  of 
cooperation between companies to the benefit of the new SMEs. 

2. 

Compensating  wherever  appropriate  for  changes  required  bv the modernization 
of the productive  sector, whether  it is a matter of mitigating  its sectoral  impact 
(in  fisheries,  for  example)  or  its  impact  on  the  urban  environment,  or  of 
slowing  down  the  rural  exodus,  which  itself  aggravates  urban  problems.  To 
achieve this, financing  assistance should be stepped up and provided  as the rule 

rather than the exception to support  integrated  approaches to rural development 
designed  to  develop  products  or  sectors  that  are  not  exposed  to  international 
competition, or only exposed to a small extent: 

(a) 

Firstly,  a strategy  for  the  systematic  development  of  regional  strengths 
should  be  encouraged.  It  should  be  based  on  industries  or  niches  that 
make an economic advantage of tradition and quality  and give scope for 
diversification  of  the  local  or  regional  economy's  outlets.  It  could  also 
be  based  on  the  offer  of  services  centred  on  revitalized  medium-sized 
towns, which should play a greater structural role. 

Whichever  approach  is  emphasized,  the  necessary  conditions  for  the 
success of such a strategy are: 

20 

greater  cooperation  among  SMEs  and  between  SMEs  and  large 
companies,  designed  to  establish  "innovative  economic  areas", 
giving  new  life  to industrial  districts; 

advisory  and  supporting  services  of  sufficiently  high  quality, 
essential  for  the  establishment  and  development  of  SMEs  (cf. 
11/A. 1)  having  regard  to  their  role  as  a  dynamic  source  of 
employment4. 

(b) 

Secondly,  particular  attention  should  be paid,  as the Commission  asks  in 
its  Communication  to  the  Council5,  to  developing  new  sources  of 
employment  in certain areas of  local  initiative  seeking  to meet new  needs 
not yet found  an adequate  response  and relating  principally  to the  quality 
of  life  (personal  assistance  services,  in  particular  for  senior  citizens, 
culture,  tourism,  local  services)  and  the management  of  scarce  resources 
(cultural  heritage,  management  and  protection  of  the  environment  -  cf. 
11/A/3 -,  alternative  sources  of energy,  in particular  biomass).  New  full-
time,  labour-intensive  activities  need  to be developed  on  the  basis  of  the 
new  needs  arising  from  demographic  and  social  trends  in  Europe,  of 
which  the  most  important  are:  the  aging  population,  (one  adult  in  three 
in  the  European  Union  is  over  sixty),  the  increase  in  free  time  and  the 
greater  stress  on the management  of scarce  resources. 

The  basic  premise  is  that  these  areas  contain  potential  pent-up  demand, 
which  needs  to  be  brought  into  the  open  and  encouraged  by  public 
measures 
to 
supporting  the  unemployed),  but  which  will  take  its  natural  place  in  the 
commercial  sector. 

(in  particular  by  activating 

the  resources  allocated 

See Commission  report  to the Madrid  European  Council  (CSE(95)2087)  "Small  and  medium-
sized  enterprises:  a dynamic  source of employment,  growth  and competitiveness  in the  European 
Union". 
COM(95) 273 of  13 June  1995 on  a strategy  for  encouraging  local  development  and job-creation 
initiatives 

21 

Sources of employment 

Strategies  for  exploiting  regional  advantages  must  be  designed  to  activate  employment  potential  based  on 
tradition,  which may include: 

"unique" local products which are in danger of disappearing or have already disappeared but which 
the public still remembers: know-how and trades, particularly  in crafts; 

typical  craft  or  traditional  products  which,  although  not unique  to a particular  area,  have  a strong 
competitive edge calling for  appropriate marketing strategies. 

Examples of this nature can be found  in the Irish CSF local development programme  which  is implemented 
by a global grant and based on the practice of  "Community development". 

Similarly,  the programme  for developing  regional potential  in Portugal  was recendy  (July  1995) adjusted  to 
give greater weight to this aspect, focusing on the development of small and very small businesses. 

Finally,  examples  of  good  practice  abound  in  the  Leader  Community  Initiative,  under  which  most  of  the 
local  action  groups  support  projects  involving  the  improvement  of  production  methods  and  the  sale  of 
typical  regional products. 

Under  Objective 2,  the  central  issue  is  the  financing  of  SMEs,  in particular  start-up  capital  for  those just 
getting  off  the  ground.  This  issue  cannot  be dissociated  from  that of  integrated  quality  services  to  support 
business start-ups, based on partnership between the different  service providers in the area. The SPDs of the 
new Member States, in particular Sweden, attach particular importance to these aspects. 

Support for  new sources of employment needs to be increased.  In this context, programmes  in Greece could 
be restructured  or could allocate  "deflator"  resources to supporting  the provision by the national  authorities 
of a job-seekers'  voucher along the lines of the French system. 

More  specifically,  the  Merseyside  (UK)  SPD  stresses  the  opportunities  offered  by  local jobs  through  the 
identification  of 38 "pathways" based on local initiative strategies. 

3. 

Encouraging  dynamic  reorganization  of  work  and  working  time  where  this  is 
accompanied  by an increase  in employment. 

The  rapid  spread  of  new  techniques  and  the  resultant  types  of  production  mean 
that  work  needs  to  be  organized  in  new  ways.  Delay  in  this  area  could  slow 
down  growth  and  productivity  and  hinder  the  potential  employment  advantages 
resulting  from  flexible  work  schedules. 

Structural  Fund  assistance,  in particular job  support,  could  act  as  a  catalyst  by 
supporting  the transitional  costs of implementing  approaches  such as: 

arrangements  allowing  workers  to  interrupt  their  careers  temporarily  for 
training  purposes,  for  example  in  exchange  for  the  employment  of  an 
unemployed  person  during  that training  period; 

22 

restructuring  of  working  time  to  achieve  better  distribution  of  available 
employment throughout each person's working  life. 

In this context  the  importance  of  the role played by  appropriate  training  for the 
employees  of SMEs  should be emphasized,  as should that of  systems  promoting 
training  throughout  employees'  working  life  and  the  role  of  the  social  and 
economic partners. 

Management of work and  working time 

In Denmark,  under  the legislation  which entered  into force  in  1994, unpaid  leave  for  personal  reasons may 
be granted  for  a period  of thirteen to fifty-two weeks and an allowance on the same scale as unemployment 
pay  is  granted.  Such  leave  is  intended  for  further  education,  parental  leave  or  sabbatical  purposes.  The 
resulting vacancies  are filled by the unemployed  or young job-seekers. This rotation increases the  flexibility 
of the labour market and helps members of the work force to retrain throughout their working lives. 

4. 

Fostering environmentally  sound  growth 

Protecting  the  environment  constitutes  a major  source  of  new jobs.  Apart  from  those 
generated  by  the  construction  and  maintenance  of  infrastructures,  more  and  more 
importance  is attached to the job potential offered  by work relating to the environment, 
sometimes  called  the  "eco-sector".  This  branch  of  activity  creates  goods  and  services 
for measuring,  preventing,  limiting  or correcting damage caused to water,  air and soil. 
It also  includes  the reduction and management of waste and noise pollution and energy 
saving  at  local  level.  In  addition,  the  services  concerned  cover  environmental  audits 
and  advice  to  all  other  sectors  of  industry.  The  development  of  environment-related 
industries,  which  mostly  use  very  sophisticated  technology  and  develop  innovative 
approaches  (production of anti-pollution materials,  telematic developments  contributing 
to  a  more  integrated  approach  to  environmental  management  at  local  and  regional 
level,  the  prevention  of  natural  and  "man-made" disasters,  the  management  of  natural 
resources,  energy-saving  techniques  and  renewable  energy  sources)  all  look  set  to 
generate long-term jobs. 

It  should  also  be  noted  that  environment-related  services,  including  the  launch  and 
maintenance  of  the  necessary  infrastructure,  which  are  particularly  important  for 
Objective  1 regions  (e.g.  waste  management,  pollution control,  water management,  the 
preservation of protected  natural areas and activities going beyond the environmental  in 
the narrow  sense,  but which make a significant  contribution to the quality  of  life,  such 
as  preservation  of  the  national  heritage  and  urban  renewal),  may  be  labour-intensive 
and so can make a major contribution to job creation and preservation. 

As  early  as  1988,  in  its Communication  on the future  of  rural  world,  the  Commission 
emphasized  the  importance  of  stepping  up environmental  protection measures.  In rural 
areas,  the  growing  demand  for  "natural"  agricultural  products,  "green"  tourism, 
unspoilt  areas  and  well-kept  landscapes  are  opening  up  new  horizons  for  the  regions 
concerned.  Other economic  activities  linked to a "clean" environment  (e.g.  research on 

23 

technology) may also contribute significantly  to the diversification  of sources of income 
and so help maintain rural population levels. 

Environment 

The  Cohesion  Fund  is providing  more  than  ECU  16 000  million  between  1993 and  1999.  During  the first 
two  years  of  its  operation  (1993-94),  the  ratio  of  environmental  to  transport  projects  was  roughly  40:60. 
The  Commission  considered  this  proportion  to  be  too  low  in  view  of  the  target  of  50:50.  The  situation 
should therefore  be improved  significantly. 

Under Objective 2,  the SPD for  Germany devotes 7% of its resources to  "clean" technologies and products. 
The United Kingdom SPD has a similar orientation: in western Scotland,  ECU 47 million has been allocated 
to improving the region's environment and image, as part of the Business Infrastructure  priority.  The ERDF 
will  be financing projects  such  as those  allowing  an increase  in the  recycling  of  land  with  an emphasis  on 
reducing  the  damage  to  which  historical  sites  and  monuments  are subject,  or  a  limited  number  of  projects 
for  the  reconstitution  of  natural  habitats  on  the  outskirts  of  towns.  In  Picardy  (France),  17%  of  SPD 
resources  have  been  set  aside  for  this  purpose  and  a  model  pilot  project  has  been  set  up  to  create  local 
sectoral networks for the recycling of household waste. 

C. 

Promoting  a  more  active  approach  to  economic  and  social  solidarity, 
including equal opportunities 

Economic  and  social  solidarity  should  be  clearly  distinguished  from  the  provision  of 
assistance. 

The  high  rate  of  unemployment  has  weakened  large  sections  of  the  population 
throughout the Community and led to the spread of social màrginalization, particularly 
affecting  those categories most vulnerable on the labour market,  such as young people 
from  underprivileged  backgrounds,  women, the long-term unemployed  and part of the 
immigrant population. 

In  order  to  combat  and  prevent  long-term  unemployment  and  the  risk  of  social 
fragmentation,  we must work to reform  labour market policies. Active policies must be 
given  priority  over  merely  handing  out benefits.  This  would  allow  available  financial 
resources  to  be  used  productively  and,  above  all,  permit  mobilization  of  the 
unemployed  and  marginalized.  To  do  this,  access  to  unemployment  benefits  will  be 
connected to a greater extent to training actions and to acquisition of new competences 
in order to better prevent long-term unemployment and exclusion. 

The  transfer  of  aid  hitherto  used  for  passive  measures  to  active  labour  market 
measures, which would hence not entail an increased burden on public finances,  would 
require  the  range  and  quality  of  services  to  job-seekers  to  be  adapted.  Such 
improvements  are  necessary  to  deal  effectively  with  the  specific  difficulties  of  the 
unemployed  and  the  sections  of  the  population  weakest  on  the  labour  market,  in 
particular women, by giving them better access to economic and social activity. 

This  means  introducing  arrangements  to  integrate  guidance,  training,  counselling  and 
employment  aid  to  make  it  easier  for  job-seekers  to  find  work.  In  this  context, 
measures  to promote  the  active participation  of  all  in economic  and  social  life  should 
particularly emphasize equal opportunities for women and men. 

24 

In its Communication  of 21 February  19966 the Commission  proposed  that the  situation 
of  women  and  men  should  always  be  taken  into  account  when  the  Structural  Funds  are 
being  used  in order  to make  a more  positive  contribution  to equal  opportunities.  It  also 
proposed  guidelines  for  the  role  which  the  Funds  might  play  in reconciling  family  and 
working  life  and  integrating  disadvantaged  women. 

This  approach,  which  gives  priority  to  work  and  employment,  can  also  be  combined 
with  developing  new  sources  of  employment.  Encouragement  for  local  development 
and  employment  initiatives  could  be  supported  from  part  of  the  resources  hitherto 
allocated  to  passive  income  support,  as  well  as  from  increased  cooperation  with  the 
competitive  economy. 

Economic solidarity 

In  Hainaut  (Belgium,  Objective  1),  "Agences  de  Développement  de  Quartier"  (urban  local  development 
agencies),  in  association  with  the  appropriate  regional  authorities,  are  working  on the  social  integration of 
underprivileged  young people through projects  to restore public areas (accommodation,  schools,  renovation 
of urban areas).  Under the supervision of a social worker and a works manager,  the typical  group is made 
up of seven or eight apprentices, under-going  pre-training  in unskilled  techniques  which should  be  followed 
by training  proper,  or  by employment.  In  1994, 2 205 people took part  in these  measures  in Hainaut.  The 
average duration is 453 hours per participant and the average cost per hour for  each participant is ECU 6. 

To  integrate  extremely  marginalized  members  of  Belgian  society,  public  social  assistance  centres  can 
provide  individualized  guidance  with a view to offering  training  and  giving  them access  to social  security. 
The average duration of these measures is  1  350 hours per person. 

In  Kolding  (Denmark),  a  group  of  young  people  excluded  from  the  labour  market  transformed  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 lessons. 

After  a basic course  (history,  languages,  working as a tourist guide), the participants could choose among a 
number  of  training  courses  (computer  studies,  electronics,  marketing,  metal  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.  The average cost per 
hour per participant is ECU 18. 

In  Lelystadt  (Netherlands)  the  reconstruction  of  a seventeenth  century  boat  has  enabled  around fifty long-
term  unemployed  people  to  participate  each  year  in  renovation  work  accompanied  by  vocational  training 
programmes.  With  time,  the  project  has  become  a  tourist  attraction  and  developed  into  a  socio-cultural 
organization.  Most (224) of the 350 participants have found  work in the private sector,  while others (70) are 
still in training. 

The  historical  renovation  of  the  English  church  in  Hamburg  (Germany)  over  the  years  1991-94  was 
undertaken  by  a  group  of  ten  long-term  unemployed  people  who  attended  a  course  on  construction, 
architecture  and renovation  techniques  leading to qualifications.  The ESF contributed  around  ECU  170 000 
to the project. 

COM(96)67 final  of 21 February  1996  "Integrating equal opportunities  for  women and men in 
all  Community  policies  and  action". 

25 

D. 

Developing  and  enriching  the  partnership  in  the  context  of  structural 
assistance 

Each  of  the  approaches  described  above  is  a  potential  reserve  for  fostering  job 
creation,  which,  if  it  is to  be  fully  activated,  requires  the  strenghtening  and  renewal  of 
the  partnership  while  fully  respecting  the  specific  competences  and  the  legitimacy  of 
each  of  the  partners  having  to  be  involved  in the  different  stages  of  the  process.  More 
significant  margins  for  manoeuvre  can  be  created  by  the  way  financial  assistance  is 
used  than from  its content  or  volume. 

1. 

In  this  context  the  participation  of  the  all  the  parties  concerned  should  be 
increased  in  order  to  achieve  triple  value-added:  economic,  financial  and 
political. 

in  different  areas  require  more  precisely 

Economic,  to  the  extent  that,  if  they  are  to  be  effective,  widely  varying 
employment  situations 
targeted 
measures  that  give greater  priority  to local  links.  In order  to safeguard  or  create 
jobs  by  developing  all  the  resources  of  an  area,  it  is  also  necessary  to  achieve 
wide-raging  involvement  in  this  approach  and  publicize  the  fact  that  projects 
involving  entrepreneurial  initiative  will  be  rewarded. 

Financial,  because  public  resources  are  subject  to budget  constraints,  which  are 
becoming  tighter.  If  financial  partnership  with  the  private  sector  is  developed 
for  the  assistance  measures  that  affect  it  most  closely,  this  will  increase  their 
multiplier  effect  and  their  impact  on employment.  But this  aspect can  work  only 
if  private  companies  play  a  greater  part  in  the  preparation  and  implementation 
of  assistance  measures,  as  can  be  seen  from  the  global  grants  implemented  in 
several  Member  States. 

Political,  in  that  Community  assistance,  in particular  structural  assistance,  must 
become  more  visible  to  the  public.  This  important  aspect  of  the  European 
project,  stressing  economic  and  social  cohesion,  including  in  the  sphere  of 
employment,  which  affects  everyone,  should  mean  greater  involvement  of 
public opinion  in the  Union. 

2. 

The  Commission  has  found  that the political,  economic  and  social  partnership  is 
not  fully  exploited, 
level  of  national  authorities.  The 
mobilization  of  local  authorities,  social  partners,  non-profit-making  associations 
and  businesses  is  still  often  inadequate  and  always  too  formal.  It  should 
therefore  be stepped  up,  which  implies: 

including  at  the 

(a) 

enriching  territorial  partnership:  in  terms  of  organization,  this  means 
integrating  traditional,  vertical  partnership  between  national, 
better 
regional  and  local  public  authorities  with  horizontal  partnership  between 
public  and  private  bodies  at the most appropriate  territorial  level. 

26 

Above all,  the impact of local assistance needs to be improved.  Tailor-
made  training,  accompanying  measures  for  infrastructures,  support 
services  for  SMEs,  better  targeting  of  aid  schemes  for  the  productive 
sector,  will  all  mean  a  certain  decentralization  at  the  level  of  the 
preparation  and  implementation  of measures. In this context,  there seem 
to  be  ample  grounds  for  improving  vertical  partnership  between  the 
different  administrative  levels.  The  local  level  is  too  often  under-
represented, or left  out altogether, by the Monitoring Committees. 

(b) 

expanding  economic  partnership:  at  the  same  time  we  must  not  lose 
sight  of  the  need  for  a  horizontal  dimension  of  partnership:  support 
measures  for  the private sector  and assistance for  education  and  support 
for  RDT  can  be  neither  planned  nor  implemented  without  the  active 
participation  of  the  economic  and  social  partners,  and  in  particular  of 
social  and  trade  organizations  in  particular,  SMEs,  craft  organizations 
and  the  social  economy).  The  same  applies  to  non-profit-making 
associations 
the 
organization  of  social  and  economic  schemes,  combating  social  and 
economic  marginalization,  supporting  new  sources  of  employment  and 
equal opportunities. 

the  broader  sense  where  measures 

involve 

in 

In  terms  of day-to-day  practicalities,  we should  go beyond  the  confines 
of  the  Monitoring  Committees  and  develop  less  formal  forums  for 
discussion  and  proposals  with  more  balanced  participation  by  both 
sexes, more appropriate information  and discussion of territorial  projects 
affecting  employment.  This  enriched  partnership  should  not,  however, 
become  a  source  of  confusion:  national  authorities  will  concentrate  on 
arbitration,  examining  the  general  coherence  of  programmes  and 
preparing project assessment instruments. 

27 

Structural  Funds  and  Partnership 

Analysis shows that the situation varies widely according to the Objectives  in different  Member States. 

1. 

In terms of the organization of the Monitoring Committees 

(a) Under Objective I 

There are some examples of widening the partnership with subcommittees.  In Spain the Andalusian model is 
an example of this.  It involves a special committee below the level of the Monitoring Committee, bringing 
the regional government and the social partners together in order to have their opinion on economic develop 
ment and job creation issues. 

Another model for  organizing the socio-economic partnership  is to follow  closely the territorial  organization 
of  programming  and  implementation.  For  some countries  (I, IRL) this model  involves  the  socio-economic 
partnership  operating  at  the  second  level,  that  of  operational  programmes.  At  the  third  level,  the  regional 
authority committees (Ireland) operate in their own areas and the partnership is even wider. 

The socio-economic  partnership plays too weak a role in the UK Monitoring Committees.  In Merseyside as 
well as in the Highlands and Islands there is discussion of the Monitoring Committees' omission of the private 
sector. 

In Germany, there has been hesitation over establishing subcommittees with the social and economic partners 
at  Lander  level.  The  Prime  Ministers  of  the  Lander want  to  restrict  contact  with  the  Social  and  economic 
partners to information only. 

Another  way  to  strengthen  the  Monitoring  Committee  could  be  through  technical  support. 
In  Spain  a 
multidisciplinary team has been established to deal with all aspects of operations financed  by the ERDF and 
ESF.  The team's report gives feedback  to the Monitoring Committee on different  aspects. 

(b) 

Under Objective 2 

The socio-economic partnership in the Objective 2 areas is considerably stronger.  Denmark, Belgium and the 
Netherlands  provide  examples  of  socio-economic  participation  in the Monitoring  Committees  even  if there 
are  variations  in  decision  making  procedures.  By contrast,  lack  of  participation  by the  social  partners  and 
limited representation of elected members of local authorities are to be noted in the UK. 

In  one  instance,  the  Commission  member  of  the  Monitoring  Committee  is  also  a  member  of  the  project-
selecting  committee,  which  gives  early  opportunities  to  stress  special  aspects.  In  another,  the  Monitoring 
Committee decides upon proposals from the technical financial committees (Belgium). 

The  model  of  establishing  subcommittees  to  the  Monitoring  Committees  is  also  used  in  Objective  2 areas 
(Spain). 

The model of letting the socio-economic partnership in at a lower level is used by France, for example, where 
socio-economic  representation  is  guaranteed  by  the  "Economic  and  Social  Council"  of  every  region  but 
completely excluded from the Monitoring Committees themselves. 

Luxembourg provides an interesting example of representation  on the Monitoring Committees going beyond 
that of the  traditional socio-economic partners, including also Chambers of Commerce and other trade bodies. 
This also applies to Luxembourg's Objective 5(b) programme. 

28 

Technical  management  support  is  used  to  assist  the  Monitoring  Committees  in  Spain,  Belgium  and  the 
Netherlands for example. 

To coordinate Objective  2 and  5(b) programmes  and  combine them to the best  effect,  a steering  committee 
has been established (Netherlands). 

c) Objectives 3 and 4 

In the case of Objectives 3 and 4, the Commission has stressed the importance of involving the economic and 
social  partners  in  negotiating  CSFs  and  drawing  up  the  internal  rules  of  procedure  for  the  Monitoring 
Committees.  Under  Objective  4  a  consistent  effort  has  been  made  to  involve  both  social  and  economic 
partners, in particular Chambers of Commerce and SMEs (Germany, France, the Netherlands). 

2.  The role of the Monitoring Committees 

There is a development  in the direction of more involvement in regional or local programmes.  These involve 
regional or local networks. 

There  is  also  discussion  in  some  Monitoring  Committees  of  how  the  Commission's  need  for  impact 
information  is  met  and  how  to  set  up  standardized  methods  and  definitions  for  a  report  system  on 
employment (Spain and Ireland). 

Beyond this institutional aspect, the Monitoring Committees could in any case initiate more active partnership 
practices:  in  certain  Member  States  a  set  of  practices  for  opening  up  the  partnership  (in  particular  to  the 
economic  and  social  partners)  shows  how  to  achieve  greater  effectiveness  while  respecting  spheres  of 
administrative  competence.  Under  different  names  (seminars,  technical  committees,  consultative  sectoral 
committees, sub-committees,  panels, working  parties, etc.), less official  bodies, which, however,  meet  on a 
regular  basis, make it possible to exchange  information  on the prospects,  interests and activities  of all  those 
concerned. 

These  structures  are  supplementary  to  the  Monitoring  Committees  and  managed  by  them,  allowing  more 
effective  dissemination  of  information  and  new  guidelines,  better  ways  of  dealing  with  the  problems  and 
preoccupations  of those  involved, the enrichment  of analysis and reflection  with expert  contributions  on the 
different  areas and the promotion of concerted activity at the level at which the work is being done. 

The  Italian  model  of  "territorial  pacts" based  on  employment  areas  is undoubtedly  the  most  innovative  and 
advanced  form of this expanded and dynamic partnership. 

* 

* 

* 

Conclusions7 

The  active  measures  derived  from  the  guidelines  formulated  above  calls  for  a 
concerted  effort  by  all  those  involved  in  the  implementation  of  structural 
assistance.  The  Commission,  while  fully  respecting  the  objectives  of  the 
Structural  Funds,  intends to take the necessary  political  initiatives  to  support the 
various partners in applying the approach adopted in this document. 

At  its meeting  on the  13 February  1996 the  European  Social  Fund  Committee  broadly  accepted 
these  analyses  and  general  conclusions. 

29 

At  the  present  stage  of  programming,  it  is  not  a  question  of  re-opening  the 
the 
negotiation  of  CSFs  or  SPDs.  What  needs  to  be  done  is  to  exploit 
programmes'  margin  of  flexibility  more  fully  and  to  focus  monitoring  and 
evaluation  systems  on  the  gradual  introduction  of  the  priorities  adopted  in  this 
paper. 

Thus,  while  taking  account  of  the  specific  situations  of  different  regions,  the 
departments  responsible  for  Structural  Funds  should  coordinate  their  work  to 
ensure  that  the Monitoring  Committees  translate  the  above priorities  into  concrete 
measures.  In  this  context,  particular  attention  will  be  paid  to  preparations  for 
programming  for  the  second  period  of  Objective  2  (1997-99)  and  to  the  mid-term 
assessment  of  assistance.  Within  the  current  programming  arrangements,  the 
resources  derived  from  the  annual  application  of  the  deflator,  or  from  delays 
recorded  for  the  1994 and  1995 financial  years,  will have to be used. 

Similarly,  the  systems  and  methodologies  for  evaluation  will  have  to  be  adapted 
rapidly  to take these recommendations  fully  into account. 

2.  To  achieve 

these  objectives, 

in  line  with  previous  recommendations, 

the 
Commission  proposes  establishing,  in  the  context  of  the  structural  policies, 
territorial  partnerships  for  employment,  involving  the  public  and  private  sectors 
whose  scope  could,  moreover,  go  beyond  that  of  the  Structural  Funds.  Such 
partnerships,  concluded  at  the  most  appropriate  level,  could  provide  a  context  in 
which  smaller  territorial  units  could  be  involved  in  those  aspects  of  the 
multiannual  employment  programmes  agreed  with  the  Member  States  which 
concern  them. 

the  practical  arrangements  for 

Their  content  and 
implementation  will  be 
thoroughly  discussed  by  all parties  so that the  situations  and  institutional  practices 
in  each  Member  State  can  be  taken  into  account.  In  addition  to  the  discussions 
currently  in progress  in the Structural  Funds  Committees,  the subject  could  be  on 
the agenda  for  future  European Councils  and for  Parliament. 

However,  the  Commission  believes  that  the  partnerships  for  employment  will 
involve  all  concerned  in preparing  global  territorial  diagnoses  of  the  employment 
situation,  from  which  strategies  will  be  derived  which  the  different  parties 
the  administrative  bodies  -  will  work  more 
concerned 
concertedly, 
in  particular  by  spreading 
information  about  successful  experiments. 

innovative  approaches, 

-  and  especially 

favouring 

30 

The  aim  is  to  build  up  an  organization  and  develop  political  momentum,  as  has 
been successfully  done within the  Union (Employment  pact in Andalusia,  Charter 
for  employment  in  the  Deux-Sèvres  and  Poitou-Charentes,  Area  Development 
Management  in  Ireland).  This  does  not  mean  duplicating  the  work  of  the 
programme  Monitoring  Committees  but providing  the  facilities  for  reflection  and 
reference  which  will  enable  them  to  give  priority  to  using  all  the  available 
flexibility  which  the  current  programme  affords  to  support  local  initiatives  for 
development and employment. 

31 

Annexe  1 

European  C o m m i s s i on 
Regional  Policy  and  Cohesion 
DG  XVI -A4 

Austria  : unemployment  rale  lor  1993 
Reunion.  Guadeloupe.  Martinique.  Guyane  average  unemployment  'île  "S91-92-32 

A n n e xp  ? 

Participation  rates,  1993 

European  Commission 
Regional  Policy  and  Cohesion 
DG  XVI-A4 

Annexe  3a 

Contribution des  Fonds structurels  aux  dépenses de développement 

Belgique 

Allemagne 

Grèce 

Espagne 

France 

Irlande 

Italie 

Pays-Bas 

Portugal 

i 

138 
34 
12 

1106 

! 

92 

1106 

6408 
4002 
252 
864 
624 
666 

10628 
6100 
418 
624 
3034 
452 

254 
21 
139 

4261 

3648 

3444 
1878 
1236 

7462 
623 
.  5974 

610 
262 

• 

«, 

/ 

8 
323 
15 

595 
86 
465 

1109 
888 
37 
70 
74 
39 

2470 
1007 
1094 

4420 
1142 
418 
312 
1867 
81 

3184 

2209 

36 
31 

5 

40 
28 

4146 
1872 
276 
426 
1056 
516 

4110 
1404 
2334 

Mécu prix 

1994 

Royaume 
Uni 
.  671 
314 
20 
190 
146 

Autriche* 

EUR  11 

% 

33 

4 
4 
25 

29304 
15244 
1435 
2495 
8328 
1770 

3.1,2% 
16.2% 
1,5% 
2,7% 
8,9% 
1,9% 

895 

791 

43 
4 
32 

26713 
5048 
17890 

28,4% 
5,4% 
19,0% 

93 

613 

330 

865 

43 

368 

975 

11 

372 

104 

7 

3775 

4,0% 

Infrastructures 
Transport 

f  Télécommunications 

Energie 
Environnement &  Eau 
Santé 

Ressources  humaines 
Education 
Formation 
Recherche  & 
Développement 

Environnement  productif 
Industrie  et services 
Agric.  & Développement rur 
Pêche 
Tourisme 

335 
252 
50 
0 
32 

7973 
4748 
3141 
83 

3888 
1008 
2040 
150 
690 

8023 
3019 
3422 
1033 
550 

753 
215 
387 
''•42 
99 

1845 
559 
853 
78 
355 

7168 
3708 
2341 
257 
862 

4. 

*' 

300 

, 

.246 

187 

238 

211 

88 

56 
22 
22 
8 
5 

18 

5006 
2226 
1908 
251 
618 

713 
331 
242 
37 
103 

86 
35 
24 

27 

35845 
16088 
14405 
1940 
3313 

38,1% 
17,1% 
15,3% 
2,1% 
3,5% 

732 

82 

4 

2104 

2,2% 

730 

13640 

13986 

26300 

2195 

5634 

14860 

150 

13994 

2360 

166 

94014 

100,0% 

., 

1 

Autres 

TOTAL 

'  Môcu  prix  1 995 

u 

Annexe  3b 

Contribution  des  Fonds  Structurels  aux dépenses  de  développement  de  l'Objectif  2  (1994-1996) 

Allemagne 

Belgique 

Danemark 

Espagne 

France  -

Italie 

Luxem 
bourg 

Pays-Bas 

Royaume-
Uni 

Finland 

Austria' 

Sweden' 

TOTAL 

Mécu  prix  1994 

Environnement  productif 
Infrastructures  de  soutien 
Industries  et  services 
PME 
Tourisme 

Sites  Industriels,  oménagoment  et 
réhabilitation 

Environnement 
Zones  urbaines,  aménagement  et 
réhabilitation 
Protection  de 
infrastructures 

l'environnement, 

Ressources  humaines 
Formation,  emploi 
Centres  de  formation, 
Recherche  &  Développement 

équipements 

Assistance  tochnlquo 

TOTAL 
C)  moy.  1995-98  en  Mecu  1995 

• 

' 

245 
48 
.  24 
162 
11 

1  19 

.  -65 

13 

62 

293 
2)3 

79 

1  1 

76 
37 
17 

'2 
10 

16 

11 

3 

a 

53 
27 
9 
17 

4 

23 
9 
8 
1 
5 

692 
302 

É90 

' 

7 10 
168 
264 
160 
148 

• 

335 
36 
49 
191 
68 

214 

174 

40 

317 
268 

69 

8 

32 
12 

20 

1 

164 

77 

262 

169 

103 

614 
306 
67 
242 

25 

'.,  57 

9 

48 

204 
137 
5 
63 

1  1 

733 

160 

56 

1130 

1785 

684 

'  / 

1 

/ 

2 

2 

2 

2 
/ 

0 

7 

. 

T 31 
31 
36 
30 
34 

41 

5 

1038 
262 
248 
330 
207 

189 

138 

6 

138 

113 
90 

23 

9 

755 
628 
39 
188 

22 

300 

2142 

48 
16 
10 
17 
5 

0 

7 

7 

0 

13 
13 

1 

69 

24 
8 

10 
2 
3 

0 

0 

0 

0 

15 
;/ 
2 
2 

1 

40 

42 
2 
13 
18 
8 

3264 
901 
671 

1203 
489 

% 

45,6% 
12,6% 
9,4% 
16,8% 
6,8% 

0 

599 

8,4% 

0,24 

762 

10,7% 

364 

5 , 1% 

0,24 

398 

5,6% 

20 
14 
1 
6 

2 

64 

2431 
1608 
123 
699 

34,0% 
22,6% 
1,7% 
9,8% 

95 

1,3% 

7151 

100,0% 

Contribution  of the  Slruclural Funds  to Objective  3.end 4 expenditure  on Human  Resources  lor the period 1994-1096/1899 
Contribution des Fond» structurels  eux dôpensos de Ressources Humaines  objectifs 3 el 4 pour  la période  1894-1996/1999. 
Boltrog der Slrukturlonds zo don Auswondunnen (Or Menschtldha Roriouicen nach Zlel 3 und 4 fur die Période  1994-1096/1009. 

Meeus  1994 

BE 

OK 

DE 

ES 

FR 

IT 

LU 

NL 

UK 

Total 

% 

Annexe  3C 

Ob|octlvo3 

1.  Occupational  Integration  ol  lonrj-torm  unemployed 

2.  Occupationol  intégration  ol  young  porsons 

3.  Integration  of  personj  excluded  from  the  labour  market 

4.  Promollon  of  equal  opportunities 

5.  Aulro3 

Total 

Objocfjvu  4 

133 

82 

"  124 

26 

29 

H4 

55 

68 

0 

6 

952 

442 

77 

•  160 

50 

495 

723 

ISO 

62 

0 

724 

980 

705 

18 

136 

423 

568 

132 

105 

91 

6 

3 

10 

1 

1 

577 

346 

0 

0 

0 

562 

474 

360 

90 

IS 

4  015 
3  67( 

1.654 

461 

327 

- 

40 

36 

16 

5 

3 

393 

263 

1.681 

1.4GB 

2.562 

1.316 

21 

923 

1.501 

10.128 

100 

1.  Adaptation  of  v/orkois  to  Industrial  change 

2.  Autres 

2-1 

2 

12 
::  1 

105 

0 

369 

0 

300 

0 

Total 
Nolo:  Objocilvo  3 In UK is  ooroed (or  1994-1996; Objocilvo  4 in BE. OK, DE. FR, LU Is ocjreod for  1094-1996; no ug/oernenl for UK. 

* 

' 

13 

•  105 

369 

300 

26 

321 

78 

399 

1 

0 

1 

156 

.0 

156 

0 

0 

0 

1.287 

-  81 

1.368 

94 

6 

100 

tf 

Conlribulion des Fonds structurels  aux dépensés de développement, de l'objectif  5a-péche (hors objectif  1),  1994-99 

Ahnexe  3D 

Mécus  1994 

B 

DK 

D 

E 

F-k''•.'.V. 

FI •••/ 

1 

L 

NL 

SE 

UK 

TOT 

24,5 

139,8 

74,6 

119,6 

•  189,9 

••-••'•.  23 

134,4 

1.1 

46,6 

40 

88,8 

882,3 

.

;

•: 

'

•

•. 

'

'

•

:

•

'• 

• 

' 

!. 

• 

. '; 

. '. 

. 

U3 

Annexe  3E 

DOCUP  de  l'Objectif  5b  ( 1 9 9 4 - 1 9 9 9)  :  A l l o c a t i on  c o m m u n a u t a i re  par  axe  prioritaire  de  développement  ( ') 

• : . ; • , • • • ; ' •• 

! 

•

-

;

•

'

•

.. 

MECU 

prix  couruni 

BE 

'.  - DK 

'  DE  •:. 

ES 

FR 

IT 

. 

LU 

NI 

UK 

Axe  prioritaire 

;. :|!;si-.l..i  i 
Diversification  Agricole  et  sylvicole 
L','!''.'il.it. ^  . 
Diversification  et  développement  do?  socteurs  non-agricoles 
LirA i.iili',  l- 
KfOleclioh  de  l'environnement 

:  >i 
;• 

. ; 

TÔUrisrné 

2 0 ,3 

22,8 

6,9 

10,2 

14,7 

12,9 

C *) 

14,7 

Développement  local  ei  rénovation  des  villages 

3.9 

.  C) 

. 

Ressources  humaines 

Assistance  technique  et  évaluation 
total 

• 

Diversification  agricole  ei  sylvicole 

Axe  prioritaire 

Diversification  et  développement  des  socieurs,non-agricoles 

Protection  de  l'environnemeni 

Tourisme 

* 

Développement  local  ot  rénovation  dos  villages 

Ressources  humaines 

Assistance  technique  et  évaluauon 

total 

12,9 

1.1 
78.1 

10,6 

1,1 

5 4 ,0 

BE 

2 6 , 0% 

2 9 , 2% 

8 , 8% 

1 3 , 1% 

4 , 9% 

1 6 , 6% 

1,4% 

1 0 0 . 0% 

OK" 

2 7 , 2% 

2 4 , 0% 

C) 

2 7 , 2% 

fi 

1 9 , 6% 

2 , 0% 
1 0 0 , 0% 

! 

j 

| 

! 

j 

: 

\ 

; 

!'l  Proçramn)os  approuvés  par 
('  'I  Les  actions  relevant  de  cet  oxe  sont 

habilitation 

intégrées  dans  d'autres  axes 

prioritaires. 

2 2 4 ,2 

3 2 1 ,7 

2 0 7 ;7 

8 6 ,7 

14  6,1 

2 1 9 ,6 

2 3 ,0 

2 9 7 ,9 

9 6 .2 

6 7 ,5 

4 5 .2 

6 8 ,6 

8 8 ,6 

f) 

6 8 3 ,8 

5 0 8 ,6 

2 4 4 ,8 

2 6 6 ,0 

2 0 5 .9 

2 8 6 .3 

4 3 .9 

1 2 2 9 ,0 

6 6 4 ,0 

2 2 3 9 .4  | 

DE 

1 8 . 2 %. 

2 6 , 2% 

1 6 , 9 %. 

7.1  % 
1 1 , 9% 
1 7 , 9% 
.  1.9% 

ES 

4 4 , 9% 

1 4 , 5% 

1 0 , 2% 

6 , 8% 

1 0 . 3% 

1 3 , 4% 

FR 

3 0 . 5% 

2 2 . 7% 

1 0 , 9% 

1 1 , 9% 

9 , 2% 

1 2 . 8% 

2 . 0 %: 

3 3 1 .5 

168,3 

9 4 .6 

168.6 

7.2 

120.9 

12.6 

9 0 3 .7 

IT 

3 6 . 7% 

1 8 . 6% 

1 0 . 5% 

1 8 . 7% 

0 . 8% 

1 3 . 4% 

1,4% 

0.7 

0.9 

0.5 

1,0 

2.0 

0,8 

0.2 

6,0 

LU 

11,2 % 

1 4 . 2% 

8 , 8% 

1 6 . 4% 

3 4 , 1% 

1 2 , 8% 

2 . 5% 

15.2 

58.  l 

35.7 

20.9 

1.1 

17,2 

1.8 

1 5 0 .0 

NL 

1 0 . 1% 

3 8 . 7% 

2 3 . 8% 

1 3 . 9% 

0 . 7% 

1  1.4% 

1.2% 

64.8 
305.7 

63,9 

1  74.9 

69.0 

132.1 

10.1 

8 2 0 .5 

(Otal 

1653.2 

1495.2 

721,5 

783.2 

503.8 

8 8 9 .1 

93,7 

6144,7 

%  tota: 

UK 

| 

total 

7.9% 

3  7.3% 

7.8% 

2 1 . 3% 

8 . 4% 

1 6 . 1% 
1.2% 

2 6 . 9% 

2 4 . 3% 

11.7% 

12,8% 

9 . 2% 

. 1 4 . 5% 

1.5% | 

1 0 0 , 0% 

1 0 0 , 0% 

1 0 0 . 0%  •' 

1 0 0 . 0% 

1 0 0 . 0% 

1 0 0 . 0% 

1 0 0 . 0%  | 

1 0 0 , 0 %| 

Annexe  3  F 

Contribution  des  Fonds  Structurels  à  : 
l'Objectif  6  (1995-1999) 

; 

. 

: 

Mecu  1995 

Finlande 

Suède 

r 

, 

Total 

• 

% 

• 

. 

', 

i 

• 

Infrastructures  de  base 
Secteur  productif 

Ressources  humaines 

Recherche  et  développement 
TOTAL 

0 

.347 

104 

114 
5 65 

13 
152 

' 

13 
•  -  4 99 

64 

1 68 

1,6 
6 1 ,1 

2 0 ,5 

23 
2 5 2| 

-137 

:8 17 

1 6 ,8 

, 
1 0 0 ,0 

a 

ISSN 0254-1475 

C0M(96)  109 final 

DOCUMENTS 

EN 

13  04 

Catalogue number  :  CB-CO-96-117-EN-C 

ISBN 92-78-01677-2 

Office  for Official*Ptfblications  of-the European Communities 

L-2985 Luxembourg