COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE EUROPEAN PARLIAMENT, THE ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS - COHESION POLICY AND CULTURE - A contribution to employment
Date: 1996-11-20
Institutions: European Commission
Subjects: Structural Funds, culture, economic and social cohesion, job creation, regional development

IPWPHV 

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 20.11.1996 
COM(96) 512  final 

COMMUNICATION FROM THE COMMISSION 

TO THE COUNCIL, THE EUROPEAN PARLIAMENT, 
THE ECONOMIC AND SOCIAL COMMITTEE 
AND THE COMMITTEE OF THE REGIONS 

COHESION  POLICY  AND  CULTURE 
A  contribution  to  employment 

I.  INTRODUCTION 

The  diversity  of  cultural  heritage  in  Europe  is one  of  its  most  valuable  assets.  It  forms  a 
major  part  of  the  continent's  identity.  As  yet,  however,  the  full  potential  of  this  asset 
remains  underexploited,  as  do  opportunities  for  further  innovation.  The  Commission's 
White  Paper  on  "Growth,  Competitiveness  and  Employment"  identified  Culture  as  one 
sector of future  employment.  In its Communication  on  "Community  Structural  Assistance 
and  Employment"1  the  Commission  has  offered  a  frame  of  reference  for  job  intensive 
investment  assisted  by the Structural Funds. 

The  growing  importance  of  culture  is  closely  linked  to  recent  economic  development 
trends. Firstly, the  expansion  of culture  is related  to  the  evolution  of societies  away  from 
traditional  industries  towards  the  service  sector.  Secondly,  changes  in  lifestyle  (e.g. 
increased  personal  mobility)  and  growing  leisure  time  create  more  demand  for  leisure 
activities,  including  culture.  Both  trends  tend  to  encourage  the  economically  viable 
aspects of culture. 

The  cultural  sector  is  characterised  by  growing  close  and  varied  interrelations  between 
cultural  life  (public  cultural  and  socio-cultural  institutions:  theatres,  museums,  arts 
centres,  historical  urban/rural  sites, arts  and  music  schools  etc.)  and  the  cultural  economy 
(music,  arts,  literature  and  books,  film  television  and  video-production;  photography, 
design, visual and  entertainment  arts, architecture, crafts  and trade, protection  of historical 
monuments, tourism). 

In  this  context  culture  can  contribute  significantly  to  employment.  Cultural  products  and 
industries  offer  opportunities  for job  creation,  adding  significantly  to  the  effects  of  more 
"classical" measures  such  as the  preservation  or  development  of cultural  heritage.  Culture 
is not  merely  a  public  occupation  creating  extra  costs  but  also  an  increasingly  important 
part  of  the  private  economy  with  considerable  growth  potential,  fostering  creative, 
innovative  and  productive  effects  for  regional 'and  local  economies.  For  example,  culture 
contributes  significantly  to  content  and  applications  development  which  is one  of  the  key 
elements of competitiveness in the Information  Society. 

Art.  130a  of the  Treaty  on  European  Union  provides  that  the  Community  shall  promote 
actions  strengthening  economic  and  social  cohesion.  Given  the  conditions  defined  below, 
cultural  actions  can  fall  under  the  scope  of  this  provision.  Moreover,  Art.  128  of  the 
Treaty  states  that  the  Community  shall  take  cultural  aspects  into  account  in  its  other 
policies. 

1 COM (%)  109 final of 20 March  1996 

A comprehensive  definition  of culture  in its whole variety  is very  difficult.  Art.  128(2)  of 
the  Treaty  provides  for  a  Community  role  (coordination,  support  or  complementing  of 
Member  States'  actions)  in the  areas  of  improvement  of  knowledge  and  dissemination  of 
the  culture  and  history  of  European  peoples,  conservation  and  safeguarding  of  cultural 
heritage  of European  significance,  non-commercial  cultural  exchange,  as  well  as  artistic 
and literary creation  (including the audio-visual  sector). 

The Structural Funds Regulations do not specifically  mention culture but offer  some scope 
for  assistance to  cultural  measures in the context  of 

a)  productive  investment  to  permit  the  creation  or  maintenance  of permanent jobs  (Art. 

la ERDF regulation) 

b) 

investment  in infrastructure  (Art.  lb ERDF regulation) 

c) 

the development  of endogenous potential  in the regions by measures which  encourage 
and support  local development  initiatives (Art.  lc ERDF regulation) 

\ 

d) 

e) 

training  and  employment  schemes  in the  growing  tourism  and  leisure  sector,  as  well 
as in the arts sector (Art.  1  ESF  regulation) 

the  encouragement  of  tourist  and  crafts  investment  (including  improvement  of 
agricultural  property);  in  Objective  1 also  village  renovation  and  protection  of  rural 
heritage if not  covered by the ERDF (Art.  5 EAGGF  regulation) 

In  addition,  there  is  further  scope  for  innovative  pilot  projects  especially  enabling  co 
operation  and exchange of experience between regions or local entities 
(Art.  10 ERDF, Art. 6 ESF, Art.  8 EAGGF, Art. 4 FIFG). 

This  Communication  deals  with  culture  only  to  the  extent  that  it  is  linked  to  social  and 
economic  cohesion  and  regional  development  as  assisted  by  the  Structural  Funds.  The 
document  should  be  seen  in  the  context  of  the  Commission's  general  aim  of  identifying 
those  areas  with  still  under-utilised  employment  potential  within  Structural  Funds 
operations.  The  aim  is  to  provide  a  basis  for  discussion  of  the  scope  for  assistance  to 
culture by the Structural  Funds within the present  regulatory  framework. 

IL  CULTURE AND REGIONAL DEVELOPMENT 

Culture is linked to regional development  and the notion  of economic and  social  cohesion. 
Indeed,  culture  in  its  complexity  expresses  regional  or  local  identity  and  the  region's 
endogenous  potential.  Cultural  activities  are  in  particular  an  important  characteristic  of 
European  cities.  It  is,  therefore,  essential  to  integrate  the  assistance  to  culture  by  the 
Structural Funds into the Community's developing urban  policy.  At the same time regional 
or  local  culture  is  constantly  influenced  and  modified  by  interregional  or  international 
influences.  The  Commission's  new  call  for  proposals  for  interregional  cultural  co 
operation  by  regional  and  local  authorities  (1995-99)2  has  explicitly  acknowledged  that 
link. 

Under  the  present  regulations,  cultural  activities  are  only  eligible  for  funding  by  the 
Structural  Funds  if they  are  linked  to  regional  or  local  development;  this  means  that  they 
should  contribute to  sustainable employment  and form  an integral  part  of local  or  regional 
development  strategies. 

Culture  is  of  threefold  importance  for  regional  development.  Firstly,  culture  is  a  major 
source  of  employment;  activities  related  to  the  cultural  heritage  as  well  as  cultural 
products  and  industries  create  jobs  directly  and  indirectly.  Secondly,  culture  is  an 
increasingly  important  location  factor  for  further  investment  as it contributes  to  the image 
and attractiveness  of a region.  Culture can be an important  factor  in regenerating  deprived 
urban  or  rural  areas.  Thirdly,  culture  can  play  a  positive  role  in  promoting  social 
integration  and thus contribute to social  cohesion. 

/.  The employ ment potential  of culture 

There is still  a lack  of knowledge  about  the link between  culture and  regional  employment 
creation. European-wide  studies or figures  are not  available yet.  Firstly,  the cultural  sector 
is  not  homogenous  and  contained  within  different  categories  of  existing  statistics. 
Secondly,  variations  of  definitions  and  statistical  classifications  of  culture  between  the 
Member  States are enormous. 

2(C(95)253/11),  OJ  C 253 of 29.9.95. 

Despite  the  lack  of  statistical  information  available,  some  general  trends  are  discernible^ 
The  importance  of  culture  for  economic  development  and job  creation  has  already  been 
mentioned  in  the  Commission's  document  on  Local  Development  and  Employment 
Initiatives3.  Cultural  projects  are  often  directly  or  indirectly  linked  to  the  promotion  of 
tourism.  However,  apart  from  tourism,  the  cultural  sector  contributes  in  various  other 
ways, directly or  indirectly, to employment  and regional  development. 

A  central  factor  for  increasing  the  effectiveness  of  cultural  action  on  employment  is 
appropriate  investment  in  the  marketing  of  the  location  and  of  the  cultural  projects 
assisted  as well  as the improvement  of related  tourist  services. Tourism  and  culture are of 
mutual  benefit  to  each  other  and  can,  if supported  accordingly,  increase  the  employment 
effect  of  Structural  Funds  assistance.  In  addition,  relevant  accommodation  can  be  an 
important  factor. 

Development of culture and tourism in rural areas 

In  Viistra Sverige  (Sweden) the Objective 5b programme for  the period  1995 to 1999 
allocates  20% of  the Structural Funds contribution to a specific priority  "tourism and 
culture ". Amongst  other aspects the priority aims at the preparation  of a market 
atialysis,  the development  of an inventory of the area's  cultural resources as well as 
investment  in tourist facilities  such as visitors centres, accomodation,  museums and other 
cultural institutions.  It is estimated that the measure Mill directly and indirectly create 
approximately  100 new jobs. 

a)  Direct  employment  effects 

Culture  contributes  directly  to  employment  by  the  creation  of  new  enterprises,  in 
particular  SMEs. Moreover,  training and  education  in the area  of culture enhance the 
employment  potential  in the  region. The creation  of new skills and  professions  related 
to  culture  adds  further  new  job  opportunities.  Co-operatives,  associations  and 
foundations  which  often  work  with  socially  excluded  or  unemployed  people  play  a 
major  role  in  this.  In  particular,  the  expansion  of  cultural  products  and  industries 
linked  to  the  changing  way  of  life  is creating  an  increasingly  important  employment 
potential,  for  example  in  those  sectors  related  to  multi-media  and  the  information 
society 

3SEC(95)564 of March  1995 

Support for cultural and media industries 

Several  Objective  2 programmes  in  the  United Kingdom  for  the period  1994  to  1996 
provide  for  a  specific  measure  assisting  cultural  industries.  The  designation  wider 
programme  priorities  varies  according.to  the  regional  characteristics  ("Cultural  and 
producer  services",  "Tourism,  cultural  industries  and  image  enhancement"  etc.).  In 
some  of  the  larger  areas  (Greater  Manchester,  Lancashire,  Cheshire,  North  East, 
London,  Yorkshire and  Humberside)  the priorities  linked to culture  account for  11-17 
per  cent of total Structural  Fund allocation. 

For  example,  the  Single  Programming  Document  for  North  West  England  (Greater 
Manchester,  Lancashire,  Cheshire) provides  under the priority  "Tourism and  Cultural 
Industries  and  Image  Enhancement"  for  "Support for  cultural  and  media  industries". 
The objectives of the measure are 

the encouragement  of long-term growth and employment by a  coordinated 
strategy for  cultural industries (in particular  SMEs) 
the exploitation  of growth and employment potential  of  media-related 
industries  (including the information society) 
improving  networking and collabora/ion within the cultural  industries 

It  is  estimated  that  about  700  businesses  will  be  assisted  creating  or  safeguarding 
around 2000  jobs. 

Estimates suggest  that  approximately  400 MECU under the  Structural  Funds  programmes 
1989-1993 went  directly to the cultural  sector.  However,  due to the programme  approach 
any  figures  have  to  be  handled  with  caution.  As  cultural  action  is  often  hidden  under 
various  other  measures,  there  are  no  precise  figures  available.  Moreover,  the  seemingly 
low quantitative  contribution  to  culture by the.Structural  Funds  has to  be  seen  in  relation 
to  its  qualitative  impact.  Being  quantitatively  significantly  less  costly  than  investment 
required  by infrastructure,  support  for  culture  can  contribute  as  significantly  as  the  latter 
to the improvement  of local or regional  attractiveness. 

Conservation of historic  buildings 

Between  1986  and  1992  the  Integrated  Mediterranean  Programme  (IMP) for  Crete 
supported  with  the participation  of  the ERDF  the renovation  of  the  historic  centres  of 
Chania  and  Rethimnon  (Greece).  The Community  contributed  4.9 MECU  to  the  total 
cost  of  7 MECU.  The  measures  include  the  securing  and  refurbishment  of  historic 
buildings  and  monuments  as  well  as  improving  their  environment  and  access.  The 
scheme  is an example for  the combination  of preservation  of architectural  heritage  with 
environmental  improvement  resulting  in a  considerable  increase  in  the attractiveness  of 
the locations for  tourists. 

Within the Community  Support Framework for Italy  1989 to  1993 the ERDF  contributed 
to  the  restoration  of  the  Castle  of  Lagopesole 
in  Avigliano  (region  of  Basilicata  in 
Italy).The  project  is a good  example  of  the combination  of preserving  cultural  heritage 
with commercial  use, cultural research as well as environmental protection.  Firstly,  the 
refurbished  castle will accommodate  the Frederician Institute of the National  Council for 
Research,  charged  with  the  restoration  and re-utilisation  of  historic  monuments  in  the 
Mezzogiorno  as well as environmental monitoring. Secondly,  the  building will house  the 
national  centre  for  the  safeguarding  of forests.  Thirdly,  the  co-operative  of  the  castle 
based  in  the renovated  building  organises guided  lours,  conferences,  exhibitions,  music 
and  theatre events. A restaurant for  visitors is managed by the same  co-operative. 

b)  Indirect  employment  effects  and  the  image  factor  of  culture  -  improving  the 

quality  of locations 

The  borderline  between  direct  and  indirect  employment  effects  is  not  fixed:  in  the  long 
run,  direct  effects  are often  complemented  by additional  indirect  effects.  A good  example 
in this context  is start-up assistance to theatre or concert  halls, as well as museums. 

The  effects  of  cultural  attractions  go  far  beyond  simply  attracting  additional  tourists. 
Amongst other  aspects, the creation  or maintenance of SMEs related to the cultural  sector 
(support  and  assistance  services,  suppliers,  construction  firms,  training  centres,  booking 
services) offers  increasingly  important  potential for the creation  of employment. 

The  importance  of the  indirect  effects  of  culture  and  the  role  of  culture  in  improving  the 
image  and  attractiveness  of  a  region  or  location  are  still  underestimated.  Cultural  life  is 
increasingly  part  of the  environment  which  attracts  investment,  especially  in  modern  and 
innovative  sectors.  In an increasingly  mobile world,  decision  makers  (i.e.  on  locations  for 
investment)  take  account  of  location  assets  such  as  the  cultural  or  natural  environment 
when  deciding  between  competing  locations  (decisions  related  to  the  choice  of  working 
and living places are very often  closely linked). 

2,  Culture, local development  initiatives and sustainable  development 

Cultural  measures  are  most  effective  where  they  form  part  of  a  strategic  concept  for 
sustainable  development.  Economic  development,  social  cohesion,  environmental 
protection  and cultural  action are interrelated  and not necessarily opposed  to each  other. 

Culture, sustainable  development and industrial  conversion 

An  exemplary  project  for 
the  integration  of  culture  into  a  strategy  of  sustainable 
development  is  the  "Zechenbahn  Ruhrgehiet"  (Germany).  Within  the framework  of 
RECHAR  II  (1994-1997)  the  Structural  Funds  will  assist  the  renovation  of  a  disused 
network  ofraihvays  linking  coalmines  and steelworks . An  important part  of  the  project 
is the renovation  of  old stations  and  buildings along  the network, reflecting  the  regional 
heritage  of  industrial  architecture.  The  integration  of  the  preservation  of  industrial 
heritage  into a major scheme of tourism and urban development (including  simultaneous 
recycling  of  disused  industrial  sites)  while  improving  the  regional  image,  attracting 
visitors  and  creating  employment,  illustrates  how  culture  can  be  included  in  local 
development  strategies. 

This is most  evident  at  the  local  level  where  often  very  specific  conditions  are  important 
for  the  success  of  any  development  strategies  (i.e.  "local  software":  local  innovation  and 
business  culture,  community  organisation,  technical  skills,  specific  architecture);  local 
development  initiatives  are  therefore  a  central  tool  for  the  "capitalisation"  of  cultural 
assets.  Culture  can,  for  example,  be  a valuable  part  of urban  development  concepts  as  its 
infrastructural  aspects  improve  physical  attractiveness  and  local  quality  of  life  as  well  as 
the  location  image  while  productive  investment  in  cultural  business  creates  long-term 
employment. 

Cultural training and urban regeneration 

Another  remarkable  example for  the  inclusion  of  culture  into  an  urban  redevelopment 
project  is  the  revitalisation  of  the  historic  centre  of  Marseille  by  the  "Cité  de  là 
Musique" in the city's Belsunce district.  The project  (total cost 10 MECU)  has  received 
4  MECU  from  the  ERDF  as  an  Urban  Pilot  Project  under  Article  10  of  the  ERDF 
regulation.  The focus  of  the project  is  on  musical  training  aimed  at  students,  pupils, 
business  people,  workers  and  residents.  It  is  based  on  a  cultural  policy  concept 
concerned with multi-cultural  music,  creativity, visual presentation  and concerts  offering 
the most  deprived  inhabitants  of  the quarter -young  unemployed  immigrants-  a sense  of 
direction.  This should  enable  them  to  create an  identity  and  to  draw  up plans for  their 
future  as  well as  to develop  communication  between the  inhabitants  of  the quarter  and 
those living elsewhere in the city and thus fostering greater  openness, cultural and  social 
inclusion. 

Moreover,  cultural  activities  often  encourage  people,  whether  insufficiently  trained  or 
disabled  and  threatened  with  exclusion  from  the  labour  market,  to  make  an  effort  for 
being economically  and  socially reintegrated^ 

Culture, social integration, training and tourism 

In  Kolding  (Denmark)  a  group  of  young  people  excluded  from  the  labour  market 
tranformed  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  experience.  After  a  basic  course  (history, 
languages,  working  as  tourist  guide)  the participants  could  choose  from  a  number  of 
training courses  (electronics, marketing,  meta} 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. 

In rural  areas,  products  and  activities are often  closely  linked  to  the cultural  origins  of the 
region.  Specific  manifestations  of  this  type  of  cultural  heritage  are  for  example  wine 
festivals  linked  to  the  grape  harvest,  traditions  of  local  bread  making  as  well  as  special 
forms  of  the  transhumance  economy  in  Alpine  regions.  While  offering  the  potential  for 
regional  development  and  tourism,  they  reinforce  the  identification  of the population  with 
their  location.  In  the  framework  of  the  LEADER-initiative,  for  example,  numerous 
projects  at  local  level  are related  to  cultural  aspects.  They  contribute  to  the  promotion  of 
regional  identity,  the  valorisation  of  cultural  heritage,  the  creation  of  permanent  cultural 
infrastructure  (eco-museums,  culture  centres)  as  well  as  the  organisation  of  specific 
cultural  activities (festivals,  travelling cinemas). 

Cultural  activities  are  most  effective  when  they  profit  from  the  region's  endogenous 
potential.  Conversely,  assistance  to  cultural  products  and  industries  contributes  to  the 
strengthening  of  regional  endogenous  potential.  Culture  related  businesses  generally 
depend  to  a  large  extent  on  local  or  regional  supplier-  and  customer-networks  and, 
therefore,  are attached  more closely to regions or locations than other forms  of  productive 
investment.  Moreover,  most  cultural  industries  are  relatively  labour  intensive  and  thus 
contribute  significantly  to  employment.  Cultural  investment  (cultural  industries  as  well  as 
cultural  infrastructure  including  cultural  heritage)  improves  the  region's  competitive 
situation  against  other  rival  locations and  constitutes  a particularly  valuable  investment  in 
regional or local  performance. 

Cultural industries and heritage as an integral  part  of a local development  initiative 

An outstanding  example for  the revitalisation of a derelict  inner-city district  through the 
development  of facilities  which provide  support for  the growth  of  SMEs  in  the  cultural 
sector is the  Temple Bar project  in Dublin.  The project  is exemplary for  the  integration 
of culture into a comprehensive  local development strategy  consisting  of  various  aspects 
such  as  residential  property,  environment,  retail,  restaurants  and  hotels  as  well  as 
marketing. 

The long-term  project  has  involved  the  creation  of  various  cultural  centres  (the  Irish 
Film  Centre,  artists'  studios,  art  galleries,  exhibition  spaces,  a  Viking  museum,  a 
jewellery  design centre, a children's  theatre etc.).  Frequent festivals  are held  in the area. 
Over  the  four  years  period  to  December  1995,  120 MECU  of public  money  (EU  and 
national)  has reinforced  70 MECU  of private  investment,  1200 jobs  have  been created  in 
the cultural and services sectors,  72 new businesses have located  in  Temple Bar,  and  150 
people  have  been  trained  in  the  cultural  and  environmental fields.  Temple  Bar  is -now 
considered to be the third most popular  destination for  tourists in Dublin. 

A cautious  inclusion  of  culture  in  the  formulation  of  tourist  or  economic  development 
strategies  rather  than  the  building  of  "new  attractions"  encompasses  a  sustainable 
approach towards local or regional  development. 

Combine.d  with  conventional  types  of  mass-tourism  (i.e.  along  the  coastlines  or  in  skiing 
resorts)  culture  can  contribute  to  alternative,  more  dispersed  and  thus  more  sustainable 
forms  of  tourism.  In  addition  culture  may  even  out  seasonal  peaks  or  troughs  and  thus 
contribute to additional  employment. 

10 

Conservation  of archaeological sites and non-seasonal  tourism 

In  the  north-western part  of  Sicily  the ERDF  contributed  under  the  multifund  regional 
programme for  Sicily  to the excavation  of the city ofSegesta.  The assistance  of 3 MECU 
by the ERDF financed  considerable parts  of the whole scheme,  including  the  uncovering 
of  the  Agora,  the  old  city  wall,  as  well  as  remains  of  an  old  Arabic  city  and  a  later 
Norman  settlement.  The  complex  attracts  many  tourists  at  all  seasons  and  gives  an 
example  of  the  Structural  Funds'  contribution  towards  strengthening  non-seasonal 
tourism  and permanent  culture  related  employment.  Moreover,  in  spring  and  summer 
various  cultural  events  (theatre,  concerts)  in  the  old  Greek  theatre  enhance  local 
attractiveness. 

3. 

Interregional/international  exchange  of culture  - a special role for  the  Community 

While the integration  of cultural  projects  into  local  or  regional  development  backgrounds 
is vital,  the  exchange  of  experience  between  locations  of  different  cultural  situations  can 
be  very  valuable  for  innovation.  The  transfer  of  knowledge  can  be  an  important  tool  to 
enable  local  or  regional  communities  to  make  best  use  of  their  cultural  assets  (e.g. 
marketing) rather than delegating this task to consultants outside the region. 

The  Commission  plays  a  special  role  in  this  context  to  enable  the  necessary  contacts. 
Various  projects  of  cross  border  cultural  activities  have  in  the  past  been  funded  by  the 
Structural  Funds  programmes.  The  Commission's  call  for  proposals  for  interregional  co 
operation  in the field  of culture under  Article  10 ERDF regulation,  in particular,  addresses 
this issue and provides until  1999 for  co-operation  in the areas of 

-  historical  and architectural  heritage 

- 

industrial  and technological  heritage 

-  crafts  heritage 

H 

The scheme is designed  to 

-  foster  an integrated  approach to development by mobilising regional  and local  actors 
in the fields  of politics and administration,  in the public and private sector and non 
profit  making associations; 

-  promote exchanges of experience and know-how in the cultural  sphere between 

regional  and local authorities with a view to contributing to Community  cohesion; 

-  promote the use of new information  and communication  technologies. 

Out  of 228  projects  eligible,  the  Commission  has chosen  33  projects  which  put  emphasis 
on the dimensions  of interregional  cooperation  and  local development.  The  projects  are in 
particular aimed at innovative approaches in the above areas. 

Linking  interregional cooperation with culture and modern  technology 

Under  the  leadership  of  Antwerp  the  regions  and  cities  of  Uusimaa  (FIN),  Palermo 
(IT),Tuscany  (IT),  Porto  (POR),  and  Newcastle  (UK)  will  create  a  virtual  European 
museum  on  historical  heritage  via Internet, aimed  amongst  others at fostering  tourism 
development.  The ERDF will contribute ECU 600.000  to (he project's  total cost of 1.165 
million  ECU. 

In  the  context  of  local  initiatives  in  rural  areas,  cultural  aspects  are  an  integral  part  of 
Community wide interregional  networking  under the LEADER  Community  Initiative.  The 
network  enables  contacts  between  local  action  groups  and  discussion  amongst  them  on 
subjects  such  as  regional  identity  or  marketing  of  specific  regional  products.  Also,  the 
development  of transnational  projects  such as the Celtic Route,  resulting from  cooperation 
between LEADER groups in France in the United Kingdom,  are  supported. 

IILLIMITATIONS  AND  REMAINING  POTENTIAL:  PERSPECTIVES 

F Ok  THE  FUTURE 

Compared  with  other  explicit  assistance  to  culture  by  the  Community,  the  Structural 
Funds are already  the largest  financial  contributor  to  projects  directly  and  indirectly  linked 
to  culture.  Unused  potential  remains  for  assistance  to  cultural  actions  even  within  the 
limitations of the current  regulations. 

As the  least  favoured  regions  of  the  Community  present  a  high  concentration  of  cultural 
potential,  assistance  to  culture-related  projects  in  these  regions  by  the  Structural  Funds 
offers  additional  ways  to  strengthen  their  underperforming  economies.  The  integration  of 
a  cultural  dimension  in  tourism  development  strategies  offers  further  opportunities  for 
alternative  and  more  dispersed  sustainable  forms  of  tourism,  and  hence  contributes  to 
additional  employment. 

12 

As  cultural  life  is  increasingly  recognised  as  an  important  factor  for  the  image  and 
attractiveness  of  a  region  for  potential  investors,  the  cultural  sector  offers  new 
opportunities  to  cope  with  industrial  decline.  Cultural  industries  and  products  carry  a 
considerable  growth  potential  and  thus  contribute  to  long-term  employment.  Integrated 
into urban development  concepts, culture related business can add creative and  innovative 
aspects to urban  regeneration.  The exploitation  of industrial  and  technological  heritage in 
these areas can also contribute to alternative employment  creation. 

In  rural  areas  the  exploitation  of  cultural  heritage  along  with  cultural  products  and 
industries offers  new opportunities to cope with problems of depopulation  and  abandoned 
villages,  and  adds  further  perspectives  for  the  attraction  of  complementary  economic 
activities.  The  integration  of  culture  in  rural  development  strategies  is  vital  to  exploit 
traditional  activities  as  assets  for  regional  development  and  tourism  while  adding 
significantly  to the identification  of the rural population with their locality 

/.  Assistance  to cultural activities on the initiative of the Member  States 

The  quality  of  assistance  to  culture  under  the  Community  Support  Frameworks  and 
Community Initiatives relies on the strategies and  ideas of the Member  States and thus the 
regions  and  local  communities  concerned.  A  "bottom-up"  approach  in  the  design  of 
cultural  activities  corresponds  with  the  close  link  between  culture  and  the  endogenous 
potential  of the  region.  As regards the interregional  exchange  of experience  in the area  of 
culture, the emphasis of any action  should be put  on innovation  rather than  imitation  while 
being based  on the endogenous potential  of the regions. 

Intensified  assistance  to  culture  in  this  context  should  be  appreciated  with  respect  to  its 
potential  for  employment  creation,  its  link  to  regional  development,  and  its  integration 
into  regional  and  local  development  initiatives.  Culture,  apart  from  being  part  of  the 
regional  or  national  heritage,  is also  an  economic  asset.  Future  action  should  make  more 
use of the increasing employment  potential  of innovative and creative culture products and 
industries,  for  example  those  linked  to  multi-media  and  the  information  society.  The 
Commission  invites  the  Member  States  to  propose  innovative  and  commercial  measures 
going  well  beyond  the  "classical"  assistance  to  the  cultural  heritage  or  being  linked  to 
tourism.. 

In  application  of  Articles  130A  and  128  of  the  Treaty  as  well  as  of  the  subsidiarity 
principle,  further  reflection  could  enhance  the  link  between  the  Structural  Funds  and 
cultural  action.  In  future,  the  question  of  clearer  eligibility  criteria  for  development 
projects  with  a  cultural  basis  will  have  to  be  addressed  in  a  flexible  manner  to  take 
account  of  regional  differences  in  circumstances  and  needs.  Eligibility  criteria  -  and,  if 
necessary,  the  specification  of evaluation  methods  - could  help  to  clarify  the  contribution 
of the Structural  Funds to Culture. 

13 

Furthermore,  research  towards  improving  knowledge  about  the  link  between  cultural 
action,  image  and  regional  development,  especially  jobs  (i.e.  inputs  and  outputs  of 
"image")  should  be intensified  and  an explicit  evaluation  be carried  out  of its potential  to 
create new employment,  which should  emphasise  cost-effectiveness. 

2.  Pilot projects  under Article  10 of the ERDF regulation 

Article  10 of the  ERDF regulation  will continue to  give the  Commission  the  opportunity 
to  assist  those  projects  which  need  special  guidance  or co-ordination  at  a European  level. 
The  experience  gathered  through  projects  of  interregional  cultural  co-operation,  up  until 
1999 should, after  a period  of experimentation,  offer  further  guidance for their  application 
and dissemination  within the Community  Support Frameworks and Community Initiatives. 

Moreover,  Article  10  of  the  ERDF  regulation  should  continue  to  be  used  as  a  tool  for 
experimental  measures  going  beyond  the  scope  of  the  Community  Support  Frameworks 
and  Community  Initiatives,  such  as  exchange  of  experience  or  innovation  in  the  field  of 
culture. 

In this regard,  and  in the years to  come,  synergy will be sought  between  these  actions  for 
regional  development  and  cooperation  and  those  undertaken  in  the  framework  of  the 
Community's  cultural  programmes.  It  will,  in  particular,  be  necessary  to  strengthen 
common cultural  heritage and the latter's  role in providing a sense of Union citizenship. 

IV. CONCLUSION 

The  increasing  importance  of  culture  for  regional  development  has  to  be  seen  in  the 
context  of the restructuring  of the economy  as well  as a result  of changed  ways of life.  In 
this  perspective,  the  cultural  sector  should  be  further  exploited  to  enhance  and  diversify 
the local  and  regional  development  potential  of both  the  least  favoured  regions  and  those 
suffering  from  stmctural change 

As  culture  is  often  treated  in  a  manner  isolated  from  other  factors  of  development  or 
image, it, will be important  to address culture as a  more integral  part  of regional  and  local 
development  strategies  towards  new  employment.  Moreover,  to  maximise  innovation  and 
employment  effect,  there  is scope  for  further  synergie between  support  to  culture  by  the 
Structural  Funds  and  other  related  Community  programmes  (e.g.  R&D  programmes  such 
as multimedia  support  networks uner ESPRIT, Media II, Info  2000) 

Assistance  to  culture  by  the  Structural  Funds  not  only  enables  the  preservation  and 
development  of  cultural  assets  (i.e.  the  cultural  heritage),  but  also  productive  investment 
in cultural  industries  and  products.  As a rapidly  expanding  sector  of the  private  economy, 
cultural  industries  and  products  provide  for  a considerable  growth  potential,  for  example 
in the sectors linked to media. 

14 

The potential  role of the Structural  Funds in this context  is yet  not  fully  exploited.  In view 
of the programme  approach  as well  as the  importance  of development  concepts  based  on 
endogenous  potential,  the  Member  States  and  regions  concerned  play  a  central  role  in 
giving more effective  weight to cultural action under the Structural  Funds. 

15 

ISSN 0254-1475 

COM(96) 512 final 

DOCUMENTS 

EN 

01  16  04 

Catalogue number  :  CB-C0-96-599-EN-C 

ISBN 92-78-11738-2 

Office  for Official  Publications of the European Communities 

L-2985 Luxembourg