Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions - The new regional programmes 1997-1999 under Objective 2 of the Community's Structural Policies - focusing on job- creation
Date: 1997-11-14
Institutions: European Commission
Subjects: European Regional Development Fund, European Social Fund, job creation, regional planning, structural policy

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 14.11.1997 _ 
COM(97) 524 final 

COMMUNICATION FROM THE COMMISSION 

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

The New Regional programmes 1997-1999 
under Objective 2 of the Community's Structural Policies -focusing on 

job-creation 

TABLE OF CONTENTS 

I 

INTRODUCTION 

Purpose of the Communication 
Two separate programming periods 

II  THE CONTEXT OF THE NEW PROGRAMMES 

The informal meeting of Ministers in Madrid 
The eligible regions 
Financing 
The Objective 2 guidelines 

III  THE CONTENT  AND QUALITY OF THE PROGRAMMES 

The frame  of reference 
The added value from the negotiation 
Analysis of the development  priorities 

IV  CONCLUSIONS 

ANNEX  1 
ANNEX 2 
ANNEX 3 
ANNEX 4 
ANNEX 5 

Distribution of resources by Fund 
Breakdown by expenditure category 
Fiches by Member  State 
Expected  Impact on Employment 
Territorial and Local Employment Pacts Projects 

£ 

L INTRODUCTION 

Purpose of the Communication  - an overview of the new Objective 2  programmes 

the 

industrial  regions 

During  the  first  half  of  1997,  the  Commission  approved  the  65  new  Single 
Programming  Documents  (SPDs)  and,  in  the  case  of  Spain,  a  Community  Support 
Framework  (CSF)  for 
in  decline  (Objective  2).  This 
(Communication  encompasses  the  principal  elements  of  Community  assistance 
programmed  in favour  of the  Objective  2 regions for  this second  programming  period 
1997-1999.  It  complements  a  similar  document  covering  both  the  Objective  1 and  2 
programmes  approved  in  1994(1).  The  SPDs  for  Austria  and  Sweden  have  not, 
however, been included in this paper since these two Member  States opted  for  a  5-year 
Objective  2  programming  period  1994-1999  and  summaries  of  their  Objective  2 
programmes  may  also  be  found  within  a  separate  Commission  Communication  (2) 
covering all the new Member  States. 

From a cross-reading of the texts, the Communication  summarises the expected  impact 
of this assistance on the economic development  of the beneficiary  regions, especially in 
terms  of  employment  and,  inter-alia,  the  extent  to  which  the  policy  priorities  for 
Objective  2  outlined  in  guidance  provided  by  the  Commission  to  Member  States  (3) 
have  been  taken  into  account.  The  guidelines  for  Objective  2  actions  reflect  the 
Union's  general  strategy  for  employment  as,  for  example,  in  the  Commission's 
Confidence  Pact  for  Employment,  or  more  recently,  in  the  Amsterdam  Resolution  of 
June  1997 which  enshrined  the priority to be given to fighting  unemployment. 

The distribution  of resources  between  the Funds  (ERDF  and ESF)  by region  is shown 
at  Annex  1  and  a  breakdown  by  expenditure  category  is  provided  at  Annex  2. 
Summaries  of the key  elements  of  the Programming  Documents  by Member  State  are 
given  at  Annex  3,  in  particular  their  Regional  Development  Strategies,  Priorities  and 
Expected  Impacts.  Annex  4  provides  an  overall  assessment  of  expected  results  in 
terms  of job-creation  and  maintenance  (the  new  programmes  forecast  the  creation  or 
maintenance  of  880,000  gross jobs),  with  Annex  5  listing  the  Territorial  and  Local 
Employment Pacts being pursued in the Objective 2 regions. 

(1)  COM(95) 111 final of 29 March  1995, The new regional programmes under Objectives  1 and 2 of 

the Community's structural policies. 

(2)  Communication of the Commission on the implementation of E.U. Regional Policies in Austria, 

Finland and Sweden.  COM(96)316 final of  3 July 1996. 

(3) C(96)952 final of 29 April  1996, Note for Guidance concerning operations in the declining 

industrial areas (Objective 2) for the second programming period 1997-1999. 

3 

Two separate programming periods  - taking account of new priorities 

In the interests of making the decision-making procedure as straightforward as possible 
for  the  new  Objective  2  programming  period,  the  Commission  considered  the 
possibility  of expanding the  1994-1996  Programming Documents to the end of  1999. 
This  took  account,  in  particular,  of  views  expressed  at  the  Informal  Meeting  of 
Ministers  in  Venice  on  3-4  May  1996  regarding  the  desirability  of  continuity  in 
Objective  2  interventions.  However,  it  was  decided  to  proceed  on  the  basis  of  two 
separate  Objective  2  programming  periods  in  conformity  with  Article  9(6)  of  the 
Framework Regulation.^ This approach was also considered by the Commission to be 
the most  acceptable  in terms  of  effective financial management  whilst  also  providing 
greatest  opportunity for increasing the quality and effectiveness  of programmes  in the 
light of the Objective 2 guidelines (see below), especially in terms of job-creation. 

H. THE CONTEXT OF THE NEW PROGRAMMES 

The informal meeting of Ministers in Madrid - a preliminary debate 

Changes made as part of the revision  of the Structural  Funds regulations  in  1993 had 
established  an approach to the selection of Objective 2 regions based  primarily on the 
need for close cooperation between the Member States and the Commission.  In these 
circumstances,  lengthy  negotiations  were  required  to  reach  agreement  on  the  list  of 
eligible  regions  and,  subsequently,  to  agree the Objective  2 Programming  Documents 
for  the  period  1994-1996.  This  meant  that final discussions  could  only  take  place 
during  the  second  half of  1994  with the  delays  having  also  been  exacerbated,  in the 
view of some Member States, by a lack of clarity regarding the Commission's priorities 
under Objective 2. 

In this  regard,  the  Informal  Meeting  of Ministers  responsible  for  regional  policy  and 
spatial  planning  which  took  place  in  Madrid  towards  the  end  of  1995  provided  an 
opportunity  for  a preliminary  debate  on the  second  Objective  2  programming  period 
1997-1999.  Whereas  Member  States  supported, 
increased 
concentration of Structural Funds resources on the worst affected  areas, it was agreed 
that a complementary  thematic concentration  was the prime requirement  at that time, 
particularly concerning measures with a short to medium-term impact on job-creation. 
The Commission was asked to make its priorities known as soon as possible in order to 
assist the programming work that the Member States needed to do. 

in  principle, 

the 

U 

The eligible regions - continuity with the previous period 

Compared  to  the  previous  period  1994-1996,  the  list  of  regions  eligible  under 
Objective 2 for  the new period therefore  remained  largely unaltered  apart  from  some 
minor changes within certain Member States(4). The percentage of population eligible 
for  Objective  2 however remained unchanged  at the level of each Member  State and 
overall  Objective  2  coverage,  amounting  to  16.4  %  of  the  total  population  of  the 
European Union, also therefore stayed the same as in 1994-1996. 

Financing - increased resources 

The funding  available for  1997-1999, in line with the  Structural Funds budget  profile 
agreed  at the  1992 Edinburgh European Council, amounted  to  some ECU 8.2 billion 
(at  1997 prices). This comprised a real increase of  13.8 % compared to the previous 
programming period  1994-1996. On the basis of preliminary estimates,  an amount of 
around ECU  859 million of unutilised  resources will be transferred from the previous 
period  and  this  has  also  been  added  to  the total.  As  shown  in  the table  below,  the 
proportion  of  1994-1996 funding  to be transferred  varies from  23 to 26% for Finland 
(1995-96),  Italy,  Luxemburg  and  Netherlands  to  between  5 and  7 %,  for  Denmark, 
Germany  and  U.K.,  representing  an  average  carry-over  of  resources  unused  from 
1994-1996 of about  12 %. The overall resources available for the second Objective 2 
programming period therefore amount to ECU 9.148 billion. 

MEMBER  STATES 

1997-1999 

BELGIUM 

DENMARK 

GERMANY 

SPAIN 

FRANCE 

ITALY 

LUXEMBURG 

NETHERLANDS 

FINLAND 

187.398 

65.539 

861.077 

1328.923 

2037.721 

798.000 

8.066 

361.975 

119.148 

UNITED  KINGDOM 

2520,718 

TOTAL 

8288.565 

(4)  OJ N° L  193/54 of 3 August  1996  refers. 

Carried-over 
from  1994-6 

% 
Carry 
over 

Ecu millions 

TOTAL 
1997-1999 

(inc.  carry-over) 

18% 

216.147 

5% 

5% 

68.232 

901.133 

14% 

1485.046 

12 % 

2246.280 

2 4% 

2 5% 

2 6% 

2 3% 

967.745 

9.837 

442.119 

135.293 

7% 

2675.777 

1 2% 

9147.609 

28.749 

2.693 

40.056 

156.123 

208.556 

169.745 

1.771 

80.144 

16.145 

155.059 

859.041 

5~ 

The Objective 2 guidelines  - the paramount priority for  jobs 

The  Note  for  Guidance  transmitted  by  the  Commission  to  the  Member  States  on 
30  April  1996  established  job-creation  as  the  paramount  priority  for  the  new 
Objective 2 programmes 1997-1999, especially by improving production structures and 
raising qualification  levels in the work force.  The guidelines similarly emphasised that 
a concentration  on productive investment to  improve the growth  and competitiveness 
of  industry  required  any  proposed financing of  basic  infrastructure  to  be  specifically 
justified  in  terms  of  regional  development  needs.  Such  investments  also  had  to  be 
integrated  within  and  directly  contribute  to  the  synergy  and objectives  of  the  overall 
programme, in particular to the safeguarding of existing and the creation of new jobs. 

The overall aim of safeguarding  and promoting  employment was underpinned by four 
specific priorities: 

-  Competitiveness  and Development of SMEs. 

This implied a fools on indigenous potential  and better analysis of local business 
needs as well as meeting the challenges posed, for example, by the emergence of 
the  Information  Society  and  the  need  for  total  quality  management.  In 
complementary fashion to the focus on indigenous potential,  attention needed to 
be  paid,  by  means  of  local  development  and  employment  initiatives,  to 
developing new sources of employment to meet new needs not yet having found 
an adequate  response.  In this  context,  specific  training  adapted  to  owners and 
managers,  as well  as adaptation  of the workers'  skills,  would  contribute  to  the 
stability and growth of SMEs. 

Research  and  Development,  Innovation  and  a  Labour-force  qualified  in 
future  technology 

With research and development facilities generally already in place in higher and 
further educational  institutions, the use of existing assets needed to be optimised 
and  improvements  made  in  industrial  cooperation  and  joint  ventures.  The 
practical application of research results and technology transfer to local business 
and industry was also a key aim of R&D investment financed by the Structural 
Funds in Objective 2 regions.  The new programmes should increasingly provide 
for training linked to the job opportunities  afforded  by technological  innovation 
in order to ensure a supply of qualified workers. 

-  Environment and Sustainable Development 

In  recognising  the  complementary  nature  of  the  environment  and  regional 
development,  measures  might  be  pursued  under  two  main  themes.  Firstly, 
tackling  past  industrial  damage  and  improving  the  physical  environment  as  a 
factor  for  increasing the attractiveness of the region for  business  development. 
Secondly, exploiting eco-products, environmental services and technologies as a 
potential  source  of  future  competitive  advantage.  Appropriate  provision  for 
promoting  environmental training and  awareness also needed to be included in 
programmes. 

-  Equal opportunities 

The promotion  of equality of opportunity between  men and women in the new 
Objective 2 programmes might include measures aimed at reconciling family and 
professional  life,  increasing  employment  opportunities  for  women  and  the 
provision of facilities for distance learning and other training. 

Apart  from  the  programme  priorities  outlined  above,  evaluation  of  the  1994-1996 
Objective 2 programmes had also indicated a number of ways in which the content and 
quality of conversion plans and Programming Documents might be improved  for  the 
1997-1999  period.  The  guidelines  therefore  included  a  reminder  of  the  need  for 
improvements in the application of the principles of partnership  and additionality and 
for the inclusion of quantified indicators of impact, especially as regards job-creation. 

m.  THE CONTENT AND QUALITY OF THE PROGRAMMES 

With the Objective 2 list of eligible regions for  1997-1999 having been established on 8 
May  1996, the large majority  of Member  States'  conversion  plans were submitted to 
the Commission by the end of August-September  of that year in accordance with the 
regulatory provisions in this regard. 

i) The frame of reference. 

a) Lessons of the past 

Although not all evaluations of the  1994-1996 programmes had been completed when 
the programmes were being prepared,  a number of the new SPDs demonstrated  that 
lessons had been learnt from the previous programming  period  and incorporated  into 
their preparation phase. This related in particular to the context, analysis and design of 
the  strategy.  A  good  example  related  to  the  plan  for  Aquitaine  (F),  where  the 
evaluators played  an important role in re-designing the strategy along clear and well-
argued  objectives,  as well as reinforcing  synergies within the programme. In general, 
plans  based  partly  or  wholly  on  evaluations  or  lessons  learnt  from  previous 
programmes  appear to have benefited  from  clearer  and better focused  strategies  as a 
result. 

* 

b) Ex-ante  appraisal 

Likewise,  in  conformity  with  Article  9(9)  of  the  Framework  Regulation,  and  in  the 
interests  of  increasing  their  overall  quality  and  effectiveness,  all  the  plans  were 
subsequently  the  subject  of  ex-ante  appraisal,  particular  attention  being  paid  by  the 
assessors to the following  elements: 

- the  extent  to  which  the  priorities  outlined  in  the  Commission  guidelines  had 
been  taken  into  account  in  the  plans,  and  the  degree  to  which  they  had  been 
integrated  within the proposed  measures; 

- the quality  of analysis of the area  concerned,  including  the  identification  of the 
principal  barriers  to  sustained  growth  and  the  identification  of  development 
potential; 

- an appreciation  of the strategy  presented  in each  SPD, especially the  coherence 
their 

the  declared  objectives  and 

the  resources  devoted 

to 

between 
-achievement; 

- the appropriateness  of quantified  indicators and targets,  particularly with  regard 
to key impacts on regional GDP, employment  and the environment.  As regards 
job-creation,  a  particular  issue  was  the  degree  to  which  the  Commission's 
guidelines  on  the  evaluation  of  employment  effects(5).  had  been  pursued 
especially 
in  relation  to  the  clarity  and  transparency  of  the  supporting 
calculations. 

-With  regard  to  the  environment,  the  key  issues  concerned  the  quality  of  the 
environmental  assessment  of the  area  concerned  and  the  environmental  impact 
of the strategy  and related  actions presented by the Member  States. 

Where  the  evaluators  identified  shortcomings  in  the  plans  initially  submitted,  (see 
below) joint  efforts  were, of course,  made to  improve  their  content  and  quality  during 
negotiation  of  the Programming Documents. Key issues were as follows: 

i) Respect of the Objective 2 guidelines 

In  general,  the  proposed  programmes  included  the  policy  areas  emphasized  in  the 
guidelines  although  the content  and  quality  of their integration  into  the proposed  plans 
varied  considerably  between  the  regions.  Employment  remained  the  main  focus  of all 
the  programmes,  although  the  effects  of  certain  of  the  proposed  measures  on  job 
creation  were  sometimes  regarded  by the evaluators as being too limited or indirect.  As 
a  result,  in  a number  of  instances,  e.g.  U.K.,  the  negotiations  resulted  in  an  increased 
allocation  to measures better able to create quality jobs in the regions. 

151 Technical  Noie on  Ex-ante estimation of employment  effects  from  Structural  Funds  interventions 
(mailable  as  •"Counting  ihe  jobs  -  How  to  evaluate  the  employment  elTecls  of  Structural  Fund 
interventions"  - DG XVI  Series  : EVALUATION  and  Documents No  1. January  1097). 

Most  plans  also  favoured  the  promotion  of  SMEs  and  indigenous  potential  as  a 
driving  force  of  regional  economies.  A  number  of  measures  related 
the 
environment  but  some  were  initially  too  focused  on  support  for  activities  such  as 
environmental  and  operational  improvements  to  general  infrastructure  and  services 
rather  than  on  business  opportunities  arising  from  environmental  technologies.  Even 
so,  it  is  evident  that  the  latter  activities  are  also  being  carried  out  to  some  degree 
through  generic  R&D  and  sectoral  development  measures. 
Indeed,  R&D  and 
innovation  -  related  actions  were  recognized  in  many  programmes  as  an  important 
element  in  a  strategic  approach  which  sought  to  develop  competitive  and  sustainable 
local businesses. 

to 

The principle of  Equality  of Opportunities  between  men  and  women  had  not  always 
been  fully  addressed  in  the  plans  at  the  outset  although  this  aspect  had  been 
strengthened 
in  the  SPDs  finally  agreed,  especially  in  relation  to  the  previous 
programming  period. 

(ii) SWOT  analyses 

The  plans  were  generally  well  presented  and  their  strategies  were  consistent  with  the 
economic  development  context.  SWOT  (Strengths,  Weaknesses,  Opportunities  and 
Threats)  analyses  were  used  in a  more  systematic  way,  although  there  was  still  scope 
for  improvement,  including  linking  this  methodology  to  the  translation  of  strategies 
into  priorities  and  measures.  Negotiation  of the  Danish  SPD,  for  example,  resulted  in 
the  analysis  of  the  socio-economic  situation  being  significantly  expanded  and  updated 
with the latest  figures  on the regions'  conditions, needs and opportunities. 

(Hi) Strategic aims and objectives 

The  strategic  approaches  varied  widely  in  terms  of  structure  and  contained  differing 
degrees  of  geographical  and  sectoral  orientation.  In  most  cases,  there  was  a  strong 
degree  of  continuity  of  strategy  between  the  new  programmes  and  the  previous 
period.  Strategic  aims  were  expressed  in  many  forms,  with  job-creation  the  most 
frequently  mentioned  aspect  in the  plans. Within the global  aim  of  achieving  economic 
development,  some  programmes  focused  on  absolute  (or  relative)  improvements  in 
certain  socio-economic  criteria  such  as  employment,  population  and  income.  Other 
strategic  statements  gave  prominence  to  the conversion  processes,  e.g.  diversification, 
modernisation  or the target  priorities of the strategy,  e.g.  SMEs. 

S 

Almost all  plans  had  clearly  presented,  explicit  strategic  objectives,  contributing  to  a 
further development  of the strategic statement.  In general, the plans contained four or 
five  strategic  objectives  although  these  did  not  necessarily  relate  to  the  size  of  a 
programme, being more usually a measure of its complexity or number of development 
aspects.  Examples  of  aims  embodied  in  strategic  objectives  included  the  growth  of 
specific  sectors  such  as  tourism  and  transport,  the  exploitation  of  assets  such  as 
location and RTD facilities,  start-ups of small businesses and promoting  diversification 
of  industrial  activities,  strengthening  competitiveness  or  greater  entrepreneurial 
activity.  Some  also  highlighted  horizontal  aspects  of  economic  development,  such as 
environmental  sustainability  and  equal  opportunities.  In  particular,  many  plans 
contained  some  sectoral  targeting (e.g.  the French  and Italian  Plans)  or "drivers for 
change"  (U.K.)  or  in  the  Dutch  strategies,  where  there  was  an  emphasis  on  the 
potential of knowledge-based approaches to develop new forms of economic activity. 

(iv) Targeting of measures 

In general,  measures were consistent with the strategic objectives  and the priorities  of 
the plans. The focus of strategies was often over a broad range of interventions, rather 
than  on  a  few  crucial  aspects  of  economic  reconversion,  although  this  made 
complementarities  and  synergies  more  difficult  to  achieve.  SMEs  and  indigenous 
potential  were  the  main  target  in  almost  all  plans,  in  particular  in  Italy  where  the 
proportion  of resources  devoted  to these actions represented  more than  50% of total 
funding.  Although  the  accuracy  of  targeting  of 
training  actions  was  not  always 
satisfactory,  this  may  partly  be  due  to  the  horizontal  nature  of  human  resources 
measures - some improvement can, however, be seen in the U.K.,  for example,  where 
"labour  market  strategic  groups"  will  provide  information  in  order  to  adapt  ESF 
priorities  to  the  local  labour  market  specificities.  Environment  was  one  of  the  key 
priorities in regional development  strategies although its overall  role in resource terms 
remained  relatively  small  with  5.2%  of  total  Objective  2  funding  directly  related  to 
environmental measures. It should be stressed, however, that special attention was paid 
in certain  plans  to  particular  environmental  aspects.  For  example,  in Zuid  Limburg 
(NL), the focus was on the relationship between jobs and environment; in the Finnish 
plan important  innovative  environmental  measures were  presented  while  in  Denmark 
environmental actions were fully integrated within other programme measures. 

The integration of ERDF and ESF measures was relatively improved compared to the 
previous period  1994-1996. Examples of good practice could be identified  in a number 
of  regions  (Bremen,  Tuscany,  some  Dutch  regions)  where  management  and 
coordination of training actions have been enhanced at local level. 

<Ao 

(v) Quantification  of objectives and  impacts 

An initial lack of quantification  of objectives  and outputs including employment  effects 
and  absence  of  baseline  data  was  one  the  most  disappointing  features  of  the  plans 
originally  submitted  although  substantial  progress  was  made  subsequently  in  this 
regard.  A  particular  example  in  this  respect  related  to  the  SPDs  for  France  where 
elements  missing  from  the  initial  proposals  were  established  in  the  course  of  the 
negotiations  relating,  for  example,  to  socio-economic  analysis,  base  indicators  and 
environmental  information. 

Concerning  the  impact  on  employment,  the  methodological  framework  on  Ex-ante 
Quantification  of  Employment  Effects  transmitted  to  the  Member  States  (see  earlier) 
was generally  little  used.  A notable  exception,  among  others,  was  the  Aquitaine  (F) 
SPD,  where  the  Commission's  methodology  had  been  widely  followed  and  proved  to 
be effective  for monitoring and evaluation purposes. Nonetheless, as shown later in this 
Communication,  significant  overall  progress  was  achieved  compared  to  1994-1996  in 
the assessment  of the number of jobs created  or maintained  as a result  of  interventions 
under Objective 2. 

(vi) Environment  appraisals 

The  majority  of  plans  provided  a  strategic  environmental  assessment  and  addressed  a 
number  of  environmental  issues.  Whereas  the  provision  of  quantitative  indicators 
generally  required  further  attention,  some  plans  presented  detailed 
information 
following  a  standard  matrix  format  detailing  the  possible  environmental  impacts  of 
measures.  Moreover,  the  links  between  measure  and  programme  level  also  generally 
needed improving and there was rarely mention in plans of the "polluter pays" principle 
or  information  on  its  concrete  application.  In  this  regard,  however,  a  good  example 
was  the  Finnish  plan  which  was  not  only  exemplary  for  innovative  environmental 
measures,  but  also  for  the  proposed  ex-ante  evaluation  of  environmental  impacts  as 
well as the association  of environmental  authorities in decision making, monitoring and 
evaluation. 

Indeed,  the  association  of  the  environmental  authorities  had  generally  improved 
although  any  deficiencies  such  as  the  above  also  serve  to  highlight  the  crucial 
importance  of  their  participation  in  the  programming  phase  in  order  to  achieve  a 
balanced  and successful  plan in terms of sustainable development. 

c) Respect of the principles  of partnership  and  additionality 

Partnership 

Most plans included a commitment to ensure the full  involvement  and ownership  of the 
programme by the partners, as well as integrating the Objective 2 programmes with the 
the 
other  regeneration 
participation  of  the  economic  and  social  partners  was  not  always  well  defined,  the 
types  of  consultation  undertaken  with  partner  organizations  included,  for  example, 
those  in  Western  Scotland  (U.K.)  in  the  form  of  workshops,  seminars  and  written 
questionnaires. 

in  the  area  concerned.  Although 

initiatives  operating 

/ H. 

Additionality 

Under the principle of additionality each Member State has to maintain,  in the whole of 
its territory concerned  by a given Objective, its eligible public structural  or  comparable 
expenditure  at  least  at  the  same  level  as  in  the  previous  programming  period.  In  the 
case  of  Objective  2  for  the  period  1997-1999  this  meant  that  each  Member  State 
concerned  had to  ensure globally,  for  all of its Objective  2  regions taken  together,  the 
same level of expenditure as in 1994-1996. 

Establishing  additionality  again, however,  proved  difficult,  either  because  of  problems 
in gathering  the  required  information  or in verifying  the data  received.  Indeed,  for  the 
majority  of  the  new  Objective  2  Programming  Documents,  it  was  necessary  to 
introduce  a  clause  into  the  Decisions  suspending  Community  payments  after  the first 
advance  pending  ex-ante  verification  of  the  additionality  principle.  Nonetheless,  the 
Programming Documents for  Germany and Finland, having provided  satisfactory  ex-
the 
ante  demonstrations  of  additionality,  were  able  to  be  approved  without 
introduction  of  such  a clause.  In  the  case  of the  U.K.  and  Denmark,  the  clause  was 
able  to  be  withdrawn  from  the final Decisions  after  the  requirements  had  been  met 
subsequent to the Commission's initial approval in principle. 

ii) The added-value from the negotiations 

took  place 

the  new  Programming  Documents  mostly 

from 
Negotiation  of 
October/November  1996 onwards and, as indicated  above,  provided  an opportunity  to 
increase  the  quality  and  effectiveness  of  programmes  in  various  ways,  particularly  in 
the  light  of  the  results  of  evaluation,  including  the  Objective  2  guidelines  and  the 
paramount  priority  of  job  creation.  In  a  number  of  instances,  for  example,  the 
negotiations  resulted  in increased  importance being given to  measures which  promised 
most job-creation.  The negotiations  sometimes also provided  an opportunity to  rethink 
programmes  from  the  bottom-up.  More  detailed  information  on  the  key  elements  of 
added value from the negotiations is provided  at the end of each of the summary fiches 
by Member State at Annex 3. 

d/L 

iii) Analysis of the development priorities 

Expenditure  categories 

The following  provides an overall analysis of agreed  Objective  2 financing on the basis 
of the  four  main  expenditure  categories  (plus  Technical  Assistance)  contained  in  the 
table at Annex  2  attached.  In line with the  integrated  approach,  both  ERDF and  ESF 
financing  is  included  within  each  category.  It  should  also  be  borne  in  mind  that  the 
expenditure  breakdown  encompasses  certain  differences  of  classification  or 
interpretation,  for  example  in  the  definition  of  * environmental'  as  opposed 
to 
'regeneration'  measures.  A degree  of overlap between  such  sectors  is  also  inevitable. 
The  analysis  incorporates  illustrations  from  the  Programming  Documents,  especially 
where  examination  of  the financial annexes  indicates  that  significant  expenditure  has 
been devoted to  a type of action in a region, as well as other noteworthy  or  innovative 
examples. 
In  this  regard,  particular  attention  has  also  been  given,  again  with 
appropriate examples, to  assessing the extent to  which the Objective  2 guidelines have 
been taken into account in the priorities and measures. 

The global distribution between expenditure categories was as follows: 

•  Productive Environment  - includes all types of measures to  improve the growth  and 
competitiveness  of 
industry  and  businesses,  especially  SMEs,  as  well  as 
diversification  from  declining  industry,  for  example  into  tourism,  and  supporting 
infrastructure  where this is justified  by development  needs: 47.4% (45.2% in  1994-
1996); 

•  Human  Resources  -  primarily  training  measures  and  employment  aids  with 
particular  emphasis  given  to  the  need  for  continuing  training  focused  on  those 
integrated  into  the  world  of  work  but  who  need  further  training,  experience  and 
reskilling to  ensure they  can meet the existing  or  anticipated  demand  of the  region. 
This also  encompasses  R&D  particularly  where linked  to training  in the jobs  of the 
future.  33.8% (34.1% in 1994-1996); 

•  Planning and Regeneration  - the improvement  and laying out of run-down  industrial 
and urban  areas  including the  reclamation  of contaminated  land,  any necessary  on-
site infrastructure  as well  as certain  directly  linked  environmental  measures:  12.3% 
(13.7% in  1994-1996); 

•  Environment - measures linked to the protection  of the environment,  for example to 
promote  "green" 
technologies,  new  methods  of 
production,  the  treatment  and  recycling  of  industrial  waste  and  water,  etc:  5.2% 
(5.7% in  1994-1996). 

tourism,  promoting  clean 

•  Technical Assistance 

1.3% 

A3 

Distribution of credits by Fund 

As  indicated  earlier,  the  new  programmes  have  been  established  on  the  basis  of  the 
Plans  proposed  by  the  régions  and  Member  States.  The  interventions  described  are 
therefore  the result  of the  definition  of regional  needs  in the light  of the diversity and 
differing  requirements of the regions concerned.  Similarly, the. respective, shares of the 
Funds  are  not  the  result  of  pre-determined  "quotas"  but  the  reflection  of  needs  and 
priorities  agreed  in partnership.  Overall,  the  distribution  of  credits between  the Funds 
resulting from  the different  priorities selected in the SPDs (and CSF) for  1997-99 ( see 
Annex  1) has remained the same as for the previous period: 

ERDF : 77%  and ESF :  23% 

This  ranged  from  the  lowest  average  proportion  of  ERDF  (66%)  and  consequently 
highest ESF (34%) in NL to the highest ERDF (82%) and lowest ESF (18%)  in F. 

Expected impact  on  employment 

Substantial  progress  has been  made  in the  quantification  of employment  effects  in the 
1997  -  1999  SPDs.  In  55  SPDs,  detailed  estimates  were  provided  at  measure  level 
corresponding  to  around  66%  of total  EU  funding.  Most  of  these  programmes  focus 
on jobs created  or  safeguarded  as a result  of the interventions.  They generally  refer  to 
gross jobs,  and  do  not  take  account  of  dead-weight,  displacement  or  other  indirect 
effects.  Notable  exceptions  providing  specific  estimates  of  net job  creation  are  some 
UK and French  SPDs. 

Data on gross job maintenance have been collected from agreed  SPDs, excluding those 
containing only global estimates. The overall results are at  Annex 4.  A  reclassification 
of  the  data  has  been  made  according  to  the  main  areas  of  intervention  in  order  to 
compare their relative efficiency  in terms of average cost  per job.  The interpretation  of 
these  figures  is,  however,  subject  to  caution  given  the  non-use  of  a  standard 
methodology (see earlier) in the various regions for estimating employment  effects. 

On the basis of these data,  which would require further  refinement,  it is estimated  that 
almost 880.000 gross jobs are expected to be either created,  saved or redistributed  as a 
result of Objective 2 interventions over the  1997-99 period. This order of magnitude is, 
according  to  recent  evaluations,  around  the  same  as  for  the  programmes  carried  out 
over the  1989-93  period.  Temporary jobs  represented  a  relatively  small  proportion  of 
the  overall  employment  effects,  i.e.  over  100,000 jobs  for  seven  Member  States.  The 
three  main  recipient  Member  States,  France,  Spain  and  the  U.K.  which  account  for 
around 70% of total EU Objective 2 funding,  contribute to more than two-thirds  of the 
gross jobs. 

^ 

The average  public funding  per job  is estimated  at  over  ECU  13,800.  Taking  only  EU 
cost,  i.e.  ERDF  and  ESF  funding,  the  equivalent  figure  corresponds  to  around  ECU 
6,100. Considerable variation exists in the EU cost per job,  ranging from  an average of 
around  ECU  4,400  in Spain  to  an  average  of  around  ECU  24,000  in  Denmark.  One 
explanation  for  this  lies  in the  choice  of  priorities  pursued  in the  various  Objective  2 
strategies.  Where,  for  instance,  infrastructure  investment  is a priority,  the job  creation 
effects  appear  to  take  longer  to  become  apparent  than  elsewhere  and  this  will  be 
reflected  in  a  higher  cost  per job  than  in  other  regions  where  the  emphasis  is  on  for 
example,  SME support  which has more immediate impacts. 

Productive  Environment 

The Objective  2 guidelines emphasised  the need  to  continue efforts  towards  improving 
the  regional  competitiveness  of the  productive  sector.  Conversely,  expenditure  on  any 
supporting  infrastructure  (see  below)  required  specific justification  in  terms  of  its  role 
in  the  development  of  the  productive  sector  and  its  contribution  to  the  safeguarding 
and  creation  of jobs.  Financing  of MECU  4,337  has been  allocated  to  the  productive 
sector  in  the  new  programmes,  comprising  47.4%  of  total  Objective  2  expenditure 
1997-1999 (compared  to 45.2% in the previous period). 

Industry and  services - all types 

Around  25% of total  funding  for  the  productive  environment  (MECU  1088)  has  been 
devoted  to  general  investments  for  the  benefit  of  industry  and  services.  The  largest 
expenditure  in  this  area  has  been  in  the  U.K.  (MECU  564)  representing  40%  of  that 
country's  finance  for  the  productive  environment  sector.  France  (MECU  252) 
accounts for  the other main expenditure by Member  States on industry  and services. 

A^ 

Spatial  Development  Priorities 
1st North East England  (ILK) such investments (amounting to MECU 138*7 or 36% 
of  its  total  Objective  2  allocation}  are  focused  on  measures  within  Priority  3  for 
Strategic  Regional  Developments  as  well  as  Priority  4  concerning  Community 
Economic Development - for an explanation of the latter» see below* Actions under ihe 
former Priority  are aimed both at the physical regeneration of strategic areas; and the 
development  of  specified  sectors  with  significant  job* creation  potential,  Activities 
include cultural and tourism development packages and support for the co-ordination 
of the activities of economic development and employment agencies. Human resource 
development  is  also  included - both training actions and  non-training actions such as 
skills audits and labour market research. 

Supporting  existing industry as well as developing new  activities 
Although the region of Rhône-Alpes (F) is also seeking to develop other activities arid 
attract inward investment* the maintenance of existing industry still underpins: its main 
economic  strategy* This U reflected  in the  SPD's  First  Priority for  the  Support and 
Conversion of Existing Activities financed with MECU 50, or 33% of total programme 
resources.  The four  measures within this Priority  include ffirecfr support lof  business 
(improving production techniques through new technology» quality niatœgement, non-
material  investment  in  commercial  strategy,  human  resources.management  eta); 
developing  new  businesses  (provision  of  common  services,  technology  transfer, 
incubating new  enterprises); developing the services  sector (acquisition of new skills, 
needs analysis,  provision of research and higher education iacihties) and eflco^ra&ng 
investment in human resources development (skills audits, targeted training etc*). 

SMEs 

In overall terms  16% of total Objective 2 resources have been specifically  allocated to 
the SME sector.  A priority was given in the Objective  2 Guidelines  to  strengthening 
the  competitiveness  and  internationalisation  of  SMEs,  including  through  improving 
SME  management,  access  to financial services  and  industrial  cooperation.  This  was 
complemented  by  the  need  for  total  quality  management  and  the  role  of  modern 
Information and Communications Technology (ICT) in the context of the Information 
Society. 

ÀÇ> 

Strengthening SME competitiveness 

major programme specifically aimed at SMEs in the German SPDs concerns 

Nord^ein-Westfalen  with  expenditure  of  MECU  47.7.  It  includes;  amongst  its 
^ ^ ^ ^ ^^ 

th^  number of  SMEs  as well  as  preparing them  for  global 

j S $ i ^ e s& 'Aétiofts^for achieving the latter are centred around aspects such as 
ï x'#l $bi««pM finding of businesses (including the provision of interest rebates}* 
ibtf&flCation of workers and the introduction of new technology. 

Advising SMÈs ÛH the Information Society 
tn  Pîèmonte  ($*.  MECU  71*2,  comprising  almost  a  quarter  of  total  programme 
resources* h  being provided under Priority 3<for the Dissemination of Technological 
Innovation  and  Information  Society: This primarily concerns  the  incubation of  new 
businesses, particularly within Technology  Parks. It  also  includes  a  new  measure  to 
gjve information and advice to SMEs concerning the Information Society. 

' 

Local Development and Employment Initiatives fLDEIs) 

The  Commission's  Communication  to  the  Council(6)  on  developing  new  sources  of 
employment to meet unmet local needs was highlighted in the Objective 2 guidelines. 
In  the  case  of  the  U.K.  this  aspect,  which  takes  the  form  of  a  more  specific 
geographically  targeted  approach,  features  in almost  all its  SPDs  within priorities  for 
Community  Economic  Development.  The  aim  is  to  concentrate  resources  on  the 
worst-off and socially  marginalised  communities  within  eligible  areas.  For  1997-1999 
this represents a new priority for Thanet while in Industrial  South Wales the existing 
actions have been strengthened and now comprise a dedicated priority. 

(6) COM (95) 273 of  13 June  1995 on a strategy for encouraging local development and  employment 

and job creation  initiatives 

A4-

Community  Economic  Development 
Priority ,5  for  Community  Economic  Development  in  Yorkshire  &  Humberside 
QjM)  comprises: 25%  (MECU  99.7)  of the  region's  total Objective  2  budget.  The 
Pnoriry aims to^evelop the skills of targeted communities in contributing to economic 
regeneration  and  combat  the  exclusion  of  residents  from  economic  opportunity» 
Actions will be carried out  under three main measures: Helping  Communities to  help 
themselves:  Access  to  Work  and Getting  Communities into  Work.  They  include the 
preparation  of  community  audits  (including  human  resources)  and  area  needs 
assessments, the provision of community facilities delivering training, employment and 
enterprise development  services,  improved  public transport  for deprived  communities 
Uptown and city centres and industrial development  sites.  ESF support  will be made 
available for  actions  which  include  the promotion  of entrepreneurship,  re-skilling and 
skill  extension  to  national  standards  and  support  for  childcare  or  other  dependants 
linked to training or employment. 

In  Belgium  a  new  Priority  for  the  Local  Economy  has  been  introduced  into  the 
programme  for  Turnhout.  Local  Development  and  Employment  Initiatives  will 
include actions  to  meet  local  needs  in  the  field  of  culture,  environment  and  energy 
Sources. Similar approaches in Li in burg are aimed at creating  100 new jobs,  of which 
at least half would be for women. 

Territorial and Local Employment Pacts 

At  their  meeting  in  Florence  in  June  1996,  the  Community's  Heads  of  State  and 
government  approved  the  Commission's  guidelines(7)  for  increasing  the  impact  of 
Community structural  measures on employment.  In particular,  and as advocated  by the 
Commission  in its Confidence  Pact for  Employment, they recognized  the advantages  of 
broader and deeper application  of the partnership  principle at the appropriate  territorial 
level  when  implementing  such  measures.  The  Dublin  European  Council  in  December 
1996 reaffirmed  these guidelines in its Declaration  on Employment and  called for  rapid 
implementation  of about  sixty innovative pilot projects  to be turned  into Territorial  and 
Local Employment  Pacts, with  the national  authorities  in each  Member  State  selecting 
the  candidate  regions  or  cities. Following  the  Commission's  Interim  Progress  Report 
on  the  Implementation  of  Territorial  Pacts  for  Employment^  to  the  Amsterdam 
European  Council  of  June  1997,  some  90  pact  proposals  were  reported  to  be  in  the 
course  of  development.  The  Council  particularly  welcomed  the  positive  response  of 
Member States to its invitation to propose candidates for pilot  projects. 

(7) COM(96) 109 final of 20 March  1996 on Comiminily Structural Assistance and Employment 
(8) CSE(97) 3 final of  10.06.1997. Commission Communication on the Interim Progress Report on the 
Implementation of Territorial Pacts for Employment. 

Annex 5 lists the  12 projects for Employment Pacts eligible within Objective 2 regions 
including  details  of  the  main  partners  involved  and  the  provisional  action  plan 
priorities.  The  table  also  indicates  where  Pacts  principally  comprise  ESF  measures 
under Objective 3 (Champagne-Ardenne, Nord-Pas de Calais, Pays de la Loire, F) 
or Objective 4 (Bremen, D). The classification of the Pact for Abruzzi (I) reflects that 
region's transition from Objective 1  to Objective 2 status. 

Employment  Pacts 
The aim of the Territorial Employment  Pact for  Saint-Herblain,  a suburb of Nantes 
(Pays  de la Loire, F) is to build on previous successful initiatives and create a similar 
dynamic for the creation of jobs. The local plan for economic integration was aimed at 
tackling an unemployment level which had reached  17% mainly as a result of a decline 
in  local  industries  (shipbuilding,  agri-food).  Previously  unemployed  people.were 
engaged  by  the  Town  Hall to  manage cultural  or  sporting  events,  Other jobs  were 
created  in the private  sector  to  provide local  services for  families  or  old people and 
also» for example, in waste recycling. A total of 552 unemployed people had benefited 
by the end of 1996 ( 3Q4 with jobs; 48 with a professional qualification),  The new Pact 
will similarly involve local authorities, training bodies, associations and firms and seek 
to develop further new sources of employment. 

In Nordrhein  Westfalen  (D) the three coal-mining  areas, which are covered  almost 
entirely by Objective 2 programmes, will be linked by a network of three Pacts aimed 
at developing  new  services to replace jobs lost  in declining industry. The Action Plan 
for the Pact includes the promotion of innovation and technology as well  as improving 
the  location  factors  of  the  region  as  a  whole  The  Pact  partnership  includes  the 
Government  of the Land, towns, businesses,  Chambers of Commerce,  representatives 
of trade and industry, university and research institutes and the trade unions. 

Tourism 

As  in  1994-1996,  the  U.K.,  France  and  Italy  have  devoted  the  most  significant 
resources to tourism with an average of  17%  ( MECU 211,  MECU  178  and MECU 
105  respectively)  of  productive  sector  resources  allocated  to  the  sector.  However, 
although total resources for the sector have increased, there has been a small reduction 
in the overall percentage allocated to tourism compared to the previous period. 

A°) 

promoting the region as an international tourist destination* 
Expenditure  of MECU 18.288 in Nord-Pas-De-Calais (F) continues with measures 
for the construction of recreational, cultural or sports tourist facilities and the creation 
of conditions for private investment in this sector.  The overall  aim is to  position the 
région  as  an  international  destination,  especially  for  short-stay  visitors  within  short 
travelling distance  (TGV,  Channel tunnel,  motorways,  airports). Key  targets  include 
increasing the number of visitors by 1 million and overnight stays by 150,000. 

The SPD for  Industrial  South Wales  (U.K.) will  be seeking to develop the tourism 
potential  of  Cardiff  as  an international  city from which the region as a  whole  would 
benefit. On the basis of a tourism strategy for the region, expenditure of MECU 23.094 
(19%  of  total  productive  sector  resources)  will  finance  the  upgrading  of  existing 
tourist facilities and attractions, develop a limited number of strategic flagship projects 
and implement marketing initiatives. 

Support  infrastructure 

As indicated  earlier,  the approach  sought  with  regard  to  the provision  of supporting 
infrastructure  has been to try to ensure that it indeed supported the development of the 
productive  sector  and  would  require  specific  justification  in  this  respect.  Total 
expenditure in this area amounts to MECU  1,210  or around  28% of total  productive 
sector  (13%  of  total  Objective  2).  Indeed,  in  some  Member  States  infrastructure 
provision was reduced  during negotiation  of the programme, for  example in Finland 
where this was reduced from  13% to  10% of the budget with an agreement to explore 
the possibilities of loan finance from the EIB. 

Human Resources 

Just over one third (MECU 3092) of the total Objective 2 budget has been devoted to 
the development  of Human  Resources  as  a whole  (including RTD  aspects)  with  the 
major  expenditure  in  U.K.  and  France.  Amongst  the  priorities  of  the  Objective  2 
Guidelines in this area was to target training in an SME context towards owners and 
managers  and  adapt  vocational  qualifications  to  the  process  of  technological  and 
organisational  innovation.  Again,  it  is important  to  appreciate  that  human  resources 
development  is  a  horizontal  aspect  which  constitutes  a  fundamental  element  for 
strengthening all priorities. 

9L& 

Management development 
A measure for Competitiveness Through People development and integration within 
the largest  UK programme (West  Midlands)  encompasses actions for management 
vo^ttonai 
development  and the  upskilimgeof ^ 
training and customized triinmjr/^ 
any perception 
by SMEs that employee ^*4>Gm^ 

* -

, 

.K'/ 

,  _ 

"*'  - 

>  <  ^  ^  >* 

*  , 
Trainingforjobs 
Of the smaller programmes, MBÇl|||,$ (3t$fS'-of etjr^^%|%0^^yeireso^»^) 
is  being  provided  m  Zuidoost*Bimbant  p^^mr  m^^^'^pi' 
timmgiwfià 
education  of  the  employed% imd#«?bnplbyed,  jbicia^bi^lfi^^^dblte» ^À»$''in^^ 
environment projects. Labour market activities will provide labour pools to provide 
opportunities for the unemployed to^pm  working experience, ^cultate the transfer of 
technical knowledge and presenMlte expertise of older (unemployed) workers, the 
ESF will also support ERDF measures by professionalizing voluntary occupations and 
new  local  employment  initiatives  (see  above)  in  social  care 
in  deprived 
neighbourhoods. 

Training facilities 
Overall financing of training facilities and related equipment, at MECU 120^ comprises 
less than 1% of the global Objective 2 budget  Such expenditure appears primarily in 
eight of the SPDs for France, of which the largest project (MECU 13.8) includes the 
construction or renovation of existing facilities and the provision of training material in 
Nord-Pas de Calais. 

Equal  Opportunities 

Compared  to  the  previous  programming  period,  the  aspect  of equal  opportunities  has 
been  strengthened  in  all  the  Objective  2  programmes  for  the  period  1997-1999, 
although this priority generally appears as a horizontal objective and not at the measure 
level.  In  the  actions  funded  by  the  ESF,  equal  opportunities  for  women  and  men  is 
more  often  taken  into  account  than  in  those  funded  by  the  ERDF  which  are  usually 
gender  neutral.  Gender  specific  background  statistics  concerning  unemployment  are 
usually provided  in the programmes. 

S.A 

Increasing employment  opportunities for  women 
In  Germany,  several  programmes refer to  the  promotion of equal  opportunities  w 
their ESF measures. Women are often included in these measures as & target group ht 
strengthening human resources through education, further prp&sstor^^^ 
education. Nordrhein^Westfalen also includes,  howeve&fe'flpi^ 
women as a part of Promotion of Technology and  I n r t o v à t l o ^ ^ ^ a l ^ ^ ^ f i fe 
measure  *Frau  und  Beruf  {Women  and  Work)  aims  a | r % ç i ? à ^ g l i ^ i ^ n i ï^ 
opportunities for women and the creation of female enterprises: Assistance is gjven for 
the establishment of regional centres which» for example/ offer education for women m 
co-operation with  SMEs,  especially Jn the field of 
enter  the  labour  market  and  improve  their  working  coholliohs  -m$.*1ft$fti& 
reintegration  following  maternity  leave.  Women  are  also  ehcbUraged  to  Seek 
occupations in fields traditionally dominated by men, such as new technology. 

roftnageni^i^ 

Research and Technological  Development 

The  Objective  2  Guidelines  likewise  suggested  that  the  new  programmes  should 
increasingly  provide  for  training  linked  to 
the  job  opportunities  afforded  by 
technological  innovation  in order to ensure a supply of worker qualified  for the jobs of 
the future.  Technical  advances  (especially  in R&D)  were  not themselves  sufficient  to 
ensure  successful  innovation.  Human  and  organisational  factors,  especially  a  lack  of 
expertise  and  qualified  workers,  had  proven  to  be  the  major  sources  of  weakness  in 
innovation  systems in Europe. This was in the context  of the need to make the most of 
existing  R&D  assets  and  improve  the  practical  application  of  research  results  and 
technology  transfer.  As  illustrated  in the  example  below,  a  number of  the  new  SPDs 
indicate  that  local  actors  are  becoming  mor  familiar  with  the  factors  required  for  an 
effective  Research, Technology and Innovation (RTDI) system. These include: 

measures to improve RTD capabilities in fields important for the regions and 
which had the potential to develop them; 
measures to improve strategic policy planning capabilities to better identify 
potential  and assess and meet regional demand; 
measures to develop inter-firm  and firm-to-research centre relationships and 
networks of various types; 
measures to develop strategic management capabilities to promote better 
absorption  of technologies and techniques within firms and sectors; 
measures to promote mobility of research and technological  staff and managers 
to increase learning, application and implementation  of best practice. 

SUL 

In overall  terms,  expenditure  on RTD  and innovation increased by 77% from MECU 
691  in  1994-96  to  MECU  1226  in  1997-99  (from  10% to  13% of  total  Objective  2 
financing).  The major investors in this area were the U.K.  and France  (with relatively 
high  investment  also  in  Finland)  with  MECU  327  and  MECU  322  respectively 
representing  12% and 14% of these countries* total Objective 2 funding. 

Encouraging SMEs  to invest in innovation and RTD 
In West Midlands  (U.K.)  expenditure  of MECU S5.6  (19% of total  Objective  2)  is 
financing  a Priority for  Innovation,  Technology  and R&D  development  in the region 
which is designed  to  encourage  SMEs to  become more involved in the  development 
and take-up of new technologies* The priority is being implemented in the context of a 
Regional Innovation Strategy through three main measures : Helping People to Create 
and, Sustain Innovative, Organisations  (including  training  actions  for  innovation  and 
R&D,  actions  aimed  at  improving  awareness  of  the business  potential  of telematics, 
increasing  'benchmarking'  expertise  to  facilitate  development  of  best  practices.); 
Market and Technology  Vision (to  encourage SMEs to make long-term investment in 
innovation,  R&D  and  Technology  transfer  through  a  process  of  strategy  and  vision 
development);  Exploitation  and  Development  of  Regional  Intellectual  Capital  (to 
provide the infrastructure, information and support base necessary to  engage SMEs in 
Innovation, R&D and Technology Transfer. 

Planning and  Regeneration 

Expenditure on the planning and regeneration of both industrial sites and urban areas in 
the Objective  2  regions  amounts to  MECU  1,121  or around  12% of Objective 2  as a 
whole. 

«3 

Industrial  sites 
The  larger  Member  States  are  spending  between  8  and  10%  of  their  Objective  2 
allocations  in this area but with  Germany  at  15%, primarily through expenditure  of 
MECU  112J  in  Nordrheîn-Westfalén.  A  quarter  of  this  region's  Objective  2 
resources  continues  be  devoted to  this  aspect  where  the  regeneration  of  industrial 
wasteland and the renovation of buildings, mainly for use by SMEs, are amongst the 
most  important measures.  The  creation  of  more  than  24,000 jobs  is  expected from 
these activities. 

Urban areas 
France remains the biggest investor of Objective 2  resources in the urban sector with 
expenditure of MECU 107 or 9 % of its total funding.  In Haute-Normandie MECU 
14.8  is,  for  example,  being  provided  under  a  Priority  for  Improving  the  Urban 
Environment.  Measures  include restructuring of  urban areas,  the provision  of  public 
transport and cycle zones as well actions targeted on the most run-down areas aimed at 
improving the quality of life and the establishment of local businesses and services (see 
LDEIs). 

+  ;  * 

' 

Environment 

The Objective  2 Guidelines  considered the pursuit of sustainable development under 
two main themes: firstly, by increasing the attractiveness of the region by tackling past 
industrial  damage  and  improving  the  physical  environment  (see  Planning  and 
Regeneration  above) and secondly by exploiting  eco-products,  environmental  services 
and  technologies.  The  latter  included  the  promotion  of  environmental  training  as  a 
factor for economic advantage. 

An overall sum of MECU 479 (MECU 397 in 1994-96) is being provided for measures 
in the environmental field during  1997-99  although other expenditure,  notably for the 
regeneration  of  industrial  and  urban  sites  will  also  have  an  environmental  impact. 
Indeed,  one  of  the  features  of  the  new  programmes  has  been  the  way  in  which  the 
environment has been horizontally integrated within other programme priorities. 

*v 

Integrating the Environment 
One; example of  the  horizontal  integration  of  environmental  aspects  is the  SPD  for 
Finland which contains new proposals for  expert assessment groups to  establish the 
impact of projects on the environment before funding decisions are taken. In Denmark 
envtbnmental actions are fully integrated within other programme measures. 

Investing in environmental technology 
Excluding expenditure on urban regeneration measures, MECU 28, comprising 18% of 
Tuscany's (I) total Objective 2 expenditure is providing financial incentives to firms 
investing in clean technology. This includes recycling and energy saving and innovative! 
production techniques to reduce CFCs and CO2. Infrastructures for the treatment and| 
recycling of industrial waste and also for the monitoring and control of areas at risk are 
also being given support. Aims include the involvement of 30'firms and to improve the] 
treatment capacity of industrial waste by 12,000,000m1 per year. 
i 

In Berlin' (D), MECU 333 will be spent on measures for business and industry within 
the Environmental Programme  and the 'Initiative for  a friture Ecological  Economy'., 
These will lead to benefits estimated to reduce the consumption of drinking water by! 
54,000 m3  per annum and  the quantity  of waste water by 45,000 m*  Less primary 
energy  consumption  (85^000 Mwh)  will lead  to  savings  in  raw  materials  of  6,0001 
tonnes a year. 

During  negotiation  of the Programming Documents, the Commission insisted  on the 
application of 'Environmental Profiles'  whereby all plans had to  include: an appraisal 
of the environmental situation in the region concerned; an evaluation of the impact of 
the strategies and operations contained in the plan in terms of sustainable development 
and  the  arrangements  made  to  associate  the  competent  environmental  authorities 
designated  by  the  Member  States  in  the  preparation  and  implementation  of  the 
Programming Documents. 

^ <T 

IV.  CONCLUSIONS 

The  Commission's  Cohesion  report(9)  recognized  that  the  Objective  2  regions  faced 
particular  difficulties  in  meeting  the  challenges  of  international  competition  and  in 
sharing  in  the  Union's  general  prosperity  including  the  opportunities  created  by  the 
Single Market.  The  immediate priority for  Community  assistance  had  been in  reducing 
dependence  on  outmoded  activities 
through  a  process  of  restructuring  and 
diversification,  especially by developing an indigenous business culture. 

In  the  new  Objective  2  programmes  for  1997-1999  more  incentives  have  been 
provided,  for  example,  for  investments  which  promote  employment-intensive  growth 
and  sustainable  development.  The  importance  of  Human  Resources  Development 
implies  ensuring  a  better  skilled  workforce  through  improved  access  to  adapted  and 
quality  training,  the  promotion  of  entrepreneurship  and  increased  links  between 
training  and  employment  systems,  companies  and  research  structures.  In  order  to 
improve innovative skills, it has also been important to adopt  a more targeted  approach 
to  schemes  for  encouraging  Research  and  Technological  Development,  technology 
transfers  and  the  development  of  research  results  into  marketable  products.  Such 
schemes  need  to  be  fully  integrated  with  the  economic  and  Research,  Technology  and 
Innovation  (RTDI)  system  in the  region  or  locality.  Stepping  up  local  production  and 
services,  including  in  the  cultural  and  social  fields,  also  represents  a  considerable 
reservoir of new jobs. 

Similarly,  in  recasting  its  structural  policies  for  the  next  programming  period,  the 
Union  recognises  the  continuing  problems  of  economic  and  social  conversion, 
especially  in  the  most  prosperous  Member  States.  And  this  not  only  in  regions  of 
industrial decline,  but  also in rural  zones  lacking economic diversification  and  suffering 
depopulation,  in  urban  areas  with  little  economic  activity  and  high  pockets  of 
unemployment  as  well  as  in  fisheries  zones  in  difficulty.  An  integrated  approach, 
the  various  EU 
accompanied  by 
programmes  and  initiatives,  will  therefore  be  essential  in  future,  taking  account  in 
particular  of levels  of  unemployment  as well  as the  degree  of industrial  or  agricultural 
activity and social  exclusion. 

to  develop  synergies  between 

local  efforts 

The new Objective  2 programmes  for  1997-1999 already  reflect  significant  progress in 
many of the  areas  outlined  above.  Whilst  summarising  the  key  elements  and  expected 
impacts  of  the  current  programmes,  this  Communication,  in  highlighting  areas  where 
more  still  needs  to  be  done,  may  also  contribute  to  the  approach  to  economic  and 
social conversion  after  1999. 

(9) COM(96) 542  final  of 6 November  1996 : Firsl  Repon  on  Economic suit! Social  Cohesion. 

U 

ANNEX  1 
ANNEXE  1 
ANLAGE  1 

Breakdown  by  Funds  and  by  regions  of  the  Objective  2  CSFs  and  SPDs  1997-1999 
Répartition  par  Fonds  et  par  régions  des  Docup  et  CCA  objectif  2  1997-1999 
Aufgliederung  nach  Fonds  und  Ziel-2-Regionen  der  GFK  und  EPD  1997-1999 

Millions  d'écus 

FEDER 

FSE 

TOTAL 

Belgique 

Aubange 

Limburg 

Meuse-Vesdre 

Turnhout 

Allemagne 

Bay  em 

Bremen 
Hessen 

Niedersachsen 

Nordrh  ein - Wes  tfalen 

Rheinland-Pfalz 

Saarland 

Schles  wig-HoIs 

tein 

West-Berlin 

Danemark 

Loi I and 

Nordjylland 

Espagne 
Aragon 

Baléares 

Ça ta/un a 

La  Rioja 

Madrid 

Navarra 

Pais  Vasco 

France 

Alsace 

Aquitaine 

Auvergne 

Basse-Norman  die 

Bretagne 

Bourgogne 

Centre 

Champagne-Ardennes 

Franche-Comté 

Haute-Normandie 

Languedoc-Ro  us  sillon 

Lorraine 

Midi-Pyrénées 

Nord-Pas-de-Calais 

Pays  de  la  Loire 

Picardie 
Poito u-Charentes 

ProvenceAlpes-Côte 

d'Azur 

Rhône-Alpes 

173,1 
1.0 
51,0 
95,1 
26,0 

639,9 
13,7 
35.8 
26,5 
33,3 
336,0 
17,9 
41,6 
11,8 
123,3 

52,7 
9,3 
43,4 

1132,4 
78,8 
12,6 

559,6 
15,7 
153,5 
20,4 
291,9 

1852,1 
17,2 
108,5 
69,4 

66,0 
101,6 
58,8 
32,1 
97,1 
47,7 
127,8 
85,1 
143,5 
43,0 
309,0 
130,5 
108,0 
51,4 
131.4 
124.0 

43,1 

0,0 

16,9 
19,3 

6,8 

261,2 
6,0 
19,3 
3,5 

16,6 

114,6 
9,6 
17,3 
6,3 
67,9 

15,5 
4,5 
11,0 

352,6 
29,7 
2,6 

150,1 
2,6 
58,8 
7.2 
101,7 

394,2 
4,8 
24,0 
12,9 
14,3 
16,7 
10,9 
5,9 
16,7 
8,5 
36,4 
13,8 
30,1 
10,0 
66,4 
32.0 
31.6 
11.4 
23.0 
24.9 

216,1 
1.0 
67,8 
114,4 
32,9 

901,1 
19,8 
55,1 
30,0 
49,9 
450,6 
27,6 
58,9 
18,1 
191,2 

68,2 
13,8 
54,4 

1485,0 

108,4 
15,2 
709,7 
18,4 
212,2 
27,6 
393,5 

2246,3 
21,9 
132,5 
82,3 
80,3 
118,3 
69,7 
38,0 
113.8 
56,2 
164,2 
98,9 
173.6 
53,0 
375,4 
162,5 
139.6 
62.9 
154.4 
148.9 

Q^ 

Breakdown by Funds and by regions of the Objective  2 CSFs and SPDs  1997-1999 

Répartition par Fonds et par régions des Docup et CCA objectif  2  1997-1999 

Aufgliederung naçh Fonds und Ziel-2-Regionen der GFK und EPD  1997-1999 
(suite) 

_ __ 

Millions d'écus 

FEDER 

FSE 

TOTAL 

782,7 

185,1 

11,3 

28,0 

62,4 

92,5 

26,2 

27,7 

259,9 

128,9 

42,1 

13,2 

90,5 

2,8 

11.2 

14,6 

37,0 

7.8 

3,3 

49,6 

30,0 

11.0 

0.3 

17,3 

967,7 
14,2 

39,2 

76,9 

129,5 

34.0 

31,0 

309,5 

158,9 

53,1 

13,5 

107,8 

8,0 

1,8 

9,8 

292,3 
51,9 

75,0 

50,8 

'  42,0 

72,5 

149,9 
24,9 

38,0 

28,6 

23,6 

34,8 

442,1 

76,8 

113,1 

79,4 

65,5 

107,3 

105,528 

29,765 

135,293 

2014,2 

110,7 

- 

84,9 

4,8 

76,4 

200,8 

282,2 

289,8 

31,3 

18,5 

24,0 

333,5 

263,6 

293,5 

661,6 

2675,8 

29,2 

28,8 

1.2 

25,2 

53,6 

96,2 

115.0 

7.2 

3,9 

8,4 

114.7 

70,9 

107,2 

139,9 

113,7 

6,1 

101,7 

254,4 

378,4 

404,9 

38,6 

22,4 

32,4 

448,2 

334,5 

400,7 

7053,0 

2094,6 

9147,6 

77,1% 

22,9% 

100,0% 

Italie 

Emilia-Romagna 

Friu/i-Venezia  Giu/ia 

Lazio 

Liguria 

Lombardia 

Marche 

Piemonte 

Toscana 

Umbria 

Valle  d'Aosta 

Veneto 

Luxembourg 

Pays-Bas 

Arnhem-Nijmegen 

Groningen-Zuidoost  Drenthe 

Twen te 

Zuid  Limburg 

Zuidoost-Brabant 

Finlande 

Royaume-Uni 

Eastern  Scotland 

East  Midlands 

Gibraltar 

Greater  London  (East London  and the Lee  Valley) 

Industrial  South  Wales 

' 

North  East  England 

North  West  England  (Greater  Manchester,  Lancashire  and Cheshire) 

Plymouth 

Thanet 

West  Cumbria  and Furness 

West Midlands 

Western  Scot/and 

Yorkshire  and  Humberside 

TOTAL 

Ventilation  par  Fonds 

n 

ANNEX  2 
ANNEXE 2 
ANLAGE 2 

Contribution  of  the  Structural  Funds  to  Objective  2  development  expenditure  for  the period  1997-1999 
Contribution  des  Fonds  structurels  aux dépenses  de développement  objectif  2  pour  la période  1997-1999 
Beitrag der  Struckturfonds  am den  Entwicklungsausgaben  in Ziel 2  fur  die  Période  1997-1999 

Environnement  productif 
Industries et  services 

- Tous  types d'industries  et  services 
-PME 
Tourisme 
Infrastructures de soutien 

te 

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

Aménagement  et  réhabilitation 
Sites industriels 
Zones urbaines 

Protection de l'environnement 

Assistance  technique 

TOTAL 

Belgique 

Danemark 

Allemagne 

Espagne 

France 

Italie 

Luxem 
bourg 

Pays-Bas 

Royaume-
Uni 

Mecu 

Finlande 

TOTAL 

% 

114 
66 
44 
22 
15 
34 

69 
30 
0 
38 

19 
19 
0 

8 

6 

37 
12 
12 
0 
9 
17 

30 
15 
0 
15 

0 
0 
0 

0 

1 

327 
113 
54 
59 
13 
201 

378 
242 
2 
134 

142 
142 
0 

45 

10 

699 
494 
0 
494 
0 
205 

518 
260 
0 
258 

89 
0 
89 

167 

12 

955 
428 
252 
176 
178 
349 

729 
351 
56 
322 

396 
189 
207 

131 

35 

508 
309 
77 
233 
105 
94 

241 
171 
.  9 
61 

135 
98 
37 

70 

14 

216 

68 

901 

1485 

2246 

968 

2 
2 
2 
0 
0 
0 

4 
2 
0 
2 

1 
1 
0 

4 

0 

J° 

214 
100 
57 
43 
43 
71 

177 
143 
0 
34 

41 
35 
6 

0 

10 

1404 
966 
564 
402 
211 
227 

897 
570 
0 
327 

298 
273 
25 

45 

32 

70 
46 
26 
20 
11 
13 

49 
14 
O 
35 

5 
O 
5 

5 

3 

4330 
2535 
1088 
1447 
586 
1210 

3092 
1799 
67 
1226 

1126 
757 
370 

47,4% 
27.7% 
11.9% 
15.8% 
6.4% 
13.2% 

33,8% 
19.7% 
0.7% 
13.4% 

12,3% 
8.3% 
4.0% 

474 

5,2% 

122 

1,3% 

442 

2676 

133 

9145 

100,0% 

BELGIUM 

ANNEX 3 

Background 

Between  15 April  1997 and 24 July  1997, the Commission  adopted  the four  Single 
Programming  Documents  (SPDs)  for  the Belgian  regions  of  Limburg,  Turnhout, 
Aubange and  Liège eligible for assistance from the Structural Funds under Objective 
2. 

The  total  contribution  of  the  Funds  (including  unused  resources  amounting  to 
MECU 26 transferred from the previous programming period  1994-1996) amounts to 
MECU 216  (ERDF 80 %, ESF 20 %) distributed as follows : 

Limburg 
Turnhout 

MECU 

67.8 
32.8 

Liège 
Aubange 

M*™ 

114.4 
1.0 

Regional Development  Strategies 

The strategic aim of the SPDs for both Limburg and Turnhout is for the creation of 
jobs  through  socio-economic  development  without  harming  the  environment.  The 
strategy for  Aubange  seeks to integrate recently introduced  large businesses into the 
economic  fabric  of  the  area,  in  particular  by  stimulating  links  between  businesses 
through  sub-contracting,  R&D,  logistics  and  external  services.  The  SPD  for  Liège 
continues the  1994-1996 strategy of structural conversion of the metal industry whilst 
supporting  sectors  with  growth  potential  through  stimulating  investment,  R&D and 
training. 

Development  Priorities 

Limburg  and  Turnhout  share  three  development  priorities,  whilst  Turnhout  also 
includes  Local  Development  Employment  Initiatives  in  a  priority  for  the  local 
economy : 

Industry 
Service sector 
Environment 
Local economy (Turnhout) 

2><o 

The following development priorities were agreed for Liège 

•  Dynamism and economic  diversification 
•  Technological  innovation 
•  Attractiveness of the region 
•  Dynamising employment through the social market economy 

In  Aubange,  measures  for  promoting  the  integration  of  SMEs  into  the  region 
concerned are being undertaken within one priority for : 

Support  for  business  and  employment  through  increased  awareness  of  the 
information society. 

Impacts 

In Limburg  Local  employment initiatives  are aimed at creating  100 new jobs,  half of 
which  would  be  for  women.  Other  targets  include  training  for  13,625  people,  the 
creation of 35 new businesses each year and the use of 40 hectares of regenerated land 
for  economic  activity.  The  SPD  for  Turnhout  anticipates  5,800  new  jobs, 
5000 people  trained,  250  SMEs  engaged  in  technological  and  innovative  projects, 
16 000  m2  of  new  SMEs  and  130  hectares  of 
industrial/commercial  sites. 
Aubange expects  50  new  direct  jobs  and  Liège  5,000  by  the  end  of  1999  whilst 
achieving national average unemployment levels. 

Value added from the  negotiations 

During  negotiation  between  the  Commission,  the  Flemish  authorities  and  the  two 
regions  concerned,  Turnhout  and  Limburg,  saw  the  strengthening  of  their  SPDs 
under certain themes : 

-  Actions  promoting  equal  opportunities  were  made  more  concrete,  as  was  the 
emphasis on the information  society.  Concentration on the worst affected  areas within 
the regions was guaranteed; 

-  The  overall  share  of  basic  infrastructure  was  reduced  in favour  of  business  (SME) 
measures,  e.g.  the budget  of the "Fenix" project was decreased  and new jobs were to 
be  reserved  for  people  from  the  region.  The  remaining  infrastructural  measures  also 
had  to  show  a  direct  connection  to  economic  activities  and  the  creation  of 
employment; 

-  The  importance  of  actions  favouring  employment  creation  was  emphasized  by  the 
inclusion  of  physical  indicators  in  every  measure  and  the  stipulation  that  the 
employment  effect  should  be  demonstrated  for  every  project.  The  priority  "Local 
Economy"  focuses  on  projects  with  a local  impact  in contrast  to  the  other  priorities 
where the impact was at regional level; 

3-4 

-  Stricter  conditions  were 
included  on  environmental  reporting  such  as  an 
environmental  profile  of the region and an annual report on the effects  of the projects 
on  the  environment.  The  programme  has  a  priority  specifically  dealing  with 
environmental aspects; 

-  The programming  approach  was  also  refined,  i.e.  a greater  coherence  between  the 
socio-economic analysis and the various priorities and measures was achieved, but also 
between the Funds. 

The latter aspect was also a key element in the negotiation  of the SPDs for Liège and 
Aubange obtained mostly by : 

-  a  significant  reduction  in  the  number  of  measures  in  order  to  ensure  greater 
coherence between the measures and the overall strategy of the SPD; 

- definition of selection criteria taking account of the employment aspect; 

-  amendment  of  the  implementation  arrangements  of  certain  measures  in  order  to 
increase their impact on local SMEs; 

-  a  reorientation  of  measures  related  to  RTD  by  placing  emphasis  on  analysis  of 
business needs, exploitation of research and dissemination of innovation to SMEs. 

- a refusal to accept certain proposed investments in basic infrastructure. 

?*. 

DENMARK 

Background 

On 22  April  1997, the  Commission  adopted  the two  Single Programming  Documents 
(SPDs)  for  the Danish  regions  of North  Jutland  and  Lolland  eligible  for  assistance 
from the  Structural  Funds under  Objective  2.  The total  contribution  of the  Structural 
Funds,  including  unused  resources  amounting  to  MECU  2.7  transferred  from  the 
previous  programming  period,  amounts  to  MECU-68.23  (ERDF  77  %;  ESF  23  %) 
distributed as follows : 

North  Jutland 
Lolland 

MECU 
54.40 
13.83 

Regional Development  Strategies 

The overall strategic aim of the North  Jutland  SPD is to strengthen the conditions for 
increased  growth  in the region's businesses and thereby  increase the number  of jobs in 
the  Objective  2  area  in  general.  The  strategy  for  reaching  this  objective  is 
"globalisation"  :  a  strengthening  of  the  ability  of  firms  to  compere  internationally 
through 
increased  competence  and  by  strengthening 
training  and  infrastructural  frameworks.  The  strategy  for  Lolland  is  to  develop  and 
utilise the region's potential and to develop interaction between the region and national 
and economic  environment. 

innovation,  diversification, 

Development  Priorities 

In North  Jutland  the strategy is addressed by two development  priorities 

•  Globalisation  of the manufacturing  industry and the service industry 
•  Globalisation  of the tourism  sector 

The main priority for Lolland  is for : 

Business development  through the region's potential 

—-JO 

Impacts 

In addition to quantified  targets for the number of jobs to be created or maintained  (see 
main text) other aims of the programmes include: 

North Jutland  : 

- creation of  17 businesses; 
- increase in SME turnover of ECU 313 million; 
- introduction of new technologies or production processes by 50% of 

articipating SPDs; 

- development of new markets in 55% of projects; 
- training of around 4,800 people. 

Lolland  : 

- 600 people trained; 
- other impact indicators, such as level of technology in SMEs, number of 
R&D contacts established,  SMEs establishing new markets. 

Value added  from  the  negotiations 

The two  Danish  1997-1999  Objective  2  SPDs  were  the  result  of  detailed  work  at  all 
levels in the partnership  between  the regions, the Member  States and  the  Commission 
services.  A  negotiation  meeting  took  place  in  Copenhagen  in  November  1996  with 
representatives  from  both  regions, the Member  States  and  thé Commission.  The  work 
had the advantage 6f having the mid term-evaluation  of the  1994-1996 almost  finalized 
at that time, giving the possibility of using the recommendations from  the report. 
The following  particular aspects may be highlighted : 

The  analysis  of  the  socio-economic  situation  of  the  regions  was  significantly 
expanded  and  updated  with  the  latest  available  figures  on  the  regions' 
conditions,  needs  and  opportunities.  In  Lolland  this  resulted  in  a new  scheme 
to  tackle  the 
individual  training  needs  of  the  various  groups  at  risk  of 
unemployment. 

There  were  small  adjustments  in  the  programme  for  Lolland,  whereas  the 
overall  strategy  for  Nordjylland  was  changed  even  before  the  negotiations 
from "Industrialisation" to  "Globalisation"; 

The structure  of the programme  for  Nordjylland  was changed  to  simplify  the 
management of the programme; 

Less  weight  will  be  put  on  direct  investment  aid  to  enterprises,  and  more 
weight will be put on improving framework-conditions  for the enterprises in the 
programmes; 

Support  will  be  given  to  vocational  training,  planning,  flexible  vocational 
training offers, job-rotation  projects, adult  apprenticeship; 

Investments  in basic infrastructure  have been  excluded  in the  new  programmes 
and replaced by investments in "Strategic Infrastructure"  (e.g. support for R&D 
infrastructure  and  infrastructure  supporting  communication  and  information 
systems; 

Although equality between men and women is embedded in the legal  system in 
enmark, and equality of opportunity is an implicit horizontal objective to which 
the  Danish authorities are committed, the programmes contain measures where 
special attention is paid to the qualification of women; 

Quantification of indicators was given particular attention, and the system to 
supply the "PHYSIN" database with updated figures was improved; 

The Monitoring Committees now include a representative from the 
Environmental Authorities. 

5^ 

GERMANY 

Background 

On  7  May  1997,  the  Commission  adopted  the  9  Single  Programming  Documents 
(SPDs) for the German  regions of Bayern, Berlin, Bremen, Hessen,  Niedersachsen, 
Nordrhein-Westfalen,  Rheinland-Pfalz,  Saarland  and  Schleswig  Holstein  eligible 
under  Objective  2  of  the  Structural  Funds.  The  total  contribution  of  the  Funds 
(including  unused  resources  amounting  to  MECU  40  transferred  from  the  previous 
programming  period  1994-1996)  amounts  to  MECU  901  (ERDF  71  %;  ESF  29  % 
distributed  as follows : 

Bayern 
Berlin 
Bremen 
Hessen 
Niedersachsen 

MECU 

19.8 
191.2 
55.1 
29.9 
49.9 

Nordrhein-Westfalen 
Rheinland-Pfalz 
Saarland 
Schleswig  Holstein 

MECU 

450.6 
27.6 
58.9 
18.0 

Regional Development  Strategies 

The key  strategic  aim in Bayern  remains  reducing  dependency  on traditional  industry 
through  diversification  into  growth-sectors  and  making  the  regional  economy  less 
vulnerable to economic crises. 

Berlin's  strategy  aims  to  stop  the  process  of  the  de-industrialisation  and  disparities 
between  East  and  West  Berlin,  the  latter  assuming  a  locomotive  function  for  East 
Berlin and the surrounding area. 

Bremen's  strategy integrates all structural  development  actions, aiming in particular  to 
diversify  the  regional  economic  structure,  strengthen  the  service  sector  and  tourism 
and 
the 
environment.  A  feature  of  Hessen's  approach  is  the  support  of  business  and  SMEs 
which exceed the legal obligations in terms of environmental  investment. 

including  protection  and 

location  factors, 

improvement  of 

improve 

In continuity with the  1994-1996 programme, the strategy for  Niedersachsen  is aimed 
at  tackling  job-bosses  from  industrial  change.  The  strategic  aims  for  Nordrhein-
Westfalen  include linking  economy  and  ecology  and becoming  a leading  player  in the 
media industry. 

u 

In  Rheinland-Pfalz,  the  aim  is  to  strengthen  growth  and  the  employment  situation 
whilst  improving  the  competitiveness  of  business  in  general,  and  SMEs  in  particular. 
Saarland's  development  objectives  include  improving  transport  and  communication 
and  better  exploitation  of cross-border  cooperation  (Saarland-Lorraine-Luxembourg). 
Following  on  from  its previous  priority,  the strategy  for  Schleswig  Holstein  includes 
the  aim  of  reducing  the  structural  problems  of  Kiel  resulting  from  the  crisis  in  naval 
construction  and reconversion of the armaments industry. 

Development  Priorities 

In  addressing 
development priorities : 

the  above  strategic  aims,  the  SPDs  encompass 

the  following 

•  Diversification  and  modernisation  of  industry  (inc.  crafts)  (e.g.  Bremen  and 

Niedersachsen) 

•  Infrastructure  linked  to  economic  activity  (e.g.  Bayern,  Berlin,  Rheinland-Pfalz, 

Schleswig  Holstein) 

•  Technological  development  and  innovation  (e.g.  Berlin,  Nordrhein-Westfalen, 

Rheinland-Pfalz,  Saarland) 

•  Human Resources development, training and qualification  (all SPDs) 
•  Protection  of  the  environment,  site  regeneration  etc.  (e.g.  Berlin,  Bremen, 

Nordrhein-Westfalen,  Saarland) 

Impact 

All  the  SPDs  contain  ex-ante  evaluations  of  the  programmes'  impacts,  including  an 
estimate of the number  of net  additional jobs in the programme  area (see main text) as 
well  as  a  range  of  other  quantified  physical  and  economic  outputs.  For  example, 
200 hectares  of regenerated  sites in Bremen; the qualification  of  100-200  unemployed 
people in Hessen;  the  recycling  of 6,000  tonnes  of raw material  per  annum  in Berlin; 
the  switching  of  100,000  road  transports  a  year  to  rail  (Nordrhein-Westfalen)  and 
3,000 consultations and 50 seminars per annum in technology transfer  (Saarland). 

3? 

Value added from the negotiations 

Discussion  on  format  and  content  of  the  1997-1999  Regional  Development  Plans 
started  at  a  rather  early  stage.  On  the  occasion  of  an  Objective  2  Monitoring 
Committee held on  14/15 May  1996, important  aspects  of the new programming  such 
as  the  policy  priorities  for  Objective  2,  the  allocation  of  funding  to  the  individual 
Lander  concerned  and  evaluation  requirements  were  addressed  so  as  to  ensure  their 
observation  in the programming  exercise. The Regional  Development  Plans  submitted 
in  August  1996  followed  an  agreed  and  harmonized  schema  and  structure  which 
facilitated  the  ensuing  detailed  discussion  on  each  of  the  nine  individual  plans.  As  a 
result  the overall  strategic objectives,  priorities  and  measures  are  consistent  with  each 
other and in most new SPDs concrete actions are proposed at the project level. 

Whilst  there  is  a  high  degree  of  continuity  with  the  previous  SPDs,  the  focus  on  the 
priorities  of  the  Commission  guidelines  is  present  in  all  new  SPDs.  During  the 
negotiation,  the  following  main  results  were  achieved,  representing  improvements  in 
relation to the previous planning period : 

There  is  an  emphasis  on  employment-related  objectives  in  all  SPDs.  Thus  in 
several  programmes 
the  element  of 
employment  aids  has  been  considerably  increased  compared  to  training 
measures. Measures which had proved to be of a poor job-creating potential  in 
the previous period were not carried on. 

(Berlin,  Nordrhein-Westfalen), 

Environmental actions and equal opportunities were  incorporated  within 
priorities as horizontal goals and, where appropriate, as specific measures. 

Measures to support  SMEs were increased and targeted more specifically  to 
their needs (e.g. in the field of R&D and risk capital  financing). 

Synergies between ERDF and ESF actions were enhanced. 

Consistency  and  complementarity  has  been  sought  between  Objective  2 
measures and measures implemented under Objectives 3 and 4. 

Existing and new measures in the framework of Employment Pacts were 
included. 

The quantification  of objectives has largely been improved as far as expected 
outputs are concerned. 

The  priority  "local  development"  (new  sources  of  employment)  has  been 
translated  mainly into training measures for  service jobs of various  kinds  (from 
enterprise-related 
services  and 
environment). 

social  or  neighbourhood 

services 

to 

ÎR 

Background 

SPAIN 

On 12 June 1997, the Commission adopted the Community Support Framework (CSF) 
1997-1999  for  the  regions  of  Spain  eligible  under  Objective  2.  The  CSF  is  being 
implemented  through  seven  regional  Operational  Programmes  and  one  multiregional 
ESF Operational Programme. 

The total  contribution  of the  Structural  Funds including  unused  resources  amounting 
to MECU  156 transferred from the previous programming period  1994-96, amounts to 
MECU  1,485 (ERDF 76 %, ESF 24 %) distributed  as follows : 

Aragon 
Baléares 
Cataluna 

MECU 

108.44 
15.19 
709.69 

Madrid 
Navarra 
LaRioja 
PaisVasco 

MECU 

212.23 
27.63 
18.35 
393.51 

Regional Development  Strategies 

The  Strategy  of  the  Community  Support  Framework  reflects  continuity  with  the 
previous  CSF  1994-1996  being  centred  on  the  creation  of  employment  and  the 
increased competitiveness of business. 

Development  Priorities 

Pursuit  of  the  regional  development  strategy  is  underpinned  by  the  following 
development priorities: 

Support for employment and business competitiveness 
Protection  and improvement of the environment 
R&D, technology and innovation 
Development of transport linked to economic activity 
Local and urban  development 

Impacts 

For each of the above priorities, a number of quantified  indicators has been  established 
relating,  for  example,  to  the  number  of  new  businesses  per  10,000  inhabitants 
(Priority 1); percentage  of waste treated  by new equipment  (Priority  2); employment in 
RTD as a percentage of total employment (Priority 3);  road or rail density (Priority 4); 
average duration of unemployment (Priority 5). 

i^ 

Value added from the negotiations 

In  accordance  with  the  Commission's  Note  for  Guidance  and  as  a  result  of  the 
partnership  negotiations to  establish the CSF, the  following  main  adjustments  to the 
original plan were made : 

Compared  with  the  conversion  plan,  the  CSF  shows  an  increased  financial 
support  for  SMEs  in the fields of  productive  investment,  soft  measures  and 
vocational training. 

The  ERDF  participation  in  favour  of  priority  3  (research,  technology  and 
innovation) has been financially increased. 

A better  integration  of  actions  co-financed  by the  ERDF  and  ESF  has been 
achieved,  as  well  as  a  clear  differentiation  of  ESF  Objective  2  actions 
compared with interventions in Objectives 3 and 4 ; 

The  rate  of  EU  co-financing  in  priority  4  (transport  linked  to  economic 
activity) has been reduced compared to the level initially proposed. 

ESF  actions  in  priority  2  (environment  protection)  will  be  specifically 
identified,  which will increase visibility of ESF interventions in this  field. 

Ho 

FRANCE 

Background 

With the exception of Lorraine, the Commission adopted the 19 Single Programming 
Documents (SPDs) for the French regions eligible under Objective 2 of the Structural 
Funds between 24 March 1997 and 4 August 1997. 

The  total  contribution  of  the  Funds  (including  unused  resources  amounting  to 
MECU  208.6  transferred  from  the  previous  programming  period  1994-1996  but 
excluding  MECU  39.4  still  to  be  allocated  for  a  multiregional  programme  for the 
defence industry plus technical assistance funding) amounts to MECU 2,246 (ERDF 
82 %; ESF 18 %) distributed as follows : 

MECU 

, 2 1 .9 

Alsace 
Auvergne 
Bretagne 
Centre 
Franche-Comté 
Languedoc-Roussillon 
Midi-Pyrénées 
Pays de la Loire 
Poitou-Charentes 
Provence-Alpes Côte d'Azur 

82.3 
118.3 
37.9 
56.2 
98.9 
52.9 
162.5 
62.9 
154.4 

Aquitaine 
Basse-Normandie 
Bourgogne 
Champagne-Ardenne 
Haute-Normandie 
Lorraine 
Nord-Pas-de-Calais 
Picardie 
Rhône-Alpes 

132.5 
80.3 
69.7 
113.8 
164.2 
173.6 
375.4 
139.6 
148.9 

Regional Development Strategies 

In  broad  continuity  with  the  previous  programming  period  1994-1996,  the  global 
strategy  of these regions is the creation  and maintenance  of  employment..  Although 
there is sometimes a degree of overlap, regional approaches may be grouped  around 
the following main strategic aims. 

-  support for business creation and development including the provision of services to 
SMEs  in  respect  of  Information  and  Communications  Technologies, financial 
engineering, 
(Basse-Normandie,  Languedoc-
Roussillon, Nord-Pas-de-Calais). 

increasing  export  capacity 

-  diversification  from  traditional  industry  into  new  economic  activities  includes 
research  and  technology  transfer  and  local  development  (Champagne-Ardenne), 
high-level  services  and  the  development  of  tourism  (Provence-Alpes-Côte 
d'Azur). 

-  In  some  areas,  the  approach  is  to  consolidate  or  restart  industrial  employment 
(Midi-Pyrénées)  or  maintain  a  strong  industrial  presence  whilst  diversifying  into 
new areas (Rhône-Alpes) and anchoring businesses in the area. 

k-i 

-  the importance of endogenous development is stressed in the SPDs for  Bourgogne 

and Centre and similarly, 

- 

increasing the attractivenesi of the area and improving the businesses and economic 
environment is highlighted in Auvergne and Aquitaine. 

Priorities 

The SPDs likewise encompass the following main development priorities 

•  Support to business development 
•  Upgrading and restructuring the area and environment 
•  Research and technological development and innovation 
•  Valorisation of human resources 
•  Improving the attractiveness of the area 

Impact 

The SPDs contain estimates of the number of jobs to be created in the programme area 
(see  text)  as  well  as performance  indicators  and  quantified  objectives  for  each  of  the 
measures concerned. 

Value added from the negotiations 

This concerned  in particular : 

- the establishment  of elements missing from some of the initial proposals  relating,  for 
example,  to  socio-economic  analysis,  base  indicators,  environmental  evaluation, 
needs analysis, especially in terms of urban issues and the defence  industry; 

- strengthening of measures for assessing training needs; 

-  the  promotion  of  R&D,  which  was  already  present  in the  previous  phase,  has  been 

maintained or strengthened  in both qualitative and financial terms. 

-  adjustment  of  resources  towards  assisting  SMEs to  counter  negative  effects  arising 

from  sectors in difficulty  such as the defence industry; 

-  agreement 

in  partnership  to  remove  infrastructure  proposals  which  did  not 

correspond to the Commission's guidelines in this area; 

<4<L 

- inclusion of Territorial and Local Employment Pacts (for  example Pays de la Loire 
and Nord-Pas-de-Calais)  and agreement with French authorities to pursue the Pact 
methodology  for  other  proposals  (e.g.  Picardie  and  Haute-Normandie)  for 
presentation in the course of implementation of the SPDs; 

- increase in specific actions for urban problems; 

-  additional  information  relating  to  the environmental  impact  of  measures  especially, 
for  example,  relating  to  compatibility  between  economic  and  port  development 
(Haute-Normandie,  Pays  de  la  Loire)  and  the  preservation  of  habitats  (notably 
Birds and Habitat Directives). 

43 

ITALY 

Background 

Between  7  May  1997  and 24  July  1997  the  Commission  adopted  9  of the  11  Single 
Programming  Documents  (SPDs)  for the  regions  of Italy  eligible  under  Objective  2. 
The  SPDs  for  Friuli  and  Lazio  were  due to  be  adopted  by the beginning  of  October 
1997. 

The total  contribution  of the  Structural Funds (including unused resources  amounting 
to MECU  170 transferred  from the previous programming period  1994-1996) amounts 
to MECU 968 (ERDF 80; ESF 20 %) distributed as follows: 

Emilia-Romagna 
Friuli-Venezia-Giulia 
Lazio 
Liguria 
Lombardia 
Marche 

MECU 

14.2 
39.3 
76.9 
129.5 
34.0 
31.0 

Piemonte 
Toscana 
Umbria 
Vallée d'Aosta 
Veneto 

309.5 
159.0 
53.2 
13.5 
107.9 

Regional Development  Strategies 

Strategies  have  generally  provided  continuity  with  the  previous  programming  period 
than  before 
Sometimes  strategic  aims  have  been  better  defined 
1994-1996. 
(eg.: Marche) or are more geographically focused  (Lazio). 
Examples of common strategic aims include : 

-  Strengthening  and  modernising  SMEs  and  the  creation  of  new  businesses 
(eg.Fruili-Venezia-Giulia, Lazio, Liguria, Veneto, Marche, Piemonte, Toscana) 

-  Diversification  into  high  technology  research  and  innovative  sectors  (eg.Fruili-

Venezia, Giulia, Liguria, Emilia-Romagna,  Toscana) 

-  Environment 

improvement  and 

increasing 

the  attractiveness  of  the  region 

(all regions except  Vallée d'Aosta) 

-  Human Resources development and qualification  (all regions) 

A  specific  strategic  aim  of  Emilia  Romagna  is  to  promote  links  between  the  new 
Objective 2 area of Ferrara and Reggio/Modena. 

U*f 

Development Priorities 

The SPDs for Italy accordingly encompass the following  range of main development 
priorities : 

Strengthening of existing SMEs and promotion of new businesses 
Upgrading and development of the local area 
Human resources development and qualification 
Environmental protection and regeneration 
Tourism and cultural heritage 
Research and Technology and Information Society 
Territorial Employment Pact (Emilia Romagna) 
Equal Opportunities 

Impacts 

In addition to the ex-ante estimates of the number of jobs to be created or maintained 
(see main text) examples of other expected impacts include : 

increasing hotel take-up by tourists by 200,000 (Umbria) 

-  assistance to  1,700 SMEs (Toscana) 
- 
-  regeneration of 450,000 m2 of waste land (Piemonte) 
-  treatment of additional 50,000-100,000 tons of waste (Lombardia) 
-  training of 120 graduates as Innovation Information Officers (Lazio) 

Value added from the negotiations 

Following an initial round of negotiations with the Italian authorities in Rome from 4th 
to  8th November  1996 on all  11 Programming Documents, separate discussions were 
undertaken with each region. The following main results were achieved: 

-  the  Programming  Documents  were better  defined  in  order  to  improve  the 
targeting of the strategy and objectives of each programme; 

-  a  revision  of  the  financial  allocations  by  measure.  In  particular,  a  general 
underestimation  of  human  resources  needs  and  technological  innovation  was 
ascertained. An increase in ESF assistance was therefore agreed for most of the 
SPDs in order to at least maintain the same level as in the previous period (i.e. 
around  20% on average).  Additional  support  was  also given to  research  and 
technological innovation; 

-  a  reorganisation  of  priorities  for  each  SPD.  In  particular,  in  terms  of  the 
introduction  of  innovatory  elements  (inc.  information  society,  Employment 
Pacts) in line with the Commission guidelines; 

- a detailed examination was undertaken of the different  measures proposed  for 
cofinancing,  especially  as  regards  their  eligibility  and  suitability.  The 
Commission's observations were generally welcomed by the Italian authorities; 

ks 

- environmental  aspects were given particular attention in order to improve the 
environmental profiles, the quantification of indicators and impact as well as the 
association  of 
in  the  preparation  and 
implementation of the SPDs; 

the  environmental  authorities 

- the probem of additionality was addressed and representivès of the Treasury 
undertook to transmit provisional data for  1997-1999 calculated on the basis of 
the same methodology used in the past, as well  as definitive  data for the years 
1994-1995. 

- following the guidelines proposed by the Commission, particular attention 
was given in the programming of all the Italian SPDs to integrated approaches 
which were likely to create new jobs, especially with regard to new sources of 
employment. Furthermore, aids to employment are included in the majority of 
the SPDs. 

kh 

LUXEMBOURG 

Background 

On 15 April 1997, the Commission adopted the Single Programming Document (SPD) 
for  the  region  of  Esch-sur  Alzette  and  Capellen  concerned  by  Objective  2  in  the 
Grand  Duchy of Luxembourg. The total  contribution  of the Funds  (including unused 
resources  amounting  to  MECU  1.771  transferred  from  the  previous  programming 
period  1994-1996) amounts to MECU 9.837 (ERDF 81 %, ESF 19 %). 

Regional Development Strategy 

The Strategy proposed for the new programming period is aimed at continuing  efforts 
at diversification from the region's traditional heavy dependence on the steel industry: 
attraction  of new businesses including support  infrastructures,  productive investment, 
vocational  training,  research  and  development  and  technology  transfer.  Particular 
emphasis is being placed on improving the quality of the environment. 

Development Priorities 

In  pursuing  the  above  strategy,  five  development  priorities  were  adopted  for 
Community financing 

Innovation in Enterprises 
Stimulating  development  and  the  diversification  of  economic  structures  and 
activities 
Protection and improvement of the environment 
Support for the stability and growth of regional employment by measures for human 
resources development 
Technical assistance 

Impacts 

Amongst  the  expected  impacts  the  SPD  anticipates  the  creation  or  maintenance  of 
700-900 direct jobs.  Quantified  environmental objectives have also, for example, been 
provided under Priority 3: Protection and improvement of the Environment. 

^ 

Value added from the negotiations 

The  proposals  presented  by the Luxemburg  authorities  already  took  account  of  the 
Commission's guidelines for Objective 2. In addition, negotiation with the Luxemburg 
authorities led to the following changes compared to the original proposals : 

The  number  of  proposed  measures  was  reduced  in  order  to  ensure  greater 
coherence of the strategy. 

criteria 

(taking 

account 

selection 

and 
Project 
quantified  objectives were devised for each measure and for the programme as 
a whole  : this quantification  concerned the number of jobs created,  direct and 
indirect.  It  is thus anticipated  that  between  700 and  900 direct jobs  could be 
created  or maintained  in the eligible regions as a result of the measures in the 
SPD. 

employment) 

of 

Implementation  provisions  were  devised  in  order  to  increase  the  impact  of 
measures for local businesses. 

Environmental  indicators  were  provided  under  Priority  3  "Protection  and 
Improvement  of  the  Environment".  Certain  preventive  measures  were 
supported (e.g. recycling of cars). 

Priority  4  "Support  for  the  stability  and  growth  of  regional  employment 
through  the  development  of  human  resources"  was  amended  and  makes 
explicit reference to actions aimed at equal opportunities, the implementation of 
Employment Pacts and the promoting of local services. 

Proposals for investment in certain "heavy" infrastructures were not accepted. 

U3 

NETHERLANDS 

Background 

On  26  May  1997,  the  Commission  adopted  the  five  Single  Programming  Document 
(SPDs)  for  the  Dutch  region  of  Arnhem-Nijmegen,  Zuidoost  Brabant,  Zuid 
Limburg, Twente and  Groningen-Drenthe. 

The Total  contribution  of the Structural Funds (including unused  resources  amounting 
to  MECU  80 transferred  from  the previous  programming  period  1994-1996)  amounts 
to MECU  442 (ERDF 66 %, ESF 34 %) distributed as follows : 

Arnhem-Nijmegen 
Zuid-Limburg 
Groningen-Drenthe 

__ 

77 
66 
113 

MECU 

" 

Zuidoost  Brabant 
Twente 

107 
79 

Regional  Development  Strategy 

The general  strategic aim of all the Dutch  SPDs is sustainable  economic  development, 
with the creation  of new jobs  and  improvement  of the  quality  of life  without  harming 
the environment. 
The  SPD  for  Arnhem-Nijmegen  also  builds  on  its  strategic  location  on  important 
transport  arteries.  The  strategy  for  Zuidoost-Brabant  emphasises  the  role  of  SME 
clusters and new technologies. 

Development  Priorities 

In addressing the strategic aims, the SPDs encompass the following  priorities 

^i 

Arnhem-Nij megan 

•  "Euro  Trade  Port"  (expansion  of  transport  and  distribution  function 

and commercial  services) 
•  Industry and Innovation 
•  Tourism and Urban (economic) climate. 

Zuid-Limburg 

•  Industry and related  services 
•  Transport  and logistics 
•  Knowledge development and  transfer 
•  Tourism and living environment. 

Groningen-Drenthe 

•  Industry, business services and tourism 
•  Productive environment and urban economy. 

Zuidoost-Brabant 

•  Strengthening of industrial  structure 
•  Tourism, living and business environment. 

Twente 

•  Transport  and  distribution 
•  Industry 
•  Tourism 

Impacts 

Amongst the key expected  impacts are increases in Gross Regional Product'in Twente, 
Zuidoost-Brabant  and Groningen-Drenthe  and a positive migration  of enterprises  to 
the  region  (Twente  and  Groningen-Drenthe).  The  number  of  estimated  new  jobs 
ranges  from  11,400  (permanent  and  temporary)  in  Groningen-Drenthe  to  2,000 
permanent jobs in Zuidoost-Brabant.  All the SPDs have training targets ranging  from 
17,500 employees and 9,500  unemployed  people to be trained  in  Groningen-Drenthe 
to 3,330 and 2220 in Arnhem-Nijmegen. 

Value added from the  negotiations 

In  June  1996  DG  XVI  presented  the  Commission's  guidelines  with  regard  to  the 
second  programming  period  1997-1999  to  a joint  meeting  of  DG  XVI,  the  national 
authorities  and  the  repesentatives  of  the  five  Objective  2  regions  in  the  Netherlands. 
When the Dutch  authorities  presented  the five Single Programming  Documents  to  the 
Commission  on  23  September  1996  many  of  the  Commission's  priorities  had  been 
taken  into  account,  especially with  regard  to  employment,  business-oriented  measures 
and productive  investments. 

5"o 

In  the  negotiations  which  followed,  emphasis  was  placed  by  the  Commission  on 
reflecting the new guidelines as concretely as possible. The share of basic infrastructure 
was reduced considerably and only allowed if of a productive nature and where a clear 
and  direct  link  to  economic  activities  and  employment  could  be  demonstrated.  The 
smaller  share  for  infrastructure  benefited  the  business-oriented  measures  (mainly 
SMEs) as well as actions aimed at R&D whose share was increased. 

greater emphasis was given to improving skills and adapting vocational 
qualifications of the labour force which has led to an increase of human 
resource activities in the new programmes and the fostering of local 
employment initiatives for the worst affected groups. 

the  importance  of  actions  favouring  employment  creation  was  emphasized  by 
the  inclusion  of physical  indicators  for  every  measure  and the  stipulation that 
every  project  had  to  demonstrate  its  employment  effect.  A  further  positive 
change  compared  to  the  first  programming  period  was  the  introduction  of 
measures containing actions with regard to local employment initiatives. 

strict  conditions  were  included  on  environmental  reporting  such  as  an 
environmental  profile  of the region  and an annual  report  on the  effects  of the 
projects on the environment. 

during the negotiations of  1994-1996, the Commission encouraged the drafting 
of  Regional  Technology  Plans,  the  implementation  of  which  will  take  place 
during the second Objective 2 programming period 1997-1999. 

the  programming  approach  was  refined,  i.e.  a greater  coherence  was  sought 
between  the socio-economic  analysis  and the various  priorities  and measures, 
but  also  between  the  Funds  as  the  Commission  encouraged  the  initiation  of 
combined  ERDF  and ESF  projects.  An example  with regard  to  the  latter  : in 
the Groningen-Drenthe  programme the project concerning the zoo  in Emmen 
was  approved  on  condition  that  ESF-training  projects  were  included.  The 
programme for both Limburg and Zuidoost  Brabant  have integrated  specific 
human resources  measures into their priorities for  local  development  and new 
sources of employment. 

sw 

FINLAND 

Background 

On 24 April  1997 the Commission adopted the Single Programming Document  (SPD) 
for Finland  under Objective 2 of the Structural Funds for the period  1997-1999.  The 
total  contribution  of  the  Structural  Funds  (including  unused  resources  amounting  to 
MECU  16.145  transferred  from  the  previous  programming  period  1995-1996) 
amounts to MECU  135.293 (ERDF 78 %; ESF 22 %) distributed as follows: 

Varsinais Suomi 
Satakunta 
Pâijât-Hame 
Keski-Suomi 

6.782 
30.250 
27.473 
24.758 

Regional Development  Strategy 

MECU 

Kymenlaasko 
Ita-Uusimaa 
Etelâ-Karjala 
Keski-Pohjanmaa 

14.465 
1.579 
17.146 
8.654 

In  the  1997-1999  programming  period,  the  development  strategy  for  the  Objective  2 
areas is to: 

create and upgrade jobs and diversify the structure of the economy; 
improve the competitiveness of businesses and the skills of the labour force; 
and to increase international  cooperation. 

To  emphasise  the  employment  aspect,  the  effect  on job-creation  will  also  be  a  core 
criterion for selecting projects. 

Development  Priorities 

The programme comprises three main development priorities: 

•  Increasing, developing and internationalising business activity. 
•  Raising levels of skills and technology. 
•  Infrastructure,  environment  and tourism. 

^"1, 

Impacts 

In addition to quantified targets for the number of jobs to be created or maintained (see 
main text) the other aims of the programme include: 

- 2,900 new SMEs; 
-  1,020 new businesses run by women; 
- 400 agreements for sub-contracting, cooperation or networks; 
- improving employability through the training of 8,300 people. 

Value added from the negotiation of the programme 

The renegotiation of the programme (in Finland's case after  only two years) brought a 
number of benefits; As regards the priorities for Objective 2, these included: 

-job-creation raised to first place in the list of priorities in selecting projects 
and a greater attempt made to operationalise this criterion; 

- other Objective 2 priorities (innovation, equality of opportunity and 
environment made more explicit and given status of'core criteria' for the 
selection of projects; 
- infrastructure  provision reduced from  13% to  10% of the budget with an 
agreement to explore the possibilities of loan finance from the EIB. 

Other aspects included: 

- a rethink of the programme from the bottom up; 
- an opportunity to simplify the structure of the programme; 
- clarification of the rules of partnership in decision-making; 
- the contribution of additional ex-ante evaluation and ex-post evaluation; 
- the consideration of  'taboo' subjects (such as the possibility of transferring 

funding from poorly performing regions to better performing ones); 

- the need  for simplification of the budget arrangements for national funding 
and to create scope for innovative financial packages for business projects 
such as combinations of grant and loan finance and for EIB loans for 
infrastructure; 

- demonstration of the inadequacies of the monitoring system when the old 

programme had to be closed; 

- provision for interregional projects 

Q> 

UNITED  KINGDOM 

Background 

Between  3 April  1997  and  11 July  1997, the  Commission  adopted  the thirteen  Single 
Programming  Documents (SPDs)  for  the  regions  of the U.K.  eligible under  Objective 
2.  The  total  contribution  of  the  Funds  (including  unused  resources  amounting  to 
MECU  155 transferred  from the previous programming period  1994-1996)  amounts to 
MECU 2,676 (ERDF 75 %; ESF 25 %) distributed as follows : 

East London and the Lee Valley 
East Midlands 
Eastern Scotland 
Gibraltar 
Great Manchester, Lancashire, Cheshire 
Industrial  South Wales 
North East England 

MECU 

101.7 
113.7 
139.9 
6.0 
404.8 
254.4 
378.4 

Plymouth 
Thanet 
West Midlands 
West Cumbria and Furness 
Western Scotland 
Yorkshire and Humberside 

38.6 
22.4 
448.2 
32.4 
334.5 
400.7 

Regional Development  Strategies 

In many cases the socio-economic  situation of the region had not  significantly  changed 
and the strategic aims and underlying vision of the programmes therefore  remained  the 
same  as  in  the  previous  period.  Nonetheless,  certain  changes  in  strategic  priorities 
have been made compared to  1994-1996 as follows : 

-  Strategic  Spatial  Development  comprises  a  new  priority  for  most  Objective  2 
regions,  recognising  the  need  for  an  integrated  area-based  approach  focused  on 
areas of opportunity to  substantial  physical investment in order to  maximise its job-
creating  potential.  N.E.  England's  1994-1996  priority  for  business  development 
and inward  investment  was also been transformed  into  a priority for  strategic  area-
based  regeneration.  This  new  priority  provides  a  direct  link  to  Community 
Economic Development by encouraging the planning of major  physical devlopments 
in such a way  as to  optimise job  creation  and training opportunities  for  residents  of 
the regions'  most deprived  communities. 

-  Community Economic Development 

A new priority for  Community  Economic Development  (inc. building local  capacity 
to  develop  and  deliver  local  regeneration  projects)  has been  introduced  in  Thanet 
while in Industrial  South  Wales  the existing local  development  actions  have  been 
strengthened  and now comprise a dedicated  priority. 

51/ 

-  Other  strategic  changes  include  less  focus  on  infrastructure  and  more  on  job 
creation,  perhaps  most  notably  in Gibraltar where the  programe will  no  longer  be 
dedicated  entirely  to  infrastructure;  more  precision  in  SME  measures  in  West 
Cumbria  and  Furness;  a  new  Priority  for  tourism  in  E.  Scotland  and  the 
adjustment  of  strategic  objectives  to  maximise job-creation  in E.  London  ;  a  new 
Priority for  applied  research, technological  development  and innovation in Western 
Scotland  ; a review of the quality, impact  and focus  of tourism  training in  Eastern 
and Western  Scotland  ; and the introduction  of local job brokerage  facilities  under 
several programmes. 

Development  Priorities 

Including  the  above,  the  U.K.  SPDs  encompass  the  following  range  of  main 
development priorities : 

•  Actions to support  SMEs, inc. start-up, development  of SME growth  competitiveness 

and indigenous potential 

•  Knowledge-based  industries, advanced technologies, R&D and innovation 
•  Tourism and cultural  industries 
•  Strategic spatial  development 

•  Community economic development 

Expected  Impacts 

All  the  SPDs  contain  ex-ante  evaluation  of  the  programmes  impact;  including  an 
estimate of the number of net additional jobs in the programme area, as well as a range 
of quantified  physical and economic outputs. 

Value added from the  negotiations 

The  1997-1999  U.K.  Objective  2  SPDs were the result  of detailed  negotiations  which 
took  place in the framework  of the partnership  in each eligible region,  sometimes  with 
more than 200 people attending meetings. As a result, all the new SPDs now contain a 
significantly  improved  analysis  of  the  traditional  industrial  regions'  particular  socio 
economic  conditions, needs and  opportunities.  The regions were encouraged  to  focus 
their development  strategies on their real priorities, some of the SPDs containing  fewer 
priorities  compared  to  1994-1996  in order  achieve  greater  concentration  on  the  main 
regional  'drivers for change'. The following particular aspects may be highlighted: 

-  an  improved  definition  of  the  economic  development  measures  to  be 
implemented  through  each priority, better  clarifying  the scope  of each  measure 
and the outputs to be achieved; 

-  an integration  within  each development  priority of'hard'  and  'soft'  measures 
(ERDF)  with  appropriate  provision  for  human  resources  development  (ESF). 
In  all  the  new  SPDs,  each  priority  now  combines  measures  financed  by  each 
Structural  Fund; 

5T" 

- clarification  of responsibilities within the regional  partnerships in terms of the 
strategic delivery of each priority; 

-  an increased  allocation  to  measures  better  able to  create  quality jobs  in the 
regions with a reduction in ERDF support for  'hard' infrastructure, from 65% 
in the 1994-1996 pfograrnmes to an estimated 52% for  1997-1999. 

- an explicit  requirement on partners to improve labour market information,  to 
allow  greater  labour  market  responsiveness  in  ESF  project  and  programme 
development,  and consequently improve the chances of a positive  employment 
outcome. This work will be overseen by a new Labour Market Strategy Group 
in each region,  which will  advise on key  issues  and trends  in the local  labour 
market  and  establish  specific  sectoral,  thematic  and quality  priorities  for  ESF 
spending.  They  will  also  foster  better  integration  between  ESF  under 
Objectives 2 and 3, and between ESF and ERDF within each region. 

As  regards  the  more  specific  European  Regional  Policy  orientations,  programming 
improvements were obtained in the U.K. Objective 2 SPDs in the following ways: 

-  specific  priority  for  the  development  of  SMEs,  including  a  better  defined 
range  of  actions  to  assist  all  phases  of  start-up,  development,  growth  and 
improved  access  to  risk  capital  on  a regional  basis,  has  been  developed  for 
each  SPD,  giving  a  stronger  focus  than  the  more  general  "business 
development"  priority  from  earlier  programming  phases.  Overall,  the 
development  of  SMEs  now  accounts  for  some  30%  of  the  total  Structural 
Funds allocation to the Objective 2 regions in the U.K. 

-  particular  attention  has  been  paid  to  providing  the  optimum  delivery 
mechanism  for  the  priority  of  Research  and  Technological  development, 
bringing  into  mainstream  programmes  the  principal  lessons  learned from the 
Regional  Technology  Plan  exercise  piloted  in  certain  regions  during  the 
previous  period.  Each  programme  includes  new  actions  to  help  realise  the 
economic  development  potential  of  the  information  society  in  the  regions 
concerned; 

-  with  encouragement  from  the  Commission,  the  regions  have  significantly 
improved  the  environmental  profile  contained  in  each  Objective  2  SPD  and 
have  further  clarified  the  ways  in  which  the  environmental  impact  of  the 
programmes will be measured; 

- the regions have responded to the Commission's priority orientation for Equal 
Opportunities  in  a  number  of  ways.  Common  to  all  SPDs  is  an  improved 
analysis  of the  regions'  labour  market  conditions  with  a far  higher  degree  of 
gender-  specificity  than in  1994-1996.  Some  SPDs  contain  specific  quantified 
targets in certain measures (e.g.  'percentage of new SMEs created with female 
managers').  Others  propose  the  establishment  of  an  Equal  Opportunities 
Advisory Group as part of their administrative arrangements. 

SA 

X 
w 
z 
z. 
< 

Expected impact on employment in Member States 

Objective 2 SPDs (1997-99) -

Member  States 

Temporary  jobs1 

B 

120 

DK 

— 

D 

E 

FIN* 

F 

I 

4,100 

13.986 

— 

14,049 

; 

6.255 

LUX 

_ 

NL 

UK 

EU 

:  20.193 

40.350 

106,115 

Created  or  maintained  jobs 

14,457 

2,348 

114,224 

93.500 

15.780 

147.459 

116.359 

570 

43.762 

341.873 

874.552 

^ ^ 

Average  public  (Community+Nationar 
cost  per gross job  (ECU) 

Average  EU  cost  per 
gross job  (ECU) 

Average  public  cost  per gross job  (EC 
for  measures  estimating job  creation 

U) 

Average  EU  cost  per  gross job  (ECU) 
for  measures  estimating  job  creation 

23.172 

59,454 

15,865 

22.450 

22.669 

30.567 

18.646 

41.111 

25.932 

15.096 

20.558 

10,259 

29.060 

7,640 

11.116 

8.510 

13.244 

7.318 

17.258 

10.103 

6.992 

9.158 

16,177 

51,006 

11.181 

9.159 

-

16.811 

15.698 

21.842 

17.484 

13.305 

13.847 

7,226 

24,251 

5,466 

4,475 

7,196 

6.065 

7.107 

6.521 

6.219 

6.154 
Source: SPDs 1997-99. 

NOTES. 
1 Data on temporary jobs are not estimated for  Denmark.  Finland and Luxemburg. 
** Jobs data for Finland are not related to measures  or priorities  and are therefore not included  in overall totals  or further  analysis 

Annex  5 

TERRITORIAL AND LOCAL EMPLOYMENT PACTS PROJECTS (OBJECTIVE 2 REGIONS) 

Country 

Region/Area 

Objective 

Population 

Unemploy 
ment rate 

[^Mm^àmèm 

Action plan priorities (provisional) 

Germany 

Bremen 

4 + 2 

679.900 

15,6 % 

Government  of 
the  Land,  civil 
service  departments,  chamber  of 
commerce and  industry, firms, trade 
unions,  labour  associations,  bank, 
SMEs, 
associations, 
educational,, research  and  scientific 
institutions 

citizens' 

Improving  intangible  growth  factors 
such  as  skills,  support  for  the 
creation of new types of activities and 
jobs, especially in SMEs. 
Organization  of  working  hours, 
improved opportunities for jobseekers 
to get back to work 

Deutschland 

Nordrhein Westfalen 
network of three pacts for 
Ruhrgebiet 

a 

3.376.000 

15,70 % 

Government  of  the  Land,  towns, 
businesses,  chambers  of  commerce, 
industry  and  trade,  universities  and 
research institutes, trade unions. 

Representatives  of  the  region,  trade 
unions, 
companies,  universities, 
chambers of commerce and industry. 

Spain 

Cataluna : Vallès 
occidental 

680.000 

13,70 % 

France 

Champagne-Ardenne: 
Pointe des Ardennes 

2 + 3 

35.000 

2 1% 

Employment 
intermunicipal structures "locality" 

committee, 

area 

and 

technology 

Innovation 
for 
industrial areas, model project for the 
development 
services, 
improving  the  presentation  of  the 
Niederrhein  region  specialized  in 
logistics. 

of  new 

for 

employment; 

To fix quantified  impact and activity 
objectives 
to 
determine  the  appropriate  level  for 
action on each type of problem, from 
municipal to regional level; to ensure 
close cooperation with the Structural 
Funds Monitoring Committee. 

To  develop  new 
sources  of 
employment in the sectors of tourism 
and leisure, personal services and up 
grading of heritage 

Country 

Region/Area 

Objective 

Population 

tînempîoy- \ 
men! rate 

Main partners 

Actionp&n priorities (provisional)  1 

t  ' 

< 

France 

> 

Nord-Pas de Calais: 
Roubaix 

2 + 3 

418.975 

17,7 % 

France 

Pays de Loire : Saint-
Herblain 

2 + 3 

64.000 

16,5 % 

Italy 

Abruzzi : Sangro 
Aventino 

1 and 2 

132.000 

10% 

) 

Italy 

Emilia/Toscana/Umbria: 
Apennino centrale 

2 

335.000 

11% 

4 

Employment  area  committee  and 
local authorities 

Local  authorities,  training  bodies, 
associations,  firms 

Provinces,  municipalities  mountain 
communities, 
of 
commerce,  trade  unions,  business 
association, cultural association.  ' 

chambers 

Representatives  of  local  authorities 
(mountain  communities,  provinces), 
chambers  of  commerce,  associations 
(agriculture, tourism, industry), trade 
unions. 

develop  new 

to 
sources  of 
employment with the support of large 
companies  to  improve  skills  and 
reorganize work. 

Development of personalized services 
life,  environment-
for  everyday 
job-sharing,  micro-
jobs, 
related 
companies  and  "new  occupations"  : 
at  least  ten  significant  experiments 
for each theme 

Increase  the  production  capacity  of 
SMEs;  especially 
in  mechanical 
engineering,  broaden  the  range  of 
services  to  firms,  develop  .tourist 
potential,  expand  activity  in  the 
personal services sector. 

Development  of business,  integrated 
project, 
development 
tourism 
training, 
transfer, 
technology 
enhancement of historical and artistic 
heritage, 
production 
improving 
processes in the primary sector. 

Country 

Region/Area 

Objective 

Population 

TJnemploy- ; 
ment rate 

Main Partners 

Action plan priorities (provisional) 

Luxembourg 

Dudelange : CLE 

2 

16.500 

4,00 % 

* 

of 

Municipality,  town  social  services 
office,  Ministries 
labour, 
employment,  economics, Ministry of 
Education 
training 
vocational 
service,  employment  department, 
local 
and 
craftsmen's  federation 

industry, 

traders' 

Setting up  an  employment  initiative 
guidance and aid facility, ministry of 
education training courses, measures 
to enable women  to  return  to  work, 
organization of an employment week, 
sandwich training. 

Netherlands 

Limburg 

Netherlands 

Noord-Brabant 

2 (wider than 
Objective 
region) 

2 (wider than 
Objective 
region) 

1.130.000 

12,5 % 

Employment exchange, trade unions, 
employers' 
organizations, 
municipalities, education services. 

To  create  an  integrated  approach 
through  cooperation,  to  create  jobs 
and reduce unemployment. 

2.290.424 

5,6, % 

Representatives  of  the  region,  two 
sides of industry. 

To  create  new  jobs  for  long-term 
jobseekers 

Finland 

Lahti 

2 

197.707 

21,6% 

Town  of  Lahti,  local  authorities, 
association 

To  use  schools' 
facilities  and 
resources  to  increase  employment 
of 
the 
extend 
and 
businessmen 
in 
develop 
domestic  help  services,  develop 
cooperation  activity, 
set  up  a 
partnership  and  the  development  of 
businesses. 

network 
jobs 

ISSN 0254-1475 

COM(97) 524 final 

DOCUMENTS 

EN 

04  05  10  13 

Catalogue number  : CB-CO-97-539-EN-C 

ISBN 92-78-25966-7 

Office  for Official  Publications of the European Communities 

L-2985  Luxembourg 

6-1