Commission Communication concerning the Structural Funds and their coordination with the Cohesion Fund - Guidelines for programmes in the period 2000 to 2006
Date: 1999-09-22
Institutions: European Commission
Subjects: Cohesion Fund, EU programme, Structural Funds

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Official Journal of the European Communities

22.9.1999

Commission Communication concerning the Structural Funds and their coordination with the
Cohesion Fund

Guidelines for programmes in the period 2000 to 2006

(1999/C 267/02)

INTRODUCTION

Purpose of the guidelines

The main aim of the Union’s structural and cohesion policies is
to help reduce economic and social disparities. They support
national and regional policies in the weakest regions and on
national and regional labour markets. While it is primarily the
responsibility of the Member States and regions to define their
priorities for development, the part-financing of programmes
by the European Union requires that account is to be taken
also of Community priorities,
to promote the
Community dimension of economic and social cohesion.

in order

Therefore, in accordance with Article 10(3) of Council Regu-
lation (EC) No 1260/1999 laying down general provisions on
the Structural Funds,
the Commission has adopted the
following broad, indicative guidelines on relevant and agreed
Community policies in relation to the objectives of the Funds.
The guidelines seek to help national and regional authorities to
prepare their programming strategies for Objectives 1, 2 and 3
of the Structural Funds and their links with the Cohesion Fund.
Their aim is to set out the priorities of the Commission based
both on past experience in the implementation of programmes
and on current Community policies for structural assistance.
These priorities should help ensure the best possible use of
Community assistance at national and regional
level. The
the draft guidelines already
formalises
present document
adopted by the Commission on 3 February 1999.

Programming of assistance from the Structural Funds for the
period 2000 to 2006 will be implemented under each of the
three objectives in conformity with the new Regulation. Never-
theless, the guidelines are presented on the basis of thematic
priorities for they must be taken into account under each of
the objectives in varying degrees according to the specific
situations of the Member States and regions.

Economic and social cohesion: growth and competi-
tiveness for employment

In part thanks to support from the Structural Funds and the
Cohesion Fund since the 1988 reform, there are now clear
signs of economic and social convergence, particularly in
those regions whose development is lagging behind and so
substantial gaps
are eligible under Objective 1. However,
in
between the regions still remain and require attention;
infrastructure
regional
capital
human
endowments
enterprises.
the
of
Furthermore, despite the fall
in unemployment rates in the
level of unemployment and its regional
Union,

and
competitiveness

incomes,
and

the overall

disparities
Job creation is
therefore still the main structural challenge facing the Union.

remain at unacceptable levels.

The next generation of programmes must help to continue the
reduction of all such disparities and to establish the conditions
which will assure the long-term development of the regions,
for it
for sustainable growth and
improved competitiveness in the regions that employment
will be fostered and maintained.

is only through support

The European Employment Strategy

The development of appropriate strategies for promoting job
creation will be facilitated by the implementation of
the
Member States’ national action plans
for employment as
required by the European Employment Strategy provided for
in the Treaty of Amsterdam. These plans, drawn up on the
basis of common employment guidelines adopted by the
Council, will serve as the overall framework for measures to
support employment policies under the Structural Funds, and
in particular the European Social Fund.

The conditions for investment and the impact of EMU

important

in creating the

The efforts of the Member States to maintain macro-economic
stability will be
appropriate
conditions for investment. As this will
involve continuing
the need for a high level of public
budgetary discipline,
investment, especially in infrastructure, may require some
restructuring of government expenditure. Appropriate means
to leverage budgetary expenditure through private sector part-
financing should also be explored.

further

increases

For regions within the euro area, economic and monetary
union (EMU)
integration in the Single
Market for which diversified economic structures, an entrepre-
neurial environment and a working population adapted to the
needs of competition within the Union are more essential than
ever. The regional programmes must take account of this.

Two horizontal principles: sustainable development and
equal opportunities

the Treaty of Amsterdam,

Under
financial
instruments are required to work, simultaneously and in the
long-term interest, towards economic growth, social cohesion
in other words,
and the protection of

the environment;

the Union’s

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sustainable development. Furthermore, the European Council at
Vienna has confirmed the political priority of integrating the
environment
in structural and agricultural policies in the
context of Agenda 2000. This means that environmental
considerations, and in particular compliance with Community
environmental and nature protection legislation, must be incor-
porated into the definition and implementation of measures
supported by the Structural Funds and the Cohesion Fund.
That will also help the Union comply with its international
commitments such as those concerning climate change given
at Kyoto.

Equality for men and women is a basic democratic principle
Its incorporation
underpinned by the Treaty of Amsterdam.
into all policies is no longer an option but an obligation. In
this context, an overall mainstreaming approach for equal
opportunities must be introduced into all Strucutral Funds
programming. This involves both efforts to promote equality
and specific measures to help women and the mobilisation of
all general policies by actively and openly taking into account
at the planning stage their possible effects on the respective
situation of women and men.

Effectiveness enhanced by a strategic approach and part-
nership

An integrated approach to development and conversion must
be reflected in programming methods in order to make the
system of implementation more effective.

On the one hand, the identification of integrated strategies
for development and conversion which make the greatest
possible use of synergies between the priorities and measures
to realise a coherent vision will be an initial condition to be
met in the plans to be drawn up by the Member States. These
integrated multi-annual strategies must concentrate on three
main priorities:

(cid:151) regional competitiveness,

(cid:151) social cohesion and employment and,

(cid:151) the development of urban and rural areas

(including

specific actions for fisheries areas).

In addition, they take full account of the analyses contained in
the sixth periodic report on the social and economic situation
and the development of the regions. Finally, they are illustrated
with a number of key examples of good practice from the
current (1994 to 1999) programmes.

It is the firm view of the Commission that these indicative
guidelines can make a valuable contribution to the identifi-
cation of coherent and balanced development priorities for
the next round of programmes.

PART 1: CONDITIONS FOR GROWTH AND EMPLOYMENT:
REGIONAL COMPETITIVENESS

I. Creating the basic conditions for regional competi-

tiveness

framework

If the objectives of improved regional competitiveness and a
greater employment content of growth are to be achieved,
an environment
conditions
appropriate
conducive to entrepreneurial activity must be promoted in
the regions. This means that enterprises must have available,
in order to maximise output and employment, a full range of
indirect supports, in sectors such as physical infrastrucuture,
research,
telecommunications and information technology,
technological development and innovation.

and

(cid:151) increasing the competitiveness of regional economies,

in

order to create sustainable jobs;

The following general considerations should govern assistance
for the development of these sectors

(cid:151) increasing employment and social cohesion, chiefly through

the upgrading of human resources, and

(cid:151) urban and rural development in the context of a balanced

European territory.

(cid:151) Investments in transport, energy and telecommunications
infrastructure supported by the ERDF and the EIB should
place particular emphasis on connections and intercon-
nections with the trans-European networks (TENs) where
they need to be completed.

Furthermore, the creation of a decentralised, effective and
broad partnership is a key factor in the success of structural
programmes. Partnership, involving upgrading of the partners’
skills where appropriate, maxmises synergies,
increases the
level and
commitment of all
calls on a wide range of financial and intellectual contributions,
principally through the system of global grants.

involved at regional and local

(cid:151) In the Member States eligible for the Cohesion Fund, there
should be full coordination between assistance from the
Fund, the ERDF and, where applicable, the EIB.

(cid:151) Where appropriate, partnership between the public and
private sectors in the development of infrastructure and
the provision of services should be encouraged (see box
on financial engineering).

Structure and analytical basis for the guidelines

The guidelines which follow are structured on the basis of the
three strategic priorities mentioned above:

(cid:151) In all cases, the programme authorities should ensure that
the assistance granted is in conformity with Community
competition rules.

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A. Transport
systems

infrastructure:

improving networks

and

Efficient transport networks and systems have an integral role
to play in supporting economic development. The business
to
sector needs
markets for inputs and outputs, while citizens need good
passenger
training,
transport
shopping and leisure.

to have reliable and cost-effective access

for access

to jobs,

services

Therefore,
future regional development programmes should
promote improvements to transport that remove constraints
faced by business and passengers while taking account of the
substantial progress that will already have been made by the
end of the current programming period under the Structural
and Cohesion Funds. Such investments should seek to reduce
transport costs, congestion and travelling time, and improve
including
network capacity, performance and service quality,
safety.

Transport priorities for the next period (cid:151) in particular in the
less developed regions (cid:151) should contribute to efficiency,
modal balance, accessibility and sustainability:

transport

this will

infrastructure.

(cid:151) Efficiency. Despite progress to date, there is a continuing
need to improve the efficiency of the transport system. In
involve the modernisation and
many cases,
upgrading of
equally
important, however,
to promote better management of
the transport system. This can include the development
transport systems and actions promoting
of
intelligent
interoperability
technical
standards. The final result should be the integration of
different transport modes into coherent transport systems
for the movement of passengers and freight.

harmonisation

through

of

is

It

from the Structural and Cohesion Funds

(cid:151) Modal balance. Currently, the greater part of investment in
is
transport
directed to the road transport sector. There is scope for a
better balance in the allocation between transport modes of
the funding available during the next programming period.
Balance is also required between major transport projects
and smaller-scale local improvements in transport systems.
In general, priority should be given to the development of
coherent
systems,
inter-modal and combined transport
including the development of transfer nodes.

(cid:151) Accessibility. Where appropriate, transport programmes
should reflect the need to improve regional accessibility.
In addition to assistance to complete the TENs on the
territory of the eligible regions, the secondary connections
to these networks are also important. Finally, account must
always be taken of the access needs of people with mobility
handicaps.

(cid:151) Sustainability. Community funding in the transport sector
should be embedded in consistent strategies adopted by the
Member States for achieving sustainable transport systems,

and this necessarily involves both reducing the environ-
mental impact of transport and encouraging a shift to the
use of more sustainable forms of transport. In particular,
regional development programmes have to be consistent
with the Community’s commitment to reduce greenhouse
gas emissions, and this requires particular efforts in the
road and air transport sectors.

the

closest possible

In the Member States eligible for the Cohesion Fund, there is a
need for
coordination between its
assistance and that of the ERDF. The Cohesion Fund also has
an important role to play in the implementation of the trans-
European transport networks with particular regard to the
network corridors and nodes that will have the maximum
impact on cohesion. The concentration of support from the
Cohesion Fund on such projects is a major priority.

some shortcomings
Investment

Outside the less-developed regions, the European Union is, in
general, well equipped with basic transport
infrastructure,
although there are some rural areas and areas where the
in provision
terrain is particularly difficult where gaps
in urban public
remain, as well as
transport networks.
infrastructure
should in such cases be limited and focus largely on small-scale
projects.
in coordination where
the ERDF,
appropriate with the EIB, could focus on the following
actions: providing local
links to improve intra-regional or
local access; improving the compatibility and interoperability
of transport infrastructure; developing inter-modal and transfer
nodes, and supporting urban and regional public transport
systems.

In this regard,

in transport

Multi-modal transport systems

arteries

its development

in the vicinity put

Multi-modal transport systems play an important part in
the Objective 2 programmes
in the Netherlands. For
instance, in the case of the Arnhem-Nijmegen area, which
is situated in the province of Gelderland in the east of the
location and the presence of major
country, a central
European transport
the
region’s transport and distribution functions at the centre
the
of
programme is therefore to increase the multi-modal effi-
ciency of the region. This was featured in the 1994 to
1996 programme,
second
programming period 1997 to 1999, when the measure
was somewhat broadened to include related infrastructure
in the transport, distribution and logistic sectors, including
developing and improving business areas around the (cid:145)Euro
Trade Port(cid:146).

strategy. The first priority of

continued

into the

and

B. Energy: networks, efficiency and renewable resources

The promotion of sustainable regional development depends
on an efficient, diversified and competitive energy sector in
order
flexibility and quality of
to enhance the security,
energy supply and reduce energy costs.

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In the less-developed regions, investments under the Structural
Funds should concentrate on

effects of

and the
remote

supplier
in the most

(cid:151) Energy networks: The development of energy trans-
mission infrastructure helps to reduce dependency on a
isolation,
given external
regions. Therefore,
particularly
completing interconnections, with special emphasis on the
TENs, improving electricity grids and the completion and
improvement of gas transmission and distribution networks
are priorities.
In particular, priority should be given to
interconnections that will contribute to the opening up of
the electricity and gas markets and that will be operated in
accordance with the competition rules of the Treaty

cost

reductions and reductions

(cid:151) Energy efficiency: More efficient use of energy must be
encouraged through technologies capable of achieving
substantial overall
in
energy intensity. In order to avoid unnecessary increases
in energy production capacity, measures should initially
focus on the demand side: targeted aid could be used to
promote the production of energy-efficient equipment, its
acquisition by SMEs, and the use of such equipment in
households and public buildings. Support for investment
by industry in energy-efficient and innovative technologies,
such as Combined Heat and Power (CHP) or cooling and
power, could be coupled with voluntary agreements, energy
labelling and best practice initiatives.
audits, the use of
Investment in energy efficient technologies can usefully be
accompanied by related training measures.

Alternative energy source

The installation of 20 wind generators, each with a capacity
of 25 kW on the island of DØsirade (region of Guadeloupe)
at an altitude of 270 metres facing the open sea allows
electricity production from wind power catering for up to
80 % of the needs of the island. This facility, situated in a
tourist zone, also allows an annual saving of some 220
tonnes of
little
noise and no pollution.

fuel oil and is environmentally friendly:

A renewable energy project in Austria

Renewable
energy projects have been an innovative
component of many rural development programmes
in
co-financed by the Structural Funds. For example,
Zalms (Tirol, Austria), the rural development programme
is supporting a comprehensive renewable energy strategy
for a small
includes a
isolated community. The project
system for providing heat and electricity based on the
burning of waste wood chips. For the future, there are
plans to install solar heating systems. The energy is used
both for economic activity (cid:151) in silos for stocking primary
products (cid:151) and for domestic purposes.

C. Telecommunications: towards the information society

(cid:151) Renewable energy sources:

Investment

in renewable
energy sources favours the development of local resources
and contributes to the reduction of dependency on energy
job
imports while at the same time creating new local
opportunities. Targeted aid could be used to promote the
acquisition of renewable energy equipment in SMEs, for
instance in the tourism sector, where there is considerable
the
potential
Commission’s White paper on a Community strategy and
action plan for
renewable energy sources, calls on Member
States to guarantee that at least 12 % of the global budget
of
is used to support
renewable energy sources.

for the use of renewables.

energy sub-programmes

In this regard,

the

Outside its less-developed regions, the Community is in general
well equipped with infrastructure for energy production.
Consequently,
investment here would tend to focus on
small-scale innovative infrastructure projects. Priorities include
investments to promote the use of renewable energy sources,
investment aid for reducing SO2 and CO2 emissions, the use of
efficient
energy
energy
management
In this context,
greater use could be made of
local and regional energy
agencies.

the promotion of
towns and cities.

and
in SMEs,

audits

The rapid development of the information society has opened
up new possibilities for economic development. It has widened
the locational options of firms and can help regions, including
remote and rural communities, to attract and retain activities
that make
high-quality
employment.

contribution

important

an

to

An efficient basic telecommunications infrastructure is a key
requirement for acces to the information society. However, the
role of public support is perhaps less central than for other
infrastructure since, even in less-favoured regions,
types of
investment
is potentially
profitable in most cases.
should therefore be financed
mainly by the telecom operators’ own resources or by
borrowing, if appropriate through the EIB.

in the telecommunications sector
It

When public grant support for the telecom sector is considered
necessary, it must follow transparent rules aimed at preventing
distortion of competition while, at the same time, allowing
public resources to be directed towards areas where investment
would not otherwise be forthcoming under market conditions.
Public subsidy is generally justified only where there are no
new competitive fixed-link providers, the existing infrastructure
is incapable of supporting modern standards of voice and data
communications and the necessary investment in upgrading of
fixed networks would not otherwise take place.

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the information society is not

just a
The development of
question of providing appropriate hardware but of integrating
technology in a coherent policy to exploit
the benefits (cid:151)
economic, social and cultural (cid:151) of the communication and
information revolution. Therefore,
interventions financed by
should maximise the real business
the Structural Funds
benefits of
the information society for commercial organi-
sations (cid:151) especially SMEs (cid:151) while also encouraging and facili-
tating the exploitation of the new information networks by the
private citizen. This should include actions aimed at:

(cid:151) Stimulation
applications

of

new services

and

innovative

fields

include electronic commerce and the
Important
exploitation of the Internet as a business tool,
including
the development of Electronic Data Interchange (EDI), as
well as applications that facilitate teleworking. There are
also potential benefits for public administration, including
the provision of public services and information through
electronic means. Alongside these efforts, awareness and
and demonstration
competence
actions including broad consultation exercises involving
large sections of
tech-
the local population,
nology and information society experiences and best
practices
(cid:145)road-show(cid:146)
campaigns, etc. are also important.

raising through pilot

administrations,

transfer of

between

local

(cid:151) Equipping potential users

Education and training is a key requirement for building up
the skills which allow new economic activities to flourish
and users to maximise the benefits of
the information
society. This includes tele-education and distance learning
through electronic means (multimedia packages, (cid:145)education/
entertainment(cid:146) applications, etc.). Raising the level of skills
in the business sector through training and education is
also essential.

Public support for telecommunications infrastructure in an
open market

infrastructure, e.g. broadband,

In Ireland, the competitive environment brought about by
the liberalisation of the telecommunications market was not
to ensure provision of advanced telecommuni-
sufficient
cations
in peripheral or
uneconomic regions. This justified an intervention of the
ERDF by way of an open tendering process which allowed
all telecommunications providers to compete, on an equal
footing, for grant support for the provision of infrastructure
in accordance with certain criteria set down in advance.
This competitive tendering process ensured that projects
judged
which would not otherwise be carried out,
purely on commercial criteria alone, would go ahead,
thus ensuring that peripheral areas could now fully
participate in the information society. The consequent
upgrading of
that more towns
and villages will now have the capacity to participate in

infrastructure has meant

if

the information age and thus replicate the success of Ennis,
Ireland’s first information age town. This pilot project was
established as a test bed to see what happens when citizens
have full access to advanced communications services.

Competitiveness for farmers through telematics

Joutsa offers some 50 local

A small but successful project in mid-Finland organised by
the municipality of
farmers
training and assistance to make better use of their PCs.
The participants are receiving (cid:151) according to their
knowledge (cid:151) basic training or advanced courses on
computerised business management, production planning
and networking. Some learn to combine their farming job
with distance working. The total budget for this one-year
project is about EUR 130 000 of which 60 % is financed by
the Structural Funds.

D. Infrastructure for a high-quality environment

report of

the second assessment shows that

the European Environment Agency
The recent
Europe’s environment:
there
have been substantial reductions in most countries in the
substances with a negative impact on the
emissions of
environment and human health. Nevertheless, the European
environment remains under threat, principally with regard to
water, air and soil quality. Therefore, environmental
infra-
structure needs to be constructed or upgraded, especially in
least because high quality
the less-developed regions, not
environmental
factor
for regional socio-economic development.

infrastructure constitutes an important

The Structural Funds and the Cohesion Fund should, as a
priority, assist compliance with the environmental standards
established in the relevant Community Directives, in particular
with regard to water and waste management. Also,
in the
Member States eligible for the Cohesion Fund, there should
be full coordination between assistance from the Fund and
that from the ERDF. Finally,
in areas prone to danger from
natural disasters, such as floods, preventive civil protection
measures should be encouraged.

The specific priorities with regard to the water and waste
management sectors during the next programming period are
as follows

(cid:151) Water: Environmental infrastructure in this sector should
ensure the supply of adequate amounts of drinking water
and the collection, treatment and discharge of urban waste
water. Projects should be consistent with the principles of
the proposed water framework Directive, the adoption of
which is expected in 1999.

to drinking water,

With respect
there should be more
emphasis on increasing the efficiency of existing infra-
structure with a view to limiting losses (leakages) and to
improving quality at the consumer’s tap.

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In the context of the design of urban waste water systems,
special attention must be paid to the following: the location
of discharge points and the impact of discharges on the
environment,
sludge
of
produced by water
treatment and the management of
run-off water and storm-water overflows.

sustainable

disposal

sewage

An important issue in regard to water services is the need
for proper pricing to reflect the real scarcity of and demand
for water. Particular attention should be paid to integrated
water projects, which should take account of water quality
as well as water quantity at the river basin level, including
the trans-national dimension.

strategy

(cid:151) Waste management: This concerns the management and
disposal of solid, urban, industrial and harzardous wastes,
according to Community policy and legislation (e.g. the
Community
for waste management, waste
framework Directive, hazardous waste Directive, Regulation
on shipment of waste, etc.). Funding of waste infrastructure
should follow the established hierarchy of principles:
prevention of waste production and its harmful
impact;
recovery of waste by means of recycling, re-use or recla-
mation and safe final disposal, limited to waste for which
no possibility of recovery exists.

A central feature of the waste Directives is the requirement
for Member States to draw up waste management plans
covering their whole territory. The adoption of
such
plans, which elaborate a strategy to meet
the concrete
objectives of national and regional waste policies, should
be a pre-requisite for any Community funding of waste
infrastructure. Preference should be given,
management
where it
to the recovery of
material over energy recovery operations.

is environmentally sound,

Contaminated sites such as old landfills and unauthorised
discharges of wastes constitute a considerable threat for the
environment and for human activities. Member States
should address
issue by introducing appropriate
clean-up measures.

this

Waste-water treatment

An interesting waste-water collection and treatment project
being part-financed in Cagliari, Sardinia, combines three
recycling, conservation and environ-
important aspects:
mental benefits. First,
the treatment system permits the
reuse of Cagliari’s waste water for irrigation during the
summer months. Secondly, during the other months of
the year, after further treatment to minimise phosphates,
the water is stocked in an existing fresh-water reservoir.
From there it will be used during periods of water
shortage due to drought. Thirdly, besides the environmental

interest arising from the integrated nature of the project,
there are further environmental benefits because the waste
water is no longer disposed of in the Mediterranean.

Reclamation of contaminated sites

former

Pollution in the five new L(cid:228)nder and eastern Berlin has been
considerable. Water contamination, air and soil pollution
has been at high levels, notably because of the lack of
legislative protection and concentration on short-term
centrally planned
economic goals under
the
system. The task of cleaning up the environment
is
immense. European financial support makes a contribution
to tackling resulting structural problems in some areas, thus
contributing to the improvement of the quality of locations.
The measures often take the form of decontamination and
reclamation of industrial sites and military sites. In Parchim
(Mecklenburg-Vorpommern), the ERDF has contributed to
the decontamination and conversion of abandoned military
installations. The measures included the dismantling of a
huge fuel depot and the subsequent decontamination and
upgrading of ground water on a former military airport by
an innovative and cost-effective technique. Thus, the inter-
vention has eliminated the threats for the environment and
created the conditions for the establishment of a business
park.

APPLICATION OF THE POLLUTER-PAYS PRINCIPLE

the

Therefore,

is clearly established that

policies.
the reform of

It
the polluter-pays principle
should apply horizontally in the implementation of all
Commission’s
Community
proposals for
the Structural Funds and
revision of the Cohesion Fund include provisions to apply
the polluter-pays principle in the operation of the Funds.
Currently, application of the principle varies considerably
between the Member States and, without a coherent and
homogeneous Community-wide framework,
there is a
danger of unequal
in the implementation of
Community funding.

treatment

The Commission will therefore present in the near future (cid:151)
in a technical paper separate from these guidelines (cid:151) a
framework for the application of the polluter-pays principle.
This will operate mainly through the differentiation of rates
of assistance for
infrastructure
operations
financed by the Cohesion Fund and the
Structural Funds. In other sectors of intervention, such as
industry and agriculture, and where there are negative
the
impacts,
environmental
principle to be applied.

there is also a need for

the various

forms of

The underlying elements of the framework will be that

(cid:151) a system should be promoted through the differentiation
of rates of assistance, whereby the environmental costs
related to the treatment of pollution and/or preventive
actions are borne by those who cause the pollution,

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(cid:151) the application of the polluter-pays principle must be
compatible with the goals of economic and social
cohesion,

(cid:151) its development should be progressive and concern the
range of infrastructure sectors covered by Community
funding,

(cid:151) it should take into account

the social acceptance of

charging,

(cid:151) it should take into account Treaty provisions related to
the careful and rational use of resources, especially
water and energy.

As a priority, the Commission will also proceed with the
development of a common framework for the application
of the polluter-pays principle generally in the implemen-
tation of all Community policies.

E. Research, technological development and innovation:

modernising the productive base

raising regional competitiveness. The structural Funds
should assist SMEs in particular to access the skills they
need to promote their own growth, and to strenghten the
industrial and commercial clusters and supply chains of
which they are part.
Interactions with Community and
international networks specialising in RTD and innovation
should be further enhanced.

(cid:151) Developing human capabilities. Within the domain of
RTD and innovation, attention needs
to be given to
lifelong learning and continous upgrading of skills and
capabilities. With regard to the needs of SMEs,
is
important that management development programmes are
instituted to assist them to absorb new technologies and
related organisational methods. The range of education and
training opportunities made available in the region is
instrumental in enhancing levels of innovation. Therefore,
programmes for the training and mobility of graduates,
managers, scientists and engineers, are priorities.

it

High levels of activity in the fields of research and tech-
(RTD) and innovation are important
nological development
features of the productive environment in the most competitive
regional economies. Structural assistance should therefore give
an increasing priority to promoting RTD and innovation
capacities in an integrated manner in all fields of intervention
of the Funds. In general, successful regions will be those that
take a strategic approach to innovation and offer help to
companies to integrate their own resources and expertise
with those of government agencies, higher and further
education,
other
companies for the effective management of new technology,
research and development, and product and process inno-
vation.

organisations

business

support

and

Raising the efficiency of RTD and innovation in terms of their
impact on economic development (cid:151) in the less-developed
regions in particular (cid:151) during the next planning period
the
requires clearly defined policy priorities
following areas:

in each of

(cid:151) Promoting innovation. A wide range of targeted activities
should be covered, including new forms of financing (e.g.
venture capital) to encourage start-ups, spin-outs/spin-offs
and innovative developments, specialised business services,
to
technology transfer and related services, measures
and
encourage productive
higher education/research institutes, better exploitation of
information technologies for commercial and community
benefit and measures to encourage small firms to carry
out RTD for the first time.

interactions between firms

(cid:151) Networking and industrial cooperation. The flow of
knowledge through technology transfer and dissemination
of new techniques is also an important contributor to

(cid:151) Consolidating RTD and innovation actions through
effective policy management. Along with the three
policy priorities above, there is also a need for improved
policy management. Performance-oriented schemes could
be introduced in order
to increase the efficiency and
quality of RTD and innovation assistance. Statistical tools
at
improved. New delivery
methods, using score systems and benchmarks should be
effectiveness of
to enhance
considered in order
assistance in a systematic way.

should be

regional

level

the

Networking for technological development

A network of eight technology centres (Basque Country)
has, since 1992, been supported by assistance from the
ERDF and the ESF for the purchase of equipment and for
research projects. Activities relate to the following six
information/telecommunications,
sectors
materials
industrial
biotechnology and energy). The network involves annually
1 100 researchers (of whom about one fifth are grant-aided)
and 450 research projects, with employment in associated
enterprises amounting to some 1 700 jobs.

(manufacturing,
technology,

environment/recycling,

Innovation audit

In the framework of a Regional Innovation Strategy (RIS),
350 companies in Wales undertook an (cid:145)innovation(cid:146) audit
with the help of business services and over 600 organi-
sations were involved in this RIS process. Thus nearly 70
new projects were identified and the industrial South Wales
Objective 2 Structural Fund programme for 1997 to 1999
includes now up to EUR 56 million for innovation-related
projects.

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II. Competitive enterprises for employment creation

The creation or expansion of competitive enterprises is the
pre-condition for creating sustainable jobs and thus
for
the Structural Funds
regional economic development. All
contribute to this aim in the regions eligible for Objectives 1
and 2, while the European Social Fund contributes across the
whole of
the Union. While all sources of
employment are important, the increasing role of the services
the net
sector (cid:151) which has been responsible for most of
employment growth in the Union in recent years (cid:151) needs to
be reflected in Community programmes.

the territory of

Many actions in support of enterprises will involve the granting
financial assistance or other advantage to undertakings
of
cases,
engaged
the
activities.
the assistance
programme authorities
granted is in conformity with Community competition rules.

should ensure that

in commercial

In these

A. Support for enterprises: priority to SMEs

focus

to stimulate

the Structural Funds

the
Assistance under
in particular on small and
productive sector must
(SMEs) while not neglecting the
medium-sized enterprises
needs of
the close
large enterprises, especially in view of
relationship which often exists between them and SMEs. The
priorities for support from the Funds for enterprises are as
follows:

(cid:151) Shifting the emphasis from capital grants: Developing
the business sector in general, and encouraging the setting
up and development of SMEs in particular, involves a wide
variety of actions on the part of the programme authorities.
the emphasis has been on capital grants,
Traditionally,
inward investment
especially as far as the attraction of
has been concerned.
In the future, capital grants, and
especially those financed by the Structural Funds, should
play a reduced role.
is worth noting
In this regard,
from the current programming period the case of Ireland,
where ERDF support for inward investment ceased in 1998.

it

Alternative sources of finance should be promoted such as
reimbursable advances, risk and venture capital, loan capital
and revolving funds, mutual guarantee schemes, etc. (see
box on financial engineering below). However, duplication
of aid schemes available for enterprises, and notably SMEs,
should be avoided and this may require some rational-
isation in order to improve efficiency.

those with a weak
in the less-developed regions or
enterprise tradition the following principles are recom-
mended:

(cid:151) Considering the heterogeneous nature of the SME popu-
lation,
improved targeting according to the specific
needs of each SME category or sector should be a
priority.
Integrated and clearly identifiable support
packages for SMEs should be developed and include
measures such as easier access to finance, business
support services and training measures and should be
adjusted to the needs of SMEs at the different stages of
transfer). This
their
necessitates
ERDF
measures. Assistance should also be targeted on micro-
businesses and on specific groups, such as young or
those from disadvantaged
women entrepreneurs or
groups.
should
support new products and processes, and this could
involve support for the creation of clusters of SMEs
within specific business sectors.

life-cycle (start-up, growth or

Finally, Community

programmes

integration

and

ESF

the

of

aim for

(cid:151) Support should where appropriate be focused on fields
of competence in which the region concerned can real-
specialisation and
istically
a degree of
commercial advantage. However,
their
in view of
overall
importance, a number of sectors will be a
priority in almost all regions. These would include the
information society, and services in general, given their
importance in employment creation. Within the services
sector, commerce has a particular role to play at the
regional level. It provides an outlet for local production,
for example from the crafts sector, helps preserve the
fabric of
local communities and in general makes a
significant contribution to employment creation.

for

Support

(cid:151) The inter-dependent nature of relations between larger
and smaller enterprises cannot be ignored in any
strategy to develop the productive
comprehensive
sector.
should be
enterprises
large
continued therefore but related to their added value
for the regional economy, notably through networks
in particular SMEs.
established with other enterprises,
the development of human resources
Strategies for
should target
increases in the productivity of such
networks.

(cid:151) Improving

the delivery of

Increasing
attention should also be paid to more qualitative and
organisational aspects, notably the systems for delivering
assistance and the overall productive environment.
In
order to raise the efficiency of the delivery system especially

assistance:

(cid:151) As a general rule, where the contracted conditions for
support, in terms of either the nature or duration of the
given activity, are not fulfilled, repayment of all or part
of the grant aid should be required. Also, Community
funds should not in general be used to facilitate the
transfer of production or other facilities within the
territory of the Union.

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Official Journal of the European Communities

22.9.1999

(cid:151) Involvement of the private sector in the formulation
of strategies: As evaluations of past assistance have shown,
the quality of programmes to develop the SMEs’ sector can
be improved where they are worked out and implemented
in the context of a broad partnership including represen-
tatives of private companies and business service organi-
sations. The exploitation of results of research on the basis
of cooperation between companies and universities should
similarly involve a broad partnership (see above, part I.E).

the Community budget by favouring as far as possible
recourse to private sources of financing, notably risk and
venture capital and Public-Private Partnerships (PPPs), as a
increasing the resources available for
means both of
investment
sector
ensuring that private
expertise is brought to bear on the way in which schemes
are run.

and also of

Apart from direct assistance to firms in the form of investment
aid and business support measures, increasing emphasis should
be placed on the skills of the workforce generally. This implies
clearly identifiying present and future bottlenecks
in the
regional
and risks of
(skill
redundancy and unemployment that have to be tackled at an
early stage. These issues are considered in greater detail in Part
2 below.

labour markets

shortages)

Aid scheme for micro-enterprises

In Portugal, the (cid:145)Promotion of regional development (PPDR)(cid:146)
programme has financed an aid scheme for micro-enter-
prises called (cid:145)RIME(cid:146) whose objective is
the
creation of employment in local communities affected by
rural depopulation and specific development problems. The
scheme aims for the creation and/or modernisation of
micro and small enterprises. It gives a priority to projects
in the following areas: craft industries,
local and neigh-
bourhood services, rural tourism and ecology.

to assist

Cooperation between large and small companies

advice

knowledge. The

trained managers

in the Objective 2 area of Turnhout
The Plato project
(Belgium)
involves the loaning of managers or (cid:145)guardian
angels(cid:146) from big companies to SMEs, especially new enter-
prises, so that they can benefit from their greater experience
and
from large
corporations have offered assistance in areas ranging from
marketing
to expansion strategy. 265 SMEs
participated in the period 1996 to 1998. Assistance was
offered both in the context of workshops and through
individual contacts. This project has been
more informal
recently been expanded to
so successful
that
companies
the
It was recently short-listed as
Netherlands and Ireland.
one of the most successful projects in terms of employment
creation for the Job Challenge organised by the European
Commission.

in several other

countries

such as

it has

FINANCIAL ENGINEERING

The new Structural Funds Regulations stress the need to
leverage from operations funded from
achieve the best

to

help

Risk and venture capital. Member States will be encouraged
to pay particular attention to monitoring performance in
order to assess more precisely the contribution of financial
engineering schemes to regional development, private sector
participation
sustainability,
ensure
management by independent professionals with autonomy
for day-to-day decisions, rigorous project selection criteria
and
which support
financial assistance to be linked to the provision of
advisory support and different
instruments to
SMEs so as to provide them with flexible and sustained
assistance at various stages in their development. In appro-
priate cases, the support of the EIF can be requested.

development objectives

financial

regional

project

Under the (cid:145)Invest(cid:146) measure (Hainaut), four venture-capital
funds provide start-up capital or capital
to launch new
activities and develop and diversify existing firms. These
Funds may also provide firms with the resources they
need to carry out investments to implement the results of
innovation processes.
industrial research or technological
They may also provide assistance
cross-border
through participation in inter-regional projects,
context
the establishment of inter-regional firms, etc. This assistance
takes the form of capital holdings, loans and the issue of
convertible bonds. The products are adapted to each indi-
vidual case in order to meet the specific needs of each firm.

in a

subject

PPPs. Private sector involvement is directly related to the
prospect of a suitable revenue stream,
to an
acceptable level of uncertainty. There is a need for the
earliest possible involvement of the private sector, especially
at the planning stage of infrastructure projects, the allo-
cation of project risks to those best able to support them
in the PPP contract documents, real
as clearly set out
consultation and involvement of
the public directly
affected by the scheme prior to detailed design, appropriate
protection of the public interest by contract or legislation,
respect of European Union public procurement
and
competition requirements and reconciling the need for
ERDF
to be made within the period
covered by the financial perspective while the public/private
counterprart expenditure will usually be well outside this
the Commission could prepare a
period.
technical paper
this
financing method.

illustrating the possible use of

commitments

If necessary,

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A notable example of a successful public/private partnership
concerns the construction of the Vasco da Gama Bridge
(Portugal). This project
to provide a second crossing of
the river Tagus at Lisbon, costing approximately EUR 900
million, was undertaken on the basis of a concession
contract to build, own, operate and transfer (BOOT). The
concession was awarded to Lusoponte, a joint venture
comprising Portuguese, French and British construction
companies. Under the terms of the concession, as well as
building the bridge, Lusoponte will operate it
for a
maximum of 33 years before transferring ownership to
the
the
operation and maintenance by Lusoponte of the existing
25 April Bridge. The project is financed by the Cohesion
Fund, the EIB, and the shareholders with the Portuguese
Government’s contribution being provided through the
transfer of tolls from the existing bridge.

concession also includes

government. The

B. Business support services: helping the creation and

development of enterprises

The significance of business support services for the successful
creation growth, and transfer of enterprises, in particular SMEs,
is well established. Such services enable companies to increase
their competitiveness and their capacity to identify new
markets. They also help to create a level playing field in
areas essential to the opening up of the internal market, such
as public procurement where SMEs have a potentially key role
to play. Measures under the Structural Funds to support such
services should include assistance for technology transfer, the
promotion of marketing and internationalisation (excluding
direct aid linked to exports),
innovation in organisation and
management and assistance for the creation and development
of
start-up capital, mutual
such as
guarantee companies, etc. As a result, the priorities should be:

instruments

financial

(cid:151) Identification of the needs of companies: This involves
identifying the type of service to be developed and the most
suitable bodies to respond to the needs of firms and to
support them in the implementation of their development
plans. SMEs tend to have a clear preference for a single
agency as the first point of contact to provide information
for assistance and to
and advice on the possibilities
establish links with further specialised agencies. For these
agencies
targeted and
customised imformation and services for SMEs coupled
with appropriate advice must be available.

to provide

assistance,

efficient

(cid:151) Exploitation of synergies: There is particular scope for
improved synergies in the case of service centres, tech-
nology
universities,
research centres, etc, which often operate in an uncoor-
dinated manner. Cooperation can help to improve the

centres,

transfer

science

parks,

the services provided,

through
quality of
effective staff
training and the dissemination of best
practice (incuding via the Internet) and the encouragement
of a strong customer orientation.

in particular

(cid:151) Reinforcement of

international

cooperation between firms

cooperation: This
promotes
to develop the
European and international dimension of their business in
order to build a more solid position in the single European
market.

As well as public support services for enterprises, the private
business services sector (cid:151) consisting of computer, marketing,
technical, recruitment, and other professional and commercial
services (cid:151) makes an important contribution to improving the
competitiveness of enterprises, as well as being a significant
is
source of employment
estimated to represent 10 % of total employment in the Union).

in its own right

(the sector

Business services have tended to concentrate in the more pros-
perous and central regions, as that is where demand for such
services has been strongest. Programmes under the Structural
Funds should seek to identify the constraints on a more
balanced availability of business services. Policies to achieve
the demand for
this could include the identification of
business services in the regions, the development of appro-
priate human resources and the promotion of the information
society as a business support tool.

Practical support for enterprises

developed
assistance

(construction
from the

(Catalonia) was
to
thanks

The IDIADA test and certification centre for the automobile
and
sector
equipment)
ERDF
programmes implemented in this region since 1992. The
centre consists of test tracks and laboratories allowing firms
to test the performance and security of their products as
well as validating their parts and vehicles. At present, more
than 275 firms use these installations which employ 150
people.

150 BICs: integrated services for the creation of enterprises

for

and

services

support

Innovation Centres

(BICs)
Some 150 Business
successfully operate organisational models of compre-
hensive systems of business
the
launch and development of innovative enterprises. Based
on a public/private and local/regional partnership, BICs
act in their areas as an interface between the needs of
enterprises and the offer of specialised services. They also
contribute to the internationalisation of firms (marketing,
interregional cooperation). The spreading of BICs in all
assisted areas and their more intensive use in implementing
regional programmes would help further disseminate good
practice in business creation and development. BICs are
linked, by cooperation agreements to other Community
networks, such as the Innovation Relay Centres, the EuroIn-
foCentres of the local action groups of Leader.

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89 territorial employment pacts

An approach based on strategy and partnership figures very
clearly in most of the action plans in the 89 territorial pacts
for employment, which cover almost 10 % of the Union’s
the territorial pact of West-
population. For example,
resulted in an integrated
Brabant
partnership
very
project
broad
encompassing all
ground
actors on the
including the trade unions.

(Forges de Clabecq)
by
a
characterised
the major

(cid:151) Environmental management. Financial support should be
provided in particular to SMEs, to make use of environ-
mental services such as Eco-audits.

(cid:151) Industrial sites. Priority should be given to the rehabili-
industrial sites (brownfields) over the

tation of derelict
development of greenfield sites.

C. Areas with particular potential: environment, tourism

and culture, social economy

The measures discussed above aim to increase the competi-
tiveness of enterprises,
in particular SMEs, and thus their
employment-creating potential. Experience in the current
programmes has shown that there are some sectors where
this potential for employment creation is very significant but
has so far been under-utilised. Moreover,
the employment
guidelines place particular emphasis on the need to exploit
new opportunities for jobs. The three areas presented below,
mainly in the services sector, provide examples of some of the
opportunities which exist for further employment creation.

Environmental
tiveness

improvement: a contribution to competi-

Environmental quality is a major factor in regional devel-
opment and competitiveness. The integration of environmental
quality in productive investment will ensure a rational use of
resources, enhancing economic performance and competi-
tiveness while maintaining
employment.
Moreover, environment-related products or processes provide
an additional opportunity for the regions as they are them-
selves a potential new source of employment. Specific action
in
combining environmental
industry and services should include:

improvement and investment

creating

and

(in

SMEs)

should

particular

(cid:151) Preventive approach. Support from the Funds for business
activities
promote
in
investments characterised by a preventive approach and
this could be encouraged by the higher rates of assistance
available for such in investments. Priorities should inlcude
the efficient and sustainable use of natural resources, waste
minimisation and reuse, reduction of air pollution and the
implementation of a sustainable product policy. Moreover,
the Funds could support the development and marketing of
innovative environmentally-sound products and services.

(cid:151) Clean technologies. Member

favour
measures to accelerate the shift from old, polluting tech-
nologies and end-of-pipe measures to new clean tech-
nologies.

should

States

(cid:151) Training. This

in
environment-related issues within the business sector and
to promoting new employment (or conversion).

to improving skills

fundamental

is

Normally, environmental State aid is given favourable treatment
under European competition rules. In order to facilitate the
preparation of such aid measures, the Commission has estab-
lished guidelines on State aid for environmental protection.

Tourism and culture: advantages for local development

(cid:151) Sustainable quality tourism. Tourism is one of the leading
growth industries in Europe and worldwide,
in terms of
both output and employment creation. Tourism thus
represents an important
for a large
number of regions, rural communities and cities in the
Union. A balanced and sustainable development of
tourism should be supported in particular through:

economic asset

(cid:151) the modernisation of tourism-related infrastructures and

the improvement of their efficiency,

(cid:151) upgrading skills and professional profiles in order to
respond better to the expectations of tourists and the
needs of the industry,

(cid:151) encouraging business-to-business partnerships, public-
to
services

cooperation and networking in order

private
integration of
improve
involved in the (cid:145)tourism chain(cid:146).

the different

the

Tourist development should be carefully planned so as to
take into consideration the carrying capacity of the site
with regard to environmental,
and economic
impacts. Such integration of environmental concerns and
the conservation of natural and cultural heritage in devel-
to encourage sustainable and
opment plans is essential
high-quality forms of tourism.

social

(cid:151) Culture: an economic growth point. Culture is closely
linked to tourism as the cultural heritage of a regional
not only contributes to the development of a local or
regional
identity but also attracts tourists. Culture thus
offers opportunities for additional employment, a factor
of major importance to the disadvantaged regions of the

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Community with a high concentration of cultural potential.
The cultural dimension should thus be integrated into
tourism development strategies. Exchanges of experience
between regions or
local authorities help to transfer
knowledge about culture and ways of developing cultural
tourism and finding joint solutions. The cultural potential
of a region will
it more attractive to outside
investors in general.

render

Culture is also an increasingly important part of the private
economy in its own right, with considerable potential for
growth and job creation. Member States should thus make
more use of the employment potential of innovative and
for example in the areas of
creative cultural products,
culture-related online services, media and the information
society or design, and include measures in these fields in
their regional programmes. Finally, flexible training linked
to culture-related professions is both a requirement for the
functioning of the cultural sectors and contributes to the
preservation or modernisation of traditional activities and
the establishment of entirely new skills, linked for example
to the information society.

Tourism integrated into a local economy

Tourism development supported by the Structural Funds in
focused on four strategic zones with a high
Piedmont
tourism potential (cid:151) Lake Maggiore,
the Val di Susa
skiing district, the city of Turin and the Canavese castles
circuit. The tourism development adopted an integrated
approach by financing a mix of infrastructure-improving
local attractiveness, aid schemes to small and medium-sized
tourism businesses and tourism promotion programmes.
Value was added both by good partnership between local
impact
and regional administrations, and the greater
achieved through concentration of activities in limited areas.

Preservation of a heritage site

For at least five centuries, numerous manufacturing sites
powered by the water from mountain springs have been
located in the valley of Lousios in the Peloponnese in
Greece. Within the operational programme for the Pelo-
ponnese 1994 to 1999, a group of buildings has been
reconstructed and the machinery restored. An open-air
water power museum has been opened and it serves as
an amenity offering a tourist and educational experience.
The museum provides
the public with knowledge
concerning water-power and the production of black
powder and leather. Tourists can walk along the paths
beside the Lousios, which have been opened up and
which are carefully maintained. The project as a whole
has given rise to significant development
in the region
because of the number of tourists and schools that it has
attracted.

There are a wide variety of organisations, such as cooperatives,
mutual societies, associations and foundations, as well as enter-
prises and individuals, which provide for their members or are
formed to serve groups in society with common needs. Some
operate
(credit unions, mutual
insurance associations, etc.) while others provide services that
are closer to the public sector; for example health and welfare
services,
and
services,
recreation.

in competitive markets

neighbourhood

activities

sports

Although the entities that form the social economy are created
to meet specific social needs, they also make an important
economic contribution, notably in the field of employment.
it is estimated that some 5 % of total
At the present time,
in the European Union is represented by the
employment
for further
social economy and there is a clear potential
growth.

On the basis of the experience with national support schemes
and community pilot projects as well as the action plans of
some territorial employment pacts, the priorities for assistance
to this sector should be:

(cid:151) Active support for the creation and development of
service providers: This involves, firstly, the identification
the
of promising new sectors of activity and, second,
provision of appropriate support services to potential and
existing service providers, such as information and coun-
selling, as well as financial and technical assistance.

(cid:151) Organisation and durability: Once established, service
providers, especially those involving newly active persons,
will generally require continuing assistance for some time,
notably in the areas of managment support and training.
However, the ultimate objective should in general be the
operation of the service on a sustainable basis. Therefore,
public support should be degressive over
taking
account of the particular needs of the service in question.

time,

Social economy: new employment-creating services

Not all those engaged in economic activities can be categorised
clearly as being part of either the public or private sectors.

The initiatives taken by the Member States in favour of youth
employment, the fight against social exclusion and the devel-
opment of local services have allowed organisations and enter-
prises in the social economy sector to become new and
significant partners of
regional and local authorities. The
overall aim of assistance form the Structural Funds should be
to confirm and strengthen this partnership.

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Innovative childcare facilities

In a deprived area of Belfast, a project originally addressed
to the parents of young children will result in a commercial
childcare venture which will subsidise continuation of the
project after the end of the ERDF-funded scheme. The local
development group aims to break the cycle of deprivation
to bring their
by encouraging parents, mostly mothers,
children to local play centres. Here, through the medium
of their peers, the mothers are helped to complete their
own education in order to help their children, and some
then go on to further training, including childcare. ERDF
has funded two new multi-purpose buildings, one of which
is near the commercial centre of the city This is intended to
house a profit-making child-care centre which will in turn
support the core work in the other building, which, due to
its location, would not attract middle-class parents with the
money to pay for the service. By the time the building is
finished, some mothers will have completed their child-care
training, and can take up work in the centre.

financially and horizontally in a given geographical area
(across the whole of the Member State outside Objective
1 areas)
for
Employment (NAPs).

in support of National Action Plans

Activities in this field will be developed also in the context of
the human resources Community Initiative.

I. Objective 3: The frame of reference for human resource

development for more and better jobs

to increase
Given its mission of contributing to actions
employment,
instrument at
the ESF is the main financial
European Union level for helping the Member States develop
and implement the employment guidelines under the European
employment strategy. This strategy provides the framework:

PART 2: THE EUROPEAN EMPLOYMENT STRATEGY: A KEY
PRIORITY FOR THE COMMUNITY

(cid:151) within which the employment policy priorities of

the
Member States are translated into National Action Plans
(NAPs),

it pursues

The European Social Fund is the main financial instrument at
European Union level for human resource development across
the whole territory of the Union and throughout all priority
Objectives of the Structural Funds. It has a dual mandate: on
the one hand, it seeks to improve employment opportunities in
the internal market and to contribute thereby to raising the
standard of living. On the other hand, as one of the Structural
Funds,
strengthening
economic and social cohesion. The priorities set out below
apply across the whole territory of
the European Union,
although in regional programmes or where Objective 3 is
programmed or implemented regionally there will be regional
specificities which need to be taken into account. It will also be
important
to ensure complementarity and synergy between
ESF-supported measures and rural development measures
financed outside Objectives 1 and 2.

their overall objective of

In this context, the Commission has proposed that Objective 3
of the Structural Funds, which supports the adaptation and
modernisation of education, training and employment, should
have the following functions:

(cid:151) firstly, as a policy frame of reference for all measures to
promote human resources across the whole of a national
territory, irrespective of Objective status. This sets out the
ways in which the Member State proposes to use the
Structural Funds (principally, but not exclusively the ESF)
to contribute to employment growth and economic and
social cohesion,

(cid:151) secondly, as a programming and financial

through which the European Social Fund will

instrument,
intervene

(cid:151) which guides

these
priorities, including those supported through Objective 3,
and

actions undertaken to fulfil

the

(cid:151) which should apply

to employment-related activities
throughout the European Union and in each Member State.

Clearly,
there must be coherence between the employment
strategy as reflected in the NAPs and the priorities of human
resource development supported by the ESF. Indeed, the Vienna
Summit Conclusions recommend that the reform of the ESF be
used to strengthen support for the employment strategy. The
NAPs combine national strategy on employment and national
policy instruments with the European priorities of cohesion
and employment.

Throughout
three general elements are of particular importance:

the whole human resource strategy proposed,

(cid:151) a mainstreaming approach for equal opportunities between

men and women is essential,

(cid:151) the employment potential of the information society must
be harnessed in the interests of society as a whole, and

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development,

(cid:151) the contribution of the European Social Fund to promoting
territorial
the
local
employmet pacts, must be
enhanced. This approach
would allow the actions undertaken in the framework of
the NAPs to be completed and reinforced on the appro-
priate territorial level.

example

via

for

Measures covered under this policy field might involve a more
innovative use of the ESF than has traditionally been the case.
For example, they could include a variety of services such as
pre-training, counselling, community employment,
job search
assistance, job support and employment aids, all combined in a
flexible comprehensive approach.

Within that context, the five policy fields in the ESF Regulation
set out the areas in which Member States should undertake
action which will support the four pillars of the employment
guidelines.

B. An inclusive society, open to all

It should also be noted that actions to promote training and
employment in companies can constitute State aid and must be
in conformity with competition rules.

A. Active labour market policies to promote employment

In this policy field, Member States should demonstrate how
they turn the active and preventive strategies called for in
the employment guidelines into concrete proposals for action.

Activation and prevention rely on (cid:145)tailor-made(cid:146) assistance based
on individual characteristics. Such targeting requires an early
identification of individuals at risk and should combine a wide
range of measures such as diagnostic interviews, training tied
to a personal action plan, career counselling and job search
assistance, and work trials.

It will be important to offer the unemployed training or other
active employability measures before their unemployment
becomes long-term. Promoting the employability of young
people is a key requirement
for combating youth unem-
ployment, and it is therefore essential to equip young people
with greater ability to adapt to technological and economic
changes and with skills relevant
to the labour market (cid:151)
where appropriate by implementing or developing appren-
ticeship training.

and exclusion,

Regional and local employment services have a key role to play
in preventing skills bottlenecks
and in
supporting adaptation to structural change. For example, they
should take a lead role in auditing the skills available and the
levels of young people’s professional qualifications, as well as
the training needs of the employed and the re-skilling needs of
the unemployed. This is essential both to develop training and
integration opportunities adapted to specific or
individual
needs and to adapt the provision of continous traning to the
needs of local and regional enterprises. Employment services
therefore have a particularly important role to play in regions
undergoing structural change.

The promotion of a labour market open to all is a priority for
Member States in the European employment strategy. In this
context, special attention should be given to the needs of the
disabled, ethnic minorities and other groups and individuals
who may be disadvantaged, and to the development of appro-
priate preventive and active policies to promote their inte-
gration into the labour market. However, reducing unem-
ployment and improving the (re-)integration into the labour
market of such groups is often not possible without over-
forms of exclusion: Exclusion often has a
coming other
number of causes, so only an integrated and comprehensive
approach can be effective as a strategy for integration. It is
important to tap into the capabilities of the non-governmental
sector in this field, since it can be closer to the reeal needs of
those concerned than statutory agencies. Equally, mobilising
local groups and their projects can be an effective way of
reaching those at risk of exclusion or already suffering from
it. The Commission’s draft ESF Regulation lays appropriate
emphasis on this means of providing such effective responses
to exclusion, whatever its origin.

Good practice in projects for social inclusion

In Portugal the Integrar sub-programme, which receives
EUR 279 million from the ESF over the 1994 to 1999
period supports multi-dimensional projects seeking social
and economic development of underprivileged communities
and social groups. This is in keeping with the high priority
given by the government to the national strategy against
social exclusion, with Integrar funding active training and
orientation measures for the long-term unemployed who
are
from the
Government. Integrar seeks to support actions designed to
prevent factors leading to exclusion and promote the access
into the labour market; vocational training schemes; and
actions targeted on socially underprivileged communities
inte-
and social groups which aim to strengthen social
gration.

receiving minimum income payments

In keeping with an all-embracing approach, the main lines
of action of the sub-programme include making a special
effort to inform the target population, who often experience
the greatest difficulties in gaining access to information, to
ease integration and/or prevent exclusion; and training
professionals who intervene directly within disadvantaged

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groups and address their specific problems. The innovative
elements of the programme include:

(a) Measures

training

traditional

upstream of

and
employment measures for people who have difficulties
(for
in participating in those traditional measures
example, housing,
social
welfare support
the most vulnerable groups,
specific training schemes for disabled people), which
improve their participation and success rates in tradi-
tional labour market measures.

education, health and

for

(b) The

adoption

development
methodology, reflecting a recognition of the territorial
basis of the problems and their social dimension.

community

the

of

C. Promoting employability, skills and mobility through

life-long learning

This policy field covers strategies to broaden access to the
acquisition of skills, to support the diversification and rein-
forcement of
training opportunities and to improve the
quality of education and training systems.

In order to reinforce the development of a skilled and adaptable
workforce, opportunities for lifelong learning, particularly in
information and communication technologies,
the fields of
In this respect, attention should be
should be improved.
given to the development of nationally recognised certification
permitting flexibility in the continuation of studies.

The quality of education and training received is fundamental
to young people’s capacity to enter
the labour market.
Education and training systems should be better equipped to
give people the ability to adapt and to integrate into the labour
market, and notably to provide every individual with the
minimum basic
and
numeracy). Particular attention should be given to young
people with learning difficulties. The improvement of skills
through basic education and training may be supported
where there is a clear link with improving the functioning of
the labour market and/or the employability of the individual.

required (specifically

literacy

skills

In regions lagging behind, improving the capacity and effec-
tiveness of the education and training systems as a whole is an
competitiveness.
element
important
Consistent
time has been
investment
shown to produce excellent results.

their
sector over

in up-grading

in this

D. Developing adaptability and entrepreneurship

Under this policy field, Member States should demonstrate
how, working with the social partners,
they can combine
their efforts to modernise work organisation and forms of

work, and enable the workforce to adapt better to economic
change. It will also be important for the creation of more and
better jobs to support entrepreneurship and the expansion of
training opportunities.

ESF action should focus on helping individuals to adjust to
changes arising from new technologies and from new market
conditions, particularly employees who risk becoming unem-
ployed. The anticipation of skills needs is crucial here, as is the
supply of training activities and advisory services to employees
of SMEs. Such actions imply the strengthening of partnership
and the full
the social
partners, as does the development of new ways of distributing
working time among occupational groups and of reconciling
working and family life.

involvement and cooperation of

It will be necessary to link actions and measures aiming at
integration, professional
training (initial or ongoing) and
re-skilling to activities supporting economic development and
conversion. This applies both at the level of support for enter-
prises (for example for innovation) and at the level of basic
conditions such as research and technological development (for
example in the development of a regional strategy for inno-
vation and technological development). Such a pro-active
in regions undergoing
approach is particularly important
structural conversion.

to promote

entrepreneurship and employment
In order
creation, a combination of demand-side measures (such as
the provision of subsidies or other support for individuals in
becoming self-employed or starting their own enterprises) and
supply side measures (such as targeted information, training
and tutoring activities) should be taken. Training for entrepre-
neurship and targeted support services for entrepreneurs are
also important.

Entrepreneurial activity, including self employment, could also
be supported, and Member States should promote measures to
exploit fully the possibilities offered by job creation at local
level, in the social economy, in the area of environmental tech-
nologies, in rural areas and in new activities linked to needs
not yet satisfied by the markets.

Partnership and anticipation in Sweden (Objective 4)

in the active and joint

During the 1994 to 1999 period, Objective 4 seeks to
facilitate the adaptation of
the workforce to industrial
change. A key success factor for Objective 4 in Sweden
lies
involvement of both the
management and employees in the planning and implemen-
tation of the projects. The partnership approach stresses
that both parties recognise the benefits change will bring.
Objective 4 has brought about the close cooperation of
social partners and authorities which did not exist before.
It has been shown that about 80 % of the participating

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enterprises have not previously received any public support
and counselling.

training for

With EUR 173 million the Swedish Objective 4 programme
concentrates mainly on innovative adaptation measures for
those employed by SMEs with less than 50 staff and is
individual
implemented in two stages: drawing up of
business plans; and the
change of key
employees/managers and for the competence development
of the firm’s workers and of those at risk of becoming
unemployed. Some studies show that 80 % of employees
have been involved in a joint analysis. Another success
factor has been that the work plan has been produced by
the enterprise itself and is based on individual needs.
According to the Swedish principle, the empowerment of
individuals leads to true adaptability, also for businesses,
which is carried out in the second stage.

E. Positive action for women

While mainstreaming a gender perspective into all actions
supported by the Structural Funds is essential,
the specific
positive action is required to complement this. These specific
actions must be based on:

(cid:151) an analysis undertaken in the mainstreaming context of the
difference between women and men in the sectors and
areas concerned and of
to equal
benefits from policy measures, and

specific constraints

should reflect

It
employment
strategy and supplement
aimed at improving the employability of the workforce.

the main objectives of

the European
the general actions

Strengthening employability and enterpreneurship among
women

In Spain, the Ayuntamiento of Santa PerpØtua de Magoda
and the Association of Employers set up a programme to
help women identify their career choices and find work
linking both the needs of
using an integrated approach:
local business in the region.
women and the needs of
Providing information on the career options available was
the beginning,
individual consul-
tations and groups sessions for women. Then followed
the training itself: from 400 to 500 hours including both
practice and theory in areas such as community services or
technical administration.

then came a series of

One of the major barriers women face entering the labour
market is the lack of care services. With funding from ESF,
children whose
childcare
mothers were attending training courses in LiŁge (Belgium).

facilities were provided for

Women are a minority among entrepreneurs. In Finland,
the ESF supported projects to encourage women to set
up their own companies. This project provided unemployed
women over 25 years old with six months training in entre-
preneurship and a four-week placement in a company.

(cid:151) on targets based on this

analysis

to correct

these

imbalances.

II. Specific actions in Objective 1 and 2 regions

the gender-specific obstacles

Indicators should then be set to monitor and assess progress on
equality. Programmes and measures should be designed to fully
address
to equal access and
participation in order
to make sure that discriminatory
effects are neutralised and that gender equality is promoted
and a balanced participation of women and men in decision-
making structures should be ensured. This could be achieved
through measures which aim to improve women’s career
progression and access to higher level positions, correct the
imbalance in the representation of women or men in certain
the increased
economic sectors and occupations,
employment of women and increase the level of entrepre-
neurial activity among women.

support

In this field, it will be important not just to rely on training
measures, but to use the full potential of all eligible measures
available, so as to support a comprehensive positive strategy.
Member States should therefore ensure that active labour
market policies are made available for women in proportion
to their share of unemployment, give particular attention to
obstacles which hinder women to wish to set up new busi-
nesses or become self-employed and ensure that women are
able to benefit positively from flexible forms of work organi-
sation.

The European Employment Strategy is not solely implemented
by national policies; regional and local authorities have a role
to play in implementing the employment guidelines within
their own sphere of competence. There is therefore scope for
a strong regional dimension in the implementation of these
guidelines, which may be translated into concrete measures
through regional programmes under Objective 2.

The essential characteristics of
such programming in the
employment and human resource development fields are that:

(cid:151) it must respond to a local or regional assessment of need
bottom-up programming

result

of

a

and
the
be
arrangement,

(cid:151) the activities supported should be integrated with activities

supported by other Structural Funds,

(cid:151) it must avoid all risk of double financing of measures or

actions financed under Objective 3.

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In the regions covered by Objective 2, the identification of
needs for training and skills should go hand-in-hand with the
setting of goals for the development or conversion of firms
receiving investment aid from the Structural Funds. This
could include, for example, specific actions in the following
the general measures
fields,
under Objective 3:

in so far as they complement

(cid:151) Developing suitable training and integration initiatives and
adapting the availability of on-going training to the
evolving needs of
in the
context of conversion or in anticipation of restructuring
in Objective 2.

local and regional enterprises,

(cid:151) Stimulating and responding in an appropriate manner to
the training requirements of enterprises in the regions
eligible for Objective 2 (aid to firms
to train young
people or provide those in work with new skills while
also developing new activities such as the development of
new products or processes or satisfying market potential,
including taking account of needs for training in tech-
nology).

(cid:151) Supporting the role of

local and regional authorities in
promoting the identification and formulation of the needs
of firms and in assisting in the adjustment of systems of
training and employment to meet local and regional needs.

These activities, based on a bottom-up approach, can be
included also in actions undertaken in regions eligible for
Objective 1.

PART 3: URBAN AND RURAL DEVELOPMENT AND THEIR
CONTRIBUTION TO BALANCED TERRITORIAL DEVEL-
OPMENT

A harmonious development of the Community territory takes
place against a background of greater economic integration and
increasingly global markets.

It is equally influenced by Community policies, each in its own
individual manner. This is the case for the interventions of the
Structural Funds, notably through their assistance to urban
development in an integrated regional approach and to rural
development in its double role of contributing to the European
agricultural model and to economic and social cohesion.

The complementarity of this assistance with a more balanced
development over the whole of the territory of the Union
cannot be taken for granted.
is necessary therefore to
encourage an integrated process aimed at favouring a synergy
of urban and rural development in order to make progress
towards a more balanced territorial development.

It

The Member States have prepared a draft informal document
containing indicative guidelines on the long-term development
the European territory (European Spatial Development
of

In this context, assistance from the Structural
Perspective).
Funds to reduce disparities between the core and peripheral
regions must be continued in view of the increased concen-
tration of activity in parts of the Union as well as in certain
metropolitan areas. The development strategy of each region
must also take account of the indicative guidelines in order to
include them in a boarder overall view, not just of the country
in question but of
is
important to take account of trans-national effects in estab-
lishing investment priorities, notably in the transport sector.

the Union as a whole. Similarly,

it

Thus,
the development of each region will progressively
encourage the emergence of an increasing number of zones
of economic integration more evenly distributed across the
Union, and the progressive evolution from the current centre-
periphery model towards a more multi-centred European area.

A. Urban development within an integrated regional

policy

Urban areas play a vital role in the European economy. They
are centres of communication, commerce, creativity, innovation
and cultural heritage, but they also consume more than their
fair share of energy and non-renewable natural resources and
produce disproportionate amounts of waste and pollution.
in particular also expert a powerful
Medium-sized towns
influence on rural areas.

(cid:145)Sustainable urban
The Commission’s recent communication:
development in the European Union: a framework for action(cid:146)
(notably actions 1, 8 and 18) sets the context for work to be
supported by the Structural Funds in urban areas. As part of
the integrated strategy for development or regional conversion,
this work should aim at four interdependent goals:

(cid:151) greater prosperity and employment

in urban areas by
enhancing the role of towns and cities as regional growth
poles,

(cid:151) support for social integration, fairness and the regeneration

of urban areas,

(cid:151) the protection and improvement of the urban environment
life, protecting
improving the qualify of
as a means of
human health and safeguarding local and global ecosystems
(including sustainable transport systems, renewable energy
sources and rational energy management),

(cid:151) contributing to systems

for

sound urban and local

management.

In both the Objective 1 regions and the Objective 2 areas, this
various programming
approach should mean that
documents under
include integrated
the Structural Funds
packages of operations in the form of integrated urban devel-
opment measures for the main urban areas in the region. Such

the

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measures will make a vital contribution to an integrated
approach to regional development or conversion.

special

support

Specifically, the restoration of disadvantaged urban areas could
through an integrated territorial
receive
approach similar to that developed by the Urban Community
Initiative, whose experience gained from its most innovative
measures
and an approach through partnership could
usefully be generalised.

the measures

Furthermore,
supported by the ESF under
Objective 3 should have a major impact in terms of social
cohesion even in the towns not covered by Objectives 1 and 2.

The renovation of an urban area in difficulty

Public and private assistance has been offered to Aulnay-
sous-Bois in the ˛le de France region which has 5 000
council dwellings, with numerous problems. This takes
the form of a major urban project including renovation
and complementary measures supported by Urban, one of
which seeks
to reduce insecurity while offering new
services to the inhabitants in the form of branch centres
local
providing staff, mobile services and offices
associations. There is also an initiative to collect bulky
objects and recyclable waste.

for

B. Rural development for mondernisation, diversification

and environmental protection

While some of the most dynamic regions of the Union have a
rural character, there are many other rural areas experiencing
often acute socio-economic problems reflected in weak demo-
graphic structures, insufficient job opportunities and an under-
provision of key services. Many of the difficulties can be traced
to the effects of extensive structural change stretching over
in the
several decades, notably
economic
the decline
importance of agriculture in terms of
its contribution to
regional income and employment. Today, around three-quarters
of Europe’s farmers are part-time requiring supplementary
sources of income.

At the same time, rural areas still account for some four-fifths
of European Union territory, while agriculture is the largest
user of rural
land and remains a key economic sector in
many regions.

For the European Union as a whole, one important aim of
rural development policy is to ensure the sustainability of the
European agricultural model. As such,
it forms the second
pillar of
the Common Agricultural Policy. This requires a
twin-track approach that supports both the development of a
multi-functional agricultural sector, on the one hand, and the
broader social and territorial context in which the agricultural
sector exists, on the other.

In the areas most
those eligible under
severely affected,
Objectives 1 and 2, rural policy should seek both to develop
a competitive agricultural sector using environmentally-friendly
methods of production and support for the diversification of
farm holdings and the rural economy into new activities and
sources of employment. Rural development
in these terms
remains an important element of cohesion policy and at the
same time would complete the modernisation and reform of
market policies under the CAP.

In these eligible areas, the Structural Funds and the EAGGF
Guarantee Section should support
the diversification of a
competitive rural economic structure based on encouraging
new activities through integrated programmes. Their priorities
will include:

(cid:151) A stronger agriculture sector to ensure that agriculture
and forestry are competitive by supporting investment in
modernisation, including the processing and marketing of
agriculture and forestry products, attempting to reduce
costs and improving product quality, increasing the value
added by agriculture and maintaining agricultural holdings
(principally by ensuring that they can be taken over by
young farmers) and the rural environment (including agri-
environmental measures).

(cid:151) Improving the competitiveness of

rural areas by
improving access and promoting diversification into new
activities and the creation of employment. This includes
the development of
firms, most of
which produce virutally unique high-quality products.
Other opportunities exist in the field of renewable energy,
including energy generation from urban waste in rural areas
close to major agglomerations.

tourism and small

(cid:151) Maintenance of the environment and Europe’s rural
heritage: environmental protection must be a major rural
policy
the
countryside and natural resources, traditional rural areas,
the promotion of agricultural tourism and the renovation
of villages.

preservation

including

priority

the

of

In addition, the multi-functional role of the agricultural sector
is increasingly recognised. Besides the economic role of agri-
culture, forestry and other productive activities, it now fulfils
an important social role through the provision of quality
products and the supply of leisure and recreation opportunities
to town dwellers. It is also an important factor in maintaining
the quality of the environment and the cultural heritage. Rural
areas are of the utmost importance for the development of the
European territory.

The mainstream rural development strategies cannot on their
own address all the problems confronting rural areas especially
in view of their local scale. The new Community initiative for
rural areas will provide an opportunity for complementary
actions to the mainstream programmes by supporting actions
conceived and carried out by partnerships operating on a local
level. The aims are to encourage the emergence and devel-
opment of new rural development models, which are then

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disseminated through networks, and to promote cooperation
between local actors in different regions and Member States.

New agricultural activities in northern Italy

In the Val Bormida, in northern Italy, innovative solutions
were found in order to support the incomes of inhabitants
experiencing declining incomes from traditional agriculture,
based on te exploitation of
the region’s potential as a
for medicinal purposes. With the
supplier of plants
assistance
development
rural
programmes, two new projects were supported, involving
the purchase of
automated
processing and packaging of dried plants and the under-
taking of research for the introduction of new varieties
and to improve quality-control.

European Union

allowing the

equipment

of

rate of

By the mind-1990s, production of essential oils reached
1 500 kg compared to 120 kg some 10 years earlier
while the quality certification (cid:145)biological product(cid:146) was
obtained guaranteeing a superior market position and a
higher
return. As a result, a new agricultural
outlet has been developed in the region, creating seven
new jobs. It has also contributed to the maintenance of
the natural
landscape in a mountainous environment,
bringing a total of 100 hectares of less fertile land under
cultivation.

Sustaining rural communities in Nordrhein-Westfalen

One of the problems of rural areas is the tendency towards
the concentration of key economic and social services,
while access to towns and cities via public transport is
being progressively reduced.
In certain Member States,
Objective 5b programmes have assisted in the re-estab-
lishment of basic rural services. For example, in the small
German village of Ottenhausen in Nordrhein-Westfalen, the
local bakery and the grocery closed down in 1995, leaving
the villagers dependent on services some distance away and
giving rise to particular difficulties for those with problems
of mobility. With the support of the local inhabitants and
with EAGGF co-financing, a new village shop was opened
but on a different basis from pre-existing facilities in that it
provided several services from a single outlet. It now acts as
a supplier of
local agri-
cultural products and bio-products as well as providing
important services: a post office, a central agency for shoe
and linen repair, for cleaning and an advisory service on
environmental matters. Thus basic services (cid:151) especially
important for older people and mothers with children (cid:151)
It also promotes local agricultural
are provided locally.
products: all
from a disused stable and hence restoring
part of the architectural heritage of the village.

food and household products,

Water recycling in the Canary Islands

An obstacle to development in the Canary Islands is the
shortage of water, is high price and the unequal distribution
of water resources in the islands. More than 80 % of the

available water comes from underground sources. These
underground reserves have diminished in recent
times,
modifying the balance between extracted and rainwater
sources and leading to a progressive increase in salination.
On the islands with the lowest rainfall, it has been necessary
to resort to desalination of seawater in order to supply the
population. Agriculture consumes 60 % of available water.

The shortage of water and its poor quality, along with the
competition from an expanding tourist sector are two of
the causes of the scaling back of agricultural activity. On the
island of Tenerife, a study has examined the technical feasi-
bility and economic viability of a more complete purifi-
treated water and its use in different areas.
cation of
the authorities decided to invest,
Following the study,
with the financial assistance of the EAGGF, in the estab-
lishment of a remote-controlled water distribution network,
tertiary purification treatment and the filtration of irrigation
water. This investment allows the agricultural sector access
to a new supply of water. It has also contributed to tourism,
the maintenance of green spaces and the improvement in
the quality of life.

C. Synergies between urban and rural areas: balanced

development

If the Union is to enjoy the best possible conditions for devel-
opment, towns and rural areas must complement each other.
The synergies to be encouraged in each region assisted by the
Structural Funds must be those that favour the multi-centred
and hence more balanced territorial development of
the
European Union. Rural areas must have access to the specialist
services that only urban centres can offer. City dwellers need to
be provided with the food supplies and natural, tourism and
recreational facilities which rural areas can offer.

The contribution of the Structural Funds to integrated terri-
torial development must be backed by support for networks
between urban centres and improved links between towns and
rural areas designed both to prevent duplication of effort on
identical work and to promote a model of land use which is
more effective and more respectful of sustainable development.
the role of urban centres, particularly
The development of
medium-sized ones,
in thinly
is of
populated areas. They are the only service reception points
for economic viability. Coor-
which reach the thresholds
dination with national programmes may also prove necessary
where regions are only partially covered by programmes
supported by the Structural Funds.

importance

special

The geographical size of the regions covered by Objective 1 is
such that it provides an adequate framework in which to meet
the need for an overall approach in which urban and rural
areas are complementary. That approach should also be used
in the Objective 2 areas, where it will be facilitated by the use
of the single programming document for the new Objective 2.
This should be used to prepare strategies which seek a balance
between rural and urban areas at regionale level.

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Official Journal of the European Communities

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in the various programming documents of

The inclusion of integrated approaches to urban or rural devel-
the
opment
regional
Structural Funds does not
programmes. These approaches, which take account of
the
the various parts of a single region,
specific features of
for global and integrated
should rather provide a basis
regional strategies.

remove the need for

They should contribute to the creation of areas of dynamic
scale, principally through
integration on an international
infra-
highly effective trans-national, national and regional
structure. The
should
Interreg III Community
complete this process by supporting trans-European, and
particularly cross-border, cooperation to achieve the balanced
development of the Union’s territory.

initiative

SENSITIVE AND COASTAL AREAS

When structural programmes cover sensitive and coastal
areas, it is important that they, in conjunction with other
sectoral programmes, ensure the sustainable development
of
such areas. Within the framework of a regional
economic strategy, structural funds could support actions
necessary for the protection of these areas, including the
funding of access infrastructure and the promotion of
(cid:145)nature(cid:146) tourism.

for

actions

coastal management

Priority
encompass:
reduction of pollution and rehabilitation of degraded
areas, control of beach fronts, excavations and other
activities altering water basins and the sea floor, and the
conservation of natural habitats.

D. Specific measures for fisheries areas

Structural policy in the fisheries sector (including aquaculture
and the processing and marketing of their products) is a vital
element of the common fisheries policy. It seeks to guide and
speed up the restructuring of the sector through the rational-
isation and modernisation of the means of production and
other measures which will have a permanent impact.

Regarding the fishing fleets, programmes must take account of
the following priorities:

(cid:151) The multi-annual guidance programmes for the fishing
fleets,
(MAGP IV until 2001 and MAGP V subsequently)
remain the reference basis for the framework for fisheries
capacity. Hence, priority must be given to their implemen-
tation (including that of the future MAGP V).

(cid:151) It is also necessary to avoid undesirable effects. Thus, insuf-
ficient renewal could lead to the widespread ageing of the
fleet; on the other hand, technical progress could wipe out
reductions
in capacity, even resulting in a worsening
imbalance between the fishing effort and resources.

(cid:151) At the technical level, priority must be given to the use of
improving the
the fish taken and preserved on board and

more selective fishing gear and methods,
quality of
improving working conditions and safety.

In the rest of the productive sector (aquaculture, the processing
of products), collective measures which devote attention to the
interests of
the sector have a much greater
priority than investment in firms. Combating environmental
problems,
and disposing of
improving product quality
surplus or under-exploited species are also priorities.

the whole of

Structural policy in the fisheries sector is also a component of
cohesion policy: on the one hand, Community aid the sectoris
concentrated chiefly in the regions eligible under the territorial
Objectives of the Structural Funds; on the other, it seeks to
provide a response to the socio-economic difficulties of coastal
areas caused by the restructuring of the sector by creating jobs
and diversifying activities in the most promising areas through
joint assistance from various Structural Funds. It is therefore
essential to ensure the synergy of the different Structural Funds
in order guarantee the effectiveness of their combined impact.

Projects in support of the fisheries sector

Processing of products (Belgium)

In Antwerp, a dozen fish processing companies, located in
run-down buildings in the city centre reorganised into four
new firms on an industrial site close to means of transport.
Since then, the turnover of the new firms has increased
significantly.

Aquaculture (United Kingdom)

Based in Argyll (Scotland) West Coast Aquaculture Ltd was
assisted to construct and equip a new, state of the art water
re-circulation system to on-grow juvenile turbot and
reliance on farmed Atlantic
diversify to avoid over
salmon. By the end of
the year 2000 the company
expects to be harvesting some 450 tonnes of turbot per
year.

Collective exploitation of the shoreline (Spain)

In Galicia, many projects aimed at the collective exploi-
tation of the shoreline by shore fishermen have allowed
the improved conservation of the resource (bivalves) and
quality control of fish products.