Opinion of the Committee of the Regions on the 'Communication from the Commission to the Member States laying down guidelines for a Community initiative concerning economic and social regeneration of cities and of neighbourhoods in crisis in order to promote sustainable urban development (Urban)'
Date: 2000-02-17
Institutions: European Committee of the Regions
Subjects: EU initiative, economic development, social development, urbanisation

6.6.2000

EN

Official Journal of the European Communities

C 156/29

Opinion of the Committee of the Regions on the ‘Communication from the Commission to the
Member States laying down guidelines for a Community initiative concerning economic and
social regeneration of cities and of neighbourhoods in crisis in order to promote sustainable
urban development (Urban)’

(2000/C 156/05)

THE COMMITTEE OF THE REGIONS,

having regard to the proposal for a Communication from the Commission to the Member States laying
down guidelines for a Community initiative concerning economic and social regeneration of cities and of
neighbourhoods in crisis in order to promote sustainable urban development (urban) (COM(1999) 477
final);

having regard to the decision taken by the Commission on 25 October 1999, under the first paragraph
of Article 265, of the Treaty establishing the European Community, to consult the Committee of the
Regions on the matter;

having regard to the decision by the Bureau on 2 June 1999, which directs Commission 4 — Spatial
Planning, Urban Issues, Energy and Environment — to draw up the relevant opinion;

having regard to the draft opinion CdR 357/99 rev. 1 adopted by Commission 4 on 2 December 1999
(rapporteur: Sally Powell, UK, PES);

adopted the following opinion at its 32nd plenary session on 16 and 17 February 2000 (meeting of
17 February).

1.

Introduction

1.1.
The Committee of the Regions welcomes the Com-
missions proposal for the continuation of the urban Com-
munity Initiative, which offers a powerful recognition of the
continued need for EU structural assistance in deprived urban
areas. It welcomes too the presentation of the Guidelines, as a
‘preliminary consultation draft’, to the European Parliament
and Committee of the Regions before these are finalised.

1.2.
The COR acknowledges that the current approach of
targeting urban areas suffering from high unemployment,
poor housing, a degraded environment and lack of social
amenities, has led to significant successes: there are many
examples of highly innovative projects across the EU.

1.3.
The first urban Community Initiative made consider-
able progress towards providing a route into mainstream
funding programmes, but there is a need for more to be done.
urban has helped to bring about a cultural change through
the direct involvement of communities, offering a different
approach to integrated partnerships and programming. The
experience of
the former Community Initiative, and the
developing awareness of the centrality of urban policy, have
helped to shape the new urban strand of funding under
Objectives 1 and 2, an important step forward in the
recognition of the needs of towns and cities across the Union.

1.4.
It is important to note that the new Community
Initiative represents an additional way for the EU to address

the problems of urban areas, with Objectives 1 and 2 providing
considerably more significant support. The scale of funding
proposed (700 million Euros for 2000-2006) has to be seen
in this context, but the COR would nonetheless record its view
that resources that equalled or improved upon the level of the
previous programme would enable a wider range of innovative
projects to be developed.

2. A strategy for the urban Community Initiative 2000-

2006

2.1.
The strategy for the new urban Community Initiative
needs to consider the broader issues which impact on and
within the EU. Unemployment in many cities exceeds the
national average, illustrating the impact of economic restruc-
turing and the varying capacity for adjustment.

The challenge of the global economy which focuses on
inter-
in many ways

2.2.
growth sectors such as communications, transport,
national
trade, environmental
impacts disproportionately on urban areas.

technology,

2.3.
Social exclusion remains a predominant concern of the
EU and is particularly acute amongst the long term unem-
ployed, individuals from minority ethnic communities, and
migrants, who face exclusion from the labour and housing
markets in addition to language barriers.

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Official Journal of the European Communities

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2.4.
The protection and enhancement of the urban environ-
ment remains a global challenge. The depletion of natural
resources, increased pollution and waste, the loss of green
space, amongst others reinforces the need for increased efforts
by the EU.

3.3.
The COR is pleased to note that targeted actions in
urban areas remains one of the key features of the new
programme proposals, and supports the need for a critical
mass of population. Mainstreaming the programmes into the
wider economic, social and environmental strategic plans, will
forge links between areas of poverty and areas of opportunity.

2.5. Meeting the challenge requires a comprehensive
approach combining preventative measures as well as
remedial. The COR is pleased to note that many of the actions
proposed by the Commission are seeking to adopt
this
approach. It is suggested however that further attention should
be paid to these wider factors to the extent that they are not
reflected in the draft document (e.g. globalisation, and the
importance of preventative measures).

3. General objectives and principles

The two main objectives of the new programme are

3.1.
described in the draft Guidelines (paragraph 8) as:

a)

to promote the formulation and implementation of par-
ticularly innovative strategies for sustainable economic and
social regeneration of small and medium-sized towns and
cities or of distressed urban neighbourhoods in larger
cities;

b)

to enhance and exchange knowledge and experience in
relation to sustainable urban regeneration and develop-
ment in the European Union.

The indicative list of eligible measures attached to the Guide-
lines stresses the importance of environmentally friendly
development and rehabilitation, as well the integration of
socially excluded persons through access to basic services such
as health, education and public transport. It might be helpful
for the description of the objectives more fully to reflect these
emphases.

3.2.
Subject to this proviso, the COR would support the
two main objectives of the new programme. The key to the
continued success of Urban will be innovative strategies
delivering projects on the ground which genuinely improve
people’s lives, and which bring together national, regional and
local policies and funding regimes in an integrated manner. In
the same way, the new Community Initiative offers exciting
opportunities for local authorities to bring together the
different facets of their work on social exclusion in a new
integrated approach which stands to offer real added value
from the new Community Initiative. Enhancing the exchange
of experience and best practice is also particularly welcome
from the point of view of local and regional authorities,
given their role in developing and implementing the current
programmes. This role must be taken account of in identifying
new programmes and in their monitoring and implementation.

3.4.
Local community-led programmes, strong partner-
ships and integrated actions are key elements in the success of
the present Urban programmes and the COR is pleased to note
that these approaches continue to underpin the implemen-
tation of the new programmes. Targeted locally based initiat-
ives such as Urban encourage active and innovative working
through local partnerships involving a broad range of players
to promote and sustain community involvement. It is this
involvement in identifying local
issues and priorities, and
developing and implementing plans for change, which leads
to sustainable solutions.

But

3.5.
the COR would stress that empowering and
enabling the local community to play their role requires
investment in building and developing local capacity. This
takes time and needs to be taken account of in the program-
ming process. The COR also urges the Commission to
recognise it is the quality of outcome that will demonstrate the
success of the integrated policy approach, rather than simply
quantifiable outputs reflecting such factors as, for example, any
formal consultative processes which have been undertaken.

3.6.
In addition the COR would stress that the diversity of
urban areas calls for individual and flexible solutions. There is
no definitive model which can be required or imposed: each
urban area has its own specific issues and challenges problems
which demand its own approaches and solutions. Flexibility
will therefore be fundamental to the successful development
of projects.

theme of

Integration is a central

3.7.
the sustainable
development agenda, and this approach must be promoted
within the new programmes. We cannot build a successful
urban society by restricting economic growth; but equally we
cannot preserve the urban environment without a recognition
from all sectors of society of our common responsibility to
conserve and enhance the quality of urban life; and we cannot
achieve or sustain economic prosperity while social exclusion
characterises so many of our urban neighbourhoods.

3.8.
The COR also acknowledges the challenge of good
governance, building local capacity to change and encouraging
civic engagement, and welcomes the priority accorded to this
within the new Urban Community Initiative. The programme
could offer possibilities for innovative and flexible decision

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C 156/31

making processes which will extend participation to the local
community,
the
Urban Framework.

taking forward the recommendations of

The COR suggests that a more appropriate reference in the
fifth criterion would be to ‘migrants’ rather than ‘immigrants’;
that the use of the term ‘skills gap’ would be more appropriate
than ‘skills deficiencies’; and that the issue of employability be
included in the issues related to education and skills.

4. Eligible areas and priorities for action

4.1.
The COR understands the case for the proposal for
areas of 10 000 population to be eligible for support as this
should provide sufficient scope and scale to develop innovative
strategies. It notes the proposals that the maximum number of
urban areas to be covered will be in the order of 50. The COR
feels that each Member State should be able to put forward
additional urban areas and not be restricted by the Com-
mission’s proposed figures. However, the COR would state
that sufficient funding should be made available to ensure the
effectiveness of each programme in meeting the objectives of
the Urban initiative. In addition the COR welcomes the broader
accessibility to the programme so that all towns, cities or
areas of deprivations within cities can now be eligible for
consideration. This removes an artificial barrier previously in
place and enables a coherent approach to be taken in tackling
urban problems in a given area. It will also assist in widening
the effect of the Structural Funds by admitting social factors
such as health. It will provide greater opportunity for urban
areas which have not previously been eligible for such support,
and also offer the possibility of continuing eligibility for urban
areas that have lost Objective 2 status. At the same time,
competition for funding will be very great. The number of
projects envisaged, the population base and the breadth of
eligibility underline the importance of realistic expectations as
to the scale of achievable outcomes.

4.3.
The COR welcomes the flexibility allowed in the draft
regulations for the use of a range of indicators, which makes it
possible to reflect the differing needs of urban areas, and offers
the prospect of more effective relevant programmes as a
consequence.

The COR would also support the need to promote
4.4.
equality of opportunity, but would also add that all forms of
exclusion only serve to reinforce the disparity between regions.
Local and regional authorities would wish to take account of
this in their programmes.

The COR acknowledges that

4.5.
the proposed set of
priorities is appropriate for developing Community Initiative
Programmes as they span a broad range of issues and together
with the considerable variety of activities which can be
supported, should assist in the delivery of innovative strategies,
and flexible decision making.

The Guidelines set out nine criteria for eligibility, and

4.2.
an area will be required to comply with at least three:

5. Preparation of programmes — presentation and

approval

— a high level of long-term unemployment;

— a low level of economic activity;

— a high level of poverty and exclusion;

— a specific need for conversion, due to local economic and

social difficulties;

— a high number of immigrants, ethnic and minority groups,

or refugees;

— a low level of education, significant skills deficiencies and

high drop-out rates from school;

— a high level of crime and delinquency;

— precarious demographic trends;

— a particularly rundown environment.

5.1.
The Guidelines propose that individual allocations are
to be made by the Commission to each Member State, with a
minimum level of spending of EUR 500 per inhabitant and a
maximum number of areas per Member State (set out in
Annex II of the document). Member States are then to identify
the areas and the breakdown of funding, and to select the
precise criteria for eligibility to apply in that Member State.
Local authorities will thereafter develop Community Initiative
Programmes in accordance with the requirements of the
Guidelines,
in partnership where appropriate with regional
and national authorities. The Programmes are to be submitted
to the Commission for approval before ERDF monies are
granted.

5.2.
The COR takes the view that the Guidelines should say
more about the need for transparency at the stage of decision-
making in Member States, including the need for consultation
with local and regional authorities and for open competition
for funds. As an alternative, the COR advocates the view
that a fairer and more streamlined system would limit the
opportunity for Member States to vary the criteria, with local
authorities simply bidding against those in the Guidelines.

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Official Journal of the European Communities

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5.3.
The COR welcomes the recognition of the role of local
authorities in taking the lead. Local authorities have a unique
role and important position in building capacity within the
voluntary sector and creating new forms of partnership
working.

5.4.
Innovation is central to the new Community Initiative,
and in this context it is suggested that particular efforts be made
to achieve a simple, straightforward and flexible approach to
the management of the Community Initiative,
in order to
allow local authorities and their partners to develop the most
effective approach for their area.

6. Monitoring implementation evaluation

Local authorities will also play a leading role in those
6.1.
mechanisms to be developed for administering and delivering
programmes, whether this is at local national or trans national
level. COR would stress that local authorities should continue
to be recognised on Monitoring and Steering Committees.

7. Financing

7.1.
The COR reiterates its support for the new Urban
Initiative. Whilst acknowledging that the inclusion of the
programme was at the end of the Structural Fund reform
debate, and that urban areas will be eligible for greater specific
support from Objectives 1 and 2, the COR would like it noted
that the comparatively small budget allocation does not reflect
the fact that four-fifths of the population of the EU live in
urban areas.

8. Conclusions

The COR welcomes the presentation of the draft
for

8.1.
Guidelines to the European Parliament and to itself
consultation.

mentioned below in paragraph 8.3 of the conclusions, but
would nonetheless point out its concern over the relatively
low level of resources.

8.3.
It would be helpful for the description of the objectives
in paragraph 8 of the draft Guidelines more fully to reflect the
emphasis later in the document on environmentally friendly
development and rehabilitation, as well the integration of
socially excluded persons through access to basic services such
as health, education and public transport.

8.4.
The COR welcomes the continuation of the locally
based targeted approach, but would stress that proper recog-
nition be given within the programmes to the time it takes to
build and develop capacity within the local community. In
addition the COR would urge the Commission to take into
consideration qualitative outcomes as a consequence.

8.5.
The COR stresses that the diversity of urban areas needs
to be reflected in the programmes and properly considered by
the Commission.

8.6.
The COR welcomes the expanded eligibility criteria as
a more helpful approach to developing programmes, and
supports the increased accessibility to the programme which
the Commission proposals offer so that all towns and cities or
areas of deprivation within cities can now be eligible for
consideration. At the same time, competition for funding will
be very great. It will be important to recognise the importance
of realistic expectations as to the number of projects likely to
be funded in each Member State and the scale of achievable
outcomes.

8.7.
The COR welcomes the recognition of the role of local
authorities in developing and implementing the Community
Initiative programme, and would want to see this carried
through in the Guidelines into the programme management
arrangements, including transparency and the need for consul-
tation with local and regional government by Member States
the COR would propose
Indeed,
in determining criteria.
limiting the opportunity for Member States to vary criteria for
project bids beyond common criteria set out in the Guidelines.

8.2.
The COR supports the continuation of the Urban
Community Initiative and the general aims of the objectives
covering the period 2000-2006, subject to what is being

8.8.
The COR would like to see the greatest possible
simplicity and flexibility in the management and delivery of
the new Community initiative.

Brussels, 17 February 2000.

The President

of the Committee of the Regions

Jos CHABERT