Opinion of the Committee of the Regions on the "Commission Staff Working Paper on Information society and regional development — ERDF interventions 2000-2006: criteria for programme assessment"
Date: 2000-09-21
Institutions: European Committee of the Regions
Subjects: EU programme, information network, information policy, new technology, professional qualifications, regional development

C 22/32

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Official Journal of the European Communities

24.1.2000

Opinion of the Committee of the Regions on the ‘Commission Staff Working Paper on
Information society and regional development — ERDF interventions 2000-2006: criteria for
programme assessment’

(2001/C 22/10)

THE COMMITTEE OF THE REGIONS,

having regard to the decision taken by its Bureau on 11 April 2000, under the fifth paragraph of
Article 265 of the Treaty establishing the European Community, to issue an opinion on the information
society and regional development — ERDF interventions 2000/2006 and to entrust Commission 1
(Regional Policy, Structural Funds, Economic and Social Cohesion and Cross-border and Inter-regional
Cooperation) with the preparation of that opinion;

having regard to its opinion on the Commission Communication to the Council, the European Parliament,
the Economic and Social Committee and the Committee of the Regions on the convergence of the
telecommunications, media and information technology sectors and the implications for regulation —
results of the public consultation on the Green Paper (COM(1997) 623 final) (COM(1999) 108 final);
COR 191/99 fin (1);

having regard to its opinion on public sector information: a key resource for Europe. Green Paper on
public sector information in the information society (COM(1998) 585 final); COR 190/99 fin (2);

having regard to its opinion on the Green Paper on the convergence of the telecommunications, media
and information technology sectors and the implications for regulation — towards an information society
approach (COM(1997) 623 final); COR 149/98 fin (3);

having regard to its opinion on the proposal for a Council Regulation (EC) laying down general provisions
for the Structural Funds; COR 167/98 fin (4);

having regard to its opinion on the Communication from the Commission on cohesion and the
information society (COM(1997) 7 final); COR 270/97 fin (5);

having regard to its opinion on learning in the information society: action plan for a European education
initiative (1996-1998) (COM(1996) 471 final); COR 368/96 fin (6);

having regard to its opinion on the Green Paper on learning and working in the information society:
people first (COM(1996) 389 final); COR 365/96 fin (7);

having regard to its resolution on the information society: from Corfu to Dublin — the new emerging
priorities — the implications of the information society for European Union policies — preparing the
next steps (COM(1996) 395 final); COR 337/96 fin (8);

having regard to its opinion on the Communication from the Commission on the multilingual
information society and the proposal for a Council Decision on the adoption of a multiannual programme
to promote the linguistic diversity of the Community in the information society (COM(1995) 486 final);
COR 220/96 fin (9);

(1) OJ C 57, 29.2.2000, p. 5.
(2) OJ C 57, 29.2.2000, p. 11.
(3) OJ C 373, 2.12.1998, p. 28.
(4) OJ C 373, 2.12.1998, p. 1.
(5) OJ C 64, 27.2.1998, p. 20.
(6) OJ C 116, 14.4.1997, p. 89.
(7) OJ C 116, 14.4.1997, p. 81.
(8) OJ C 42, 10.2.1997, p. 31.
(9) OJ C 337, 11.11.1996, p. 45.

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having regard to its opinion on the Communication from the Commission to the Council and the
European Parliament about a multiannual Community programme for purposes of stimulating
development of a European multimedia content industry in the emerging information society (INFO
2000) (COM(1995) 149 final); COR 22/96 (1);

having regard to its opinion on the Commission Communication on Europe’s way to the information
society — an action plan (COM(1994) 347 final); COR 21/95 (2);

having regard to the draft supplementary opinion adopted by Commission 3 on 26 June 2000 (COR
167/2000 Corr., rapporteur: Mr Lucas Giménez, ES/PPE) and the amendments adopted at that meeting;

having regard to the draft opinion adopted by Commission 1 on 28 June 2000 (COR 124/2000 rev. 2,
rapporteur: Mr Tögel, D/PSE).

WHEREAS

1.

The world economy is being transformed more and more into an information society to which new
rules apply and which has an enormous growth and employment potential on account of its
intrinsic dynamism.

2. Digital technologies are making information access, processing, storage and transmission ever

cheaper and easier.

3.

4.

This is creating a new competitive environment for businesses and markets, and also for Europe’s
regions, which impacts, inter alia, on structural change in Europe.

The European Union was quick to recognise the opportunities and challenges offered by the
information society and has launched major initiatives to this end. These include:

— initiatives for liberalising the telecommunications markets in Europe as part of the plan for

completing the single European market;

— the development of a European legal framework for many aspects of the information society;

— increased support for research and development in this area;

— the Europe-wide exchange of experience and the networking of European initiatives, and

— awareness-raising campaigns about the opportunities and risks of the information society.

5.

The subject has become particularly topical as a result of important decisions taken at the European
summit in Lisbon, where agreement was reached inter alia on the following objectives:

— bringing every citizen, home and school, every business and administration into the digital age

and on-line;

— creating a digitally literate Europe, supported by an entrepreneurial culture ready to finance

and develop new ideas;

— ensuring the whole process is socially inclusive, builds consumer trust and strengthens social

cohesion;

— the e-Europe initiative is to cover all sectors of society (and will involve, for example, equipping
schools with IT in order to move Europe’s youth forward into the digital age, the swifter and
non-bureaucratic provision of risk capital
in order to prepare small and medium-sized
businesses for market access, and gearing information technologies to the needs of persons
with disabilities).

(1) OJ C 129, 2.5.1996, p. 39.
(2) OJ C 210, 14.8.1995, p. 109.

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6. However, in order to achieve these targets, it will be necessary to overcome numerous barriers to

the rapid growth in digital technologies in Europe:

— generally expensive, insecure and slow access to the Internet and e-commerce;

— an insufficient digitally literate on-line population;

— lack of a sufficiently dynamic, entrepreneurial, service-oriented culture;

7.

8.

9.

— a public sector which is not playing a sufficiently active role in enabling the development of

new applications and services.

It is above all local and regional authorities which plan, carry out, guarantee and in particular finance
the actual work involved in setting up the information society throughout Europe, e.g. by developing
appropriate regional initiatives.

In structurally weak areas in particular, special importance is attached to the strategic guidance
provided by support programmes such as the ERDF with its support for productive investment,
infrastructure measures and services for small and medium-sized enterprises.

For this reason, the Commission states in its staff working paper that it is necessary to examine the
role of the Structural Funds in general and the ERDF in particular in supporting the information
society. Since the publication of the Bangemann report in 1994, communications infrastructure has
been constantly improved and extended and has become profitable; hence the Commission thinks
that direct support on the supply side is no longer necessary in every case.

10. However, given the strategic importance of the information society for Europe and the rapid
development of telecommunications in technological and economic terms, the Commission thinks
that it is necessary to development demand in this area, with special emphasis on the importance of
network access for users. The methods used to achieve these objectives also include the coordination
of measures within the EU.

11. The Commission also states that ERDF support should be granted if there is a clear need for public

assistance.

12. The Commission therefore intends to focus more on improving demand, since a highly developed
infrastructure loses its raison d’être if the services available are not interesting for potential users,
who are unable to use them properly because of a lack of knowledge or skills.

13.

In order to determine suitable support measures in this area, users therefore need to be more
involved in discussions at regional level.

14. The Commission also lists the absence of commercial incentives to invest, the lack of private
initiative and investment and a growing competitive gap between different zones in a region as the
main reasons for granting Structural Fund assistance.

15. The following points should also be borne in mind in the Commission’s view:

— the assistance should fulfil criteria, i.e. it should improve access to networks and their effective

use;

— infrastructure investments should be linked to and determined by the information society

development strategy of the region;

— co-financing should be guaranteed and commensurate with the new regulatory environment.

adopted the following opinion at its 35th plenary session on 20 and 21 September 2000 (meeting of
21 September).

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The Committee of the Regions

— the creation and availability of high-quality digital

content;

1.

2.

3.

4.

5.

6.

7.

8.

9.

considers that the information society is a key element in
Europe’s development and competitiveness in the world
economy;

— a comprehensive supply of applications and services

accessible to all;

points out that the introduction of new information
and communications technologies will bring undoubted
advantages for the regions and will help Europe to
advance along the road of economic and social cohesion;

notes that the development of the information society
will in future be one of the most important policymaking
areas for the EU Structural Funds and that local and
regional authorities must be involved in all stages of
implementation;

stresses that only decisive action by government, in close
cooperation with industry, to promote the information
society will enable the opportunities offered by the new
technologies to be exploited to the full;

emphasises that the rapid development of the information
society may open up new windows of opportunity for
economic development by making areas more attractive
as locations for businesses;

notes that opportunities exist for creating skilled jobs
even in regions and municipalities in structurally weak
rural areas, which are often in remote locations and
points out that measures adopted must form part of
strategic plans which are fully and coherently integrated
with regional development as a whole;

considers that the drawing up of the plans and the
responsibility for the adoption of the necessary specific
measures should rest with the regional and local auth-
orities in order to ensure that investment is tailored to
the structural needs and requirements of each region;

supports the Commission in its strategic approach, under
which the decision as to the most effective combination
of measures for a regional investment plan must be the
result of a broad-based dialogue at regional and local
level involving all interested parties, and specific measures
cannot be taken unless they are appropriate to the
regional socio-economic structure;

considers that government strategies for promoting the
development of the information society in Europe should
take into account four basic preconditions for the exist-
ence of a market in advanced multimedia services:

— broad availability of infrastructure offering sufficient

capacity and services;

— establishment of a suitable regulatory framework for
services derived from technological convergence;

states that individuals, as members of society, can benefit
from the innumerable services offered by the information
society, and that it will be necessary to stimulate invest-
ment to boost confidence in the new technologies and
the security of networks so that private citizens too can
contribute to the demand which makes possible the
development of applications, content and services;

therefore trusts that the following criterion is observed
when providing skills training for potential users: a
modern education and vocational training system is vital
if workers are to develop the skills to flourish in
new economic activities and reap the benefits of the
information society. This also includes distance learning
and private study using electronic aids plus,
in the
business sector, the development of these skills with the
aid of appropriate training measures;

10.

11.

12. maintains that it is necessary to familiarise all parts
of society with the new technologies. The activities
undertaken with a view to boosting this social awareness
will be crucial for the achievement of the objectives of
In order to bring people closer to the
integration.
information society determined measures will be needed
in schools, universities, continuing education, adult edu-
cation, education for the elderly and for the sections of
the population most at risk of exclusion, such as residents
of rural areas,
fishing areas or remote areas whose
distance from the main economic centres may be the
source of dysfunctions which only government can
remedy;

13. agrees in this connection with the Commission that so
far the ERDF has mainly helped to modernise and
build up a complete information and communications
infrastructure and, in particular, a basic telephony net-
work and that now — since most investments have
become profitable — the bulk of the ERDF contribution
should focus on the demand side and on creating
and consolidating a multimedia services supply market
supported by an advanced infrastructure;

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14.

stresses that government itself is an essential component
of demand as a consumer of telecommunications and
information services and as a provider of services to
citizens. Government should serve as an example to
business and to the public by becoming a consumer and
provider of information-society services; to this end it will
need to open up the relevant public tender procedures,
enabling every bidder to make bids appropriate to its
capacity,
in the awareness that some of the possible
advantages of orthodox technology may in this way
be lost. The adoption of the new technologies will
undoubtedly bring an improvement in the quality of
management and in services provided to the public,
whilst improved efficiency and management will bring
cost savings for public-sector budgets;

15. demands that opportunities be created forthwith allowing
regional and local authorities to help ensure that general
and vocational training can keep pace with the challenges
of the information society and that future workers acquire
the requisite skills. Also included here is the setting-up of
citizen-friendly information services and the creation of
public Internet access points plus, of course, support for
the use of IT instruments by SMEs;

16. points out that firms are another essential component of
demand. In carrying out its task of boosting demand,
government must bear in mind that SMEs are consumers
of information-society services, given the benefits they
can derive from integrating the new information and
communication technologies into their businesses. To
this end, it is necessary to improve firms’ familiarity with
the technology and make them aware of the business
advantages which the information society offers in terms
of cost savings and improved profitability. Moreover, the
new technologies will permit the integration of different
stages of the business process with less need for out-
sourcing;

17. considers that not only is it necessary to promote the use
of the new technologies by traditional firms with a view
to modernising their business, but also to promote
business innovation by encouraging new small and
involved in productive
medium-sized entrepreneurs

Brussels, 21 September 2000.

activities relating to the technology sector to influence
the development of applications and content and to
adopt initiatives for the provision of new services in a
sector which is in a state of constant development and
change;

18.

supports the Commission in (a) fixing new priorities for
information society support and focusing on helping
SMEs to introduce information and communications
technologies in an effective manner and adapting these
technologies to their methods of business management
and (b) laying down a new timeframe and new framework
conditions. This is the only way to bring about genuine
economic benefit
and
especially SMEs and to ensure at the same time that the
new information networks can be used more effectively
and more easily;

commercial

enterprises

for

19. also thinks that investment in telecommunications infra-
structure is justified under certain circumstances, pro-
vided that the ERDF contribution satisfies the following
criteria:

— support is provided for better access to data net-

works and their efficient use;

— investment in infrastructure must be linked to and

determined by the regional development strategy.

It is understandable in this context that measures which
merely serve to modernise existing basic telecommuni-
cations infrastructure should no longer be supported as a
matter of priority by the ERDF and that investment
decisions must be taken by public authorities issuing
invitations to tender and not by operators. Support
should continue to be given for improving education and
training to take account of the information society;

20. would reiterate that ideally ERDF support should not
be ‘implemented through separate measures alongside
others. Rather, consideration should be given to incorpor-
ating into every measure appropriate information society-
related sub-measures’;

21.

firmly supports the planning and development of regional
initiatives in favour of the information society.

The President

of the Committee of the Regions

Jos CHABERT