Proposal for a Council Decision on Community strategic guidelines for Rural Development (Programming period 2007–2013) {SEC(2005) 914}
Date: 2005-07-05
Institutions: European Commission
Subjects: economic and social cohesion, environmental policy, fund (EU), reform of the CAP, regional development, rural development

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 5.7.2005 
COM(2005) 304 final 

2005/0129 (CNS) 

Proposal for a 

COUNCIL DECISION 

on Community strategic guidelines for Rural Development  

(Programming period 2007–2013) 

(presented by the Commission) 

{SEC(2005) 914} 

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EXPLANATORY MEMORANDUM 

To  bring  rural  development  policy  into  line  with  the  Community’s  priorities,  the  Council 
Regulation  on  support  for  rural  development  by  the  European  Agricultural  Fund  for  Rural 
Development (EAFRD) provides in its Article 9 for the adoption of Community level strategic 
guidelines  for  rural  development  for  the  programming  period  from  1  January  2007  to 
31 December 2013. These guidelines are annexed to the proposed decision. 

The  target  date  for  adoption  of  the  Community  strategic  guidelines  is  Autumn  2005.  The 
common  framework  for  monitoring  and  evaluation  should  be  fully  elaborated  by  the  end  of 
2005. 

With these elements in place, Member States can finalise their national strategy plans for the 
end  of  2005,  beginning  of  2006  and  finalise,  after  agreement  on  the  main  orientations,  the 
detailed programming in the first half of 2006. The 2nd half of 2006 would be available for the 
approval process. 

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2005/0129 (CNS) 

Proposal for a 

COUNCIL DECISION 

on Community strategic guidelines for Rural Development  

(Programming period 2007–2013) 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community,, 

Having regard to Council Regulation (EC) No …/… of … on support for rural development 
by  the  European  Agricultural  Fund  for  Rural  Development  (EAFRD)1,  and  in  particular 
Article 9(2), first sentence thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament2, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

Article  9(1)  of  Regulation  (EC)  No  …/…  provides  that  strategic  guidelines  for  rural 
development  for  the  programming  period from 1 January 2007 to 31 December 2013 
should be adopted at Community level to set the priorities for rural development. 

The strategic guidelines identify the areas important for the realisation of Community 
priorities,  in  particular  in  relation  to  the  Göteborg  sustainability  goals  and  to  the 
renewed Lisbon strategy for growth and jobs. 

On the basis of these strategic guidelines, each Member States shall prepare its national 
rural  development  strategies  constituting  the  reference  framework  for  the  preparation 
of rural development programmes. 

The European Economic and Social Committee has given an opinion3. 

The Committee of the Regions has given an opinion4, 

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HAS DECIDED AS FOLLOWS: 

Sole Article 

The Community strategic guidelines for Rural Development programming period 2007–2013, 
as set out in the Annex, are hereby adopted. 

Done at  

For the Council 
The President 

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ANNEX 

Community strategic guidelines for  
Rural Development programming period 2007–2013 

1. 

INTRODUCTION 

The new rural development regulation defines the purpose and the scope of assistance 
from the rural development fund. The Community strategic guidelines identify within 
this  framework  the  areas  important  for  the  realisation  of  Community  priorities,  in 
particular in relation to the Göteborg sustainability goals and to the renewed Lisbon 
strategy for growth and jobs. 

The Community strategic guidelines for rural development will help to: 

– 

– 

– 

– 

identify and agree the areas where the use of EU support for rural development 
creates the most value added at EU level; 

make  the  link  with  the  main  EU  priorities  (Lisbon,  Göteborg)  and  translate 
them into rural development policy; 

ensure consistency with other EU policies, in particular in the field of cohesion 
and environment; 

the 

accompany 
the  new  market  oriented  Common 
Agricultural Policy and the necessary restructuring it will entail in the old and 
new Member States. 

implementation  of 

2. 

RURAL DEVELOPMENT AND THE COMMUNITY’S OVERALL AIMS 

2.1. 

The CAP and Rural Development 

Agriculture continues to be the largest user of rural land as well as a key determinant 
of the quality of the countryside and the environment. The importance and relevance 
of the CAP and rural development have increased with the recent enlargement of the 
European Union. 

Without the two pillars of the CAP, market policy and rural development, many rural 
areas of Europe would face increasing economic, social and environmental problems. 
The European Model of Agriculture reflects the multifunctional role farming plays in 
the  richness  and  diversity  of  landscapes,  food  products  and  cultural  and  natural 
heritage5. 

The guiding principles for the CAP, market and rural development policies, were set 
by the European Council in Göteborg in 2001 and confirmed in the Lisbon Strategy 
Conclusions in Thessaloniki in June 2003 – Strong economic performance must go 
hand in hand with the sustainable use of natural resources. 

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Presidency  Conclusions  European  Councils  of  Luxembourg  1997,  Berlin  1999  and  Brussels  2002, 
Agricultural Council, 14 March 2005. 

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"Strong economic performance must go hand in hand with the sustainable use of natural resources and 
levels of waste, maintaining biodiversity, preserving ecosystems and avoiding desertification. To meet 
these  challenges,  the  European  Council  agrees  that  the  Common  Agricultural  Policy  and  its  future 
development  should,  among  its  objectives,  contribute  to  achieving  sustainable  development  by 
increasing  its  emphasis  on  encouraging  healthy,  high  quality  products,  environmentally  sustainable 
production  methods,  including  organic  production,  renewable  raw  materials  and  the  protection  of 
biodiversity." 
Presidency Conclusions, European Council, Göteborg 2001 

The  reformed  CAP  and  Rural  Development  can  make  a  key  contribution  to 
competitiveness and sustainable development in the coming years. 

2.2. 

Towards Sustainable Agriculture: the 2003 and 2004 CAP Reforms 

for 

future 

framework 

The  2003  and  2004  CAP  reforms  represent  a  major  step  forward  to  improve  the 
competitiveness and sustainable development of farming activity in the EU and set 
the 
the 
reforms.  Successive 
competitiveness  of  European  agriculture  by  reducing  price  support  guarantees.  The 
introduction of decoupled  direct payments encourages  farmers to respond to market 
signals  generated  by  consumer  demand  rather  than  by  quantity  related  policy 
incentives.  The  inclusion  of  environment,  food  safety,  animal  health  and  welfare 
standards  in  cross-compliance  reinforces  consumer  confidence  and  increases  the 
environmental sustainability of farming. 

reforms  have  boosted 

2.3. 

Rural Development 2007–2013 

The  future  Rural  Development  policy  focuses  on  three  key  areas:  the  agrifood 
economy, the environment and the broader rural economy  and population. The  new 
generation  of  rural  development  strategies  and  programmes  will  be  built  around  a 
competitiveness  axis  for  agriculture,  food  and  forestry,  a  land  management-
environment axis and a quality of life/diversification axis in rural areas. 

Under the competitiveness axis a range of measures will target human and physical 
capital  in  the  agriculture,  food  and  forestry  sectors  (promoting  knowledge  transfer 
and  innovation)  and  quality  production.  The  land  management-environmental  axis 
provides  measures  to  protect  and  enhance  natural  resources,  as  well  as  preserving 
high-nature  value  farming  and  forestry  systems  and  cultural  landscapes  of  Europe’s 
rural areas. The third axis helps to develop local infrastructure and human capital in 
rural areas to improve the conditions for growth and job creation in all sectors and the 
diversification of economic activities. 

A fourth axis based on the Leader experience introduces possibilities for innovative 
governance through locally based bottom-up approaches to rural development. 

2.4.  Meeting the challenges 

Rural  areas  are  characterised  by  a  very  large  diversity  of  situations,  ranging  from 
remote rural areas suffering from depopulation and decline to peri-urban areas under 
increasing pressure from urban centres.  

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According  to  the  OECD  definition,  which  is  based  on  population  density,  rural 
regions6  represent  in  the  EU-25  92%  of  the  territory.  Furthermore,  19%  of  the 
population  live  in  predominantly  rural  regions  and  37%  live  in  significantly  rural 
regions. These regions generate 45% of Gross Value Added (GVA) in the EU-25 and 
provide  53%  of  the  employment,  but  tend  to  lag  as  regards  a  number  of  socio-
economic indicators, including Structural Indicators7, compared to non-rural areas. In 
rural areas, income per inhabitant is around a third less8, activity rates for women are 
lower,  the  service  sector  is  less  developed,  higher  education  levels  are  generally 
lower,  and  a  lower  percentage  of  households  has  access  to  ‘broadband’  internet. 
Remoteness  and  peripherality  are  major  problems  in  some  rural  regions.  These 
disadvantages  tend  to  be  even  more  significant  in  predominantly  rural  regions, 
although  the  general  picture  at  EU  level  can  vary  substantially  between  Member 
States.  Lack  of  opportunities,  contacts  and  training  infrastructure  are  a  particular 
problem for women and young people in remote rural areas. 

In EU-15 agriculture accounts for 2% of GDP, in the new Member States for 3% and 
more  than  10%  in  Romania  and  Bulgaria.  In  the  new  Member  states  three  times  as 
many people work in agriculture (12%) compared to the old member states (4%). In 
Bulgaria and Romania agricultural employment levels are considerably higher. 

The  combined  agricultural  and  food  sector  represents  an  important  part  of  the  EU 
economy accounting for 15m jobs (8.3% of total employment) and 4.4% of GDP for 
in  EU-25.  The  EU  is  the  world's  largest  producer  of  food  and  beverages,  with 
combined  production  estimated  at  €675  billion.  However,  the  sector  remains  highly 
polarised  and  fragmented  in  terms  of  size  with  significant  opportunities  and  threats 
for firms9. Forestry and related industries employ around 3.4m people with a turnover 
of €350bn, but only 60% of annual forest growth is currently exploited10. 

Agriculture and forestry represent 77% of land use in the EU-25. The environmental 
performance of agriculture in the preservation and enhancement of natural resources 
in  recent  years  has  been  mixed.  As  regards water quality, total  nitrogen surplus has 
not significantly changed since 1990 in the old Member States. Problems of ammonia 
emissions, eutrophication, soil degradation and decline in biodiversity persist in many 
areas.  However,  an  increasing  part  of  agricultural  area  is  devoted  to  organic 
production (5.4m ha for EU-25) and renewable resources (0,9m ha for EU-15). Long-
term trends in climate change will increasingly shape farming and forestry patterns. 
Protection of biodiversity has made steps forward with the implementation of Natura 
2000  –  around  12-13%  of  agricultural  and  forestry  area  has  been  designated.  High 
nature  value  farming  systems  play  an  important  role  in  preserving  biodiversity  and 
habitats  as  well  as  landscape  protection  and  soil  quality.  In  most  Member  States, 

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The OECD definition is based on the share of population living in rural communes (i.e. with less than 
150  inhabitants  per  km²)  in  a  given  NUTS  III  region.  See  Extended  Impact  Assessment  -  SEC(2004) 
931. This is the only definition of rural areas internationally recognised. However, in some cases, it does 
not fully  take into  account  the  population living  in  more  densely  populated  rural  areas,  particularly  in 
peri-urban zones. 
Statistical Annex of Spring Report to European Council - SEC(2005) 160. 
As measured by GDP at purchasing power parity. 
Source: E-Business Market Watch ICT and e-Business, DG ENTR, July 2003. 
Reporting on the implementation of the EU Forestry Strategy - COM(2005) 84,  p. 2. 

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these farming systems account for between 10% and 30% of the agricultural area11. In 
some areas the abandonment of farming could entail serious environmental risks12. 

Rural  areas  therefore  face  particular  challenges  as  regards  growth,  jobs  and 
sustainability in the coming years. But they offer real opportunities in terms of their 
potential for growth in new sectors, the provision of rural amenities and tourism, their 
attractiveness  as  a  place  to  live  and  work,  and  their  role  as  a  reservoir  of  natural 
resources and highly valued landscapes.  

The  agricultural  and  food  sectors  must  seize  the  opportunities  offered  by  new 
approaches,  technologies  and  innovation  to  meet  evolving  market  demand  both  in 
Europe and globally. Above all, investment in the key resource of human capital will 
allow rural areas and the agrifood sector to look to the future with confidence. 

On  the  occasion  of  the  relaunch  of  the  Lisbon  Strategy,  the  European  Council  has 
reaffirmed that the Lisbon Strategy is to be seen in the wider context of sustainable 
development,  that  present  needs  must  be  met  without  compromising  the  ability  of 
future generations to meet their own needs13. The new programming period provides 
a  unique  opportunity  to  refocus  support  from  the  new  rural  development  fund  on 
growth, jobs and sustainability. In this respect, it is fully in line with the Declaration 
on  the  Guiding  Principles  for  Sustainable  Development14  and  the  renewed  Lisbon 
Action  Programme15  which  seeks  to  target  resources  at  making  Europe  a  more 
attractive place to invest and work, promoting knowledge and innovation for growth 
and creating more and better jobs. 

Rural  development  policy  must  help  rural  areas  meet  these  objectives  in  the  period 
2007–2013. This requires a more strategic approach to competitiveness, job creation 
and  innovation  in  rural  areas  and  improved  governance  in  the  delivery  of 
programmes.  There  must  be  an  increased  focus  on  forward-looking  investments  in 
people,  know-how  and  capital  in  the  farm  and  forestry  sectors,  on  new  ways  of 
delivering  win-win  environmental  services  and  on  creating  more  and  better  jobs 
through  diversification,  particularly  for  women  and  young  people.  By  helping  the 
EU’s rural areas to fulfil their potential as attractive places to invest, work and live, 
rural development policy can play its part in the sustainable development of Europe’s 
territory. 

3. 

SETTING THE COMMUNITY’S PRIORITIES FOR RURAL DEVELOPMENT 2007–2013 

Within  the  framework  of  the  objectives  established  in  the  Rural  Development 
regulation,  these  guidelines  identify  priorities  for  the  Community,  aimed  at  the 
integration of major policy priorities as spelled out in the conclusions of the Lisbon 
and Göteborg European Councils. For each set of priorities, key actions are presented. 
Member States shall prepare their national rural development strategies, constituting 

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Source: IRENA project, http://webpubs.eea.eu.int/content/irena/index.htm. 
A set of lead indicators are presented in the accompanying impact assessment update - SEC(2005) 914 - 
in  the  form  of  maps  which  provide  a  picture  of  the  starting  situation  against  which  progress  can  be 
measured. 
Presidency Conclusions, Brussels European Council of 22 and 23 March 2005, paragraph 42. 
Presidency Conclusions, Brussels European Council of 16 and 17 June 2005, annex. 
Communication to the Spring European Council "Working together for growth and jobs – a new start for 
the Lisbon Strategy" - COM(2005) 24, 2.2.2005. 

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the reference framework for the preparation of rural development programmes, on the 
basis of these strategic guidelines. 

3.1. 

Improving the competitiveness of the agricultural and forestry sectors 

Guideline 

Europe’s  agriculture,  forestry  and  its  agrifood  sector  have  great  potential  to  further 
develop  high  quality  and  value  added  products  that  meet  the  diverse  and  growing 
demand of Europe’s consumers and world markets. 

The resources devoted to axis 1 should contribute to a strong and dynamic European 
agrifood sector by focusing on the priorities of knowledge transfer and innovation 
in the food chain and priority sectors for investment in physical and human capital. 

In order to meet these priorities, Member States should focus support on key actions 
such as:  

– 

– 

– 

– 

facilitating  innovation  and  access  to  R&D.  Innovation  is  increasingly 
important for Europe’s farming, agrifood and forestry sectors. While Europe’s 
large  agrifood  companies  are  often  at  the  cutting  edge  of  new  trends,  the 
introduction of new products and processes could significantly contribute to the 
performance  of  smaller  processors  and  farm  businesses.  In  particular,  new 
forms  of  cooperation  could  facilitate  access  to  R&D,  innovation  and  actions 
undertaken under the 7th Framework Programme16; 

improving integration in the agrifood chain. Europe’s food industry is one of 
the world’s most competitive and innovative, but it is facing increasing global 
competition.  There  is  considerable  scope  in  the  rural  economy  to  create  and 
market  new  products,  to  retain  more  value  in  rural  areas  through  quality 
schemes  and  to  raise  the  profile  of  European  products  overseas.  The  use  of 
advisory services and support to meet Community standards will contribute to 
this integration process. A market oriented agricultural sector will help further 
consolidate  the  position  of  Europe’s  agrifood  sector  as  a  major  employer  and 
source of economic growth; 

encouraging  the  take-up  and  diffusion  of  ICT.  The  agrifood  sector  as  a 
whole has been identified as lagging in the take-up of ICT technologies. This is 
particularly the case for smaller businesses. Adoption of e-business applications 
is still on a low level outside of large multinationals and their larger suppliers17. 
Rural  development  funds  should  complement  future  Commission  initiatives 
such  as  i2010  in  the  fields  of  e-business  (particularly  in  relation  to  SMEs),  e-
skills and e-learning18; 

fostering  dynamic  entrepreneurship.  The  recent  reforms  have  created  a 
market  oriented  environment  for  European  farming.  This  brings  new 
opportunities for farm businesses. But the realisation of this economic potential 
will depend on the development of strategic and organisational skills; 

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The  work  of  the  Standing  Committee  on  Agricultural  Research  (SCAR)  should  also  be  taken  into 
account in this context. 
Source: E-Business Market Watch ICT and e-Business, DG ENTR, July 2003. 
COM(2005) 229: “i2010 – A European Information Society for growth and employment”. 

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development  of  new  outlets  for  agricultural  and  forestry  products.  New 
outlets can offer higher value added. Support for investment and training in the 
field  of  non-food  production  under  rural  development  can  complement 
measures  taken  under  the  first  pillar  by  creating  innovative  new  outlets  for 
production or helping the development of renewable energy materials, biofuels 
and processing capacity; 

improving  the  environmental  performance  of  farms  and  forestry.  Long 
term  sustainability  will  depend  on  the  ability  to  produce  products  that 
consumers  wish  to  buy,  while  achieving  high  environmental  standards. 
Investing  in  increased  environmental  performance  can  also  lead  to  efficiency 
gains in production, creating a win-win situation; 

the  competitiveness  and  environmental  sustainability  of 

restructuring  of  the  agriculture  sector.  Rural  development  is  a  key  tool  for 
restructuring, particularly in the New Member States. Enlargement has changed 
the  agricultural  map.  Successful  agricultural  adjustment  can  be  the  key  to 
improving 
the 
agricultural  sector  and  boosting  jobs  and  growth  in  related  areas  of  the 
economy. All Member States should promote the anticipation of change within 
the  agricultural  sector  in  the  context  of  restructuring,  and  develop  a  proactive 
approach  to  training  and  retraining  of  farmers,  particularly  as  regards 
transferable skills. 

To  enhance  generational  renewal  in  agriculture  combinations  of  measures  available 
under axis 1 tailored to the needs of young farmers should be considered. 

3.2. 

Improving the environment and countryside 

Guideline 

To protect and enhance the EU’s natural resources and landscapes in rural areas, the 
resources  devoted  to  axis  2  should  contribute  to  three  EU  level  priority  areas: 
biodiversity  and  preservation  of  high  nature  value  farming  and  forestry  systems, 
water,  and  climate  change.  The  measures  available  under  axis  2  should  be  used  to 
integrate these environmental objectives and contribute to the implementation of the 
agricultural  and  forestry  Natura  2000  network,  to  the  Göteborg  commitment  to 
reverse  biodiversity  decline  by  2010,  to  the  Water  Framework  Directive  objectives 
and to the Kyoto Protocol targets for climate change mitigation. 

In order to meet these priorities, Member States should focus support on key actions 
such as: 

– 

– 

promoting  environmental  services  and  animal  friendly  farming  practices. 
European  citizens  expect  farmers  to  respect  mandatory  standards.  But  many 
also agree that farmers should  be  remunerated for signing up to commitments 
which  go  further,  delivering  services  that  the  market  will  not  provide  alone, 
particularly when focused on specific resources such as water and soil; 

preserving  the  farmed  landscape.  In  Europe,  much  of  the  valued  rural 
environment is the product of agriculture. Appropriate farming systems help to 
preserve  landscapes  and  habitats  ranging  from  wetlands  to  dry  meadows  and 
mountain  pastures.  In  many  areas,  this  is  an  important  part  of  cultural  and 
natural heritage and of the overall attractiveness of rural areas as places to live 
and work; 

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combating climate change. Agriculture and forestry are at the forefront of the 
development  of  renewable  energy  and  material  sources  for  bio-energy 
installations. The development of these energy sources must take into account 
reduction of emissions of greenhouse gases and preservation of the carbon sink 
effect of forests and organic matter in soil composition; 

consolidating  the  contribution  of  organic  farming.  Organic  farming 
represents  a  holistic  approach  to  sustainable  agriculture.  In  this  respect,  its 
contribution  to  environmental  and  animal  welfare  objectives  could  be  further 
reinforced; 

encouraging  environmental/economic  win-win  initiatives.  The  provision  of 
environmental  goods,  particularly  through  agri-environmental  measures,  can 
contribute to the identity of rural areas and their food products. They can form a 
basis for growth and jobs provided through tourism and the provision of rural 
amenities,  particularly  when  linked  to  diversification  into  tourism,  crafts, 
training or the non-food sector; 

promoting  territorial  balance.  Rural  development  programmes  can  make  a 
vital contribution to the attractiveness of rural areas. They can also help ensure 
that in a competitive, knowledge-based economy, a sustainable balance between 
urban and rural areas is maintained. In combination with other programme axes, 
land  management  measures  can  make  a  positive  contribution  to  the  spatial 
distribution of economic activity and territorial cohesion. 

3.3. 

Improving the quality of life in rural areas and encouraging diversification 

Guideline 

The resources devoted to the fields of diversification of the rural economy and quality 
of life in rural areas under axis 3 should contribute to the overarching priority of the 
creation of employment opportunities. The range of measures available under axis 3 
should  in  particular  be  used  to  promote  capacity  building,  skills  acquisition  and 
organisation  for  local  strategy  development  and  also  help  ensure  that  rural  areas 
remain  attractive  for  future  generations.  In  promoting  training,  information  and 
entrepreneurship,  the  particular  needs  of  women  and  young  people  should  be 
considered. 

In order to meet these priorities, Member States should focus support on key actions 
such as: 

– 

– 

raising  economic  activity  and  employment  rates  in  the  wider  rural 
economy. Diversification is necessary for growth, employment and sustainable 
development  in  rural  areas,  and  thereby  contributes  to  a  better  territorial 
balance, both in economic and social terms. Tourism,  crafts and the provision 
of  rural  amenities  are  growth  sectors  in  many  regions  and  offer  opportunities 
both for on-farm diversification and the development of micro-businesses in the 
broader rural economy; 

facilities 

encouraging the entry of women into the labour market. Local initiatives to 
develop  childcare 
improve  employment 
opportunities  and  facilitate  access  of  women  to  the  labour  market.  This  can 
include the development of child-care infrastructure, potentially in combination 
with  initiatives  to  encourage  the  creation  of  small  businesses  related  to  rural 
activities; 

rural  areas  can 

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developing  micro-business  and  crafts  can  build  on  traditional  skills  or  bring 
new  competencies,  particularly  when  combined  with  purchase  of  equipment, 
training  and  coaching,  helping  to  promote  entrepreneurship  and  develop  the 
economic fabric;  

training  young  people  in  traditional  rural  skills  can  tap  into  demand  for 
tourism, recreation, environmental services and quality products; 

encouraging the take-up and diffusion of ICT. Take up and diffusion of ICT 
is essential in rural areas for diversification, as well as for local development, 
the provision of local services and the promotion of e-inclusion19. Economies of 
scale can be achieved through village ICT initiatives combining IT equipment, 
networking and eSkills training through community structures. Such initiatives 
can  greatly  facilitate  IT  take-up  by  local  farms  and  rural  businesses  and  the 
adoption of eBusiness and eCommerce. Full advantage needs to be taken of the 
possibilities  afforded  by  the  internet  and  broadband  communications,  for 
example  supported  by  regional  programmes  under  the  Structural  Funds,  to 
overcome the disadvantages of location20; 
developing  the  provision  and  innovative  use  of  renewable  energy  sources 
can contribute to creating new outlets for agricultural and forestry products, the 
provision of local services and the diversification of the rural economy; 

encouraging the development of Tourism. Tourism is a major growth sector 
in many rural areas. Increased use of ITC in tourism for bookings, promotion, 
marketing,  service  design  and  recreational  activities  can  help  improve  visitor 
number  and  length  of  stays,  particularly  where  this  provides  links  to  smaller 
facilities and encourages agri-tourism; 

upgrading of local infrastructure, particularly in the New Member States. 
Significant  investment  will  be  undertaken  in  major  telecommunications, 
transport, energy and water infrastructure over the coming years. Considerable 
support  will  be  available  from  the  Structural  Funds  ranging  from  trans-
European  networks  to  the  development  of  connections  to  business  or  science 
parks. For the multiplier effect to be fully realised in terms of jobs and growth, 
small-scale local infrastructure supported within rural development programmes 
can play a vital role in connecting these major investments to local strategies for 
diversification and development of agricultural and food-sector potential. 

3.4. 

Building Local Capacity for Employment and Diversification 

Guideline 

The resources devoted to axis 4 (Leader) should contribute to the priorities of axis 1 
and  2  and  in  particular  of  axis  3,  but  also  play  an  important  role  in  the  priority  of 
improving  governance  and  mobilising  the  endogenous  development  potential  of 
rural areas. 

Support  under  the  Leader  axis  offers  the  possibility,  in  the  context  of  a  local 
development  strategy  building  on  local  needs  and  strengths,  to  combine  all  three 
objectives  –  competitiveness,  environment  and  quality  of  life/diversification. 
Integrated  approaches  involving  farmers,  foresters  and  other  rural  actors  can 

19 
20 

COM(2005) 229: "i2010 – A European Information Society for growth and employment". 
COM(2005) 24: "Working together for growth and jobs: A new start for the Lisbon Strategy", p. 29. 

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safeguard  and  enhance  local  natural  and  cultural  heritage,  raise  environmental 
awareness  and  invest  in  and  promote  specialty  products,  tourism  and  renewable 
resources and energy.  

In order to meet these priorities, Member States should focus support on key actions 
such as: 

– 

– 

– 

– 

building 
acquisition can help mobilise local potential; 

local  partnership  capacity,  animation  and  promoting  skills 

promoting private-public partnership. In particular, Leader will  continue to 
play  and  important  role  in  encouraging  innovative  approaches  to  rural 
development and bringing the private and public sectors together; 

promoting cooperation and innovation. Local initiatives such as Leader and 
support  for  diversification  can  play  an  essential  role  in  connecting  people  to 
new  ideas  and  approaches,  encouraging  innovation  and  entrepreneurship  and 
promote inclusiveness and the provision of local services. On-line communities 
can help in the dissemination of knowledge, the exchange of good practices and 
innovation in rural products and services; 

improving local governance. Leader can help foster innovative approaches to 
linking agriculture, forestry and the local economy thereby helping to diversify 
the economic base and strengthen the socio-economic tissue of rural areas. 

3.5. 

Translating priorities into programmes 

The  resources  devoted  to  the  Community  rural  development  priorities  (within  the 
regulatory  minimum  funding  limits  for  each  axis)  will  depend  on  the  specific 
situation, strengths and weaknesses of each programme area. Each of the Community 
priorities, and their contribution to Lisbon and Göteborg objectives, will need to be 
translated  into  the  Member  State  context  in  the  national  strategy  plan  and  rural 
development programmes. In many cases, there will be national or regional priorities 
for specific problems related to the agrifood sector or the environmental, climatic and 
geographical situation of agriculture and forestry. Rural areas may have to deal with 
other specific issues such as peri-urban pressure, unemployment, remoteness or low 
population density. 

Guideline 

In working out their national strategies, Member States should ensure that synergies 
between  and  within  the  axes  are  maximised  and  potential  contradictions  avoided. 
They will also wish to reflect on how to take into account other EU level strategies 
latest  Commission 
such  as 
Communication  on  Renewable  Energy22,  the  Commission’s  recent  Communication 
on  Climate  Change23  and  the  need  to  anticipate  the  likely  effects  on  farming  and 

the  Action  Plan  for  Organic  Farming21, 

the 

21 
22 
23 
24 

COM(2004) 415. 
COM(2004) 366: "The Share of renewable energy in the EU". 
COM(2004) 35: "Winning the Battle against Climate Change". 
COM(1998) 649:  "A  forestry  strategy  for  the  European  Union",  COM(2005) 84:  "Reporting  on  the 
implementation of the EU Forestry Strategy". 

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forestry, and the Commission’s report on the EU Forestry Strategy24 (which can help 
deliver on both the growth and employment and the sustainability objectives) and the 
forthcoming thematic environmental strategies25. 

Several  means  are  available  at  EU  and  Member  State  level  to  improve  governance 
and  policy  delivery.  Technical  assistance  can  be  used  to  build  up  European  and 
national networks for rural development, as a platform for exchange of best practice 
and  expertise  on  all  aspects  of  policy  design,  management  and  implementation 
between  stakeholders.  Information  and  publicity  to  ensure  early  involvement  of  the 
different actors will need to be considered in the preparation of the national strategies 
and worked out for the later stages of implementation. 

3.6. 

Complementarity between Community Instruments 

Guideline 
The synergy between structural, employment and rural development policies needs to 
be  encouraged.  In  this  context,  Member  States  should  ensure  complementarity  and 
coherence  between  actions  to  be  financed  by  the  ERDF,  Cohesion  Fund,  ESF,  EFF 
and  EAFRD  on  a  given  territory  and  in  a  given  field  of  activity.  The  main  guiding 
principles as regards the demarcation line and the coordination mechanisms between 
actions  supported  by  the  different  Funds  should  be  defined  at  the  level  of  national 
strategic reference framework/national strategy plan.  

For infrastructure investments, the scale of intervention could be a guiding principle. 
For example, for investments in transport and other infrastructure at the level of the 
Member  State  or  region/sub-region,  Cohesion  policy  instruments  would  be  used, 
while at the very local level the basic services measure under axis 3 could be used, 
ensuring the link between local and regional levels. 

As regards the development of human capital, support under rural development would 
target  farmers  and  the  economic  actors  involved  in  the  diversification  of  the  rural 
economy. The population of rural areas could receive support as part of an integrated, 
bottom-up  approach.  Actions  in  these  fields  should  be  implemented  in  full 
compliance with the  objectives of the European Employment Strategy, as set out in 
the  Integrated  Guidelines  for  Growth  and  Jobs  and  coherent  with  the  actions  taken 
under the national reform programmes in the framework of the Lisbon process. The 
Education and Training 2010 work programme seeks to achieve the education and the 
training side of the Lisbon goals. Lifelong learning is at the heart of this programme 
and  applies  to  all  levels  and  types  of  education  and  training,  including  the 
agricultural, forestry and agrifood sectors. 

4. 

THE REPORTING SYSTEM 

The  new  rural  development  regulation  foresees  strategic  monitoring  of  the 
Community  and  national  strategies.  The  basis  for  reporting  on  progress  will  be  the 

25 

Soil protection, protection and conservation of the marine environment, the sustainable use of pesticides, 
air  pollution,  urban  environment,  the  sustainable  use  of  resources,  and  waste  recycling  Decision No 
1600/2002/EC  of  the  European  Parliament  and  of  the  Council.  of 22 July  2002  laying  down  the Sixth 
Community Environment Action Programme. 

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common  framework  for  monitoring  and  evaluation  to  be  established  in  cooperation 
with the Member States. 

The  framework  will  provide  a  limited  set  of  common  indicators  and  a  common 
methodology. It will be supplemented by programme-specific indicators to reflect the 
character of each programme area.  

A common set of indicators will allow aggregation of outputs, results and impacts at 
the  EU  level  and  help  assess  progress  in  achieving  Community  priorities.  Baseline 
indicators defined at the start of the programming period will allow assessment of the 
starting situation and form the basis for the development of the programme strategy. 

Evaluation  activities  will  take  place  on  an  ongoing  basis,  comprising  at  programme 
level  ex-ante,  mid-term,  and  ex-post  evaluation  as  well  as  other  evaluation  activity 
considered useful for improving programme management and impact. These will be 
accompanied  by  thematic  studies  and  synthesis  evaluations  at  Community  level,  as 
well as by the activities of the European network for rural development as a platform 
for  exchange  and  capacity  building  for  evaluation  in  Member  States.  Exchange  of 
good practices and the sharing of evaluation results can contribute significantly to the 
effectiveness of rural development. In this respect, the European network should play 
a central role in facilitating contacts.  

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