Communication from the Commission to the Council and to the European Parliament on the Report of the Northern Ireland task force {SEC(2008)447}
Date: 2008-04-07
Institutions: European Commission
Subjects: EU aid, EU financing, EU programme, Northern Ireland, competitiveness, cooperation policy, employment policy, peacekeeping

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 7.4.2008 
COM(2008) 186 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND TO THE 
EUROPEAN PARLIAMENT  

on the Report of the Northern Ireland Task Force  

{SEC(2008)447} 

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COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND TO THE 
EUROPEAN PARLIAMENT  

on the Report of the Northern Ireland Task Force  

1. 

Introduction 

The  consolidation  of  peace  in  Northern  Ireland  is  a  matter  first  of  all  for  the  people  of  the 
region.  But  there  is  clearly  also  an  important  European  dimension  given  that  the  people  of 
Northern Ireland are citizens of a European Union that is founded on the principles of peace, 
stability and prosperity. This is why the Commission was particularly pleased to be invited to 
support the peace process in Northern Ireland, in particular, by helping the region in its efforts 
to improve its economic competitiveness and to create sustainable employment for its people. 
The  Commission  is  particularly  encouraged  by  the  priority  that  has  now  been  attached  to 
economic development in Northern Ireland by the political leadership. 

A key moment in the peace process was the re-establishment of a devolved administration in 
Northern Ireland in May 2007 based on the sharing of power between communities that have 
been deeply divided over recent decades. This historic event means that Northern Ireland has 
the  potential  to  become  an  example  of  how  deep  political  divisions  can  be  permanently 
overcome, and how a more open, tolerant and democratic society can be created even in the 
most  difficult  of  circumstances.  It  was  also  in  May  2007  that,  in  the  course  of  a  visit  to 
Northern  Ireland,  the  President  of  the  Commission,  José  Manuel  Barroso,  announced  his 
decision  to  establish  a  Task  Force  inside  the  Commission,  under  the  authority  of 
Commissioner Danuta Hübner, in order to support the peace process, with particular emphasis 
on  how  to  generate  more  growth  and  jobs  in  line  with  the  Union's  overall  Lisbon  Strategy1 
The NITF represents, in effect, a new and closer partnership between Northern Ireland and the 
Commission services as the region's long period as major recipient of European regional aid is 
gradually phased out, and where it will increasingly rely on its own resources. 

In  the  annex  to  this  Communication,  the  report  on  the  results  of  the  work  of  the  Northern 
Ireland  Task  Force  (NITF)  is  set  out.  Overall,  the  report  confirms  that  Northern  Ireland,  in 
emerging  from  a  prolonged  period  of  conflict,  faces  many  challenges  of  a  socio-economic 
nature.  While  many  of  the  headline  economic  indicators,  for  example,  in  relation  to 
unemployment rates or GDP per head, compare very favourably today with the averages for 
the  Union,  the  region  bears  the  imprint  of  the  period  of  conflict:  a  high  dependence  on  the 
public  sector,  an  inclination  against  risk-taking  and  a  low  level  of  entrepreneurship,  the 
negative  image  of  the  region  to  international  investors,  and  a  high  proportion  of  the 
population not engaged in economic activity. At the same time, the stability which has now 
been  achieved  provides  the  opportunity  for  a  step-change  in  economic  performance.  It  is 
against this background that the NITF has been examining how the region can become more 
involved in EU policies in order to help move the economy up the value chain and to enter the 
top  league  of  innovative  regions.  As  explained  below,  in  parallel  to  the  analytical  work,  a 
number of initiatives are already underway.  

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http://ec.europa.eu/growthandjobs/pdf/integrated_guidelines_en.pdf. 

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2. 

The remit of the Northern Ireland Task Force.  

The  specific  remit  of  the  NITF  is  to  support  efforts  in  Northern  Ireland  to  improve 
competitiveness  and  create  sustainable  employment,  mobilising  the  services  of  the 
Commission most concerned with the competitiveness and sustainable employment agenda2. 
Particular importance is attached to reducing dependence on the public sector and to creating 
a more dynamic private sector. In taking this remit forward, and in preparing this report, the 
NITF  symbolises  a  new  partnership  between  the  administration  in  the  region  and  the 
Commission  as  well  as  being  an  attempt  to  stimulate  a  qualitative  change  in  the  region's 
fortunes. In operational terms, the NITF has:  

–  undertaken,  against  a  background  of  an  analysis  of  the  socio-economic  profile  of  the 
region,  a  detailed  stocktaking  of  the  achievements  of  Northern  Ireland  in  different  EU 
policies, especially over the previous planning period, 2000-2006, set where appropriate in 
a comparative context with other parts of the EU;  

–  formulated, on the basis of this stocktaking, suggestions and recommendations on how the 
administration,  the  private  sector,  universities  and  research  institutes  and  other  economic 
actors can contribute to, and benefit more from, Europe.  

The  Northern  Ireland  authorities  have  been  consulted  throughout  the  period  since  the  NITF 
was established and in the preparation of this report. The authorities in the Republic of Ireland 
have  been  closely  associated.  Key  players  in  Northern  Ireland  have  also  been  consulted 
including the local members of the European Parliament, the voluntary sector, and the social 
partners. 

3. 

Northern Ireland in the framework of EU policy 

In  the  specific  policy  areas  examined  in  detail  in  the  report,  a  general  conclusion  is  that 
Northern Ireland, although apparently less involved in EU policies than the rest of the UK and 
Ireland, has a creditable track record in general. First and foremost, the region has been able 
to draw down considerable financial support for investment under EU cohesion policy. There 
has  been  long-standing  EU  financial  support  for  Northern  Ireland  as  one  of  the  priority 
"Objective 1" regions. In the period 2000-2006, the six programmes (including the 'Building 
Sustainable  Prosperity'  and  the  PEACE  II  programme)  received  EU  aid  of  some  EUR  2.2 
billion to which was added the EU contribution to the International Fund for Ireland. One of 
the  innovative  features  of  EU  cohesion  policy  in  Northern  Ireland  has  been  the  PEACE 
programme,  first  established  in  1995,  specifically  targeted  on  support  for  joint  projects  of  a 
socio-economic  nature  with  the  view  to  assisting  peace  and  reconciliation  between  the  two 
communities. For the current planning period, 2007-2013, Northern Ireland has 6 programmes 
with  a  financial  contribution  of  EUR  1.1  billion,  including  a  continuation  of  the  PEACE 
programme.  Through  the  programmes,  the  Union  has  been  able,  and  will  continue,  to 
contribute to the improvement of the quality of life of the population.  

The  region  has  also  been  active  in  other  EU  policy  areas,  as  detailed  in  the  annex.  For 
illustrative  purposes,  certain  important  achievements  can  be  highlighted.  In  the  field  of 
enterprise  policy,  Northern  Ireland  has  been  active  in  supporting  business  and  innovation 
through its INVEST-NI agency, the Euro Info centres and the Innovation Relay Centres. The 

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DGs AGRI, EAC, EMPL, ENTR, ENV, FISH, RTD, TREN, SG together with the European Investment 
Bank 

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Belfast Innovation relay centre is regarded as one among the five best performers in the EU-
wide  network,  measured  in  terms  of  promoting  transnational  technology  transfers  having, 
with only a small team, acted as mediator for twenty-eight such transfer operations.  

In the field of research policy, under the Sixth Framework programme (2000-2006), Northern 
Ireland  was  able  to  participate  along  with  161  partners  in  146  research  contracts,  drawing 
down EUR 33.4 million from the EU budget. In the field of the environment, success stories 
include  the  action  plan  to  reduce  nitrates,  and,  in  cooperation  with  Ireland,  the  preventive 
action in the field of illegal exports of waste.  

In the field of employment and equal opportunities, given the unique experience of Northern 
Ireland,  members  of  the  region's  equality  authority  participate  in  the  steering  committee 
overseeing the Commission's study of multiple discrimination, while NGOs from the region 
participate actively in anti-discrimination networks.  

At the same time, in a forward-looking perspective, the region needs to do more to address the 
weaknesses of a socio-economic nature, and here a deeper involvement with EU policies, and 
with  the  services  of  the  Commission  represented  in  the  NITF,  are  a  source  of  support.  In 
particular, economic prosperity today, in Northern Ireland as elsewhere, is no longer based on 
the  kind  of  regional  specialisation  that  made  Northern  Ireland  one  of  the  most  dynamic 
regions  in  a  global  context  at  the  end  of  the  nineteenth  and  early  twentieth  centuries.  This 
classical economy of places has been supplanted by an economy of flows of labour, capital, 
ideas  and  knowledge  so  that,  more  than  ever,  insertion  into  national,  European  and  global 
networks has become important for economic competitiveness.  

In  raising  levels  of  competitiveness,  a  key  challenge  is  to  dynamise  the  private  sector  and 
encourage  the  formation  and  development  of  new  businesses.  While  there  has  been  much 
progress in this field in Northern Ireland, it is felt that more could be done not only to support 
start-ups, but also to help sustain competitive enterprises over time.  

Part  of  the  effort  in  this  respect  is  concerned  with  the  development  of  closer  links  between 
business  and  the  main  sources  of  innovation:  the  universities,  research  institutes  and  other 
sources of knowledge and research, not just in the region but in the wider European context. 
In addition, increasing competitiveness depends fundamentally on qualified human resources, 
including  the  development  of  the  linguistic  and  other  skills  needed  to  deepen  relations  with 
the  rest  of  Europe,  and  indeed  beyond.  While  educational  standards  in  Northern  Ireland  are 
high,  there  are  ongoing  concerns  about  the  educational  attainment  gap  between  those 
emerging with low or poor qualifications and the high performers. In the context of efforts to 
reinforce  the  knowledge  economy  in  Northern  Ireland,  it  is  clearly  important  to  exploit  the 
human  potential  of  the  region  to  the  full.  Linked  to  this  is  the  need  to  bring  a  greater 
proportion  of  the  population  into  economic  activity,  notably  by  raising  and  up-grading  the 
skills  levels,  by  promoting  risk-taking  and  enterprise  and  hence  the  creation  of  new  small 
businesses or self-employment. Together with ongoing efforts to increase participation in the 
labour  force  on  the  part  of  inactive  and  marginalised  groups,  this  would  also  improve  the 
situation in Northern Ireland with regard to social inclusion and contribute to the fight against 
poverty. 

There are also needs in more traditional fields. Among those that have been highlighted is the 
need  to  continue  the  process  of  modernisation  of  the  agri-food  sector  which  remains  an 
important activity for the future of the region. In addition, a legacy of the past is that resources 
for investment in certain infrastructures have been lower than what might otherwise have been 

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the case. This includes infrastructure for transport, and environmental infrastructure in view 
of increasing concern about the decline in the traditionally high quality of water where there 
are  needs  covering  water  and  waste  management  and  investment  in  eco-innovation  and 
environmental research.  

4. 

The work of the Northern Ireland Task Force, May 2007 – March 2008  

As indicated above, the NITF, in parallel with its analytical work, has cooperated closely with 
the authorities in Northern Ireland since May 2007 in pursuit of the growth and jobs agenda. 
First,  the  Commission  services  gave  priority  to  obtaining  rapid  decisions  on  the  new 
generation of socio-economic development programmes for 2007-2013: 

•  By  the  end  of  2007,  five  out  of  the  six  programmes  had  been  agreed:  PEACE  III,  the 
Competitiveness and Employment programme, the Northern Ireland European Social Fund 
programme, the territorial cooperation programme with Western Scotland and Ireland and 
the  rural  development  programme.  The  decision  on  the  fisheries  programme,  which  is 
organised  nationally  for  the  whole  of  the  UK,  is  expected  to  be  taken  in  the  coming 
months, assuming the programme is submitted according to the agreed timetable.  

•  The total financial allocation from the EU for the six programmes is over 1 billion euros. 
The significance of the decisions taken on the programmes is that they cleared the way for 
the payment of advances in 2007 of EUR 42 million, which will help the region to kick-
start the new round of investment.  

•  Most encouragingly, the new ERDF Competitiveness and Employment programme, which 
is the largest of the six, with EU financial support of EUR 473 million, together with the 
Social Fund programme with EU support of EUR 165 million, have been set firmly within 
the  context  of  the  Lisbon  agenda  in  the  sense  that  more  than  85%  of  the  resources  have 
been earmarked for investments directly targeting competitiveness. The Commission looks 
forward to the implementation of these important European programmes, with the prospect 
that Northern Ireland will become an example of best practice in the EU in using European 
regional policy to deliver the growth and jobs agenda.  

•  In an effort to increase the level of resources available for investment, the Commission has 
encouraged  the  authorities  to  explore  the  possibilities  for  loan-based  financial  support 
through  the  JEREMIE  and  JESSICA  initiatives  for  SME  and  urban  development, 
respectively.  Contacts  have  already  been  held  with  the  European  Investment  Bank 
(JESSICA) and the European Investment Fund (JEREMIE) to explore the possibilities. 

•  In addition, in the light of the major industrial closure (the Seagate factory), attention was 
drawn  by  the  NITF  to  the  new  European  Globalisation  Adjustment  Fund,  which  if  the 
necessary criteria are met, can help to finance the costs of retraining, etc.  

Second, the NITF has worked closely with the Northern Ireland administration in an effort to 
bring the region more firmly into EU networks: 

•  Networking with the Commission. Contacts with the Commission departments have been 
established  on  a  more  systematic  basis  and,  as  a  result,  there  is  improving  awareness  in 
Northern  Ireland  of  the  different  possibilities  offered  by  the  EU  policies  and  on  how  to 

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compete  for  support  in  different  fields.  A  number  of  actions  are  under  consideration  or 
already underway in this regard: 

–  An  early  example  was  that  of  the  call  for  tender  under  the  Union's 
transEuropean transport networks (TEN) policy where, in the past, the region 
had expressed relatively limited interest. By bidding in the framework of the UK 
proposal  for  the  TEN-Transport  programme,  2007-2013,  the  region  secured 
support for a road project with an EU grant of €10.64m. The support rate will be 
the  highest  in  the  UK  at  16%  of  total  cost,  compared  to  5%  for  other  UK  road 
sections.  

–  In the field of the knowledge economy, the possibilities offered by the Seventh 
Framework  Programme  for  the  universities,  research  centres  and  the  private 
sector represent a particular priority for the region. The Commission supports the 
authorities  in  Northern  Ireland  on  the  principle  of  concentrating  participation  in 
calls  for  proposals  in  fields  where  the  region  enjoys  particular  strengths: 
aeronautics,  nanotechnologies,  information  society,  food  quality  and  services.  In 
the  field  of  small  businesses,  the  possibilities  offered  to  enterprises  under  the 
Competitiveness  and  Innovation  Programme  have  been  highlighted,  in 
particular,  under  the  eco-innovation  initiative  and  in  the  field  of  financial 
engineering. In parallel, in the light of the important human resources dimension 
to  the  development  of  the  knowledge  economy,  attention  has  been  drawn  to 
increasing Northern Ireland's participation in the different EU education, training 
and  youth-related  initiatives.  The  record  suggest  that  more  could  be  done  to 
prepare  Northern  Ireland's  students  for 
the  ERASMUS 
programme,  which  offers  the  possibility  for  students  from  the  region  to  develop 
language  and  other  skills  through  studying  in  institutions  in  other  EU  Member 
States.  

involvement 

in 

–  In the field of the environment and energy, contacts with the Commission have 
revealed  potential  interest  in  EU  transport  and  energy  programmes  (Concerto, 
Intelligent  Energy,  Civitas)  which  could  help  to  reinforce  the  important  steps 
already taken by the region in the field of renewable energy and energy efficiency, 
while  there  is  more  scope  for  involvement  in  the  framework  of  the  sustainable 
development strategy through projects supported financially under Life+.  

–  Other actions underway include a peer learning seminar on EU employment and 
social  policy  which  is  scheduled  for  April  2008.  Preparatory  work  is  also  well 
advanced for a conference on antidiscrimination which will take place in Belfast 
in early June 2008.  

–  In addition, in the important domain for Northern Ireland of agricultural policy, 
the promotion of quality food has been identified as a priority using geographical 
denominations.  Accordingly,  applications  for  quality  food  schemes  have  been 
prepared and their submission to the Commission is imminent. 

•  EU-financed network programmes. The attention of Northern Ireland has been drawn to 
the opportunities for participation in EU network programmes. In particular, the region 
has expressed interest in taking the lead role in a network supported under the Regions for 
Economic Change initiative which is co-financed by the European Regional Development 

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Fund. This is the first time NI has put itself forward as leading player, which reflects the 
fact that NI is gaining confidence in its own capacities in an EU context.  

•  Sharing experience with other regions. Northern Ireland has been encouraged to share its 
specific  -  and  in  many  ways  unique  -  experience  in  the  field  of  conflict  resolution  with 
other regions. In this regard, a first step was taken with the organisation in October 2007 of 
a  specific  workshop  in  the  annual  regional  event  held  in  Brussels,  known  as  the  Open 
Days,  on  the  theme  of  the  PEACE  experience  in  Northern  Ireland  in  comparison  with 
experience  in  Cyprus  and  the  Western  Balkans.  As  taken  up  again  below,  there  is  much 
interest in Northern Ireland in developing this area of activity into some form of European 
institutional facility for conflict resolution.  

•  Combining  forces  with  other  regions.  As  part  of  its  integration  into  the  less  formal 
networks that characterise the EU economy, Northern Ireland has been encouraged by the 
NITF to engage, and exchange experience, with other regions on its own initiative. To start 
the  process  off,  the  NITF  organised  contacts  with  the  successful  Helsinki  Innovation 
Strategy.  

5. 

Northern Ireland and the Northern Ireland Task Force: next steps  

As  a  result  of  the  work  of  the  NITF,  as  indicated  above,  a  number  of  important  leads  have 
been identified for the region to follow-up. The Commission proposes to maintain the NITF in 
order to accompany the region in this work, and to monitor progress. As part of the effort to 
ensure  its  success,  the  exchange  of  officials,  including  for  short  periods,  is  envisaged.  The 
Northern Ireland Office in Brussels will also have an important role to play in this regard. 

The NITF will also continue to seek to raise the awareness in Northern Ireland regarding new 
European programmes, events and fora that could be of interest to the region.  

The NITF will also support the region in its declared objective of becoming more involved in 
the shaping of the EU policies. This implies a change of perspective and role, from the status 
of a region receiving EU financial assistance to that of player in the development of the EU 
policy  agenda.  Success  in  this  regard  will  depend  on  the  national  context  through  which 
consultation  on  EU  policy  is  organised,  although  the  NITF  can  help  by  ensuring  that  the 
authorities and other actors are fully informed, for example, using the Commission's office in 
Belfast.  

Finally,  as  indicated  above,  the  Northern  Ireland  authorities  have  expressed  an  interest  in 
promoting  the  development  of  a  facility  to  provide  research  and  advice  on  the  theme  of 
conflict  resolution.  The  role  of  such  a  facility,  its  organisation  and  sources  of  finance  are 
under  active  consideration  in  Northern  Ireland,  taking  account  of  the  fact  that  there  are 
already  existing  initiatives  in  this  direction  within  the  region  itself  and  in  Ireland.  The 
Commission  services  have  recognised  the  potentially  valuable  contribution  which  the 
experience  of  the  Northern  Ireland  peace  process  could  make  in  conflict  prevention, 
resolution and peace building in other parts of the world, and have responded positively to a 
request  from  the  authorities  to  examine  together  the  ways  forward.  For  example,  within  the 
context of the ongoing policy dialogue between the European Union and third countries and 
the rules that govern the current support programmes as well as in the specific context of the 
dialogue with countries such as China, Russia and Brazil on regional policy, the Commission 
will  draw  attention  to  the  specific  contribution  of  the  PEACE  programmes  to  social  and 
economic  development.  It  could  be  envisaged  that  this  would  give  rise  to  cooperation  with 

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third countries specifically on peace and reconciliation issues as promoted under the PEACE 
programmes and which could benefit from expertise gathered within Northern Ireland. 

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