Select Committee on Work and Pensions Minutes of Evidence


Supplementary note provided by the European Commission (ESF 19K)

  The annexed text gives an overview of the decisions taken by the Commission in July 1999 on the following points:

    —  The list of Objective 1 regions.

    —  The financial allocation for each Member State and Objectives 1, 2 and 3.

    —  The population ceilings for Objective 2.

"EU STRUCTURAL FUNDS: COMMISSION DECIDES FINANCIAL ALLOCATIONS"

  The European Commission today took a number of decisions to ensure a speedy implementation of the new Structural Fund programmes for the years 2000-06. In concrete terms the Commission decided on the list of Objective 1 regions. The Commission also decided on the financial allocation for each and every Member State as well as for Objectives 1, 2 and 3 and for the Fisheries Instrument outside Objective 1. In addition the Commission determined the population ceilings for Objective 2. Member States will now be asked to transmit, as soon as possible, their proposals for the areas eligible for Objective 2. Finally, the Commission settled the financial allocation for the four future Community Initiatives, setting aside EURO 4,875 million for INTERREG, EURO 700 million for URBAN, EURO 2,020 million for LEADER and EURO 2,847 million for EQUAL.

  "With today's decision the Commission made its contribution to the timely start of the new Structural Fund programmes," said Monika Wulf-Mathies, Commissioner responsible for the Regional Policy and Cohesion. "Now it's up to the Member States to do their share and prepare their development plans and programmes. The transfer of substantial amounts of assistance from Brussels over the next seven years should help many of the poorest regions to close the gap with their neighbours. Nevertheless, it should also be clear that many of them will probably get their last chance to throw off their development shackles with the help of massive European Union (EU) asisitance."

1.  The list of Objectives 1 regions

    —  Austria: Burgenland.

    —  Germany: Brandenburg, Mecklenburg-Vorpommem, Sachsen, Sachsen-Anhalt, Thuringen.

    —  Greece, Anatoliki Makedonia, Thraki, Kentriki Makedonia, Dytiki Makedonia, Thessalia, Ipeiros, Ionia Nisia, Dytiki Ellada, Sterea Ellada, Peloponnisos, Attiki, Voreio Aigaio, Notio Agaio, Kriti.

    —  Spain: Galicia, Principado de Asturias, Castilla y Leon, Castilla-La Mancha, Extremadura, Comunidad Valenciana, Andalucia, Region de Murcia, Ceuta y Melilla, Canarias.

    —  France: Guadeloupe, Martinique, Guyane, Reunion.

    —  Ireland: Border Midlands and Western.

    —  Italy: Campania, Puglia, Bastilicata, Calabria, Sicilia, Sardegna.

    —  Portugal: Norte, Centro, Alentejo, Algarve, Acores, Madeira.

    —  Finland: Ita-Suomi, Vali-Suomi (in part), Pohjois-Suomi (in part).

    —  Sweden: Norra Mellansverige (in part), Mellersta Norrland (in part), Ovre Norrland (in part).

    —  United Kingdom: South Yorkshire, West Wales and The Valleys, Cornwall and the Isles of Scilly, Merseyside.

  Those regions currently eligible under Objective 1 which are not listed above will benefit from phasing-out support.

2.  Financial allocation for each Member State and Objectives 1, 2 and 3

  The financial allocations for Objective 1 and Objective 2 have been decided on the basis of eligible population, regional and national prosperity, and the relative severity of the structural problems, especially the level of unemployment. For Objective, the allocations have been fixed according to eligible populations, the employment situation and the severity of problems, such as social exclusion, education and training levels, and participation of woman in the labour market.

  This results in the following breakdown by the Member State and Objectives (in EURO million and 1999), without taking Community Initiatives and Innovative Actions into consideration:

Structural Funds: Breakdown by Member State and Objective for the period 2000-06 (in Euro million and 1999 prices)


Member State
Objective 1
Phasing Out Objective 1
Objective 2
Phasing Out Objective 2
Objective 3
Fisheries Instrument (outside Objective 1)
Total

BE
0
625
368
65
737
34
1,829
DK
0
0
156
27
365
197
745
DE
19,229
729
2,984
526
4,581
107
28,156
GR
20,961
0
0
0
0
0
20,961
ES
37,744
352
2,553
98
2,140
200
43,087
FR
3,254
551
5,437
613
4,540
225
14,620
IE(1)
1,315
1,773
0
0
0
0
3,088
IT
21,935
187
2,145
377
3,744
96
28,484
LU
0
0
34
6
38
0
78
NL
0
123
676
119
1,686
31
2,635
AT
261
0
578
102
528
4
1,473
PT
16,124
2,905
0
0
0
0
19,029
FI
913
0
459
30
403
31
1,826
SE(1)
722
0
354
52
720
60
1,908
UK(2)
5,085
1,166
3,989
706
4,568
121
15,635
EUR15
12,7543
8,411
19,733
2,721
24,050
1,106
18,3564

(1) Including the special programme for Swedish coastal zones.

(2) Including PEACE (2000-04).

Comparison of the average annual allocation and percentage shares between the periods 1994-99 and 2000-06 by the Member State (in EURO million and 1999 prices without Community Initiatives and Innovative Actions)


Member State
Period 1994-99 Average annual
support in the EURO
million and 1999 prices
In % of the total
Period 2000-06 Average annual
support in EURO
million and 1999 prices
In % of the total

BE
293
1.2
261
1.0
DK
86
0.4
106
0.4
DE
3,338
13.8
4,022
15.3
GR
2,539
10.5
2,994
11.4
ES
5,671
23.5
6,155
23.5
FR
2,070
8.6
2,089
8.0
IE
1,021
4.2
441
1.7
IT
3,440
14.3
4,069
15.5
LU
8
0.0
11
0.0
NL
369
1.5
376
1.4
AT
228
0.9
210
0.8
PT
2,539
10.5
2,718
10.4
FI
250
1.0
262
1.0
SE
229
0.9
273
1.0
UK
2,022
8.4
2,234
8.5
EUR15
24,103
100.0
26,223
100.0



3.  The population ceilings for Objective 2

  The "new" Objective 2 will cater for all areas undergoing socio-economic change, be they industrial, rural, urban or fishery zones; all in all, the population living in Objective 2 areas will be 18% of the total EU population. As each Member State will have a say as to which region should be selected as an Objective 2 region, Member States are asked to transmit their proposals for the list of eligible areas based on the following breakdown:

Population ceiling for each Member State under Objective 2 of the Structural Funds for the period 2000-06


Member State
Population ceilings (000)
Total population as percentage

BE
1,269
12
DK
538
10
DE
10,296
13
GR
  
  
ES
8,809
22
FR
18,768
31
IE
  
  
IT
7,402
13
LU
118
28
NL
2,333
15
AT
1,995
25
PT
  
  
FI
1,582
31
SE
1,223
14
UK
13,836
24
EUR-15
68,170
18


  Compared to the current support period and taking into account objective 1, the total population coverage by country will be as follows:

Coverage of Objectives 1 and 2 (in percentage of the total population)


Member State
1994-99
2000-06

BE
31
18
DK
15
10
DE
38
30
GR
100
100
ES
84
82
FR
46
36
IE
100
37
IT
54
47
LU
43
28
NL
24
15
AT
41
28
PT
100
71
FI
53
52
SE
25
19
UK
41
32

EUR-15

50
41


4.  Background

  With today's decision the Commission is implementing the agreement of the Berlin summit on the Structural Fund part of Agenda 2000 and the subsequent regulation governing the Structural Funds which were adopted on 21 June 1999. For the period 2000-06, a budget of EURO 213 billion is available for structural operations, of which about EURO 195 billion will go to Structural Funds (European Regional Development Fund, European Social Fund, Financial Instrument for Fisheries Guidance and Guarantee Fund) and EURO 18 billion to the Cohesion Fund.

  On top of that, more the EURO 7 billion will be provided by the Structural Fund for pre-accession aid under the so-called ISPA programme for the candidate countries. The Commission will present the allocation by accession state—together with the allocation for the other pre-accession instruments PHARE and SAPARD—during the upcoming weeks.





 
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