Third Cohesion report February 2004

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1 February 2004 A new partnership for cohesion Convergence, Competitiveness and Co-operation METREX meeting S. Sebastian, Luisa Sanches DG REGIO

2 The 3rd CR structure 1. Analysis of situation and trends in the regions and factors of competitiveness Economic and social cohesion Territorial cohesion Factors determining growth and competitiveness 2. The contribution of national policies to cohesion 3. The contribution of community policies 4. The impact of Policy + document : "territorial studies". 2

3 The main facts about Territorial Territorial disparities: at several scales and types of territories The territorial disparities of the factors of competitiveness The policy framework The proposals 3

4 At European level: Territorial disparities (I) a high concentration of economic activity and population in the central area or pentagon (which stretches between North Yorkshire in England, Franche-Comté in France, Hamburg in northern Germany and Milan in the north of Italy) it covers 18% of the EU15 land area while accounting for 41% of population, 48% of GDP and 75% of expenditure on R&D 4

5 At national level: Territorial disparities (II) persistence of pronounced economic imbalances between main metropolitan areas and the rest of the country particularly accentuated in accession countries 5

6 Territorial disparities (III) At regional level: Large urban areas with increasing economic activity and population sprawl encroaching into the surrounding countryside, creating what have become known as rurban areas Rural areas isolated from towns influence experience falling population and a decline in the availability of basic services Within regions and cities persistense of pockets of poverty and social exclusion 6

7 Regions with geographical handicaps (I) the outermost regions face an accumulation of natural and geographical handicaps (as recognised in Article of the EU Treaty) and the continuation of severe social and economic problems which are difficult to tackle because of their remoteness, isolation, topological features, climate, small size of market and economic dependence on a small number of activities 7

8 Regions with geographical handicaps (II) Some islands, mountain regions and sparsely populated areas in the far north of Europe face common problems of: accessibility remoteness from major markets increased costs to develop need of a sustainable development path Whenever handicaps accumulate (larger distances to markets, archipelagic features, harsher climates) the difficulties increase. 8

9 Regions with geographical handicaps (III) The level of development is diversified but GDP tends to be below the country's average while unemployment tends to be higher Studies suggest that economic diversification in these regions tend to happen at a lower pace than in other territories Abandonment is still prevailing in many of them though some islands suffer from demographic pressure and abandonment has been reversed in successful areas. Equality of access to essencial services and knowledge, transports and new technologies are a common priority. 9

10 Factors of Competitiveness and territorial disparities Physical Infrastructures : transport endowment, energy networks Human Capital/Education and Demography Innovation RTD&Innov.(expenditures and employment) ICTs and the Internet Environmental protection Unequal distribution of competitiveness factors Lack of territorial 10

11 Territorial disparities and imbalances: : a summary core: 1/6 of the EU territory : 2/5 population: ½GDP :¾ of R&TDI expenditure Territorial Disparities and diversity of potentials at 3 levels (European, regional, infra-regional) Structure of Urban systems: still a core-periphery pattern and not enough cooperation (networking) Metropolisation, urban sprawl, diseconomies of congestion, pollution and social exclusion vis-àvis rural depopulation/desertification Areas with geographical handicaps (mountains, outermost, islands, sparsely populated) 11

12 Policy framework No Community competence but : Application within territories of a central aim of the EU: "to achieve balanced and sustainable development". Draft Constitution by adding the concept territorial cohesion amoung the shared competencies (Art III.116) stresses the need to take into account the diversity and disparities in territories to achieve sustained development 12

13 Proposals for reform Objectives and priorities: 1. Convergence supporting growth and job creation in the least developed Member states and regions: the first Priority. 2. Regional competitiveness and employment: all regions eligible (no zoning) 3. European territorial cooperation: promoting the harmonious and balanced development of the Union territory 13

14 Proposals for reform: Territorial cohesion More cohesion in an enlarged Union balanced repartition of competitiveness factors with important role of SGI : equal access, attractiveness; integrated response to territorial specificities; territorial european cooperation; coordination between regional and sectoral policies. 14

15 An integrated response to specific territorial charcteristics For regions with geographical handicaps To support and improve the role of cities as centres of economic development Integrating urban deprivation and regeneration A specific programme for outermost regions 15

16 An integrated response to specific territorial characteristics Operationalisation through adequate repartition of competitiveness factors at E.U and regional levels (polycentrism: more support to less dynamic regions?) Role of services of general interest : equal access, condition of regional attractiveness (Art 16 of Treaty) Role of cooperation and networking Role of coherence/coordination between regional and sectoral policies 16

17 URBAN AREAS Reinforcing the role of cities as motors of regional competitiveness and of balanced territorial development and tackling the internal difficulties (economic restructuring, deprivation, etc..) More coherence and synergy by fully integrating urban issues into the mainstream regional programme Ensuring that local authorities are directly involved in the design and management of programmes (partnership) Reinforcing exchanges of knowledge and networking between cities/towns through "cooperation" objective 17

18 Rural Areas A clarification/better organisation of instruments serving rural development policy : - Single rural development fund outside cohesion policy (sectoral function of R.D.) transfer of funds with a guarantee of concentration in regions covered by "convergence" objective - policy would continue to support (in its 3 objectives) the whole development and diversification of rural territories. Move away from traditional rural-urban boundaries towards linked rural and urban strategies within regional integrated programmes. 18

19 Areas depending on Fisheries As for rural development, actions in favour of restructuring the fishery sector will be grouped under a single financial heading (transfert of funds). Guarantee of concentrating transferred funds in regions covered by "convergence" objective. It will allow more clarity and more coherence in the Community instruments. 19

20 Regions with geographical Handicaps Some islands, mountain regions and sparsely populated areas in the far north of Europe face common problems (accessibility, remoteness from major markets, lack of diversification, very low population density) which intensify their development difficulties. Some areas accumulate the handicaps (larger distances to markets, archipelagic features, etc). Equal access to essential services, transports, knowledge and new technologies is a common priority The allocation of resources should take account of these 'territorial criteria' An increased co-financing rate 20

21 Objective Competitiveness/Employment (Regional Programmes) The suppression of zoning could allow more balanced actions at national level 3 targeted themes : (1) Knowledge society and innovation (2) Environment and risk prevention (3) Accessibility The accessibility theme could in particular serve territorial cohesion through: - Equitable territorial coverage of ICT investments - Strengthening secondary networks (road connection to Ts) - Ensuring access to SGI in disadvantaged urban and remote rural areas. - Possibility of using territorial criteria for allocating resources. 21

22 European Territorial Cooperation Aims : Promote an harmonious and balanced development, strengthen the enlarged EU integration, comfort the links between territories rather than only the territories themselves Building on added value of INTERREG and other Commun. initiatives. 1. Cross-Border : All NUTS III border regions (internal, external, maritime) themes of common interest: economic networking, etc.. New neighbourhood instrument and may be a new common cooperation structure. 2. Trans-national : more geographic flexibility (see needs of new M.S): to confirm or modify the 13 spaces; themes : R&D, environment (risk and water management,.) 3. Interregional : Regions will finance within regional programmes : networking, exchanges of good practices. 22

23 An overall strategic document for cohesion policy The Community Strategic Framework Documents ( ) 1) situation of economic, social and territorial cohesion (including diagnosis of territorial imbalances) 2) Political priorities of each country within S.F. more territorial cohesion more synergy with Lisbon an Gothenburg agendas better articulation with the European Employment Strategy more coherence/coordination between regional and sectoral policies. 23

24 Proposed timetable 10 and 11 : European cohesion forum, Brussels May: Conference on Territorial, Galway July 2004: Commission adopts the legislative packet End 2005: Decision by Council and European Parliament 2006: Preparation of programmes for period Jan 2007: Implementation begins 24

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