Origins and evolution of EU regional policy

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Origins and evolution of EU regional policy
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Regional policy in the Treaties

• No title for Regional Policy in Treaty of Rome
  (1957) why? assumptions about
• responsibility of Member States for their own
  problems
• economic integration would automatically
  eliminate problems
• competition rules not to be circumvented.
• Yet, Robert Schumann The regional repercussions
  of the common market will be its true test
• Cohesion policy first set out in Single European
  Act (1986)
• Treaty on European Union (1992) names cohesion as
  one of the EUs main goals, as well as
  introducing the Cohesion Fund

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Treaty on European Union

• Article 158
• In order to promote its overall harmonious
  development, the Community shall develop and
  pursue its actions leading to the strengthening
  of its economic and social cohesion.
• In particular, the Community shall aim at
  reducing disparities between the levels of
  development of the various regions and the
  backwardness of the least favoured regions or
  islands, including rural areas.
• Article 160
• The European Regional Development Fund is
  intended to help to redress the main regional
  imbalances in the Community through participation
  in the development and structural adjustment of
  regions whose development is lagging behind and
  in the conversion of declining industrial
  regions.

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History of European Regional Policy

• 1965 First Commission Communication on Regional
  Policy conclusions of the three groups of
  experts
• 1968 creation of the Directorate-General for
  Regional Policy
• Jean Rey (1968) Regional Policy in the Community
  should be as the heart is in the human bodyand
  should aim to reanimate human life in the regions
  which have been denied it
• 1971 Council Resolutions incentives to regional
  development in CAP and co-ordination of
  financial aids (avoid risk of overbidding)
• 1972 Paris Conference of the Heads of State -
  Regional Policy as an essential factor in
  strengthening the Community

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History of European Regional Policy

• (1973) Thompson Report ...although the
  objective of continuous expansion set in the
  Treaty has been achieved, its balanced and
  harmonious nature has not been achieved
• 1975 ERDF is set up for a three-year test period
  with a budget of 1,300 million with the
  objectives of correcting regional imbalances due
  to
• predominance of agriculture
• industrial change
• structural unemployment

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First ERDF Regulation 1975

• Three actions, eligible for up to 50 of public
  expenditure, preferably to be carried out in
  national state aid areas
• investments in small enterprises creating at
  least 10 new jobs
• investments in infrastructure related to point 1,
  and
• infrastructure investments in mountainous areas,
  which had to be eligible under the agriculture
  guidance fund, too.
• Member States had to apply for ERDF support at
  project level. Decisions were then taken in a
  committee of Member States based on Commission
  proposals.

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Development of the ERDF (1)

• 1979 ERDF faces the European economic crisis
• Project-basedinfrastructures
• Analysis and policy formulation periodic report
• Assessment of the regional impact of other EC
  policies
• Coordination of national regional policies
• 1,500 million per year
• Non-quota measures (5 of total ERDF budget)
• 1984 increasing regional policy efficiency
• Programme-basedincluding support for endogenous
  development
• Community programmes STAR, VALOREN, RESIDER,
  RENAVAL
• 2,500 million per year (increase to 7.4 of EC
  budget)
• Specific Community non-quota measures up to 11
  of ERDF budget
• More regional concentration of expenditures

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Development of the ERDF (2)

• 1989 Cohesion as a political priority
• 60 billion for five years to the 3 Structural
  Funds
• Community Support Frameworks and Operational
  programs
• Doubling of budget (nearly 10 of total) for
  Community Initiatives TELEMATIQUE, PRISMA,
  ENVIREG, STRIDE, RECHAR, REGIS, REGEN,
  INTERREGand BICs
• Innovation promotion and technology transfer in
  the ERDF Regulation for the first time
• Geographical concentration Objective 1 and 2
  regions
• Open to regional and local authorities

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Development of the ERDF (3)

• 1994 additionality, partnership and subsidiarity
• - 163 billion for five years to the 3 structural
  Funds
• - Community Support Frameworks (CSFs),
  Operational Programmes (Ops) and Single
  Programming Documents (SPDs)
• - Identification of priority objectives
• - 9 for 13 Community Initiatives KONVER, RETEX,
  PYMES, URBAN
• - 1 for innovative actions for the first time

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Development of the ERDF (4)

• 1999 Efficiency
• - 195 billion for seven years to the 3
  Structural Funds
• - Plans, CSFs and OPs, SPDs, Community Initiative
  Programmes (CIP) and Programme Complement
• - 5.35 for Community Initiatives INTERREG III,
  LEADER, EQUAL and URBAN.
• - Population ceiling introduced for the objective
  2 regions
• - Transitional assistance introduced for formerly
  eligible regions
• - Fisheries and Rural Development concepts
  introduced.

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History of European Regional Policy ERDF Reforms

• 2000-2006 Period
• - Priority objectives are grouped under three
  objectives
• - Obj1 former obj1 former obj6
• - Obj2 former obj2 former obj5b
• - Obj3 former obj3 former obj4
• - Fisheries and rural Development
• - Community Initiatives
• -INTERREG III
• -LEADER
• -EQUAL
• -URBAN

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History of European Regional Policy ERDF Reforms

• 2000-2006 Period 195 billion
• - 69.7 allocated to Obj1, 11.5 to Obj2, 12.3
  to Obj3, 5.35 to Community Initiatives
• - Specific Ceilings for the rate of co-financing
• EFFICIENCY
• - ex-ante evaluation
• - mid-term evaluation
• - ex-post evaluation
• - introduction of Managing Authority

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2007 - 2013
3 objectives, Community initiatives
mainstreamed All regions eligible Budget
increase about 50 billion p.a. (ca. 36 of the
EU budget) Rural development and fisheries funds
outside cohesion policy