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PROVINCIAL GOVERNMENT OFBURGENLAND. GOVERNMENT PROVINCIAL THE AND GOVERNMENT FEDERAL THE AUSTRIAN THE UNION, EUROPEAN ISCO-FINANCEDTHIS BY PROJECT 11x11 11 success chapters on 11 years objective 1 in burgenland gerhard loibelsberger 11x11 11x11 11 success chapters on 11 years objective 1 in burgenland gerhard loibelsberger 04 05 investing in enterprises, infrastructure and minds to Burgenland between 2007 and 2013. These funds ensure that the success of the objective 1 programme will proceed. This book draws up a balance sheet on two funding periods The four main priorities of the future funding policy are: and 11 years of objective 1 programme in Burgenland. Based on examples one can read up how objective 1 funds have 1. Creation of competitive regional economic contributed to accomplish a far-reaching modernization of structures not only the economic structures but of the entire region in the past years. The granting of objective 1 status has initiated 2. Research, technology and innovation a tremendous process of catching up. 3. Qualification, training and education According to Statistics Austria, Burgenland has become 4. Decrease of the economic north-south disparity the province with the strongest growth in Austria. In 1995 in Burgenland there was a gross added value of about EUR 3.5 billion, in 2003 it increased to EUR 5.4 billion. In 1995 we had about With this programme Burgenland will not only be in a 2.1 million overnight stays in tourism, in 2005 the magic position to develop existing economic structures further, number of 2.5 million overnight stays was reached for the but it will also be able to go new and innovative ways. At first time. Since 1995 more than EUR 985 million, i.e. ATS the same time, this programme will see to it that the 13,5 billion, of objective 1 funds have been granted. These number of success chapters in Burgenland will constantly funds were made available jointly by the European Union, increase in the years to come. the Austrian Federal Government and the Provincial Government of Burgenland. HANS NIESSL Provincial Governor of Burgenland We have caught up tremendously in the past 11 years. Now the time has come to overtake. This is why even after 2006, after the second objective 1 funding period will have come to an end, we need further support through the European Union. Based on the phasing-out status there will be a total of EUR 158 million out of EU funding pots available 06 07 gründerzeit! Hitherto, if one spoke about Gründerzeit in Austria, one Naturally, one could argue that there are many more usually referred to the time between 1857 and 1873 during chapters of success to be found in Burgenland, since which the Danubian Monarchy went through a genuine objective 1 funding has fundamentally changed all areas economic boom. Chances are that language usage is about of society, economy and agriculture in the province. And to change and that in 30, 40 or 50 years, Gründerzeit will as many of my interview partners conveyed to me, these refer to 11 years of objective 1 funding. changes are not only of fundamental, but also of sustainable nature. The title of this book “11 x 11 – 11 success chapters on 11 years of objective 1” was chosen deliberately. The nature Consequently, I would like to wish all readers a sustainable, of the title is supposed to create associations like “success i.e. thought provoking reading pleasure! formula”, “recipe for success” or “Success 101”. After all, in the history of the 2nd Republic there is hardly another GERHARD LOIBELSBERGER Author example of such a success strategy which was planned so consistently and which was, although this is rather un- typically Austrian, fully implemented (see interviews in “Objective 1 and Politics”). 08 09 contents foreword page 4 – 9 part 1 page 10 – 31 everything you´ve always wanted to know about objective 1 part 2 page 32 – 177 interviews on 11 years of objective 1 in burgenland objective 1 and politics page 34 – 45 objective 1 and economy page 46 – 55 objective 1 and jobs page 56 – 65 objective 1 and tourism page 66 – 79 objective 1 and pleasure page 80 – 91 objective 1 and agriculture page 92 – 107 objective 1 and nature page 108 – 127 objective 1 and environment page 128 – 141 objective 1 and architecture page 142 – 153 objective 1 and change page 154 – 165 objective 1 and the future page 166 – 177 part 3 page 178 – 195 from cinderella to golden daughter – a concise economic history of burgenland objective 1 and euregio west nyugat pannónia page 188 – 191 objective 1 and regionalmanagement burgenland page 192 – 195 editorial details page 196 10 11 part 1 everything you´ve always wanted to know about objective 1 About 11 years ago, around Austria’s accession to the European Union people in our country were confronted with a new catch phrase. This new term was called objective 1. Burgenland received objective 1 status and was granted objective 1 funds. This fact did not only sound great to the people of Burgenland, it also calmed down many people in the remaining parts of Austria who were concerned that our country would not profit enough from the EU accession. Within no time objective 1 became the catch phrase in terms of economic policy in Burgenland. And there was more to it as words were followed by actions immediately. In the year 1995, with the start of objective 1 funding tremendous changes took place in Burgenland. Since then investments, construction, research and newly established businesses have emerged all over the province. Six technology centres, countless business start-ups, schools and research centres came into being and a great many jobs were created. Nature and tourism projects were supported and investments in better training of employees were made. All these efforts and many more have contributed to Burgenland’s economy being in a a very good state after 11 years of objective 1 funding. This is even more emphasised by the fact that in terms of economic policy Burgenland of today does not rank last anymore among the Austrian provinces. 12 13 revitalization castle ruin landsee interreg IIIa at-hu | funding: 70 % implementing body: regionalmanagement burgenland gmbh 22 23 There are two forms of programming documents: How are funds granted and to what extent? • In most cases they are Community Support In general objective 1 funding amounts to a maximum of Frameworks (CSF), which are subdivided into 75 % of the total costs respectively of a minimum of 50 % Operational Programmes (OP). They describe the of public spending. The maximum level of funding may social and economic framework conditions in the be increased to 80% for regions in member states which country respectively the region and they set out are supported by the cohesion fund (Greece, Spain, Ireland development priorities as well as the targets to be and Portugal). For the most remote regions and for the attained. Furthermore, they contain information on outlying Greek islands the maximum level of funding is financial management, monitoring, evaluation and 85 %. control systems. The operational programmes present the priorities in a region or in the area in need of Within the framework of objective 1 there are the following funding (e.g. traffic, education, business promotion). Structural Funds co-financing ceilings: In the framework of objective 1 Germany, Spain, Greece, Ireland, Italy, Portugal and Northern Ireland • With regards to investments in infrastructure decided to present community support generating substantial revenue, Structural Funds frameworks and operational programmes. contribution may not exceed 40% of total costs, there is a 10 % increase for those member states covered • Single Programming Documents (SPD) are used by the cohesion funds. The percentage can be within the scope of objective 1 if the programmed increased by a maximum of 10% of total costs if funds are less than EUR 1 billion. A SPD is a single other than direct assistance financing is used. document containing both the information of a community support framework as well as that of • With regards to investments in businesses the contri- an operational programme. In the SPD the priorities bution may not exceed 35 % of total costs (50 % in the of the programme, a summarized description of outermost regions and outlying Greek islands). planned measures as well as a preliminary financing In the case of investments in SMEs this percentage plan are contained. In the framework of objective 1 can be raised by a maximum of 10 % of total costs if Austria, Belgium, Finland, France, the Netherlands, financing other than direct assistance is used. the UK, as well as Sweden decided to use this option. The financial assistance For 2000 – 2006 a total of EUR 213 billion are allocated to finance structural improvements within the European Union. EUR 159 billion are designated to the Structural Funds. As the financial resources are mainly used for countries with the most urgent problems the objective 1 programme disposes of the greatest part of funds with about 70 % of Structural Funds resources (EUR 137 billion). All Structural Funds (the ERDF, the ESF, the EAGGF, Guidance Section, and the FIFG ) are involved in the financing of the objective 1 programme. fruit-trees scattered on agricultural land in the pinka-strem valley objective 1 | funding: 70 % implementing body: authority of the provincial government burgenland, dept. 4a 14 15 is objective 1 a magic word, a magic formula? Probably not. But Objective 1 is another word for solidarity in Europe. It serves as an example that richer regions support poorer regions and help them to become part of an economically flourishing Europe. What is objective 1? The terms objective 1 funding and objective 1 area derive from the fact that they have priority within the scope of Objective 1 is part of the regional policy of the European European cohesion policy (=promotion of solidarity within Union.