OFF the COAST of EUROPE European Construction and the Problem of the Islands

Home , Air Martinique, Chios (regional unit), Chios (town), Corfu (regional unit), Gaios, Lefkada (regional unit)

OFF THE COAST OF EUROPE European construction and the problem of the islands

«If you wish to go upon the sea without any risk of capsizing, then do not buy a boat, buy an island!»

Marcel PAGNOL

OFF THE COAST OF EUROPE European construction and the problem of the islands

STUDY UNDERTAKEN BY EURISLES ON THE INITIATIVE OF THE ISLANDS COMMISSION OF CPMR TABLE OF CONTENTS Off the coast of Europe

I - INSULARITY: PERMANENT AND PERVASIVE REALITIES 11 The European Union and its island territories 11 A wide diversity of island situations 14 Permanent and pervasive realities 17 Population and space, limited resources 17 More complex waste management 20 Soft water, between scarcity and pollution 22 Energy-sufficient or energy-dependent islands 24 The all-pervasive obstacle of transport 25

II - STRUCTURAL CONSTRAINTS WITH MULTIPLE CONSEQUENCES 29 GDP and unemployment: revealing, and misleading, statistics 29 The concept of the cost of insularity 33 Lower living standards 35 More costly and less developed services 36 Vulnerable and specialised economies 38

III - EXCEPTIONAL BUT FRAGILE AND RESTRICTIVE ENVIRONMENTS 43 An acknowledged environmental heritage 43 Between the land and the sea 48 The threat of natural risks 50 A unique cultural heritage 52

IV - WHEN DIFFICULTIES ACCUMULATE: 53 ARCHIPELAGOS, MOUNTAIN ISLANDS, DESERTIFIED AREAS ... Complex to manage territories 53 Frequently extreme population profiles 56

V - AT THE HEART OF EUROPE OR ON THE MARGINS? 61 Zones of peace, zones of tension 61 Transport networks: national or European? 64 Increasing population movements 65 A willingness to cooperate 68

VI - THE OUTERMOST REGIONS: A SEPARATE DIMENSION 69 Absolute remoteness 69 A totally different spatial context 70 A considerable economic dependence 73 Exceptional vulnerability to natural risks 75 VII - THE RESPONSES OF THE EU AND THEIR LIMITATIONS 77 The development of the legal framework 77 The acceptance of islands as a special case in EU Law 78 Some implications in secondary legislation 80 EU legislation on taxation 80 State regional aid 81 Agricultural and fisheries aid 82 Liberalising transport 83 The impact of the regional policy 85 What conclusions can we draw from this observation? 87

VIII - PROSPECTS FOR DEVELOPMENT 89 The future of transport 89 Tourism, a necessary, albeit destructive, evil 90 The persistent potential of fisheries and agriculture 95 Energy resources as a source of wealth 96 Research, development and new information technologies 99 Regional or local identity products and the community economy 101

IX - THE ISLANDS IN AN ENLARGED EU: INTEGRATION OR DISINTEGRATION? 103 A Community increasingly “mainland based” 103 The place of the islands in the EU’s statistical nomenclature 104 The loss of the structural policies 105 The increasing weight of EU standards 106 Heightened political vulnerability 106 A high-risk situation 107 The islands and the EU’s common foreign and security policy 109

X - WHY A POLICY FOR THE ISLANDS OF EUROPE? 111 A necessary and justified approach 111 The need for a re-examination 111 Vulnerability, a common characteristic of the islands 113 Principles of an islands policy 116 Goals of an islands policy 117

XI – REDESIGNING THE COMMUNITY INTERVENTION MECHANISMS 121 A new deal between the EU and its islands 121 The need for EU law to evolve 122 Differentiating the islands in the statistical nomenclature 123 Maintaining the solidarity effort in the structural policies 124 Reshaping the State aids system 126 New forms of governance 127

WHAT SCENARIOS FOR THE ISLANDS OF EUROPE? 129 Negative scenario: “Islands adrift” ? 131 Ideal scenario: “The Fortunate Islands” ? 137

BIBLIOGRAPHY 143

GLOSSARY 145 The CPMR and its “Islands Commission”

The Conference of the Peripheral and Maritime Regions (CPMR), as its name indicates, defends the collective interests of the regions of Europe’s maritime periphery. Set up in 1973 in Saint-Malo, it is now one of the main European inter-regional organisations with almost 150 member regions. Finan- ced by its members, the CPMR is governed by its General Assembly and by an elected Political Bureau and President. Its action, coordinated by a Secretariat General, is organised in a decentralised manner via 7 Geographic Commissions (Baltic, North Sea, Mediterranean, Balkans, Black Sea, Atlantic and Islands).

Set up in 1981, the “Islands Commission” is the oldest of these Commissions. It currently brings together 25 island regional authorities (of which 4 do not belong to the EU), representing over 13 million European citizens. It has its own structure (President, Political Bureau, Secretariat, etc.). Its objectives are to make the EU Institutions, the Member States, and the public at large aware of the problems of the islands of Europe, and to promote inter-island cooperation. It works in close cooperation with the elected island representative of the European Parliament or of the Committee of the Regions, and takes an active part in the discussions of the Economic and Social Committee of the EU.

CPMR ISLANDS COMMISSION http://www.crpm.org FOREWORD BY THE PRESIDENT Off the coast of Europe

That the representatives of territories as diverse and as far from each other as the islands of the European Union, or of the enlargement countries, feel it appropriate to come together, compare their destiny and reflect on their future, still surprises some people. Surely the island regions, scattered as they are from the Baltic to the Mediterranean, from the Antilles to the Indian Ocean, are an extremely diverse set of territories? Do not the differences in their situations, whether in terms of population, surface area, distance from the mainland, climate, economy, language and culture, access to natural resources, and many other fields, render any comparison between them fallacious? It would be just as valid to argue that a Treaty or set of Institutions treating Luxembourg and Germany on an equal footing or regarding a territory stretching from Sweden to Greece as a “single space” was illusory. The collective initiative of the islands is, therefore, neither more nor less illegitimate than the process of European construction, which, moreover, gave birth to it; and, when all is said and done, the obvious differences that separate these regions are less important than their consciousness of constituting communities with similar problems. At a time when the European Union is preparing for enlargement, and when, given the geographic origin of most of the candidate countries, it is tending towards greater “continentalisation” of its territory, it is worth recalling the existence – and the specific problems– of this “Europe of the seas”.

Jean BAGGIONI President of the Islands Commission of the CPMR 9

INSULARITY permanent and pervasive realities « « Follavoine:“ some land surrounded by water ! Don’t you know what it is ?” Rose:“ widening her eyes – Some land surrounded by water ?” Follavoine:e: “Yes ! Some land surrounded by water, how do you call that ?” Rose: “Mud ?” Follavoine, shrugging his shoulders: “No, not mud ! When there is little land and little water, it is mud, but when there is a lot of land and a lot of water, it is called islands!” »

Georges FEYDEAU

ore than 13.5 million islanders live in the EU Islands, whose overall land mass is about 3.4% of the Community’s surface. These Island territories offer the EU an economic and geopoli- Mtical presence in nearly all the World’s Oceans, and an active border with many continents. Islands – like Member States - are diverse, but through their insular characteristic they share very specific social, economic, and environmental problems.

The European Union and its island territories

f we exclude islands con- land. Roughly 13 million of these the European coast. The popu- taining the capital city of a live in an island regional author- lation of these islands is modest Istate (which currently con- ity (of which EU 15 has 21), the or low, sometimes even insignifi- cerns only Ireland), almost 13.5 rest living in one of the hundreds cant, compared to that of the million EU citizens live on an is- of coastal islands dotted around Member States. Only in Greece

% ISLAND REGIONS POPULA TION WITHIN THEIR NA TIONAL ST ATE (%) 13

12 11,6 11,7 With more than 11% of their respective national population, © Eurisles 11 the inhabitants of the Greek and Italian Islands represent together more than half of Europe’s islanders. The demographic weight of island regions populations remains substantial is 10 Sardegna Spain, in Portugal or even in Malta. It is more modest in France Sicilia 9 and in Estonia, and marginal in the various countries of North- Ionia Nisia ern Europe. Kriti Gozo Notio Aigaio 8 Vorio Aigaio 7,6

7 6,1 6 SharePoids desof EUinsulaires islanders UE dans within leur pays their country Illes Balears SharePoids desof islandersinsulaires dans in l'EuropeEU15 des 15 5,0 Hiiumaa 5 Canarias Açores Saaremaa SharePoids desof non-EUinsulaires non-UE islanders dans withinleur pays their country 4 Madeira 3,5 3,5 2,9 3 Isle of Wight Corse Orkney Guadeloupe 2 Shetland Martinique Bornholm Western Isles Åland Gotland Réunion 0,8 1 0,5 0,6 0,3 0 11 UK FI SE DK FR PT ES GR IT EUR 15 EE MT Off the coast of Europe

and in Italy does their popula- ISLAND DEFINITION tion come close to 12% of the national population. In Spain EUROPEAN UNION (EUR OSTAT «POR TRAIT OF THE ISLANDS») (6%), Portugal (5%) and France An island is a territory surrounded by water: (under 3%), the islands are of 1. inhabited by more than 50 permanent people, 2. not linked to the mainland by a permanent device (bridge, tunel...), much less importance. They are 3. distant by at least 1 Km from the mainland, marginal (less than 1% of the 4. with no capital of an EU member state population) in Denmark, Finland, UNITED NA TIONS CONVENTION ON THE LA W OF THE SEA Sweden, Germany, Ireland, the Netherlands and the UK. Glo- PART VIII ; Regime of islands diction of the coastal State and the rights and Article121 freedoms of other States are governed by the bally, the inhabitants of all these 1. An island is a naturally formed area of land, relevant provisions of this Convention. islands account for some 3.5% surrounded by water, which is above water Article 56 Rights, jurisdiction and duties of at high tide. the coastal State in the exclusive economic of the total population of the 2. Except as provided for in paragraph 3, the zone Union. territorial sea, the contiguous zone, the ex- 1. In the exclusive economic zone, the coastal clusive economic zone and the continental State has: shelf of an island are determined in accord- (a) sovereign rights for the purpose of explor- Furthermore, a little over a mil- ance with the provisions of this Convention ing and exploiting, conserving and managing lion citizens of European States applicable to other land territory. the natural resources, whether living or non- live in an island region or a small 3. Rocks which cannot sustain human habi- living, of the waters superjacent to the seabed tation or economic life of their own shall have and of the seabed and its subsoil, and with island but do not belong to the no exclusive economic zone or continental regard to other activities for the economic EU. Some 800,000 live in the shelf. exploitation and exploration of the zone, such SECTION 2. Limits of the territorial sea as the production of energy from the water, French Overseas Territories in the Article 3 Breadth of the territorial sea currents and winds; Pacific or Atlantic (although these Every State has the right to establish the (b) jurisdiction as provided for in the relevant are associated Territories), and breadth of its territorial sea up to a limit not provisions of this Convention with regard to: exceeding 12 nautical miles , measured (i) the establishment and use of artificial is- the others live in islands or States from baselines determined in accordance with lands, installations and structures; which chose not to join or have this Convention. (ii) marine scientific research; not yet done so. SECTION 4. Contiguous zone (iii) the protection and preservation of the Article 33 marine environment; 1. In a zone contiguous to its territorial sea, (c) other rights and duties provided for in this The importance of the islands for described as the contiguous zone, the coastal Convention. State may exercise the control necessary to: 2. In exercising its rights and performing its the EU is also measured in terms (a) prevent infringement of its customs, fis- duties under this Convention in the exclusive of space. While their surface area cal, immigration or sanitary laws and regu- economic zone, the coastal State shall have is modest (3.4% of that of the lations within its territory or territorial sea; due regard to the rights and duties of other (b) punish infringement of the above laws and States and shall act in a manner compatible Union), they play an important regulations committed within its territory or with the provisions of this Convention. role on the maritime front, be- territorial sea. 3. The rights set out in this article with re- cause it is thanks to their vari- 2. The contiguous zone may not extend be- spect to the seabed and subsoil shall be exer- yond 24 nautical miles from the baselines cised in accordance with Part VI. ous island territories that several from which the breadth of the territorial sea Article 57 Breadth of the exclusive economic Member States have extensive is measured. zone The exclusive economic zone shall not extend economic exclusive zones. PART V Exclusive economic zone Article 55 Specific legal regime of the exclu- beyond 200 nautical miles from the base- sive economic zone lines from which the breadth of the territorial While not all of these zones have The exclusive economic zone is an area be- sea is measured. yond and adjacent to the territorial sea, sub- been exploited, or seem to be ject to the specific legal regime established in immediately exploitable, some this Part, under which the rights and juris-

THE EXCLUSIVE ECONOMIC ZONE OF POR TUGAL: 1.6 MILLION KM

Portugal’s EEZ is one of the largest in Europe at almost 1.6 million Km², i.e. almost 18 times the surface area of the mainland. The two autonomous island regions represent the lion’s share of the EEZ. 12

© Eurisles Permanent and pervasive realities make a significant contribution to INSULARITY AND SIZE the EU. For example, without the The manner in which certain national or ever, authorises Member States to grant Orkneys and Shetland, a not in- EU legislative texts provide for specific exceptions to “vehicles operating exclu- significant part of the oil or fish- provisions for the islands is sometimes linked sively on islands not exceeding 2,300 to the application of a number of thresh- square kilometres in areas which are not eries resources of the North Sea olds. The nature of these thresholds and linked to the rest of the national territory would belong to a third country their definition (where specified) vary widely, by a bridge, ford or tunnel open for use (Norway). These archipelagos ranging from size of population, surface by motor vehicles.” area, volume of waste, etc. The following Environment have therefore made an invalu- are some examples. Article 6.5 of European Parliament and able contribution to the Commu- Agriculture Council Directive 94/62/EC of 20 Decem- Council Regulation (EC) No. 2019/93 “in- ber 1994 on packaging and packaging waste nity’s food, energy, and therefore troducing specific measures for the smaller (O.J. No. L 365 of 31/12/1994) grants Greece commercial, balance out of all Aegean islands concerning certain agri- certain exceptions in the implementation proportion to their roughly cultural products” defines a smaller is- of this legislation because of “the large land as being an island the permanent number of small islands” Article 6.5). 40,000 inhabitants. population of which does not exceed Article 3.4.a) of Council Directive 100,000 inhabitants . 1999/31/EC of 26 April 1999 on the landfill Similarly, the geographic location Taxation of waste (O.J. No. L 182 of 16/07/1999) In the Conclusions of the ECOFIN Council provides for the granting of an exception of the islands in warm seas which Meeting held on 1 December 1997 con- to “landfill sites for non-hazardous or enjoy sunny climates, together cerning taxation policy (O.J. No. C 002 of inert wastes with a total capacity not 06/01/1998, it is specified that “The Council exceeding 15,000 tonnes or with an with the beauty of these territo- also emphasizes the need to evaluate care- annual intake not exceeding 1,000 tonnes ries, have made them popular fully in that assessment the effects that serving islands , where this is the only holiday destinations. A large the tax measures have on other Member landfill on the island and where this is ex- States, inter alia in the light of how the clusively destined for the disposal of waste proportion of tourists in the EU activities concerned are effectively taxed generated on that island. Once the total travel to its island destinations, throughout the Community. Insofar as the capacity of that landfill has been used, essentially in the Mediterranean, tax measures are used to support the eco- any new landfill site established on the nomic development of particular regions, island shall comply with the requirements and in the outermost regions (the an assessment will be made of whether of this Directive”. tropical climate of these latter the measures are in proportion to, and This very low volume of waste means that targeted at, the aims sought. In assess- this measure concerns very small islands territories means that the tourist ing this, particular attention will be paid only. season lasts all year long). to special features and constraints in the State aid systems case of the outermost regions and small In some cases, insularity has the effect islands , without undermining the integ- of offering an exemption from certain thresh- To give an example, the Canary rity and coherence of the Community le- olds. Islands and the Balearic Islands gal order, including the internal market The “guidelines for State regional aid” account for over one third of ho- and common policies (point G).” (Official Journal No. C 074 of 10/03/1998) However, the Council does not specify what for example requires that, in order to de- tel beds in Spain and for 21% of it means by “small islands”. fine the areas liable to benefit from the the stays in the peninsula, the As an example of practical application, the exceptions provided for pursuant to Arti- Greek tax system provides for tax reduc- cle 87.3 c) of the Treaty, such areas con- second largest tourist destination tions for legal persons or associations which stitute individual regions or compact zones in the world, after France. undertake activities in small islands with with at least 100,000 inhabitants. If their a population of less than 3,100 inhabit- population is less than this threshold, the ants. This measure will apply until 2006. Commission nevertheless counts a mini- Transport mum fictitious figure of 100,000 inhabit- Council Regulation (EEC) No 3820/85 of ants. However “islands and other regions 20 December 1985 on the harmonization which suffer from similar topographic iso- of certain social legislation relating to road lation” are exempt from this minimum transport (O.J. No. L 370 of 31/12/1985) threshold (point 3.10.3). lays down the composition of the crews, driving periods, etc. Article 13.h), how-

13 Off the coast of Europe

A wide diversity of island situations

t seems like stating the ob- Shortest distance C vious to say that the islands between the O of the EU present a wide var- island or the U Nearest country or continent I The island regions of archipelago and iety of situations, whether as re- N the EU the nearest T gards surface area, population mainland R size or isolation. However, the Y (Km) Name apparent figures merit some spe- (estimates) cial attention. Isle of Wight UK < 5 Great Britain (island connected by a tunnel to the continent) Ionia Nisia GR < 5 Greece Notio Aigaio GR < 5 Turkey While it is true that, by calculat- Vorio Aigaio GR < 5 Turkey ing the isolation of each island Sicilia I 6 Italy Orkney UK 10 Great Britain (island connected by a tunnel to the continent) on the basis of the shortest dis- Western Isles UK 25 Great Britain (island connected by a tunnel to the continent) tance, as the crow flies, between Bornholm DK 36 Sweden its coasts and those of the clos- Åland FIN 40 Sweden Gotland S 70 Sweden (Oland island connected by a bridge to mainland) est mainland, minimum dis- Illes Balears E 85 Spain tances are obtained, but this ap- Corse F 90 Italy proach also highlights the highly Canarias E 100 Africa (Morocco) Kriti GR 100 Greece specific geographic positioning of Shetland UK 130 Great Britain (island connected by a tunnel to the continent) a number of these regions. In no Sardegna I 185 Italy less than some ten cases, the Martinique F 410 America (Venezuela) Guadeloupe F 560 America (Venezuela) nearest mainland territory to the Madeira P 650 Africa (Morocco) capital of an island region is not Réunion F 1 200 Africa (Mozambique) that of its own State, but that of Açores P 1 300 Portugal another Member State, or even of Greece has only four island regions, the other islands being administratively attached to mainland regions Source : Eurisles

POPULATION DIVERSITY a third country or even of another SIZE DIVERSITY

continent. Surface Population Density EEZ The island regions of The island regions of area (1000) (hab/km²) the EU the EU (Km²) (km²) 1999 1999 However, in practice, the most evaluation Orkney 20 21 commonly used transport routes Isle of Wight 380 : Shetland 23 16 in an island are rarely those Bornholm 588 : Åland 26 17 Madeira 797 850 000 Western Isles 28 10 which connect it to the nearest Orkney 956 : Bornholm 45 77 territory, which can, moreover, be Martinique 1 100 150 000 Gotland 57 18 a desert, a mountain barrier… or Shetland 1 468 : Isle of Wight 128 337 Åland 1 526 : Vorio Aigaio 183 48 another island! The effective dis- Guadeloupe 1 705 171 000 Ionia Nisia 202 88 tances are those, often much Ionia Nisia 2 307 : Açores 245 105 longer, which offer the island ac- Açores 2 333 958 000 Madeira 253 317 cess to the economic, political or Réunion 2 507 312 000 Corse 260 30 administrative centres on which Western Isles 2 898 : Notio Aigaio 271 51 Gotland 3 140 : Martinique 381 346 it depends (generally, the major Vorio Aigaio 3 836 : Guadeloupe 422 248 ports or major urban areas of the Illes Balears 4 974 : Kriti 563 68 mainland). The differential can Notio Aigaio 5 286 : Réunion 706 282 Canarias 7 447 650 000 Illes Balears 822 165 be very great. Kriti 8 336 : Sardegna 1 652 69 Corse 8 681 : Canarias 1 673 225 For example, one of the main Sardegna 24 090 : Sicilia 5 098 198 Sicilia 25 708 : AVERAGE of EU : 116 shipping routes used by the AVERAGE of EU 16 885 : South Aegean (Notio Aigaio) TOTAL of EU islands 13 058 215 Islands as % of EU 3.40% : 14 region, Rhodes – Athens, Source : Eurisles, EUROSTAT, regional statistics Source : Eurisles, EUROSTAT, regional statistics offices offices Permanent and pervasive realities corresponds to a crossing of DIVERSITY OF THE ECONOMY 560 km, although the island is a (ordered by unemployment rate) only some twenty kilometres C GDP per capita Unemployment O PPS rate from Turkey with which it has U The island regions of N very little trade. Bornholm, which the EU (EUR15 =100) % T is a mere 36 km from Sweden, is R 150 km from Copenhagen —its Y 1999 1999 capital — with which the island Åland FIN 138 2.1 maintains its most important Shetland UK 114 2.6 Madeira P 72 3.4 trading links. This also applies Açores P 53 3.7 to Corsica, which, while it is Orkney UK 82 4.5 Isle of Wight UK 73 4.8 closer to Italy than to France Gotland S 90 5 (Bastia –Livorno 110 km), Gozo MT nd 5.3 conducts most of its trade with Ionia Nisia GR 60 5.5 Kriti GR 68 7.3 the port of Marseilles (360 km Notio Aigaio GR 80 7.3 away). Illes Balears E 101 8 Bornholm DK 97 9.7 Western Isles UK 75 9.9 An extreme example is that of the Hiiumaa EE nd 10.9 French Antilles which lie close to Vorio Aigaio GR 64 11.3 the small islands of Dominica, Corse F 81 14.3 Canarias E 81 14.4 Saint Lucia or Montserrat but lie Saaremaa EE nd 16.3 500km from the closest coasts of Sardegna I 79 21.9 Venezuela, 800km from Caracas Sicilia I 66 24.8 Martinique F 64 29.2 and, more importantly, over Guadeloupe F 56 30.7 7,000km from mainland France Réunion F 51 33.1 with which the lion’s share of EU 15 EU 100 9.4 Year 1998 their trade takes place. Source : Eurisles, EUROSTAT, regional statistics offices

DIVERSITY OF THE ECONOMIC STRUCTURES A brief glance at the socio-econ- (ordered by Share of tertiary sector in employment) C omic indicators of the island re- Share of Share of Share of O primary secondary tertiary gions shows that, while there is U STATE or island sector in sector in sector in no absolute rule applicable to all N region employment employment employment these regions, certain trends can, T R % % % nevertheless, be observed. Y 1999 1999 1999 Orkney UK 27 20 53 Of all the island regions of the EU Saaremaa EE 14 33 53 Kriti GR 33 13 54 and of the enlargement countries, Madeira P 14 32 54 only three have a GDP per head Hiiumaa EE 18 26 56 equal to or greater than the EU15 Açores P 18 24 58 average. Moreover, the perti- Ionia Nisia GR 25 16 59 Vorio Aigaio GR 18 20 62 nence of this indicator for two of Shetland UK 18 20 62 them (Åland and Shetland), Sardegna I 11 23 66 whose population is less than Western Isles UK 15 19 66 Sicilia I 9.5 21.4 68.8 30,000 inhabitants, is question- Notio Aigaio GR 8 23 69 able. Åland FIN 8.8 21.3 69.9 Gozo MT 6 24 70 As regards unemployment, al- Bornholm DK 8 21 71 Gotland S 8 21 71 most half the islands have unem- Isle of Wight UK 2 26 72 ployment rates higher, some- Canarias E 7 21 72 times much higher, than the EU Illes Balears E 2.5 25 72.5 Guadeloupe F 6.5 16.7 76.8 average. Martinique F 6.6 15.1 78.3 Corse F 5.7 15.6 78.7 The fragility of the island econ- Réunion F 5 14.6 80.4 omies is shown in their high de- AVERAGE of EU EU 4.3 28.9 66.5 Year 1996 15 gree of dependency on certain Source : Eurisles, EUROSTAT, regional statistics offices Off the coast of Europe

ISLANDS UNDER THE SOVEREINGTY OF A EUROPEAN MEMBER STATE BUT NOT EU MEMBERS

Shortest distance C between the O Surface island or the Nearest country or U EEZ Population Density area archipelago and continent STATE or island region N the nearest T mainland R (Km²) (km²) (1000) (hab/km²) (Km) Name Y (estimates) 1999 1999 (estimates) Geographically European islands (but not EU members*) Feroe DK 1 399 : 42 30 335 Great Britain Hiiumaa EE 1 023 : 11 11 22 Estonia Saaremaa EE 2 922 : 40 14 7 Estonia Gozo MT 66 : 29 439 250 Italy Guernesey UK 78 : 65 833 45 France Isle of Man UK 588 : 75 128 30 Great Britain Jersey UK 116 : 90 776 20 France Total ou Moyenne 6 192 : 352 56.8 : : Geographically non european islands (but not EU members* : associated territories) Groenland DK 2 176 000 : 59 0.03 1 000 North America Polynésie française F 4 200 5 030 000 235 56 5 800 South America Nouvelle-Calédonie F 18 575 1 740 000 214 12 800 Australia Mayotte F 374 : 130 348 500 Africa Wallis-et-Futuna F 211 300 000 15 71 3 200 Australia St-Pierre-et-Miquelon F 242 : 7 29 25 North America Kerguelen, Crozet, F 7 391 : 0 0 1 800 Antarctica Amsterdam, St Paul Antilles néerlandaises NL 1 020 215 000 217 213 60 South America Aruba NL 181 : 71 392 24 South America Iles Cayman UK 260 124 000 34 131 500 North America Iles Turks et Caicos UK 430 342 000 15 35 875 North America Iles Vierges britanniques UK 150 288 000 14 93 800 South America Montserrat UK 124 34 000 12 97 650 South America Anguilla UK 74 17 000 9 122 810 South America Ste Hélène UK 122 445 000 6 49 1 920 Africa Iles Falkland UK 12 173 : 3 0 800 South America Georgie du Sud et Iles UK 4 066 : 0.5 0 1 600 Antarctica Sandwich du Sud Territoires britanniques de UK 60 : 0 0 1 750 Asia l'Océan Indien Pitcairn UK 47 970 000 0 0 4 600 South America Clipperton UK 0.0 600 000 0 0 1 300 South America Ascension UK 97 445 000 1.5 15 1 700 Africa Bermudes UK 53 422 000 63 1 189 917 North America Tristan da Cunha UK 98 514 000 0.3 3 2 800 South America Total or Average : 2 225 948 11 486 000 1 106 0.50 1 488 : Year 1996 Source : Eurisles, EUROSTAT, regional statistics offices * regions belonging to Member States or future Member States but not in the EU

activities or certain sectors. In 19 times higher. On the other hand, gions, the share of the tertiary out of 21, the importance of ag- with the exception of Madera and sector exceeds the EU average, riculture and fisheries means that Saaremaa island regions score a obviously on account of the im- the share of the primary sector lower employment rate than the pact of tourism or non-commer- is higher than the EU average, EU average in the secondary sec- cial activities. sometimes as much as 6 or 7 tor. Finally, in over half the re-

16 Permanent and pervasive realities

Permanent and pervasive realities

iving on an island means truth, however, leads to a very enon is a constant thread run- living on a territory con- simple first level of reasoning. ning through the economic his- Lstantly cut off by the sea, Because of its endemism to the tory of all the island economies. with limited possibilities in terms islands, smallness implies rarity . of space, natural or human re- Rarity and openness to the out- sources, or the size of the mar- While this rarity manifests itself side are factors which lead to a ket. in various ways, it is measured high degree of dependence , due mainly by the scarcity and pau- to a virtual single-product export These different factors can vary city of resources (raw materials, activity and a high level of im- significantly in nature or inten- infrastructures, human potenti- ports. This dependence, which sity from one island to another, alities, etc.). In order to manage is due to the weakness of the but they nevertheless constitute these rare resources, the island domestic economy and the domi- permanent and ubiquitous reali- economies adopt a specific man- nant role of external trade, is sig- ties. agement system. This is based nificantly aggravated if, in addi- on the need to have access to a tion, the island is remote and One fact which always holds true major network of trade with the located far from its markets. is that islands are smaller that outside. From colonialism to to- the mainland. This primary day’s trade deficits, this phenom-

Population and space: limited resources

he limited nature of the these communities are in terms A study carried out in 1992 by the INSEE on natural or human re- of space or population. natives of the French Overseas Departments residing in mainland France showed that 44 % Tsources constitutes a of those surveyed envisaged returning home determining factor of insular- To understand the relationship to live following their retirement. However, this return traffic remains difficult to quantify. Of ity. We will give a few exam- between man and space on an 224,000 natives of the Antilles and Guyane liv- ples. island, it is necessary to look ing in mainland France in 1990 (175,200 of beyond the most obvious sta- whom came from Martinique) between 8,000 and 20,000 were likely to emigrate to the Anti- It is common in Euro-speak to tistics. The available space is lles at the beginning of the 2000’s. refer to Europe as a “Single not necessarily the actual sur- space of 380 million citizens”, face area, because areas which concentration of economic ac- omitting to mention that this cannot be used, whether on tivities on the coast, encroach- refers implicitly to the Mainland. account of their terrain (moun- ing on agricultural activities. For islanders, this is more of an tain islands, where part of the abstract concept than a reality, territory is virtually unusable), The change from a mixed food because “the single space” with or environmental constraints production system – which used which they are irremediably (protected areas, land on which to be of the essence owing to confronted on a daily basis is it is prohibited to build) must the characteristics of the island first and foremost that of their also be taken into account. economy – to specialised, in- own island. tensive and speculative, agricul- Factors such as limitations of ture reflects new trends accom- If one looks individually at each space, population ageing and panied by classic phenomena island (rather than each island population density must be of depression: sharp drop in region), one can see how small associated with the gradual active agricultural population, 17 Off the coast of Europe

fallow, collapse of terraces, side. Moreover, the decline in abandonment of rural habitat, traditional agriculture, referred etc. In the islands, normal ag- to above, which tied people to DISTRIBUTION OF ISLAND REGION ricultural development is hin- the land, is significant and goes POPULATION dered by a number of obstacles, a long way to explaining inter- DENSITY (HAB ./KM²) such as lack of large plains, restricting land structures linked Owing to size variations between to the large number of small the islands, and variations in the break-up of population density plots and problems of joint areas, it is difficult to draw a precise comparison between the vari- ownership or tenancy, small ous regions. The concentration farms without investment re- of populations along the coasts is only obvious when the towns and sources, frequently limited wa- villages are small and numerous. ter resources, declining numbers It is difficult, for example, to compare the Isle of Wight, made up ISLE OF WIGHT of trained farming personnel, as it is of a few districts, with Cor- sica, which is 20 times larger and small local markets ... and, es- broken up into 360 municipalities. pecially, the attraction of the Having said that, the density maps of the Isle of Wight, the Bal- coast. earic Islands and Corsica, based on the same scale, give an estimate of the density on each is- The coastal space is the most land, and highlight “desertified” ILLES B ALEARS areas comprising, in the case of coveted geographic sector on both Corsica and the Balearic Is- most islands. The phenomenon lands, areas of rough terrain. is amplified in those regions, where the coastline is propor- nal population movements from tionally longer than in any the interior to the coastal towns. mainland region with a seafront. The appeal of urban life for rural To give an example, the Greek populations is a phenomenon islands alone represent some of society closely linked to the 7,700 kilometres of coast out of phenomenon of «littoralisation». a total Greek coastline of 15,000 Moreover, in most cases the km and a total Mediterranean town chosen is a conglomera- coastline of 46,000 km (1998 tion stretching along the coast, Blue Plan). In this context, the offering services and open to the rapid urbanisation of the coast outside. constitutes an extremely serious threat. In Corsica, for ex- The development of tourism also ample, where just over 30% of frequently generates urbanisa- the coast is currently urbanised, tion. Apart from “roaming” >110 28% of these newly urbanised tourism (hiking, pleasure crafts) [30-110[ areas were previously agricul- and camping, the need to house [10-30[ tural lands, and 62% en- tourists in hotels, holiday vil- <10 croached on natural zones. lages or secondary residences, leisure parks, marinas, etc. is This increased urbanisation of reflected in constructions on the the coast springs from several outskirts of coastal towns. In causes. The terrain of the is- this race to occupy the space, CORSE lands, even those not of volcanic in particular the coastal space, origin, is frequently mountain- tourism undeniably plays a ous with few plains. This situ- major role. Such pressure on ation leads to a concentration the space calls for a very strict of human population on the spatial planning designed to coast, where it is easier to set- avoid the urbanisation of the 18 tle and to trade with the out- most fragile sectors and to pre- ©Eurisles 2001 Permanent and pervasive realities

CRETE: PHYSICAL RELIEF MAP

Close to 50% of the surface area of Crete is made up of mountain areas. 35.6% of the 567 municipalities of the island are located in these areas … although only 17% of the population of the island lives there.

serve the landscape and the attached to their community SURFACE AREA (KM²) most remarkable sites. It is and who return there from time obvious that, in the islands, to time or plan to retire there. SARDEGNA CORSE

especially the smallest island KRITI

where space is limited, only a Conversely, a difficult economic NOTIO AIGAIO very strict spatial development situation in an island often leads LES ILLES BALEARS and land development policy to high emigration. In the small- VORIO AIGAIO GOTLAND Average of SAAREMAA can avoid irreversible damage est islands, emigration has a european Moyenne des WESTERN ISLES regions: régions to the environment by the ac- snowball effect, leading to clo- européennes : ACORES 16 885 Km² Average of cumulation of constructions sure of services, schools, etc., european regions: IONIA NISIA 16 885 Km² unsuited to the surroundings. which accelerates the popula- GUADELOUPE tion drain and can lead to total ÅLAND SHETLAND

Island populations move a lot, desertification. MARTINIQUE

because account must be taken HIIUMAA of the, sometimes considerable, The islands are demographically ORKNEY BORNHOLM

seasonal fluctuations induced “sensitive”, and, in light of their ISLE OF WIGHT

by tourism, or the island limited space, these fluctuations GOZO © Eurisles diasporas, generally strongly have a greater impact than on 0 5 000 10 000 15 000 20 000 25 000

BUYING A HOUSE ON THE BALEARIC ISLANDS HAS BECOME A L UXURY the mainland. Economic In recent decades, a large number of hotels and terms of the level of prices (after the Basque choices are particularly sensi- apartment flats have been built on the Balearic Country and Madrid). Consequently, many tive because they often have Islands in order to satisfy the increasing de- families (around 23,000) cannotS afford to buy mand by summer tourists. As a result, the coast a flat (at a minimum price of 84,000 euro), and immediate and spectacular im- has become completely built-up, giving rise to therefore have to rent theirR accommodation. pacts on the space, which is a the term “Balearization”, and causing serious It has to be said that the growth of the building damage to the natural environment. sector has been notoriousA during the last years. finite resource. This explains, Since 1995, therefore, with the aim of control- Nevertheless,E a slowing-down is forecast for the, sometimes sharp, conflicts ling building on the Islands, the Balearic Is- the years ahead (so, from the 11.4% index rate in some islands between urban lands’ government and the Islands Councils registeredL in 1999, a growth rate of 9.3% is have adopted a number of measures including anticipated for 2000 and of 5% for the year and rural communities, between a moratorium on construction and guidelines 2001).A agriculture and tourism, be- for spatial planning. The policy of both the Spanish and the Bal- However, these have resulted in a dispropor-Bearic Islands’ Governments in this area for the tween the needs of visitors and tionate rise in house prices, as well as an in- next few years will focus on promoting rented those of the residents … crease in the activity of the construction in- accommodation and providing public aid for dustry. S housing. The Balearic Islands’ Government is Between 1994 and 1999 house prices on the also drafting a Land Law, for which it is seek- Faced with demographic pres- Islands increased by 74%E (compared to the ing a formulation that will enable the quantity 25% average increaseL for Spain as a whole). of new housing stock to be controlled, while at sures, population movements, More recently, betweenL 1998 and 2000, house the same time providing the necessary legal high seasonal migrations, etc. prices rose byI 55.5%, making the Balearic Is- guarantees. 19 lands the Spanish region with the highest price it is essential to control re- increase and putting them in third place in Off the coast of Europe

sources. An approach based on FIRES IN COR SICA the integrated management of The intensity of the fires is explained by the is- velopers, grudge or revenge fires, and uncon- land’s Mediterranean vegetation cover, consist- trolled dumping have accounted an average of natural constraints is essential ing as it does of maquis and forests, combined almost 1,700 fires per year. to ensure the sustainable de- with a low population density and the abandon- Apart from the irreversible ecological damage velopment of a region. In an ment of traditional crop growing. Spontaneous caused to plots which, having burnt several fires are rare and, with the exception of a small times, become desertified, the human and finan- archipelago like the Aland Is- number of accidental fires or fires caused by cial cost is considerable,E in light of the intensity lands, the right to settle is negligence, most fires are set deliberately. Over of the mechanicalS resources called out and the the last 20 years, pastoral fires, fires set to pro- mobilisation of thousands of fire fighters every strictly controlled. mote the interests of hunters or real estate de- Ryear. To manage a fragile island en- Number of fires since 1980O 33 627 Surface areas burnt since 1980 ha 236 183 vironment, it is essential to take Percentage of surfaceC areas burnt since 1980 27.3 steps to protect nature. Exces- (% of total surface area) sive deforestation, soil erosion Source : INSEE In 20 year, over a quarter of the island was destroyed, and plots which burnt several times are and the extreme fragility of the, permanently damaged. mainly urbanised, coast are among the factors that call for needs to be protected. This areas. The agricultural sector a specific analysis of the natu- management of fragile spaces not only contributes to eco- ral constraints in the islands. necessarily includes the fight nomic diversification, it also Although the island environ- against fires, the protection of plays an important ecological mental balance is often endan- ecosystems, the valorisation of role. gered by the population and by endemic vegetation, etc., not to tourism, the environment must mention the management of Another important factor is the still be regarded as an impor- marine resources in a way management of the habitat, in- tant element in the economic which protects the marine mi- cluding the rehabilitation of activity of the islands. lieu by limiting shipping, set- constructions, the accessibility ting up ecological reserves, and of residential zones which are The islands boast numerous valorising coastal zones. often dispersed over mountain endemic species and immense islands or archipelagos, and the biodiversity. However, on such To develop the island territory taking of steps to combat the small territories, each species it is also necessary to harmo- deterioration of the coasts comprises a small number of nise the land occupancy plan where the population is concen- individuals and is therefore in as between built, unbuilt, pro- trated massively. severe danger of extinction and tected areas and agricultural

More complex waste management

he limited size of the ter- In the implementation of the environment. Moreover, geo- ritory, combined with po- European waste management graphic and demographic fac- Tpulation trends and sea- strategy, which raises problems, tors (distance from the main- sonal fluctuations, are factors even on the mainland, the island, climate, difficult geology, which imply a frequently diffi- lands are confronted with ad- low population density or over- cult cohabitation between man ditional obstacles proper to their population, seasonal tourism, and nature and can generate island nature. Retrieval, dis- waste from port activities, etc.) conflicts of interest and man- posal, elimination or recycling further complicate waste management difficulties. Faced with of waste pose specific problems agement and call for an appro- the increased production of in the islands. priate organisation. waste , the islands suffer a dual constraint, both economic and Poor waste management can The nature of the waste to be ecological. have irreversible consequences processed, the behaviour of the 20 for the highly vulnerable island waste producers, the disposal Permanent and pervasive realities

capacities and modes, the pos- WASTE MANA GEMENT ON THE ISLE OF WIGHT sibilities of reducing quantities The Isle of Wight is a small island, 38,000 electricity generating plant. Household at source and of recycling, the hectares, off the south coast of England with waste collection was carried out by two a static population of some 126,000 people private sector contractors. markets for recycled substances and attracts some 2.7 million visitors per Following reorganisation, the Council invited and the limitations on waste annum. Both employment and GDP rely tenders for an integrated waste management heavily on the tourist industry. contract comprising household waste col- transport are further questions Much of the Isle of Wight is designated as lection, recycling and disposal and after an linked to the local context. an Area of Outstanding Natural Beauty and extensive tender process, a contract com- Heritage Coast. In addition, large parts of menced in October 1997. the Island comprise chalk from which wa- In the first three yearsT of the Contract the Dispersed collection, accentu- ter is drawn. contractor has achieved a recycling/diver- ated by the archipelago-type Having regard to the relatively small land sion from landfill rate of 33.4%, 41.38% and mass of the Island, planning restrictions and 45.09%. H character of certain regions, the the geology of the Island, it is extremely dif- The contractor has installed a new purpose limits on available spaces and ficult to find new sites for the disposal of built in-vesselG composting system using difficult and costly transport are waste. The transport of waste from the Is- North American technology and by combin- land to the mainland, despite fairly short ing that systemI with the existing waste de- also major handicaps for the distances across the Solent, has been re- rived fuel plant, we have been able to achieve island region. The technical jected because the costs would be prohibi- these high recycling rates without mass tive. burn. resources needed to treat and Furthermore, Members of the Council have AlterationsW to the waste derived fuel plant eliminate waste represent a been strongly opposed to the principle of and the adjacent privately owned electrici- mass incineration. Indeed, local authority generating plant are currently being un- particularly heavy financial ties in the southern part of the mainland dertaken which will increase the capacity burden. Elimination or recycling have found extreme difficulty in obtainingFof both plants. This should enable the re- planning permission for mass incineration cycling/diversion rate for household waste facilities are not always viable. and there has been enormous public oppo- to rise to over 50% and also allow some The problem of finding outlets sition to proposed sites. O 30% of the Island’s commercial waste to for recycled materials, and the As an Island, therefore, the Isle of Wight has be treated. The upgrading of the power plant to deal with all types of waste. The Council will mean that enough electricity will be excessive cost of operating and is very conscious of the principles of sus- produced to power 1,000 Island homes. maintaining the facilities, jeop- tainability, land is a finite resourceE and With the partnership working between the therefore new solutions have to be found on Council and its contractor, we believe we ardise the very viability of these the Island itself for recyclingL and the dis- have an excellent example of rural waste structures. Finally, many op- posal of waste. management which will be of interest to As the Isle of Wight is not designated an many European municipalities and regions. erators are reluctant to run the Objective 1 or ObjectiveS 2 area for the pur- All waste arising on the Island is dealt with risk of undertaking this type of poses of European structural funds, it has on the Island and the only materials that not been able to obtainI any European fi- are shipped off are glass and some paper activity on an island. nance to assist with these major problems. for recycling. When the new Council was formed in 1995 However, dealing with the Island’s waste is Those islands which do not waste disposal was still being carried out an expensive item for the Council and the directly and the Council had one landfill site, costs of all the waste collection and disposal possess all the costly disposal three basic public disposal (civic amenity) operations are £5.4 million out of a nett and recycling infrastructures sites and a waste derived fuel plant produc- Council budget of £128.2 million. ing pellets for an adjacent privately owned have to export part of their waste. This export of waste raises problems which can Additional problems of a politi- tion (where there is a status of cause pollution and accidents, cal and administrative nature autonomy). and European regulations tend can also arise. These include to limit it. a lack of coordination between European law, which applies state and regional administra- under the same conditions throughout the territory of the EU, also generates specific dif- THE ARCHIPELA GO EFFECT AND THE P ACKAGING WASTE ficulties in the islands. Much more equipment is necessary to implement the municipal solid waste elimination plan in Guadeloupe than in Martinique, which, while being an island, is not an archipelago.

Designation GUADELOUPE MARTINIQUE Surface area (Km²) 1 705 1 100 Population (1996) 417 000 393 000 Density (Hab./Km²) 245 355 Number of inhabited islands 8 1 Number of household refuse incinerators 4 1 Number of composting centres 5 1 21 Off the coast of Europe

Soft water, between scarcity and pollution

ater, which is essen- POLLUTION OF GR OUND WATER tial for human life, is Bornholm depends on ground water for A detailed mapping of the ground water a source of major 100% of its water supply. We have a reservoirs and their ability to resist these W number of very large ground water reser- threats is being carried out over 2000- concern for many islands. The voirs. The total water extraction on the 2007. This will give rise to Water Protec- lack of water is a frequent prob- island is around 4.5 million m3/year, tion Action Plans for each reservoir, in- lem in hot and sunny islands, mainly for households, industries and volving a variety Mof actions that could tourist facilities. Irrigation is not common. include restrictions on land use, farming, such as the Mediterranean and All the reservoirs are vulnerable due to industrial activities,L general use of chemi- the Antilles, but it is not exclu- very thin protecting top-layers. The main cals in households, etc. sive to them. In some islands threats are leaching of nitrates from farm- Over Othe last ten years efforts have been ing (65% of the island is used for inten- made to eliminate possible pollution of in Northern Europe, such as sive farming) and leaching of chemicals Hthe ground water reservoirs from old soil Bornholm, agricultural activities from various sources (urban areas, farms, pollution, such as old petrol stations etc. (use of pesticides, intensive industries etc). N More than 150 sites have been monitored Up until now, only a small number of and more than 50 sites have been breeding) gradually deteriorate water wells have been closedR because of cleaned. the quality or quantity of the pollution, but there are major threats for Implementing the future Ground Water water table, thereby threaten- the future due to the fact that the raw Protection Plans will be an important and water extracted todayO often is 30 or 40 challenging task for the local authorities ing the resource. Conversely, years old and that the use of chemicals and the water authorities in Bornholm. certain islands in Southern Eu- in farming, industryB and by households rope (such as Crete or Corsica) in often more recent. have sufficient water resources thanks to their mountainous terrain. factor, especially where the re- deficit. These include source is rare, difficult to mo- desalinisation plants, procure- The pressure of tourism, which bilise and highly seasonal. In ment via tankers, construction has the effect of increasing de- the most vulnerable islands, of aqueducts or even underwa- mand during the driest season, significant resources have to be ter pipelines connecting the is obviously an exacerbating dedicated to tackling the water producing areas to the dry areas, as in certain mountain islands (Reunion, Madeira) or in WATER SUPPL Y IS A REAL PR OBLEM FOR THE B ALEARIC ISLANDS certain archipelagos (Guadeloupe, Gozo). The cost The peculiar hydrology of the Balearic Is- In the light of these problems, the Balearic lands, with its sparse and vulnerable water Islands’ Government adopted a number of of building or operating these resources and irregular rainfall, results in measures such as the “ShipS Operation”, infrastructures is particularly frequent water shortages. In addition, the under which Majorca was supplied with need to guarantee a supply of water for the water transported by Rtanker from the Ebro high. total population, made up not only of local delta between AprilA 1995 an January 1999, inhabitants but also the large numbers of and, since 1995, the building of several To compensate the water short- tourists, means the islands are in an almost desalinationE plants in Majorca, Ibiza and permanent situation of drought. Formentera.L age of Sardinia, an ambitious Furthermore, the year 2000 was the driest However, in view of the high environmental aqueduct project between Cor- of the last 50 years, and this led to water and energy costs of the desalination plants, restrictions in several villages and major Athe policy of the Balearic Islands’ Govern- sica and that island is presently losses in agriculture and cattle raising. ment will in future focus on measures such being undertaken following a The majority (90%) of the Islands’ waterB as: improvement of underground resources, supply comes from extractions of ground repairing of leaks, installation of water me- positive assessment by experts. water from aquifers. The precise figures are: ters for domestic consumers, awareness- Two hundred million cubic me- 83.1 hm3 per year in Majorca, S10.6 hm3 per raising campaigns and setting of tariffs to 3 ters of water could be exported, year in Minorca, 6.7 hmEper year in Ibiza encourage a reduction in consumption. and 0.3 hm3 in Formentera.L Recently, the Ministers’ Council of the Cen- which would at the same time However not all the water is of good quality tral Government approved the Balearic Is- improve the situation in the and the extractionsL cannot therefore be con- lands’ Hydrologic Plan, which includes most sidered sustainable;I in fact, some of them of the above-mentioned measures in an aim South of Corsica. are overexploited and have become to reduce demand and achieve effective 22 salinized. management of the water supply. Permanent and pervasive realities

Increased urbanisation and the WATER SHOR TAGES AND WA TER RESOUR CES MANA GEMENT development of tourism have the The island of Gozo has to come to terms with At present, these arrangements are providing effect of fanning conflicts with water shortages. Unless adequate infrastruc- the necessary water resource requirements for ture is constructed, the larger part of rainwa- the population of Gozo and for the significant farmers, who traditionally use ter flows directly into the sea. Thus, the is- number of visitors spending their holiday in large quantities of water. Para- land depends on water extracted from the Malta. This significant result has been watertable for a significant part of its popu- achieved at a significant financial cost, both doxically, the decline in agricul- lation requirements. A related negative side in terms of the initial capital outlay to build ture creates other difficulties, effect relates to the extensive soil erosion and install reverse osmosis plants as well as because farmers’ know-how is which will result from the unmitigated flow of in terms Oof running costs to operate the plants. rainwater into the sea. Traditionally, soil has AtZ the same time, it must be highlighted that lost. When forests burn owing been retained through extensive constructions the agricultural sector in Gozo is still facing to lack of upkeep, when walls of rubble walls. But similar walls require Ocon- the considerable hurdle of a lack of adequate stant maintenance efforts and are thus costly water supplies for irrigation purposes. Again, protecting fields are abandoned to maintain. In addition, the numberG of em- the sector is overly dependent upon water and terrace crops left to wither, ployees who have assimilated the skills to extracted from the water table. This source of build and maintain similar rubble walls is in water for irrigation purposes is not easily sub- rainwater retention decreases, decline. During the months with the highest stituted over the short term without extensive thereby affecting the reconsti- demand, water may be pumped across the negative repercussions both to the local agri- tution of the water table. Gozo Channel from the nearest Water Reverse cultural sector and to the rest of the popula- Osmosis plant in Malta. tion.

WATER, AN URGENT PRIORITY F OR SARDINIA THE PR OBLEM AND THE PR OGRAMMES Sardinia, traditionally poor in terms of water project over this ten-year period is 2,376 mil- ent Flumendosa Water Board, water needs for resources because of its geographical mor- lion euro. the whole of Sardinia total 1,162 million m3 phology (absence of any significant relief), has The resources currently available for the pe- per year. This is broken down as follows: suffered and continues to suffer an extremely riod 2000-2006 (EU and C.I.P.E. funds) 294 million m3 for the household (25.3%), 61 serious water shortage as a result of the in- amount to approximately 568 million euro. million m3 for industry (5.3%) and 807 mil- creased needs for human consumption, agri- This leaves a shortfall of roughly 1,808 million m3 for agriculture (69.4%). culture and industry. It is imperative to offset lion euro, which can only be met through ex- If we deduct from the household a volume of this shortage, which is made worse by the ceptional state aid, if the threshold level of about 20 million m3 to take account of the decrease in rainfall. 1,000m3 per inhabitant per day is to be fluctuations in population (especially of the In view of this seemingly irreversible trend, reached over this ten-year period. Below this tourist population), it is immediately obvious the region carried out in 2000 a study into level, the shortage of water means that the that the average daily consumption of drink- the island’s needs and its climatic data. The essential needs of the population cannot be ing water out of the 1.650,000 units meas- study takes account of existing infrastructure met, and economic development, food pro- ured in the reservoirs regulating the domestic as well as that under construction, and iden- duction and protection of the natural envi- water supply networks is something in the tifies the measures needed, notably in terms ronment are hindered. order of 450 litres per head. This is extraordi- of infrastructure, in order to resolve this in- The situation in the complex system in the narily high, and reveals very high losses which creasingly serious problem within the next ten south of Sardinia (Flumendosa – CampidanoAare occurring in the supply networks. years. Unprecedented financial efforts will be – Cixerri – Sulcis), which has to satisfy the Agricultural needs, for a cultivated surface required and this objective will have to be highest level of demand for water in theN whole area of 146,000 hectares, are estimated at made an absolute priority. This plan should island, is once again critical, as it was in the 7,500 m3/ha, which is lower than the average enable a satisfactory level of economic devel- spring of 1995. On 31/05/2000, the twelve figure quoted in the Water Plan (-8 100 m3/ opment to be reached, and the quality of the artificial reservoirs in this areaG held a total ha), but which is nonetheless incompatible islanders’ life in terms of water requirements volume of only 107 million m3, which is less with the available resources, which are sig- to be maintained. than 15% of the total Eavailable capacity nificantly lower than demand. The study resulted in a programming docu- (approx. 728 million m3). In spite of draco- The table provides a detailed comparison be- ment, approved by the regional council of nian cutbacks (of 20-25%) in the amounts of tween the island’s current water needs (1,162 Sardinia on 17 August 2000. This is a refer- water allocated forD human consumption and million m3/year) and the water resources cur- ence document for the drafting of framework for industrial use, decreed by the Commis- rently available for consumption (621 million programme agreements under the joint plan- sioner for theR water emergency, the volume m3/year). The breakdown by water area is ning agreement drawn up between the na- remaining for agriculture is only just enough reproduced in the table below (amounts ex- tional government and the region of Sardinia. to cover livestock needs and ensure the sur- pressed in million m3/year). It should be possible to achieve the pro- vivalA of fruit crops. gramme objectives by 2011. According to the calculations of the independ- The funding required to carry through this S

The current situation in million m³ / year

Share of Water area Needs Resources Shortfall (-) shortfall (%) Northern Sardinia 300 176 -124 -41.30% Eastern Sardinia 101 76 -25 -24.70% Central Sardinia 249 137 -112 -45.00% Southern Sardinia 512 232 -280 -54.70% TOTAL 1162 621 -541 -46.60% 23 Off the coast of Europe

Energy-sufficient or energy-dependent Islands

umerous islands remain the mainland, could connect technically feasible at the mo- highly dependent on two islands by cable in order ment to be supplied in energy Nfuel imports to provide to create a mini island network, from the mainland, the situa- their energy needs despite the as in Guadeloupe. tion is particularly delicate. growth in renewable energies during the course of recent Building a cable link is not, The islands’ high dependency years. however, a panacea for all the on oil for their primary energy islands’ energy ills. In the lowest needs means that they are A distinction is made between population archipelagos, the highly vulnerable to oil prices, two types of situation: price of fuel at the pump is much and that security of procure- more expensive than on the ment is not guaranteed. Even - Islands connected to the main- mainland, for reasons related if the increasing use of renew- land via a cable, a pipeline or to distribution conditions, a able energies reduces this de-

a gas pipe, whose electricity THE OPERA TING DEFICIT S OF THE ELECTRICITY UTILITIES IN THE FRENCH ISLANDS production is partially or wholly (in Millions of Euro for the year 1997) (en Millions d'Euros pour l'année 1997) guaranteed thanks to the secu- Corse Guadeloupe Martinique Réunion Total rity of an outside source 64.8 83.7 82.6 50.8 282 (Bornholm, Isle of Wight, Ork- SourcePour :mémoire comptes EDF-GDF le chiffre d'affaires total de Edg-Gdf en 1997 ney, Gozo, Western Isles, etc.). By comparison, EDF-GDF’s total turnover in 1997 was 28,956.6 million Euro. The cumulative deficit of the four islands represents almost 1% of total turno- - Islands not connected by ver for the company. means of a permanent infrastructure and which depend on factor which penalizes indus- pendence, it is doubtful whether their own resources or on im- tries and populations. Moreo- it can do so fully. As an exam- ported fuel. These are the re- ver, the costs of distributing ple, to ensure the operation of gions furthest from the main- electricity can be very high in a stand-alone electricity net- land (Crete, the Balearic Islands, mountain islands and archi- work, at most 35% of the is- Shetland, the outermost re- pelagos. land’s energy may be generated gions), or small islands whose from wind power. low consumption does not jus- In regions (especially the out- tify such installations. ermost regions) where it is not

Some of the islands currently SENSITIVITY T O FUEL PRICE not connected to the mainland via underwater installations Every month Comhairle nan Eilean Siar sur- the Western Isles of the difference in Petrol veys five locations (Shetland, Orkney, Inver- prices is: £1,093,579. S plan to build such infrastruc- ness, Glasgow and Stornoway) to monitor · Approximate annual cost Eto Average Mo- tures in the medium to long fuel prices. The survey shows that the price torist in the LWestern Isles of fuel in the Western Isles is up to 10% of the difference Sin Petrol prices only: £109.09; term. This is technically pos- higher than at mainland outlets, thus addi- · MaximumI Difference on typical 900 litre sible, albeit costly. In the per- tional costs are passed on to Western Isles delivery of Central Heating Fuel: £26.28; businesses, motorists and consumers. · Maximum Difference on typical 1,000 litre spective of increased electric- · Approximate annual cost to Consumers in Nweekly consumption of Marine Diesel: £60.10; (Source: Comhairle nan Eilean Siar, Dec 2000). ity production from renewable Maximum Difference on typical 55R E To this one can add that the price of passen- energies, a cable link could be litre tank of Fuel:T ger air travel from Stornoway (principal town an asset for these islands, help- Unleaded 5.72 £ in the Western Isles) to Glasgow is over 150% S more expensive per km than from Glasgow to ing them become electricity ex- Leaded E 3.52 £ London, based on a standard full price return porters. Furthermore, some DervW 3.52 £ ticket. 24 archipelagos, not connected to Permanent and pervasive realities

Furthermore, the cost of pro- gos) constitute small isolated by maintaining public service ducing electricity is several times networks which cannot guar- policies and a policy of meet- higher in the islands than on antee the profitability of the ing demand rather than by com- the mainland because these infrastructures). Consumer petition between operators. regions (especially archipela- prices can only be maintained

The all-pervasive obstacle of transport

hen one speaks of is- Transport is also a question of and which depend on frequen- lands, one automati- time. The apparent length of cies Wcally thinks of trans- the flight or of the sea crossing port, but it is not always pos- is only one aspect, because the - Additional delays due to sible to measure all the impli- inevitable waiting times need to storms, technical incidents or cations. be added to them: strikes, which cannot be avoided owing to the lack of alternatives. Transport is first and foremost - Check-in times, loading or a problem of choice. By defi- unloading times for vehicles or Finally, transport is a question nition, islanders cannot use goods, which are particularly of price . We deliberately use road or rail to communicate long for transport by container the word “price” rather then with the outside, which means ship or bulk carrier “cost”, because the cost of a link that they do not enjoy the ben- is merely that of the resources efit of competition between - Waiting times between turna- used to provide it (vehicle, fuel, these various transport modes. rounds (non-existent on the personnel, etc.), while its price They are not, therefore, in a mainland where a vehicle can is the bill actually paid by the position to benefit from the free- leave at any time of the day or user. The two concepts are to- dom of movement of persons night, on any day of the week), tally different. and goods in conditions comparable to those of the inhabitants of the European main- CONNECTING AN ISLAND T O THE MAINLAND land. The situation is even more Strictly speaking, an island is defined as be- one of the Canadian Provinces, Prince Edward ing a completely isolated territory with no Island, was finally connected to the mainland serious for the inhabitants of the fixed link (bridge, causeway, tunnel) to the a few years ago. outermost regions, because, in mainland. Five European island regions can currently The creation of such fixed links has made it “technically” claim to have such a connec- most cases, they do not enjoy possible to overcome the insularity of several tion on account of their relative proximity to regular passenger transport European islands, some of them quite major the mainland (or to the main island, in the services. islands. Apart altogether from the Channel case of Malta). These are Sicily, the Isle of Tunnel, other examples include Eubeoa or Wight, the Estonian islands of Saaremaa and Lefkas in Greece, Öland in Sweden, Rügen in Hiiumaa, and Gozo. Another consequence of this Germany, Sjaelland in Denmark, Ré, Oléron The question of whether or not such invest- or Noirmoutier in France, Anglesey in Wales, ments should be made is often a controver- reduced choice is the saturation Skye in Scotland, etc. sial one and the greater the financial, eco- of the transport modes avail- Outside the EU, the practice consisting in re- nomic and environmental issues at stake, the solving insularity by the construction of fixed greater the passions aroused. In all cases, the able during the tourism season. links is the rule in Japan, in particular in the budgetary implications are considerable, both Unless one books long in ad- numerous islands of the Interior Sea, where in terms of construction costs and upkeep major motorway infrastructures crisscross the costs. vance, it is extremely difficult islands. This is also the case in Canada, where to find a place for a vehicle on a ship, or a seat in a plane when Island region Distance from the mainland or Population from the main island tourist traffic is at its peak. Sicilia (Italy) 6 5 098 000 Having no other alternatives, Isle of Wight (England) < 5 128 200 islanders sometimes find them- Gozo (Malta) 8 29 400 selves “imprisoned” on their Saaremaa (Estonia) 7 39 200 island during certain periods of Hiiumaa (Estonia) 22 10 500 © Eurisles the year. 25 Off the coast of Europe

In the field of air transport, the NECESSARY SHARE OF W AGES TO FLY more limited the traffic or the TO THE NA TIONAL CAPIT AL weaker the competition, the higher the prices practised by MARTINIQUE *

the carriers on their regular GUADELOUPE * flights with the islands. This ACORES means that, while the most popular island destinations can SHETLAND enjoy affordable prices, the WESTERN ISLES

prices for the most isolated is- ORKNEY lands come close to, or even KRITI exceed, the prices of certain Variations in prices are caused, not only transatlantic routes. The use IONIA NISIA by distance, but also by national offsetting mechanisms. It costs inhabitants of air transport is, moreover, GOTLAND of the outermost and Scottish islands unavoidable in the outermost VORIO AIGAIO between half a month’s and a month’s regions, and essential in most salary to travel to their national capital. cases, for example in archipela- NOTIO AIGAIO gos spread over vast areas such CORSE

as the Azores, or islands whose SARDEGNA neighbouring mainland is a re- GOZO gion which is itself peripheral, mountainous or desertified LES ILLES BALEARS © Eurisles (such as the Scottish archipela- SAAREMAA gos off the northern and west- 0 20 40 60 80 100 120 ern coasts of the Highlands). * based on minimum wage Price of regional capital - national capital air fare calculated in terms of average island salary 1996

In the field of shipping, espe- by reducing them by means of cause it ignores the impact of cially for the shortest routes, the “territorial continuity” policies, waiting times, and the time prices applied to vehicles and as is already the case, to vary- during which vehicles and lorry passengers tend to be much ing degrees, in many regions. drivers are tied up. In some higher than the cost of using archipelagos, it can be practi- road or rail transport over an For freight, the actual bill for cally as expensive to transport equivalent distance. It is there- the sea crossing gives only a a cargo from one island to the fore up to the public finances partial picture of the actual other than to the mainland. to make these prices acceptable prices borne by the user, be- Does this mean that marine iso- THE ROLE OF ISLAND TRANSPOR T EVOLVES OVER TIME AND A CCORDING lation necessarily leads to high TO CHANGING TECHNIQUES transport costs? The mere fact If, on the islands, the transport problem transit of large volumes of goods and that products from all over the is a constant and unavoidable reality, its large numbers of passengers across the intensity is not intangible. Historically, continent, road and rail transport gradu- world are sold competitively on transport by sea long predominated in ally asserted their primacy over shipping. the European market (Austral- a Europe where the road network was This technological revolution made a sig- ian wines, shrimps from Thai- undeveloped, sometimes not very safe, nificant contribution to “marginalising” and generally of very poor quality. In the European islands, or, at least, those land, goods manufactured in this regard, coastal populations were not located on a major shipping route. Japan, etc.) clearly shows that long much more mobile than the inhab- Subsequent developments in terms of itants of the interior, especially during techniques (such as the abandonment of transport costs are not neces- seasons when the climatic conditions coal in favour of fuel) reinforced this sarily a prohibitive factor, even were propitious to navigation. For ex- trend by making it possible to eliminate with long sea crossings. The ample, trade between one shore and the stopovers. The same applied to trans- other of the Mediterranean long sur- ocean air links, with the result that is- essential factor is the question passed trade between Northern and lands such as Santa Maria (Azores), of traffic volume, because freight Southern Europe. This situation changed whose airport used to be a necessary in the 19th century owing to a number of stopover for flights between Europe and costs drop sharply when traf- factors, especially inventions such as America, lost their role with the advent fic is high and, especially, bal- tarmacadam or the railway. Thanks to of direct transatlantic flights. anced. 26 these inventions, which enabled the rapid Permanent and pervasive realities

EUROPEAN, AFRICAN OR AR CTIC ISLANDS?

This map represents the virtual distances of the islands from the Centre of the EU, symbolised by Maastricht. We added the travel time of a semi-trailer by road, the crossing time by ferry, the waiting time and a frequency coefficient. This total travel time was converted into Km on the basis of the average speed of 60 Kph for a truck on the Continent. Within the EU, a road carrier he can halve the price of the tion with NEA shows that it can can greatly reduce his costs turnaround, irrespective of the be cheaper to ship the same between two destinations if he means of transport used. As an cargo between Maastricht and is sure that he can load his ve- example in point, a study car- Helsinki than Maastricht and hicle at each end. In doing so, ried out by Eurisles in coopera-

Euro MARITIME TRANSPOR T COST (RETURN) F OR 40 FEET CONT AINER

6 000 Açores

5 000 Guadeloupe Martinique

4 000

3 000 Illes Balears

2 000 Vorio Corse Sardegna Notio Aigaio 1 000 Aigaio ©Eurisles

0 The extra shipping costs for goods transported by container depend, not only on distance, but also on trading volume in both 27 directions, and national fare adjustment measures. Off the coast of Europe

Lisbon, in spite of the crossing DISTRIBUTION OF THE FL OW OF EX CHANGES of the Baltic.

However, the vast majority of

transport flows between Euro- GOTLAND pean islands and the mainland are severely unbalanced in favour of imports. Moreover, car- SARDEGNA riers can neither load nor un- load the cargos of other customers during the sea crossing, whereas they can do so on the MARTINIQUE mainland, even if that implies making a detour, because the flows are better balanced. ISLE OF WIGHT

This means that the bill for a turnaround to an island is quite CORSE likely to be higher that a similar service between mainland

destinations, irrespective of the GUADELOUPE cost of the crossing. The greater

LES ILLES BALEARS

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% © Eurisles PartPercent des marchandises of merchandise chargées loaded (exportées) (tons / Percentage exported) of merchandise loaded (exported)(%)

PartPercent des marchandises of merchandise déchargées unloaded (importées) (tons / Percentage imported) of merchandise unloaded (imported) (%) and more balanced the trading The island regions have heavily loss-making transport flows. This trade is less unfavour- volumes, the lower the prices, able to Sardinia and Martinique, which respectively export oil and bananas. Only Gotland, which is a major cement producer, exports more than it imports. It is to be noted that especially as competition is cement and oil depend on specialised transport, a factor which does not make for balanced stiffer between the carriers. This traffic. situation naturally favours the urbanised and industrialised and mitigates against the more regions at the heart of Europe peripheral, less populated, re- (traditionally symbolised by the gions, especially those affected London-Milan “blue banana”), by insularity.

FOR THE ISLANDS, AIR FREIGHT REDUCES DISTANCES, BUT NOT TIMES OR COSTS

Type of address Commercial Packaging UPS Pak Total weight: 10 kg. Origin: Paris, 75883 FR Shipped on : Thursday 30th August 2001, end of day

Nice, 06000 FR Bastelicaccia, 20129 FR Fort de France, 97200 MQ Destination : Mainland Corsica Martinique Type of service : PRICES Total weight (Euro) UPS Express 29.63 56.64 NA UPS Express Plus 40.43 67.44 NA UPS Express Saver 27.62 54.63 NA UPS Worldwide Express -- 135.98 DELIVERY DATE (Not guaranteed) UPS Standard Friday 31 August 2001 Monday 3 September 2001 - UPS Worldwide Express -- Wednesday 5 September 2001 28 Source : UPS Copyright © 1994-2001 United Parcel Service of America, Inc. CONSTRAINTS structural with multiple consequences « Australia, n. A country lying in the South Sea, whose industrial and commercial development has been unspeakably retarded by an unfortunate dispute among geographers as to whether it is a continent or an island.»

Ambrose BIERCE (1911)

or than 93% of E.U. Islanders live with a Gross Domestic Product per capita which is below the Community’s average. In spite of various compensatory systems, the cost of living tends to Mbe higher in the Islands’ captive markets, while the wages are often lower. Because of the Islands’ size, overcosts are unavoidable to maintain levels of public or private services on a par with European standards. Often a monoactivity, the economic production depends upon local resources, which are limited (be it by the scarcity of raw material, of manpower, or by the size of firms…), which makes access to the Single Market difficult, if not illusory.

GDP and unemployment: revealing, and misleading, statistics

er-capita GDP and unem- The decision of the Commission it has already been accepted by ployment are the two in- to opt for per-capital GDP, de- the Member States, and every- Pdicators most often used by spite the fact that they were as one calculates it in the same way, the Community to measure the aware as everyone else of the thanks to the major standardi- socio-economic situation of its imperfections of this indicator, sation work carried out since the regions. They effectively reveal was justified mainly by the prin- adoption of common European the difficult situation of most of ciple of realism. The tool exists, accounting standards. the island populations of the Union, but are they sufficient to fully assess their situations?

POPULA TION AND GDP 93% of the island population lives in a region where GDP per head is less than the average EU GDP. From Reunion, whose GDP per head was half the EU average in 1999, to Åland at 138%, all the island regions are represented in proportion to their population.

GDP base EUR15 = 100

GDP > 100 (7% of EU island populations)

GDP between 75 and 100 (30% of EU island populations) GDP < 75 (63% of EU island populations) 29

However, the fact that it is bro- GDP DOES NO T REFLECT THE WELF ARE OF ken down on the basis of NUTS THE BALEARIC ISLANDS’ SOCIETY of 1 to 3 zoning leads to signifi- Contrary to the impression, based on their come to other Spanish regions or abroad. cant disparities and distortions per capita GDP, that the Balearic Islands are On the other hand, it should be stressedS that a “privileged” society, a number of studies per capita income and GDP are criteria that depending on the geographic show a different picture. relate to economic activity;R they do not show levels. For example: A study carried out by the Bilbao Vizcaya either the distributionA of wealth or its invest- Argentaria Bank (BBVA) explains that the use ment in public services. of per capita GDP as a wealth indicator re- A report drawnE up by the Balearic Islands’ - It is not based on homogene- sults in an overestimation of the incomes of GovernmentL on the social and economic situ- ous territories, and discriminates families officially resident in the Balearic Is- Aation of the islands, published in January lands. In actual fact, the report says, gross 2001, based on the Human Development In- against the smallest regions income per household is 9.7% lower than Bthe dex (HDI), indicates that the Balearic Islands estimated GDP per inhabitant. are the sixth Spanish region in ranking when - It penalises territories which The study suggests that the Smain cause of the HDI is applied. Looking at per capita in- the discrepancy between the production of the comes they are in first place, according to experience significant migration, Balearic Islands and theE income of its inhab- regional statistics, and in fourth place if we public transfers and transfers of itants lies the factL that the Islands’ popula- take Eurostat and national government sta- private funds. tion growth Lstems not from natural move- tistics. This fact shows that there is not a di- ment, butI from the arrival of new inhabitants rect correspondence in the Islands between (Spanish and foreign immigrants, officially economic development and social welfare. The fact is that GDP is only one resident or otherwise), who transfer their in- indicator out of many in the ar- senal of regional accounts, and Ro ferry transport, the extensive a population in excess of 500,000 not necessarily the most perti- use of bulking and the elimina- (Sicily, Sardinia, Canary Islands, nent one for understanding the tion of physical checks (for ex- Balearic Islands and Reunion) economy of a region. The level ample, customs). This trend of and account for three quarters of consumption by residents or the last 20 years therefore brings of the European island popula- tourists, the volume of invest- the measurement of island flows tion. The remaining island re- ments or the balance of pay- closer to that of mainland situ- gions are small (7 of them are ments are sometimes better in- ations. even at NUT3 level, and 6 have dicators of the level of develop- fewer than 100,000 inhabitants). ment. Moreover, the islands are Despite these theoretical On small territories, where, para- theoretically better at measur- advantages, however, the way in doxically, knowledge of the lo- ing trade with other spaces than which island GDP is calculated cal economy is often of a higher mainland regions often badly reflects the reality of quality than in the case of the the island regions, by mainland regions, because more While this phenomenon has been over/under-estimating the exhaustive counting is possible, confirmed and measured for fundamentals of their economies. the economic statistical appara- some outlying islands, it is not tus is poorly dimensioned, and so clear-cut for offshore islands, Of the twenty odd island regions the calculation of GDP is often on account of the practice of Ro- in the European Union, 5 have rough. What is the meaning of GDP in Bornholm, Gozo or Shet- STRUCTURAL PR OBLEMS OF THE SMALLER ISLANDS land where the population rep- Åland is an autonomous Finnish province pelago). Most companies are small with very resents less than 50,000 inhab- at the opening of the Gulf of Bothnia below investment capabilities. The public and tween Finland and Sweden, comprising more primary sectors account for the lion’s share itants? than 6,500 islands spread across 6,800 km². of the island’s total employment. The pri- The total population of the archipelago is mary industries, especially important on Apart from problems of compa- around 26,000 but only 65 islands are in- the outer islands, employ more than 20% habited. The largest island, «Fasta Åland», of the total labour force while the public rability, the economies of these is home to 90% of the population. Unlike sector accountsD for more than 25%. Within small territories very often rely in the rest of Finland, the only official lan- the next five years it is expected that around on a small number of activities: guage of the archipelago is Swedish. 20% Nof primary production jobs will dis- The area covered by Objective 2 covers all appear since more than a fifth of farmers - some agricultural productions, the islands of the archipelago except Aare currently over the age of 60. fisheries, tourism, etc. These are Mariehamn, the administrative capital and In 1998, the unemployment rate of Åland main seaport. The population covered there-L stood at 4%. However, this is largely due virtually single activities, which fore totals 15,000. The GDP per capita of to the out-migration of workers to the ma- can represent up to 30% of GDP. the eligible area was 70% of Åthe EU aver- jor labour markets of Finland and Sweden. They are often seasonal, cycli- age in 1997 (118% for the whole of Åland). Opportunities for higher education are lim- The insular nature of the islands and the ited on the archipelago, and young gradu- cal or at the mercy of serious restrictions this imposes on businesses ates are less inclined to return to Åland natural phenomena such as cy- renders certain business activities more (brain-drain) if the economic situation is clones or earthquakes. Just as 30 difficult. The Åland islands are small and not favourable. scattered with no fixed road links (archi- the economy of the Shetlands – Structural constraints with multiple consequences PIB par habitant / GDP by inhabitant 150 heavily dependent on fisheries (SPA / PPS - Eur15 Base=100 - 1999) GDP BY INHABIT ANT – can be seriously affected by 125 PPS 1999 (EUR15=1 00) an oil spillage, tourism in the Eur15 =100 Greek islands can be affected by 100 conflicts with neighbouring 75 countries, and production in the Antilles is even more at the mercy 50 of cyclones. 25

The non-commercial public sec- 0 FI IT ES SE PT FR GR tor also plays a major role. In UK DK Kriti (GR) Kriti Sicilia (IT) Sicilia (FI) Aland Corse (FR) Corse

over half the islands, it represents (PT) Açores Gotland (SE) Gotland Orkney (UK) Orkney Réunion(FR) Madeira (PT) Madeira Sardegna (IT) Sardegna Canarias (ES) Canarias Shetland (UK) Shetland Bornholm (DK) Bornholm Martinique (FR) Martinique Ionia Nisia (GR) Nisia Ionia over 25% of jobs. This pivotal (FR) Guadeloupe (ES) Balears Illes Vorio Aigaio (GR) Aigaio Vorio (GR) Aigaio Notio Isle of Wight(UK) of Isle role arises from the need to pro- (UK) WesternIsles Source: EUROSTAT Although only three island regions (Åland, Shetland and Balearic Islands) have a GDP per vide a minimum of essential head higher, not only than the EU average but also than their national per-capita GDP, health, education or transport twelve have the dubious privilege of having unemployment rates way above the EU average, and all the French and Italian islands have rates much higher than their national infrastructures and services. The averages. per-capita cost of public serv- 40 ices and goods is much higher for small communities or archi- 35 pelagos. While it is true that this UNEMPLOYMENT RA TE predominance of the public sec- 30 (%) - 1999 tor leads to a distribution of sala- Taux de chômage / Unemployment rate 25 ries, it also hinders the develop- (%) - 1999 ment of the private sector. 20

Finally, population structures in 15 the island regions are often ex- 10 Moyenne / Average Eur15 = 9,4 % treme and include many of the demographic maxima of the 5 Union. There are islands with a high retired population such 0 FI IT SE ES PT FR GR EE as the Isle of Wight, high popu- MT DK UK Kriti (GR) Aland Aland (FI) Sicilia (IT) Gozo (MT) Gozo (FR) Corse Açores (PT) Açores Gotland Gotland (SE) Orkney (UK) Réunion (FR) Madeira (PT) Hiiumaa (EE) Sardegna (IT) Canarias (ES) lation growth islands such as the Shetland (UK) Saaremaa (EE)Saaremaa Bornholm (DK) Martinique (FR) Ionia Nisia (GR) Illes Balears (ES) Guadeloupe (FR) Notio Aigaio (GR) Notio Vorio Aigaio (GR) Isle Wightof (UK) Antilles or islands such as those Source: EUROSTAT Western Isles (UK) of the Western Isles where there sists of persons over the age of - Purchasing Power Standard is a high level of population loss 60 (over 25% of the population). (PPS) calculated by Eurostat is because of young adults emi- a national indicator which fails grating. This is not without con- While these phenomena are for to reflect real price differentials. sequences on the unemployment the most part common to all the Who will weight the PPS of the and activity rates. While, on av- European Regions, the distor- islands to take account of price erage, each person in active tions they generate are ampli- differentials with the mainland? employment in Europe pays for fied by the small size of the is- ISTAT (Italian national institute the needs of 1.2 non-working land regions: of statistics) estimates that these persons, the corresponding ra- differentials can range from 3% tio for Reunion or the Northern - Between 1999 and 2006, the to 5% for the Italian islands and Aegean is 1 to 2. Moreover, even population of the French Over- sometimes more for other Euro- where the figures are similar, they seas Departments will grow by pean islands. refer to vastly different realities 3%. The seven-year indicators in both cases, because while the are supposed to take account of Finally, the manner in which is- non-working population in Re- this change, which is costly in land realities are taken into ac- union essentially comprises terms of local infrastructures. count depends on the geographic young people under the age of The question remains, however, level on which regional statis- 15 (over 35% of the population), as to whether they will be re- tics are calculated. Twenty years in the Northern Aegean it con- evaluated and re-adjusted. ago the per-capita GDP of Cor- 31 Off the coast of Europe

ADMINISTRA TION AND PUBLIC SER VICES often have to compete with ille- The negative or unstable trends in the eco- population terms. The limited number of gal immigrants who are willing nomic and demographic variables in the inhabitants means a tight market and low to work for lower salaries. An- majority of the European islands – with the local demand for products and services;O other characteristic of island exception of a small number of islands situ- - the consequences of peripheralityI and ated in the «sun belt», characterised by remoteness, which are high running costs employment resides in the lack strong tourism development – demonstrate for business, householdsA and the state. This of qualified manpower. Educa- their low level of attractiveness . cost premium takes the form of: The islands are not attractive for the long- 1. a cost in termsG of time (transport is by tional structures in the islands, term settlement of : public transport,I and is dependent on the where they exist, are such that - businesses , which prefer to set up in or frequency, distance and type of transport) it is difficult and expensive to to move to the mainland regions, especially 2.A a financial cost (high transport costs, around the large urban centres, so as to take monopolistic or oligopolistic market situa- provide qualified manpower for advantage of external economies; tion, low demand, external diseconomies, the local market. Effects of size - people , especially those with a highO level etc.) penalise the productivity of pro- of education and training, becauseI of the 3. the cost of acquisition of infrastruc- lack of employment opportunities and of ture and the cost of running public serv- fessional training, precluding any services rendered to individualsR (adminis- ices because of negative external economies real-time adaptation of educa- trative, public and private services) that 4. cost due to a lack of choice, because of enhance the qualityO of life. the absence of infrastructure and services tional or training institutions to This low level of attractiveness is mainly necessary for growth the needs of the labour market. due to twoV features of insularity: 5. cost of acquiring specialised information. - small size , both in both geographical and Even worse, island companies sica was statistically integrated Spanish outermost islands and are too small to provide the di- in that of the Provence-Alpes- the Italian islands even have versity and level of remunera- Côte d’Azur Region. Until the record rates, due to both diffi- tion that qualified workers as- island became a separate sta- cult economic conditions and pire to. The only solution then tistical unit, Corsica was, statis- dynamic population growth is emigration which represents tically, one of the most prosper- leading to the need for more job a two-fold loss of “investment” ous regions in France. At present, creation. for the island’s employment the Isle of Wight (NUTS III), sector. This is the case, in par- whose per-capita GDP is 73% Another factor that goes a long ticular, in the Azores, where the of the EU average, is integrated, way to explaining these high low unemployment figures are against its will, in the NUTS II unemployment levels is the type an illusion, reflecting a history “Hampshire & Isle of Wight” sta- of employment available in the of high emigration to countries tistical zone which records a per- islands. A lot of the jobs are in such as the United States due capita GDP of 104 which bears the public sector which, while to a poor social situation and no relation to island realities. stable, is not conducive to the unattractive nature of the growth. The seasonal nature of local jobs market. The low In the field of unemployment, the the work available in tourism or unemployment rate of the Azo- situation of the islands is clearer. agriculture means that these res is also due to a low women Globally, unemployment in the sectors do not offer the residents activity rate, 10% lower than in islands is higher than in their permanent or qualified jobs. continental Portugal. respective States. The French and Furthermore, island job seekers

340 POPULATION AND EMIGR ATION IN THE AZORES SINCE 1960 14 000 1975 Azores autonomy status

12 000 320

Population (000)

Emigration 10 000

300 Emigration 8 000

280

6 000 Population (000)

260

4 000

240 2 000

32 Source : SREA 220 0 © Eurisles 1961 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 1960 Structural constraints with multiple consequences

The concept of the cost of insularity

he cost of insularity PRICES IN COR SICA covers all the economic On the basis of the prices of the day-to-day nance works is 29% lower in Ajaccio, 25% disadvantages which the purchases of the average household, the two cheaper in Bastia and 24% lower in Mar- T main conurbations in Corsica are more ex- seilles. Vehicle repair and maintenance prices residents of the islands suffer pensive than Marseilles and slightly less so are 28% cheaper in Ajaccio, 25% lower in on account of higher import than Paris. Concretely, in 1995, the consumer Bastia and 17% cheaper in Marseilles. Hotel price difference with Paris was of the order of accommodation rates are also between 20 to costs. It includes transport costs – 1.6% for Ajaccio, - 2.2% for Bastia and – 30% lower than in Paris. This is almost cer- for goods and persons, and the 5.9% for Marseilles. tainly explained by the wage differential be- domestic costs of the production Food is much more expensive in Corsica than tween the Paris region and the countryside. on the mainland – 8.5% more expensive than The cost of manpower is passed on directly of goods and services, including Paris, and 11.9% dearer than Marseilles – to the cost of services. distribution services. despite the fact that VAT on foodstuffs on the Car fuel is approximately 2% cheaper in Cor- island is lower than on the mainland (2.1% sica. The VAT rate is 13% instead of 19.6% as opposed to 5.5%). in Paris and Marseilles. However as Corsican The economic disadvantages In Corsica, although supermarkets and shop- shopping centres do not sell petrol, the com- which the island economy suf- ping centres follow the national promotional parison concerns only fuel sold in the service campaigns of the chains they belong to, it is stations ofE the major oil companies. If ac- fers can be broken up into three difficult to follow mainland prices owing to count is taken of petrol prices in shopping major categories: transport the high marketing costs, particular as regards centres in calculating the average price at the costs, distribution costs and basic products, which are the cheapest per pumpsS on the mainland, a litre of premium unit. grade petrol actually costs more in Corsica. production costs. Compared to Paris, the cost of house mainte- R a) Transport costs Average price in Euro (October 1995) O Whole of Average Corsica Good or service Ajaccio Bastia Marseilles Paris France index Whole of France This is the most classic com- =100 ponent of additional cost, the Baguette bread (kg) C 2.62 2.44 2.33 2.15 2.37 107 Rumpsteack (kg) 14.02 14.28 12.01 14.03 14.70 96 easiest to identify and, in any Semi-skimmed UHT milk (l) 0.70 0.65 0.63 0.59 0.59 115 Extra-fine unsalted butter (250g) 1.43 1.38 1.31 1.30 1.32 106 case, that which most people Tomatoes (kg) 1.48 1.57 1.54 1.73 1.67 92 Non-fizzy mineral water (6 x 1,5l) 3.32 3.52 2.80 2.86 2.81 122 associate with the cost of in- Red table wine 11° (l) 1.55 1.56 1.21 1.32 1.12 139 sularity. In fact, it covers two Gent's underpants, 100% cotton 6.07 6.86 6.90 8.41 7.39 88 Lady's leather low-fronted shoe 77.42 69.52 56.88 85.52 79.84 92 distinct types of cost: those Marlboro cigarettes, hard packet 1.78 1.78 2.67 2.67 2.67 67 Compressed butane gas (13kg) 16.18 16.32 16.62 18.18 14.64 111 concerning persons and those Premium-grade leaded gasoline (l) 0.94 0.93 0.91 0.92 0.91 103 Rent for 3-room or larger appartment, in free section, 3year+ lease (m 2 )4.54 4.49 4.12 5.56 NA NA concerning goods. Of all the Running water, including subscription (120m 3 ) 234.56 250.83 279.43 276.45 260.23 93 goods transported, those par- Electricity works (manpower hour, including VAT) 24.19 23.89 27.99 35.31 27.74 87 Cup of coffee at bar 0.92 0.86 0.91 0.83 0.89 100 ticularly subject to additional N.B. The average prices are calculated on the basis of all the price observations. Hyphens indicate prices that are not available. For each ligne, the highest price is in bold lettres, the lowest in italics. costs are heavy goods, such as Source: Comparaison géographique de prix (geographic price comparison) (October1995) and Bulletin mensuel de statistique (monthly statistics building materials or metal bulletin), INSEE products. In any case, account is taken of all the transport serv- the mainland. The goods most to tend to dispatch only quan- ices used by the residents of the affected by these additional tities which they are sure to sell islands, whether or not pro- costs are perishable foodstuffs. at good prices. This phenom- duced on the island. The four main factors which enon, which is particularly no- exacerbate these costs are: ticeable outside the tourist sea- b) Distribution costs son, puts pressure on prices, - The islands are end desti- creates artificial shortages and The distribution services for nation markets . Island con- generates preventive purchase island produce generate a se- sumer markets are end markets. reflexes which further boost ries of disadvantages, linked to Goods sent to the islands must demand. In addition, island insularity, which in turn gen- be consumed by the local mar- markets do not enjoy the ben- erate higher production costs, ket, because there is no eco- efit of downward pressure on leading to gross unit margins nomically accessible alternative prices owing to supply exceed- higher than those practised on market. This causes suppliers ing demand. 33 Off the coast of Europe

- Island trade suffers from - The seasonal nature of the - The transport costs linked to risks of stock outage. The demand represents an extra certain export operations; procurement conditions of the burden for the distribution islands lead to greater storage systems . Domestic demand in - The small size of the regional needs than on the mainland, the islands records seasonal territory; owing to the greater risk of stock movements of variable ampli- outages (bad weather, strikes, tude linked to tourism. While - The high costs of agricultural etc.). The mere necessity to this additional demand – the land under competition from guarantee that the needs of nature and structure of differ tourism (a phenomenon which domestic consumption will be profoundly from domestic de- is exacerbated at the edge of the met leads to the trend to «over- mand – has beneficial effects on urban, or coastal, areas) and the store”: local warehouses, addi- the island economy, it also shortage of available manpower tional equipment and, espe- places severe pressure on prices: for agricultural or industrial cially, longer tie-up times which These pressures are generated, activities; adversely affect cash flow. This either simply by the implemen- phenomenon is reflected in tation of market mechanisms - The lack of capital available higher unit production costs due to extra demand, or by the for productive investments, in than on the mainland. The additional operating costs light of the possible gains in the phenomenon is greater the needed to meet the extra de- real estate or commercial sec- smaller the island, and has a mand (overdimensioning, em- tor. particularly severe affect on the ployment, etc). smallest and most isolated ter- All of these parameters are ritories. c) Production costs linked to the degree of insularity of the territory in question, - The small size of island The internal production cost of its ability to produce tourism companies generates addi- island goods and services is services and its social struc- tional costs . The small size of affected by a series of factors tures. One must insist upon the the local market, coupled with which constitute an important difficulty of generating produc- the dispersion of points of sale aspect of insularity. The fol- tion activities in an island as an (concentrated in the urban ar- lowing are worthy of mention: important factor. The degree of eas, except for some rare excep- dependency on a mainland city, tions) often lead to operating - The small size of the domes- or on a powerful neighbouring conditions (dimensions, equip- tic markets; economic centre are also fac- ment) which generate high uni- tors in explaining these difficul- tary production costs. ties, and are possibly as determining as the cost of insularity strictly speaking.

34 Structural constraints with multiple consequences

Lower living standards

f the quality of the environ- in sparsely populated rural Existence of a financial advantage for ment, life style, or the wealth towns and villages and in the the public sector : Iof the cultural heritage can archipelagos. contribute to making the islands BORNHOLM No more attractive, the same does These higher living costs are not HIIUMAA No not apply to the standard of liv- offset by higher salaries. De- SAAREMAA No ing of these regions, which is spite the fact that, in certain ILLES BALEARS Yes generally lower than that of their branches of activity (especially CORSE Yes mainland. in the civil service) “island bo- GUADELOUPE Yes nuses” of varying generosity are MARTINIQUE Yes The consumer prices practised granted in some islands, most GOZO No in the islands suffer, to varying revenues are lower than on the ACORES No degrees, from the cumulative mainland. This phenomenon GOTLAND No ISLE OF WIGHT Yes effects of transport, the small is aggravated by the seasonal WESTERN ISLES Yes size of the market, and weaker nature of various activities, such ORKNEY Yes competition. This phenomenon as tourism and fisheries. This SHETLAND Yes is exacerbated in small islands, seasonality generates a high Source : Eurisles

THE BALEARIC ISLANDS’ SPECIALIS ATION level of precarious employment, IN TOURISM AND IT S INCIDENCE ON THE LABOUR MARKET especially in the tourism sec- Over the last few years, the Balearic Islands have and a gradual fall in employment in theS traditional tor. A per-capita GDP higher become increasingly specialised in the tourism sectors such as agriculture andR industry. The sea- than the national average can sector. This can be seen from the contribution of sonal nature of tourismA affects the Islands’ social the tertiary sector to GDP, which over the period and economicE situation, in that it means unstable also conceal lower-than-aver- 1990-98 rose from 76.8% to 83.6%. In contrast, and temporaryL contracts of employment. It should age salaries. the trends observed in other European regions Abe underlined that 50% of employment contracts showed a redistribution of productive activitiesB are precarious (seasonal or temporary) and the and a reduction in specialisation.S It should be average wage is 10% lower than the average for noted, however, that Ea deceleration in the growth Spain. The seasonal nature of tourism also has of the service Lsector is forecast for the Balearic serious social repercussions. For instance, work- Islands Lover the coming years. ers employed for a short period of time are not TheI labour market is as a result characterised by entitled to unemployment benefit and they receive an increase in the number of tourism-related jobs only a minimum pension on retirement.

Indice of cost of Living 1998 Food Goods Housing Transport Services Total Shetland Lerwick 100.1 112.0 89.5 126.6 99.1 104.9 Outer Island 106.3 119.6 88.0 133.8 92.5 107.9 Remote 117.1 126.0 87.3 140.3 93.2 113.0 Village A 111.7 115.5 87.0 135.0 93.4 108.4 Village B 121.5 121.7 88.1 136.1 93.7 112.7 Village C 117.6 124.5 86.7 135.4 94.1 112.0 Scottish Rural Average 109.5 114.4 86.5 112.9 91.4 103.6 Aberdeen 100.0 100.0 100.0 100.0 100.0 100.0 Edinburgh 103.1 97.5 115.6 96.3 104.1 103.4 Source: Rural Scottish Summer Price Survey, MacKay Consultants These indices are calculated from information collected on the price of food, housing, transport, services and other goods in various locations in rural Scotland using Aberdeen as the basis for comparison. For reasons of confidentiality, single shop communities are not identified.

35 Off the coast of Europe

More costly and less developed services

he small size of the is- when there is only a very small PHYSICAL INSULARITY land market means that number of companies able, or AND COMPETITION a number of goods or willing, to tender. T Lack of competition can be a factorT in services will not be available an island context. There is noH effective competition in the provisionG of bus serv- locally, and that it will be oc- Even on an island as close to ices, with there being onlyI one compa- casionally necessary to call on the mainland as the Isle of ny providing such services. W In addition, the services of mainland com- Wight, where the mainland is the island setting canF be a deterrent to prospective tenderers, O particularly where panies. The shipping of equip- a mere twenty-minute sea they have to establishE depots, and for a L ment, technicians or repairmen crossing away, building costs recent streetS cleansing contract worth I will also, except in the case of £1.1 million for a year for the next 8 are 7% higher than on the years, only two companies submitted a flat rate contract, be invoiced neighbouring mainland and tenders. each time. For this same rea- upkeep costs 10 to 15% higher. son, it is very difficult for an In more remote island regions, the provision of services, and, island company to offer after- the situation is exacerbated by in general, the operation of sales or follow-up services to difficult climatic conditions or public services. mainland customers. an archipelago effect. For example, in the Scottish islands, While these additional costs Even where island demand can building costs are 45% higher affect both the private and be satisfied by local companies, than the mainland average, public sector, the response is the choice is still limited be- while heavy materials (steel, not the same in both sectors. cause these companies are less cement, blocks, etc.) are often In the private sector, a com- numerous than on the main- 90% more expensive. pany may lose interest in the land. As an indirect effect of island market or demand the this type of situation, the in- The impact of transport and of prices it deems necessary; but vitation to tender procedures market size is not limited to in the public sector, there are supposed to reduce the costs consumer prices; it also affects statutory obligations, and the of services become illusory the building of infrastructures, services must be provided irrespective of their cost. In such cases, the lack of economies THE PRICE OF THE EMERGENCY of scale forces the island au- The Isle of Wight Council has argued for ting up a base on the Isle of Wight. many years that it itself faces additional The physical insularity of the Island re- thorities to employ personnel costs for providing local authority services sults in the costs of providing aT fire serv- or to build infrastructures dis- as a result of being an island and the smaller ice being much more expensive per head proportionate to the size of the scale of its activities relative to other au- of population on the IsleH of Wight than in thorities. It also argues that the current mainland areas. The average budget per population served; unlike funding arrangements do not specifically head of populationG for relevant authori- mainland authorities which fully compensate for these additional costs. ties is £28.21 whereas the budget per head can reduce certain costs by Factors which have to be taken into ac- of populationI on the Isle of Wight for fire count include: is £41.07. For a population of 127,000, the sharing structures with their a) statutory requirements for some of the Isle of Wight is therefore spending £1.633 neighbours. services and the natural boundary for the millionW per annum more than if it were an Isle of Wight require it to be self sufficient, average fire authority on the mainland. for example, in relation to the Fire Serv- The cost per emergency incident for the In some cases, difficult deci- ice; FIsle of Wight is £146.40 whereas the na- sions have to be made. For b) the lack of neighbours to share service tional average if £49.90 and the two nearest provision and costs with, for example,O so- County Councils, Hampshire and West example, would it be better to cial services on the border of two neigh- Sussex, are £41.30 and £42.80 respectively. close a school or retirement bouring authorities on the mainland; The cost of control room staff per thou- home, and use establishments c) the lack of local competitionE and choice sand population for the Isle of Wight is as a result of too few suppliers in the Isle £2,672 compared with the fire authorities’ located on a larger island, or of Wight; L average of £825 and with regard to the cost even on the mainland? The d) no incentives for large firms to bid for of communications equipment, the Isle of choice is often that between contracts inS the Isle of Wight due to the Wight figure is £1,391 compared with the 36 relativelyI small size of contracts, and for fire authorities’ average of £594. depriving inhabitants of the some services there may be costs of set- Structural constraints with multiple consequences proximity of their families and PHYSICAL INSULARITY – HIGHER COST S subjecting them to excessive It is a well known fact that the cost of services This means that local taxes in Gotland are costs and travel times, or run- in Gotland, as in other relatively small, remote among the highest in Sweden – partly reflect- ning the risk of increasing pub- regions, tend to be higher per capita than in ing the fact that Gotland is a low income area other regions, because the population is small generally with a rather limited taxation basis. lic expenditure beyond the rea- in numbers and the region is situated too far To compensate for this, however, there are state sonable. While this problem away from mainland regions to be able to co- transfers to regions, like Gotland, which have occurs in many sparsely inhab- operate with them and thus share some of the problems. costs. Gotland’s politicians (and indeed others) are ited rural areas on the main- At the same time it is quite reasonable to assert still, however, faced with the same dilemma: land, it is much worse in the that the population of Gotland is entitled to the should we keep down public expenditure in islands. Finally, there are same range of services enjoyed by other com- order to keep down municipal tax rates and parable regions; if not more so, taking into ac- thus try to attract people and enterprises to fields, such as those linked with count the distance (in cost and time) needed to move to Gotland, knowing that at the same the personal safety and pro- obtain services in alternative mainland centres. time the cuts affect the extent and quality of In spite of its small size, the hospital in Visby services? This in turn could have a negative tection of goods (fire brigades, has most of the different clinics and specialities impact on the attractiveness of Gotland (and of emergency medical services, that you would expect to find in considerably course for those already living here), but per- etc.) for which speed is of the larger centres elsewhere. Hospital clinics in haps not forD those who have a certain aware- Visby are comparatively small but still require ness about the issues of taxation and public essence. In such cases, the certain basic facilities and personnel in order to expenditure. A lot of the political debate be- only choice is the creation of function adequately. Fixed costs relative to the tween Nthe two political blocks – social demo- disproportionate structures, or “client” base will be higher than elsewhere. The cratic with left-wing party and bourgeois par- same applies to some extent to Gotland’s Gym- ties – alternately being in local government the implementation of excep- nasium School (16-19 year-olds), as it is be- powerA over the past election periods, is about tional resources, such as the lieved, quite reasonably, that practically all the the right policy and strategy in this respect. subjects and specialities normally taught in The illustration (graph) shows Gotland evacuation of ill or injured Swedish gymnasium schools should also be L”overcosts” compared to the national average. persons by plane or helicop- offered to the people here. ter. 140 COSTS PER INHABIT ANT FOR MUNICIPT AL SERVICES OF GO TLAND AS % OF NATIONAL A VERAGE COST S The Spanish example in the 120 O field of health is particularly interesting because it acknowl- 100 edges that insularity has an G 80 extra cost. In a new agreement for the funding of the Spanish 60 autonomous communities, the national fiscal and financial 40 council quantifies the insularity variable at 0.5%, and takes 20 Services for elderly, disabled elderly, Services for activities Political Education Total care total and health Medical etc Hospitals activities, etc sports Cultural protection infrastructure, Technical care Children´s other Welfare, account of this variable as a 0 function of the distance in kilo- Source: Swedish Association of Municipalities - 1999 In Gotland, the effects of insularity and a low population density combine to make metres from the capital of the the operation of the various services provided by the administration particular costly. island province to the coasts In 9 cases out of ten, these costs are higher than the average for Swedish munici- of the Iberian Peninsula. The palities, and this differential can be as high as +30%. Local taxes in Gotland are among the highest in Sweden. Council therefore attributes 23% of the “insularity” head ing European or Spanish tour- services still fall far short of to the Balearic Islands, and ists and temporary workers, European standards. 77% to the Canary Islands. who are possible users of pub- This means that insularity lic or private health services, The current situation is char- should increase the Balearic not to mention illegal immi- acterised by: Islands’ health budget by 34.5 grants. The whole of this float- million euro. However, stud- ing population supposes a cost - The obligation on Member ies carried out by the health differential which the Balearic States to reduce public defi- department of the autonomous health services (SERBASA) es- cits, which implies the need government of the Balearic Is- timates at 5% of the public for national and regional au- lands estimate the global cost health budget. thorities to restrict budgetary of insularity at over 42 million expenditure and to make more euro. The highly developed Despite the progress made in efficient use of the funds. tourism sector generates a recent years in all fields thanks However, the authorities can- “floating” population compris- to Community funding, public not maintain or develop poli- 37 Off the coast of Europe

cies for the islands, the cost of LACK OF EDUCA TION AND HEAL TH FACILITIES which is particularly high and IN SMALL ISLANDS the efficiency (cost per benefi- Due to the small size of Gozo’s population, lation for substantial time spans during the ciary) low on account of the the younger generation must be prepared year. This impinges negatively upon the to move to the larger sister island of Malta quality of social, cultural and family life fragmentation of the island for higher technical, vocational and aca- on the island. space. demic education. Although a proportion of The island of Gozo is equipped with its own these students does return to Gozo, an even generalO hospital. However, very often it larger proportion decides to reside in Malta. happens that patients from the island have - The obligation on Member This presents significant obstacles for the Zto be transferred to the more equipped States to liberalise public more ambitious and talented people of small hospital in Malta for more specialised treat- islands like Gozo that are over-dependentO ment. It has to be appreciated that medi- services in the framework of upon larger sister islands. More importantly, cal expertise and medical equipment are the single market to allow Eu- this results in a noticeable brainG drain, which exceptionally expensive, therefore prohibi- ropean consumers benefit from smaller islands must somehow cope with. tory to duplicate. At the same time, it has The significant number of younger people to be acknowledged that the transfer of better-quality and cheaper permanently or temporarily moving to Malta patients to Malta gives rise to significant services. These services in the does not only erode the economic poten- hardship and extra financial costs not only field of electricity production, tial of the smaller island. It also deprives for the patient but also for the patient’s society of a significant portion of its popu- relatives. telecommunications, air or sea transport, television etc. were their isolation which creates tion systems known hitherto hitherto provided by monopo- small markets. and to reduce the handicaps lies, in most cases the State. of insularity. This means that Technological changes in republic services in the islands This liberalisation fails to take cent years in all fields – par- should be organised on mod- account of the fact that, in ticularly in the fields of tel- ern bases so that they can play practical terms, the islands do ecommunications and informa- their role fully. not really form part of the sin- tion technology – have the gle market (and cannot really potential to change the spatial benefit from it) on account of planning and service produc-

Vulnerable and specialised economies

sland economies are characterised by their high de- THE PROBLEM OF DEPENDENCY ON A SINGLE A CTIVITY gree of dependence on a few I Being a small community with an open Shipping is of great significance to the Åland activities which reflect the scar- economy, Åland is greatly dependent upon economy. In 1996 the share of shipping was city of their resources. These exchanges of goods and services with sur- 40% of the total GDP in Åland. Shipping is virtual single activities can fluc- rounding regions. In many sectors there is strongly linked to land-based industries, a low degree of self-sufficiency, and the local affecting tourism, trade and industry. The tuate over time (tourism, fish- market is limited. Åland’s geographical situ- financial sector too is closely connected to eries, breeding, mines, etc.), ation between two economic centres, south- shipowning operations. Thanks to the capi- but the islands can never draw ern Finland and the Stockholm region, af- tal-intensive shipping industry, the gross fords certain advantages but also makes national product per person in Åland is high, on as diversified an economy the Islands vulnerable. On the one hand, while the level of income does not exceed as most mainland regions. On there are two large market regions at close the averageD for the whole of Finland. How- quarters, to the benefit not least of the ship- ever, developments in ferry operations have the mainland, the decline of ping industry. On the other hand, Åland is stagnatedN in recent years, a factor which one sector of activity can be very heavily dependent upon economic has had significant effects upon the offset by the jobs market in conditions in adjacent markets, and theAeconomy as a whole. population movement varies considerablyL It is thanks to the ferry services that tour- neighbouring regions, while, in with fluctuations in the economy. ism has undergone vigorous expansion. an island, any severe crisis in The long-standing basic industriesA in the Today the number of arrivals considerably the dominating activity is set- Åland economy have been shipping, agri- exceeds 1.8 million per year, and tourism culture and fishing. Tourism has been an creates many jobs. Hotels and guest-houses tled by unemployment or emi- expanding sector ever since the 1960s, but offer some 2,600 beds, and there are more gration. it is highly seasonal. In pace with the in- than 2,000 holiday cottages for rent. How- crease in tourism, primary industries have ever, travellers often choose accommoda- declined, though they are still of importance, tion on board a cruise ship. Most of the 38 particularly for employment on the outer travellers do not stay in Åland. islands. Structural constraints with multiple consequences

Ebbing markets or crises affect THE PRIMAR Y SECTOR IN THE BALEARIC ISLANDS island firms more rapidly for IS IN D ANGER OF EXTINCTION several reasons, the main one Over the last 50 years, the Balearic Islands reduced by 16% (from 214,000S to 170,000 being the fact that the average have experienced a major change, from an hectares). economy based on agriculture to one that is These statistics show thatR the primary sector island company tends to be primarily dependent on tourism. In the last is in danger of extinction.A One of the main smaller than its mainland two years, the tertiary and secondary sec- reasons is withoutE doubt the Islands’ com- equivalent. The same applies tors have increased in importance, while the petitive disadvantages, stemming from their primary sector has declined (in 2000, it fell isolationL in relation to the mainland market to fisheries or agriculture: the by 4%), representing only 1.65% of GDP. Aand their small size, which limit the opportu- average size of ships or farms It should be underlined that over the lastB ten nities for economies of scale. years the agricultural sector has lost around However, this is an important sector for the is small. 54% of its workforce (most of whom are now Balearic Islands, not only because it contrib- working in the constructionS industry or the utes to the diversification of the economy, but Moreover, island enterprises service sector). To be Emore precise, in 1990, also from an environmental point of view. This there were 12 518L employees in the agricul- is why the Balearic Islands’ Government has are faced with higher costs tural sector,L compared with today’s figure of granted a number of subsidies to support this (mainly due to transport), and just 5,721.I Furthermore, between 1996 and sector. a smaller local market. Their 1998 the surface area of cultivated land was profit margins therefore tend to be tighter, and they are par- gional and local authorities, lic service has to be provided to small, isolated, communities. In the Azores, on the small FISH FARMING IN COR SICA island of Corvo, the doctor who After wine growing, fish farming represents are a shortage of capital investment, and the looks after the health of the Corsica’s second export head, virtually on a total absence of technological investments on par with citrus fruit. the part of companies (less than 1% of turno- roughly 350 inhabitants is a In 1987, Corsica produced 230 tonnes of farm- ver dedicated to Business Enterprise Expendi- regional civil servant. reared fish. Now, at the beginning of the 2000’s, ture on R&D (BERD), combined with a lack of Corsica is one of the main European produc- publicly financed technological support mech- ers of bass and is also France’s leading pro- anisms). E While the important role duction region in the Mediterranean with ap- It is this technological progress (spurred by a played by the non-commercial proximately 1,000 tonnes per year (11 com- publicS research institute, the IFREMER) which panies, 2 hatcheries). For their part, Italy, has enabled this sector to take off on the na- sector ensures a degree of sta- Greece (35,000 tonnes per year with 235 fishRtional and international plane. For the profes- bility of employment and lim- farms), Spain, Turkey and other neighbouring sionals on the island, the only way they can its risks of unemployment, it countries produce over 80,000 tonnesO per year catch up the current backlog in terms of busi- of saltwater reared fish. ness enterprise R&D and become competitive is also reflected in increased How, having started out as Cthe leader on a by 2005 is by the development of a deliberate dependency on financial trans- market which has grown a hundred fold in the policy of technological support. last 12 years, has the Corsican fish farming This ambitious programme has been described fers from national authorities industry failed to keep up with the growth in in the various contractual documents between or, alternatively, in high local the sector, declining to the stage where it now the Collectivité Territoriale (regional authori- taxation. The islands are represents a mere 1% of the market? ty) of Corsica, the State, and the European Among the causes for this sad state of affairs Union. therefore particularly vulnerable to austerity policies and ticularly vulnerable in case of and by their inability to make budget cutbacks. recession, as the closure of one economies of scale owing to or two large businesses can their isolation and small The structural constraints of have disproportionate effects. populations. A minimum pub- insularity are also manifested

In several islands, the predomi- THE PROBLEM OF S ALMON F ARMING IN THE BAL TIC SEA nance of certain sectors such AND ITS IMPACT ON EMPL OYMENT as tourism leads to a sudden The Baltic Sea – unlike for example the maintain the stock of salmon in the Bal- Norwegian Fjords or specific areas in the tic Sea. The breeding farm has been in decline in traditional activities, Scottish islands – is not suitable for trouble because the DanishM Ministry of in particular agriculture. This salmon farming, due to the fact that in Fisheries and AgricultureL will not allowed situation is not without con- autumn and winter there are too many salmon fry from the Bornholm nursery to waves. The weather is quite simply too mix with theO wild stock of salmon from sequences on the environment. bad. the Swedish rivers. The Swedish authori- As a result of EU regulations, salmon quo- tiesH were afraid that the original wild The other characteristic of the tas have been drastically cut back, butNstock of salmon will develop genetic dis- the fishermen on Bornholm and other eases if they mix with “artificial” salmon. islands arises from the com- Baltic islands do not have the Rpossibility For Bornholm’s fishermen, and indeed the paratively large size of the non- of substituting their regular income by, whole of the island, the closing down of for example, owning aO share in a salmon the salmon nursery in late 2000, due to commercial sector. This is farming industry. complaints from the Swedish Fishing Au- partially explained by the Salmon farmingB requires a salmon nurs- thorities has hit Bornholm incomes hard. statutory obligations on re- ery. Bornholm had one for many years to 39 Off the coast of Europe

in other fields, such as human resources, or research and de- Areas most dependent on fisheries (NUTS III) velopment. The areas most dependent on fisheries include many islands … Country Region Dependency rate* A number of islands find them- NUTS III (Employed as % total employed) selves in the paradoxical situ- E Pontevedra 15.1 EL Lesvos 9.8 ation of being confronted with E Huelva 9.8 high unemployment, while EL Lefkada 8.8 having large manpower needs, EL Samos 8.3 particularly for qualified man- P Algarve 8.3 EL Cyclades 8 power, top executives or pri- E A Coruña 7.3 vate services providers such as EL Chios 7.1 self-employed professionals. In E Taragona 6.1 E Cadiz 5.8 fields of activity requiring a P Açores 5.6 high level of competence as EL Cephalonia 5.4 well as a constant practice E Girona 5.3 (e.g. : a medical surgeon), the I Trapani 5.2 EL Chalkidiki 5 volume of activity locally avail- UK Highlands & Islands 4.2 able is sometimes far too low D Cuxhaven 4.1 to allow such professional F Finistère 3.9 EL Dodecanèse 3.9 skills to be kept at an accept- * Figures show minimum dependency rates since data on jobs in the sector are not available able level. in all regions Source : DG FISHERIES (table taken from the publication "Unity, Solidarity, Diversity for Europe, its People and its Territory - 2nd report on economic and social cohesion" - The attractiveness of an is- European Commission ) land’s environment and life style is not always sufficient to counterbalance the con- Half the 20 European regions most dependent on fisheries are Greek, Scottish and Portu- guese islands or archipelagos.

The importance of the public sector in the islands A EUROPEAN ISLAND Public services in AND ULTRA-PERIPHERAL CIVIL SER VICE: employment - % THE REGIONAL CIVIL SER VICE IN GUADEL OUPE At the same time, we note that, apart from istration of the overseas territories pre- Sardegna 25 subsidised jobs, 92.3% of the local civil viously referred to as the Colonies. servants in Guadeloupe belong to This group of top civil servants manifests ITALIA 19 category C. Of these, the best elements the weaknesses of the systemE on the ba- Saaremaa 26 courageously manage their colleagues de- sis of two parameters. The first concerns ESTONIA 20 spite the fact that they do not enjoy cat- its inter-active modus operandi, which, egory B recognition. They manage an army while it allows it to Preact to emergencies, Illes Balears 17 of temporary public employees and piece- precludes it from standing back with suf- ESPAÑA 21 workers, only 60% of which are estab- ficient distanceU and weakens its ability to Açores 25 lished. predict and plan ahead. Even disregarding the history of our over- Secondly, the fact that it is an island pre- PORTUGAL 21 seas regions in explaining attitudes and cludesO it from comparing itself with the Shetland 17 behavioural patterns, we find ourselves in outside with a view to making an objec- a context which leads us to assess civil tiveL comparison between the technical or Isle of Wight 31 servants who have responsibilities but no administrative responses. UNITED KINGDOM 23 recognition. EWe would also like to make an additional Corse 32 Category B civil servants represent 4.41% comment with respect to the breakdown of total staff and only 2.06% are employed of the decision-making level (A), the or- Martinique 34 D in the municipalities. They often show bril- ganisation level (B) and the execution Guadeloupe 34.6 liance in discharging responsibilities regu- level (C). FRANCE 28.8 larly entrusted to categoryA A officers. The Regional and Departmental assem- As regards the latter category (3.2% of staff blies show the following internal break- Åland 34 numbers), they often Ufind themselves forced down: SUOMI / FINLAND 31 to act as political decision-makers rather A (14.4%), B (17.8%) and C (67.8%) Gozo 41 then exercising the cold impartiality nor- While the municipalities show evidence mally incumbentG on public functionaries. of their flexibility via the following inter- MALTA 34.4 The result is a fragile edifice which, at the nal breakdown: Gotland 45 same time, reveals its constructive A (1.26%), B (2.06%) and C (96.68%) SVERIGE 41 strengths, its powers of adaptation and the In other words, a basic army of civil serv- 40 weaknesses which characterise the admin- ants with little or no management. Source Eurisles Structural constraints with multiple consequences

straints of insularity, such as PUBLIC SECT OR ACTIVITY IS A SIGNIFICANT P ART OF THE WESTERN ISLES poorer accessibility, transport The impact of major structural change out- overall fall in Western Isles economic activity costs, limited choice in terms with the islands areas often have significant due to closure was higher thanS this, due to of health, education, etc. This economic impacts. Such cases involve the the indirect and induced effectsE stimulated by recent wind down of RAF (Government de- the company.S OverallL figures suggest that the is especially true given that fence) activity at the Range in Benbecula, the closure ofI the company resulted in falls of salaries tend to be lower and collapse of the seaweed industry in the West-RN6.1% in gross output levels and 5.7% in em- promotion prospects more lim- ern Isles, and the impact of the closureE of an ployment across the whole economy. Lewis oil fabrication company Lewis OffshoreT Lim- Offshore itself employed 450 people in 1997 ited. Families are therefore ited in 1999. The totalE turnoverS of Lewis Off- and the results suggest that the total reluctant to settle, and com- shore in 1997W was £23,030,000, total factor economy-wide loss in employment would be earnings of the company were £6,280,000 and an additional 105 FTE jobs over and above panies or public bodies often total employment 450 FTEs. The results in the this figure (MLURI). have great difficulties in recruiting executives or qualified THE BALEARIC ISLANDS ARE AMONG THE EUR OPEAN REGIONS WITH THE technicians. LOWEST RA TE OF INVESTMENT IN RESEAR CH AND DE VELOPMENT The Balearic Islands allocates only 0.25% of entrepreneurial awareness. Not unrelated to the previous its GDP to research and development, com- The Balearic Islands’ GovernmentS is there- point, most islands suffer from pared with the Spanish and European aver- fore putting forward the firstR Balearic Islands’ ages of 0.89% and 1.84% respectively. Total Research and DevelopmentA Plan, by means the weakness of their activi- annual R&D investment in the Islands of which it aimsE to increase investment in this ties in the field of research and amounts to approximately 32.45 million euro. field, doublingL the public contribution in the More than 6 million euro of this is private space of one year, and to encourage entre- development. In this field, the sector investment, with a similar amount preneursA to increase their efforts. islands lag far behind the main- coming from the public sector and the remain-BIn addition, the Balearic Islands’ Technologic land, except where there is a der provided by the University of the Balearic Park (BIT Park), designed by the British ar- Islands. S chitect Richard Rogers, will soon open its deliberate policy on the part Among the main causesE for this low level of doors to enterprises working in the telecom- of the public authorities (such investment are theL fact that the industrial munications sector interested in setting up as in Crete), or where speciali- sector, whichL is the main investor in research, their headquarters in the Park. In this way is not sufficientlyI developed in the Islands; a the Park will also encourage diversification in sation in an economically im- lack of political will; and a lack of social and the economy of the Balearic Islands. portant sector makes it possible to reach a threshold capa- RESEARCH IN COR SICA ble of generating or sustain- Corsica, the Cinderella of Research & 0.25% with an average of 2.3%. This pa- ing research activities. Development (RD), in terms of both expenditure thetic performance is explained by the and the numbers of persons involved, suffers paucity of private investments in RD. from a fabric of small enterprises, belonging The comprehensive inventory of research- to sectors which are insufficiently innovative ers compiled from the statistics contained (agri-food, non-specific services, etc.) and a in the White Paper on Research in Corsica very low level of inter-enterprise relations, both for the period 1994-1999 gives the follow- within the region and with the outside. The ing results: island’s backlog in terms of public and private RD is measured by means of the GDERD/GDP Industrial R&D Researchers ratio1 . Researchers and Researchers/ Public RD: a clear effort engineer 10.000 inhab. E-COMMER CE IS THE FUTURE For the national territory overall, this ratio Corsica 25 1 OF THE ISLANDS: comes to 1.8%, reaching a peak of 4% for the Limousin 304 4.2 MYTH OR REALITY? Ile de France and Midi-Pyrénées regions, while Poitou-CharentesE 490 3.0 the ratio in Corsica is a mere 0.2%. In fact, Champagne-Ardenne 524 3.9 The services sector is dominated by the tour- Corsica is the only French region where this AuvergneS 674 5.1 ism industry, which is very cyclical. The ratio is less than 0.25%. In all, Corsica’s re- PACA 5 10.6 cyclicality element poses formidable prob- search potential is as follows: France 68 11.8 lems, since the better-trained employees do Public R&D Researchers* R Source : Observatoire des Sciences et Techniques, not generally think highly of a career within N.Levratto (2000) Number Researchers/10.000 inhab. the industry. Unlike Malta, Gozo has not reg- It is therefore clear that, in terms of R&D, Corsica 270 10.4 istered success in attractingO e-commerce- OCorsica suffers from an under-represen- based services. Thus, while Malta is very ag- France 71 12.3 tation of private R&D. The development of gressively marketing e-commerceZ services, *Teacher/researchers, researchers with public public R&D has not yet generated the lo- (success has been registered in financial serv- scientific & regional research institutes and EPICC comotive effects that one could have hoped ices back-office operations and the provision Private RD in companies: a desperate for in the private sector, whether via the of services to the betting industry on the elec- search for innovation creation of research and innovation net- tronic network) GozoO is not equipped with the The region’s GDERD/GDP ratio is very low: works designed to maximize the social necessary promotion and regulatory infra- less than 0.15% for the period 1989-1994. yield of research, or via the exercise of structure set-up to register any gains in this Corsica lags far behind most French re- cumulative effects which could serve to sphere. At the sameG time, backup services like gions where this ratio is equal to at least enhance the region’s competitive edge. the provision of legal, accounting, audit and management consultancy services are exclu- 1 GDERD (Gross domestic expenditure on R&D) = Total RD expenditure by enterprises and sively based in Malta, making Gozo a less at- public institutions. tractive environment for the establishment of GEDERD = Part of GERD made by Enterprises. these innovative yet promising tertiary sector GDERD /GDP= Ratio illustrating the share of Gross Domestic Product spent on RD. 41 services. Off the coast of Europe

THE MARITIME BORDER S OF THE CENTRAL MEDITERRANEAN SEA

The important part played by the small islands of the Sicilian and of Maltese archipelagoes, including Gozo, is clearly shown in the division of fishing zones and off-shore oil exploitation zones which have ensued two decisions from the International Court of justice (1978 decision of borderline Italy/Tunisia, and 1987 decision of borderline Libya/Malta).

42 ENVIRONMENTS exceptional but fragile and restrictive

«Islands have a silence which can be heard.» Italo CALVINO (1968)

slands are privileged with natural and cultural environments which are exceptional, but also fragile

and bearing many constraints. Their preservation is not necessarily compatible with the require- Iments of economic development. 8% of the European sites classified as “World Heritage” by UNESCO are located in Islands. In 8 of the 21 island regions of the EU, the people speak a language different to the national language of their Member State. Half of the European coastline belongs to the Islands, where the concentration of inhabitants along the shores, and the pressures exerted by tourism, result in complex and costly requirements in terms of management. Islands are more exposed than the mainland to environmental disasters, and very vulnerable to climatic or seismic events.

An acknowledged environmental heritage

he environmental heri- tute constraints. The areas in a reduction of the surface tage of the islands can be covered by national or EU en- areas that can be freely used Ta source of both wealth vironmental legislation in a for economic activities or even and difficulties for them. number of islands account for for human habitat. very high proportions of the Island isolation, a phenomenon territory (or even the entire ter- Because of the limited nature familiar to naturalists, has of- ritory in the case of certain small of the island spaces, man and ten given rise to original islands). The obligations im- nature are forced to share a lim- endemisms. It has favoured the posed by these classifications, ited space, a factor that gener- preservation of animal and veg- while they vary widely in terms ates, sometimes intense, con- etable species, both terrestrial of intensity, nevertheless result flicts of interest between the and marine, and has also been TAX ON TRANSPOR T IN COR SICA a contributory factor in the weakness (if not total absence) Since 01/07/93, public air and sea trans- tion No. 94/160 of the Corsican Assembly port companies serving Corsica have been of 20/12/94). of industrial development. This required, irrespective of their nationality The transport companies are required to is evidenced by the relatively or legal status, to pay a tax on all passen- declare and pay the tax due by them at the gers boarding or disembarking on their same time as the VAT. The global amount high number of island sites in vessels. The tax is due on transactions of the tax should be mentioned in the Ap- the list of areas covered by EU performed with respect to commercial pended declarationE under the heading « tax environmental legislation or the flights, including “charter” flights, or regu- on boarding and disembarkation of passen- lar sea routes. gers inS Corsica «. number of sites classified by The tax is calculated on the number of pas- The income from the tax due by public air UNESCO as forming part of the sengers who hold a paid ticket, irrespec-Rand sea transport companies comes un- world heritage of humanity. tive of their place of residence. The tax is der a distinct chapter entitled: “Interven- added to the price paid by the passengerO tion fund for development in Corsica” in and is paid when the tickets are purchased. the regional authority’s budget, and is While these classifications can The amount of the tax is: C managed by a committee chaired by the - 10 € approximately per passenger, irre- chairman of the Executive Council. point to a pleasant living envi- spective of the mode of transport used and The total amount of the tax in 2000 came ronment, be a source of pres- of the distance travelled (motion No. 92/ to approximately 25 million €. It is ear- tige, or act as a tourist attrac- 106 of the Corsican Assembly of 01/10/92). marked for expenditure concerning purifi- - 2 € approximately per passenger, for cation, housing and the environment. tion, they nevertheless consti- 43 transport of distances less than 20 km (mo- Off the coast of Europe

various economic activities. POTENTIAL AS NA TURE RESER VES AND CONSER VATION AREAS These conflicts are obviously As the Western Isles contain an important natural resource base and varying land- more acute the smaller the ter- scape, there are several different types of environmental designations in place through- ritory available or the higher the out the area, including: · 53 Sites of Special Scientific Interest covering 37,350.60 ha, or 12.9% of the Western population density. The con- Isles area; struction of a windmill farm, the · 4 National Nature Reserves covering 3,237 ha, or 1.2% of the Western Isles area; opening of a quarry, or the crea- · 15 Special Protection Areas covering 90,481.9 ha, or 31.2% of the Western Isles area; tion of a waste disposal or stor- · 11 Candidate Special Areas of Conservation covering 60,904.5 ha, or 21% of the age centre are all projects which Western Isles area (two new proposed SACs are under consultation at present); · 5 Ramsar sites; soon come up against wide- · 3 National Scenic Areas total area of Western Isles covered being 116,600 ha spread opposition, with resi- (includes large marine component); S dents or the law leaping to the · 1 World Heritage site. The EU Natura 2000 network consists of a series of sites designatedE as important defence of the environment, in for nature conservation under the EU Habitats and Birds Directives. The network a context where the alternatives encompasses areas classified as SPAs (for birds), and SACsL (for habitats and spe- are limited or non-existent. cies other than birds). The total area of the Western Isles included in the Natura network at present is 92,479.26 ha, or 31.9% - reflecting the high degree of overlap between SPAs and SACs. This figure may change if newS sites are proposed. The problems generated by the The 3 National Scenic Areas covering St Kilda; South Lewis, Harris and North Uist; tourism industry are well and South Uist Machair; recognise the unique and Inationally important qualities of the Western Isles landscape. known, both on account of their Summary of Environmental Designations intensity and their seasonal Lewis & Uist / Barra Western Isles Harris nature. Seasonal increases in Number of SSSI 31.5N 21.5 53 island population over a fairly Area of SSSI (ha) 18,252.1 19,098.5 37,350.6 % of Area 8.54 25.12 12.9 short period of the year have Number of NNR 2R 2 4 long-lasting consequences for Area of NNR (ha) 983 2,254 3,237 public finances and for the en- % of Area 0.46 2.97 1.12 Number of SPA E7 8 15 vironment. These include Area of SPA (ha) 73,779.1 16,702.8 90,481.9 overdimensioning of road or % of Area 34.52 21.98 31.23 Number of cSAC T 5 6 11 sanitary infrastructures, the Area of cSAC (ha) 45,232.8 15,671.68 60,904.5 need to cater for sudden surges % of Area *** Number of NSA S † † 3 in water, electricity or waste Area of NSA (ha) † † 116,600 management needs; over % of Area E *** * not possible to calculate this figure due to high proportion of marine frequentation of classified sites areas included. or fragile ecosystems; pressure † not possible to calculate accurately due to nature of South Lewis, Harris & North Uist site. on real estate resources, etc. The Western Isles areW (also) blessed with a remarkably well preserved archaeological heritage. Many generations of careful land management practices have resulted in a landscape in which the remains of the past continue to be visible and compre- These extra costs or nuisances hensible, forming an outstandingly important economic and cultural resource for are sometimes hidden but must the islands. always be taken into account The Sites and Monuments Record held by Comhairle nan Eilean Siar records a total of 5,694 archaeological sites and monuments in the islands, dating from between in assessing the actual impact 5,000 years old and 50 years old. Of these sites and monuments, only 247 have of this activity, apart from its been protected by law as Scheduled Ancient Monuments, a designation defined as effects on GDP. Their intensity applying to “sites of national importance”.

ÅLAND: AN EXTENSIVE A UTONOMY can be evaluated by compar- The archipelago has the necessary means to estate and carry on business. ing the respective effect of tour- control the use and ownership of its land. Regional citizenship is acquired by a child at These means, largely due to the extensive sta- birth if one of its parents possesses Åland citi- ist numbers and the residential tus of autonomy of Åland, have been rein- zenship. Immigrants who have lived in Åland population, and by measuring forced in the adhesion treaty. for five years and have satisfactory knowl- their seasonal variations ac- On the one hand, it is necessary to possess edge of SwedishD can obtain Åland citizenship Åland regional citizenship in order to: upon application. Only Finnish citizens and cording to the geographic or – vote in and stand for elections to the EU citizensN may acquire regional citizenship. climatic context. Lagting, Persons who have been resident outside Åland – own and hold real estate in Åland, Afor longer than five years lose their regional – carry on business in Åland. citizenship. In order to monitor these de- Restrictions upon the right of owningL and On the other hand, nature conservation is velopments, limit seasonal fluc- holding real estate have been imposed with a fairly well developed. Åland has its own con- view to preserving land in theÅ possession of servation law, and there are special regula- tuations and reduce the result- the Ålanders. tions for protecting wild flora and fauna. Com- ing extra costs, several regional 44 In individual cases the Landskapsstyrelse may mon right of access in Åland is more limited grant exemptions from the rule that only pos- in certain aspects than in surrounding regions. authorities use regulatory or sessors of Åland citizenship may own real Exceptional but fragile and restrictive environments fiscal instruments, either to PROTECTED AREA : CONFLICT S BETWEEN EUR OPEAN LEGISLA TION AND safeguard the “birthright” of POTENTIAL DE VELOPMENT their residents (e.g. the Åland Some 70% of the Isle of Wight is pro- in some areas are considered vital for the islands), or to finance the con- tected by either UK or European land- protection of property, more andT more servation of natural or cultural scape designations which reflects the high extensive and expensive studies are hav- quality of the Island environment. Indeed, ing to be undertaken to convinceH the various resources (e.g. Corsica or the the natural environment is a “core” sell- agencies that the particular proposals will Balearic Islands). ing point for the Island and we must en- not significantly adverselyG affect their sure that its intrinsic quality is not un- interests. I dermined by various actions. The main problem seems to be that the The total area of the Isle of Wight is 38,028 Conservation (Natural Habitats) Regula- hectares and the coastline length, including tions W1994 fail to include properly in UK estuaries, is 146 km. law Article 2(3) of the Habitats Directive Often, due to the designations, UK agencies that “measures taken pursuant to this such as English Nature and the Environ-FDirective shall take account of economic, ment Agency have objected to various social and cultural requirements and re- development proposals. DifficultiesO have gional and local characteristics”. The been particularly experienced in obtain- agencies’ response to the Council is that ing approval for coast protection and they have to protect the interest of the stabilisation schemes,E without which designations and nature conservation and property would fall into the sea, and for are not able to take into account economic development adjoiningL the River Medina, arguments. despite the development providing up to The effect of the designations therefore 250 reasonablyS well paid jobs. In pursu- is to concentrate development into a rela- ing theseI development proposals, which tively small part of the Isle of Wight.

SIXTEEN EUR OPEAN ISLANDS INSCRIBED ON THE WORLD HERIT AGE LIST The contribution of the islands to the cultural and environmental wealth of Europe is proportionally much greater than the size of their territories and populations within the EU. UNESCO has inscribed sixteen sites in the Island regions on the World Heritage List. This represents 8% of the sites of the EU, which account for 209 of the 721properties which the World Heritage Committee has inscribed on the World Heritage List (529 cultural, 138 natural and 23 mixed properties in 158 States Parties). This list was drawn up in December 2001: Azores: Central Zone of Angra do Heroismo Balearic islands: Ibiza, Biodiversity and Culture Canaries: San Cristóbal de la Laguna Corsica: Cape Girolata, Cape Porto, Scandola Nature Reserve, and the Piana Calanches Gotland: Hanseatic Town of Visby Gozo: Megalithic Temples of Malta Madeira: Laurisilva of Madeira South Aegean: Medieval City of Rhodes; The Historic Centre (Chorá) with the Monastery of Saint John “the Theologian” and the Cave of the Apocalypse on the Island of Pátmos Orkney: Heart of Neolithic Orkney Sardinia: Su Nuraxi di Barumini Sicily: Archaeological Area of Agrigento; Isole Eolie (Aeolian Islands) Northern Aegean: Monasteries of Daphni, Hossios Luckas, and Nea Moni of Chios; Pythagoreion and Heraion of Samos Western Isles: St Kilda

45 Off the coast of Europe

HIIUMAA

GOTLAND © Eurisles

MAPS OF PROTECTED AREAS Protected areas occupy a large surface area in the islands. The various classifications, although they vary widely from one region to another, play a vital role in safeguarding a fragile island milieu, often endangered by population and tourism.

MARTINIQUE

ISLE OF WIGHT

CORSE

ILLES BALEAR S

GUADEL OUPE

47 Off the coast of Europe

Between the land and the sea

he size of the interface In the granite island of Harris Some islands are unable to pre- between the land and the (Western Isles) the project for vent large numbers of ships that Tsea which characterises an enormous aggregate quarry present high pollution risks from the islands also exposes them on the coast was rejected fol- frequenting their coasts. This to the threats which stems from lowing a lengthy public survey, applies, for example, to Gozo these two types of environment. despite high local unemploy- and Malta on the Suez Canal It is estimated that, internation- ment (this procedure is pres- route, Bornholm and the many ally, 23% of the pollution af- ently under appeal). One of the small Danish islands in the fecting the marine milieu comes arguments raised during the mouth of the Baltic, or the Io- from the sea (including 12% survey was the risk of marine nian islands at the gateway to from shipping, 10% from dump- pollution arising from the emp- the Adriatic Sea on a major trading at sea and 1% from off- tying of ballasts in the Minch ing hub between Greece and shore oil), while 77% is of ter- strait by ships loading miner- Italy. The point of passage is restrial origin (44% from run- als, and the possible conse- sometimes notoriously narrow, off water and landfills, and 33% from the atmosphere). AN EXAMPLE OF THE A CCUMULA TION OF THE CONSTRAINT S LINKED TO THE LAND AND THE SEA

This problem applies to any The ecosystems of Martinique, an island of - Pollution by heavy metals (zinc, lead, cad- coastal zone, but the limited 1,075 km² surface area and 350 km of coasts, mium) high levels of which haveE been found space in the islands means that differ greatly between north and south. in sediments and in some marine organisms; The island has 3 major ecosystems of equal - Discharges from distilleries:U distillery they are the first to feel the im- importance which are of considerable inter- residues containing highly acid organic mat- pacts of any change and they est for tourism and from an ecological and ter, which causeQ anoxic conditions when they feel them more keenly. Situa- scientific point of view: are oxidised;I - Coral reefs -N Urban pollution (household waste, absence tions vary from one island re- - Plant communities Iof wastewater collection networks, lack of gion to another, but in general - Mangroves. sewage); The deterioration in the ecosystems hasT been - Terrigenous sedimentation due to deforesta- the greater the ratio between the caused by a number of factors: tion and cut-and-fill work; island’s coastline and its sur- - Climatic phenomena (cyclones,R tropical - The overexploitation of marine resources: face area, the greater its vul- storms, El Niño); A severe pressure by fisheries on reef species - Agricultural pollution (fertilizers, pesticides); and plant communities, use of inappropriate nerability. - Pollution par hydrocarbons from the refin- fishing gear (pots, seine nets, etc.); ery SARA;M - Tourism: yachting, open roadsteads, con- Many different activities can centration of hotels, widespread diving. affect the coastal marine ecosystems of the islands. In quences for fish farming and as in the Straits of Bonifacio Guadeloupe, only 10% of the local fisheries. between Corsica and Sardinia, coral reefs, which represent 200 or Messina between Sicily and km of the 680 km of coastline, In the island of Bornholm, the Calabria, or the “Ushant lane” are regarded as in “good con- Danish Department of Fisher- for some of the Ponant islands; dition”. The causes of deterio- ies and Agriculture prevented a and this gives rise to significant ration can be natural (natural fish farm from operating in case risks of accident. However, in- disasters, disease) or man-in- the fry from this farm would mix ternational law lays down a free duced: for reasons ranging from with the endangered wild right of passage for ships and terrigenous deposit caused by salmon stocks of the Baltic Sea. prevents countries from prohib- deforestation, to deposits of iting them, or makes it extremely nutriments from fertilizers, pes- If pollution originating on land difficult to do so. ticides or from drainage of ur- can be monitored, such is not ban wastewater, or pressure always the case for pollution Similarly, it is difficult to oppose from the tourist industry and originating in the sea. the right of passage of ships 48 coastal development works. containing dangerous waste, Exceptional but fragile and restrictive environments such as nuclear waste. In 1999, on the islands of high-risk mari- degassing when approaching the Heads of State of the Car- time and industrial risks. The the ports. ibbean adopted a declaration presence of oil terminals in deploring the “ecological dete- Flotta (Orkney) and Sullom Voe Such risks are common to all rioration (of the Caribbean) and (Shetland) generates heavy traf- coastal communities in Europe (refusing) to allow it be used for fic of methane and oil tankers. or elsewhere, but in the islands, the continuous transport of Gas and oil from offshore North their potential impact tends to nuclear and toxic waste …”. The Sea platforms are conveyed to be much greater because activi- adoption of this declaration these archipelagos via under- ties that depend on the coastal highlighted diverging positions water pipelines and re-exported. zone or the surrounding waters on the part of the Martinique There is a risk that these ships (tourism, fisheries, fish farming, region and France on this ques- will sink in these waters dur- etc.) represent the lion’s share tion. ing the frequent storms (cf. the of the regional economy and of sinking of the “Braer” in Janu- local jobs, and there is very lit- In other cases, the source of the ary 1993), not to mention the tle alternative. danger lies in the very presence more “pernicious” risk of ships

COASTAL INDEX (length of coast/area)

< 0,15 Largegrande island île / large island 0,15 - 0,5 Mediumîle continentalisée island / continental island 0,5 - 1 Smallpetite island terre insulaire / small island > 1 Maritimeîle océanique island /oceanic island

Longueur des côtes Superficie Indice côtier REGIONS ILES / ISLANDS Length of coasts Total area Coastal index Km Km² SARDEGNA Sardegna (island) 1 397 23 940 0.06 CORSE Corse 1 047 8 681 0.12 KRITI Kriti (island) 1 046 8 261 0.13 ILLES BALEARS Mallorca 555 3 641 0.15 NOTIO AIGAIO Rodos 220 1 398 0.16 ACORES Sao Miguel 164 747 0.22 ILLES BALEARS Menorca 286 716 0.40 ACORES Santa Maria 43 97 0.44 GUADELOUPE Marie-Galante 83 158 0.53 VORIO AIGAIO Limnos 263 476 0.55 SARDEGNA San Pietro 36 50 0.72 GOZO Gozo 56 66 0.85 ACORES Corvo 16 17 0.94 IONIA NISIA Ithaki 101 96 1.05 NOTIO AIGAIO Serifos 81 73 1.11 GUADELOUPE Saint-Barthélemy 32 21 1.52 VORIO AIGAIO Thymaina 25 10 2.50 ORKNEY Papa Westray 22 8 2.65 SARDEGNA La Maddalena 135 49 2.76 NOTIO AIGAIO Schinoussa 26 8 3.28 ORKNEY North Ronaldsay 23 7 3.29 © Source Eurisles

The coastal index measures the “maritimeness” of an island on the basis of the principle that the smaller the island, the more it is “geographically insular”. A coastal index of greater than 1 represents the situation of a small island with a very long coastline (very rugged coasts, gulfs, bays, headlands, etc.) Depending on whether or not coasts are jagged, this increases or reduces difficulties related to access, the number of available beaches or inlets or the existence of bays suitable for sailing, etc. For example, Marie-Galante, which is a quite round island, has almost the same length of coastline as Serifos, which is twice as small and has a more uneven coast. Their coastal index varies from single to double. On the other hand, the Sardinian islands of La Maddalena and San Pietro have almost the same surface area and coastlines ranging from 1 to 5, and therefore their coastal index differs greatly. 49 Off the coast of Europe

The threat of natural risks

ny discussion on the environment of the island FALL OR INCREASE IN THE SEA LE VEL IN THE MEDITERRANEAN FR OM JANUARY 1993 T O NOVEMBER 2000 Aregions calls for a long- term or very-long-term vision, taking account of climate changes, in particular those arising from the greenhouse effect.

The situation varies from one geographic area to another. The predominant climate risks vary according to the islands: heavy storms in the North Sea or At- The level of the oceans is rising. However, researchers do not agree on the figures. In the Mediterranean, it rose by between 10 and 15 millimetres per year from 1993 to 2000 in the lantic, drought in the Mediter- eastern part, while it dropped to the east of Sicily. ranean, cyclones in the Antilles, The rise in sea levels owing to global warming will affect the coastal areas. The Greek etc. Over a period of thirty years, islands will be particularly exposed. these cyclical events will constitute the main threat to Euro- changes in the Atlantic and the quakes in the Ionian Islands, the pean islands, and their inten- Indian Ocean, directly threaten- Mediterranean island regions sity will be heightened by the ing the outermost island regions. pay a high price for their loca- greenhouse effect. tion at the meeting of two con- In the Mediterranean, earth- tinents. In the longer term, the rise in quakes are a major problem for the level of the oceans is the all the Greek and Italian islands. These seismic conditions are most dangerous threat to island From Santorini to Messina in sometimes aggravated by the populations (in addition to the Sicily, up to the recent earth- presence of active volcanoes indirect consequences of the climatic changes such as vari- IMPACTS OF CLIMA TE CHANGE ON THE ISLE OF WIGHT CO AST AND ations in temperature, rain level, OTHER ISLAND REGIONS winds, etc.). On the coast predicted climate change im- sult in significant changes in cliff behav- pacts as a result of human activity expected iour which have no parallel over the his- over the next century are anticipated to in- torical time period. The challenge,T there- In this regard, a distinction crease risks from cliff erosion in two ways. fore, is to put in place management sys- should be made between the First, the sea level was expected to rise by tems that will ensure thatH people, property oceans and the enclosed seas. up to 0.3 metres over the next 50 years, and the natural environment receive the resulting in an increased frequency of wave necessary levels of protection over the next For example, the Atlantic takes attack at the cliff foot and more efficient century. G 75 years to regenerate the wa- debris removal from the foreshore. Second, As far as the IIsle of Wight is concerned, its modelling by the Hadley Centre in Great 110 km of coastline, the longest of any coast ters of the Mediterranean from Britain has predicted climate changes that protection authority in England and Wales, West to East. This means that are likely to have a marked impact on cliff is likelyW to be severely affected. Most of the the rise in the water level is regu- instability. These changes include an in- cliff line is composed of relatively soft rocks crease in summer temperatures, an increase which are particularly susceptible to lar and significant in Crete or in the average winter rainfall, a decreaseFlandsliding and coastal erosion from Atlantic in the Aegean, while it is insig- in summer rainfall, an increase in the fre- storm waves. This has been demonstrated nificant in the Balearic Islands. quency of wet days and an increase in the through the extensive landsliding and in- frequency of storm events. ResearchO has stability that has occurred this winter with Conversely, the islands of the previously demonstrated that the recorded an estimated cost to the Council approach- Baltic are returning to the sur- pattern of coastal instability in some loca- ing £3 million. The average cost of manag- tions is closely linked withE the occurrence ing ground instability and coastal erosion face under the effect of the tec- of wet year sequences. Other research has over the last 15 years on the Isle of Wight tonic plates. indicated that soft cliffL erosion could in- alone has been £2 million per year. A con- crease by between 20% and 130% over the siderable amount of effort, partly funded next 50 years. Furthermore, the anticipated with the assistance of the European Un- 50 However, all meteorologists sea level rise overS the next decade, together ion, has been extended on instability moni- agree in predicting dramatic with depletedI beaches and a declining sedi- toring and predictive studies examining ment supply from cliff recession, could re- likely scenarios for future coastal evolution. Exceptional but fragile and restrictive environments such as Mount Etna or Stromboli of these geographic data weigh the costs of business and, there- in Sicily. on the expenditure of the local fore, of residential accommoda- and regional authorities for their tion and generate numerous Although major earthquakes civil security budgets, the pro- restoration costs (small walls, and volcanic eruptions are, for- tection of their infrastructures terraces, etc.). tunately, not so frequent, their and regular reconstruction ex- potential threat has a cost. All penditure. They also increase

MAIN EAR THQUAKES IN THE IONIAN ISLANDS DURING THE COUR SE OF THE 20 TH CENTUR Y 24 January 1912 , magnitude 6.8; maximum intensity 10 in Astroghérakia (Cephalonia) 8 persons were killed in Poros (Cephalonia) and 40 injured. Severe damage was also reported in Ithaca. 27 November 1914 , magnitude 6.3; maximum intensity 9 in Lefkada 12 villages were almost totally destroyed, while, in six others, a very large number of houses collapsed and others were severely damaged. 27 January 1915 , magnitude 6.6; maximum intensity 9 Exoghi (Ithaca) 7 August 1915 , magnitude 6.7; maximum intensity 9 in Ithaca In Ithaca and in 6 villages, and also in Sami (Cephalonia), out of 350 houses, 50 collapsed, 100 made uninhabitable and over 100 others presented large cracks. 19 August 1915 , magnitude 6.1; maximum intensity 7 in Paxi 30 September 1939 , magnitude 6.3 in Cephalonia 22 April 1948 , magnitude 6.5; maximum intensity 9 in Vassiliki (Lefkada) A 2 persons were killed and 45 injured in the southwest of Lefkada where 244 I buildings were completely destroyed, and 998 suffered severe damage. 2 persons died and 145 were injured in four villages: 189 houses collapsed right down to their foundations. S 30 June 1948 : Intensity 6.4 in Lefkada I 7 dead, 100 injured in 5 villages. 280 houses collapsed in the capital of the island, 880 severely damaged and 150 showed slight cracks. In all in theN island, 1,209 buildings were destroyed and 1,869 suffered severe damage. 12 August 1953 , magnitude 7.2; maximum intensity 10+ in Argostoli 455 persons were killed, 21 missing and 2,412 injured. Series of catastrophic earthquakes, the worst occurring on 12 August (7.2 Richter). APreceded by several shocks on 9 August (6.4) and 11 August (6.3), followedI by after- shocks the greatest of which (6.3) occurred on the same day as the main quake. N These earthquakes caused considerable damage, especially in Cephalonia, Zante and Ithaca, which were almost completely destroyed. Out of the 33,000 buildings on these islands, 27,659 wereO totally destroyed, 2,780 suffered extensive damage, 2,394 were slightlyI damaged and only 647 were spared. 27 August 1958 , magnitude 6.4; maximum intensity 5 in Zante 15 November 1959 , magnitude 6.8; maximum intensity 7 in Volimès (Zante) 10 April 1962 , magnitude 6.3; maximum intensity 6 in Volimès (Zante) 17 September 1972 , magnitude 6.3; maximum intensity 7 in Havriata (Cephalonia) The quake caused damage in the southwestern part of Cephalonia. 108 houses suffered reparable damage, cracks appeared in 57 buildings and 2 bridges. One person was injured. 11 May 1976 , magnitude 6.5; maximum intensity 5 in Ambélokipi (Zante) 17 January 1983 , magnitude 7.0; maximum intensity 6 in Argostoli 18 November 1997 , magnitude 6.6 in Zante. This information is taken from the work of V. Papazakhou and K. Papazakhou «Earthquakes in Greece.»

SEISMICITY IN THE ISLANDS The region of the Ionian Islands is the average-magnitude earthquakes (between SDZ highest seismicity area in the whole of 4.5 and 5.9 R) also frequently strike, Argostoli (Cephalonia) IV Western Eurasia (i.e. from Gibraltar to making their presence specially felt when Zante IV China). This region constitutes the limit their epicentre is located close to inhab- Ithaca IV where the Adriatic and mainland Greek ited areas. An example in point was the Lefkada IV plate (from Corfu to the North of Lefkada), earthquake of 25 February 1994, which ISamiA (Cephalonia) IV come up against the Cephalonian fault read 5.4 on the Richter scale andI occurredS Corfu III line (region of Lefkada and Cephalonia), in Lefkada causing some damage. Gaios (Paxi) III and against the subduction of the East- Owing to the high seismicityN of the re- No other region in Greece has SDZ clas- ern Mediterranean lithospheric plate gion, mostA of the Ionian Islands are classification IV. The combination of the SDZ under the Aegean microplate, in the sec- sified Ias maximum seismic danger zones, in which a region is situated with respect tor of the famous “Greek Arc ” (from Nin conformity with the new Greek anti- to the provisions of the Greek anti-seis- Zante and further to the South).O This seismic regulations of 2000. To be more mic regulations also conditions the pre- relative movement of all the Iabove-men- precise, Seismic Danger Zones (SDZ) are cise building modalities in this region, tioned lithospheric plates frequently classified, in ascending order, from I to from the point of view of both planning causes violent earthquakes in the region. IV and the Ionian Islands are therefore and the type of construction, in conform- 51 Apart from violent destructive earth- classified as follows: ity with Greek anti-seismic regulations. quakes which often shake the region, Off the coast of Europe

A unique cultural heritage

he cultural heritage of the Examples in point are the forti- CREATIVE AR TISTIC CAP ACITY islands owes its wealth fied city of Rhodes, the many AT THE ISLAND LE VEL Tand originality to factors ancient monuments or monas- The Azores are well known for the large number which are similar to those of the teries on the Greek islands, the of musicians living on the islands. Each Sof the 104 active orchestras has an average of 30 musicians. environmental heritage. The Hanseatic city of Visby in Of these 104 orchestras, 79 have Eschools for wind geographic position of some of Gotland, Angra do Heroismo in instruments (with an average of 10 students each), them have, at various periods in the Azores, the fortified towers and 36 of them give classesR for string instruments (with an average of 12 students per class). In to- their history when shipping (Nuraghe) of Sardinia, the island tal, around 4,650 peopleO are involved in musical played a dominant role, made of Ibiza in the Baleares, etc. activities, outside the framework of official education providedÇ in the state schools and Conserva- them centres of trade between Many of these cities or monu- tories1. cultures, urban centres of King- ments are now registered as A doms, outposts of empires or world heritage monuments. 1 Source : Direcção Regional da Cultura even the melting pots of civilisa- Added to this are the languages, tions. This heritage can be seen, customs, and traditions which island regions of the EU, the peo- inter alia, in the architectural her- reflect the intermixing – owing to ple speak a language different to itage. sometimes dramatic causes – of the national language of their populations between several Member State: Gaelic in the THE OUESS ANT ISLAND continents. Creole in the Anti- Western Isles, Catalan in the Bal- BOOK FAIR lles or Reunion is a perfect illus- earic Islands, Swedish in Åland, Set up in 1999, the “Island Book Fair” each tration of this phenomenon. Sardinian in Sardinia, Creole in year attracts several dozen authors living in Martinique, Guadeloupe and Re- an island or writing on the theme of the islands to this small island off the coast of Brit- In several other islands, geo- union, and Corsican in Corsica. tany. graphic isolation and, in many This event, in which some thirty publishing houses participate, is accompanied by exhi- cases, a favourable economic The wealth of the linguistic, ar- bitions and conferences. The crowning event substrate (in particular the im- chitectural and cultural heritage of the fair is the award of several literary prizes portance or persistence of agri- of the island regions acts, in fact, (poetry, beautiful books, scientific works, fic- tion), including a major prize for an island cultural or fisheries activities) as a tourist attraction. The in- book. have so far enabled the preser- creasing tourist traffic in the is- The works presented come from all around vation of languages or traditions lands, or, in the case of the lan- the French-speaking world, with writers from Reunion rubbing shoulders with their coun- whose survival was under threat. guages, the penetration of the terparts from Corsica, Tahiti or the Ponant If we limit ourselves to languages media, often contribute to weak- islands. The organisers eventually hope to broaden this fair to works of island interest having an official status, or ening, or even endangering, published in other languages. taught in the schools, it is wor- them. http://perso.club-internet.fr/jacbayle/livres/ thy of note that, in 8 of the 21 salon.html

52 DIFFICULTIES ACCUMULATE archipelagos, mountain, desertified areas

« How sweet it is, when upon the vast Sea the wind raises the waves, that we may, from the Land, contemplate the fearsome perils others face.» LUCRÈCE (35 av. JC)

nsularity is an especially acute constraint when it is exacerbated by multiple fragmentation, as is the

case with archipelagos, or when it is added to other geographic or demographic constraints. 17 IIsland Regions are archipelagos, and as such may be regarded as “exploded” territories. Providing their population with an acceptable level of public services results in a multiplication of financial costs. The fragmentation of a territory happens in another way in those Islands which are mountainous, and whose hinterland, poorly accessible, becomes a near-desert. A number of Islands show extreme densi- ties of population: some are sparsely-populated areas (<20h/Km²), while others have a scarcity of space.

Complex to manage, territories

f insularity is a constraint, unit. Of the twenty-one island the Azores, the Ionian Islands, an archipelago represents an regions in EU 15, seventeen are the Balearic Islands, the Canary Iaccumulation of difficulties archipelagos with several inhab- Islands, and the archipelagos of where each island represents a ited islands. While in some re- Scotland or Åland. gions, archipelago-type fragmentation is limited, in others Whether owing to the large it is spectacular. Such is the number of small, sparsely popu- case, in particular, with the lated, islands that go to make Aegean islands, Guadeloupe, them up, or owing to their being spread over geographic spaces of several hundred kilometres, sometimes as vast as the territory of a large Mem- ber State, the archipelagos are highly fragmented territories. In their day-to-day lives, their inhabitants suffer, not only from insularity, but also often from “dual”, or even “triple” insularity. The transport system is sometimes so designed that islanders have to travel, by boat or by plane, from a minor island to a medium island, to the regional capital, and from there

Located in the Baltic, between Sweden and Finland, the Åland archipelago counts some 6,500 islands or islets, of which almost 60 are inhabited. 90% of the population of 25,000 lives in the main island “Fasta Åland”, and 40% in Mariehamn, the regional capital. 53 The government of the autonomous region finances a territorial continuity policy for the some 2,500 islanders who live on the other islands. The cost of this policy comes to 160,000 Euro per annum. Off the coast of Europe

that the residents can afford them or (where possible) build fixed links between the islands.

This fragmentation of the territory takes on another aspect in mountainous islands (such as Corsica or Crete), where the population tends to concentrate along the coasts, leaving the interior deserted. Cut off from each other by rough terrain, the communities living on the plains cannot share the same infrastructures, because access times are too long. This leads to the need for a large number of ports In the Western Isles, the determi- and airports, while the road nation to reduce the constraints of insularity has been reflected in the network suffers from the addi- construction of several bridges or tional costs that affect all iso- causeways interconnecting most of the islands in the archipelago. lated mountain regions. As an Since WW2, especially since the example in point, the 260,000 creation of an island regional au- inhabitants of Corsica manage thority in 1975, this process has made it possible to reduce the 4 international airports and 7 number of islands or groups of is- trading ports. lands from twelve to a mere three. The crucial need for this policy is illustrated by the fact that, since the last century, almost ten small isolated islands had to be completely abandoned.

Managing these spaces sometimes comes with an exorbitant price tag, because the provision in each island of a port MUNICIP ALITIES UNDER «MOUNTAIN» AND «SHORE or airport, a school, admin- LINE» LEGISLA TION istrative offices or health services, water or energy supplies, waste management infra- to the main- structures, etc. generates ad- land, while the ditional costs out of all propor- same scenario ap- tion to the size of the plies to commercial populations served. Moreover, transactions. it is rare that economies of scale can apply. To bolster the fragile cohesion of the archipelago, or to pre- Ensuring this cohesion also re- vent the total depopulation of quires, in the field of transport, the most vulnerable communi- the implementation of a “terri- ties, it is essential that each of torial continuity” policy at the them enjoy an acceptable level infra-regional level. The cost of public service, responsibil- of this normally falls on the re- ity for providing which falls to gional authorities, who have to the managers of each of the is- disburse large sums to subsi- lands, including the smallest dise domestic ship- 54 «Mountain» legislation and most remote. ping or air services so «Shore line» legislation Source : DRAF et DIREN Corse. Cartographie : DIREN Corse. When difficulties accumulate : archipelagos, mountain, desertified areas

DOUBLE-INSULARITY OF THE AR CHIPELA GOS: POLITICAL REPRESENT ATIVITY AND PUBLIC INVESTMENT IN THE SMALLER ISLANDS The concept of double-insularity comprises, among other elements, the fact that a small population (240,000 residents), equivalent to a quarter of that of a largeS city, is spread out over small islands within a range of 600 kilometres of ocean. Not only is this population remote from the large centres (1,500 km from the closest mainland)E where potential markets are located, but the costs of trading are also higher Rbecause of the transport costs. These conditions necessarily have an adverseO effect on economic costs, since economic activity is divided into nine micro markets. Economies of scale are impossible in this situation, and alternative solutions have notÇ yet been tried due to the financial compromise which is necessary simply to maintainA public expenditure (basic equipment and infrastructure for nine airports, nine commercial ports, electricity supply, health services, etc.). Public investment in these nine portions of territory, inhabited by small numbers of people, is so high that it leaves no other capacity for other investment.

WHEN AR CHIPELA GOS SPAN THE LENG TH OF MEMBER ST ATES To appreciate the true geographic dimension of archipelagos, a useful exercise is to superimpose the map of some of these territories over that of some of the larger Member States. One may notice that the chain of the Lesser Antilles, where Martinique and Guadeloupe are located, stretches over an area similar to that between Cornwall and the Mediterranean. Moreover, these two French Overseas Regions, and specially the archipelago of Guadeloupe, are literally interwoven in a scattering of Small Island States or Territories, who obviously do not belong to the Single Market area, and with whom trading is very limited. In Greece, the Aegean islands cover a surface area as large as that of Germany, but there the comparison stops. Their total population is 454,000 spread over some sixty islands, while, in Ger- many, 80 million citizens share a homogeneous territory. Moreover, the Aegean islands border Turkey, a third country with which relations have long been tense for historical and political reasons, and with which there have been frequent border incidents. In contrast, the reunited Germany has found itself, since the fall of the iron curtain, at the very heart of a free trade area ranging from the At- lantic to the Urals. As for the Azores, by super- imposing their map over that of the Iberian Peninsula, we can gauge the mutual isolation of 9 islands of an archipelago, which is itself isolated in the middle of the Atlantic Ocean. 55 Off the coast of Europe

Frequently extreme population profiles

he population density of OVERPOPULA TION IN THE ISLAND OF GO ZO a region is a factor which Unlike a number of islands and peripheral a significant manufacturing sector and a size- has many consequences. regions in Europe, one of the main problems able services sector, both Malta and Gozo T facing the island of Gozo is not the low popu- tended to experience a reversal of past trends. Low population density is a lation inhabiting the physical space available. Presently, the number of Maltese returned severe handicap for isolated Rather, it is the high population per square migrants tends to generally exceed the islands which do not have a kilometer of land space available which is number of emigrants. In response, the popu- hinterland to provide man- presenting Gozo with formidable challenges. lation ofO the Maltese islands is increasing. In this aspect, Gozo reflects the conditions ZThe population of Gozo and Comino, with a power, or absorb excess popu- prevailing in the larger sister island of Malta. combined area of only 69 sqr. Kilometers, in- lation. In the years preceding and following theO ac- creased from 26,064 in 1990 (13,455 females quisition of Independence from the UK in and 12,609 males) to 29,349 in 1999 (14,852 1964, the national governmentG resorted to females and 14,497 males). As a result, the Five island regions in the Eu- policies which encouraged emigration from population density, already at a relatively high ropean Union (Western Isles, the Maltese islands towards the USA, Aus- figure of 377 persons per square kilometers tralia and Canada. However, as the economy in 1990, increased to 427 persons per square Orkney, Shetland, Gotland and successfully managed the transition from a kilometers in 1999. (Source: Demographic Åland) have population den- fortress economy to an economy built upon Review, Central Office of Statistics, Malta). sities equal to or less than thirty inhabitants per km², as have Low or very low population dependency of these regions, the two island regions of Es- density has the effect of increas- forcing them to import most of tonia, Saaremaa and Hiiumaa. ing the relative cost of infra- their goods or services from the In the case of the Western Isles, structures and services for the mainland. This problem also the population, whose density authorities. It severely under- concerns most of the hundred is already less than 10 inhab- mines the profitability of busi- odd small coastal islands, veri- itants per km², continues to nesses relying on the local table “micro-insular” spaces, decline at an accelerating pace. market, thus exacerbating the dotted around the EU from the

POPULATION CHANGE 195 0 TO 2000 (%) %

ILLES BALEARS (ES) ILLES BALEARS (ES)

GUADELOUPE (FR) GUADELOUPE (FR)

MARTINIQUE (FR) MARTINIQUE (FR)

CORSE (FR) CORSE (FR)

FR FRANCE

ES ESPAÑA

GR ELLADA

ISLE OF WIGHT ISLE OF WIGHT

CNTINENT EUROPPEN EUROPE

FI FINLAND / SUOMI

SE SVERIGE

DK DANMARK With a demographic change twice the Euro-

ITALIA pean average, the Balearic Islands, Guadelou- pe and Martinique boast exceptional growth. KRITI (GR) KRITI (GR) These islands have seen their population vir- ALAND (FI) tually double in 50 years. In contrast, over the

UK UNITED KINGDOM same period, the North Aegean islands, the Azores and the Western Isles lost almost a NOTIO AIGAIO (GR) NOTIO AIGAIO (GR) quarter of their inhabitants. GOZO (MT) GOZO (MT)

SHETLAND (UK) SHETLAND (UK)

GOTLAND (SE) GOTLAND (SE)

IONIA NISIA (GR) IONIA NISIA (GR)

WESTERN ISLES (UK) WESTERN ISLES (UK) © Eurisles ACORES (PT) ACORES (PT)

56VORIO AIGAIO (GR) VORIO AIGAIO (GR)

-40 -20 0 20 40 60 80 100 When difficulties accumulate : archipelagos, mountain, desertified areas

Baltic to the Mediterranean. WESTERN ISLES POPULA TION CHANGE 190 1 TO 2016

These coastal islands and the 50 000

archipelagos share the same 45 000

situations of demographic de- 40 000 cline which can, in the medium 35 000 to long term, jeopardise the very existence of certain communi- 30 000 ties. 25 000 20 000

Paradoxically, while a high 15 000 population density solves cer- 10 000

tain problems, a too high density 5 000

raises others. Four EU island 0 1901 1911 1921 1931 1939 1951 1961 1971 1981 1991 1999 2016 regions (Martinique, Madeira, Reunion and the Isle of Wight) have a population density close region suffers from oceanic of the main towns and by dis- to or over 300 inhabitants/km². isolation, or where a large part parities of development within The island of Gozo, in Malta, of its territory is an unbuildable the territory. has a record density of close mountain (or volcanic) area. to 430 inhabitants/km². - In archipelagos dominated by The demographic evolution of a large island, the main islands Demographic pressure gener- islands is of course not homo- draw people from the smaller ates various difficulties in fields geneous. islands. This occurs in Sardinia, related to habitat or the con- Crete, or Guadeloupe, where the struction of infrastructures. - Some single-island regions, minor islands seem to act as These include scarcity or high such as Martinique, Isle of “satellite” islands. In these cost of building land, water Wight and Corsica, have re- regions, the profile of the “main- supply and waste management cently seen their population rise, land” island is similar to that problems, etc. This situation a trend which has been accom- of non-archipelago islands. The is naturally exacerbated if the panied by the positive growth same positive population trend

DEMOGRAPHIC CHANGE IN THE IONIAN ISLANDS BETWEEN 195 1 AND 199 1 ISLANDS THREA TENED B Y DEMOGRAPHIC DECLINE

Othoni = 98 hab. en 1991 Othoni = 98 hab. - 1991

Kastos = 50 hab. en 1991 Kastos = 50 hab. - 1991

Kalamos = 465 hab. en 1991 Kalamos = 465 hab. - 1991 In some forty years, the Ionian Marthaki = 143 hab. en 1991 Marthaki = 143 hab. - 1991 Islands lost a high percentage of their inhabitants. Corfu Ithaki = 3 082 hab. en 1991 Ithaki = 3 082 hab. - 1991 (Kerkira), where most of the population is concentrated, is Meganission = 1 245 hab. en 1991 Meganission = 1 245 hab. - 1991 the only island to record a positive balance, although this Kephalonia = 29 392 hab. en 1991 Kephalonia = 29 392 hab. - 1991 balance has not offset the overall loss suffered by the is- Antipaxos = 61 hab. - 1991 Antipaxos = 61 hab. en 1991 land region.

Erikoussa = 334 hab. en 1991 Erikoussa = 334 hab. - 1991

Lefkada = 19 350 hab. en 1991 Lefkada = 19 350 hab. - 1991

Paxi = 2 175 hab. en 1991 Paxi = 2 175 hab. - 1991

Zakynthos = 32 556 hab. en 1991 Zakynthos = 32 556 hab. - 1991

Kerkyra = 104 781 hab. en 1991 Kerkyra = 104 781 hab. - 1991

IONIA NISIA = 193 734 hab. en 1991 IONIA NISIA = 193 734 hab. - 1991

concerning the islands with the AN EVOLUTION OF DEPOPULA TION IN THE AZORES? highest population is also seen There would appear to be a reversal of the fall- populations of Santa Maria and Flores, for in regions not so marked by the ing population trend in the Azores. Contrary example, which are both the remotest and to the trends observed in previous years, there smaller/medium-sized islands, are actually presence of a dominant island, has been a slight increase in population on the increasing, while on Pico, one of the largest such as the Balearic Islands or archipelago, as shown in the following table: islands, the population is falling. The same is true of Faial (an island larger than Flores or the Ionian islands. Evolution of the Resident Population Islands 1991 (1) 1999 (2) % Santa Maria), which despite being situated Santa Maria (97.42 Km²) 5 922 6 120 3.3 in the centre of the archipelago and having a - Certain archipelagos with São Miguel (759.41 Km²) 125 915 132 980 5.6 busier port thanS most of the other islands, is Terceira (381.96 Km²) 55 706 57 420 3.1 also experiencing a fall in population. smaller, highly isolated, islands Graciosa (61.66 Km²) 5 189 4 830 -6.9 An analysisE of the data concerning the popu- São Jorge (246.25 Km²) 10 219 10 380 1.6 experience more dramatic Pico (447 Km²) 15 202 14 760 -2.9 lation increase shows that this is highest in trends. The Azores, the islands Faial (173.42 Km²) 14 920 14 760 -2 theR 15-64 years age group, while the popula- Flores (143.11 Km²) 4 329 4 540 4.9 tion group comprising children and young of the Northern Aegean or the Corvo (17.45 Km²) 393 240 -38.9 people (0-14 years) is not growing to the same Region 237 795 246 030 O3.5 Western Isles suffer from se- Source : Instituto Nacional de Estatística (INE) et DREPA extent. Over the last eight years, the average vere depopulation, a factor (1) Last sense birth rate has been 2.1 children per woman, (2) Estimation Ç which is lower than the replacement level1 . which threatens their future. However, the effects of depopulation can also be observed on the islands of Faial, Pico, Gra- A Age Groups 1991 1999 ciosa and Corvo. The causes are not yet iden- - Finally, for minor islands with tified. 0-14 26.4% 22.4% less than 15,000 inhabitants, Although smaller islands are theoretically 15-64 61.1% 65.7% the problem of population loss supposed to have greater difficulties in main- 65 and + 12.5% 11.9% taining their population, this theory would Source : DREPA Direcção Regional de Estudos e is an even greater threat. Be- appear to be contradicted by the facts. The Planeamento dos Açores low a certain population thresh- 1 DREPA - Direcção Regional de Estudos e Planeamento dos Açores old, demographic trends are dominated by social “ration- Crossing times remain long single natural constraint (in- alisation”, i.e. the desire to enjoy because they depend as well sularity), but of several con- the advantages of modern soon the infrastructures available straints linked to the nature of ciety, such as shops, health as on distance, or weather. It their territory (archipelago type services, etc. In this context, is easier to maintain a satis- fragmentation, isolation due to most of the small islands con- factory number of turnarounds rough terrain) or to population tinue to suffer population de- if the island has a good-sized trends (desertification, or over- cline. These islands, structurally population. At this level, low population). The cumulative handicapped by an ageing density, small size and demo- nature of these constraints population and, often, by lack graphic structure by age accu- contributes to their mutual of infrastructures, are especially mulate to make for situations aggravation. For the weakest fragile. which can jeopardise the vi- and most vulnerable commu- ability of the territory. nities, this situation often leads Despite the existence of trans- to a worrying degree of demo- port infrastructures, the lack In general, an observation of graphic decline. of equipment on the minor is- the island regions of the EU lands remains a handicap. reveals the existence, not of a

58 When difficulties accumulate : archipelagos, mountain, desertified areas

POPULATION CHANGE: ISLANDS WITH LESS THAN 15,000 INHABIT ANTS (81 ISLANDS)

NEGATIVE POPULA TION CHANGE POSITIVE POPULA TION CHANGE

POPULATION CHANGE: ISLANDS WITH 15,000 T O 100.000 INHABIT ANTS (21 ISLANDS)

NEGATIVE POPULA TION CHANGE

POSITIVE POPULA TION CHANGE

* Total of the Archipelago (regions for which we have no details on the growth by island)

Between the last two available censuses, the population growth of the islands has differed according to their respective size. Our sample comprising 112 islands shows three uniform groups: - Among the 81 (small) islands with a population of less than 15,000, depopulation is the main trend, with only less than half of them experiencing an increase in population. - Among the 21 islands with a population of between 15,000 and 100,000, population drain is much less common phenomenon, since only 4 islands have a negative growth. - All the islands with over 100,000 inhabitants have experienced an increase in population. This equally concerns the main islands of archipelagos such as Mallorca, Kerkyra, Rhodes, São Miguel and mainland Guadeloupe, as well as non-archipelagic islands such as Martinique, Corsica and the Isle of Wight, or those whose minor islands have only a very small weight such as Gotland or Crete.

Nota bene: In order to produce these graphs, we have used the censuses carried out between 1990 and 2000. Only the figures for the Greek and British regions refer to the two previous censuses (1980 – 1990). 59 Off the coast of Europe

60 ISLANDS IN EUROPE at the heart or on the margin?

«What a strange time, Gentlemen, when one may not – without raising some kind of hubbub – recall that England is an Island, and that America is not Europe» Charles DE GAULLE (1967)

ost islands have, during their history, constituted outposts for the European States, defending their maritime frontiers, guaranteeing the security of their trading routes, allowing for the con- Mtrol of natural resources or anchoring the expansion of colonial empires. Have the disappearance of major conflicts between European powers, the end of their colonial adven- tures and the process of European construction changed this situation? Have they had the effect of marginalising the islands? Owing to the lack, or poor quality, of precise statistical data, it is not always possible to give a quantitative answer to these questions, but there are other evaluation or assessment instruments.

Zones of peace, zones of tension

hile the end of the disappearance of all conflicts. In for the offshore islands of these “Cold War” and the the Balkans or Near East, there regions. Wfall of the Berlin Wall are war zones, or at least zones overthrew frontiers and upset of tension, on the Union’s very In the Baltic, the removal of the balances in Europe, they have doorstep. These contrasting sit- Warsaw Pact forces and the in- not, unfortunately, meant the uations have had consequences dependence of the Baltic States

THE BAL TIC ISLANDS DURING THE COLD W AR

ÅLAND SAAREMAA & HIIUMAA Autonomous region Warsaw Pact forward bas- demilitarised by es (radars, missiles, etc.). several international Islands off limits to non-res- treaties. idents. Part of the territory of these islands is also off- limits to their inhabitants.

GOTLAND Coastal artillery. Part of the island is off-limits to all BORNHOLM except Swedish nationals. NATO Baltic air and sea traffic monitoring 61 centre. © Eurisles Off the coast of Europe

led to the opening of a new zone ESTONIAN ISLANDS IN B ALTIC IN TRANSITION of cooperation. The Estonian is- After World War II some small islands be- some of the former weaknesses of island life lands of Saaremaa and of Hiiu- came totally depopulated, and Saaremaa and turned into strengths: thanks to their “spe- maa, hitherto off limits, even to Hiiumaa lost one-third of their pre-war popu- cial status”, the islands were spared the prob- their own inhabitants, entertain lation. When Estonia’s Baltic Sea islands be- lems of excessive in-migration, and many at- came part of the westernmost border of the tractive and nostalgicA features of traditional increasingly close relations with Soviet Union, all traditional overseas contacts rural life “of the good old days”A remained vi- the rest of the Baltic, while the were broken off and the sea no longer brought able. LastA but not least, life on the islands has peoples together but separated them. Esto- always been considerablyA safer than on the military installations on Gotland nians were allowed only restricted access to mainland and the crime rate has been ex- or Bornholm have been reduced the islands and coastal regions were closed Mtremely low. The numerous military bases and even to the islanders themselves. The fall in constructionsM now lie in ruins, littering the or dismantled. the number of inhabitants, the sparse Upopu- landscape both literally and figuratively, but lation density and the geographicalI isolation on theE other hand, because of the military, Similarly, the end of the East- created the feeling of being cutI off. The tradi- the coasts of Estonia’s islands have to a large tional landscape changed as well: thousandsRextent conserved their natural environment West conflict has led to a sharp of former farmsteads wereH closed, and mead- and there are relatively few recreational or reduction in the military presence ows became overgrown with bushes;A at accommodation establishments along the on the Scottish islands, which present nearly half of the territory of Hiiumaa seashore. With the break-up of the traditional and Saaremaa is covered withA forests. rural lifestyle, several plant species have be- acted as NATO listening posts for When Estonia regained independence in 1991, come rare, but in the absence of human in- the Northern Atlantic sea and air the islands opened theirS doors to their fellow tervention, many landscapes have remained approaches. While this has had countrymen and to foreigners. With freedom, in their natural state. very negative repercussions on employment in some islands, the ous, although relations between nowned zones of tension on the very isolation of the Western Isles Greece and Turkey have im- Southern and Eastern shores of has enabled them to hold on to proved significantly recently. the Mediterranean (Libya, Israel). some training and equipment These islands which, historical- The determination of these is- experimentation activities. ly, served as major trade centres lands to increase trade with the and the cradle of western civili- outside can be suddenly jeopard- In the Eastern Mediterranean, on sation, are now, owing to inter- ised by renewals of tension in the the other hand, recurrent ten- national tensions, restricted to region. sions in Cyprus or the Aegean the role of extreme peripheries have brought the region to the and isolated territories. In the Ionian Islands, the prox- brink of armed conflict on sever- imity of Albania and of the former al occasions in recent years. In Crete, Malta or Cyprus, the Yugoslavia has placed this region Trade between the islands of the proximity of the Suez Canal, a on the threshold of one of the Aegean and the neighbouring major trading route, is combined most violent conflicts in Europe mainland remains highly tenu- with the relative proximity of rein recent decades. This archipelago has been subjected to severe pressure, notably with the influx CONVERSION OF MILIT ARY JOBS IN REMO TE ISLAND AREA of illegal immigrants. Paradoxi- When the military establishment KA3 Fårösund and the surrounding area are (coastal artillery) at Fårösund was closed likely to be affected. The closing of the cally, by disrupting land routes down in October 2000 as a result of na- military base will therefore cause serious between Greece and Northern tional defence cuts in the wake of the end problems for the community of Fårösund, Europe, the Balkan conflicts have of the cold war, the small community of since it is so heavily dependent on this Fårösund on the northern coastline of one activity. encouraged the development of Gotland, 50 km away from the main cen- The communityD has great ambitions, a strong maritime trade route tre Visby, was heavily affected. however, to make the most out of the cri- with Italy via the Ionian archipel- Fårösund is one of the very few commu- sis. One veryN concrete advantage of the nities in sparsely populated northern new situation is that, with the departure ago. Gotland with a significant population and of the military, attractive areas of coast- local economy. For some hundred years, lineA are being opened up for tourism and the military has been the dominant sourceLnew activities, not only at Fårösund it- of employment in the area. Other job op- self but also in the more remote surround- portunities are provided by someT small ing areas used for training. An even larger industries (shipyard), shops, schools, part of northern Gotland was previously social care and administration,O and in closed off to visitors of foreign national- tourism (the popular summer resort of ity, who needed a special permit to travel Fårö island is 10 minutes away by ferry). to Fårösund or Fårö island. The cold war Fårösund has a populationG of about 900, is ended. Now the local war against out- and about 500 jobs, which have been migration and to prevent the disappear- steadily decreasing in number even be- ance of the community is being fought. fore recent events. 200 out of the 500 jobs The situation is certainly bad, but not 62 will disappear directly through the loss hopeless. The area has a lot of potential of military jobs and some 200 more in waiting to be used. at the heart of Europe or on the margin?

THE IMPLICA TIONS OF THE MILIT ARY PRESENCE IN SARDINIA Sardinia is the region of Italy on which mili- marines. Santo Stefano also houses an un- tion payments to Sardinia: tary constraints and activities (including dem- derground munitions depot and a NATO fuel - 13.9 million euro for the period 1990 to onstrations and testing of new weapons) as depot. 1994, by virtue of the Decree of the President well as military facilities have the greatest SOUTH Sardinia: of the Council of Ministers dated 2 February impact. The latter are made up to a large ex- Capo Teulada, the “CAUC” range (a train- 1993, which recognises that, given the scope tent of military-owned land and to a lesser ing camp for armoured vehicles divisions) and nature of the recurrent activities and con- extent of military-controlled land. which is run in collaboration with the Italian straints (expropriations, restrictions, mobili- The area is sub-divided as follows: Army. This military range is the largest train- sation of training areas, etc.) to which the ing camp in Europe, and is used region is subjected, the prejudice it suffers can PROVINCE SURFACE MILITARY- MILITARY- for international training exer- be estimated at 30% in comparison with other AREA OWNED CONTROLLED cises by NATO and the Sixth Aregions: Friuli-Venezia Giulia (19.98%), LAND LAND Fleet air and air-and-sea forces Trentino-Alto Adige (13.89%), Latium hectares hectares hectares (coastal attacks, air bombing,N(13.83%), Venezia (8.80%), Apulia (7.23%) CAGLIARI 6 895 760 230 430 64 416 group tactical firing exercises, and Piedmont (6.17%). SASSARI 7 519 780 5 916 51 613 helicopter fire, etc.).G It also in- The region has shared this money out among ORISTANO 2 630 570 217 16 829 cludes a training centre for ar- the districts with the largest areas of military- moured vehicles.E Nearly 7,200 owned or controlled land to enable them to NUORO 7 043 720 1 089 3 217 hectares of land was expropri- undertake civil engineering works and create TOTAL 24 089 830 237 652 136 075 atedD at the beginning of the social services. These districts include nota- 1960s in order to build the base, and 30 km bly La Maddalena, Arbus, Villasor, Teulada, The largest military bases are situated at four of coastlineR was closed to the public. Villaputzu and Ulassai. strategic points and cover the whole perim- As can be seen from the data which goes to - 7.7 million euro for the period 1995 to 1999, eter of Sardinia: makeA up this approximate but revealing pic- under the terms of a Defence Ministry De- NORTH Sardinia: ture, Sardinia is the region which has to bear cree dated 20 December 1999 which put Sar- The American naval base of La Maddalena,Sthe heaviest military constraints. These ap- dinia, without any justification, back into sec- run in collaboration with the Italian Navy, has pear to be both qualitatively and quantita- ond place in the list of regions the most heav- been operational since 1972 when a treaty tively disproportionate and iniquitous – even ily penalised by the military presence. This was signed between Italy and the United respecting the principle of joint participation decision is inexplicable; since 1993 no mili- States. The base employs 2,500 Americans, of all the regions in the defence of the nation tary-controlled land, training area or re- of which 1,300 are military personnel and – and this is recognised by the Decree of the stricted area on the island has been closed 1,200 civilians employed in firms and busi- President of the Council of Ministers dated 2 down whereas the most remunerative ele- nesses working for the military base at Santo February 1993. ments of the military presence have disap- Stefano , the American naval base which is The State, by virtue of Article 4 of the law peared. used for support operations for nuclear sub- 104/90, has made the following compensa-

BORNHOLM AND THE ORESUND BRIDGE

The Danish Island of Bornholm is linked all-year-long by ferry to three countries : Denmark, Swe- den and Germany. It is of course the Ronne-Copenhagen route which has the largest share of the freight traffic since it links the 47,000 islanders to the Danish capital and the largest harbour in Denmark. Nevertheless, since the opening of the Oresund bridge in 2000, the maritime route to Ystad, in Sweden, then by road to Malmö and over the bridge is faster than the maritime route Ronne-Co- penhagen and preferred by passengers. This is why this route is being subsidised by the Danish government, an exceptional procedure which will require the European Commission’s agreement. 63 Off the coast of Europe

Transport networks: national or European?

he intensity of the links penhagen are supported by These examples, however, rep- between an island region territorial continuity subsidies. resent a minority of cases, and Tand the surrounding ter- many European islands remain ritories can be revealed by the existence or absence of regu- A MARINE P ARK IN AN INTERNA TIONAL STRAIT lar sea links. The traditional conflict between economy played a dissuasive role with regard to and environment has taken on a new similar tankers flying the flags of other dimension since the creation of the in- States, as seen from the fact that their In this regard, it is observed ternational marine park of Bonifacio. numbers dropped sharply from 369 for that several islands have links, The strait of Bonifacio is governed by the period from April 1992 to March 1993 not only with the mainland of the rules of international law designed to 191 for the period from April 1995 to to monitor marine traffic and to March 1996. their State but also with other strengthen environmental protection in From 1 December 1998, traffic of all ships EU destinations, and with third the existing legal framework. in transit has been governed by a new countries. It is possible, for Since 1979, the International Maritime IMO Resolution (see figure) designed to Organisation (IMO) has adopted sev- improve safety in the Bouches de Bonifacio: instance, to reach Sweden or eral resolutions regulating traffic in the - Creation of a two-way recommended Finland from the Åland is- Bouches de Bonifacio, the coasts of which route combined with a caution zone at it describes as “vulnerable”. The IMO each end. These caution zones are two lands, to go from Bornholm recommends that governments discourage circular sectors with a radius of five nautical (DK) to Sweden or Germany, loaded oil tankers from travelling through miles. to hop from Corsica (F) to the straits and has approved a ship - Creation of a system of mandatory re- monitoring and information system. To ports for all ships with a gross tonnage Tuscany and Sardinia, or to the international Resolutions of the IMO equal to or greater than 300 tonnes. access Italy from the Ionian are added the regulations made in 1993 The current system is designed, not to Islands (GR). by the French and Italian governments prohibit navigation in the strait, but to prohibiting oil, chemical and gas tankers canalise it in aA single zone to facilitate flying the French or Italian flag from monitoring. Like commercial traffic in The existence of these routes sailing through the straits when loaded. general, shipping of dangerous substances These regulations are deemed to be in- throughE theN Bouches de Bonifacio has is mainly due to the geo- sufficient because they are not com- dropped. This drop concerns all flags. graphic location of these re- prehensive. As things stand in international law, the gions: Corsica is closer to Italy It is difficult to apply penal measures Sstrait cannotG be closed to international in case of infringements owing to the shipping solely to protect the environ- than to mainland France, lack of qualified agents in situ to note ment via the marine park. The solution Åland is located between the the offences. French law authorisesR of a E“total freeze” of the strait is nei- Swedish and Finnish coasts, legal proceedings to be taken against ther realistic nor feasible. There seems Italian ships only if the infringements to be an increasing trend world wide and it is easier to go from have been noted in French territorialO towardsD making a distinction between minor Bornholm to Copenhagen via waters. Similarly, the Italian decree straits and major straits. This distinc- Sweden and the Oresund of March 1993 is imprecise and does tion would allow the IMO to subject each not contain any list of pollutingC sub- strait to an organisation and monitor- bridge, than via a direct sea stances, which makes it difficult to apply. Ring system which would take account of link … EU construction, by Having said that, the prohibitions on the configuration and shipping frequency French or Italian oil, chemical and gas of each strait. opening, or even eliminating, tankers from sailing through the straitA borders, has undeniably have been fairly well respected and have strengthened this type of op- S portunity, although it has also been helped along by certain policies. For example, the specific tax system in the Åland islands which allows for certain duty-free sales on the ships, explains the exceptional quality of the shipping links enjoyed by this archipelago. Similarly, the links between 64 Bornholm, Sweden and Co- at the heart of Europe or on the margin? isolated. Apart from isolated Some island crossing times traffic of cargo ships, cruise in hours, in 2001 ships, and, sometimes short High-speed Crossing Ferry seasonal links, they enjoy ferry regular shipping services only Palma Barcelona 7:00 3:45 Illes Balears with the ports of their main- Palma Ibiza 4:00 2:30 land. This is true of Gotland, Bornholm Rönne Ystad 2:30 1:20 the Ionian Islands, the Scot- Corse Bastia Livorno 4:00 2:00 tish archipelagos, the Isle of Kerkira Kerkira Brindisi 7:00 4:00 Wight, the Balearic Islands, Gozo, Crete or the Aegean is- Gotland Visby Nynäshamn 5:00 2:45 lands. In particular, there is Sardegna Olbia Genova 13:00 6:00 a lack of direct services be- In the Mediterranean or in the Baltic, high-speed boats modify the relative isolation of the tween the islands of the Medi- islands. terranean and the Southern Mediterranean countries or the is akin to intercontinental 6 hours from 10 to 12 hours Near East. Similarly, there is travel, etc. previously. Corsica (departure no transversal route linking all Bastia) is now only 2 hours the islands of the Mediterra- Having said that, the isolation from Livorno as against 4 nean, including in the field of of many islands has been hours by regular ship, or 3 ½ air transport. For example, to eased in recent years thanks hours from Nice instead of 7 go from the Balearic Islands to the use of high-speed ships, ½ hours. The use of these to Corsica, one often has to which have greatly cut cross- technologies, however, re- go via Paris, just as going from ing times. Crossing times quires acceptable climatic Sardinia to the Ionian islands between Iraklion (Crete) and conditions, and sufficient large Piraeus have been slashed to traffic to offer a return on these highly costly investments.

Increasing population movements

as the free movement of in their population with the loss During the last 10 years, the persons guaranteed by of one quarter (Western Isles and population rises or drops expe- Hthe Treaty led to a sort of Azores) or one third of their in- rienced by the island regions melting pot in the islands? It is habitants (Northern Aegean is- have been much more marked difficult to give a uniform answer lands). than national averages. Al- to this question, because the mi- IMMIGRA TION IN THE NOR TH AEGEAN REGION gratory movements proper to each island have historical roots. Increasing illegal immigration (principally transferred to Athens (where they either of Kurdish and Afghan immigrants) con- apply for political asylum or are deported, Furthermore, a distinction should stitutes without doubt one of the major etc.) and the government’s plans to extend be made between the migratory challenges facing the North Aegean region the scope of the special corps of border as far as its regional defence and security guards (introduced initially to control the balance as revealed in the cen- policy is concerned. The tragic situation borders with the Balkan countries) to the sus, seasonal movements of tour- in the Middle East, the length of the mari- maritimeO borders considerably reduce the ists, and illegal immigration. time borders in the Aegean Sea and the fearsI of local inhabitants. The latter, para- inherent difficulties of surveillance and doxically, are more concerned by the pres- control are key factors here. ImmigrantsRence of foreignO workers on the islands. A study of demographic trends arrive illegally via Turkey in tragic condi- When theI new law on foreigners’ rights since 1950 gives an idea of the tions, risking their health and oftenO their (Law 2910 of 2001), which puts stricter lives. controlsA on the presence and the employ- upheaval experienced by certain Aside from the humanitarianV dimension ment of foreigners on Greek territory, was islands, some of which (considerable efforts are made to welcome,Gbrought into application recently, foreigners support and provide medical treatmentI for (essentially from the Balkan countries or (Guadeloupe, Martinique and the immigrants), the local population is the former Soviet Union) in the region num- Balearic Islands) have seen their not overly concerned by theA phenomenon bered approximately 4,000, i.e., 2% of the population almost double, while of illegal immigration. The increasing population. The contribution made by for- militarization of the islands over the last eign workers to agriculture and the con- others have suffered a sharp drop 25 years (due to constant tension in rela- struction industry remains undeniable 65 tions with neighbouring Turkey), the fact however, and programmes to facilitate their that these immigrants are nearly always integration will soon be put in place. Off the coast of Europe

though the Azores and the Ionian however, the Northern Aegean A more refined analysis, at the islands seemed to have stopped islands (GR), the Western Isles level of each island in the case of the haemorrhage, the figures re- (UK), Bornholm (DK) or Hiiumaa the archipelagos, points to more main a cause for concern. (EE), lost 3 to 8% of their popu- complex realities. In general, lation, while the population of notwithstanding some excep- Leaving aside Estonia, all the Guadeloupe (FR), Gozo (MT) and tions, the population of the small countries have seen their popu- the Balearic Islands (ES) rose sig- isolated islands has tended to lation rise by 1 to 4%, with a nificantly (over 10%). decline, while that of the larger slightly higher increase for Malta islands has grown. Similarly, is- (7%). Over the same period lands with a developed tourism industry, or those located close CONTRIBUTION OF MIGRA TION AND OF THE NA TURAL B ALANCE TO POPULA TION CHANGE: to the major urban centres of the (1990/1999 IN % ANNUAL V ALUE) mainland, tend to see their population grow.

GOZO GOZO In the Western Isles, Bornholm or LES ILLES BALEARS LES ILLES BALEARS the North Aegean islands, popu- EUR 15 EUR 15 lation stagnation, or even decline, GUADELOUPE GUADELOUPE is due to an unfavourable natu-

MALTA MALTA ral balance. Moreover, Hiiumaa, Martinique and Guadeloupe suf- NOTIO AIGAIO NOTIO AIGAIO fer significant MARTINIQUE MARTINIQUE Among the regions with positive demographic change, there are emigration, al- IONIA NISIA IONIA NISIA several cases. The outermost re- though in the gions and Shetland are the only KRITI French islands KRITI island regions whose demographic this loss of popu- ÅLAND ÅLAND growth is due essentially to high birth rates, although the negative lation is offset by a CORSE CORSE migratory balance of the French high birth rate. Overseas Departments should be SUOMI / FINLAND FINLAND / SUOMI noted. DANMARK DANMARK All the other regions owe the rise The destinations of in their population to migratory FRANCE FRANCE balance, and the Isle of Wight and this island emigra- the Ionian Islands can even allow tion are difficult to ISLE OF WIGHT ISLE OF WIGHT themselves the luxury of a nega- evaluate but seem to tive natural balance. ACORES ACORES In the bottom of the graph, the mainly concern the ESPAÑA ESPAÑA mainly northern regions (with the mainland, and rarely exception of the North Aegean is- UNITED KINGDOM UNITED KINGDOM lands) are in a very worrying situ- other Member States of ation of stagnation or population the Union, with the no- SVERIGE SVERIGE loss. table exception of the HELLAS ELLADA Azores where the popu- SHETLAND SHETLAND Natural balance lation is still more attracted to

ITALIA ITALIA Boston than to Lisbon or London. Migratory balance PORTUGAL PORTUGAL Emigration to the “new world” (USA, Canada, Australia, etc.), GOTLAND GOTLAND which was high up to the begin- SARDEGNA SARDEGNA ning of the 90’s, is now less so ORKNEY ORKNEY since these countries have

SAAREMAA SAAREMAA clamped down on immigration. In the other direction, it seems HIIUMAA HIIUMAA that immigration has played a BORNHOLM BORNHOLM major role in the rise in the popu- WESTERN ISLES WESTERN ISLES lation of the Balearic Islands and

ESTONIA EESTI Ionian islands. © Eurisles VORIO AIGAIO VORIO AIGAIO The seasonal migration flows re- 66 -1,5 -1 -0,5 0 0,5 1 1,5 lated to tourism can have size- at the heart of Europe or on the margin?

MONTHLY BREAKDO WN OF T OURIST NIGHT S .% 40

Martinique

Corse 20 Les Illes Balears

Gotland © Eurisles 15

0 J. F. M. A. M. J. J. A. S. O. N. D. The length of the tourist season of an island is strongly influenced by climatic and geographic criteria. Arrivals are often concentrated around the brightest and hottest times of the year. It is therefore possible to identify a certain type of seasonality for each area. - Northern islands, like Gotland, have a very short summer season with an apogee in July. - Seasonality in the Mediterranean islands, illustrated by Corsica, is characterised by very high traffic concentrated around the month of August. Only the Balearic Islands - a top EU destination - manage to make the season last for 6 months. - As in Martinique, the outermost islands, which enjoy a pleasant climate throughout the year, do not have too high a seasonal fluctuation. able effects. The number of tour- rally, the most exposed, examples sitional” migration, where the is- ists visiting an island region (and, being Albanians in the Ionian island is only a stage in a longer especially, a small island) can be lands, Kurds in the Aegean is- trek to the major economic cen- ten, or even twenty, times its per- lands, North Africans in Sicily, tres of the EU, and illegal emi- manent population. Sometimes, Africans in the Canary Islands or, gration, where the immigrants most of these visitors come from in the French Antilles, Domini- seek to settle in the island be- other Member States (they rep- cans, Haitians, etc. cause it is a source of employ- resent 88% of tourist nights in ment, generally in the tourism or the Balearic Islands), the islands In this regard, a distinction building sectors. of the Mediterranean, the Canary should be made between “tran- Islands or Madeira being favoured destinations for holiday- THE BALEARIC ISLANDS: A LAND OF IMMIGRANT S makers from Northern Europe. The Balearic Islands were, until the 1950s, work. Over the period 1998-2000 the Bal- Tourists from outside the EU re- a land of emigrants. Later, mainly due to earic economy created 60,000 jobs, most the development of tourism, they attracted of them filled by foreign immigrants.S main a small minority, in some hundreds of thousands of immigrants, ini- At the same time, the immigrants who come cases a tiny one, especially if one tially from other Spanish regions and, more to the Islands to work Rcan be classified recently, from different foreign countries. into two categories: highly qualified work- excludes members of the Between 1998 and 2000, the Balearic Is- ers from EuropeanA countries, and work- diasporas. lands received 40,244 foreign residents, ers from otherE countries who take jobs which represents 9.4% of the total popu- mainlyL in agriculture and the construc- lation (that is to say, 78,504 out of 835,148 tion sector which, because of the physi- The extent of illegal emigration, inhabitants), becoming the fourth Span- calA or economic conditions, remain un- by nature difficult to quantify, ish region (after Ceuta, Melilla and Girona)Bfilled on the labour market. (In this con- depends on the geographic, geo- in terms of numbers of foreign immigrants. text, a study carried out by the Spanish Consequently, the low birth rate in the Commission on Aid to Refugees concludes political, and geo-economic con- Islands has been offset by theS high rate that 100,000 immigrants per year are text of each region. Those islands of immigration. In recent years, 90% of needed to satisfy employment demand). the population increaseE has been due to It should be pointed out that a large number located close to areas of tension, this migratory phenomenon.L of these immigrants (around 30,000) have or situated along the major ille- A distinction needsL to be made among the no legal status and therefore remain in gal emigration routes, are, natu- immigrant population between those who an illegal situation, thus creating social 67 come to theI Islands for leisure (mainly problems retired people) and those who come to Off the coast of Europe

A willingness to cooperate

he determination of the PROXIMITY OF THIRD COUNTRIES AND OF SHIPPING R OUTES European islands to over- The geographic situation of Crete is one Visitors arrive by charter from Israel all T come their isolation is of its “potential” advantages which does through the tourism season, while Israeli shown in the multiplication of co- not automatically lead to a dynamic of businessmen have expressed an interest development with the neighbouring coun- in investing directly in Crete, mainly in operation networks in the last ten tries in the South-East of the Mediterra- tourism and agriculture. years. The creation of many of nean. It should also be noted that, in parallel these networks has, at one time or These latter years have seen the emergence to this development, there are isolated of a dynamic linked to the development movements of which we are not aware, another, received the support of programmes, and cooperation tools be- because they form part of companies’ strat- Community funds, such as Article tween border regions, such as INTERREG egies whichI are announced only when the 10 of ERDF, RECITE, INTERREG II II. These programmes have promoted the results have been obtained. blooming of commercial relations, mainly Moreover,T owing to the lack of direct links th and III, MEDA, PHARE, SAVE, 5 with Cyprus, Egypt and Israel. Iwith the South-East Mediterranean, which and 6 th framework programme for This dynamic was also expressed in a large means that traffic has to go via Piraeas, number of contacts and relations, in the the Iraklion customs service does not have R&D, etc. form of partnerships, which were estab-R accurate figures for commercial traffic. lished in 2000 by Cretan companies keen According to meetings and interviews with These cooperation actions have to extend their activities. K Cretan businessmen and businessmen from In each of these countries the number of the South-East Mediterranean in general, concerned both inter-island trade, Cretan companies concerned was as fol- one can conclude that interest is fairly and projects with mainland EU lows: keen and that the main problem resides - 17 in Israel, in the lack of permanent transport links regions or with third countries. - 30 in Egypt, between the island and the South-East They deal with a wide variety of - 35 in Cyprus. Mediterranean. themes, including the environ- Several Cypriot companies invested in Crete, Re-establishing these links would be a especially in Tourism. It is worthy of note determining factor for increasing the dy- ment, technology transfer, energy that the Bank of Cyprus has a highly namism of development between Crete and policy, information society, etc., a dynamic network of branches in Crete. the regions concerned. full list of which it is impossible to give here. As an example in point, technical and political goals, be- - IMEDOC, set up in 1995, initially Crete has participated in some tween these regions. These in- to bring together the three island twenty different cooperation net- clude: regions of the Western Mediterra- works, involving over 24 European nean (Balearic Islands, Corsica, regions and 8 third countries, to- - The Islands Commission of the Sardinia). This network opened up gether with various bodies. CPMR, set up in 1980, which cur- to Sicily and is gradually spread- rently brings together all the island ing to all the islands of the Medi- Worthy of note, however, is the regions of the EU and several Eu- terranean. existence of several permanent ropean islands belonging to third cooperation structures, with both countries. - “B7”, set up in 1989 between the 7 islands of the Baltic Sea. INTER-REGIONAL COOPERA TION IN THE MEDITERRANEAN AND THE ISLANDS The question of North/South cooperation in the has been identified. It is to be noted, how- - The outermost regions network Mediterranean is one which has fundamental ever, that the level of mutual knowledge on implications. The integration of the Mediter- territorial issues and needs remains disparate. (which extends beyond the con- ranean basin is a strategic objective, whether The participation of Corsica and of Sardinia text of the islands alone), follow- between the European Regions including the in the AMI project made it possible to set up a ing the signature in Guadeloupe in islands, or between the latter and other third- common platform for decentralised coopera- country Mediterranean Regions. With regard tion and for the definition of: 1996 of a cooperation Protocol to this point, the conclusions of the “Inter-Re- - Geographic priorities for North/South co- between the presidents of these gional Mediterranean Workshops” (AMI) cooperation, and seven regions. operation projects and the projects developed - Thematic priorities (islands and free-trade under the terms of Article 10 of the ERDF with area, transport, civil society, SME-SMI, etc.). Northern Africa constitute important contri- The modus operandi of the “Inter-Regional To this is added networks with a butions for improving cooperation with these Mediterranean Workshops (AMI)” has been spaces in the framework of Interreg III. acknowledged for the quality of its results and technical purpose (EURISLES, Despite the ambitious goals expressed during operating procedures. It seems appropriate ISLENET, etc.) or bringing together the so-called “Barcelona” process, progress to renew this modus operandi, while extend- sectoral interests (Association of remains modest. Following the work of the ing the process to partners in Mediterranean 68 Inter-Regional Mediterranean Workshops Third Countries, especially those on the south- Island CCIs, etc.). (AMI), a series of strategic priorities for de- ern shore. centralised cooperation in the Mediterranean THE OUTERMOST REGIONS a separate dimension

«Like ships, that sailed for sunny isles, but never came to shore.» Thomas KIBBLE HERVEY (1847)

ix of the twenty one EU Island regions (Açores, Madeira, Martinique, Guadeloupe, Réunion and

Canarias) are “outermost” or “ultraperipheral” regions and defined as thus by Article 299.2 of the SCET. An extreme remoteness from the European mainland, a totally different spatial environment, a strong degree of economic dependency, generally very difficult social and economic conditions, a special vulnerability to natural disasters … The “ultraperipheral” dimension is a case apart.

Absolute remoteness

he distance of the outer- are therefore totally, or at least These regions are defined in Article 299.2 of most regions from their massively, dependent on air the TEC, which refers to the “…structural mainland can range transport to get to Europe, a social and economic situation of the French T overseas departments, the Azores, Madeira from a minimum of some one fact that distinguishes them and the Canary Islands, which is com- thousand kilometres up to from those island regions clos- pounded by their remoteness, insularity, small size, difficult topography and climate, 9,400 km for Reunion. This est to the European mainland. economic dependence on a few products, the explains why, with the excep- permanence and combination of which se- tion of the Canary Islands, verely restrain their development.” This situation has many con- For further precision on the special dimen- these regions do not have sequences. Choices in terms sion of the outermost regions, we recomend regular and continuous pas- of means of transport, or the reading of the various documents or analysis undertaken on the initiative of the senger shipping links. They transport companies, are even Conference of Presidents of more limited in these regions. the Ultraperipheral Regions (such as the ACCESSIBILITY TO THIRD COUNTRIES For passengers, the minimum Cayenne Memorandum, March 1999; or the First Contribution on the future of the Eco- Some ten years ago, Martinique was price to get to or from the nomic and Social Cohesion, Las Palmas, Feb- connected to the European Continent and E ruary 2001). mainly to France / Paris. This trans-Atlantic region is higher, owing to the traffic was the main source of passengersU lack of “cheap” alternatives, with 63% of the traffic, carried by five and, in some of these regions, For example, it takes 12 days airlines on average: Q it is the equivalent of almost to deliver goods from the main- This service was providedI by: Air France, Minerve, Aéromaritime, Air one month’s salary. For land to the Antilles. This se- Liberté, Air Martinique,N Corsair, Star goods, the predominant use of verely handicaps shops and Europe, and Aérolyon. cargo ships or container ships companies in these regions, Now, owing to restructuringI in the sector, only three carriersT remain: generally entails much longer forcing them to store very large Air France, Corsair and AOM/Air Liberté, loading and unloading times quantities. which mergedR recently. than for routes served by Charter Aérolyon has announced that it will cease servingA the Antilles Martinique- “Roll-On/Roll-Off” ships. Guadeloupe as from April 2001. Given the length of the cross- However, this restructuring in the number ings, shipping times are meas- of airlinesM has not led to a drop in seat numbers. ured in days rather than hours. 69 Off the coast of Europe

A TOTALLY DIFFERENT SP ATIAL CONTEXT

A totally different spatial context

he nature of the “remo- ket. Their nearest neighbours distinguishes them fundamen- teness” of the outermost are the Amazonian forest, the tally from the island regions Tregions is not the exact Sahara desert, or dispersed and closer to the European main- same everywhere, however. generally sparsely populated land. The French Overseas Depart- archipelagos, a factor which ments and the Canary Islands are far from Europe and their PROBLEM OF DELIMIT ATING THE FISHERIES ZONES mainland, but belong to other The action by the authorities of neigh- fine their claims, most of which remain spaces (Caribbean, Indian bouring islands in boarding Guadeloupe fairly vague. fisheries boats in the last two years, in To this end, it might be a goodE idea to Ocean), lie close to other con- areas which appear to lie outside French carry out global negotiations by setting tinents (Africa, America) or territorial waters, highlights the gaps in up a system of regional cooperationP with even adjoin third countries terms of delimiting fisheries zones in the these third countriesU which, as regards smaller Antilles Arc. the fisheries part, would provide for: (Brazil, Surinam), while the However, it is to be noted that the close - A harmonizationO of the fisheries regu- Azores and Madeira, on the geographic proximity of the islands of the lations in this zone which might be nec- other hand, lie in the middle of Minor Antilles Arc makes it particularly essaryL for the issue of a fisheries licence, difficult to delimit the territorial watersE- A map designed to forecast preferential an ocean. Be that as it may, in and exclusive economic zones. zones for the fishing of certain species, all cases, these regions lie sev- However, this problem of maritimeD fron- - An exchange of technique and know- tiers must be dealt with between the rel- how, eral hundred, or even several evant countries and theirA competent au- - The implementation of a coherent strategy thousand, kilometres from any thorities so as to identify the possible fish- designed to obtain the appropriate moni- major industrialised and devel- eries zones, the mainU habitat zones, breed- toring resources: for example, the loca- ing grounds, etc. tion of the ships and knowledge of their oped area, which could act as As a prerequisiteG to such negotiations, it catch. 70 a customer base or local mar- is essential that the islands clearly de- The outermost regions : a separate dimension

In many ways, the future of all THE ASSOCIA TION OF CARIBBEAN ST ATES these regions is closely linked The Conseil Régional is associated with V. Promote the development and appli- to international law and rela- the work of the Association of Caribbean cation of methodologies for the economic tions. For example, the inter- States (ACS) the aim of which is to have assessment of natural resources, as well adopted a regional strategy in the field as the numerous environmental services weaving of the French Antilles of the Environment the main objective that these can offer, with special emphasis within the Caribbean and their of which is to “(preserve) the Carib- on biological diversity; bean Sea as a unifying factor and centre VI. Support efforts carried out to develop proximity to the American con- for sustainable development for the and use vulnerability indicators as well tinent affect large areas of their Caribbean people”. as sustainable development indicators in existence. The exploitation of This environmental strategy is a logical the Region; follow-up on the preparation by the ACS VII. Improve the exchange of experiences the region’s fisheries resources of a Memorandum of Understanding for and intra and extra regional co-opera- (often a source of conflict, ow- the Establishment of the Sustainable Tour- tion, to minimiseE the effects of natural ing to the depletion of fish ism Zone for the Caribbean, or the Agree- phenomena and environmental emergen- ment for Regional Co-operation on Natu- cies, either accidental or man-made; stocks) is subject to agreements ral Disasters. VIII. AddressU the underlying causes of between Martinique, The main aims of this environmental poverty that bring about environmental Guadeloupe, Santa-Lucia, strategy are to “(facilitate) decision mak- deterioration and interfere with sustain- ing processes, (co-ordinate) mechanisms able development;Q Dominica, Venezuela and the and co-operation between ACS Member IX. Formulate policies aimed at counter- Dutch Antilles. States and governmental, non-govern- actingI land degradation processes and mental organisations and relevant agen- deforestation leading to desertification, cies involved in the study and conserva- which negatively affect sustainable de- Similarly, the organisation of air tion of the environment and natural re- velopment.N transport in the Antilles in- sources, other bodies involved in the In this context, the ACS is studying a mitigation and management of disasters Inumber of functional cooperation volves the regional airlines of and related matters in the Caribbean projects, such as: the French regions of America, Basin are also involved”. T “The Study and Protection of coastal eco- The priority aims of the strategy are as systems as a basis for sustainable tour- French national airlines, the follows: ism development” the general objective regional airlines of the various I. Prevention, mitigation and controlR of of which is to create a scientific basis countries of the Caribbean environmental, coastal and marine deg- for sustainable tourism development in radation; the Caribbean, drawing on the existing (BWIA, LIAT, Jamaica Airways, II. Prevention, mitigation and Acontrol of scientific capacities in the countries of etc.) and even US national car- coastal marine pollution by terrestrial the Region, with a view to identifying the riers and their subsidiaries. activities and sources; necessary conditions for managing III. Designing and implementation of coastal ecosystems. A regional resource The result of this complex, and measures for the adaptationM and mitiga- management process, as envisaged in this ever changing web (crises, tion of the effects of climatic changes, framework, should make it possible to especially rise of sea levels, taking into maintain the biodiversity of the ecosys- mergers or variable synergies) consideration regional experiences and tems and their productivity rates. is that the major airlines limit initiatives such as Caribbean Project for The formulation of a proposal for achiev- themselves to operating the Adaptation to Global Climate Change ing international recognition of the Car- (CPACC); ibbean Sea as a Special Area in the Con- most profitable routes, leaving IV. Encourage policies and promote the text of Sustainable Development, which the others to the small regional application of measures to conserve, in- culminated in the adoption of the United airlines, which are highly frag- situ as well as ex-situ in accordance with Nations resolution A/RES/54/225. This national and international legislation, the latter project called for a more global ile financially. biological diversity of the region, particu- mechanism for protecting and managing larly marine and coastal species; the Caribbean Sea. The Caribbean space comprises islands with widely varying sta- cern the region in its entirety differences. Martinique and tuses, ranging from sovereign (environment, renewable ener- Guadeloupe therefore strive to states to associated territories, gies, economic trade, cultural increase their participation in regional authorities, etc. To action, etc.), it is essential to cooperation structures, which deal with problems that con- overcome these institutional raises political problems when trade, negotiation or decision- FUNCTIONS AND UTILITY OF THE DIASPORA making circuits go via the States Out-migration of a part of the population for overseas communities also facilitates an in- and their administrations, and economic reasons has had effects on the is- terchange of knowledge and experience which where the regional level is lands’ economy that are only now being as- has proved valuable to the Azores in several sessed. ways, notably byS helping the islands to mod- “short-circuited” or simply ig- The creation of a diaspora, or formation of ernise moreE quickly than would otherwise nored. Azorean communities abroad, has enabled a Rhave been possible, given the difficulties re- sense of cultural identity to be maintained,O lated to the distances and the low level of in- which has in turn encouragedÇ the desire to dustrialisation (obsolescence factor). Those In the Azores, however, the ab- return to the islands.A The returning popula- returning to the islands are able to introduce, sence of such neighbouring tion ensures a constant injection of capital by explain and implement new technologies and maintaining or, later, buying housing and land. concepts. spaces does not mean that the The permanent links established with these archipelago has a marginal po- 71 Off the coast of Europe

PACKAGING WASTE IN GUADEL OUPE sition with regard to interna- Guadeloupe, owing to its insular Parameters Guadeloupe Distance between Pointe à Pitre and Paris 6,756 Km tional questions. In fact, its iso- nature and the fact that is an ar- Average flight time 7 hours lation in an Ocean enables the chipelago, suffers from major Nearest countries Dominica – Antigua – Montserrat - Venezuela handicaps. Number of islands in Guadeloupe 8 archipelago, by virtue of the Average distance between the islands 50 Km It has a very high household refuse Maximum distance between the islands 250 Km Law of the Sea, to enjoy a con- Population of Guadeloupe 422,496 Inhabitants ratio, 413 kilogrammes per inhab- Surface area 1,705 Km2 siderable economic exclusive itant per annum, which is in ex- Population density 248 Hab./Km2 cess of the national ratio (378 Kg/ Seasonal tourism 500 000 Visitors per year zone of 958,000 km², which, Politico-administrative status Single-départment region Inhabitant per year). This figure Number of municipalities 34 while it allows the inhabitants covers part of the packaging waste Grouping of communes E2 SICTOM Responsibility for waste collection Municipality exploit fish resources such as of the commercial and craftwork Responsibility for waste disposal Municipality sector (which constitutes the lion’s Packaging recycling objectives 25% tuna, raises enormous prob- Entity which manages the recycling system P Eco-emballages share of the economic fabric of Sorting centre 1 planned in the PDMA lems of monitoring, both as re- Guadeloupe) whose waste is col- Selective collection Performed in the communes lected together with the household Composting of packaging waste Non-existent gards fishing and dumping of Individual composting U In course of preparation refuse. This factor serves to in- Incineration of household waste Non-existent waste in the high seas. Incineration of hospital waste In operation since 1995 crease the ratio per inhabitant. Unlawful dumps in use 15 Conversely, and for the same rea- Controlled landfills in operation 3 sons, the ratio of ordinary indus- Disposal plant in the PDMA O 4 The archipelago’s position in Landfills planned in the PDMA 27 trial waste (131 Kg/Inhab.), which Packaging waste in 2000 11,600 Tonnes per year the middle of the Atlantic also corresponds exclusively to ordi- SICTOM : Syndicat IntercommunalL de Traitement des Ordures Ménagères (inter-municipality household refuse disposal body) imbues it with major geo-stra- nary industrial waste actually col- PDMA : French acronym meaning municipal solid waste elimination plan lected by the companies, is low. E Household refuse and waste tegic importance for monitoring Tonnage Ratio/Habitant Proposals for joint action Name routes between America and To increase awareness among the 1994 2005 1994 2005 European institutions, not only of Household refuse 151 000 T per year 206 000 T per year 413 Kg 475 Kg Europe. The US air base in VegetableD waste 22 000 T per year 26 000 T per year 60 Kg 59 Kg the insular situation of our regions, Bulk refuse 23 000 T per year 33 000 T per year 63 Kg 76 Kg Lajes, on the island of Terceira, but also of their archipelagic char- Scrapped vehicles 5 000 T per year 9 000 T per year acter. Ordinary industrial waste 48 000 T per year 58 000 T per year 131 Kg 74 Kg has long been regarded by the ASewage sludge 4 000 T per year 7 000 T per year To modulate certain European di- Total 253 000 T per year 339 000 T per year US government as being one of rectives so that they take account the most important external in- of the specific constraints Ulinked with insu- hold waste collection and disposal in stallations for the country’s se- larity. Guadeloupe, it is important that account be To grant specific aid to the outermost regions taken of: curity, together with the for the transport of wasteG to the final disposal - The need to stagger investments in relation Keflavik base in Iceland. The or storage units. to fume treatment (almost 30% of total in- facilities of this base were re- Furthermore, in light of the total absence of vestment) in the household refuse disposal initial equipment in Guadeloupe; in light of the plants. cently used to refuel US Air fact that the municipal solid waste elimina- - A system for financing the operation when Force aircraft in flight and al- tion plan is expensive and difficult to operate; setting up the PDMA equipment during the and in light of the financial situation of the first five years on heavy equipment. lowed the rapid intervention of municipalities with responsibility for house- US military forces on the thea- tre of conflicts in the Near and Middle East, for example dur- The international dimension of limited to diplomatic or strate- ing the Gulf War. the outermost regions is not gic questions, but is also manifested via the phenomenon of US COMMAND the “diasporas”. These are inhabitants of these regions or their descendants living overseas (sometimes for generations), but who maintain close links with their country of ori-

On this map by the US “Department of Defence”, it is noted that the Azores and Madeira Islands zone forms an integral part of the US army’s command zone covering the North Atlantic and the territory of the USA (USJFCOM), not of the US army’s European command zone (USEUCOM).

gin. Some of these communities settled in the former colonies of their State, while others were driven by poverty to 72 clearly defined countries or re- The outermost regions : a separate dimension gions in the New World, and yet Madeirans in Angola or South some outermost regions include others sought employment on Africa, of Canarians in Ven- Diasporas from other countries the very soil of their mainland. ezuela, and large numbers of or continents (for example Communities of Azorean origin people of Antilles origin are Hindu or Chinese communities are thus found in Canada or found in mainland France. in the French Overseas Depart- Rhode Island, descendants of Conversely, the population of ments).

A considerable economic dependence

he economy of the local produce, even everyday On the neighbouring markets, outermost regions is goods, on the shop shelves. companies in these regions Tcharacterised by a small must, not only try to sell goods productive base, heavily dependent on a few unprocessed LACK OF OPENNESS T O THIRD COUNTRIES agricultural products (histori- AND DIFFICUL TY OF A CCESS T O CARIBBEAN MARKET S cally, the dairy industry in the A disparate legal and commercial frame- economies of scale are difficult to obtain, Azores, or bananas and sugar work in the Caribbean in light of the small size of the islands. For in the Antilles). It is affected The Caribbean has a host of legal systems example, with a few exceptions (Haiti, Porto deriving from French and Spanish Civil law, Rico, Trinidad and Tobago), the population by several factors such as an and British common law. of these countries does not exceed one million, imbalanced local economic Moreover, the existence of specific com- a factor which limits the size of the local fabric, the poor absorption mercial systems militates against trade. On market and economic performance. the one hand, produce of the ACP (Africa - Costs: Guadeloupe is also handicapped capacity of the local market, Caribbean Pacific) countries enjoys free by the fact that the other Caribbean coun- problems of dimensioning of access to the EU market according to the tries enjoy lower production costs owing infrastructures, procurement principle of non-reciprocity of commercial to lower labour costs. obligations defined in the Lomé accords. Moreover, being an island, Guadeloupe is costs and times, stock size, the On the other side, the French Overseas dependent for supplies on sea and air trans- financial fragility of compa- Departments enjoy the benefit of the oc- port, a factor which generates particularly troi de mer (sort of “customs duty” on im- high transport and charter costs. nies, etc. ported produce) which acts as somewhat However, the low volume of regional trade of a brake on exports from the ACP coun- precludes competitive freight prices with GDP per capita Unemployment tries. neighbouring countries. Only significant in PPS rate AVERAGE OF RATES Moreover, Guadeloupe’s export potential is growth in trade could reduce freight costs. (EUR15 =100) % severely straightjacketed by the so-called However, to do this, the financial obstacle 1999 1999 “negative lists” (inventory of products from must be overcome. Island Regions other than 85 9,3 Outermost Island Regions the French Départements in the Americas - The financial obstacle: the lack of di- which are subject to high taxes when en- rect convertibility between the French franc Outermost regions 63 19.1 tering the territory of the neighbouring and the Eastern Caribbean dollar and the All Island Regions 78 12.1 Caribbean States). need for triangular conversion via the USD EU AVERAGE 100 9.4 Finally, the lack of harmonization between is a major inconvenience which does nothing Source : Eurisles, EUROSTAT, Offices statistiques régionaux the arrangements applicable to foreign in- to facilitate trade with the other Caribbean vestments constitutes an obstacle to inward countries. The possibilities for develop- investment. Moreover, the dual taxation on In short, according to the study carried out company profits, the lack of protection for by the Union Economique des Régions ment and expansion are se- investments, and the lack of taxation con- Ultrapériphériques1 among the five main verely limited. On their local ventions between the French Départements obstacles to trade listed by entrepreneurs, market, producers in these in the Americas and the countries of the especially Guadeloupe entrepreneurs, when zone are all factors that hold back the ini- asked about the obstacles which prevent regions have to compete tiatives of native investors. them from accessing external markets, are: against European producers Tariff and non-tariff obstacles the cost of commercial follow-up, costs of Apart from tariff quotas, there are also advertising and promotion, the cost of can- who enjoy much greater numerous non-tariff measures. vassing, and the lack of cost competitive- economy of scale. Above a Other factors that hinder trade to a greater ness. certain threshold, which var- or lesser extent are: the lack of technical In any case, the major challenge facing harmonisation, the problem of rules of origin Guadeloupe today is to find sufficient ex- ies according to the goods in and sanitary and plant health measures. ternal outlets, both to fully utilise its pro- question, shipping costs are Obstacles proper to the spatio-economic duction capacities, and to reduce its vul- offset by the difference in pro- environment: nerability to imports. - Small markets: weakness of productive Guadeloupe has a role to play as a major duction costs. For this rea- structures in Guadeloupe, or in the other relay or intermediary between the coun- son, food produce imported Caribbean countries, with the result that tries of the Caribbean region and of the EU. from Europe often supplants 1 « Initiative de coopération interrégionale pour le développement des secteurs productifs des 73 régions ultrapériphériques : l’accès aux marchés extérieurs », UPEC - Novembre 1999 Off the coast of Europe

and services while labouring TRADE B Y THE FRENCH ANTILLES – IN 1996 V ALUE under European social and wage costs, but also overcome customs barriers, including tariff barriers, imposed by third countries.

Finally, producers in the outermost regions have great difficulty in competing on the European market. They are forced to compete, either against the production of their neighbours, which is much cheaper because social welfare and salary costs are lower, or production scales much greater (for example bananas, sugar or tropical produce), or

GUADELOUPE/CARIBBEAN TRADE (Billion Euro) IN 2000 Guadeloupe has a neg ative com merc ial trade. The trade Imports to Guadeloupe Exports from Guadeloupe is largely unbalanced with the Antigua 0.64 (agricultural products) 0.06 EU since rum an sugar ca ne Dutch Antilles 61.2 (fuel) 0.11 amount to a little sha re only Aruba 3.3 (fuel) - of the va lue of im ported Barbados 0.26 - ma nufa ctured goods. Tra de Cayman islands - 2.39 (boats) with the Ca ribbean zone re- 1.25 (agricultural products 0.87 - mains marginal except for oil Cuba 0.06 products imported from Trini- Agri-foodstuffs industry 0.37) da d or D utch islands . Dominica 1.88 (mineral products 1.43) 0.14 2.26 (agricultural products 0.81 - Santo Domingo 0.14 Agri-foodstuffs industry 0.86) Iceland or Canada, and if, for Haiti 0.35 0.15 Santa Lucia 0.12 0.02 similar reasons, 90% of their St Kitts - 0.08 trade took place, not with Trinidad-Tobago 37.21 (fuel) 0.12 Europe, but with a mainland British Virgin Islands - 0.26 located on the other side of TOTALS 108.5 3.52 the Atlantic.

with producers established on ing zone, remains marginal. The effects of this situation are the European continent, which To get an idea of the problem, reflected in the economic and are not subject to the same imagine the situation of Sic- social indicators of these re- constraints in terms of trans- ily, Normandy, or Jutland if gions, which are, in most port, and whose local market they were under the sover- cases, among the lowest in the is much larger. eignty of the United States, EU.

One of the consequences of Share of main production in exports in 1998 this situation is that trade is highly unbalanced in favour of Region Products % in value imports, giving a massive ad- Martinique banana 40 vantage to trade with the Guadeloupe banana 35 mainland or with the Euro- Açores dairy products 57 pean continent, despite their Source: Eurisles great distance, while trade with third countries, includ- 74 ing trade with the neighbour- The outermost regions : a separate dimension

LIST OF THE REGIONS WITH LIST OF EU REGIONS WITH THE LOWEST GDP PER CAPIT A: THE HIGHEST UNEMPL OYMENT RA TES: GDP (in PPS) per capita as % of EU average (1999) The EU average is 8.4 % (in 2000) PIB (en SPA) par habitant en % de la moyenne de l'UE (1999) La moyenne de l'UE est à 8,4 % (en 2000) Réunion (F) 51 Réunion (F) 33.1 Ipeiros (EL) 51 Calabria (E) 27.7 Guyane (F) 51 Martinique (F) 27.7 Extremadura (E) 52 Guadeloupe (F) 26.1 Açores (P) 53 Ceuta y Mellila (E) 25.5 Dytiki Ellada (EL) 53 Andalucia (E) 25.3 Peloponnisos (EL) 55 Extremadura (E) 24.8 Guadeloupe (F) 56 Sicilia (I) 24.2 Anatoliki Makedonia, Kai Thraki (EL) 56 Campania (I) 23.6 Centro (P) 57 Guyane (F) 22 Alentejo (P) 58 Sardegna (I) 20.5 Ionia Nisia (EL) 60 Halle (D) 19.2 Thessalia (EL) 60 Dessau (D) 18.1 Andalucia (E) 60 Asturias (E) 17.9 Norte (P) 61 Puglia (I) 17.6 Calabria (I) 63 Basilicata (I) 17.4 Martinique (F) 64 :: In 1999, the 4 outermost regions, the 4 Greek Regions, 2 Portugue- The French Overseas Departments are also among the regions most se Regions and Extramadura were still on less than 60% of the EU affected by unemployment. average. Source : EUROSTAT « Statistics in focus » - 7/2001. Source : EUROSTAT « Statistics in focus » - 1/2002.

Exceptional vulnerability to natural risks

wing to their geographic EXAMPLES OF THE COST S OF NA TURAL CA TASTROPHES/REGIONAL location, most outer- BUDGET F OR INVESTMENT (REPORT: EARTHQUAKE IN THE AZORES) most regions are ex- O The Azorean region is periodically affected by seismic activity, but the earthquake that took tremely vulnerable to natural place in 1980 is considered a highly significant example, due to the fact that the city of Angra risks. was afterwards classified as a World Heritage Site. This meant that closer attention was paid to the reconstruction process. The total cost of the reconstruction was then calculated and published1 ; this was evaluated at 279.3 million euro. A further study carried out by Dr Correia Seismic or volcanic risks have Guedes2 , the results of which were presented at the PLANET International Congress, organ- caused spectacular damage in ised by the Instituto Superior Técnico in Ponta Delgada, Azores, in October 1999, came up with the past. The complete de- different figures: “573.6 million euro was the estimate of overall losses at 1998 prices. The private housing reconstruction effort has amounted to 309.3 million euro, representing 54% of struction of the town of Saint- total losses”3 . Pierre (then capital of In 1998 another earthquake caused vast destruction on the Sislands of Pico Faial and S. Jorge. Martinique) and of its popula- The Regional Government of the Azores received financial assistance from the Central Portu- guese Government and from the EU (QCA II reserve, andE also PEDRAA II). Several sectors were tion by the eruption of Mount affected, namely agriculture (roads and division walls), education (school buildings needed to Pelée in 1902, or the partial be rebuilt), culture (churches and other buildings considered as public heritage) and other sectors. A Legislative Decree (15-A/98/A) introducedR provisions to assist the housing sector, destruction of the town of and a further Resolution (230-A/98) granted financial support to help victims’ rebuild their Angra do Heroismo in the homes. Azores, in 1980, causing some Estimated expenditure for 2004 (in euro) toO repair the damage caused by this event, which was aggravated by the severe storms of 1996/1997, is shown in the following table: 574 million Euro worth of dam- Ç age, are among the best known Accomplish Accomplish Accomplish Accomplish Proposed Proposed Proposed Proposed examples. 1997 1998 1999 2000 2001 2002 2003 2004 18 122 32 465 62 633A 41 028 37 559 38 051 31 798 29 703 Source : Subsecretário Regional do Planeamento e Assuntos Europeus Located on fault lines, the The estimates refer to the reconstruction and rehabilitation of damaged structures. Azores and Martinique and Guadeloupe are liable to suffer 1. Published in 10 Anos Após o Sismo dos Açores de 1 de Janeiro de 1980, by the Secretaria major disasters at any time. Regional de Habitação e Obras Públicas, and Laboratório Nacional de Engenharia Civil, Lisbon, The statistical probabilities of 1992 such events are relatively high, 2. From the Gabinete da Zona Classificada de Angra do Heroísmo 3. Quotation from the communication « 1st of January of 1980 earthquake on Terceira, Graciosa and their potential conse- 75 e São Jorge », Correia Guedes . Off the coast of Europe

quences for persons and prop- SYNTHESIS OF MAJOR RISKS erty all the higher due to popu- PER MUNICIPALITY lation growth in the urban areas in recent decades.

The presence of active volcanoes in the Antilles, the Azores and in Reunion is a tourist attraction, but is also a potential threat for these regions, and sometimes severely reduces their habitable surface area.

While the islands of Macaronesia (Group formed by the four archipelagos of the At- lantic Ocean, i.e. the Azores, the Canary islands, the Cape Verde Islands and Madeira) are buffeted by strong Atlantic storms, Guadeloupe, Martinique and Reunion periodically suffer tropical storms, and even cyclones. With winds as high as 300km/h, the latter disrupt all activity and cause considerable damage. List of dangers: 5 dangers present Cyclones dangers 4 dangers present floods dangers As the Indian Ocean and the earthquakes dangers Atlantic are more sensitive to 3 dangers present landslides dangers rising sea levels than closed volcanoes dangers Source : D.D.E./S.A.E./Observatoire, DSF Cartography : Eurisles technological dangers seas such as the Baltic or the Mediterranean, these regions Taken together, all of these fac- ultraperipherality represents a are, in the long term, more vul- tors, which we have described separate dimension, justifying nerable to the predicted conse- briefly, illustrate that special treatment by EU poli- quences of the greenhouse ef- cies. fect.

ULTRAPERIPHER Y: A DISTINCT AREA «The ultraperiphery is characterised by two specific features – size and isolation . The outermost regions do not have access to the main European centres on which they rely at political, economic and historical level, nor are they linked to the major world centres. (…) Their small size make them totally dependent on external resources, markets and services, and their absolute remoteness increases significantly their overall costs, condemning them to extreme isolation.» First contribution to the future of social and economic cohesion. Conference of the presidents of the RUP, Las Palmas, February 2002. Similarly, the Conference of the Presidents of the RUP in Funchal on 31st March 2001 stressed that “the implementation of common policies should not jeopardise the growth of basic economic activities for each of the outermost region, but on the contrary strengthen them by drawing on their comparative advantages”. The opinion of the ECO SOC on the outermost regions (rapporteur Mr López Almendáriz) expresses views along the same lines.

76 EU RESPONSES the responses and their limitations

«No man is an Island, entire of it self; every man is a piece of the Continent, a part of the main; if a clod be washed away by the sea, Europe is the less…» John DONNE (1610)

he E.U. has intervened in the Islands through its Regional policy, and, more recently, by a certain evolution of the legal framework. Nevertheless, the limits of this intervention are obvious: the TStructural Funds have hardly managed to solve the economic and social difficulties of these regions, since their position in the classification of regional GDP/head has moved very little during the last twenty years. Legislation in fields such as competition, taxation, fisheries or farming seldom mention the Islands, or if so insufficiently. Introducing competition sometimes brings more problems in these regions than it is supposed to solve, as shown by the liberalisation of transport services.

The development of the legal framework

hat steps has the Eu- creation and strengthening (from The vast majority of European ropean Union taken to the end of the 1980’s) of the States with sovereignty over is- Wrespond to the prob- Structural Funds, and, especially, lands have, to varying degrees, lems raised by its islands and the political emergence of re- recognised that the administra- outermost regions, and with gional powers, with a growing tion and development of these what results? number of island regions enjoy- territories call for specific meas- ing autonomy or specific ar- ures. The responses have varied The first point to be made is that, rangements. according to the historical, geo- for a long time, the problem of graphic, cultural or political con- the islands was virtually ignored. Community intervention mani- texts, ranging from a distinct po- During the first twenty years of fested itself in two fashions: by litical / administrative status to the Community’s existence, the developments in the legal frame- distinct taxation arrangements, legal instruments (with the ex- work, including the Treaties and specific legislation, etc. ception of a brief reference to the secondary law, and especially via French Overseas Departments in the action of the regional policy Article 227.2 of the Treaty of and the interventions of the Rome) contained neither the fi- Structural Funds. What effects nancial means (the ERDF did not have these had? appear until 1975), nor the necessary political will to deal with This is not the place to under- the specific situation of these re- take a detailed discussion on the gions. legal developments, which, individually or collectively, have dif- This situation changed very ferentiated the islands and the gradually, thanks to several fac- outermost regions during the tors, including the accession to course of their integration in the the Community of an increasing Community. We will limit our- « What status for Europe’s islands? » number of States with islands, the selves to a few major factors. ISLAND COMMISSION 77 Ed. L’Harmattan Paris 2000 ISBN : 2-7384-9250-9 Off the coast of Europe

The acceptance of islands as a special case in EU law

he specific dimension of In a number of cases (France, As a factor of collective differen- the island territories has Netherlands, UK, Denmark, tiation (in contrast to this gamut Tgenerally been recognised Spain, Portugal, Finland, etc.) of individual provisions), the is- within the Member States of the The Accession Treaties allowed land phenomenon was not re- EU, as evidenced by the politi- for special provisions in relation ferred to in the Treaty until the cal/administrative statuses to such and such a territory. 1990’s. A distinction should be granted to them. These provisions cover an ex- made, however, between two dif- tremely broad range of arrange- ferent approaches: one concern- Leaving aside the case of those ments, ranging from minor ad- ing the islands in general, and the islands which, while belonging to justments to actual exclusion other specific to the outermost a Member State, are not members from the field of application of the regions. of the Community (for example Treaty, or of certain of its provi- French Polynesia, the Dutch An- sions. The problem of insularity or is- tilles, the Channel Isles or Fae- land nature was initially raised roe), it can be seen that, of the Such a possibility, however, was by the Greek government at the 21 island regions forming part of only offered to regions which, European Council in Rhodes in EU15, the vast majority have a owing to constitutional provi- 1988, but it was not expressed specific status. Seven regions sions or the national political in the fundamental law of the currently have a degree of au- context, were in a position to in- Community until 1992, on the tonomy including legislative or fluence the accession negotia- occasion of the Maastricht Treaty tax arrangements. Six others, tions carried out by their State. (Article 154 dedicated to the while not being autonomous, In contrast, those regions which trans-European networks). The nevertheless have a distinct sta- lacked the necessary legal instru- island phenomenon was ac- tus or special powers. The other ments or sufficient political recorded greater acknowledgement 8 island regions, governed by sources were ignored. in 1997, via the Amsterdam common law, are almost all small Treaty (amendment of Article 158 communities (generally some This situation gave rise to a wide in relation to economic and so- tens of thousands of inhabitants), degree of heterogeneity with re- cial cohesion, and the adoption which would not form fully- spect to the manner in which the of a Declaration No. 30). fledges regional authorities but various islands were dealt with for the fact that they are islands. in the Accession Treaties, with The question of the outermost Furthermore, in several States (in totally different situations includ- regions gradually came to the Greece via the Minister for the ing within the same Member fore following the accession of Aegean, and also in Ireland, Fin- State. As examples in point, the Spain and Portugal, which gave land or Denmark) specific struc- system governing the Scottish rise to the integration of the Ca- tures have been set up at national archipelagos within the EU is in nary Islands, Madeira and the level to deal specifically with the contrast to that governing the Azores, which, owing to their problems of certain island Channel Isles or the Isle of Man, highly specific geographic, cli- groups. In the countries apply- that governing Bornholm to that matic and economic character- ing for accession, the island of applicable to Faeroe or Green- istics, were quite similar to the Gozo has a specific Minister in land, while that applicable to the French Overseas Departments. the Maltese government. Balearic Islands differs from the Moreover, these regions were Canary Islands, and that govern- subject to distinct legal arrange- The successive accession of the ing the French Overseas Depart- ments, both as regards national States to the European Commu- ments contrasts with the situa- law (ranging from autonomy, to nity raised the delicate problem tion in Corsica. special status, to specific or cus- of transposing this recognition of toms arrangements, etc.), and via 78 the islands into Community law. The responses of the EU and their limitations the arrangements contained in MAIN PR OVISIONS IN RELA TION TO the various Accession Treaties. THE ISLANDS AND OUTERMOST REGIONS ADOPTED IN THE TREA TIES EST ABLISHING THE COMMUNITY This shared legal substrate, com- Treaty of Maastricht (1992). - Adoption of Article 154 (ex.129b) on the Trans-European Networks which refers to bined with the extreme nature of “the need to link island, landlocked and peripheral regions with the central regions of their situation, contributed to the the Community”. emergence of specific arrange- Adoption of a Declaration on the Outermost regions. Treaty of Amsterdam (1997) ments proper to them in EU law - Inclusion of a brief reference to the situation of the island regions in Article 158 and policies. This was first given (ex. 130) in relation to economic and social cohesion: “In particular, the Community concrete expression towards the 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 end of the 1980’s, with the ap- areas.” This wording is, however, somewhat controversial, in so far as it takes a dif- pearance of the Programme of ferent form from language to language; the Italian referring to “island or least favoured regions”. Both the European Parliament (Viola Report, Opinion of Legal serv- Options Specific to the Remote ices) and the Economic and Social Committee (Opinion on the «Guidelines for inte- and Insular Nature (POSEI) au- grated actions in favour of the island regions of the EU following the Treaty of Am- thorising a number of sterdam (Article 158)») have since called for a broad interpretation of this wording, and for the application of Article 158 to all the islands, in keeping with the spirit of derogations or adaptations in the Declaration No. 30. field of the CAP, the CFP, and - Adoption of Declaration 30 whereby:“ The Conference recognises that island re- taxation and customs. The gions suffer from structural handicaps linked to their island status, the permanence of which impairs their economic and social development. The Conference accordingly adoption of the POSEIDOM acknowledges that Community legislation must take account of these handicaps and (1989) followed by the POSEIMA that specific measures may be taken, where justified, in favour of these regions in order to integrate them better into the internal market on fair conditions.” and the POSEICAN (1991) thus - Adoption of Article 299.2 (ex-article 227 ), on the outermost regions. introduced the concept of “par- “2.The provisions of this Treaty shall apply to the French overseas departments, the allelism” between the treatment Azores, Madeira and the Canary Islands. However, taking account of the structural social and economic situation of the French granted to the French Overseas overseas departments, the Azores, Madeira and the Canary Islands, which is com- Departments, Azores, Madeira pounded by their remoteness, insularity, small size, difficult topography and climate, and the Canary Islands, and economic dependence on a few products, the permanence and combination of which severely restrain their development, the Council, acting by a qualified majority on a made a distinction between these proposal from the Commission and after consulting the European Parliament, shall regions and the other islands of adopt specific measures aimed, in particular, at laying down the conditions of application of the present Treaty to those regions, including common policies. the Community. Finally, explicit The Council shall, when adopting the relevant measures referred to in the second reference was made in the Treaty subparagraph, take into account areas such as customs and trade policies, fiscal to ultraperipherality, firstly with policy, free zones, agriculture and fisheries policies, conditions for supply of raw materials and essential consumer goods, State aids and conditions of access to structural funds the adoption of a Declaration at and to horizontal Community programmes.” the time of the Maastricht Treaty, and then by the inclusion of a applied concretely, and whether have not yet been applied. This new Article 299.2 at the time of these provisions will enable them has given rise to various protests the Treaty of Amsterdam. to develop the specific measures and, on the occasion of the Nice required by their situation. Inter-Governmental Conference This means that there is now a (2000), the Conclusions of the distinct legal framework for the In the case of the outermost re- Presidency saw fit to recall that: islands and for the outermost regions, the Commission, at the “On the basis of Declaration No gions, although the provisions in request of the Council, drew up 30 annexed to the Treaty of Am- relation to the islands can also, a catalogue of measures intended sterdam, the European Council ipso facto, apply to the 6 outer- to implement the provisions of confirms the need for specific most regions which are also is- Article 299.2 of the Treaty. Some measures for the benefit of island lands. have already been implemented, regions, in accordance with Ar- while others are pending. ticle 158 of the CET, in view of The question which all these re- their structural handicaps which gions need to ask now is how will In the case of the islands, the pro- impair their economic and social the provisions adopted in visions adopted in Amsterdam development, within the limits of Maastricht and Amsterdam be the budget resources available.“

79 Off the coast of Europe

Some implications in secondary legislation

he number of references to agriculture (procurement sys- on the contrary – rare in the case the islands in EU legisla- tems, etc.) or taxation in these of the islands, more numerous in Ttion has grown in line with regions. that of the outermost regions – the increase in the Treaties. Is- contain substantial measures or land status is virtually absent up Some of the bodies of legislation explicit derogations. We will not to the 1970’s, then appeared with which refer to the islands do so attempt to give a complete de- the entry of the UK, Denmark and in broadly general terms only, or scription here of the situation, or Greece, and with the birth of a with respect to minor provisions, carry out a detailed critical ex- Community regional policy. The sometimes merely recalling the amination, but simply to under- arrival of Spain and Portugal in statements contained in Articles line, by means of a few examples, the middle of the 1980’s, followed 154 or 158 of the Treaty. Others, the unsuitable, disparate or in- by that of Finland, resulted in a sufficient nature of certain bod- qualitative and quantitative leap ies of legislation. in the 1990’s, with an apogee in 1995 followed by a significant NUMBER OF REFERENCES T O THE W ORDS drop. “ISLAND(S)”, “INSULAR", AND “INSULARITY” IN THE LEGISLA TION PUBLISHED IN THE OJEC 250 The emergence of the concept of ultraperipherality, the adoption of the POSEI’s, followed by the 200 provisions of Article 299.2 adopted in Amsterdam explain 150 why almost 60% of the refer-

ences in secondary legislation 100 concern legislation dealing with the outermost regions. Most of 50 the references arise from the introduction of special arrangements in the field of customs, 0 1995 1997 1999 1979 1981 1983 1985 1987 1989 1991 1993 1971 1973 1975 1977 1959 1961 1963 1965 1967 1969

EU legislation on taxation

s the situation of the is- bility, whether on a permanent gal were to be applied in the Azo- land regions in terms of basis or for a “transitional” res , the price index (base=100 in Aexcise and VAT arises from period, of applying certain Lisbon) would increase from their historical heritage and the reduced rates (e.g. Madeira, the 102.95 to 107.6. Furthermore, the- conditions of their accession to Azores, Corsica and certain Greek se figures, which are average va- the Community, it presents a islands). All the others are subject lues, vary greatly in the different widely varied picture. Some to common law. islands of the archipelago. regions are exempt from EU legislation in terms of indirect Reduced VAT rates in the Azores The application in the islands of taxation (e.g. the French Overseas play a large part in reducing price indirect taxation identical to that Departments, the Canary Islands, differences with the mainland. If on the mainland raises various 80 Åland). Others enjoy the possi- the VAT rates of mainland Portu- problems. The responses of the EU and their limitations

On the one hand, applying impact is particularly perceptible Similarly, given that the identical rates actually accentu- in all transport-related services. distribution networks in the ates inequalities, because While the application of VAT to islands are isolated or frag- consumer prices in the islands shipping and air transport has mented, taxation increases the are very often much higher, little effect on the companies, who price of fuel at the pump, which whether on account of transport can recover it, it directly affects is often very high. costs, the small size of the market, private vehicles and passengers, or limited competition. This who are the end consumers.

State regional aid

ccording to the Second Classification as a “very low vicinity of third countries, Periodic Report on Eco- population density area” grants together with their extreme Anomic and Social Cohe- entitlement to two major remoteness from Europe, raises sion, State aid comes to approxi- derogations. The first consists in specific questions with respect to mately 1.12% of EU GDP, as much higher rates of assistance the problem of granting aid against 0,31% only in 2006 for (or NGE - net grant equivalent - designed to limit additional the Structural Funds. This means rates) in regions governed by transport costs. As an example that the arrangements governing Article 87.3.c of the Treaty, up to in point, WTO rules prohibit the such aid, in particular those 20% or 30% (for SMEs), instead French Antilles from introducing governing State regional aid, are of 10% to 20%. The second a system of aid covering of great importance for the consists in authorizing direct and transport with non-European islands. permanent aid designed to countries in the Caribbean. As partially offset the additional regards trade with the rest of the The specific situation of the costs linked to transport. Union, EU guidelines on State islands is, however, given little regional aid specifies that “op- recognition, because, with the This can be regarded as discrimi- erating aid intended to promote exception of a minor derogation nation against the islands, exports between Member States concerning the zoning of eligible because, in spite of their is ruled out.» (point 4.17, 98/ territories, the guidelines permanent structural con- C74/06). These regions, concerning State regional aid straints, especially their difficul- sometimes located at a distance grants derogations only to the ties in terms of transport, they of several thousand kilometres very low population density are subject to common law. from Europe, where trade relies areas and the outermost regions. on international transport and As regards the outermost trans-Ocean links, cannot In the case of the very low regions , the guidelines justifiably therefore alleviate the additional population density areas , it is recognise their aggravated costs arising from their island to be noted that the Commission constraints and authorise three nature for trade with their acknowledged the existence of a types of specific provision: neighbours, or for trade with permanent structural handicap, other Member States, but only for quantified in terms of a - Higher NGE rates; trade within their national terri- population of less than 12.5 in- tory. habitants/km². This recognition - The possibility of granting is independent of any socio-eco- permanent aid designed to offset - The additional possibility of nomic criterion such as unem- additional transport costs, granting such aid in order to ployment or per-capita GDP. As similar to that allowed for the low offset “the additional costs an example in point, the very low population density areas. arising from the exercise of the population density regions in economic activity inherent to the Northern Sweden have a GDP It must nevertheless be pointed factors identified in Article 299, per head close to the EU average. out that the geographic location paragraph 2, of the Treaty, the of the outermost regions in the permanence and combination of 81 Off the coast of Europe

which severely restrain their only apply in the national dence on a few products. We will development (remoteness, context. However, a number of argue that such a provision could insularity, small size, difficult the islands could usefully equally apply to them, in so far topography and climate, develop trade with the States as the islands suffer from all or economic dependence on a few bordering their maritime space, several of the factors referred to. products).” especially in light of the fact that In this respect, the distinction some of them are closer to their between them and the outermost It is noteworthy that such coasts than to their mainland regions seems to relate, not to operating aids are under no (Corsica with respect to Italy, end purpose, but to intensity. It obligation of degressivity, nor Bornholm with respect to should not be forgotten, howe- under any time limitation. Sweden). One wonders at the ver, that the State regional aid paradoxical nature of this regulations stipulate that “The As regards the islands, other prohibition, which seems to be aid envisaged should be justified than those that belong to the in contradiction with the concept in terms of its contribution to re- outermost regions, the current of a Community space. gional development and its na- system is much more restrictive. ture; its level should be propor- First of all, unlike the low Finally, the islands, unlike the tional to the additional costs population density regions and outermost regions, are prohibi- which it is designed to offset.” the outermost regions, they are ted from granting permanent aid The mere application of this rule at the present time not allowed to offset the additional costs lin- would make it possible to respect receive the direct aid designed to ked to their remoteness, their in- the principle of proportionality, offset additional transport costs. sularity, their small surface area, because the extent of the addi- Furthermore, even if they were their rough terrain or difficult cli- tional costs must be automatical- allowed receive this aid, it would mate or their economic depen- ly demonstrated.

Agricultural and fisheries aid

ommunity aid for fishe- these measures, often tempo- the fact that the islands suffer ries and agriculture, rary, apply only to certain re- from situations which are Cgranted under the terms gions. In most cases, the con- clearly different in terms of of the CFP or the CAP, is sequences of island status are transport costs for production governed by a specific system, not taken into account. or incoming goods, sometimes distinct from the State regional implying a doubling of the aid system. It is, for example, significant costs, the ceiling for this aid re- that, in the aid mechanisms for mains identical. These policies have taken the bovine and caprine meat, EU specific situation of the outer- legislation is currently limited As EU legislation prohibits any most regions and of certain to recognising the existence of “de minimis” aid, or State islands into account on vari- “least-favoured areas”, and regional aid, in the case of the ous occasions. Aid mecha- makes no distinction between products referred to in Annex I nisms or structural islands and mainland. Despite derogations have been granted to the outermost regions, or to COST OF AGRICUL TURAL FEED the minor islands of the There are significant costs involved in transporting goods by ferries to and from the Aegean under the terms of the Western Isles and for example the cost of buying imported livestockN feed for agriculture is significantly higher (cover 100%) in the Western IslesR than the Scottish average for POSEIs. these goods (see table below). TE Cost of Agricultural Feed However, it cannot be claimed S Product Local CostE - Stornoway Local Cost -S Uist Scottish Average that these policies have truly Hay W£169 per Tonne £170E per Tonne £71 per Tonne taken the island dimension Barley for Feed £146 per TonneL £160 per Tonne £78 per Tonne Beet Pulp £145 per TonneS £160 per Tonne £70 per Tonne 82 into consideration because I (Source : Comhairle nan Eilean Siar and Scottish Farmer 1999) The responses of the EU and their limitations of the CET, it is impossible to EUROPEAN UNION PR OHIBITIONS ARE LINKED T O offer additional aid. THE PROBLEMS OF A GRICULTURE In the light of the difficulties currently faced by air transport of goods exported fromS or im- It is similarly extremely diffi- the primary sector in the Balearic Islands, the ported into the Balearic Islands. state and regional governments have granted The draft version of the above-mentionedR Royal cult to grant operating aid in various subsidies to help this sector survive. Decree included subsidies for the transport of the islands to small transfor- However, because of differences in the way the cattle feed. However,A following the European mation or marketing structures problems of insularity are dealt with under the Commission’s recommendations,E subsidies for Spanish legal system and under EU regulations, agriculturalL produce and semi-processed food dealing with certain types of these grants are severely limited. As a result, products had to be cancelled, because they are products (slaughterhouses, agriculture and cattle-raising in the Balearic bannedA under Common Agriculture Policy regu- dairies, etc.), despite the fact Islands are seriously affected. Blations. Consequently, grants for the primary The specificity of the island factor is recognised sector were removed from the text of the Royal that they play a vital role in in the Spanish Constitution, under Article 138.1. Decree. maintaining both agricultural This was the basis for the adoptionS in 1998 of The absence of subsidies is therefore the re- activities and quality of life. the Law establishing the SpecialE Regime of the sult of the fact that the Common Agriculture Balearic Islands, whichL includes provisions for Policy is not adapted to the specific needs of Their closure, and the absence economic measuresL to compensate for insu- the islands, although this is required under the of an alternative solution in the larity. The RoyalI Decree No. 1034/1999 devel- Joint Declaration nº30 annexed to the Amster- ops this Law, establishing subsidies for sea and dam Treaty. smallest islands, forces farmers to export unprocessed are driven out of business. It is replaced by goods produced production to the mainland, not rare for small-scale local on a large scale by the food thereby exposing them to produce, which not only industry on the mainland, even much higher transport costs. provided jobs, but also allied on the shop shelves in the In extreme cases, companies freshness and quality, to be islands themselves.

Liberalising transport

he policy of liberalising The first is that the guidelines cal operator out of business, air and sea transport im- drawn up by the Commission leading to the loss of numerous Tplemented by the Com- for the tender procedures insist local jobs and the ensuing dis- munity during the course of the on the need to grant the con- appearance of specialised 1990’s is clearly crucial for the tract to the company making know-how and personnel. island regions, owing to their the lowest bid. This ignores the Some time later, the successful dependence on these modes of fact that its success can have carrier, faced with external dif- transport. negative implications if account ficulties, itself goes out of busi- is not taken of other param- ness. The island region is then Legislation concerning the lib- eters, such as the risk of clo- left with no local carrier capa- eralisation of air and sea links sure of regional companies not ble of taking over the service. explicitly recognise the specific big enough to realise economies A new tender procedure, apart situation of the islands, nota- of scale and win the contract, from the delay it implies, then bly by authorising public serv- leading to a risk of losing local takes place in a much less fa- ice obligations. With various jobs, with the ensuing social vourable position than before. nuances on which we will not costs: risk of unreliable service, expound, the procedure if the carrier goes out of busi- A second difficulty, proper to adopted consists in imposing ness, etc. the maritime sector, arises from public service obligations, and, the restrictive nature of public where necessary, opening up a One can imagine a scenario service contracts, limited to a tender procedure at European whereby a shipping company maximum of 5 years. This is level. or airline from outside the re- too short a timescale for ship- gion, and with interests in other ping companies, forced to in- In practice, the application of domains, might win a tender vest in ships adapted to the these rules to island transport procedure thanks to a particu- characteristics of the service, to comes up against a number of larly competitive pricing policy. recoup their investment. difficulties. Its selection would drive the lo- 83 Off the coast of Europe

Finally, the guidelines require PROBLEMS POSED B Y THE TENDER PR OCEDURES that public service subsidies be FOR PUBLIC AIR SER VICES F OR AN ISLAND: THE EXAMPLE OF COR SICA. calculated for each service, so According to European legislation, a Member Liberté to form Air Lib, the group ceased as to avoid the situation State can subject an air service to public serv- serving Figari and asked the CCM to provide ice obligations and can, if necessary, offer the the service. The CCM, feeling that it had been whereby profitable services re- carrier(s) that agree(s) to provide this service unfairly supplanted, and having redeployed ceive public aid. This require- financial compensation. No public service its fleet on other routes (following an alliance ment seems ill suited to the is- obligation may generate a distortion in the and a code-share with Air France on other competition between carriers, and public serv- services), refused to comply. land regions (particularly the ice franchises should be granted in a trans- Air Littoral is now the only airline to serve archipelagos) where the same parent manner and subject to competition at Figari, sharing the Shore to Shore services for European level Bastia and Ajaccio with the CCM. The result carrier serves a whole range of With 4 island airports (Ajaccio, Bastia, Calvi, of this is to severely restrict competition. routes. The advantages of lib- Figari) and 5 selected cities on the mainland The case of Corsica is a good illustration of eralising the most profitable (Paris, Nice, Marseilles, Lyons and the inadequacies of the public service obliga- Montpellier), public service obligations with tions procedure for an island. The constraints lines should be counterbal- regard to Corsica in 1999 were broken down imposed by European legislation are ill-suited anced by taking account of into two installments. The services with Paris for island situations where the routes are not those procured by the presence first of all, followed by Shore to Shore services of sufficient interest for the air carrier mar- with Nice, Marseilles, Lyons and Montpellier. ket. Although these services are expensive, of an operator responsible for The services were subject to a route-by-route they are the ones most in need of a public the whole network: flexibility in invitation to tender. service owing to the lack of an alternative. The Paris service Ironically,E the bids for half the routes of the the use of the fleet and the crew, For Ajaccio and Bastia and Calvi, only Air first public service obligations received a sin- ability to rapidly respond to France responded to the invitation to tender. gle application each, which leads to a de facto technical incidents or unfore- The Collectivité Territoriale of Corsica consid- totalS lack of competition. ered that the compensation sought was too A number of questions to be raised in the in- seen traffic peaks, etc. high and asked that the sums be lowered. Air terest of the islanders: France agreed to this and has been running RIn the case of a current public service obliga- While not denying the benefits the service since then, subcontracting part of tion. the traffic to the Compagnie Corse 1/ What happens if no company, or only one for the islands of the policy of Méditerranée (CCM), a company set up Oin company, makes a bid? The probability of liberalising shipping and air Corsica. this occurring is highest for the least profit- transport, it is obvious that is- For Figari, only Air Liberté, a subsidiary of able island services. Where is the advantage Swissair, submitted a bid. At present,C these in terms of competition? land services require tender two sole candidates share 13.1 million euro 2/ What happens if the successful tenderer procedures or conditions bet- per annum between them. It is debatable, abandons the service or goes out of business? therefore, that competition has really made What penalties can be imposed on subsidi- ter suited to their realties. its entrance onto the routes with Paris. aries of Swissair in liquidation? How is it The Shore to Shore services possible to ask a regional company, weak- Several airlines applied, the cheapest being ened by the dumping of competitors since three subsidiaries of the Swissair group, Air gone out of business, to reposition itself? Littoral, Air Liberté and AOM. The CCM ac- Answers to these questions are currently in cused these airlines of submitting under-val- short supply, which shows the extent to which ued bids. Faced with risks of industrial dis- European legislation, with all its constraints, pute and real doubts as to the health of the is ill-suited to solving the concrete problems three Swissair subsidiaries, the CTC cancelled it generates. the invitation to tender procedure and changed The sole criterion of the “lowest bidder” is to a system of passenger-based subsidies not sufficient in the case of island services, known as “social” fares for residents. The and the public air service would be better three airlines and the CCM de facto shared guaranteed if the concepts of continuity, per- the services and the compensation between manence (financial survival) and regularity them. (maintenance) were also adopted as selec- In October 2001, following Swissair’s tion criteria. problems, and the merger of AOM and Air

84 The responses of the EU and their limitations

The impact of the regional policy

hen the island di- this corresponds to 89% of THE ISLE OF WIGHT A NON- mension is raised the total population of the ELIGIBLE ISLAND Wwith EU authorities, island regions. Furthermore, A noteworthy example of the inflexibility of the a frequent response is that the islands belonging to States regulatory framework governing the Structu-T islands already receive ad- eligible for the Cohesion Fund ral Funds concerns the Isle of Wight, which does not qualify either for ObjectiveH 1, or for equate treatment because benefit from the latter fund. Objective 2, despite the fact that its per-capita they have benefited a lot from GDP corresponds to 73% of theG EU average. In spite of the request by the British Govern- the Structural Funds. While However, far from reflecting ment, the European CommissionI has refused this is undeniable, does it special treatment, this situ- to allow the Isle of Wight constitute a distinct constitute special treatment? ation corresponds to common NUTSII Statistical TerritorialW Unit, and has granted NUTSIII classification only. The result of Have these measures been law. this is that the island is statistically amalga- sufficient to fundamentally mated with the wealthyF mainland region of change the situation of these Hampshire, whose GDP per head is much hi- As can be seen in the Regu- gher. Since the regulations covering the Struc- regions with respect to the O lations laying down general tural Funds require that NUTSII level serve as rest of the Community? provisions on the Structural a basis for selecting Objective 1 regions, the Isle of Wight hasE been attributed a GDP per Funds (1260/1999), there are head much higher than the 75% threshold, with Of the 21 island regional au- no specific measures to de- the result thatL it has been deprived of any chan- thorities in the EU at present: fine the eligibility of the is- ce of being eligible for this Objective. Further- more, as theS Isle of Wight is neither a fully ru- lands. Their eligibility for ral area,I nor an area undergoing economic and - 12 currently belong to the Objective 1, for example, is social conversion, nor an area dependent on “Objective 1” zone. These are based solely on the criterion fisheries, it is not eligible for Objective 2 either. Sardinia, Sicily, Crete, the of a GDP per head lower than The only specific measure islands of the North and 75% of the EU average. This allowed by the Regulation South Aegean, the Ionian Is- rule applies to the islands in adopted in 1999 is that which lands, Canary Islands, Ma- the same way as to any other authorises higher ceilings for deira, the Azores, Martinique, region … although an excep- contributions from the Funds, Reunion, and Guadeloupe; tion is made for former Ob- but only “for the outermost jective 6 regions which are regions and for the outlying - 4 are (since the 1999 reform) now included in Objective 1. Greek islands which are un- in “phasing out”: Corsica and The situation of the islands der a handicap due to their the Highlands & Islands which therefore falls way behind the distant location”. Finally, includes Western Isles, the situation of the very low references to the situation of Orkneys and Shetland; population density regions in the islands and of the outer- the North of Sweden and Fin- most regions appear in the - 4 are wholly or partially in land, the per-capita GDP of texts in relation to the Com- Objective 2: Bornholm, some of which is close to the munity Initiatives in the Gotland, Åland, and the Bal- EU average. framework of INTERREG III. earic Islands; As regards Objective 2, the While it is true that the is- - One, the Isle of Wight, is legislative situation has even lands benefit massively from in no category. weakened somewhat with the Structural Funds, the ex- respect to the previous sys- tent to which the island di- This means that 99% of the tem, with the removal of the mension is recognised re- island population of the EU explicit reference to island mains very limited. In light is covered by Objectives 1 and status contained in the rules of the fact that, with some 2 together. Objective 1 con- governing eligibility for the variations, the island regions cerns 57% of the regional former Objective 5b (least have benefited from similar authorities, but, as these is- favoured rural areas) up to arrangements on the part of 85 lands have a large population, 1999. the Structural Funds since the Off the coast of Europe

HAVE THE ISLANDS BENEFITED FR OM THE COHESION POLICY IMPLEMENTED B Y THE COMMUNITY? There are several levels of response to this question. grow at a faster rate than their respective Member Objective 1 cannot but aggravate the adverse trends However, by sticking strictly to the Commission’s State, but this growth remains slower than that of the which have marked recent years. analysis, we can look at the problem in terms of GDP average of those Member States which have islands The figures show that the Greek islands, which and the amount of the Structural Funds. An analy- (+11.5% as against +14.6%). In addition, they still started from a very low level, have so far made faster sis of the last 10 years, during which period the lag far behind the EU average. As things stand at progress in catching up. This is especially true for amount of the Structural Funds grew substantially present, and based on the mechanical trends of the those islands with a strong tourism potential, such to reach 0.46% of the EU budget in 1999, shows that last 10 years, it would be a conceivable objective for as the major islands of the South Aegean (Rhodes, the backlogs are still significant. them to close this gap… in 60 years time2 . This Kos, etc.) and for Crete (which has already moved The “Second Report on Economic and Social cohe- analysis does not, moreover, take account of the ef- ahead of mainland Greece). On the other hand, the sion (2001)” claims that: fects of enlargement situation is not so rosy for the Ionian Islands and is “ … there was significant convergence (between the Although substantial, the financial effort granted in even a cause for concern for the North Aegean is- regions) over the period 1988 to 1998 … In the favour of the outermost regions by all the Structural lands. For their part, Sardinia, Gotland, Bornholm bottom 10% of regions, GDP per head rose from Funds, should, therefore, not only be maintained, but or the three Scottish archipelagos have, to various 55% of the EU average to 60%, though in the bot- also further increased via a series of specific and extents enjoyed favourable development, albeit, in tom 25%, it only rose from 66% of average to 68%. coherent measures. It is also essential to adapt cur- all cases, less than that of their Central State. (These increases are not as dramatic as reported in rent regulations in favour of the outermost regions, Finally, it should be pointed out that, in the case of the 6th Periodic Report, where the top and bottom because even the arrangements applicable to the four island regions, trends have been negative over regions were defined merely in terms of numbers of most heavily subsidised regions are not sufficient to the last 10 years. The regions of Sicily (-4,6%), regions instead of the population they cover).” catch up the backlog and overcome the constraints Corsica (-2,6%), Åland (-14%) and the Isle of Wight What the Commission is explaining is that it of their environment. (-1,3%) have all experienced decline. These repre- changed presentation method between the two The other island regions sent one Objective 1 situation, one “phasing out” documents referred to. What is the situation for the As regards those island regions which are not outer- situation, one Objective 2 situation, and one situa- island regions according to both methods? Evolution of average GDP/head (PPS) In the context of enlargement, the arrival of a (base EU=100) number of Central or Eastern European countries 100 whose GDPs are well below the EU average will raise the problem of a redistribution of these Funds. At 95 States with Island Regions 94 94 least three quarters of the regions currently benefit- 90 91 ing from Objective 1 will no longer be eligible once 90 89 88 89 enlargement is completed1 , while a development of 85 87 the same type will probably affect the Objective 2 80 82 82 regions. The islands will not be spared by this proc- 81 78 78 ess. The situation is different if one considers the 75 77 78 78 76 74 75 74 74 islands in terms of their geographic and institutional 70 74 situation. Non ultraperipheral Island Regions The Outermost Regions 65 The situation of the outermost regions is explicitly 60 recognised by the Amsterdam Treaty. The four Ultraperipheral Island Regions 58 French Overseas Departments (Guadeloupe, 55 57 Martinique, Guyane and Reunion), the Spanish 54 55 50 53 53 Canary Islands and the Portuguese islands of the 52 51 51 50 50 Azores and Madeira lie at a great distance from the 45 European continent, a fact which complicates their 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 Source : PIB EUROSTAT (estimation when data is not available ta Nuts2 level as in 1997) integration in the single European market. They generate a GDP which is much lower than the EU most regions, it would take them 33 years to catch up tion where a NUTS III level region has been denied average (58%), suffer from high unemployment, mechanically on the EU average. Here again, such classification. It appears difficult to find common and have an economy which is dependent on a lim- an evaluation (which is only an average based on explanations for the evolution of the most populated ited number of sectors. Finally, they are subject to disparate realities) is not very meaningful, but it pro- island regions of the Community, and of one of its very stiff competition, in terms of labour costs, from vides a clear illustration, drawing on the tools used most sparsely populated and most fragmented neighbouring countries. by the Commission itself (per capita PPS GDP), of the archipelagos ... except for the fact that the tool Owing to their considerable backlog, they tend to extent to which excluding the island regions from seems to be somewhat ineffective3 . With respect to the other regions of the European Evolution of average GDP/head (PPS). Index weighted by population. Union, the 21 Island regions are not, in terms of GDP, (base EU=100) systematically the poorest. Having said that, how- 100 ever, about half (10), mostly amongst those with the

95 highest populations, have a level of less than 75% 97 97 97 97 96 95 95 96 96 95 96 of the EU average, while 11 others have a equal or States with Island Regions 90 higher level. Three island regions only have a GDP/h equal or above the 100% EU average. Furthermore, 85 a distinction should be made between the outermost

80 regions, which have an average GDP equal to 58% of the EU average, and the others the nature and 75 75 74 75 72 extent of whose problems are different. 71 70 69 69 70 70 Convergence within the Member States, as meas- 70 70 Non ultraperipheral Island Regions ured by per-capita GDP, is a reality which has mean-

65 ing on the national level. At this level, discrepancies are of the order of 1 to 2. At NUTS II level, dispari- 60 63 ties are of the order of 1 to 6 and at NUTS III level, 1 61 59 60 to 12. This simple observation shows to what ex- 55 59 59 57 58 57 tent the GDP per head tool is of limited use for zon- 55 Ultraperipheral Island Regions 54 50 ing levels with less than 100,000 inhabitants and 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 illustrates that it is ridiculous to base a policy exclu- Source : PIB EUROSTAT (estimation when data is not available ta Nuts2 level as in 1997) sively on this indicator.

1 CRPM “The Future Policies of the European Union: From a Catch-Up Strategy to a Balanced Europe”1997 http://www.crpm.org 2 A strict prolongation of the 1988/1998 trend curve has no great meaning on the economic plane, given the structural effects of GDP trends. Having said that, however, it gives a general idea 86 of the caricatural nature of a policy based on the GDP threshold. 3 EURISLES, Calculating Island GBP: http://www.eurisles.org/ftp/public/eurisles/dossier/PIB_en.pdf The responses of the EU and their limitations end of the 1980’s, can it be Seen in the light of introduced to the most iso- said that their situation with infrastructural backlog, the lated communities. However, respect to the rest of the Com- answer is clearly in the af- the impact of the Funds on munity has substantially im- firmative. Roads, ports, and the absorption of economic proved during the course of airports in the islands have and social backlog seems to this period? been developed or modern- have been much more limited. ised, and essential services such as water or electricity

What conclusions can we draw from this observation?

irstly, it is difficult to SPATIAL DE VELOPMENT AND THE EUR OPEAN reduce the success or SPATIAL DE VELOPMENT PER SPECTIVE failure of the economic Thinking on the future of the European terri- creasingly evident. In their spatially relevant F tory has been evolving rapidly since the be- planning, local and regional government and and social development of the ginning of the 1990’s. The majority of the administrative agencies should, therefore, island regions to the role of population of the Union lives in the towns and overcome any insular way of looking at the Structural Funds alone. cities, especially in the major urban centres, their territory and take into consideration while almost 80% of its surface area belongs European aspects and inter-dependencies These constitute no more than to the rural world. It is therefore necessary right from the outset .” a supplement to national to rethink its development as a function of This somewhat pejorative vision of the islands funding mechanisms, the the respective evolutions of these territories, would not matter if it were accompanied by a and of their needs in terms of development. vision of spatial development which fully ac- amounts of which are propor- Does it include the island dimension? knowledges that the islands are fully-fledged tionately much greater. To The European Spatial Development Perspec- territories, justifying different treatment. tive (ESDP) adopted in Postdam makes sparse However, if the ESDP seems to be favourably assess the situation of each reference to these regions. It refers twice to disposed to the idea of revising the concepts region, it is necessary to pro- their specific characteristics with respect to of the Centre and of the Periphery, and to pro- ceed on a case-by-case basis transport and stresses the need to preserve moting a meshed polycentrism for the Euro- their ecological potential and their bio-diver- pean territory where major transport or tel- and measure how public ex- sity. ecommunication networks favour exchanges penditure funded by the State As an illustration of the progress which re- between urban systems, this vision largely or by local government has mains to be made in the Brussels milieus to ignores the island or outermost regions, which understand the island phenomenon, the only are often shown as large blank spaces on the evolved over the period. Did time the islands are referred to in the conclu- maps (when they are represented). the Community effort actually sions of the document is as follows (p 48): Apart from the theoretical debate, it has been “4.5 The application of the ESDP in the Mem- noted that, in practice, a similar discretion strengthen the national effort, ber States pertains in the list of priority projects for the or did it merely replace it? It is proposed that Member States also take Trans-European Network. While Shetland into consideration the European dimension of and the Greek Islands are included in the list spatial development in adjusting national spa- of TEN-Energy priority projects, no island Secondly, a more general re- tial development policies, plans and reports. appears in the TEN-Transport list. flection, and one more specific Here, the requirement for a “Europeanisation to the Community framework, of state, regional, and urban planning” is in- concerns the concepts of “structural adjustment” or straints of a permanent na- land suffering from the decline “economic and social” conver- ture? Can one really expect or disappearance of its tradi- sion, which underpin the re- an island economy to catch up tional activities? gional policy. Are these con- in socio-economic terms in the cepts pertinent for regions same way as a mining or in- confronted with natural con- dustrial region on the main-

87 Off the coast of Europe

88 PROSPECTS for development

«This island is made mainly of coal and surrounded by fish. Only an organizing genius could produce a shortage of coal and fish at the same time.» Aneurin BEVAN (1945)

hile it is true that the islands suffer from permanent constraints, this is not to say that they are bereft of economic opportunities. Some of these opportunities arise from the exploitation Wof their geographic positioning, while others are related to the natural or human resources intrinsic to them. However, be it tourism, transport, the fishing industry or renewable energies, there is a need for an appropriate framework for these assets to be exploited in a sustainable way. This generally requires proactive policies, and suitable means of control and management.

The future of transport

he situation of the sure that the archipelago re- ties, drawing on this natural islands with respect to mains attractive for shipping advantage, are looking into the Tthe maritime frontiers of companies that stop over there possibility of developing port the EU (both internal and and provide numerous local activities by making the archi- external) can sometimes be an jobs. Åland’s population is pelago a “hub” for Megaship asset in terms of transport. currently growing, unlike the traffic (super container ships While some island regions are other islands of the Baltic of over 10,000 TEU, or even severely isolated, at the whose population is declining 15 to 18,000 TEU) between confines of the European or at best stable like Gotland. Europe and Halifax. Tran- continent or in the middle of shipped in Scapa Flow, the the Ocean, others adjoin In a number of island regions, containers would be routed via several States, are located at the introduction of direct ship- Feederships to the Northern the mouth of a closed sea ping links with the rest of the European ports, saving costly (Baltic, Adriatic), or are Community or with third dredging and infrastructure located close to a major countries is seen as a poten- costs. According to shipping route. tially important development simulations, this could allow factor: in Crete with respect for the creation, over ten years, Åland drew on its central po- to the eastern Mediterranean, of between 600 and 2,100 jobs sition in the Baltic between in the Estonian islands with in this archipelago of 20,000 Sweden and the Finland to respect to the Baltic, etc. inhabitants. develop an economy based on shipping and ancillary serv- In the Orkneys, for example, Paradoxically, distance from ices (40% of regional GDP), the port of Scapa Flow (an- the busiest sea or air routes and on tourism. The special chorage for the British fleet can sometimes be an asset. It taxation arrangements enjoyed during both World Wars, and is this very factor that justi- by this region (where EU pro- currently host to an oil termi- fies the presence of a defence visions on excise and VAT do nal) can take very high draft industry testing and evalua- not apply) have helped to en- ships. The regional authori- tion centre in the Uist archi- 89 Off the coast of Europe

pelago in the Western Isles, Almost 25 million GBP have Fighter. Directly or indirectly, where a firing range extending recently been invested in the a very high percentage of local out to 250 km from the coast radar and telemetric jobs in this group of islands is used to test missiles, far installations of this firing (up to 40% at peak periods) from electronic interferences range which will be used to depend on these activities. and with maximum safety. test the equipment for the Euro

Tourism, a necessary, albeit destructive, evil

ourism, the dominant all the players, can erase these residents, are liable to create activity in most Euro- damaging effects of tourism cultural tensions. Not to men- Tpean islands, in terms and satisfy the need of the tion the fact that that, by of both its direct and indirect islands for sustainable devel- modelling spaces, tourism effects (building, commerce), opment. accelerates or changes the has the potential for greater direction of migratory move- development in a number of Does tourism have ments. these islands. However, be- disruptive effects on the cause it mobilises a large economic and social fabric? Apart from the construction of number of players, because it tourist facilities and height- brings important interests into A sudden and rapid expansion ened urbanisation, the mas- play and because it exploits in the demand for leisure has sive influx of outside resources which are some- generated multiple effects, populations also imposes times fragile, tourism needs TOURIST NUMBERS

ILLES CORSE MARTINIQUE NOTIO AIGAIO GOTLAND ISLE OF WIGHT BALEARS

Total population 821 820 260 196 381 427 271 355 57 313 128 231 Number of tourists 10 800 300 2 300 000 607 303 - 564 000 2 652 000 Number of tourists staying in hotel accommodation 6 979 672 917 000 545 400 5 634 934 123 472 1 542 000 Nights spent by tourists in accommodation 53 422 303 10 836 000 2 625 000 41 952 525 317 298 1 000 000 Share of nights spent by foreigners % 88 40 20 87 8 - Pressure from tourism (Number of tourists by inhabitant) 13.0 7.0 1.6 20.8* 9.8 20.7

Source: Eurisles * Calculated on the basis of the number of tourists in the hotels changes in the field of transport networks, telecommuni- appropriate policies on small accentuated by the fact that cations, drinking water distri- island territories. they are brought to bear on fragile island societies, which TOURISM, THE O THER SIDE OF THE COIN On the socio-economic and are undergoing many changes Almost 500,000 tourists visit Bornholm each year. During the summer season, especially between June ecological level, tourism has or where the development and August, it is almost impossible for local resi- disruptive effects which should process is not completed. One dents to travel to and from the island becauseM ferry not be neglected, such as high cannot ignore the impact of and air services are fully booked. In addition, the ferry prices (for passengerL and car degree of seasonality, impact tourism on the resident transport) are almost 20% higher during the sum- on already fragile environmen- populations, the appearance mer, without any compensationO for the islanders. tal, cultural or social balances, The structure of tourism and the relatively short of modifications in social season does of course meanH good incomes for those over-dependence by local structures and the emergence working in the tourism industry and related sec- economies on a single activ- of adverse mercantile and tors. However it also hasN disadvantages which affect the daily life of other islanders, including higher ity, etc. Only a policy that moral perversions. Demo- prices, parking problems,R lack of proper goods and regards the environment as a graphic imbalances, such as other commodities, long queues in shops and res- “resource” to be protected and an influx of outside manpower taurants, hospitalsO etc., and, last but not least, the deterioration of our natural resources and to some valued, adapted to local con- or a disproportionate number extent the Btourist hotels and tourist sites that stand 90 ditions and taking account of of tourists in relation to the empty, like ghost towns, for the other eight months of the year. Prospects for development

PROBLEM OF A QUACULTURE AND T OURISM EXISTING SIDE B Y SIDE these regions are highly at- It is widely acknowledged that the sea represents seem very promising are inevitably abandoned due tractive on account of their one of the few natural assets with which Gozo is to very significant debates between environmen- identity, their environment, or endowed. The quality of the sea surrounding Malta talists and tourism industry proponents on one hand their climate, they are also and Gozo is marketed extensively in the context and the acquaculture industry entrepreneurs on of the islands’ attempts to attract a higher number the other. To illustrate, one needs to mention the disadvantaged in other fields, of tourists. But again, the limited length of shore- proposal for a fish hatchery farm in a bay on the especially transport. line is seriously restricting the potential for fur- North EastO part of the island, which had to be aban- ther economic growth on the island of Gozo. And doned in the face of very heavy opposition by lo- conflict on the most proper and suitable usage of Zcals and tourism industry operators. The latter group Moreover, destinations which limited shoreline space between competing claims argued that the attractiveness of a attractive bay constitute tourist markets of tends to penalise both the tourism industry andO the was to be eroded if the development proposals went potential for the development of acquaculture. under way. Similarly, a proposal for a tuna pen- a certain size can command People on the island of Gozo seemG to appreciate ning facility off the Southern part of the island had extremely competitive trans- that acquaculture should be an industry which is to be abandoned in face of vociferous protests by port and accommodation more extensively exploited. Consultants have re- the local environmental lobby groups which claimed peatedly harped on examples of islands with thriving that the proposed project would disrupt a unique prices (charter flights, “pack- acquaculture and fishing industries (for example but fragile ecosystem feeding off the Ta’Cenc cliffs ages” etc.). With some nota- Shetland Islands). However, plans which on paper in Gozo. ble exceptions such as the Balearic Islands, the Canary bution or waste disposal net- imports to satisfy tourists’ Islands or certain Greek is- works. needs, are also put forward by lands, the island regions are critics of tourism. not necessarily big enough to The frequently chaotic occu- be able to offer the most com- pancy pattern (often concen- Developing Tourism petitive prices on the market. trated on coastal zones which This phenomenon is set to are therefore disfigured) and Whatever the reservations that accentuate with the growth of the uncontrolled exploitation can be expressed, tourism still the tourism industry in those of resources can generate nui- seems to have a high poten- developing countries which sances at both the ecological tial for expansion. But is there also enjoy sunny climates, and economic and social lev- a limit? While tourist volumes where wage costs are much els. It is this type of excess seem set to rocket over the lower. which is meant by the pejo- next twenty years (interna- rative term “balearisation”. tional tourism in Europe is set Furthermore, the most prom- Inappropriate or aggressive to triple by 2020), the islands ising sector of European tour- developments, marine and are not necessarily the best ism no longer seems to be land-based degradations and placed to benefit from this long-term family stays re- pollution and irresponsible growth. While it is true that served long in advance, but behaviour, the increase in

Part des résidences secondaires dans l'ensemble du parc des logements SECONDARY RESIDENCES% AS PER CENTAGE OF T OTAL HOUSING

NOTIO AIGAIO

VORIO AIGAIO

CORSE

SARDEGNA

GOTLAND Secondary houses represent up to one ILLES BALEARS third of total housings. They are often the property of foreign tourists or of BORNHOLM nationals from the mainland. In the Aegean sea, in Corsica or in Gotland, ACORES they correspond to a seasonal family

GUADELOUPE tourism of people, which do not go to hotels. These number of these houses SAAREMAA also depends of the distance to the ma inland. On som e isla nds of the MARTINIQUE Aegean sea, easily accessible from Athens, they reflect the importance of ISLE OF WIGHT week-enders. © Eurisles 91 HIIUMAA

0 5 10 15 20 25 30 35 40 45 % Off the coast of Europe

short-term holidays, decided THE TOURISM IN THE GREEK ISLANDS on the spur of the moment and Tourism is highly concentrated in the Greek is- varies enormously; for example the ratio of organised with flexibility. The lands, and notably in the four completely insular numbers of beds in these two categories is 7/1 in average length of stay in the regions (the South Aegean, Crete, the Ionian Rhodes and 1/2 in Paros. Large hotels and top Islands and the North Aegean). In terms of sup- category hotels (4 and 5 star hotels) are also establishments is currently 3 ply, towards the end of the 1990s, the 15% of concentrated in certain islands such as Crete, to 4 days. At the same time, national territory represented by these four re- Rhodes, Kos and Corfu. O the combination of smaller gions accounted for approximately 57.5% of The indicators of the pressure of tourism (number hotel beds, that is to say 353,600 out of a total of of tourist beds per inhabitantI and number of beds family sizes and population 613,600. This is spectacular growth, as a per km2) give a different view: the pressure is ageing gives grounds for be- comparison with the corresponding figures for greater in the smallA islands and the sparsely 1973 and 1983 shows – respectively 33.5% and populated islands (such as Ios, Sifnos, Patmos lieving that this is a long-term 44.9%. The level of concentration is even higher and Tilos) than in islands such as Rhodes and trend. In this context, ap- if we look at additional tourist accommodation Crete. G proach costs will play an im- («bed and breakfast» type). In this category, Lastly, Ithe islands – and more particularly those more than 65% of the national total is to be found nearest to Athens – have over recent years expe- portant role in determining in these four regions, that is to say approximately rienced a strong burst of growth in the construc- whether the offer is attractive, 293,000 beds out of 450,000. Camping is not Ation of second homes. Improvements in the because accommodation will highly significant in Greece – representing only frequency of services and the speed of boats has 10% of total tourist accommodation capacity – contributed greatly to this. make up a proportionally and camp sites in the island regions represent As far as tourism demand is concerned, a certain lower share of the total sell- only 20% of this total. O number of characteristics must be noted: Tourist accommodation capacity isI also very - the only figures available are those relating to ing price. Those islands which unevenly distributed, both between the island hotels, labour under high fares, es- regions and between the differentR islands of a - arrivals and tourist bed-nights are heavily pecially airfares, will obvi- single region. Crete; Rhodes and Kos in the concentrated, Dodecanese; Santorini, Paros and Mykonos in - in the islands most popular with tourists, the ously not be the best placed the Cyclades; Corfu andO Zante in the Ionian Is- number of foreign visitors is higher than the to capture this type of mar- lands; and Samos in the North Aegean are among number of domestic tourists, ket. the islands that have large numbers of tourist - in the islands that depend most on organised beds. V holidays and charter flights (Rhodes, Kos, Samos, Other differences exist between the islands, and Lesbos, Corfu) the average length of time spent by A reduction in transport costs this underlines the diversity of tourism develop- foreign tourists on the island is between 9 and 10 ment and its impact. The ratio between hotels days. In the other islands, such as the Cyclades, is therefore one of the key el- and “bed and breakfast” type accommodation this is much shorter. ements in the ability of the islands to benefit from the Over the medium to long term, regions. If such services are evolution in tourist markets. the ageing of European paid for mainly out of the populations will lead to a sig- budget of the regional and Another aspect of tourism is nificant increase in the number local authorities, there is a risk the controversial one of sec- of retired persons for whom of collective impoverishment. ondary residences. On the one the islands, especially the This is especially so in those hand, the acquisition of real most sunny islands, can be islands which suffer significant estate by wealthy outsiders attractive destinations. This population ageing, and which can, if it reaches a certain is certainly a development already have problems in level, generate or aggravate a potential in so far as this type meeting the sanitary and so- housing crisis to the detriment of population requires a whole cial needs of their citizens. of the local population, or range of services (health, lei- generate local inflation. On sure, various home help and Finally, two questions remain. the other hand, secondary other services, etc.). However, The increasing imbalance be- residences are a source of while a glance at demographic tween active and inactive employment and income for statistics will allow us assess population which will affect the building, commercial or the quantitative importance of Europe during the first part of services sectors, and can even this market, what about its the 21st century will result in dynamise certain communi- profitability? a sharp drop in pensions. Will ties. There is no simple and future retirees be able to af- uniform answer to the ques- If the services required by ford homes in islands where tion of the “point of equilib- retirees and senior citizens are they will, furthermore, labour rium”, above which the pres- financed by the State, national under higher consumer prices? ence of secondary residences social welfare bodies, or by Furthermore, is the setting up ceases to be an asset and be- private funds, there is real of a large community of comes a problem. potential for transfer of re- retirees in a closed environ- sources and activities and this ment such as an island, with 92 can benefit a number of island the imbalances that that im- Prospects for development plies, desirable to promote the DEMOGRAPHIC CHANGE AND GR OWTH IN T OURISM L'évolution démographique et l'essor touristique necessary dynamism and IN THE SOUTH AEGEAN spirit of enterprise, and to dans les Iles Sud Egée Tilos Tilos make it an attractive place for Delos Delos its own youth? Pserimos Pserimos Evolution 1951/1991 Nisyros Nisyros Towards sustainable Donoussa Evolution 1981/1991 Donoussa development Sikinos Sikinos Thirasia Number of hotel beds / 10 km² Thirasia Kimolos What, therefore, is the futureKimolos Megisti for island tourism. OperatingMegisti Chalki in an international context,Chalki Anafi Anafi this promising sector must Schinoussa Schinoussa also take local specificities on Arki Of the 42 small islands in the South Arki board. To be accepted by eve- Agathonissi Aegean archipelago, only ten recor- Agathonissi ded positive change from 1951 to ryone in the island, it is es- Kea Kea 1991. Over twenty recorded such Symi sential that a developmentSymi growth in the last decade. Serifos A parallel with the density of hotel policy reconcile the divergentSerifos Astypalaia beds points to a correlation between interests of the multiple play-Astypalaia the positive growth in these islands Andros ers and decision-makers, andAndros and the presence of large numbers Iraklia weigh the disadvantages andIraklia of tourists. Moreover, those islands Telendos Telendos with the highest numbers of beds advantages of tourism to en- Kythnos such as Mykonos, Rhodes or Kos Kythnos sure maximum cohesion. Folegandros never experienced a demographic Folegandros decline. Some of them, such as San- Amorgos Amorgos torini (Thira), whose population was Lipsi The idea of maintaining anLipsi stagnating, saw a return to satisfac- Sifnos tory growth between 1981 and 1991. acceptable level of visitors, ofSifnos Karpathos Yet others, such as Kéa, and Megis- promoting local products, Karpathosof ti, which were suffering from a clear Tinos training qualified personnelTinos demographic decline, have returned Kasos to positive growth. locally and of encouraging is-Kasos Milos Milos land investors are highlighted Naxos Naxos to better integrate tourism in Syros Syros the regional economy. Tour- Ios Ios ism, like other sectors of ac- Koufonissi Koufonissi Thira tivity should promote sustain-Thira Patmos able development and benefitPatmos Paros the local population. Paros Leros Leros Kalymnos To achieve this, it is especiallyKalymnos Antiparos Antiparos important that sustainable Kos Kos tourism development treat the Rodos Rodos© Eurisles particularly rich, attractive, Mykonos Mykonos and fragile, environment in the islands, as an essential sup--80 -60 -40 -20 0 20 40 60 80 100 port. the environment. Conversely, Sustainable island develop- the conservation of the natu- ment is designed to safeguard Island authorities in charge of ral and cultural milieus is de- the human heritage, protect tourism now realise that the pendent on a controlled ex- nature and its resources, so as environment should not be pansion of tourism. The en- to ensure their long-term vi- subject to galloping specula- vironment is a vital “resource” ability, thereby catering to the tion or unrestrained commer- as part of a long-term strat- needs of present and future cialisation, because the eco- egy for the integrated devel- generations. It is therefore logical aspect and the natu- opment of the local tourism important to make the differ- ral heritage are tourism sell- industry. ent players involved in tour- ing points, and island tourism ism aware of the role they can itself is highly dependent on play and their responsibility 93 Off the coast of Europe

to combat the negative effects tool designed to ensure the Many island regional authori- of tourism on the environment. long-term future of these very ties are conscious of this, and activities. The “eco-tax” in the their actions in favour of sus- Environmental law is an indis- Balearic Islands and the tax tainable tourism are designed pensable tool for implement- on transport in Corsica are to affect the rules of the ining this type of policy. Legis- examples in point. ternational tourism market lative and regulatory con- and modify the strategies of straints designed to protect The commercial exploitation the large air carriers and tour and conserve ecosystems and of natural spaces can be in- operators. The equilibrium, the historic and cultural her- creased, provided that the indeed the very survival, of itage make it possible to man- natural milieu is not damaged. island communities will de- age the environmental re- So-called “green” tourism or pend to a large extent on the sources with an eye to long- eco-tourism or cultural tour- ability to promote partnership term development. These ism are designed to reconcile between the local authorities regulations should be re- economic and environmental and the major players on the garded, not as an obstacle to interests and the common market, capable of taking ac- economic activities but as a good and private business. count of the long-term inter- management and monitoring ests of residents and tourists alike.

PERCENTAGE OF INTERNA TIONAL ARRIV ALS IN THE COUNTRIES OF THE EU

AU DE 6% 6% The total for international arrivals GR in the EU is 275 million (persons UK 3% "étrangers" près de 27 millions se sont rendus dans having visited a country other than 9% PT une des régions insulaires européennes en 1999... his or her country). Of these 275 4% million “foreign” tourists, almost 27 Ainsi, de façon "virtuelle" la somme des arrivées million visited one of the European NL internationales dans les îles représenterait près de island regions in 1999. 4% 10% des arrivées pour l'UE. Thus, the “virtual” total for inter- IR national arrivals in the isTotalland insulairess is UE 2% thought to represent close to 1010%% BE 2% of arrivals for the EU. FI 1% SE 1% DK 1% LU 0%

IT 12%

Percentage of international arrivals in the islands Part des arrivées internationales dans les îles (hors nationaux) FR (excluding nationals) 27% Percentage of international arrivals in countries Part des arrivées internationales dans les pays possédant containing island regions (excluding islands’ share) ES des régions insulaires (part hors îles) 12% Percentage of international arrivals in countries Part des arrivées internationales dans les pays n'ayant pas de régions insulaires containing no island regions © Eurisles 2001 © Eurisles

94 Prospects for development

The persistent potential of fisheries and agriculture

isheries and agriculture MARINE RESOUR CES are sectors which, in the The ubiquitous presence of the sea in of the catches are thunnidae, representing islands as elsewhere, suf- Azorean life means that it is possible to a mere 15% of the values of the fish F develop significant fisheries activities, de- landed. fer significant crises for various spite the absence of a continental plateau, Some of the fish is exported fresh, some reasons. Island status can how- and the existence of significant migratory canned and some for domestic consump- ever, in certain circumstances, flows and restrictive Community regulation. The choiceS of end markets is dic- constitute an asset. tions which are out of step with regional tated byE atmospheric conditions, and high reality. On the other hand, conditions are packaging and marketing costs. ideal for the implementation of scientific RDespite the development of small ports in In the field of agriculture, the activities concerning the knowledge and the islands, São Miguel and Terceira ac- the exploration of the marine resourcesO of count for approximately 70% of the epizootic diseases which struck the North Atlantic. catches and almost 74% of the fishermen European herds in recent years The fisheries sector in the AzoresÇ corre- registered in the region. Significant ef- (“mad cow” disease, foot and sponds to an exclusiveA economic zone of forts have been made in the field of pro- almost 1 million Km². The catch varies fessional training but these have not yet mouth, etc.) open certain pros- enormously (between 9,882 and 20,610 made it possible to rectify the situation pects for the islands. Island iso- tonnes over the last ten years) and the va- whereby the sector is dominated by un- lation can constitute an advan- riety of species is declining. Fifty per cent qualified manpower. tage because it can, by consti- to strictly control, and, if nec- ation of the islands and that of tuting “disease free zones”, of- essary, restrict access to the is- the mainland. fer the species under threat bet- lands, in spite of Community ter protection than on the main- principles of free movement of There are, obviously, no simple land. To exploit this asset, how- persons and goods. Secondly, and uniform solutions in this ever, two conditions must be island productions originating field, as the steps to be taken met. Firstly, the technical and in these disease free zones must vary according to the animal or regulatory resources capable of be directly marketable free from vegetable species. However, the guaranteeing the quality of is- the prohibitions affecting all potential for using the islands land production must be in national productions without as disease free zones should be place. This implies the ability discrimination between the situ- looked into and the implementation of specific regulatory THE POTENTIAL OF THE ISLANDS FISHING mechanisms envisaged. The fishing grounds around the islands developments and a more sustainable have traditionally been among the most exploitation of waters within the 6 and In the fisheries sector, the island prolific in Europe and have provided the 12 mile zones. The Fisheries College is basis for a strong fishing industry. likely to play a key role in monitoring regions, like the coastal regions, The potential of the islands fishing in- and promoting new initiatives. suffer from the decline in the dustry is best illustrated by the fact that There is also significant potential for stocks of numerous species, and local vessels take only 16% of all fish more fish processing on the islands in caught around the islands. The CFP, order to add valueD to the product and the overcapacity of fishing fleets including the Shetland Box, has not been maximise the return to the local (which is as high as 40% at EU entirely successful to date in providing economy. AtN the moment more than 60% stability for the industry or achieving the of fish caught by the local fleet is not level). However, the economic conservation of fish stocks, but with ef- landedA in Shetland far less processed. and social importance of this fective conservation and resource man- The initiatives taken recently with activity in various islands, es- agement the islands catch of traditional Lpelagic processing needs to be built upon species could be sustained over the next and consolidated. pecially the lack of viable alter- decade. It would make good economicT Fish farming has grown rapidly in re- natives, highlights the vital need sense to encourage the catching of fish cent years and still offers considerable to pay particular attention to by vessels based within a fewE hours potential for further growth particularly steaming time of their home ports. There through diversification into new species stock management in the waters is also scope for the local fleets to di- such as halibut and cod and the devel- surrounding the island regions. versify into catching nonH pressure stock opment of more offshore sites. The species and to use new types of fishing salmon farming industry has been a techniques subjectS of course to careful major success story which is now worth The need to ensure the long- consideration of their environmental over £80m per annum to the local term future of fisheries in the impact. economy. However, the future viability The initiative to establish a Shellfish of the industry depends on improved islands requires the exploitation Regulatory Order should help to open the management and disease control as well of stocks in renewable condi- 95 door to other coastal zone management as EU action to control the market. Off the coast of Europe

tions. It is doubtful that this can ity sites (purity of water, pro- tackling the damage that storms be done in the context of a tected anchorages). This trend can cause to installations set up policy of free access leading to initially concerned the islands of in open sites. The way forward a policy of competitive over-ex- the North Atlantic, and is cur- now is for new offshore systems. ploitation. On the contrary, rently being pursued in the thought must be given to a Mediterranean. policy of regulated tenure, directly associating the commu- The intensive exploitation of nities concerned. certain species such as salmon, In order to have more information about fish- however, raises a number of ing, one can read « POUR UNE STRATÉGIE HALIEUTIQUE INSULAIRE » de François Fish farming experienced spec- problems (diseases, environ- DO UMENGE, Director of “Mus ée tacular growth in various is- mental impact, falling prices), océanographique de Monaco” on Eurisles lands over the last twenty years, and there is a need to diversify web site (www.eurisles.org). and multinational companies to other species such as cod, heavily invested in those island halibut, etc. There is a need to regions offering the best qual- develop technologies capable of

Energy resources as a source of wealth

he development poten- We do not know whether “off- cially by certain pressure tial linked to the exploi- shore” drilling for oil or gas groups. Ttation of energy re- will continue to enrich cer- sources in, or close to, the tain islands because the prof- Will the exploitation of re- islands depends on numer- itability of the fields depends newable energies (bio-mass, ous, complex, parameters, on parameters such as their wave energy, solar energy, such as the operating condi- size and accessibility, trends hydraulic energy, wind power, tion of these resources, cost in world oil prices and inter- geothermal energy, tidal variation, technological national tensions. It is, power, etc.) be a determining progress, etc. factors which moreover, likely, in light of the factor for the development of can militate in favour of or increased sensitivity of pub- the islands? The answer var- against the islands. lic opinion to environmental ies widely, not only accord- questions, and the growth in ing to local conditions (expo- The example of North Sea and renewable energies, that drill- sure to wind, swell force, Atlantic “off-shore” oil is an ing for new off-shore oil or nature of subsoil, etc.), but interesting one. In the 1970’s, gas deposits will be moni- also according to whether or the favoured solution was to tored in a more critical man- not there are fixed infrastruc- connect offshore drilling plat- ner than heretofore, espe- tures for conveying the energy forms to large terminals by

pipeline, which ensured that RENEWABLE ENERGY SHARE OF ELECTRICITY PRODUCTION the Orkneys and Shetland had Percentage of electricity production Type of Renewable Island connected to Island Year a key role to play. Nowadays, from Renewable Energy Source other electricity grid this is not automatically the Energy Souces La Désirade (Guadeloupe, France) 100% Wind : 100% 1998 Yes (regional) case, because technological Flores (Azores, Portugal) 42.60% Hydro : 42.6% 1999 No Geothermal: 30.6% progress now means that the Sao Miguel (Azores, Portugal) 37.60% 1999 No Hydro : 7% oil can be loaded directly at Marie Galante (Guadeloupe, France) 30% Wind : 30% 1998 Yes (regional) sea in better conditions. For Corse (France) 30% Hydro : 30% 1999 Yes (Corsica-Sardinia) smaller fields, this option can Gotland (Sweden) 15% Wind : 15% 1999 Yes (with Sweden) Sao Jorge (Azores, Portugal) 10.30% Wind : 10,3% 1999 No be more profitable than build- Graciosa (Azores, Portugal) 6.90% Wind : 6.9% 1999 No Wind : 5% ing costly underwater infra- Crète (Greece) 5.50% 1999 No Other : 0.5% structures. Santa Maria (Azores, Portugal) 3% Wind : 3% 1999 No Faial (Azores, Portugal) 1.10% Hydro : 1.1% 1999 No 96 Terceira (Azores, Portugal) 0.80% Wind : 0.8% 1999 No Source : "Renewable Energy on Small Islands (second edition August 2000)" - FED (Forum for Energy and Development) Prospects for development

WESTERN ISLES effects of large windmill RENEWABLE ENERGY RESOUR CES farms) need obviously be It is widely acknowledged by industry that However, electricity transmission and dis- taken into consideration. the marine energy resources to the West tribution systems willN not allow our re- of the Hebrides are significant. The West- newable energy sources in the Western Isles The manner in which certain ern Isles are an island chain some 210km to be fully exploited.R The replacement and long, with direct access to the vast re- upgrading of the electricity inter-connec- technical or environmental sources down the west coast of the Islands tors (viaE cable) to the islands will there- obstacles can be overcome and this offers the best opportunity for the Tfore be required in the medium term. development in of wave resources in Scot- Presently, a £500S million project, involv- will obviously have signifi- land. The wave energy density on theS West ing the contructionE of 250 of the world’s cant consequences. For exam- Coast of the Western Isles has been esti- largest wind turbine is presently being ple, the transformation of mated at 67 to 70 kw/m. TidalE stream consideredL in Lewis. This massive windfarm speeds in the Western Isles are estimated would have the potential to generate 2,000 renewable electricity into liq- at over 1 knot at theW Butt of Lewis, 1.5 knotsSmegawatt – the equivalent of 3 nuclear uid hydrogen could solve the in the Sound of Barra, and are greaterI in power stations - . This energy would be the Sound of Harris. Mean wind speeds exported via to the UK mainland a sub- problems of storage and dis- throughout the Western Isles are well above marine cable of some 350 miles. tribution. The construction the UK average, and are also recognised Source : http://www.w-isles.gov.uk/ of sufficiently weather-resist- in European terms. ant “off-shore” installations between the island and the culated over the long term. could solve the nuisance of consumption centres on the Their impact on the environ- installing massive infrastruc- mainland. ment (for example, the visual tures in inhabited areas …

In islands where such infra- ENERGY SOUR CES IN CRETE structures are not technically Crete is confronted with the same en- agricultural products derived from ol- or financially feasible, the ergy problems as other European islands ive growing and wine growing) for sup- impact of renewable energies (high cost, provisioning problems, etc.). plying energy. 12% of the energy con- Energy consumption in Crete comes to sumption is thus covered by biomass, will probably remain limited 20,603 TJ. in particular via olive kernels (in oil to reducing energy depend- The breakdown of energy consumption presses, houses and glasshouses, for ency, and to lowering produc- per sector is as follows: 22.56% domes- reheating premises and drying agricul- tic economy, 4.32% agriculture, 10.56% tural foodstuffs). However, there are tion and distribution costs in Industry, 10.15% tertiary sector, 50.41% several possibilities for further devel- the region. In those islands transport. oping such uses of biomass and its ex- The breakdown of consumption per type ploitation in order to produce electric- where it is possible to distrib- of fuel is as follows: 11.75 % biomass, ity. ute electricity, the renewable 19.07% electricity, 33.80% Petrol, The existing solar energy potential has energy potential could be 28.32% Diesel, 2.39% solar energy, led to the rapid development of solar 2.48% oil, and 2.19% gas. heating in the island. It is estimated used to supply the mainland. In Crete, approximately 20% of the to- that there are 45,000 such installations tal demand for energy is covered by elec- in the island. Ambitious projects already tricity. Breakdown of electricity con- Photovoltaic technology has begun to sumption per type of use: domestic use penetrateI into Crete’s energy system, exist in some parts of Europe. 38.16%, commercial 39.69%, industrial particularly in hotels and isolated In the Orkneys, a wave and 9.22%, agriculture 4.18%, public lighthouses.T ing 1.45%, public use 7.30% analyses. In a parallel development, the island of tide energy exploitation cen- In 2000, total electricity consumption Gávdhos,I close to Crete, gets most of tre will be created. In the in the region came to roughly 2,139 its electricity from photovoltaic systems. Western Isles, the idea of an GWh. 90.4% of which was generated by Furthermore, all the lighthouses in Crete the two DEI stations in Iraklion andRare powered in this manner. underwater cable connecting Khania, and 9.6% from renewable en- In the context of the 1994-1999 Energy the archipelago to the south ergy sources (9.55% wind powerK and Operational Programme, several photo- of England, and of an impor- 0.05% from small hydroelectric units). voltaic investments have been approved The development of renewable energy while, as part of a special measure un- tant 600MW windfarm devel- sources in Crete der the same programme, targeted ex- opment are under study. In A total of nine wind farms operate in clusively at solar energy and at Crete, the island, generating 69.9 MW. A new the construction of 25 photovoltaic in- Gotland, where electricity 2.3 MW farm is under construction in stallations has been approved for the produced from wind power Lassithi. island (in hostels, factories, SME’s, etc.) accounts for 100 GWh per The Crete Region has just agreed to the generating a total of 2,066 MW and with construction of 13 additional wind farms, an energy production capacity of 3,088.3 year, or 15% of the region’s with total power of 54.45 MW. MWh. needs, the potential exists for At the same time, the Greek electricity At the same time, this programme has generating 3,600 GWh per board (DEI) uses two small hydroelec- also seen the realization of numerous tric units generating a total of 0.6 MW investments designed to save energy. year. Such developments (a study has shown that Crete’s total The possibilities of making greater use obviously require consider- potential in small hydroelectric units of Renewable Sources of Energy are con- able investments, and their does not exceed 6 MW). siderable and Crete is already a pioneer Exploitation of biomass is widespread among European islands in this regard. 97 profitability can only be cal- in Crete (biomass derived mainly from Off the coast of Europe

WIND PO WER ON GO TLAND : CLEAN ENERGY BUT CONTR OVERSIAL … Over recent decades there has been a very ment is probably needed to compensate for brochure recently published by the substantial increase in wind power produc- the relatively low output of wind power Municipality. tion on Gotland, unparalleled elsewhere in plants compared to other sources of power, In the Gotland County Administration 1998 Sweden. It started in 1984, when a state- especially compared to atomic energy plants. report “Policy and guidelines for the locali- owned test machine was built on the south- The development scenario is a doubling of sation of wind power mills and telemasts in west peninsula of Näsudden; some private recent production levels within a period of Gotland countryside”, it is however ac- machines were later built nearby. The ex- 5-6 years and up to 500 GWh/year some knowledged and stressed that: ploitation of this peninsula and other sites years later. A 1 MW plant can produce about -Wind power plants of present modern de- in South Gotland rapidly expanded, with 3GWh/year, which means about 200 more sign and scale are completely new elements private interests backed up by quite heavy plants during this period. A government in- in the traditional landscape and affect peo- subsidiaries from state government. Produc- vestigation has proposed large-scale devel- ple in many ways and to a larger extent than tion increased from 3 MW 1984 to 15 MW opment of wind power along the Swedish sea was at first thought likely. Psychological fac- ten years later, and today about 48 MW is coast, on Sweden’s large lakes and also in tors are more important here than is usu- installed, mostly in south Gotland, with an mountain areas of northern Sweden. For ally imagined. The noise is often a distur- output of 100 GWh/year. This means that Gotland the report says that possible future bance although attitudes towards the plants about 15% of all the electricity used in production in Gotland could be as high as and wind power as energy resource are im- Gotland now comes from wind power. 3,600 GWh/year. portant. There is a continuous noise from The established policies adopted both by After the early years of relatively unrestrictedD the rotorblades – a conceivable disturbance central government and the local authori- development, major efforts are now being for many people even if the sound level is ties are that renewable energy resources made to control the installation ofN new plants not too high. Another disturbance is from should replace nuclear power. Gotland is and to confine these to sites without too the visual effect of “flashes” of sunlight from recognised as being one of the areas in Swe- much conflict with the environment and peo- the blades hitting nearby buildings. These den with the best wind conditions for large ple living near the plants.A National and lo- effects are particularly noticeable indoors. scale development of modern windmills. The cal plans for the development of wind power There should be a minimum distance of 500 Näsudden Peninsula has particularly good are being produced,L to provide the neces- meters between the plant and nearby conditions in this respect and the area is now sary investment guidelines for the firms in- houses, and a longer distance if several more or less “packed” with windmills. In volved and forT the authorities which have to machines are placed in a group. other places there are mostly only one or a deal with each new application for a build- Later on, the report looks at the question of few machines scattered about the land- ing permit that involves the raising of a new conflicts with Gotland’s important natural scape. Plans are also under way for large wind powerO tower. The general public’s ac- and cultural assets, including the coastline scale installations off the coast of Näsudden ceptance of future development will prob- with its relatively few buildings apart from and at other sites – locating wind power Gably depend on effective and reasonable old fishing villages, the beaches, and fur- plants in the open sea is gradually becom- guidelines and regulations. ther inland an ancient open and flat farming seen as the best way of avoiding con- Wind power issues are increasing the working landscape. flicts as well as maximising use of the wind. load of the authorities concerned, not least - Wind power plants can be attractive to look However, if the machines are installed a long because of all the appeals. Formal protests at and visit, but large-scale exploitation sig- way from the land, the costs of electricity are lodged and appeals made against nearly nificantly alters and could even destroy the transport are very high. If on the other hand every building permit granted by the Munici- qualities of the landscape for recreational they are located close to the coast, they can pality for a new wind power plant. The ap- activities. The attraction of Gotland for tour- still cause the kind of nuisance that more peals, most of which are rejected, are ism as a natural and cultural environment, and more people seem to be complaining brought before the County Administration or largely unaffected by (other) exploitation of about. alternatively a higher national Court – the modern times, must be maintained and it is There is in fact a heated debate about the latter being the case if a substantial group therefore essential to think carefully about development of wind power going on at of plants is being planned, rather than just a the use and development of wind power. present, in the local papers for example, al- few or only one. The building of plants off the coast, in the though a majority of the population seems Wind power is given as an example of one open sea, could also have negative effects to be in favour of large-scale use of this of the many interesting features of Gotland that must be taken into consideration, the source of energy. And large-scale develop- as an ecologically advanced region in a report summarises.

RENEWABLE ENERGY IN THE AR CHIPELA GOS In 2010, the Autonomous Region of the Azo- (and island regions), it will compensate on res should fulfil its goal to produce 63% of its the one hand for the fact that they are unable electrical energy through renewables (geo- to join the single energy market and the ener- thermic power, hydro-electricity and wind gy transmission networks,S and on the other, power). Rfor the extraE difficulties involved in the pro- The EU should actively support the Ocondi- duction, distribution and sale of energy, es- tions for such a growth in renewableÇ energy pecially in the archipelagos. in the archipelago. ThisA effort will be an exam- The list of selected projects is already in Brus- ple of positive discrimination, allowing the sels with an analysis of the savings in terms principal of equal opportunities to be trans- of fossil fuel imports and reductions in CO2 lated into tangible action, since for the RUP emissions.

98 Prospects for development

Research, development and new information technologies

he potential impact for DEVELOPMENT AND PR OMOTION OF THE the islands of research ICT INDUSTR Y Tand development activi- Despite the very low level of research generation mobile net, 3G, in Åland and ties, and the new information and development activities in Åland in has also signed a strategic partnership. general, one interesting project started The latter will ensure that Åland has technologies, depends on sev- during 2000 which might even be im- access to the latest technology and serv- eral parameters. portant for future development in the ices concerningD the mobile Internet. The mobile telecommunication sector. It is project will also stimulate local enter- a pilot project to test new equipment prisesN to increase research and devel- One of these is the existence and new services concerning the mo-Aopment and to find new business op- of a local context favourable bile Internet. The Åland islands, with a portunities. to the development of research population of 26,000, have beenL con- During 2000 a new submarine cable was sidered to be a suitableÅ test area due to laid to import electrical power from activities in a specific field. the high penetration of ICT. The local Sweden and at the same time infrastruc- This applies, for example, to Mobile Telephone company has made a ture for fibre-optic communication was deal with one of the biggest telecom installed to improve access to the dig- renewable energies where companies in the Nordic countries to ital world. The investment will support many islands can be used for invest in the infrastructure for the third ICT development in Åland. experimental purposes. This can also apply to activities In certain cases, the very iso- is the role of Iceland in genetic linked with the study or pro- lation of the islands and their research. tection of ecosystems, or com- small population make them munications. ideal locations for research Another factor is the simulta- activities. An example in point neous existence in the island of sufficient infrastructures, services and human potential THE ISLANDS AS CENTRES OF EX CELLENCE: THE CASE OF CRETE to enable the growth of re- RTD activities in Crete are carried out in opment on the island of telecommunications search activities: sufficiently around one hundred research and technol- infrastructures, with the installation of an ogy units (centres / laboratories) employing optical fibre system along the northern cor- high level of education, ac- 250 researchers, 70 of whom hold perma- ridor further extended to the hinterland. The ceptable accessibility and nent posts. In addition to the various re- installation of optical fibres linking Crete communications, etc. This search bodies, organisations belonging with Cyprus and France and the link-up more widely to both the public sector (devel- between Germany-Crete-Japan-Australia pre-supposes a deliberate opment organisations, etc.) and private sec- (Seame We3) have also been completed. At policy on the part of the au- tor play a major role in these RDT activities, the same time, networks designed to connect mostly with regard to applying their results. up different service providers in the tourism, thorities in the above-men- Scientific collaboration between the region’s culture and healthcare sectors have already tioned fields, significant re- various research bodies / organisations is begun to be developed within the framework sources, and long-term action. highly productive: a number of sectors of of projects funded by various Community scientific and technological activity in the Programmes. Region are particularly dynamic and present The rapidI expansion and dissemination of The economic impact of re- on the international scene. Fields in which know-how developed by the university com- search and development ac- there is an offer of services in new technolo- munityT and research institutes is encourag- gies as well as a high level of know-how are ing the creation in Crete of a third centre of tivities in the islands depends listed below: Idevelopment, in addition to those already heavily on their capacity to An especially important area is the devel- constituted by the farming and tourist industries. attain a “critical mass”, above R which the various centres of Information and Communications Technologies (ICT) Biotechnology activity support each other IT K Genomics (plants) and generate new enterprises. Robotics Polymer technology It is then possible to invert Image processing / artificial vision Environmental technology polarities, and to turn the is- Remote inspection Effluent disposal land region into a place where Remote medicine and remote surgery Marine biology R&D is concentrated on ac-

Medical EDT Deep-sea measurements count of intrinsic qualities,

Laser technologies (for biological, medical and artistic applications) Acoustic and Sonar technology instead of being decentralised solely as a matter of public Molecular genetics (plants and insects) Protection against natural catastrophes 99 Enzyme technology Geographic Information Systems (GIS) policy. Off the coast of Europe

In this context, the use of new THE TELEW ORKING PR OCEDURES information technologies has ON GUADEL OUPE Although there is unanimous agreement In the field of education, the rate of undeniable advantages for the in acknowledging the capacity of equipment of schools is still much lower islands, in so far as they of- information technologies to overcome than the national average and there are fer at least a partial solution many constraints and to significantly significant disparities between types reduce transaction costs, inequalities of school (primary schools, secondary to problems of distance. They between territories continue to worsen. schools, grammar schools), with pri- do not, however, represent a As regards Guadeloupe specifically, the mary schools particularlyE poorly role of the information and communi- equipped. panacea, because the con- cation technology sector in the Family computerP ownership is much straints of insularity come into Guadeloupe economy remains limited. lower than in mainland France. In play once more when people At the end of the first half of 2000, the 1995, the INSEE family budget survey sector had 1,463 employees (statistics showed thatU 7% of families owned a need to travel physically. Fur- compiled for the consular district of computer. The estimate for 1999 is thermore, information tech- Pointe-à-Pitre), an increase of 21.3% 11%1 .O By comparison, 23% of fami- nologies require a good rate between December 1997 and June 2000. lies in mainland France had comput- The ICT sector does not, therefore, ers in 1999. of equipment in computer currently constitute a buoyant segment InL Guadeloupe, the low equipment rate hardware, and acceptable of the Guadeloupe economy. is explained by the relatively high cost Having said that, Internet penetrationEof computer hardware and telecommu- communication costs. rates have experienced strong growth nication equipment. since 1997. In September 2000, local This means that the regional authori- access providers counted 21,349D sub- ties have a vital role to play in strength- scribers in Guadeloupe. Of these, pri- ening the information society at the vate individuals representedA 70% of all level of the territories, at company subscribers. level, among individuals, and in the The barometer of chartered account- struggle against “digital inequalities”. ants in Antilles-GuyaneU recorded that The financial resources should be com- 44% of companies have an Internet mensurate with the task. connection and 28% have a web site. In any case, the regional authorities The result is thatG the use of Internet need to make a significant effort to for e-mail purposes remains to be de- improve equipment rates. veloped in Guadeloupe.

1 Source: Economic observatory of the Chamber of Commerce of Pointe-à-Pitre

FLEXIBLE UNIVER SITY EDUCA TION ON GO TLAND In 1986 a two-and-a-half-year degree All education was bought in from outside. malt factory – in the harbour area of Visby. course in economics was started in Visby Teachers from the economics faculty of It is now a fully-fledged institution, like the at Development Center of Gotland (UCG). Stockholm university and other places flew other small state regional universities. Small regional universities had been estab- in to Gotland to give lectures and provide The flexibility of the original set-up was ben- lished in the 1980s in nearly all of the 24 educational support. This cooperation en- eficial in many senses and there was a lot counties of Sweden that did not have a tra- sured that the university studies in Gotland of the vitality and enthusiasm of a new and ditional main university such as Lund or were of a high quality and created a nation- not too highly-structured activity. One of the Uppsala. This was partly due to the new wide interest in the activities. Good results disadvantages, however, was the difficulty view which saw higher education as a re- were achieved with a relatively small budget in building the local competence that was gional development factor of prime impor- and almost as many students came to needed to ensure continuity and long-term tance and a facility for driving development, Gotland from elsewhere to study as those quality in the teaching provided. One other rather than as being for educational pur- originally from the island. problem was the extra cost, for example the poses only. A new site for the College University of travel costs and dual administrative costs In Gotland – by far the smallest county in Gotland Darising from the fact that all teachers were Sweden, with its 57,000 inhabitants – spe- In fact this was one of the fundamental as- brought in from outside. cial arrangements would obviously be pects of the model, that the studentN body The new ”independent” status enjoyed since needed to provide higher education locally. would be made up not only from the local 1998 by the College-University of Gotland The state did not want to take on the costly population; a significant numberA of students has meant a stabilization of its activities and responsibility for a fully-fledged university had to be attracted from other parts of the extensive recruitment of local teaching staff. institution in small Gotland. It would how- country. Since the beginning,L students have To be able to compete for scarce national ever support efforts made by Gotland to cre- shown a keenT interest in studying on resources for higher education in the coun- ate something like a small college-univer- Gotland; there are between 1,200 and 1,500 try each school has to do its utmost to at- sity, provided a working model for low- applicants each year. tract students from all areas. Standing out budget, high-quality activities could be pro- One obviousO purpose in introducing univer- from the rest with a distinctive profile and duced. sity studies in economics and other subjects excellent quality is therefore vital, and the The organisation of university education on G– including technology, teaching and arche- school in Gotland has up to now been suc- the island in the early years meant a com- ology – was of course to enhance the sup- cessful in this struggle. The foundation for pletely new structure for higher education. ply of qualified labour in fields that were it success was laid in the early years of the It was called the Gotland Model. Its success important for the growth of the local Gotland Model, and the contacts with vari- was probably the necessary precondition for economy. At the same time, the original pur- ous institutions in Sweden as well as abroad the recent establishment of the school as an pose of the project was also to be attractive have continued, although in new forms. independent body, now with a staff of about and of interest in a national perspective. The cooperative approach to and flexibility 100. Until then the structure was very small Finally, in 1988, as a result of much hard of the provision of higher education in – and was part of the County state admin- work and negotiations involving the Gotland Gotland seems to reflect a predominant and 100 istration of Gotland. The method chosen was authorities, interests and central govern- essential aspect of its history as well as its close cooperation with high-status univer- ment, Gotland University College was estab- need for progress and development in the sity institutions in Stockholm and elsewhere. lished in an attractive old building – a former years to come. Prospects for development

Regional or local identity products and the community economy

he fact that the islands CORSICAN HONEY are places with a Corsican honey “Miel de Corse – Mele di Corsica” must be made from nectar or honeydew foraged by distinct identity, an under the terms of the AOC (Appellation d’Origine bees belonging to the species Apis Mellifera Cor- T Contrôlée - registered designation of origin - de- sica (Corsican ecotype). original culture and living cree of 30 January 1998) is broken down into a The AOC system certifies the traceability of the traditions is an economic range of six categories of different tastes thanks to product, that is to say the fact that all the produc- asset which transcends the the island’s varied and endemic vegetation (close tion stages can be monitored and certified. It has various sectors of activity. to 3,000 plant species, 127 of which are proper to its constraints,E such as the prohibition on import- the island). This range, which is governed by the ing bees,S which complicates pollenisation and leads This is expressed in various AOC system is the result of scientific work con- to the need for a more strenuous effort to prevent manners. ducted with a view to describing the various hon-Rintoxications. On the other hand, the local bee eys on the basis of the pollens and to constructing population is less affected by varoa mites than their a regional reference pollen library. O cousins on the mainland and is, for the moment, The symbolised map of the The quality policy followed byC Corsican beekeep- shielded from the effects of certain pesticides such island, its historic coat of ers grew out of a veritable development plan based as gaucho. on ancestral know-how. The manner in which the The profession is organised in a syndicate with arms (emblem, crest, flag, development of the Corsican bee-keeping industry close to 100 members registered with the AOC sys- etc.), or original “logos” un- has been based on the AOC system is a guarantee tem, and production of AOC guaranteed honey derlining the island origin of of the quality of the honey. For example, the honey comes to some 200 tonnes per year. a product constitute effective signage, which rapidly draws it to stand out from destina- therefore faced with a deli- the consumer’s attention to tions with analogous geo- cate phase of transition and goods produced in a known graphic or climatic character- adaptation, not only in con- and limited space. Combined istics, but which do not boast serving their originality, but with an origin and good- as strong an image. However, also in promoting it and in- quality production, the is- the existence of this cultural creasing awareness of it. land’s image helps marketing. potential is based on a so- It even happens that certain cial substrate which it be- Finally, most islands have a products which do not origi- comes difficult to preserve in strong “Community nate in the island use the regions which entertain economy” tradition, based, image or name of an island heightened exchanges with not on classic monetary re- more or less discretely in or- the outside, and experience, lations, but on solidarity and der to stand out on the mar- just like mainland regions, barter. Although this type of ket (such as Estonian vodka albeit somewhat later, phe- relations persists, it also takes or Scotch whiskies, etc.). nomena such as the decline on new forms with significant in agricultural activities, in- growth in the “third sector”, The musical, artistic, or even creased urbanisation, or the that of the associations and linguistic originality of an natural disappearance of the non-profit-making structures. island similarly constitutes an age groups most impregnated Particularly present in activi- asset. In the context of the with the traditional language ties linked to social services, tourist economy, they enable or culture. Island cultures are environmental protection, or educational or cultural ac- THE HARRIS TWEED tions, this third sector not The textile indutrsy is primary based upon in 1966. By the 1980’s, this hard-wearing but only has a direct impact on the weaving of Harris Tweed which is an in- heavy cloth fell out of fashion and demand the local economy by creat- dustry indigenous to the Western Isles. Harris fell. Harris tweed is Nnow enjoying a revival Tweed is a woollen cloth made from pure vir- due to the availabilityR of double-width tweed, ing jobs, but also indirect ef- gin wool produced in Scotland, spun, dyed newE fashionable colours and softer, lighter fects because it complements and finished in the Outer Hebrides and handTtweed which is now finding favour with the woven by islanders at their own homes.S Au- fashion houses of the world. There are cur- the action of the public and thentic Harris Tweed is Estamped with the rently aroundS 350 weavers in the Western private sectors. It also con- Harris TweedW trade mark consisting of the Orb Isles.E However, this figure compares to around tributes to the quality of life, and Maltese Cross with the words “HarrisL1,300 weavers employed in the 1960’s and Tweed” underneath. In the midI sixties,S de- around 550 in the 1980’s. The production of and helps retain populations. mand for Harris Tweed came from all over Harris Tweed will continue to fluctuate based 101 the world and peak production was reached on external demand. Off the coast of Europe

SCOTTISH AR CHIPELA GOS AND NOR TH SEA OIL

The geographical position of islands may have a considerable impact upon the shape of their country’s territorial waters, or Exclusive Economic Zone. Thanks to the Scottish archipelagos, the UK was able to increase substantially its share of North Sea oil resources, and to lay claim to large areas in the Atlantic. These developments have had a major impact upon the economy of the Orkney and Shetland islands, which were used as a base for building or servicing off-shore installations, or for bringing oil and gas onshore via pipelines. The Sullom Voe oil terminal, in Shetland, is the biggest of its kind in Europe. This plant, which stretches over 400 hectares, represents a £1,200m investment and is designed to cope with a throughput of 1.4m barrels of oil per day. A smaller terminal also exists in Orkney, in the island of Flotta. Although these archipelagos have drawn economic and financial benefits from these developments, fluctuations have nevertheless been brutal. In Shetland, for example, the population which was 17,000 in 1971, increased +35% in ten years. Another example was when technological changes in the field of air transport in the 1990’s brought the sudden decline of airport infrastructures which had just been built at great expense. Last but not least, those islands are made very vulnerable to pollution because of the heavy oil tanker traffic.

102 AN ENLARGED EU Integration or disintegration?

«… Every island fled away, and the mountains were not found.» Revelations 16 – 20

n spite of the integration of Island Regions such as Gozo, Saaremaa or Hiiumaa, the enlargement

process will bring a double evolution. Firstly, a further reduction of the demographic weight of Is- Ilands in the Community; second the fact that the E.U. territory will become even more “mainland” based. Moreover, this phenomenon is likely to have direct consequences for these Regions in areas such as the Cohesion policy, the State Aid regime, or even the evolution of the Community’s statistical nomenclature. Will the enlargement prove to be a factor of disintegration for the Islands? Such a prospect would not be without risks, including in the field of Common External and Security Policy.

A Community increasingly «mainland based»

n a 15-Member State Euro- account of the fact that two of and at lower cost, both to the pean Union, where the is the enlargement countries (Cy- old major centres of production Ilands represent a mere 3.5% prus and Malta) are small is- and consumption, and to the of the population, they already land states, it is clear that the most heavily populated new experience significant difficul- 27-member Union will be much centres (Poland, Czech Repub- ties in getting across the spe- more centred on the heart of the lic, Slovakia, Hungary, etc.). cific characteristics of their situ- continent, both geographically Apart from the Baltic Sea, which ation and, especially, in having and demographically. will be open from one shore to these characteristics taken into the other, this will be of little account. This “continentalisation” of the benefit to the island regions, territory of the Union, together which will find themselves at an What will be the case in a Eu- with the increase in its popu- even greater distance from the ropean Union enlarged to 27 lation, will be of special ben- new markets than they currently members with a population of efit to those regions which, are from the major economic 500 million, where the island owing to their geographic loca- centres of the Union. population will represent less tion, are best placed to benefit than 3%? from it. The south-easterly shift The consequences of enlarge- in the Community’s centre of ment on EU policies are, fur- Despite the integration of the gravity will favour territories like thermore, liable to directly or Estonian island regions, or of the south of Germany which will indirectly affect the situation of Gozo (Malta), and even taking be able to gain access, rapidly the islands in various fashions.

103 Off the coast of Europe

THE CENTRE OF EUR OPE SLIDES EASTW ARD

This map of the sky measures the intensity of the light produced by human activity. The concentration can be clearly seen and an axis Germany, Czech Republic, Poland, Hun- gary emerges clearly. Please note the intensity of the offshore platforms of the North sea, which illuminate the sky more than any island of Europe.

The place of the islands in the EU’s statistical nomenclature

n the context of a Union fore, have to be either attached hinder their access to the re- with almost 500 million in- to a mainland statistical ter- sources of the cohesion policy, Ihabitants, the statistical ritorial unit, or amalgamated because NUTS II level is re- nomenclature will inevitably to exceed the 800,000 mark. quired for calculating eligibil- be based on much larger units. This is in contradiction with ity to Objective 1 of the Struc- The Commission currently the specific realities of these tural Funds, and for calculat- plans to raise the threshold for regions, and would severely ing the areas eligible for the NUTS II regions to a minimum of 800,000 inhabitants. If this THE EST ONIAN ISLANDS: TOO LARGE OR T OO SMALL threshold were to be applied A first attempt at regulating the system of cover- tics. Within a large statistical region, however, ing the costs of insularity was made in 1993 the values of different socio-economic indexes indiscriminately, the result when Parliament debated the Islands’ Bill. The will be levelled and the characteristic structural would be that most island re- bill was not adopted, largely because of the weaknesses of theA islands will not be reflected. heavy burden it was anticipated this would put Take, for instance, the unemployment rate: in gions would be statistically on the state budget. the yearA 2000, the unemployment rate on the integrated in more heavily In the context of accession to the European Un- islands was close to the nationalA average, but ion, the formation of so-called statistical regionsMwe should not overlook the fact that the number populated mainland regions. – the future structural and regional policyU target of jobs on islands hasA decreased and an increas- Only 4 island regions currently areas – is an issue of currentI concern.I For the ing numberM of islanders have to commute to NUTS III level, groups of counties have been sug- work on the mainland (an estimated 10% of the exceed this population thresh- gested. The islandsH would be part of West-Esto- Eworkforce have jobs on the mainland.) Families old: the Canary Islands, the nia, whose population would make up 13%R of are separated, social tensions are escalating Balearic Islands, Sicily and the country’s total; the surface areaA of the region and outmigration is increasing. would cover nearly a quarter of that of the whole The position of the County Governments of Sardinia. All the other island country. As Estonia withA its 1.4 million inhabit- Saaremaa and Hiiumaa is that permanent, spe- ants is a relativelyS small country, it is difficult to cifically insularity-related problems must be 104 or outlying regions will, there- harmonize the quality of regional statistics and taken into consideration, and a statistical “Is- the local governments’ needs in terms of statis- lands region” should be created. The islands in an enlarged EU: integration or desintegration? derogations laid down in Ar- land region of Hampshire, and the islands of Gozo in Malta, ticle 87.3.a) of the Treaty in therefore prevented from ben- and of Saaremaa and Hiiumaa terms of national aid. efiting from the structural in Estonia on the occasion of policies, is a clear example of the accession negotiations The current treatment of the the possible repercussions of confirm these fears. Isle of Wight, which is amal- such a situation. The similar gamated with the rich main- difficulties that seem to affect

The loss of the structural policies

ith enlargement, ave- provement in their situation or excess of 75% of the EU average rage EU GDP will any reduction in the constraints will automatically be deprived of Wdrop, owing to the de- of their insularity. the exemptions in terms of State velopment backlog of the candi- aid provided for in Article 87.3.c date countries, with the result The impact of this mathematical of the Treaty. This will prevent that, by a simple mathematical growth in the per-capita GDP of national or regional authorities, effect, the per-capita GDP of the the islands will not be limited to supposing they have the re- regions of EU15 as a percentage eligibility to the Structural Funds. sources and determination, from of average GDP will increase. Unless new regulations are implementing sufficiently ener- This will affect the islands, which drawn up, all those island re- getic policies to offset the con- will automatically post a growth gions with a GDP per head in straints of insularity. in GDP, without any actual im- WITHIN OR WITHOUT THE EU

Countries and regions of this map refused to join EU, and Greenland even left it deliberately. For the Northern Atlantic Islands (Faeroe, Greenland) the main concern was to safeguard the resources of the neighbouring fishing areas upon which rest most of their economic 105 activity. But in these islands, as well as in Jersey, Guernsey, and the Isle of Man, the fear to witness a gradual erosion of the island’s states of autonomy by Community legislation was a decisive factor. Off the coast of Europe

The increasing weight of EU standards

hile the solidarity ile, to question the appropri- sequences, in a lot of islands. effort undertaken by ateness of rigorous criteria. It The colossal investments re- Wthe Community on is, nevertheless, true that these quired to protect exposed ar- behalf of the islands is liable provisions are particularly eas cannot be measured over to be reduced after 2006, a costly in the islands, on ac- one or two Structural Fund number of public expenditure count both of transport costs programming periods, but heads could increase. This and the absence of economies must be assessed over several especially concerns all ex- of scale. It is therefore fore- decades. At what stage should penditure relating to environ- seeable that the strengthen- this parameter be taken into mental (reduction of polluting ing of Community standards account in the investment emissions, waste disposal, will generate higher costs in plans? development of renewable these regions, which, in the energies, etc.), sanitary (and final analysis, will have to be Although the extent and na- food) or even social standards paid for by both the public and ture of the variation in sea (such as working time in the private sector. In the absence levels is debatable, specialist transport sector). The con- of structural aid or offsetting organisations feel that one of stant trend of EU policies and measures (in the field of taxa- the short- and medium-term EU legislation over the last tion, or State aid), compliance consequences of the green- twenty years has been to with EU standards could fur- house effect will be the more strengthen the technical con- ther handicap the competitive- frequent and more intense straints or the performance ness of island industries and appearance of climatic disrup- obligations relating to these seriously affect the budget of tions (storms, cyclones, etc.). fields. Whether owing to the the local authorities. The damage caused by such determination of the Member events will obviously have an States, or the effect of inter- Similar questions can also be impact on island populations national agreements, it seems raised with regard to the con- and island economies. With- reasonable to predict that this sequences of the climatic dis- out even envisaging extreme pressure is set to worsen. ruption arising from the green- catastrophes, the question house effect. In the long term, arises as to the effects on the In the field of the environment, the predicted rise in sea lev- lifetime of the infrastructures it would be a poor show for els will have, not only human most exposed to the elements. the island regions, whose eco- and economic, but also con- systems are particularly frag- siderable infrastructural con-

Heightened political vulnerability

nlargement will not be wi- nia, Czech Republic, Hungary, (44.5%) of the Member States thout political conse- Belgium, Bulgaria, Austria, will not be directly concerned Equences for the islands. Slovakia, Lithuania, Latvia, by the problem of the islands, In the current EU, only 3 States Slovenia and Luxembourg), 4 of or even au fait with it. These out of 15 have no island, and which will have no maritime 12 countries will represent only two have no maritime fa- façade. 25.4% of the population of the cade. In the enlarged EU of 27 Union and 35.7% of the votes States, 12 States will have no In other words, once enlarge- on the Council (123 votes out 106 island territory (Poland, Roma- ment is completed, almost half of 345). To obtain a qualified The islands in an enlarged EU: integration or desintegration? majority on the Council, it will be supported by at least 33 To what extent – and at what be necessary to obtain 255 votes belonging to States which, price – will these States, which votes, which will, moreover, simply owing to their geo- will inevitably have their own have to belong to 18 States out graphic reality, will be utterly problems and their own de- of 27 if the proposal does not unfamiliar with these ques- mands, be willing to support come from the Commission. tions. A similar situation will initiatives of interest to the is- Any request for legislation or prevail in the European Parlia- lands? To what extent will provisions specifically concern- ment and on the Committee of Member States more sensitive ing the islands or outermost the Regions. to island issues be willing to regions which requires such a grant these states concessions majority will therefore have to to get the required votes?

A high-risk situation

imited economic opportu- munity (Jersey, Guernsey, the The first reason, shared by nities, possible statistical Isle of Man, Faeroes), or to these 5 regions, was a question Lamalgamation with the leave it (Greenland in 1985). of governance. As they all en- continent, decrease or disap- joyed special status, they all pearance of structural aid for a had a very clear feeling at the number of regions, stricter provisions governing State aid, RIDDLE higher costs of implementing ·This European island region has succeeded in completely absorbing its developmental Community standards, in- gap with respect to its mainland, increasing its GDP per capita from 57 to 101% of the creased political vulnerability, national average in less than 15 years. ·It has an unemployment rate of 0.5%, despite a population growth rate of over 25% etc. Is this particularly sombre in the space of 25 years. assessment of the situation of ·The average salary of its inhabitants is 96% of the national average. the islands in the context of an ·It receives no financial support from its State. ·It receives no aid from the EU. enlarged Europe not excessive? What is it? It is, in any case, possible if no steps are taken in time by national and EU authorities. It is therefore not inopportune to imagine the possible consequences.

It is clear that a European policy which promoted the enlargement of the Union but which neglected the disparity of its own territories would generate a degree of frustra- tion. Over the long term, the most serious of these could generate crises, the extent or the consequences of which it is currently impossible to gauge. In this regard, it is worth mentioning the reasons which led a number of island regions in the 1970’s and 1980’s to decide either not to join the Com- 107 Off the coast of Europe

time that the process of union ment actually cause these Finally, the limitation of the fi- would gradually lead to an un- three factors to reappear. nancial resources of the Struc- acceptable erosion of the po- tural Funds, at a time when litical autonomy to which they The increasing mass of Euro- Europe has to finance its en- were profoundly attached, and pean legislation (with its some largement policy, leads to the which they had striven so hard hundred Directives, and be- risk of a severe reduction in, or to acquire or safeguard. Fear- tween 2,500 and 3,000 Regu- even the disappearance of, the ing a political dispossession, lations each year), and the structural policies in a number which they would no longer be problems linked to its applica- of islands from 2006. This able to curb once in the Com- tion, bring the question of gov- would have the effect of return- munity, they decided not to ernance to the forefront. In the ing these regions to a situation join. To govern their relations islands, the prospect of the in- similar to that which prevailed with the Community, they drew creasing “continentalisation” in the 1970’s. on their status of autonomy, of the European Institutions and negotiated original provi- owing to enlargement adds to While being careful to avoid sions in the form of Protocols this general problem the fear of undue comparisons or exces- or agreements. increased dependency on decisive pessimism, we would ar- sion-making bodies less and gue that these various factors The second reason, specific to less sensitive to island prob- tend to reconstitute a political the Faeroes and Greenland, lems. “substrate” fairly similar to arose from the refusal of the that which drove 5 island re- Community to take account of Similarly, the lack of flexibility gions to disassociate them- their most vital economic and of certain EU policies with re- selves from European con- social interests, and its inten- gard to the islands, in particu- struction some 20 years ago. tion to apply certain principles lar the competition policy, is a Such a scenario is a serious of the Treaty to them without continuing cause of friction. cause for concern, because in any major concession. These Once more, this raises the areas as fragile (and, some- two regions, almost totally de- question of finding a balance times, as politically volatile) as pendant on fisheries, would be between the application of the the islands, such a context forced to accept the principle of founding principles of the could generate serious crises, “free access” by Community Treaty, and their implementa- which it would then be difficult fleets to their 200 mile zones if tion in regions with a highly to control. In such a context, it they joined the EEC. Fearing specific territorial context. To is not impossible that the prin- (justifiably, in light of the per- what extent can State aid de- ciple of belonging to the Union formance of the CFP), the over- signed to reduce the additional would, in certain cases, be fishing of this essential re- costs of insularity really dis- called into question. source, the Faeroes and Green- rupt the operation of the single land refused to join. market?

The third reason, the impact of THE COST OF MAIL SER VICE IN THE ISLANDS which was only realised with According to Consignia, - the former good profit-making route. In the case hindsight, is that there was no « The Post Office » public company in of Scotland, with a territory of remote real regional policy at the time charge of postal services in UK - the areas, mountains and islands, scarcely average cost of a postal delivery is 28p populated, the average cost of delivery these decisions were taken. for every 27p stamped first-class let- is £2 by letter. In the archipelago of Although set up in 1975, the ter. Shetlands, the average cost of an iso- ERDF did not receive signifi- While making profit in the past, the lated letter goes up to £16 (106 times company is losing £1 million a day with the cost in London). cant resources until the middle some of its most profitable services In view of a gradual opening to compe- of the 1980’s, when all these already opened to competition. tition that would encompass the entire If plans to deregulate the postal deliv- mail market by 2006, what will happen regions had already made their ery is carried out, the situation would to postal services in remote rural parts decision. be very different according to the cat- of the country and all the more so in egories of regions. the islands? Consignia estimates it costs 15p to Source : « Scotsman », 01/02/02 It can be argued that current deliver a letter in London which is a developments in EU policies 108 and the prospects for enlarge- The islands in an enlarged EU: integration or desintegration?

The islands and the EU’s common foreign and security policy

t would be erroneous to be- ity. Although this aspect cur- article 17). In such a perspec- lieve that the tensions and cri- rently comes under the head, not tive, the role of these regions must Ises which are liable to affect of EU policies, but of structures not be neglected. the islands if such a negative sce- such as NATO, the aim of the EU nario were to materialise would remains “the progressive fram- - Finally, the aims of the CFSP affect only the islands and would ing of a common defence policy are to “strengthen the security of not have repercussions on the (…),which might lead to a com- the Union in all ways”; “preserve Community as a whole. In fact, mon defence, should the Euro- peace and strengthen interna- it is especially likely that they will pean Council so decide.” (Title V, tional security,(…) including have an impact on the common external and security policy, as THE ISLANDS, PO TENTIAL G ATEWAYS FOR TRADE WITH THIRD COUNTRIES defined in 1992 on the occasion (KRITI: ISLAND INTERF ACE – LINK S WITH KYPR OS, LEB ANON, EGYPT , ETC.) of the Treaty of Maastricht. During the last decade of the 20th century, the Countries of this region. the European Union has been marked by Following a difficult decade, the economies major political, economic, technological and of the Middle East and Northern Africa are Three aspects should be taken social changes. recovering and are expected to attract sig- into consideration : The existing trends towards unification in the nificant investment. The spirit of enterprise European space and the process of has also significantly improved. Crete can, globalisation of the economy have created a therefore, exploit this new favourable con- - First of all, the islands offer a new competitive context for the Regional text and make a decisive contribution to the “strategic depth of field” not only Economies, generating debate, in particular efforts made by our country to play an im- in the Mediterranean Regions, with respect portant role in this region of South-Eastern to their States, but also to the to the new strategies they should follow. Europe. Union as a whole. This depth is Among the characteristics of this new con- The activities manifested by Cretan compa- reflected in the monitoring of text, especially worthy of note is the gradual nies and their technical chambers in order removal of barriers in the way of access to to institute cooperation with companies in maritime and air spaces which markets for products and capital, the height- Mediterranean third countries, the devel- extend beyond continental Eu- ened interaction between economic policies, opment of cooperation, in the field of the rope. In the case of the outer- and the limitation of the possibilities open Information and Communications Society, to the states to intervene. by the Research and Technology Foundation, most regions, the result is a pro- Local economies are forced to compete to the long experience acquired in terms of jection of Europe towards other attract capital, given that investors are be- post-universityI studies dispensed, in the coming increasingly selective choosing their MAICh, to young people from the South- seas, other oceans and other investments. Eastern Mediterranean countries, and, fi- continents. On the economic In order to compete internationally, regional nally,T the preparation of inter-regional co- plane, this is reflected in the economies need specialised and flexible Ioperation programmes (MEDA INTERREG - structures, and need to reinforce their pro- art. 10 ERDF), have already provided the first monitoring, by the Member ductive base, while an important element signs of the favourable climate which cur- States or by the EU, of large ar- determining their development possibilitiesRrently reigns and of the potential for coop- eas of fisheries or oil exploitation, resides in their current situation with respect eration between Crete, the Mediterranean to the European economies and those of the third countries and the Mediterranean Re- or in major potential in terms of countries on the Southern and EasternK gions of the European Union. fish farming and renewable en- coasts of the Mediterranean. It is this approach which sets aside the de- The enlargement of the Union, not only to velopment policy traced for the 2000-2006 ergies. the East, but also to the South, is a matter period, and which provides for the creation which has significant consequences for the of cooperation axes, from Cyprus to the - A number of islands play a European Mediterranean Regions. Aegean and the Balkans, and from the Up to now, the involvement of the regions of South-Eastern Mediterranean to the rest of defensive role as evidenced by the the South of the EU in European-Mediterra- the European space. existence, on their territory, of nean transactions, in the Balkans, the One of the objectives of the Crete region is first-level military installations North-Sea and the eastern Mediterranean to gear this cooperation towards production, has been severely limited and Southern Eu- the development of top-quality services and (air or naval bases, listening sta- rope has not fully mastered its role as po- promoting links between universities and tions, etc.). The importance of tential intermediary between the EU and centres of excellence, towards tourism, these regions. transport and communications, towards the these infrastructures has fluctu- In this zone, Greece is the only politically, management and protection of the environ- ated in recent decades, but, while socially and economically stable member ment and of the cultural heritage, and to- the end of the Cold War limited state to have the historical connections and wards the development of human resources, the diplomatic potential to play a role in the by intensifying the efforts made to combat the scope of some of them, other process of peace and cooperation. Crete, in the new social exclusion arising from the types of conflict proved their util- particular, can function as an important absence of knowledge in the field of IT. 109 bridgehead between the European Union and Off the coast of Europe

those on external borders”; “pro- TENSIONS IN EST MEDITERRANEAN SEA mote international cooperation” and “develop and consolidate democracy and the rule of law, and respect for human rights and fundamental freedoms” (Title V, Article 2). In this regard, many islands have a clear role to play as external borders of the Union.

On the one hand, these regions, which are often “gateways” to the Union, are often located in extremely vulnerable areas, open to all types of trafficking: drugs, arms, trafficking of human be- © Eurisles ings, money laundering, etc. Any economic, social or political Even without mentioning Turkey, Cyprus or Israel, the greek islands are in the middle of a sea of troubles : Kurd or Albanian refugees, tensions with FYROM (Macedonia), vari- weakening of the most exposed ous conflicts in the Balkans. islands which would render them particularly permeable to these forms of trafficking would inevi- ion’s policy. Development aid, Will the island regions have a tably have repercussions on the the improvement in the living destabilising effect on Europe or entire EU territory. conditions of the populations, will they, on the contrary, “export emergency services for the vic- stability”? The answer to this Moreover, owing to their close tims of armed conflict, the question is closely linked to the proximity to third countries la- spreading of democratic princi- policies which the Union chooses bouring under particularly diffi- ples, or their role as intermedi- to apply to them. One thing is cult political or economic situa- ary, are all fields where they have certain: the question of the role tions, or even the scene of armed a potential role to play. of the island regions within the conflicts, the islands can play an Union is one that calls for a glo- active role in projecting the Un- bal approach, which will integrate the CFSP in the same way as the other policies.

110 WHY A POLICY FOR THE ISLANDS? purposes and goals

«We may be a small island, but we are not a small people.» Edward HEATH (1970)

European policy for the Islands is an essential and justified measure. The European Union must endeavour to re-examine the situation of these Regions, and in particular take their vulnerability Ainto account, as the United Nations have done. A European policy for the Islands must be founded upon principles such as permanence, proportionality, and positive differentiation. Its aims must be at the same time social, economic and environmental.

A necessary and justified approach

he argument most geneity, and the economic per head or unemployment commonly made by and social statistics which rate. While these data are Tthe EU authorities underpin the EU cohesion vital evaluation elements (al- when the islands call for spe- policy do not, at first glan- beit sometimes imperfect in cific policies for them is the ce, make for grouping them the islands) for revealing the great diversity of these ter- in a coherent unit? social and economic bac- ritories, not only in terms of klogs of a region, they do not geography or demography, To answer this question, it allow a satisfactory assess- but also in terms of socio- is necessary to underline the ment of its actual situation economic characteristics. confusion which arises from and of the manner in which the practice which consists Union policies are applied in How can one conceive an “is- in reducing the evaluation of it. lands policy” when the sta- the integration of a territo- tistical indicators often tend ry in the Union to the infor- to demonstrate their hetero- mation provided by its GDP

The need for a re-examination

lthough the island re- to the fact that, with one ex- tions of the island have been gional authorities have, ception, all the island regions covered by Objective 1 becau- Aon several occasions, of the Union have hitherto se their per-capita GDPs were referred to the excessively res- benefited from the Structural lower or much lower than the trictive nature of this ap- Funds one way or another. EU average. This has, con- proach, this criticism has been Moreover, since the 1980’s the tributed to lending a theore- largely hidden to date, owing great majority of the popula- tical, rather than a practical, 111 Off the coast of Europe

character to the debate on the EU15 currently regarded as the degree of accessibility with appropriateness of drawing on “least favoured”. respect to the rest of Europe. criteria others than conventional socio-economic indicators However, other factors highli- Similarly, the objective of eco- because with some notable ght the need to re-examine the nomic competitiveness which exceptions, the latter gave intervention criteria of the fu- constitutes one of the funda- more or less the same results, ture EU cohesion policy, for mental policy ambitions of the at least as concerns Structu- example the need to incorpo- Union need not necessarily be ral subsidies and State Aids. rate the EU’s objectives in associated with productivity terms of transport, competi- and employment indicators. With the prospect of enlarge- tiveness, environment, and the The equation: heightened ment, this practice comes up evolution of the CAP and the competitiveness = heightened against its limits: according to CFP. productivity and full employ- the most recent projections ment unfortunately often does (European Commission, First The aim of the transport po- not apply at regional level. progress report on economic licy is to improve the acces- There are numerous examples and social cohesion, 30/01/ sibility of island, landlocked of companies improving their 02.), in a 27-member EU, only and peripheral regions and to competitiveness by reducing the French Overseas Depart- link them with the central re- their personnel or relocating ments, the Azores, the Ionian gions of the Community (ar- their activities to areas within Islands and the North Aegean ticle 154 of the CET on TEN). or outside the EU where costs Islands will continue to be eli- The realisation of this objec- are lower. gible for Objective 1 on the ba- tive relies partially on a spe- sis of a per-capita GDP lower cific, relatively modest, bud- For a territorial approach to than 75% of the EU average get allocated to the Trans-Eu- the concept of competitive- (although an enlargement to ropean Networks, most of ness to be equitable, it must 25 would have a less drastic which goes to a very limited take account of factors such effects, it would still exclude list of major projects, regar- as the nature of the natural Sardinia, South Aegean, Cor- ded as having priority. Most and human resources availa- sica, the Canary Islands and of the funds are provided by ble in a region, the size of the all the Scottish archipelagos the ERDF or the Cohesion local market and the condi- which currently benefit either Fund, which provide joint fun- tions of access to outside mar- from Objective 1, or from ding for maritime, road and air kets. Only such a refined ap- “phasing out”). Unless the le- infrastructures in eligible re- proach will be able to gene- gislation is changed, this will gions or countries. rate real equality of opportu- also affect the state regional nities, anticipate crises and aid systems, whose impact is As enlargement implies ending effectively exploit local deve- greater in the islands, becau- the eligibility of a lot of these lopment potential. se once again the most subs- territories to the Structural tantial exemptions are based Funds, Article 154 of the Trea- In recent years, EU environ- on GDP per capita. ty will be deprived of the ne- ment policy (referred to in Tit- cessary resources and, there- le XIX of the Treaty) has ta- As such a statistical evolution fore, of meaning. If the Com- ken on increasing importan- would be based, not on ob- munity is to have the finance, owing both to the interna- jective socio-economic objec- cial resources to intervene in tional situation (Agenda 21, tives but on a mere mathema- the island, landlocked and pe- Kyoto accords, etc.) and pres- tical effect (a drop of at least ripheral regions, other than sures within the Community 13% in average EU GDP per those that will remain eligible (consumers, users…). This capita owing to the lesser de- for Objective 1 post 2006, new trend affects a broad swathe velopment of the new Mem- instruments must be imple- of the life of the citizens: wa- ber States), a re-examination mented. In the context of a ter quality, waste disposal, of the evaluation criteria is ne- European transport policy, it food health, condition of ma- cessary. Moreover, this con- is legitimate that these be nufacturing of equipment, use cerns, not only the islands but based on criteria such as the of energy, transport safety etc. 112 also most of the regions of level of the infrastructures and There are many indications Why a policy for the islands of Europe that these environmental the fallout in those regions forces major reductions in constraints will take on hei- where agriculture still plays a Community fleets? ghtened importance and have major role in the local econo- increasing implications on my, but where farms are una- The impacts of the CAP and both the legislative and eco- ble to compete on the world of the CFP need to be measu- nomic plane. market? Can direct aid to far- red and anticipated as a func- mers offset the reduction or tion of the characteristics pro- Article 174.2 of the Treaty disappearance of the produc- per to the various territories specifies that Community en- tion subsidies? What will of the Union. vironmental policy aims at a happen to regions highly de- high level of protection “taking pendant on fisheries if the into account the diversity of continuous depletion of stocks situations in the various regions of the Community”. The need for a territorial approach IN JAPAN ALSO to the environmental policy Around the four very large islands of Ja- the Okinawa Prefecture. pan (Honshu, Hokkaido, Kyushu and Shiko- Isolation, transport accessibility and po- entails the need to take ac- ku), which are regarded by the Japanese pulation size are the main criteria which count of the parameters spe- as «mainlands», there are close to 5,000 decide if an island is covered by such specific to each of its territories, islands, of which only 432 are inhabited, cific legislation, or the intensity with which totalling 1.5 million people (1.2% of the it is being implemented. The main purpo- notably their wealth and their nation’s population). Some of these islan- se of these Acts is to enforce a better so- fragility. ds, such as those of the «Inland Sea», are cial and economic cohesion with the rest comparatively close to the mainland, whi- of Japan, mostly through subsidies and tax le others are scattered in the Pacific or the incentives. Finally, the Common Agricul- East China Sea. While their diversity is great State subsidies ranging from 50 to 95% are tural Policy is set to undergo (their climate ranges for the sub-arctic to granted to local authorities to enable them the sub-tropical), they all share socio-eco- to build infrastructures such as roads, har- major changes over the co- nomic difficulties. bours, schools, etc., as well as to develop ming years. Although we can- The Japanese authorities started to address action in fields such as training, education, the issue of island development a few years information technology, culture … The not at present predict the out- after the war in 1953, with the adoption of outermost islands receive extra funding to come of the WTO negotiations a first «Remote Islands Development Act « compensate their remoteness, and may on agricultural trade, the do- (Act 53/72). Initially conceived to have a assist SMEs through subsidised loans. 10-year duration, this act, which covers 277 The fiscal incentives affect the various forms minant trend is towards the islands, has since regularly reconvened, and of direct taxation, and range from special gradual reduction of produc- was modified in 1994. Other laws have also rates to tax exemption for a number of years tion subsidies, the opening of been subsequently enacted to deal with on certain activities. A Free Trade Zone has some 50 islands belonging to the remoter also been set up in the Okinawa Islands. borders to third country pro- island groups, such as the Amani Islands, « What status for europe’s islands? », Ed. ducts, and the elimination of the Bonin Islands and the small islands of de l’Harmattan, Paris, 2000 ; pp 380 et ss. export duties. What will be

Vulnerability, a common characteristic of the isalnds

owever, the extent to give a more accurate reflection from the mainland’s, although which the territorial im- of the capacity or otherwise of with varying degrees from one Hpact of EU policies has the regions to benefit from EU case to another. been taken into account can- policies are necessary. These not be measured simply by include degree of accessibility, In terms of accessibility, we comparing their unemployment extent of the natural or human have seen that these regions are rates and GDP per head with resources available, size of the in an unequal or unfavourable the EU average, although the- local market, environmental situation in terms of choice of se criteria are – and should re- vulnerability, etc. means of transport, relative tra- main – fundamental criteria for vel time, and economy of ser- determining the strategic prio- In this perspective, the elements vices and prices. rities of the economic and so- compiled during this study cial cohesion policy. New eva- show that the situation of the 113 luation parameters designed to islands is obviously different Off the coast of Europe

For reasons both economic and As regards the environment, the can is justified in speaking of political, the potential represen- very characteristics of the is- a “separate dimension”. ted by their geographic posi- lands – including isolation and tion (whether at the heart of the the resulting endemisms, the This vulnerability of the islan- Community’s maritime spaces, size of the sea-land interface, ds is not reflected simultaneous- at their confines or even, for the the variety or uniqueness of ly everywhere by clearly per- outermost regions, close to third their heritage, etc. – mean that ceptible socio-economic im- countries on other continents). they are extremely sensitive to pacts via the normal statistics. any external threat or any form Although the vast majority of As regards competitiveness, of change. Apart from a high island populations in EU15 are apart from the effects induced degree of exposure to natural distinguished by conditions of by the previous point, they suf- or industrial risks (consequen- employment and productivity fer, to varying degrees, from the ces of the greenhouse effect, much lower than the EU ave- consequences of the limited na- miscellaneous maritime pollu- rage (and among the most un- ture of their natural or human tion, seismic dangers, etc.), they favourable in the case of islands resources, and from the small are, owing to the limits of their such as Martinique, Guadelou- size or fragmentation of their space and population, more ra- pe, the Azores or certain Greek local market. Costs tend to be pidly and more radically affec- archipelagos), the rule is not higher, services less available, ted by the impacts of the eco- absolute. The oft-quoted exam- and specialised manpower nomic and social evolutions. ple of the Balearic Islands or scarcer. Island economies rely Tourism, already mentioned, is Northern European islands il- on a small number of sectors, a well-known example of this. lustrates that there is no auto- or even on a single activity. matic correlation between being Although, taken individually, an island and being economi- The importance of fisheries or each of these factors is by no cally or socially amongst the agriculture in numerous islan- means specific to the islands, most disadvantaged. ds makes these territories sen- taken together, their cumulati- sitive to the foreseeable chan- ve effect and their interaction It seems more realistic to say ges in the field of the CAP or mean that the islands are dis- that the situation of vulnera- CFP. Their quasi-general de- tinct territories, the common de- bility which characterises the pendence on tourism exposes nominator of which is vulne- islands tends to make it more them to the normal ups and rability. difficult for the more wealthy downs of this industry: risk of islands to develop, and to exa- sudden recession due to unfo- Vulnerability affects all these re- cerbate the economic and so- reseen factors such as interna- gions in a permanent but dis- cial difficulties of the others. tional tensions; or conversely, parate manner. It is more ac- Faced with a similar context, an during phases of expansion, centuated the smaller the islan- established population on the undue pressure on land and ds (the demographic decline of continent will enjoy greater property and on the environ- many minor islands is a case prosperity or at least suffer ment... The predominant role in point), when they are iso- fewer difficulties. which the public sector tends lated or where they suffer from to play in the islands makes difficult climatic conditions. It It would be inaccurate, not to them extremely fragile with res- is particularly aggravated in the say Manichean, to claim that pect to any policy designed to case of archipelagos where frag- there exists a sort of “fatality” open public services to compe- mentation multiplies the cons- which condemns the islands to tition, or to reduce public ser- traints, or islands which simul- the role of second-class terri- vice numbers to meet budge- taneously suffer from difficul- tories and their inhabitants to tary stability requirements. Fi- ties linked with a mountain con- endemic under-development. In nally, irrespective of the rele- figuration or characterised by many cases, the European is- vant sector of activity, the a very low population density. lands boast several assets or weakness, or even absence, of There is no need to go back over potentials capable of promoting physical and economic hinter- the effects of ultraperipherali- development: their proximity to lands means that alternatives ty, the characteristics and im- oil or fish resources, their ca- are rare and any crisis will have pacts of which are such that one pacity to produce renewable 114 exacerbated repercussions. energies, their attractiveness to Why a policy for the islands of Europe

VULNERABILITY F OR UNITED NA TIONS The question of the vulnerability of cer- as a % of GDP); Weak capacities. Weak capacities, in tain territories has been a subject for 6. Vulnerability to natural disasters both the private and public sectors, are study and at United Nations level since (costs of cyclones or volcanic eruptions) a major problem for most developing as far back as the late 80’s. This is partly 7. Vulnerability to anthropogenic acti- countries, especially for the small coun- due to the fact that the UN includes a vity (waste managements, tourism, etc.) tries. The situation is even more serious large number of small states, many of 8. The consequences of the greenhouse in countries where internal distances are which are islands or archipelagos (rou- effect (cost of protecting the coast great and the population dispersed, such ghly a quarter of the 200 plus members). against rising water levels, etc.); as the islands of the Pacific. As regards This issue has also concerned various The specific problems of the small sta- the public sector, small states are fa- other international structures such as tes, especially the SIS, are clearly illus- ced with diseconomies of scale in pro- the Commonwealth Secretariat, the In- trated in a number of fields. viding public services or exercising go- ternational Monetary Fund, and the UNC- Remoteness and isolation. Most of the vernmental functions, which explains TAD. In parallel with the UN, these or- small states are isolated countries, and why the public sector is generally much ganisations have studied the situation some of them are highly dispersed ar- bigger in these countries than in other of these small states, in particular that chipelagos, others landlocked, and others developing countries. When they try to of the Small Islands Developing States located far from the major trading cen- overcome the obstacles and seize the op- (SIDS). These studies are designed to tres. High transport cost means that a portunities of globalisation, the small evaluate the intensity of their specific lot of SIS, such as those in the Pacific, states also discover that they lack suf- problems in a more scientific manner find it difficult to export to offset the ficient institutional capacities to parti- by means of “complex vulnerability in- restricted nature of their domestic mar- cipate fully in international financial and dicators”1 . ket. The small size of the domestic trade negotiations, which can have pro- In general, all these organizations agree market, combined with remoteness from found repercussions for their economy. that small states, especially Small Is- outside markets, limits the effect of com- As pointed out above, lack of diversifi- land States (SIS), share a number of cha- petition, and its ability to promote ef- cation and lack of competition at na- racteristics which pose specific deve- ficiency and innovation. tional level can hinder the development lopment problems. Briefly, they are Openness. While a large degree of open- of the private sector. particularly vulnerable to outside events, ness to the rest of the world is an ad- The specific vulnerability of the small in particular natural catastrophes, which vantage, for small economies it means states, and the exacerbating factor of severely destabilise national income; that they are exposed to events that occur insularity, were illustrated in a study car- many of them suffer from numerous on world markets and to changes in the ried out by the Commonwealth Secre- uncertainties and economic difficulties world trading system, all elements over tariat in 1988. owing to trends in the international trade which they have little or no influence. Based on a sample of 111 developing system; and they are handicapped by Small states also tend to place higher countries (34 small countries and 77 lack of capacities, in both the public and taxes on imports to obtain much nee- large countries) for which applicable data private sectors. ded income, which leads to difficulties were available, this study concluded This concept of vulnerability is interes- when they are forced to reduce tariffs. that3 : ting in so far as it is not limited to con- Vulnerability to natural disasters and en- · Of the 28 most vulnerable countries, ventional socio-economic indicators vironmental change 26 are small states, and 18 Island Sta- (such as GDP), but includes other as- Most small states are located in regions tes. pects, notably the environmental dimen- prone to natural disasters such as hur- · Of the 28 countries of high to avera- sion. Some States are therefore regar- ricanes, cyclones, drought and volcanic ge vulnerability, 6 are small states, and ded as “vulnerable” despite having a high eruptions, which generally affect the en- 6 Island States. GDP. tire population and economy. Some are · Of the 27 countries of average to low The complex vulnerability indices on threatened by planet-wide environmental vulnerability, only 2 are small states. which researchers from Malta to Mau- change. As the unfavourable events are · All 28 least vulnerable countries are ritius to the Pacific2 , have been working, generally felt by the entire population, large countries. are based on indicators such as: it is not possible to spread the risk at One might assume that the application 1. Trade openness (exports plus imports national level. of such an analysis instrument to the as a percentage of GDP); Limited diversification. Owing to the European islands would reveal similar 2. Export concentration; small size of their domestic market, small conclusions. Unfortunately, although it 3. Peripherality (transport costs ex- states suffer from a lack of diversity in is possible to perform this type of stu- pressed as a percentage of external tra- their production and exports. When a dy in the case of States (especially those de); dominant activity declines, it is gene- which have a statistical tool of sufficient 4. Energy dependency (energy imports rally replaced by another dominant ac- quality), it is impossible in the case of expressed as a percentage of energy tivity. This explains why these coun- regional authorities which lack certain consumed); tries are even more vulnerable to out- data, such as those in relation to ex- 5. Financial dependency (financial debt side developments. ternal trade.

1 The pioneers of these studies are: François Doumenge : “La viabilité des Etats insulaires” UNCTAD 1989 Lino Briguglio: “Study on the construction of an Index ranking countries according to their economic vulnerability” UNCTAD 1992 2 UN report on the vulnerability index of Small Island States: http://www.unep.ch/islands/d98-vul.htm ; Lino Brigulio : Small Island Developing States and their Economic Vulnerabilities : http://www.geic.or.jp/docs/lino.html ; 3 Jonathan Atkins, Sonia Mazzi, Christopher D Easter ,« A Commonwealth Vulnerability Index for Developing Countries », July 2000, Stylus Publishing, LLC. tourists, their geo-strategic po- The problem facing these re- would be necessary to succes- sition, the proximity of shipping gions is that, in order to seize sfully undertake a similar un- lanes, etc. these opportunities, they will dertaking on the mainland. probably have to work harder During times of recession, on or take much greater risks than the other hand, they would be 115 Off the coast of Europe

among the first affected owing tutes a response to objective na- What should such a policy en- to the poorer profitability of tural constraints, it is legitimate tail? their industries. that it be graduated according to the intensity of these cons- A European islands policy A European islands policy traints. For the same reason, should be based on three ma- should therefore consist of a set it should constitute an addition jor principles and on several of measures designed to mini- to, rather than a replacement goals. mise their vulnerability and to for, the measures traditionally help create a real “equality of implemented as part of the eco- opportunities” between these nomic and social cohesion po- territories and the rest of the licy. Union. As this policy consti-

Principles of an islands policy

he first is the principle positive differentiation is in The aim is, not to come up of “permanence” , be- contrast to discrimination with measures applied syste- Tcause the geographic which, according to the defi- matically and uniformly to constraints which affect the- nition given by the European every territory isolated by the se territories are of a durable Court of Justice: “… consists sea, but, first and foremost, to nature – with the exception of in treating similar situations create a framework which the few islands very close to differently, and different situa- would make it possible to take the mainland, which could tions similarly” (Finding of the account of these differences. possibly be attached via a Court of First Instance -fourth Based sometimes on legal pro- fixed connection. This prin- chamber-, 26 October 1993. visions, sometimes on finan- ciple of permanence is in con- Cases T-6/92 et T-52/92). cial resources, sometimes on trast to the “catch-up” con- modes of governance, such a cept which has heretofore ser- Finally, the third principle is permanent framework would ved as a basis for EU policies that of “proportionality”, be- make it possible to design so- for dealing with economic and cause island situations are lutions adapted to each of the- social problems. geographically and demogra- se regions in proportion to the phically synonyms of diversity. nature and intensity of the The second principle is that The implementation of posi- problems encountered. In of “positive differentiation” . tive differentiation with regard some cases, this will mean This consists in regarding the to islands is only justified if measures common to all the measures granted to territo- it is based on the realities of islands or to certain groups of ries to enable them offset per- their geographic, demogra- islands, and in others provi- manent structural constraints phic, and environmental cha- sions specific to a given situa- such as insularity, not as un- racteristics, and on the cons- tion, not suitable for general fair advantages but as measu- traints that these entail. These application. res designed to bring about realities necessarily differ from real parity. In this respect, island to island.

The principle of “positive differentiation” with regard to the small island states was referred to in 1998 by the representative of the ACP States. Their Ministers of Commerce acknowledged the specificities of the small island states. In underlining the vulnerability and fragility of their economies, they asked that specific attention be paid to them in the framework of the WTO. REPORT OF THE MEETING OF THE ACP MINISTERS FOR COMMERCE, MAISON ACP, BRUSSELS, 15 MAY 1998; ACP/61/026/98 [FINAL] Brussels, 16 May 1998 116 Why a policy for the islands of Europe

Goals of an islands policy

he three types of goal for health. In the field of transport, in the most isolated and least an islands policy are of a energy and telecommunica- populated areas. Tsocial, economic and en- tions, the intervention of the vironmental order. These goals Structural Funds should be The required resources are in- are intimately intertwined. strengthened by the effective terventionist measures of a so- application of Article 154 of the cial nature, such as: a) Social Goals Treaty in relation to the trans- European networks, with ap- - Specific tax provisions (redu- The “social goals” are to ena- propriate financial resources. ced rates of VAT or excise); ble the inhabitants of these regions who so wish to “be born, ·Islanders should be able to - Direct aid for certain com- live and work at home”. gain access to consumer mercial activities or service pro- goods or services at socially viders; ·Islanders should have a de- acceptable prices . gree of choice and a quality - Special fares for residents on of infrastructures and servi- In an island, the concept of pri- sea or air transport. ces as close as possible to ce parity should be considered those generally available on in parallel to parity of choice in The intensity of some of these the mainland, and services of a context where choices are ne- measures may be proportional optimum quality. cessarily more limited. to the isolation of the communities concerned and also in- This concerns a multitude of For example, in the field of versely proportional to the size sectors, especially education, transport, islanders do not have of their market. health, transport and telecom- the option of road or rail to tra- munications. Parity with the vel to others parts of the Union. Extensive use of the provisions mainland cannot be defined in In fact, in most outlying re- of articles 73 (public services in a purely statistical manner; it gions, air transport is the only terms of transport), 86.2 (on must be assessed in qualitative possibility offered to passen- undertakings entrusted with the terms. When infrastructures or gers. Freedom of movement of operation of services of gene- services are sophisticated, the persons and goods is therefore ral economic interest) and 87.2 smaller the population of an relative in these regions, and (in relation to aid having a so- island, the more disproportio- the principles of competition cial character, granted to indi- nate their size and cost will be are skewed. The smaller an is- vidual consumers) of the CET with respect to the number of land, the more it is isolated and could, in certain cases, serve as inhabitants. There is no uni- the more limited the fields of a basis for such provisions. form response to this problem, activity or the range of choices. apart from the application of a This frequently leads to a hi- b) Economic Goals principle: the need to aim for gher cost of living, which de- optimal quality services so as tracts from the attractiveness of The economic goals of a Euro- to at least maintain the popu- these territories. pean islands policy should con- lation. tribute to integrating the islan- This situation can, in certain ds in the Single Market while The required resources are tho- cases, be remedied by measu- taking account of their social se of the Structural Funds, tar- res designed to reduce consu- and environmental fragility. geted in particular on the fields mer prices, or encourage cer- The principles of the free mar- of transport (fixed or mobile in- tain service providers to set up ket must therefore be tempered frastructures), waste manage- by those of economic, social ment, water, education, and and territorial cohesion. 117 Off the coast of Europe

The integration of island eco- liable to be economically via- - Legal instruments designed to nomies in the Single Market re- ble owing to their very loca- manage and monitor endoge- quires equitable conditions. tion on, or close to, an island. nous resources, and allow for their sustainable exploitation - In general, a reduction in the This can refer to the exploita- (especially as regards fisheries). additional transport costs via tion of a natural potential (mi- direct aid to the companies. ning, oil or fish resources), of 2 - Economic activities not the natural or cultural attrac- specific to an island region, - On a case-by-case basis, and tions of the island (tourism), of but which are less vulnera- depending on the situations, the know-how of the inhabi- ble to the constraints of in- provisions designed to counter- tants (food, craftwork, produc- sularity, in particular the small balance the restricted nature of tions, etc.), or even opportuni- size of the local market (e.g. the local market, and the limi- ties offered by geographic po- teleworking). These activities ted nature of the natural or hu- sitioning or climatic conditions have often attained a sufficient man resources. These include («feedering» for shipping, ex- level of development to be in- incentives and support measu- ploitation of renewable ener- tegrated in the market, althou- res for the private sector, mo- gies, etc.). gh profitability levels are not as dulated on the basis of the na- high as on the mainland. ture of the activities, their pro- These activities require: fitability, and their social and These activities require: environmental impact. - Incentives for the initial investments, especially where - Measures designed to promo- More specifically, a distinction large sums are required and te their development and redu- can be made between three ma- where their profitability is gua- ce their fragility so that they jor categories: ranteed in the medium to long can face up to ups and downs term only. Appropriate instru- in the market. Preference 1 - Economic activities linked ments include structural aid or should be given to the use of tax to endogenous resources and tax incentives for investment. provisions.

THE GROWTH POTENTIAL OF FIRMS Between 1990 and 1995, there were 3,156 of firms with between 20 and 49 em- communication equipment, manufactu- enterprises established permanently in ployees accounted for 20% of new jobs, re of office machinery and computer equi- Sardinia employing 30,942 people in ma- compared with 1.3% for the category of pment), although their contribution in nufacturing industries and production firms with between 200 and 499 em- terms of employment is lower than that services. 914 enterprises employing ployees). The large firms did not grow. of the first category. 12,085 people (i.e. 29% of enterprises Even among firms showing sustainable SMEs can only grow if they succeed in and 39% of employees) experienced or strong growth, it is the smallest ones obtaining comparative advantages over growth, while 230 experienced sustained that have proved to be the most dyna- other firms, enabling them to overcome or strong growth, this category repre- mic, recruiting 63.3% of the total num- the handicaps they start out with (dise- senting only 25% of firms, but 50% of ber of new employees. conomies of scale and greater uncertainty employees. An analysis by sector is less unequivo- in view of their dependence on the mar- The growth potential of firms by size can cal. New employment is concentrated es- Aket). In Italy’s experience, SMEs have be determined by calculating first of all sentially in a few sectors, those which become effective competitors on the in- the overall increase (or decrease) in the have the greatest weight in the localN eco- ternational markets by networking to number of employees in the enterprises nomy. The sector “other professional and create external economies. For the time that are firmly established on the island. managerial activities” (whichG encompas- being, the figures demonstrate that even Firms with less than 20 employees (des- ses not only technicalE and legal profes- in Sardinia, these networking capacities/ cribed as “very small”) were the only ones sions, but also activities such as secu- possibilities are important: the most which grew, while average sized firms rity and cleaning services) is the largest, dynamic firms are those that collabora- (20-499 employees) and large firms (500 accounting forD 30.4% of new employment te most – with other firms and with the or more employees) lost about 2,900 em- in growing firms and 36% of new em- institutions. The role of the public autho- ployees. ployeesR in firms with sustained or high rities is decisive in this context, since An analysis of firms experiencing growth growth. The other important sectors they condition the overall environment on the basis of their size highlights once Aemploying 77% of new recruits are no- in which the firms operate, for example again the role of firms with betweenS 1 tably food and drinks, manufacture and through the administration of education and 19 employees; these are responsi- machining of metal products, manufac- and justice, and they can have an im- ble for 67% of new jobs. A total increase ture and fashioning of non-metalliferous pact on business creation and growth, of 3,250 in staff numbers can be obser- minerals, and the timber industry and either by means of direct policies (sub- ved in this category of firms, concentrated its by-products. Alongside these, other sidies and grants), or indirectly by offe- mainly in firms with between 6 and 19 sectors have demonstrated a certain dy- ring concrete services and infrastructu- employees, which have recruited 1,541 namism (manufacture of chemical pro- re. new staff (32% of new jobs). The role of ducts and synthetic fibres, manufacture Other statistical data is available on the 118 medium sized enterprises gradually les- of electric and electronic machinery and web site www.ossind.it sens as they grow in size (the category apparatus, manufacture of televisions and Why a policy for the islands of Europe

- Training actions designed to It is especially important in this and even sometimes planetary. adapt island manpower and, regard that certain provisions of For example: especially, to provide it with the the Treaty be properly imple- qualifications necessary to sei- mented, in particular: - The preservation of the lin- ze opportunities for develop- guistic heritage requires the im- ment. An example in point is - Article 16 and Article 86, in plementation of educational IT which requires, not only ap- relation to services of general policies drawn up on both lo- propriate infrastructures or fa- economic interest, cal and national level. cilities, but also knowledge of IT and linguistics on the part of - Article 33(2), which authori- - Protecting the coasts against the population. ses the Common Agricultural maritime pollution requires Policy to adopt “special surveillance of navigation in 3 - Activities which are not methods” designed to take ac- national and international wa- profitable on the sole basis of count of “ … structural and ters, and restrictive measures market economy criteria, but natural disparities between the (such as passage in the straits) which are nevertheless ne- various agricultural regions”. which are discussed, not only cessary, if not indispensable, between the neighbouring Sta- in the island . c) Environmental Goals tes but also on a global level (in the framework of the IMO). These are activities which The “environmental goals” of a would not exist on the sole ba- European islands policy consist - Management of fish resour- sis of market criteria, but which in helping to preserve the envi- ces involves, not only the re- provide a pleasant living environment of these regions, in gions, the Member States, the ronment capable of maintai- harmony with the requirements Community, but also third ning or attracting populations of their economic and social de- countries (for example in the (for example food shops in the velopment. The “environment” Caribbean) or international bo- minor islands, technical servi- includes the natural resources, dies (such as the North Atlan- ces or repairs, certain comfort- landscapes and ecosystems of tic fisheries). related or leisure services). these regions, together with These also include activities their cultural heritage in its - All the policies linked with which, while not profitable, di- most diverse manifestations: the observation of the green- rectly or indirectly make a vital architecture, historic monu- house effect and the limitation contribution to the survival of ments, linguistic heritage, song, of its consequences must be a sector or branch of activity dance, literature, arts, dealt with at all the previous (e.g. an abattoir for small bree- craftwork, etc. levels, but must also be dealt ders, a creamery for dairy pro- with at world level, in the fra- ducers, etc.). They can also · The preservation of the en- mework of the United Nations play a crucial role in the pre- vironmental heritage should and of the various conferences servation of the environment not be a static or passive ap- on the environment. (e.g. agricultural activities de- proach, tending to turn the is- signed to limit soil erosion or lands into “Indian reserva- · The environmental goals forest fire risks). tions”. On the contrary, it are, to a very large extent, a should constitute an active and question of governance . The These activities require: dynamic approach designed, in island communities should be particular, to promote the sus- consulted, and if possible, as- - Financial support on the part tainable development necessa- sociated, with the environmen- of the public authorities. This ry to keep resident populations tal decisions concerning them. can entail more than invest- at home, and to guarantee them ment aid, or tax on profits a good-quality living environ- The European Union should (measure whose interest is dis- ment. take account of the special vul- putable in an unprofitable field) nerability of its islands when and can, if necessary, take the · The environmental goals re- environmental questions are form of operating aid such as quire interventions at widely discussed on the international reduced social charges, or sub- different levels , not only local, stage (for example for fisheries 119 sidies to pay for deficits. but also national, European, accords with third countries, or Off the coast of Europe

in the field of the fight against community, on a par with the the cost of disposing of waste the greenhouse effect). fishermen, and should be invol- in the islands, or the “freezing” ved in the management sys- of large surface areas owing to In the field of fisheries, for tems. They should also be in- their being classified as protec- example, it is important to sup- volved in negotiations with ted areas. port the development of local third countries bordering their management structures for fisheries zone. The impact on the islands of the fisheries zones around the is- economic or financial obliga- lands and to set up more rigo- ·The environmental goals tions imposed by Community rous monitoring of the fisheries also concern financial resour- environmental legislation effort, where necessary in or- ces, because compliance with should be systematically eva- der to guarantee the survival of standards, the implementation luated, the ensuing additional island fleets and communities. of protection policies, or the de- costs identified, and direct or To this end, the local and re- velopment of these environ- indirect offsetting measures ta- gional authorities should be mental assets are not without ken at national or Community recognised as fully-fledged par- repercussions on the economic level. tners, representing the entire plane. Examples in point are

120 THE COMMUNITY INTERVENTION Redesigning mechanisms

«I think that thought and action should go together in a dialectic way, but I think that in 3 or 4 years time we shall have the elements which will enable us to define a general framework for the islands» Jacques DELORS in Corsica (1989)

new deal must be struck between the European Union and its Islands. The fact that issues such as the future of the Community’s Institutions, the improvement of its governance, or the orienta- Ations of its cohesion policy are presently under consideration offers such an opportunity. A rewriting of Article 158 of the Treaty - with the inclusion of an explicit reference to the principle of territorial cohesion -, a differentiation of Islands in the statistical nomenclature, a continuing solidarity effort from the Structural policies, a reassessment of the State Aids regime, and, last but not least, a new practice of governance, based upon consultation, co-ordination and innovation are the main instruments of such an evolution.

A new deal between the EU and its islands

hile the task of sol- one promote a free-market As regards the legal mecha- ving the problems of economy in a geographic area nisms, the European Council Wthe islands cannot as vast as the Union while of Laeken decided, in Decem- be made to rely on Commu- taking account of the dispari- ber 2001, to convene a Con- nity intervention alone, rare ties of its territories? How can vention with a view to prepar- are the field which are not, one reconcile the need to har- ing a revision of the Treaties. directly or indirectly, affected monise the rules governing the This Convention will carry out by them. Whether this is operation of a community its work during 2002 and owing to their imperative na- soon to have a population of 2003, and this work will be ture in certain cases, to their 500 million with the idiosyn- submitted to the Inter-Govern- nature as incentives in others, cratic demands of compara- mental Conference to be held the Union’s policies play a tively marginal regions which in 2004. vital role in all aspects of the constantly insist on brandish- life of its citizens. ing their particularities? As regards the financial mechanisms, the second Re- The manner in which they are This means that, apart from port on Economic and Social designed and implemented, the occasional one-off de- Cohesion, published at the therefore, is a matter of cru- mand, the main need is for beginning of 2001, launched cial importance for these re- mechanisms designed to take a wide-ranging debate on the gions. account of these differences. future of the cohesion instruments in the context of en- However, the situation of the However, these mechanisms – largement. In an interesting island regions – not to men- which can be of a legal, finan- departure, the second report tion that of the outermost re- cial or political order - are dedicated a chapter to the gions – brings together all that currently subject to re-exami- problem of territorial cohesion is extreme in the paradoxes nation and may be modified. and acknowledged the exist- and contradictions of Euro- ence of “areas with specific pean construction. How can geographical features”, includ- 121 Off the coast of Europe

ing, in particular, the islands. islation with a strong territo- intervention mechanisms. The upcoming third report will rial impact and called for How can these evolve to al- lay down the bases on which greater coordination of Union low Europe to take account of the structural policies for the policies. It suggested the im- its islands in a manner period 2007-2013 will be plementation, from 2002 of adapted to their realities? negotiated. experimental actions in terms of governance in the form of We shall submit hereby a As regards the political mecha- “tripartite objective contracts” number of proposals: clarifi- nisms, the European Commis- associating the regional, na- cation of article 158, differ- sion adopted in July 2001 a tional, and European authori- entiation of islands in the sta- “White Paper on European ties. tistical nomenclature, main- Governance” which raised the taining the solidarity effort of problem of the “democratic There is therefore a broad the structural policies, reshap- deficit of the Union”. The range of opportunities liable ing of the State aids regime, White Paper acknowledged to lead, during the course of and new forms of governance that there should be greater the coming years, to profound resting upon consultation, flexibility in implementing leg- changes in the Community coordination and innovation.

The need for EU law to evolve

he main legal bases this article be instituted and Were this aid to be reduced or which “generically” (As that the proposals submitted eliminated as a result of en- Topposed to the provi- by these regions will be dealt largement, the result would be sions applying individually to with expeditiously. to deprive Article 154 of its certain islands, which are substance in those regions specified in the Accession Trea- · Article 154 which would cease to be eligi- ties of certain Member States.) ble to these funds. authorise specific provision for Article 154, dedicated to the the island regions in Commu- Trans-European Networks, The ability to attain the objec- nity primary law are Articles contains an explicit reference tives laid down by Article 154 154 and 158, and Declaration to the need to link the island also depends on political will 30. In the case of the outer- regions with the central regions and the implementation of the most regions, the correspond- of the Community. In a practi- necessary resources; it does ing article is Article 299.2. cal consequence, EU legislation not require an overhaul of the declared the sea and air trans- Treaty. · Article 299.2 port infrastructures located in the islands to be eligible under · Article 158 and Declaration Article 299.2 concerns the out- the terms of the measures en- 30 ermost regions only. Its scope visaged for the Trans-European is broader than the framework Transport Network. The situation is much more of the islands (since it includes complex with regard to Article Guyane). We will therefore not The fundamental question re- 158 of the Treaty because the go into it here. Let us simply sides in the existence of finan- current wording of this Article note that the possibilities it of- cial resources. The major pri- is imprecise and ambiguous, fers are extensive and open up ority projects, generally located and its terms are even contra- very broad possibilities, pro- on the European mainland, are dictory depending on the lan- vided that it is implemented. financed via budgetary enve- guages, some referring to “the As its use is, basically, a ques- lopes reserved for the TENs. least-favoured regions and the tion of political determination, Island infrastructures are gen- islands” others to the “least- we can only hope that a prac- erally funded via the Structural favoured islands or regions”. 122 tice of making extensive use of Funds and the Cohesion Fund. This problem, which has been Redesigning the community intervention mechanisms generally recognised by all the of the reference to “least fa- which would open the way to European Institutions, is, voured regions or islands”. taking account of the accumu- moreover, set to worsen in This would result in an obliga- lation of constraints which coming years because the con- tion to take account of perma- characterise certain island re- cept of “least-favoured region” nent structural handicaps in is set to change with enlarge- the same way as differences in DRAFT AR TICLE 158, ment. the level of development, and AS ENLARGED AND AMENDED: would enshrine the possibility What will happen to those is- for the islands to benefit from In order to promote its overall harmoni- lands which will cease to be specific measures in EU law. ous development, the Community shall develop and pursue its actions leading to eligible after 2006 for any of the strengthening of its economic, and the Structural Fund objective? · The second, more ambi- social and territorial cohesion. Will they cease to be “least-fa- tious, solution would consist In particular, the Community shall aim at voured” as if the constraints of in a more radical overhaul of reducing disparities between the levels of development of the various regions and their insularity had been set- Article 158 which would be the backwardness of the least favoured tled once and for all? In such reflected in three additions: regions or islands, including rural areas. an eventuality, will the field of Similarly, it shall take account of the application of the reference to - The integration of territorial durable structural handicaps, such as the case of the islands in Arti- island status, isolation due to rough cohesion among the objectives terrain, or demographic constraints, cle 158 have any meaning? of EU policies, alongside eco- which seriously affect some of its terri- nomic and social cohesion. tories. Faced with such uncertainties, To integrate them fully into the internal it is essential to clarify Article - The inclusion of a general market on fair conditions, it shall implement specific measures proportion- 158 in light of the principles reference to the territories of al to the intensity of the constraints laid down in Declaration 30 the Union suffering from dura- suffered. and reiterated by the Member ble constraints, although this States at the Nice Summit in definition should make explicit gions which suffer from prob- March 2001. mention of the islands, the very lems of isolation due to rough low population density areas terrain or desertification, in To achieve such a clarification, (<12.5 inhabitants/km²) and addition to their insularity. there are two possible solu- those clearly suffering from tions. isolation due to rough terrain. Finally, it should be specified that these proposals should · The first would consist in - The inclusion of a reference not affect, but should, on the integrating Declaration 30 on to the adoption of “measures contrary, strengthen, the scope the islands in the text of Ar- proportional to the intensity of of Article 299-2 in relation to ticle 158 of the Treaty instead the constraints suffered”, the outermost regions.

Differentiating the islands in the statistical nomenclature

n order for the islands to There is a debate at present We will argue that the essen- be able to benefit from spe- as to whether or not, in the tial point of the debate is not Icific policies, it is essential, context of a Union with 500 whether an island regional first and foremost, that their million inhabitants, most of authority is classified as NUTS situation be subject to assess- the islands constitute units I, II or III; the important point ment and monitoring. For this which are too small to be dis- is that, irrespective of crite- to take place they must be dif- tinguished at NUTS II level, on ria of size, it is essential that ferentiated on the statistical the basis of which the Com- it be regarded as a distinct plane and, if necessary or if munity cohesion policy has space in EU statistics and, possible, appropriate indica- hitherto been defined. especially, in the EU policies tors should be used. 123 Off the coast of Europe

drawn up on the basis of these cal territorial units”, irre- If an island region is not large statistics. spective of their classifica- enough to constitute the sta- tion in the nomenclature tistical territorial nomencla- To this end, several measures (Nuts I, II, or III). Those is- ture level normally required by are essential: lands, such as the coastal is- the legislation, the Commis- lands, which do not possess sion should automatically use · Each island regional a specific regional administra- the nearest island statistical authority should be tive identity could, in so far territorial unit corresponding guaranteed at least a distinct as possible, be grouped to- to the territory of this region. identification in the EU gether to constitute “non-ad- For example, NUTS II level, statistical nomenclature ministrative island units”. which is used in the regula- owing to its isolation from tions governing the Structural the other regions of the EU · These island statistical Funds to define Objective I (This also concerns Guyane). territorial units should be regions, or to define thoise used in formulating EU poli- regions eligible for the · All the statistical units thus cies. derogations provided for by comprised should be granted Article 87.3 a) with respect to the title of “island statisti- State regional aid.

Maintaining the solidarity effort in the structural policies

n the context of the forthco- Having said that, a distinction · Apart from the amount of the ming enlargement, and the should be made between the budgetary allocations, those Ireform of the Structural islands on several points: island regions which continue Funds in 2006, the specific situ- to be eligible for Objective 1 ation of the islands and their · In the case of those governed should, for these same reasons, permanent structural con- by the terms of Article 299.2, also benefit from higher rates straints should be taken into eligibility to Objective 1 is au- of co-financing. account in addition to their tomatically justified owing to socio-economic characteristics. their extreme remoteness and b) Non-Objective 1 Regions: owing to the nature and inten- a specific financial a) Objective 1 Regions: a sus- sity of the specific difficulties instrument tained and well-adapted arising therefrom. effort The Union’s enlargement policy · Within the Structural Fund should not, however, hinder the The economic and social devel- envelope earmarked for Objec- development of regions which, opment of the least favoured tive 1 post 2006, constraints while having a higher per- areas of the Union is not only linked to remoteness and insu- capita GDP than areas eligible socially just, it is also impor- larity should, in proportion to for Objective 1, still continue to tant for the political stability their respective intensities, be experience irrefutable difficul- and harmonious development regarded as determining factors ties. of the Union itself. It is legiti- in the distribution criteria. The mate that priority be given to budgetary allocations should This means that the resources those regions whose levels of also take account of aggravat- earmarked for cohesion from development rank among the ing factors such as archipelago 2007 on should be sufficient to lowest in the EU and which suf- effect, desertification, or prob- cover the needs of the candi- fer from the most acute social lems of accessibility linked to date countries and those of the problems. rough terrain. regions of the current Member 124 States which continue to be Redesigning the community intervention mechanisms confronted by structural prob- Ö The areas in which it is ap- helps them overcome the problems. plied should be those which lems linked to the small size of clearly entail durable geo- their local market. In the case of those islands graphic or demographic con- which are not covered by Ob- straints. These would include Ö The manner in which this jective 1, it should be possible (in the case of the islands): instrument is allocated should to pursue the Community’s ac- be based on the principle of tion beyond 2006, via a finan- - Financing the purchase or proportionality, based on the cial instrument which would renewal of fixed or mobile intensity of the handicap suf- take into account the specific transport infrastructures; fered, measured in terms of de- situation of those regions which gree of accessibility, demo- labour under geographic or - Financing a risk capital for graphic situation, and, possi- demographic constraints of a developing new sea or air links, bly, productivity. It should also durable nature (i.e: islands, within the EU or with third be possible to take account of regions with a very low popu- countries; the accumulation of constraints lation density, or areas obvi- which affect many island re- ously suffering from isolation - Financing public infrastruc- gions (such as archipelago- due to rough terrain). tures the proliferation of which type fragmentation, a difficult is justified by an archipelago- demographic situation, or the It matters little that such an in- type situation, or by isolation mountainous nature of part of strument be legally framed as due to rough terrain; their territory) in the criteria for a stand-alone programme, or distributing aid. as a set of special measures in - Covering certain additional the framework of a new “Ob- costs arising from the applica- Ö If the creation of such an in- jective 2” Regulation, as long as tion of EU legislation in the is- strument is to be more than a number of ends and criteria land milieu (e.g. application of merely symbolic, significant re- are met: standards in the field of the sources must be allocated to it. environment, waste manage- These should range from an Ö The existence of durable or ment, water management, etc.); amount of aid corresponding to permanent geographic or de- that currently granted to Objec- mographic constraints should - Aid to island companies (par- tive 2 regions, at the lower end be a explicit criteria for eligibil- ticularly SMEs) for promotion of the scale, to that currently ity. and market canvassing cam- granted to Objective 1 regions, paigns, in so far as this aid at the higher end of the scale.

The scales thus constituted would make it possible, in accordance with the principle of proportionality, to grant support of variable intensity, which could be modified, without, however – unless there are major developments – calling into question the durable or permanent nature of the constraints suffered by a territory.

125 Off the coast of Europe

Revising the State aids systems

he aid mechanisms ope- aid levels, together with the another scale – those whose rated within the Member possibility of direct aid to trade with the Community is TStates concern compara- transport. It does not, how- carried on via trans-oceanic tively greater sums of money ever make any reference to the transport. than the Structural Funds. The islands (apart from an anec- second Report on Cohesion dotal reference). A minimum The problem of aid to trans- estimates that the volume of aid requirement, therefore is that port should also be dealt with paid by the states represents the benefits granted to the low- in the framework of the WTO 1% of EU GDP, while, by 2006, population areas be extended so as to encourage the devel- the Structural Funds will to all the islands, that is to say: opment of direct trade with the represent a mere 0.31%. It is nearest third countries. therefore crucial for the islands ð Comparable NGE (net grant that the various aid systems equivalent) thresholds, Ö The system of competition controlled by the Community which prevails in the field of take account of the additional ð Entitlement to operating aid sea and air transport contains costs and constraints linked to designed to cover additional miscellaneous provisions in insularity and remoteness. transport costs. relation to the islands which should be improved or supple- The case made by the island Moreover, in the best-case mented. For example: regions for a more flexible scenario, this very same leg- framework is based on the fact islation tolerates operating aid ð The rule of the “lowest that the aid designed to offset only where such aid is “tem- bidder” should be amended to the additional costs linked to porary and progressively re- take account of factors such as insularity, far from distorting duced”. This restriction fails the economic and social impact the market, contributes to to take account of the perma- which the attribution of the rebalancing it. nent nature of the constraints contract can have on an island. of the island phenomenon and EU legislation on aid, in par- should, therefore, be eliminated ð The practice of breaking ticular State regional aid and in particular in the case of routes serving a region up into agricultural aid, therefore needs transport subsidies. several invitations to tender to be revised. Such aid must, should be avoided where this in accordance with the Ö The formal prohibition on practice could jeopardise the principle of positive differen- direct aid to transport in the quality and reliability of the tiation, include the constraints case of trade between Member services. of insularity and their possi- States of the Community should ble accumulation with other be reconsidered in the case of ð It should be possible to permanent constraints of a the islands, because such aid extend the term of service pub- geographic or demographic could help improve their lic contracts in the field of ship- nature. economic integration in the ping to take account of the Community space and enable period of depreciation of the The following are some exam- them take advantage of their ships. ples: geographic positioning in the maritime spaces around Ö In the case of agricultural Ö The State regional aid sys- Europe. This particularly con- or fisheries aid, specific sup- tem takes account of the concerns those islands closer to the port measures for local produc- straints suffered by very low coast of another Member State tions designed to limit the population density regions, and than to that of its own mainland effects of additional transport 126 currently allows them higher and even more so – and on costs, or the effects of the lim- Redesigning the community intervention mechanisms ited size of the market, should THE ACCUMULATION OF CONSTRAINTS IN THE ISLAND REGIONS Substantial be envisaged. This could ap- Low (<30 inhab. /km²) mountain areas ply, for example, to the oper- or Very low Island region Characteristics (*) with respect to ating aid intended for small (12.5 inhab/km²) the total surface population density transformation units (abattoirs, area creameries, etc.) where the Aland Archipelago Low modest volume of the island’s Gotland Low productions, or the small size Bornholm of the local market, preclude Shetland Archipelago Low Orkney Archipelago Low their operation in conditions of Western Isles Archipelago Yes Very low economic viability. Isle of Wight Les Illes Balears Archipelago Yes Ö The application of uniform Corse Yes Low indirect taxation rates (VAT, Sicilia Archipelago Yes Sardegna Archipelago Yes Excise, etc.) tends to aggravate Notio Aigaio Archipelago the situation in the islands Vorio Aigaio Archipelago where consumption prices are Kriti Yes highest. The States should be Ionia Nissia Archipelago allowed exercise a degree of Martinique Outermost region Yes Outermost region Guadeloupe Yes flexibility in the application of Archipelago VAT and Excise rates in the is- Réunion Outermost region Yes lands where such an approach Outermost region Açores would contribute to reducing Archipelago Outermost region the costs of insularity and im- Madeira Yes Archipelago proving the living conditions of Outermost region Canarias Yes the population. The same ap- Archipelago plies, for obvious reasons, to Gozo Archipelago (**) transport related taxation or Saaremaa Low user charges (e.g. airport Hiiumaa Very Low taxes). (*) By “archipelago” is meant island regions where more than 2% of the population lives in minor islands. (**) With respect to a an island state

New forms of governance

he proliferation of EU to envisage new forms of govern- Ö Any EU text concerning fields legislation, its increasing ance, based on consultation, co- which are likely to be of particu- Tcomplexity, and the in- ordination and innovation. lar interest for the islands (for creasing scope of the fields it af- example, in the fields of regional fects are not without repercus- a) Governance and Consulta- policy, agricultural, fisheries, sions for the island regions. Cur- tion transport, environmental or en- rent mechanisms are not suffi- ergy policy, competition policy or cient to take systematic account It is essential to avoid the situa- taxation policy) will, as soon as of all the aspects of the specific tion whereby, whether by igno- it is presented to the Member situation of the islands. It is, rance or inadvertence, EU legis- States, be submitted for discus- moreover, difficult to ensure the lation would adversely affect the sion accompanied by the follow- necessary cohesion between re- situation of the islands and jeop- ing question: gional, national and community ardise their integration. Two policies, so as to ensure that the practices, in particular, should be “In the perspective of its ap- appropriate policies are imple- envisaged. plication to the islands, does mented. This highlights the need this legislation seem to you to 127 Off the coast of Europe

require specific measures on European policies, rather than a c) Governance and Innovation the basis of the provisions pro- sectoral one. vided for in the Treaties?” The White Paper on “European Ö It is worth recalling that, for Governance” also refers to the This system would, on the basis many years now, the island re- possibility of conducting experi- of the modalities proper to each gions have been calling on the ments in the form of “tripartite State, be accompanied by a proc- European Commission to sys- objective contracts” associating ess of consultation between the tematically practice an “inter- State, Region and Commission. national authorities and the re- services” approach when exam- gional authorities concerned. ining the situation of an island Ö This opportunity should be region. This approach should be grasped in order to implement, Ö In its agreements with third carried out in a spirit of partner- in the various Member States countries, the Commission ship and should associate the having island territories, tripar- should take account of the situ- European Commission, the tite objective contracts designed ation of those of its island regions Member State and the relevant to overcome the constraint of in- which are close to these coun- regional authority. sularity. These contracts would tries or which belong to the same make it possible, according to the geographic region. It should Ö Any changes made on the oc- specific characteristics of each strive to ensure that they are in- casion of the institutional reform island, to come up with original tegrated better in these units and of the Union, and which will be solutions which would associate pay particular attention to the liable to affect the operation and legal and financial mechanisms, need to preserve their natural re- management of the Inter-Services which would operate simultane- sources and protect their envi- Group, should not, however, in- ously in several fields and which ronment. terfere with the necessary would coordinate the action of strengthening of the existing dis- the various levels of government. b) Governance and Coordina- tinct group in charge of the out- tion ermost regions. Similarly, the Ö The use of the islands as “fields proposals in relation to govern- of experimentation” seems to be In its White Paper on “European ance concerning the breakdown all the more justified in light of Governance”, the Commission of Article 299-2, submitted by the the fact that these territories en- refers to the need for a better outermost regions in their memo- joy legal bases or specific poli- “general coherence” of its poli- randum, should be implemented. cies in primary law. cies and expresses the desire to develop an integrated vision of

128 SCENARIOS

What scenarios for the islands of Europe ?

he integration of the islands in the European Union remains fragile. In certain fields, a lot of work remains to be done. The economic, social, and, therefore, political situation of the islands is so sensi- Ttive that one can easily, based on the elements brought together in the framework of this document, imagine both the most negative and the most positive scenarios for the next twenty years. The reforms to which the Community is currently giving thought, in the field of governance or cohesion, will have significant and durable repercussions for many territories, but perhaps especially for the islands. It is on the basis of the answers which will emerge during the course of the coming months that one will be able to gauge the conception that the European Union has of its space and of its inhabitants. Will this vision take account of the overseas territories or will it stop at the foreshore?

he idea of using an island to this island region within the Euro- Where is Merodia located? In the argue a point, for the purpo- pean Union over the course of the Baltic or the Aegean? In the At- Tses of satire or political cam- next quarter of a century. lantic Ocean, in the Western Me- paigning, as a social or philoso- diterranean or elsewhere? The phical fable, as a metaphor or as While the framework of both sce- answer is everywhere and nowhe- a case study is one of the oldest narios is similar (the islands are re because Merodia, which was genres in European literature. confronted with more or less the inspired by a famous sister island same range of events), the conse- described by Jonathan swift in his From Homer’s ”Odyssey” to Tho- quences are diametrically op- “Gulliver’s Travels” is, in fact, a mas Moore’s ”Utopia”, from Ra- posed. In the first case, a pessi- flying island which constantly belais’ “Pantagruel” to Daniel De- mistic scenario (“Islands adrift?”) overflies its mainland. foe’s “Robinson Crusoe”, nume- depicts the archipelago as being rous authors have hidden behind confronted with a succession of Similarly, the vast majority of the an imaginary island to rebuild So- crises which go from bad to worse events which occur in Merodia are ciety, to criticize States or religions, to lead to a break with the Com- drawn from events which have to invent new forms of government munity. The second scenario already taken place, are currently or to consider the relations (“The Fortunate Islands?”), which taking place, or are about to take between man and his natural en- is more optimistic, demonstrates place in one of the various islands vironment. how a European islands policy of the European Union. The only combining understanding, flexibi- sleight of hand is the concentra- It is only fair, therefore, for the is- lity and solidarity with regard to tion of these events on a single ter- lands in turn to use this process to these regions leads to their full in- ritory, together with their chrono- reflect, and encourage reflection, tegration within the Union. A logy. For the remainder, we have on their future within the Commu- point common to both scenarios favoured real events, or possible – nity space. To this end, we have is that their implications, far from if not probable? – ones. invented the archipelago of Mero- being limited to the some 200,000 dia, and envisaged two scenarios inhabitants of the islands of Me- illustrating two possible futures for rodia, affect Europe as a whole. The place:

he archipelago of Merodia, a region of the T Republic of Lagado, one of the Member Sta- tes of the enlarged European Union. The archipelago is a group of 6 islands, with a population of 200,000. Located 6 hours by sea from its mainland, it is situated close to the Confederation of Maldonada, a third country which suffers from serious internal upheaval, and which is a source of international tension.

The era:

n 2007, a few years after the integration of I Lagado in the Community. Lagado’s accession was ratified by referendum: 68% voting “yes”, and 32% “no”; Merodia voting 75% “yes” and 25% “no”, but with a much lower poll than Utopia Thomas More (Louvain 1516) Ed. Thierry Martin © Adagp, Paris 2000 the national average (40% as against 65%).

130 ISLANDS ADRIFT?

January 2007 The Merodia region is now a “rich” region, or at least an “enriched” region. Or at least it is if one believes Eurostat, according to which its per-capita GDP has increased from 71% to 80% of the EU average. This increase was, in fact, due to a drop in the EU average owing to enlargement, and the resulting mathematical rise in per-capita GDP of the regions, including the least favoured regions. However, Merodia received a “phasing out” equivalent to the former Objective 2, which was abolished with the 2006 reform. The archipelago is also eligible to the major “Cooperation without borders” Community Initiative. However, as its only immediate neighbour is the Confederation of Maldonada, where Northern and Southern Maldonadians are at war, there are no obvious candidates for cooperation to use these funds, which are, moreover, somewhat limited. The government of the Republic of Lagado officially announces that it will top up EU aid, and that national aid will maintain an intervention level equivalent to that of Objective 1. The Lagadian Minister for Finance has done his sums: it will be cheaper to help some 200,000 Merodians than to increase Lagado’s contribution to the Structural Funds budget. This should have been increased to 0.6% of EU GDP to maintain an equivalent effort while simultaneously seeking to meet the additional needs on foot of enlargement. However, Lagado is a net contributor. Even if it pays additional regional aid to the Merodians, maintaining the Structural Funds budget at 0.3% of GDP will represent a significant saving for Lagado. September 2007 The European Commission DG for Competition informs the Republic of Lagado that its aid programme for the Mero- dia archipelago is contrary to Community law, because the measures proposed can only be applied to regions eligible for the provisions of Article 87.3 a) of the Treaty, i.e. NUTS II level regions whose per-capita GDP is less than 75% of the EU average. Unfortunately, the per-capita GDP of the archipelago is 80% of this average, and only the, much less favourable, derogations provided for by article 87.3.c) can now apply. The government of Lagado comply and the field of the Merodia aid programme is considerably reduced. The Laga- dian Minister for Finance secretly feels that this decision is timely, because the increase in Lagado’s public expenditure jeopardises the stability pact required by the Single Currency. The country is entering a period of budgetary austerity. In Merodia, politicians of various persuasions are severely critical of Europe and of enlargement.

April 2008 Financial crisis in the archipelago. The implementation of the new Community environmental standards (water, waste, smoke emissions, etc.) on foot of the Singapore III accords generate considerable public expenditure in terms of infrastructures, particularly in the smallest islands of the archipelago where economies of scale are impossible. Moreover, the severe storms of the last three years (with cyclonic force winds in a region where climatic disruptions are normally moderate) caused severe damage to road and port infrastructures and to numerous public and private buildings. The prospect of many more such climatic events, the cause of which is attributed to the greenhouse effect, forces the authorities to revise the public expenditure programme. These different factors, together with the persistence of budgetary constraints in Lagado, and the sharp reduction in EU aid (dropping from 200 to 40 Euros per year and per inhabitant) lead to a severe financial crisis: the region of Merodia is on the brink of bankruptcy.

September 2008 The tourist season is disastrous. Apart from the concern caused by the persistent conflict in Maldonada which frightens away family tourism, the Merodian tourism industry suffers from particularly high transport prices. Unfortu- nately the worldwide trend towards shorter stays militates against destinations which do not enjoy the benefit of cheap links. January 2009 The European Court of Justice confirms the decision of the Commission prohibiting the operating aid paid to the agricultural cooperative of Merodia. Obliged to reimburse the aid previously paid, the last cheese maker in the minor islands of the archipelago is forced to close, ending a 300-year-old tradition of cheese production. This decision, which follows on the heels of the closure of the regional abattoir, is a severe blow to local farmers, who can no longer have their raw materials processed and are forced to export their unprocessed production to the mainland. However, even supplemented by the Community’s per-hectare aid, market prices, which are close to world prices, barely cover input and transport costs. A wave of exodus depopulates the rural areas. Deserted farms are snatched up at low prices by rich German, French and Scandinavian tourists, who convert them into secondary residences.

131 March 2009 Creation of a new political party the “Merodian Regionalist Action” by former trade unionists, with the support of defectors from various conventional political parties, on both the left and right. This new party calls for a substantial change in EU policy with regard to Merodia, and is highly critical of the Lagadian government, which it accuses of having “sold out the interests of the Merodian people” when bringing the country into the Community. The MRA obtains 15% of the votes in the local government elections, but is beaten in three municipalities by candidates of Dutch and Austrian origin, who receive massive support from Community residents who acquired the former farms.

June 2010 The latest figures from EUROSTAT indicate that the per-capita GDP of Merodia dropper substantially, to 72% of the EU average. Will the archipelago become eligible again for Objective 1 of the Structural Funds at the reform of 2013? Apparently not, because EUROSTAT also announces its intention to harmonise the EU’s statistical nomenclature: all NUTS II level statistical zones, without exception, will henceforth have to have at least 800,000 inhabitants. Unfortu- nately, the calculation of eligibility to Objective 1 is necessarily based on NUTS II zones, because the Commission categorically refuses to descend to a more refined level in a European Union with some 500 million inhabitants. There is an outcry from the local elected representative of Merodia, all parties included. October 2010 The government of Lagado, conscious of the increasing tensions in the archipelago, tries to oppose the European Commission’s proposal on NUTS at the European Council. However it fails to gather the necessary qualified majority, because, as most of the enlargement States already comply with this legislation, they do not wish to oppose it. Merodia will therefore be integrated in the nearest mainland region in Lagado which, with its 1 million inhabitants, also happens to be the most prosperous in the country (per capita GDP at 120% of the EU average). This automatically excludes any possibility of Merodia’s being eligible for the Structural Funds, or of benefiting from a more flexible system in terms of State aid. February 2011 A rise in average water temperature of ½° Celsius seems to lie at the origin of the disappearance of the shoals of fish which normally frequent Merodia’s coastal waters. Seasonal migrations seem to be taking place 200 km further to the North, out of the range of Merodia’s small coastal fleet which carries out most of its fishing in the 12-mile zone. The midwater trawlers of the Community fleets snap up in a few weeks what was the largest resource of Merodia’s local fisheries industry. Being unable to invest in a deep-sea fleet, Merodian fishermen try to fall back on the other neighbouring species around their coast, but these are rapidly depleted by over-fishing. The “Merodian Regionalist Action” changes its name to “Merodian Autonomy Front”. Campaigning for a renegotiation of the conditions of accession of Merodia to the EU, and a complete overhaul of its links with the mainland, it wins 40% of the votes at regional elections, and 2 of the 5 Merodian seats in the national parliament. The situation in the region is very tense, and acts of vandalism are committed against the property of residents from other EU countries. These are suspected of letting their houses or cars “on the black” to compatriots during the summer season, to the detriment of the tourism industry and local taxation. March 2012 A team of financial auditors from the European Commission arrives in Merodia to check the accounts of the Fisher- men’s Cooperative, which is suspected of having illegal aid from the local authorities. The employees of the cooperative throw the delegation into the port. The Minister for the Interior of Lagado declares that he “will not tolerate this flouting of the rule of law”, that “Merodia must conform to Community law”, and that Community law “must be rigorously applied”. He announces the dispatch of police reinforcements to the island. The President of the regional government of Merodia makes a declaration to the press. He refers to the Lagadian Credit (State bank) affair, brought to the brink of bankruptcy by the negligence of its successive administrators and of the supervisory authorities. The rescue plan (which the Commission’s competition services did not finally oppose) will cost the Lagadian taxpayer the equivalent of one tenth of the national budget. The President therefore feels that the government of Lagado is badly placed to “lecture” Merodia on the need for rigour.

132 April 2012 The crisis blows up right where it is least expected. An EU regulation has just banned the hunting of the red crested Dodo (Dodus purpura) after the first of April. Howe- ver it is precisely at this time that this bird, from which the Merodians make their famous pâté, traditionally makes its appearance in the archipelago before flying away from Europe. Merodian hunters are up in arms against this calling into question of an ancestral practice, arguing that the species, which causes much damage to crops, is not under threat. The hunters’ demonstration draws a big crowd, some of whom, under the influence of the local liqueur, turn up with their rifles. Minor incidents get out of hand, leading to serious clashes in front of the prefecture, at which demonstrators and security forces exchange shots. The demonstrators retreat to the port, where Merodian fishermen are holding a meeting calling for a ban on trawlers in the 200 mile zone to protect what is left of fish stocks in the Sea of Lagado. The fishermen join the hunters, who are also joined by students from the neighbouring university. There follows a night of rioting in which several people are killed and roughly a hundred injured. The Prefecture is burnt, and the “European Information Centre” ransacked.

May 2013 The crisis in Merodia becomes a national one. The regional government of Merodia resigns en bloc to protest against “police violence, central State terrorism, and the dictatorship of Brussels”. The “Merodian Autonomy Front”, now called the “Movement for an Independent Merodia outside Europe” wins an absolute majority in the regional Assembly.

June 2013 The situation in Merodia causes the ruling coalition in Lagado, already weakened by a number of scandals, to break up. The government falls, and early elections held. The “Movement for an Independent Merodia outside Europe” wins all the archipelago’s 5 seats in the national Parliament. More seriously, the election leads to a stalemate, with the right and left wing coalition tying on 70 seats each. This means that the new government of Lagado will be decided by the supporters of Merodian independence.

October 2014 After several months of stormy and eventful negotiations, a solution seems to emerge. A centre coalition allied with the supporters of Merodian independence comes to power. The price for this alliance is that Merodia becomes an autonomous region over which the Republic of Lagado will have only very limited powers. The Republic of Lagado undertakes to negotiate Merodia’s withdrawal from the EU with its partners, along the lines of Greenland’s departure in 1985. The archipelago would become an “Associated Territory”. This means that it would be able to freely export its produce to the Community, apply “customs tariffs designed to cater to the needs of its development or to feed its budget” to Community imports, and receive aid from the EDF (of the order of 30 to 40 Euros per annum and per inhabitant, i.e. a sum similar to that former Objective 2).

January 2015 Negotiations commence with the EU. Several Member States, fearing a spillover into their territory with its similar problems, declare themselves totally hostile to the idea of granting Merodia the status of “Associated Territory”. They raise a legal objection: according to Article 182 of the Treaty, this status is only supposed to apply to “non- European” territories. Merodia is geographically a European region. February 2015 A delegation from Merodia makes discrete contact with the US embassy in Lagado, and underlines the importance of stability in an archipelago which contains one of NATO’s largest listening stations, used to keep a close eye on the endemic conflicts in the neighbouring Maldonada. Furthermore, Merodia’s ports are the best anchorages in the Lagado Sea, and are frequently used by the US 18th Fleet. June 2015 As the civil war resumes in Maldonada, secretly fanned by various terrorist groups, the US State Department puts firm pressure on several EU Member States “to rapidly find a satisfactory solution in Merodia”.

September 2015 At an emergency meeting, the European Council, on the proposal of the Commission, refuses to grant Merodia the status of “Associated Territory”, but grants it a Protocol similar to that granted to the Channel Isles and the Isle of Man at the time of the UK’s accession in 1975. In short, the archipelago will be outside the Community, but will retain the right to trade freely with it. On the other hand, Merodia will not be entitled to the Structural Funds, the EDF, or the CAP.

133 October 2015 Lengthy debates take place in the Assembly of the Autonomous Territory of Merodia on the European Council’s proposal. The First Minister of Merodia recalls that free access to the Single market is only of limited interest because: a) Merodia’s industrial products are rarely competitive with those of the mainland owing to lack of economy of scale, and the distance of the archipelago from the main markets; b) Merodian fisheries, agriculture and industry have taken a hammering in recent years, which means that there very little left to trade; c) the Merodian economy now relies massively, with varying fortunes, on tourism. In this field, the archipelago’s attractiveness has nothing to do with its membership of the Community space. On the contrary, freedom of action in taxation matters could constitute an important asset and counterbalance the worrying proximity of Maldonada. As regards the Structural Funds, the loss of earnings will be of the order of 8 million euro, which will have to be found somewhere. A daring fiscal policy will be necessary to draw benefit from the situation.

April 2016 Merodia, Lagado, and the European Union reach an agreement. Merodia leaves the EU, and EU legislation largely ceases to apply in Merodia. First decision of the Merodian government: red crested Dodo stew is officially declared the “national dish”, and is recommended as a festive dish to be eaten on 30 April, the date of Merodia’s withdrawal from the EU. June 2017 The archipelago of Merodia adopts a particularly aggressive tourism policy. Taxes and duties on alcohol and tobacco are slashed or abolished. Regional legislation, which is much more flexible than Lagadian legislation, authorises the development of gaming establishments, and turns a blind eye to various illegal activities. The region aims to become Europe’s island “Las Vegas”. Only natives of Merodia or foreign residents having paid at least 100,000 euro in income tax can acquire property or real estate. At the same time, Merodia’s new tax legislation provides particularly interesting taxation rates, with a ceiling of 20% for high-income earners. Numerous wealthy Lagadians, followed by citizens of other EU countries, or wealthy Maldonadians fleeing the civil war, settle in the region for tax purposes. This allows a gradual balancing of the regional budget, and, finally, a positive balance.

January 2019 Large amounts of international private capital are invested in the islands. The new airport is to be built by the Banca Industrial de Cali y Medelin, while the port terminal is to be funded by investments by a Ukrainian Charitable Trust in cooperation with the Bekka Farmers Pension Fund. March 2020 The latest census carried out by the Statistics Office shows that, for the first time in 40 years, there is a big jump in population. Tourist numbers have also soared. There are some doubts as to the figure for illegal immigration from Maldonada. Some of the illegal immigrants remain in the archipelago where they provide cheap labour for the hotel and restaurant sector. The others are merely in transit to Lagado and Europe, while rumours of false passports abound. Suspicions are aroused by the sudden new-found wealth of former fishermen now involved in cruises – with some alleging that they are involved in smuggling goods and people. This combination of population increase and growth in tourism has positive repercussions in various sectors, such as real estate, transport (thanks to increased competition between airlines on a destination whose profitability has increased), and agriculture with the growth in small-scale productions on an expanding market.

January 2022 Smuggling and trafficking in Merodia reach worrying levels, but the government of Lagado has limited powers to do anything about it. The new Lagadian government (the last one having fallen owing to the split between the “Unified Movement” and the “Solidarity Front”) does not want to revive the Merodian question by intervening militarily in the archipelago. The US State Department (which discretely supports the South Maldonadian guerrillas by sending arms from Mero- dia) simultaneously puts pressure on Community authorities to turn a blind eye.

134 September 2023 A report by European Union Court of Audit evaluates the direct and indirect costs of the situation in Merodia. The proliferation of coastguards, customs officers, surveillance systems etc. between the coasts of Merodia and the EU have cost 40 million euro. This sum is attributed to the budget of the DG for Foreign Policy and Common Security (DG SECU), which is now in charge of the fight against fraud and of policing the borders of the EU. Fraud itself, in all its forms (tobacco and alcohols smuggling, pirating, not to mention allegations of cultivation of hallucinogens in the mountains of Merodia) is difficult to evaluate, but an annual turnover of the order of 200 million euro is mentioned.

January 2024 The CFSP monitoring committee of the European Parliament calls for an enquiry into the situation in Merodia and its consequences. October 2024 The Johansson-Rodriguez report on the situation in Merodia is published. In their conclusions, the authors underline that “even taking account of the successive devaluations of the Euro since 2002, the cost for the Community of the situation in Merodia is ten to fifteen times annually what it would have been if the pre-1999 Structural Funds effort had been maintained, and if EU legislation had shown a degree of flexibility with regard to the island economy”. The reporters asked «…what were the causes of such a terrible waste, which led the Union, not only to lose part of its citizens, but also to get bogged down in a quagmire from which it is difficult for it to extricate itself?»

January 2025 Large numbers of forged Euros are circulating around the EU, threatening its monetary stability. Heretofore, the single currency had the reputation of being impossible to forge and the only attempted counterfeits were crude and the networks quickly dismantled. The new forged notes, however, are of excellent quality, and the multiple inbuilt security devices have been overcome or neutralised. An initial enquiry by Europol establishes that the forged notes were printed in the premises of the former Maldona- dian national mint, now controlled by the Central Maldonada Liberation Front. The notes were then routed to Mero- dia, and spread throughout Europe via casinos, tourist traffic and smuggling in general. The false Euros are absolutely perfect, save for one exception, which seems to confirm that the famous Merodian Mafia is indeed at the origin of the traffic. In examining the schematised map of Europe on each note, Europol experts noted a significant difference: the forger, preferring patriotism to prudence, had added a detail that didn’t exist. The 6 islands of the archipelago of Merodia, which were omitted on the original notes, were all added (microscopical- ly) onto their forged notes.

135 136 THE FORTUNATE ISLANDS?

January 2007 The reform of the Structural Funds has just come into force. Per-capita GDP of the region of Merodia has increased from 71% of the EU average to 80% owing to enlargement and the ensuing mathematical drop in the average. However, Merodia does not lose the benefit of the Structural Funds for two reasons. Firstly, the Member States have finally recognised the risks of an enlargement policy which would act to the detriment of the least favoured regions of the Community. The Structural Funds budget (now financed by a Community tax integrated in VAT) is accordingly increased to 0.6% of the Union’s GDP. Secondly, a financial instrument dedicated specifically to territories labouring under durable geographic or demographic constraints has been introduced. This instrument concerns the islands, the most isolated mountain areas, and the very low population density regions. It is designed to remedy, or at least alleviate, the constraints which affect these regions, and is allocated in proportion to the intensity of these difficulties, which are sometimes accumulated. With a GDP well below the EU average, poor accessibility aggravated by an archipelago effect, and the mountain configuration of several of its islands, Merodia obtains a high intervention level, close to the former Objective 1 (approximately 200 Euro per inhabitant per annum). This Community support, designed to promote the objective of “territorial cohesion”, henceforth included in Article 158 of the Treaty alongside economic and social cohesion, will enable regions like Merodia to finance fixed or mobile transport infrastructures, reduce the additional costs induced by the implementation of EU environmental legislation, or grant certain industries investment aids designed to enable them offset the small size of the market. At the same time, Merodia has just concluded a “tripartite objective contract” with the State and the European Commission, the aim of which is to remedy the constraints arising from its island nature. The resources implemented are simultaneously financial and legal. Financially, the Community intervenes via the Structural Funds, while the Republic of Lagado, jointly with the Region, implements a territorial continuity policy designed to reduce the costs of internal and external transport. On the legislative plane, the Lagado State and the Community agree on a number of fiscal measures concerning both direct and indirect taxation: reduction of excise on fuels, reduced VAT rates in specific targeted fields, various investment incentives. Finally, the European Commission grants a number of derogations in the field of State regional aid and agricultural aids. These latter forms of aid are granted on a trial basis, i.e. provided that their effectiveness is demonstrated, and the risks of distorting the internal market are limited. A monitoring committee is set up to oversee their implementation and to evaluate their consequences. These measures will be re-examined periodically, and amended or supplemented as need be.

September 2007 The DG for Competition of the European Commission confirms the specific provisions to be applied to Merodia in terms of State regional aid. NGE (net grant equivalent) ceilings are aligned with those enjoyed by low population density regions have enjoyed since 1998 (i.e. 30%, followed by 10% for the SMEs). In addition, the Commission authorises the creation of a system of direct aid to island companies to offset part of the additional costs linked to transport. This is a permanent system designed to limit the effects of bulk breaking and unbalanced flows between the archipelago and the mainland. Moreover, the Commission authorises the granting, on an exceptional basis, of operating aid for small agricultural and fisheries product transformation units (abattoirs, creameries, canning factories), so as to enable island farmers and fishermen, not only to meet local consumption needs, but also to develop exports to the mainland. However, the aid arrangements must not result in more favourable economic conditions than those enjoyed by companies of identical size on the near mainland.

January 2008. Unrest resumes in the neighbouring Republic of Maldonada.

137 April 2008 The pursuit of structural aid enables the archipelago meet European environmental standards. Furthermore, the new Directive on packaging waste incorporating the principle of “the polluter pays” via a tax on companies producing packaging is of global benefit to the region, because its economy - revolving as it does around tourism – is based more on consumption than production. The Equalisation Fund set up thanks to this tax finances Merodia’s 5 waste processing plants, which would otherwise be insufficiently profitable in an island context. This has triple advantages: creation of direct employment and derived activities, strengthened protection of the environment, and lower costs for the local authorities. Other environmental threats cloud the horizon, however. In one of the predicted consequences of the greenhouse effect, severe storms (with cyclone force winds in a region where climatic disturbances are normally more moderate) caused considerable damage to road and port infrastructures and to many public and private buildings over the last three years. Conscious of this situation, the European Commission set up a “special fund for natural catastrophes” several years ago. The use of this fund made it possible to limit the financial impact of this damage, and to implement an ambitious programme to reinforce coastal infrastructures and developments. At the same time, the European Union undertakes a diplomatic campaign under the aegis of the UN for the imposi- tion of rigorous rules in terms of CO² emissions. The political support of the Small Islands Developing States contributes significantly to its success. These states, which are members of the AOSIS (Alliance of Small Island States), represent 43 States and almost 20% of the members of the UN.

September 2008. Crisis in the European tourism industry. Although highly dependent on this sector, Merodia nevertheless manages to limit the consequences. The drop in airfares in recent years, thanks to the territorial continuity policy, maintains the attractiveness of the archipelago for short stays, which now represent the most promising segment. In addition, Merodia made strenuous effort to avoid total dependency on tourism by maintaining as diversified an economy as possible. The advantage of the support granted to transformation activities, which enables the country preserve the agriculture and fisheries sectors, now appears more clearly. January 2009 More stringent constraints in terms of CO² emissions, following the international conference in the Maldives, together with the oil crisis caused by the continuing conflicts in the Caspian Sea, lead the EU authorities to strengthen their action in the field of renewable energies. This increases the profitability of the renewable energies, and a vast programme is undertaken to exploit wind and wave power, fields in which Merodia enjoys favourable conditions. This electricity then has to be distributed to the mainland … However, the distance of the archipelago implies major investments in underwater cables, which can only be profitable in the long term. The Community makes this a priority and helps to finance them under the terms of the TEN-EN.

March 2009 Wave of attacks in Maldonada. The wealthiest families begin to leave the country. June 2010 The latest figures from EUROSTAT indicate that Merodia’s per-capita GDP has increased significantly to 85% of the EU average. Unemployment is now lower than the national average, but this is no longer due to emigration to the mainland. The population of the region has increased significantly (205,000 inhabitants) while population decrease in the minor islands has been chec- ked. EUROSTAT announces its intention to harmonise the EU’s statistical nomenclature: in light of the increase in the size of the Union (which now boasts 500,000,000 inhabitants) all NUTS II level statistical zones in the EU, without exception, will henceforth have to have at least 800,000 inhabitants. This decision will not affect Merodia because, since 2006, the Community grants specific statistical status to regions physically separated from the European continent, in other words the islands and outermost regions. The statistical nomenclature now takes account of these regions individually and distinctly, irrespective of the size of their population and their NUTS level. Furthermore, on foot of studies conducted at the initiative of DG REGIO in 2001, a database comprising a range of, sometimes original, indicators was created to evaluate their situation and monitor their development.

138 October 2010 A rise in average water temperature of ½° Celsius seems to lie at the origin of the disappearance of the shoals of fish which normally frequent Merodia’s coastal waters. Seasonal migrations seem (for how long) to be taking place 200 km further to the North, out of the range of Mero- dia’s small coastal fleet which carries out most of its fishing in the 12-mile zone. This highlights the need to ensure that the midwater trawlers of the Community fleets do not snap up in a few weeks what constitutes the major part of their resources. The fish resource management mechanism set up several years ago by the Community as part of the new CFP, however, sometimes limits the damage. On the one hand, the management of the 12-mile zone is now entrusted to regional structures, associating fishermen’s associations and local authorities. These can reserve access to this zone to local fishermen only, and immediately adopt any conservation measures they deem necessary. For several years now, Merodia’s epicontinental seabed has been surveyed, and its exploitation subject to rigorous monitoring, while fish farms have been developed around the archipelago to diversify activities. Beyond the 12-mile zone, the regional structure representing the Merodian fisheries industry is now directly involved in negotiating the International Orga- nization for Fisheries in the Sea of Lagado, which includes the European Commission, and the various riparian countries. In this way, Merodian fishermen argue successfully for the adoption of a moratorium in order to avoid the decimation of the stocks of migratory species, and envisage a return to normal.

February 2011 Merodia’s geographic position at the mouth of the Sea of Lagado endows the archipelago with a significant advantage in the field of European shipping. While the major European ports, already encumbered, cannot handle the new super-containers (Megaships) without very costly dredging and infrastructural works, Merodia’s natural capacities, with its excellent anchorages and an abundance of space, predisposes this region to the role of maritime “hub”. A decision is taken to build a port complex in the archipelago, where the trans-oceanic super-containers could tranship their cargos to smaller units providing a feeder service with the ports of the mainland. This project is placed on the list of priority TEN-T projects. In light of the objectives expressed in Article 154 of the Treaty, which stipulates the need “to link island, landlocked and peripheral regions with the central regions of the Community”, the Commission also authorises Lagado to apply particularly attractive tax incentives to attract private capital (free zone, reduced VAT, miscellaneous exemptions, etc.).

November 2011 New crisis in Community ovine and bovine production: a variant of “mad cow disease” (BSE) forces the Commission to impose a severe embargo on several producing States. This situation suits Merodian breeders because, for several years, the archipelago has been able to draw on new statutory provisions restricting the principle of free movement to become a free zone. A rigorous policy of monitoring cattle imports, involving a quarantine period in one of the minor islands, means that its herd is free from the epizootic. Sold under a specific label, sheep and cattle from Merodia obtain high prices on the markets.

March 2012 The Maldonadian government falls. The various politico-ethnic components of the country fall back on their respective territories: Northern Maldonada, Central Madonada, and Southern Maldonada. Foreign powers arm these various factions, who prepare for armed conflict. April 2012 A draft EU regulation designed to ban the hunting of the red crested Dodo (Dodus purpura) is being drawn up. However it is precisely at this time that this bird, from which the Merodians make their famous pâté, traditionally makes its appearance in the archipelago before flying away from Europe. As has been the case for several years for any draft EU legislation in fields liable to concern the islands, the Commis- sion’s document is accompanied by a form with the following question: “In the perspective of its application to the islands, does this legislation seem to you to require specific measures on the basis of the provisions provided for in the Treaties?” The permanent representation of Lagado, following consultation with the Minister of the Environment and the regional authorities of Merodia, informs the Commission that the date proposed is ill suited to the situation of the archipelago, where the migrations follow a different seasonality. Following negotiation, the Commission agrees to postpone the deadline to 20 April in the case of Merodia.

139 August 2012 The Merodian Carriers Cooperative, which brings together local capitals, invests massively in the infrastructures and services of the new port terminal. September 2012. Civil war breaks out in Maldonada. The European Union decides to intervene under the terms of the CFSP. The Rapid Deployment Force deploys in Merodia. It has a triple mission: 1°) To cut off the supply of arms to the belligerents, 2°) To assist the civilian populations threatened by the conflict, and 3°) to support the mediation efforts undertaken by the EU to re-establish peace. To face the increase in air traffic, the runway of the archipelago’s main airport is modernised and extended to 3,000 m. January 2013 Reform of the Structural Funds. Merodia’s situation has improved significantly since 2006. The population has increased, sea and air transport has been developed thereby improving accessibility, and per-capita GDP has grown by 10% to 88% of the EU average. The archipelago continues to benefit from the financial instrument intended for regions with durable constraints, but the amount of the Community intervention is reduced in accordance with the scales in place. Moreover, the tripartite objective contract is re-assessed. As a study carried out by the Commission demonstrated that most of the tax measures in force in the archipelago do not distort the internal market (who would come to Merodia to fill up his tank because petrol prices are lower?), these provisions are maintained. On the other hand, the operating aid available to certain agricultural cooperatives is revised downward, because the success of the quality cheeses produced by the islands’ creameries has opened an export market. As the production volumes are now sufficient to sustain the industry, the operating aid will be gradually and progressively reduced, and finally abolished. The parties finally agree on the need to reduce the isolation of the archipelago by developing air links with other States of the European Union. Three destinations seem to be particular interest for the island economy, Marseilles, Hamburg and Rotterdam, because direct flights to these major port cities will encourage the development of Mero- dia’s port “hub” by facilitating crew movements and various commercial traffic. A budget envelope, funded by the State and the Structural Funds, will cover risks of losses on these links for a period of two years.

June 2013 First success of the Rapid Deployment Force. A cargo ship full of arms, whose suspicious behaviour was spotted by the Merodian surveillance installations, is intercepted. Thanks to its excellent port and airport infrastructures, Merodia also serves as a base for routing food, clothing and medication to the displaced populations sheltered in Red Cross camps, and for the evacuation of the wounded.

October 2013 Drug trafficking between Maldonada and the Republic of the Lagado, the aim of which is to obtain funds for the various guerrilla groups in Maldonada, is severely disrupted by the system put in place in Merodia. This spots the fast boats used by the smugglers as soon as they leave Maldonada, and before they have a chance to approach the coasts of Lagado. The role of Merodia’s fishermen, familiar with every nook and cranny in the sandbanks and shoals of the Sea of Lagado, and therefore, with the smugglers’ routes, plays an essential part in this action.

January 2014 With the tacit agreement of the government of Lagado and of the European Union, the regional government of Merodia establishes direct contacts with several of the warring factions in Maldonada. The Merodian origin of certain communities living in Maldonada, and the fact that Merodian (old language still spoken in the archipelago) is close enough to Maldonadian to allow for mutual comprehension, favour these exchanges. The regional government allows the parties use one of the small islands in the archipelago to organise secret meetings on “neutral ground”.

October 2015 Success of the port terminal. The Merodian Carriers’ Cooperative becomes one of the top companies on the island, investing in air transport, and directly managing the archipelago’s main airport. April 2015 Following long months of effort, the informal negotiations lead to formal proposals. Official peace negotiations can start.

140 October 2016 Launch of a major “off-shore” wind power construction programme in the south of Merodia. A roadway, combined with wave power installations, now connects two of the minor islands of the archipelago. Merodia exports 60% of its electricity to the mainland. June 2017 The Maldonadian conflict is over. By virtue of an agreement signed in Merodia itself (known as the “Merodia Ac- cords”), Maldonada becomes a federal State, the security and stability of whose institutions are guaranteed by the European Union. Merodia plays a major role in repatriating displaced families, and in routing materials and providing the services necessary to rebuild the infrastructures ravaged by 5 years of war.

October 2017 Record profits for the Merodian Carriers Cooperative, which has been able to benefit from its investments in air and sea transport, and has diversified into renewable energies. January 2018 The Community decides to finance the extension of the under-water cable connecting Merodia to Lagado via Maldo- nada, with a view to meeting this country’s energy needs as soon as possible. March 2019 The European Union decides to decentralise as many as possible of the head offices of its Institutions and related structures. The region of Merodia immediately asks to host one of them. The Commission and the Council respond favourably to this offer: part of the services of the DG for “Justice and Interior Affairs” is moved to Merodia, thus creating 200 jobs. This is the Department responsible for managing the Refugee Aid Fund and migration cooperation programmes with third countries, and the move can be seen as just recognition of the role played by the archipelago in the events in Maldonada. January 2020 Reform of the Structural Funds. Merodia’s per-capita GDP is now close to the EU average. Instead of unemployment, there is a shortage of manpower, and the population rises to 240,000. Moreover, as the archipelago boasts good accessibility (4 regular links with Lagado, 5 with the rest of the EU, and 3 with Maldonada), the Commission feels that the constraints of insularity have been significantly reduced and Merodia will henceforth be entitled only to the floor rate of the financial instrument. As part of the renegotiation of the tripartite objective contract, it is decided to exploit Merodia’s assets in the field of transport to strengthen trade with other continents. The development of air freight via the new “supercargo” aircraft (whose capacity is double that of the old 747’s) is a promising development: the size of the main airport, its moderate traffic, its distance from the conurbations, and the proximity of the free port zone are also assets. As the air sector is still not covered by the competition clauses of the WTO, Lagado and the European Commission set up a support fund covering, for a limited time, the risks of operating direct lines between Merodia and Halifax, Singapore and The Cape.

April 2022 The Merodian Carriers Cooperative has become one of Lagado’s largest companies. At a time when the struggling Air Lagado, the struggling national carrier, is set to be privatised, there is talk of it being taken over by a consortium led by the Lagadian Carriers. One of the possible consequences of this move is that the head office would be transferred to the archipelago …

141 October 2024 Study by the European Parliament on “The impact of the territorial cohesion policy on European construction.” The O’Brien - Papadopoulos Report explicitly mentions Merodia’s experience as an example of success. “It is true – they underline – that the policies adopted with regard to this region, and with regard to all the islands and territories with permanent geographic constraints, have had a not-insignificant cost for the European Union. It is also true that some of the derogations granted to the archipelago necessitated an audacious approach, and a great degree of legal flexibility on the part of the EU authorities. Despite this, however, these efforts now seem justified for two reasons. Firstly, in Merodia, which previously suffered from severe economic difficulties and a declining population, the trend has been reversed. Secondly, the EU as a whole has benefited from the policy applied in these islands. At present, 5% of the Union’s maritime traffic with third countries uses the “feedering” services provided by the archipelago’s port facilities. Fish farming production, which has recently grown in this region, represents 3% of the EU total. Moreover, Merodia’s “on shore” and “off-shore” production of renewable energy covers 10% of the consumption of the Republic of Lagado, and 30% of that of Maldonada – a fact which contributes to the Union’s efforts to rebuild this country. We will not overdwell on the acknowledged role played by Merodia in re-establishing peace in this zone, and on the success of the CFSP in this matter. In the context of a territory clearly located at the confines of the Community, with a population of barely 250,000 inhabitants, these results are proportionally spectacular”. The Reporters concluded: “It is legitimate to ask whether such a success would have been possible if the European Union had, 20 years ago, persisted in a strictly book-keeping type approach to the management of the Structural Funds instead of promoting territorial cohesion, and if it had persisting in applying a dogmatically legal interpretation of EU law. The example of Merodia confirms that the Community was right in 2006 in adopting an islands policy based simultaneously on a good understanding of their permanent constraints, and on a global and long-term vision of their potentials. The fact that the European Union realised in time that the harmonious integration of such territories was of strategic importance (in the broadest sense of the word) for its future was, therefore, not a chimera, but a lucid vision of reality.”

142 BIBLIOGRAPHY Off the coast of Europe

Some references about islands

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UNCTAD, 1999.

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DOUMENGE François, « Les îles et les micro-Etats insulaires » in Hérodote, n°37-38, 1985.

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FERNANDEZ MARTIN , Fernando, « Iles et régions ultrapériphériques de l’Union européenne », Edi- tions de l’Aube,1999.

MEISTERSHEIM Anne, « Figures de l’île » Editions DCL, 2001.

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SPILLANIS Iannis, « Qualité versus quantité : une stratégie durable pour les îles » in l’Ile Laboratoire, Alain Piazzola, 1999. www.eurisles.org.

VASSILARAS , Nikos, Comité Economique et Social Européen : « Lignes directrices pour des actions inté- grées en faveur des régions insulaires de l’Union européenne après le Traité d’Amsterdam (article 158) »; juillet 2000.

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144 GLOSSARY Off the coast of Europe

ACP: African, Caribbean and Pacific States CAP: Common Agricultural Policy CCI: Chamber of Commerce and Industry CET: Consolidated European Treaty CFP: Common Fisheries Policy CFSP: Common Foreign and Security Policy ERDF: European Regional Development Fund EU: European Union EUROPOL: European Police Office EUROSTAT: Statistical Office of the European Communities FOD (DOM): French Overseas Departments. There are 4 of them (Guadeloupe, French Guyana, Martinique, Reunion Island) IMO: International Maritime Organisation INTERREG: Community initiative concerning border areas (Community initiative designed to promote interregional cooperation. Financed by the Structural Funds, its field of action is limited to the EU). MAICh: International Centre for Advanced Mediterranean Agronomic Studies MEDA: Measures to accompany the reform to the economic and social structures in non-member countries of the Mediterranean basin NGE: Net Grant Equivalent. Mechanism for evaluating the maximum amount of aid – whatever the type – that can be granted NUTS: Nomenclature of statistical territorial units PDMA (Plan départemental d’élimination des déchets et Assimilés): French local plan for waste disposal PHARE: The PHARE Programme was launched in 1989 after the fall of the communist regimes in central and eastern Europe. It is designed to provide assistance for the economic restructuring of these countries. PHASING OUT: Community Structural Aid which is gradually being limited or stopped

PPS: Purchasing power standard RECITE: Community programme on interregional cooperation RO-RO: Roll-on/Roll-off RUP: Ultraperipheral Regions. There are 7 of them (Azores, Canary Islands, Guadeloupe, French Guyana, Martinique, Madeira, Reunion Island) SME: Small and Medium-sized Enterprises TEN-T: Trans-European Transport Network TEN-N: Trans-European Energy Network

TEU: Twenty-foot Equivalent Unit. Unit of measurement used for the transportation of goods by container. TOM: French Overseas Territories (Territoires d’Outre-Mer) VAT: Value Added Tax 145 WTO: World Trade Organisation Off the coast of Europe

Persons who contributed to this study

AÇORES · Antonio CORREIA, Assessor do Presidente - Presidencia do Governo Regional ÅLAND · Carin HOLMQVIST, Head of Department - Åland Landskapsstyrelse - Department of Trade and Industry · Linnéa JOHANSSON, Head of Unit - Åland Landskapsstyrelse - Department of Trade and Industry BORNHOLM · Henrik Eybye NIELSEN, E.U. Consultant - Bornholms Amt ILLES BALEARS · Patricia DUENAS, Tècnic Superior - Direcció General de Relacions Europees i per a la Mediterránia - Conselleria de Presidencia · Bartomeu ALCOVER BISBAL, Tècnic Superior - Direcció General de Programació i Ordenació Economica - Conselleria d’Hisenda i Pressuposts - Govern de les Illes Balears CORSE · Norbert PANCRAZI, Chargé de Mission - Coopération Décentralisée - Collectivité Territoriale de Corse · Lucette VERO, secrétaire - Coopération Décentralisée - Collectivité Territoriale de Corse GOTLAND · Lennart ANDERMO, Research Officer - Gotlands Kommun GOZO · Frank PSAILA, Permanent Secretary - Ministry for Gozo · Joseph RAPA, Assistant Director - Ministry for Gozo GUADELOUPE · Nathalie ISAAC, Responsable des Programmes Européens - Mission Coopération - Conseil Régional de la Guadeloupe · Marie-Ange JETIL, Responsable de la Mission Coopération - Conseil Régional de la Guadeloupe HIIUMAA/SAAREMAA · Kaia EELMA, Institute for Islands Development IONIA NISSIA · Lina ROUSSOU, Advisor to the Secretary General - Region of Ionia Nissia ISLE OF WIGHT · Harry REES, Deputy Leader - Cabinet Member UK & EU Regional Issues/ Economic Development - Isle of Wight Council · David JAGGAR, Director of Environment Services - Isle of Wight Council KRITI · Alkmini MINADAKI, Peripheria Kriti - International Affairs & Interregional Cooperation 146 MARTINIQUE · Sonia ZOBDA-QUITMAN, Directrice des relations internationales - Conseil Régional de Martinique · Eliane CHAMLONG, Chef de service de la Planification, de la statistique et des Etudes Economiques, Conseil Régional de Martinique · Maguy MARIE-JEANNE, Chargée de mission en relations internationales, Conseil Régional de Martinique ÉGÉE Ministère de l’Egée · Vasilios LABIDONIS - Bureau du Secrétaire Général - République Hellénique - Ministère de l’Egée NOTIO AIGAIO · Konstantinos TERZIS - Peripheria Notio Aigaio - Bureau of International Relations Université de l’Egée · Iannis SPILANIS, Professor - University of the Aegean - Laboratory of Local and Island Development ORKNEY · Jeremy BASTER, Director of Development and Planning - Orkney Islands Council - Council Offices SARDEGNA · Mario LEONI, Direttore - Servizio Rapporti Internazionali e U.E. - Regione Sardegna SHETLAND · Andrew BLACKADDER, EU Adviser - Shetland Islands Council - Development & resources Service - Development Department · Alistair GOODLAD, Member of European Forum - Shetland Islands Council WESTERN ISLES · Keith BRAY, Planning Officer - Western Isles Council · Derek MCKIM, Head of European Services - Western Isles Council EXPERTS · Prof. Zacharias DEMATAS - Conseiller particulier du Sécrétaire d’Etat à l’Economie Nationale · Prof. Pavlos LOUKAKIS, Docteur en Urbanisme et Am. Du territoire · Fred RENO, Directeur du Centre d’Analyse Géopolitique et Internationale (CAGI) · Prof Victor T.C. MIDDLETON, Professor · François DOUMENGE, Directeur du Musée océanographique de Monaco · Vicky ARGYRAKI, Islenet network CRPM · Jean-Didier HACHE, Secrétaire Exécutif de la Commission des Îles · Anne LEZIN, Sécrétaire CRPM EURISLES · Michel BIGGI, Directeur Technique d’EURISLES · Martine AGOSTINI, Administratrice de Données – EURISLES · Eric CUCCHI, Maquettiste PAO – EURISLES TRANSLATIONS · Sarah BICHOT, Sean O’CONAIL, Claire STREET 147