IP/97/275

Brussels, 9 April 1997

Commission Supports Industrial Restructuring in Zuid- (NL)

The Dutch region of Zuid-Limburg is to receive ECU 65.52 million from the EU’s Structural Funds to cope with industrial and structural change. The aid comes under a programme approved by the European Commission today in principle and aims at improving the employment prospects for the working population, increasing the competitiveness of SME’s and protecting the environment of the region. The programme will contribute to the creation of 4000 new jobs, 1577 temporary jobs and will provide training for 4970 employees and 2270 unemployed. In addition, seven new technology or training centres will be set up and more than 170 ha of business sites created or renovated. The programme approved in principle today completes the series of EU-programmes for Dutch regions in industrial decline (obj. 2) and brings the total EU-funding for these regions up to about ECU 361.97 million.

Regional socio-economic situation

The Objective 2 region Zuid-Limburg still bears the traces of its mining past. Its labour market encompasses parts of the and districts and more specifically the municipalities of , Born, Brunssum, Geleen, Heerlen, Kerkrade, Landgraaf, Nuth, Schinnen, Sittard and Stein.

About 15% of the working population is officially unemployed. The hidden unemployment is also very high, and total unemployment is probably in the region of 20%. On average, unemployment among women is 4 percentage points higher than among men.

The economy is highly dependent on industry, thus making it vulnerable to business cycles. SME’s are under-represented and a relatively low proportion of production is exported.

Regional development strategy

The main aim of the programme for Zuid-Limburg is to create employment and improve the standard of living in the region without harming the quality of the environment. This is to be achieved by improving the employment prospects for the working population, increasing the competitiveness of SME’s, improving the balance between supply and demand in the labour market, protecting and improving the environment and creating greater diversity in the economic structure. Among the priorities for the programme are the development of strong mutual business contacts and networks, and the promotion of co-operative ventures.

It is expected that the Community contribution will trigger a total investment of about ECU 222.24 million. Some ECU 60.23 million of this will be in the form of private co-finance, while national investment will be about ECU 96.48 million.

Final approval of the programme is expected for April.

For further information please contact:

MAECON Ministry of Economic Affairs Programme Management - Unit Regional Policy Mr. M. Hazen - Mr. R. Vallentin P.O. Box 200 - P.O. Box 20101 NL - 6400 AE HEERLEN NL - 2500 EC DEN HAAG Tel: 31-45-560.55.55 Tel: 31-70-379.78.61 Fax: 31-45-550.55.60 Fax: 31-70-379.60.95

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