European Social Fund h Erpa Sca Fund Social European The rga n eid 1994-1999 period ing m program an overview of the of overview an uoen Commission European
Double issue Double Employment and ESF Information Sector (DGV), Directorate-General for Employment, Industrial Relations and Social Affairs Rue de la Loi 200 B- 1049 Brussels Fax: (+32-2) 295 49 18 e-mail address: [email protected] www: http://europa.int/en/comm/dg05/esf/esf_home.htm
Front cover: Manuel Geerinck The European Social Fund
an overview of the programming period 1994-1999
European Commission Manuscript completed in November 1997.
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Printed in Belgium Printed on chlorine-free paper FOREWORD
FOREWORD
Foreword by Padraig Flynn, Commissioner with special responsibility for Employment and Social Affairs
For over 40 years, the European Social Fund has been years, to as many people as possible. Between 1994 the European Union's main source of finance to help and 1999 (the current ‘programming period’) the
people to help themselves - by funding training, guid Commission will have spent some ECU 47 billion ance, counselling, employment creation, and a host of through the European Social Fund on these aims. other activities which enable people to improve their jobs or their prospects on the jobs market. And yet there has never been one single publication
bringing together what the Fund does, which is why I
It has done this in two main ways. Within the less devel am happy to commend this one to you. Here you can oped regions of the Community, it has been a major dri see how the Fund sets out to support Member States in ving force behind the improvement of education, train their efforts against unemployment, and get an
ing and re-training. Elsewhere, it has played an impor overview of the wider thematic issues (such as Equal tant role in helping Member States to match their labour Opportunities) across the Fund as a whole. Now that supply to the ever changing needs of the economy. the European Employment Strategy, which the Treaty of
Amsterdam calls for, has been well and truly launched
It has thus been a tangible manifestation of Europe's by the Luxembourg jobs summit in November 1997, it concern for the issues of social inclusion and of equal is appropriate that the Union's only Fund aimed specif ity of opportunity for all, helping to spread the vast ically at people should be presented in this easily com improvement of living standards over those 40 and more prehensible and accessible manner. ■■■ T A B L E OF CONTENTS
from 1957 to 1988 Chapter 2 19 The 1988 reform of the Structural Funds Chapter 3 23 The 1993 review; future developments TABLE 0 F CONTENTS
ESF PROGRAMMING 1994-1999 overview of the situation in each Member State
Chapter 4 - Austria 39 . Chapter 5 - Belgium 55 Chapter 6 - Denmark 71 Chapter 7 - Finland 83 Chapter 8 - France 99 Chapter 9 - Germany 117 Chapter 10 - Greece 133 Chapter 11- Ireland 145 Chapter 12 - Italy 157 Chapter 13 - Luxembourg 175 Chapter 14 - The Netherlands 189 Chapter 15 - Portugal 203 Chapter 16 - Spain 215 Chapter 17 - Sweden 233 Chapter 18 - United Kingdom 251 APPENDICES 279
General comments 267
Council Regulation (EEC) No. 2081/93 of 20 July 1993
Council Regulation (EEC) No. 2082/93 of 20 July 1993
Council Regulation (EEC) No. 2084/93 of 20 July 1993
EUROPEAN SOCIAL FUND 9 ______INTRODUCTION
What is the ESF ?
The European Social Fund (ESF) invests in people. Its purpose is to improve the prospects of those who face the greatest obstacles in finding, keeping or regaining work. In this way the ESF enables millions of people throughout the European Union to play a fuller role in society and thus improve their quality of life.
The ESF provides funding on a major scale for programmes which develop or regenerate people's employ ability by providing them with the right skills, both for work and for social interaction, improving self-con fidence and adaptability in the job market. The ESF channels its support into strategic long-term programmes which help regions across Europe, particu larly less prosperous ones, to upgrade and modernise workforce skills and to stimulate entrepreneurial initiative.
The ESF is the main tool through which the European Union translates its employment policy aims into action. In the six years 1994-1999 the ESF, which operates in all Member States, will have made avail able ECU 47 billion, accounting for almost ten per cent of the European Union's total budget. Through a joint-funding principle, the ESF adds to the scope and the impact of active measures being undertaken by Member States to increase people's employment prospects.
The ESF's aims are both preventive and remedial. To help prevent future long-term unemployment, the ESF focuses its support on programmes which prepare young people better for working life, which help those in employment adapt or develop their skills to meet the challenges of change in the workplace, or which intervene early to help those losing their jobs who may be at risk of long-term unemployment to regain work quickly. For those who have reached the stage of long-term unemployment, the ESF concen trates on supporting coordinated programmes which provide a step-by-step path for getting people back into work. Underlying all the ESF's work is the principle of ensuring equal access to employment for men and women, the disabled, and disadvantaged minorities at risk of social exclusion.
10 About this publication
Information on the ESF is currently dispersed among a provide an overview of the manner in which each of the number of sources at Community and national level. 15 Member States intends to implement its operations The only option open to those seeking a comprehensive in the different areas covered by the ESF Regulation, in overview of the Fund's activities and how it works is to the light of its own social, economic and administrative consult the relevant Community legislation and the var situation and, of course, its priorities. The report also ious programming documents (CSFs, SPDs, OPs). The provides the different ESF players with information on information contained in these texts is not always spe the Fund's activities outside their own country. cific to the ESF and is consequently somewhat frag mentary, while the programming documents are often The first part of the report outlines the legal and available only in the national language. administrative framework in which the Fund has evolved since its creation and provides a detailed
This publication is an attempt to fill the existing gap. A description of the current situation (operational, bud sort of ‘guide’ to the ESF, it brings together for the first getary and financial aspects). The aim is not to analyse time in a single publication the different aspects of ESF the Funds' activities, still less to evaluate them, hence programming for the period 1994-1999 and the con the absence of information from which to draw qualita text in which they are set, together with a description of tive conclusions on the current state of play. how the Fund is administered and implemented. The report might best be described, in fact, as a sort of
The greater part of the report is devoted to a description inventory: a basic reference tool for anyone wishing to of the Fund in each Member State. These 15 summaries enhance his knowledge of the Fund, notably ESF key present rather than analyse the choices made by the players and training and employment professionals. It
Member States in the form of programmes devised in should also be of use to all those who, inside or outside accordance with ESF financing criteria and guidelines. the European Union, want to know more about the ESF. They are based for the most part on national program ming documents, which is why the level of detail may vary from one Member State to another. The aim is to The Employment and ESF Information Sector
EUROPEAN SOCIAL FUND 11
o
THE ESF FROM 1957 TO 1993 historical background and legal framework
CHAPTER 1
Evolution of the ESF from 1957 to 1988
CHAPTER 2
The 1988 reform of the Structural Funds
CHAPTER 3
The 1993 review; future developments Evolution of the ESF from 1957 to 1988
The European Social Fund has naturally under In those early years, unemployment was nothing like the problem it was later to become and to the extent gone many changes since its establishment with that it did exist, it was thought that it could be largely contained by a policy of support for the training and the evolution of the social and economic situa mobility of workers exercising their right of freedom of movement within the Community. Economic growth tion, the changing nature of Community policies, was expected to solve unemployment problems by the progressive enlargement of the Union from itself without the active social and labour market poli cies that were to become indispensable as conditions six to fifteen Member States and not least worsened in later years. through the periodical reviews of the effective Outputs ness and suitability of its role, management and The ESF provided grants totalling some 400 mil lion units of account (at then current prices) in the impact. The importance of keeping the Fund period September 1960 to 31 December 1973 for the retraining of almost a million workers and the geared to changing needs was in fact recognised resettlement of 700,000. In terms of numbers assisted, Italy was the main beneficiary with 65% by the inclusion of a review clause in each or the of the total, followed by Germany with 25.5%. Many Italian workers were trained with ESF aid in major reforms outlined in this chapter. Germany, France and Belgium. From the financial aspect, Germany, with its well developed training system and its extensive programme for the reha bilitation of workers with disabilities, was the major beneficiary with 42%, followed by Italy with 36%. Grant applications rose from ECU 8.2 mil lion in 1965 to ECU 46.2 million in 1970. The Initial Phase (1957-1971)
The European Social Fund (ESF), the longest estab Weaknesses lished Structural Fund, was set up by the Treaty of The Fund was financed up to 1969 (when the Rome (Article 123) to improve job opportunities in the Community budget based on ‘own resources’ was Community by promoting employment and increasing introduced) by direct contributions from the the geographical and occupational mobility of workers. Member States. It was agreed that some Member States would contribute relatively more to the ESF The management of the ESF was entrusted to the and others less. As Italy, although among the coun Commission, assisted by the Social Fund Committee, tries paying relatively less, was expected to be the consisting of representatives of governments, trade major beneficiary, this arrangement reflected an unions and employers - a body which continues to intention to give the ESF a redistributive role. function to the present day. This proved to be the case to a certain extent in the The original rules (Article 125 of the Treaty) provided earlier years, but from 1967 onwards the most for grants reimbursing public authorities in the Member prosperous Member State, Germany, became the States half the cost of vocational training and resettle major beneficiary. This failure to effect redistribu ment allowances and grants to workers suffering a tem tion of resources was seen as one of the main porary drop in wages during restructuring operations in drawbacks of the Fund at the time of its first their enterprises. In the case of the conversion of an review. The timing of the review was fixed in the enterprise, aid was granted only when the government Treaty as the end of the twelve-year transitional concerned had obtained prior approval from the period for the establishment of the Common Commission to the plan and the workers were fully Market. The Council was empowered (Article 126) employed again within six months. The objective was to to make, at this stage, the changes in the opera assist workers moving from one region to another in tional system of the ESF necessary for the most search of work and those needing to acquire new skills effective attainment of its objectives. in sectors undergoing modernisation or conversion of The other main problem to become apparent dur production methods. Training for the public sector and ing the lifetime of the first ESF was the fact that for self-employment were specifically excluded. the system of retrospective grants precluded any CHAPTER 1
Community influence on national labour market redundancies with movement towards trade and vocational training policies. liberalisation. Further openings which fol lowed are referred to below; ♦ Article 5 was to provide support for action, carried out in the framework of national policies, to promote employment in less 1971 Reform - Adding the developed regions, in sectors of the econ Community Dimension omy and groups of firms restructuring because of technical change and for the By the mid-sixties, earlier ideas about counteracting rehabilitation of persons with disabilities. unemployment were being questioned, and there was a growing realisation that part of the unemployment At least half of the entire budget was to go to the problem was due to the impact of community policy, Article 5 regions. The decision stated that this pro particularly in the economic field. It was also becom vision should be reviewed by the next reform of the ing evident that, in some regions, employment was Fund on the understanding that in the long term the hampered by structural factors. The expectations of a greater part of the budget would be for Article 4. single European labour market failed to materialise. Admission of the Private Sector It was against this background that the Commission A further innovation was the opening up of ESF aid presented, in 1969, its opinion on the first reform of to the private sector. For the first time, private bod the ESF. The aim was to extend and strengthen the ies became eligible for ESF grants to the extent Fund as an instrument responding to Community that a public authority guaranteeing the scheme rather than purely national objectives, while introduc was also contributing. ing greater efficiency and flexibility in its manage ment. The new Fund which emerged (adopted in 1971 Innovation with effect from 1 May 1972)1 had substantially greater resources, exceeding in its first two years the Provision was also made, for the first time, for pilot total budget for the twelve years of the previous Fund. actions to promote innovation in training. The new structure was a compromise between Member States advocating a focus on specific categories of Activities Supported workers and those favouring an emphasis on structural The new rules for assistance eligible under the unemployment in the less developed regions. This fea ESF5 provided for continued support for training ture was to re-emerge in the subsequent reviews of the and re-settlement together, with allowances for the ESF up to the adoption in 1988 of the principles training of instructors and trainees. Wage subsidies underlying the present-day structure. The system of in Article 5 regions were made available for work retroactive funding was replaced, in the 1971 review, ers being trained during their first six months of by new rules providing for applications to be submit employment. Similar grants applied to workers over ted prior to the beginning of operations. 50 and for the adaptation of work stations to the needs of people with disabilities. The Council Decision adopted in 19712 replaced the provisions in Article 126 of the Treaty with a new sys Most of the resources (90%) went, in practice, to tem providing the following two types of intervention: vocational training. ♦ Article 4 provided for ESF intervention to improve the balance in supply and demand of labour within the Community, or where employment was affected by Community policies. The categories of persons covered The 1977 and 1978 Amendments were to be decided by the Council in subse quent decisions, the first of which related to Although the next major review of the ESF was not people leaving agriculture.3 This was subse foreseen until the early eighties, the serious deteriora quently extended to workers in the textile tion in the unemployment situation, especially for and later still the clothing sector4 which was young people and in the least developed regions, led to undergoing large-scale re-structuring and other amendments in the intervening years.
1 Council Decision 71/66/EEC 2 Council Decision 71/66/EEC 3 Council Decision 72/428/EEC 4 Council Decision 76/206/EEC 5 Council Regulation (EEC) No. 2396/71 The eligible categories under Article 4 were enlarged of unemployed in the Community had reached 10.5 in 1977 to include: million, of whom 42% were under 25. Many young peo ple lacked the basic schooling and training to get them ♦ migrant workers and their families6; on the employment pathway. Conventional qualifica ♦ women over 25, unemployed, or wishing to tions, moreover, even at graduate level, were often ill- return to work after a long period out of the adapted to the needs of the job market. Programmes labour market7; for young people accounted for 44% of ESF beneficia ♦ unemployed young people under 25 espe ries in 1982 but Member States were drawing up new cially first job seekers8. education-to-work schemes and demand was growing for the ESF to help more. Regional Aspect The Commission reported to the Council that the Reflecting the increasing attention to regional dispar structure of the Fund had proved too rigid and com ities, which led to the establishment of the European plicated to cope with changing needs and proposed Regional Development Fund (ERDF) in 1975, the a new scheme concentrating on the fight against Council adopted a Regulation9 on 20 December 1977 youth unemployment. The Commission's objective applying a higher grant rate of 55% to Greenland, the was ‘to provide support for the implementation of a French Overseas Departments, Ireland, Northern training guarantee for all young people and to pro Ireland and the Italian Mezzogiorno. The naming of mote a dynamic response to the problem of youth these regions in a Council text - subsequently termed unemployment;’11. the absolute priority regions - (a precursor to today's Objective 1 regions) gave considerable authority and This new regime12, which came into force in 1984, impetus to the role which the Commission increas stipulated that young people must make up at least ingly envisaged for the ESF as a support for regional 75% of the total beneficiaries of the Fund. development. The priorities for youth schemes subsequently defined Aid for Job Creation in the Commission's guidelines13 for the management of the Fund comprised:- With concern growing over unemployment, the European Council of 6/7 July 1978 at Bremen ♦ schemes for the under 18s combining voca called for additional action by the ESF in this field. tional training and work experience which This led to the introduction of a new type of aid for offered employment prospects; job creation, applicable from 1979, in a Fund hith ♦ vocational training for young people (18- erto limited to supporting vocational training and 25) with inadequate qualifications for jobs mobility. The ESF was empowered to contribute up involving new technology; to ECU 30 per week for a maximum of twelve ♦ job premium schemes in the absolute priority months10 for young job-seekers under 25 in addi regions. tional jobs which either provided experience likely to equip them for recruitment to permanent employ Regional Focus Accentuated ment or related to projects fulfilling a public need. The new decision required 40% of the budget to be allocated to Greece, Greenland, the French Overseas Departments, Ireland, the Mezzogiorno and Northern Ireland. This was increased to 1983 Revision - 44.5% in 1985 when the list was extended to Combating Youth Unemployment include Portugal and some Spanish regions14. The remaining appropriations were to be concen The worsening unemployment situation, especially trated on similar actions assisting operations car among young people, was a major influence on the ried out within the framework of national labour 1982 review of the Fund. In that year the total number market policies in areas affected by high long-
6 Council Decision 77/803/EEC 7 Council Decision 77/804/EEC 8 Council Decision 77/802/EEC 9 Council Regulation (EEC) No. 2895/77 10 Council Regulation (EEC) No. 3093/78 11 COM (82) 485 of 8/10/82 - Opinion of Commission on review of ESF 12 Council Decision 83/516/EEC 13 Commission Decision of 30 April 1985; OJ No. L I33, p.26 14 Council Decision 85/568/EEC term unemployment or industrial restructuring. dimension, was straining the Commission's capacity, These areas were defined by the Commission in with limited staff resources, to deal with the workload the guidelines for the management of the Fund and raising questions about whether this was any through a statistical method based on longer the best way to manage the Fund. unemployment and GDP. They coincided to a large extent, as was to be expected, with the The project approach, moreover, required individual regions eligible for assistance from the ERDF. processing of thousands of payment applications, The guidelines, which set the selection criteria, which led to long delays in the capitals as well as gave priority to projects forming part of inte Brussels as the volume of demand grew. There was, grated operations involving other Community moreover, an increasing tendency towards the view that instruments, transnational projects and innova local planning, a bottom-up approach, would lead to tory approaches, especially those concerned with more effective use of funds. The single project system aligning national practice and Community policy. was considered to have outlived its usefulness and to be ill-adapted to the enhanced scale of the Funds' The guidelines also reflected the regional mission operations especially with the enlargement of the of the Fund; in 1982, nearly 42% of the ESF bud Community to twelve Member States. The growth of the get was allocated to projects in the absolute prior subsidiarity idea - later to be enshrined in the ity regions (to which Greece had been added); lit Maastricht Treaty - also influenced the move to decen tle more than 10% of the ESF went outside the tralise the administration of the ESF, through the intro less developed regions. duction of integrated programming.
Other Changes A foretaste of what was to come appeared in a Commission report in 198315 which recommended Other changes introduced new facilities for grants ‘the introduction of a Community development and for training aimed at the modernisation of small structural adjustment policy in the service of priority and medium-sized enterprises (SMEs), assistance activities defined by the Community and implemented for the training of instructors, vocational guidance by the entire armoury of the Community's Structural and placement experts and development agents for Funds and other financial instruments.’ local initiatives. The proportion of resources for innovatory actions to combat unemployment and the validation of the effectiveness of schemes Integrated Mediterranean Programmes aided by the Fund was increased to 5%. (IMPs) The New System in Practice The first real examples of such integrated action with the involvement of partnerships were the Integrated The new system with overlapping and sometimes con Mediterranean Programmes launched in 1986, to flicting ‘quotas’ for underdeveloped regions and benefi cushion the Mediterranean regions of France, Italy ciaries under 25 proved complex to manage, both for and Greece against the impact of the enlargement of the Commission and the Member States. This was com the Community to Spain and Portugal. pounded by the growth in the volume of demand on the Fund. With rising unemployment, budgetary resources, These programmes involved assistance for indus though reaching ECU 237 million in 1986 compared to trial and agricultural conversion by the ERDF and ECU 155.6 million in 1982, remained seriously inade EAGGF with the essential human resources com quate in meeting applications fulfilling the priority cri ponent provided through the ESF, in a framework teria. The Commission had little option but to operate a of multiannual programming. linear reduction system to deal with this problem; in the absence of national quotas there was no incentive for Around the same time, other Member States were Member States to limit applications. encouraged to submit Integrated Development Operations constructed on the same lines as the Serious disadvantages were also arising for project IMPs but despite the priority offered them in the promoters in the face of uncertainties about what guidelines for the management of the ESF, the changes to expect in the selection criteria and the response was limited. impact of the linear reduction - factors which, com bined with the fact that most grant approvals were only Special Support for Greece for one year at a time, gave rise to a certain insecurity in the Social Field and made planning difficult. The task of adjudicating Following the accession of Greece to the European on a rapidly growing number of applications (exceed Community, the Greek Government applied for a ing 10,000 in 1982), while presenting advantages series of measures, in the social as well as other from the perspective of preserving a Community policy areas to assist the integration of Greece into
15 COM (83) 501 of 28/7/83 - Commission report on increasing the effectiveness of the Structural Funds the Community. This led to the adoption of Council The notion of Community solidarity in itself was not Regulation (EEC) 815/84 providing aid, totalling new; the Treaty of Rome contained a protocol calling ECU 120 million, over a period of five years (later for the use of the ESF to help tackle the structural extended to ten) for the construction, adaptation problems of the Mezzogiorno. Both the ESF and the and equipment used for: ERDF, as already mentioned, had been contributing substantially to the underdeveloped regions. The mag ♦ vocational training centres for the general nitude of this task had increased, of course, with the population in Athens;16 admission in the eighties of new Member States with ♦ centres for the rehabilitation of persons with severe problems of regional underdevelopment - mental disabilities throughout the country. Greece, Spain and Portugal.
The objectives in promoting improvements in these Article 130a obliged the Community to ensure the sectors included helping the Hellenic Republic to reduction of disparities between regions and to put in place the essential infrastructure to develop improve the position of the least-developed regions. training services qualifying for ESF support and promoting the reform of the psychiatric system. The European Regional Development Fund (ERDF) was given the mission under Article 130c to contribute to the This Regulation, although strictly speaking not part cohesion objective by helping to redress regional imbal of the Structural Funds' Regulations and Budgets, ances in the Community by aiding the least-developed was managed by the ESF services. regions and the conversion of declining industrial regions. © Article 130d called on the Commission to submit a comprehensive proposal to the Council on the changes necessary in the Structural Funds (ESF, ERDF and EAGGF (guidance section)) to co-ordinate their activi 1988 - A Radical New Approach ties and increase their efficiency so as to promote the objectives of Article 130a and 130c. The adoption of the Single European Act, which entered into force on 1 July 1987, providing for the The Commission put forward, therefore, in 1988 a completion of the single market and incorporating a proposal for the fundamental reform of the Structural new commitment to the economic and social cohesion Funds involving the doubling of resources in the of the Community, set the scene for the fundamental period up to 1992, and using the funds in a concen reform of the Structural Funds which was put forward trated, integrated way to promote economic and social by the Commission in 1988. cohesion in the Community.
16 Athens was at the time excluded from the ERDF for this kind of aid. CHAPTER 2
The 1988 reform of the Structural Funds
A New Way of Working. BREAKDOWN OF STRUCTURAL FUND ALLOCATIONS (1989-1993) The major reform adopted in 1988
radically changed the largely isolated Others way in which the Structural Funds 2.8% had previously operated in favour of a EAGGF 17.9% global system of integration of their respective roles, working together towards the goal of economic and ERDF 47.6% social cohesion. The Community's other financial instruments, such as the European Investment Bank (EIB), Four Principles were also included in this co-ordi- The new approach was built on four basic principles - con nated approach. Total structural fund centration, partnership, programming and additionality. ing was to double between 1989 and Concentration applied in various ways. Five Objectives 1993 and a framework was estab were set out to be achieved by the Funds collectively in the combinations appropriate to each Objective. lished which, with some revision in Two of these, combating long-term unemployment (Objective 3) and ensuring a start for young people in 1993, constitutes the basis on which working life (Objective 4) applied EU-wide and involved solely the ESF. The Social Fund was also the system works today. involved in the regional Objectives (1, 2 and 5b), which applied to designated regions; its role was to ensure the development of the human resources needed to maximise the investment in regional and The relevant legislation consisted of two rural development financed by the ERDF and the Regulations which re-defined the tasks of the EAGGF. In practice, this reinforced the ESF’s tradi Funds,17 specifying the framework in which they tional role insofar as much of the human resource sup should operate and co-ordinate between themselves port for the development of the less prosperous regions and other financial instruments, such as the EIB. was targeted at people at risk of unemployment eligi These were complemented by separate regulations ble under Objectives 3 or 4. for each individual Fund.18 The concentration principle applied also in the form of a sharp focus of resources on the least developed ECU billion 1994 prices regions. Structural Fund aid for Objective 1 was to dou ble between 1988 and 1992. Eligibility was for the ESF 20 most part limited to regions with a GDP of around 75% ERDF 30.1 of the EU average, covering 21.7% of the Community's EAGGF 11.3 population. Objective 2 - for regions with severe unem Others 1.8 ployment due to industrial decline - was to be limited to 15% of the EU population while the Objective 5b Total 63.2 regions, with rural .development deficits, accounted for no more than 5% of the total EU population.
17 Regulation (EEC) No. 2052/88 and Regulation (EEC) No. 4253/88 18 In the case of the ESF, Regulation (EEC) No. 4255/88
EUROPEAN SOCIAL FUND 19 CHAPTER 2
1 Objective Funds Involved 1 the Member States. This resulted in Community Support Frameworks (CSFs) setting out the priorities 1 development of least ESF, ERDF, for Structural Fund assistance with indicative alloca prosperous regions EAGGF tions from each Fund over the entire programming period 1989-1993. Separate Operational Programmes 2 regions hit by ESF, ERDF (OPs) and Global Grant schemes were subsequently industrial decline agreed for each field of activity. This process involved 3 combating long-term ESF a new level of integration between the workings of the unemployment Commission departments, which was reflected also in enhanced cooperation between different ministries 4 employment pathways ESF within Member States. for young people
5 (a) adaptation of EAGGF The partnership concept was continued into the imple agricultural structures mentation and monitoring phases with the (b) development of ESF, ERDF, Commission working with the national, regional and rural areas EAGGF local authorities in tracking the progress of the various OPs and Global Grant schemes to identify the fine-tun EIB loans available under all Objectives ing and changes indicated through experience. Partnership in this phase frequently involved a wide range of local social and economic actors as well.
The additionality principle required that the Structural Funds should not be used merely to ESF FUNDING PER OBJECTIVE AND replace national funds. The increased EU aid was to COMMUNITY INITIATIVES (1989-1993) result in at least an equivalent increase in total EU and national aid in the Member States, taking macro-
Objective 5b economic considerations into account. The obser vance of this principle was verified during the part nership discussions on the CSFs. Compatibility with the other aspects of Community policy, in the fields of competition and the environment, for example, was also ensured.
Community Initiatives, Innovative Projects and Studies The CSFs were allocated about 85% of the total bud get and constituted the mainstream activities of the Funds; the balance was used to finance Community ECU million - current prices Initiatives (referred to below) and innovative actions and studies relating to new approaches in vocational Objective 1 11,329 training and employment policies. Objective 2 1,469 Objective 3+4 6,670 Extending the Scope of the ESF Objective 5b 316 It had become clear that the administrative struc Community Initiatives 885 tures in many of the Objective 1 regions needed to Total 20,669 be strengthened, if they were to be in a position to maximise aid from the Structural Funds. This led to an extension of the ESF eligibility rules in these regions to cover the training of public servants in The new implementation procedures were based on subjects relevant to the Structural Funds. partnership and programming. The growing links between education and work and Each Member State submitted its plans, at regional the erosion of what came to be seen as obsolete level where appropriate, analysing its situation and distinctions between education and training also outlining national or regional strategies in relation to led to the enlargement of eligibility for ESF fund the aims of the new Objectives. On this basis, discus ing in Objective 1 regions. It now included young sions were held in a partnership involving the people over compulsory schooling age being Commission departments dealing with the various trained within the education system as well as the Structural Funds and national/regional authorities in off-the-job part of apprenticeship training.
20 _
CHAPTER 2 MM
Eligibility Rules and Types of Assistance grammes. The proportion of the overall budget allo cated to this and related studies was up to 0.3%. The eligibility rules for participants in schemes covered by the new Regulation19 were very broad. Social dialogue also became eligible for ESF sup They included, in the Objective 1, 2 and 5b port: this financed schemes involving workers in dif regions, the unemployed, people threatened with ferent Member States in the transfer of knowledge unemployment and workers in SMEs or integrated relating to the modernisation of production systems. development schemes. In Objective 1, eligibility was wider, extending to the additional categories The User referred to in the preceding paragraph. From the user's standpoint, much had changed. Objective 3 was for people over 25 and out of work Decisions on project applications were decen twelve months or more, but this minimum period tralised and taken at national or, sometimes was waived in the case of women returning to work regional level. The increased budget meant greater and people with disabilities. Young people, to be chances of funding even if this was offset to some eligible under Objective 4, had to be over compul extent by increasing demand and the wider range sory school age and under 25. of applications in Objective 1 for newly eligible actions. The new system, moreover, with its multi As in the past, ESF funding supported recruitment annual programming, promised greater security, aids for new jobs including self-employment (up to continuity and flexibility. A new payments system a maximum period of 12 months); other types of was designed to reduce previous delays and cash recruitment subsidies were phased out from 1992. flow problems. This provided for an initial advance Vocational training for trainees and instructors of 50% within two months of the approval of the together with related services such as guidance, project and a further 30% when half the initial counselling and placement were also supported. advance had been used. Provision for technical assistance was an important innovation in the new system, helping to raise stan The new system, which took effect from 1989, had dards and effectiveness with support ranging from the much greater budgetary resources, involved multi preparation to the execution and evaluation of pro- annual programming and largely decentralised planning and management of the schemes covered by all the Structural Funds. FUNDING PER MEMBER STATE (1989-1993)
££ other Structural Funds ECU million current prices ■ ESF Structural Funds ESF Belgium 740 411 Denmark 402 184 France 5907 2112 Germany 6015 2131 Greece 7528 1714 Ireland 4460 1500 Italy 10753 2982 Luxembourg 55 12 Netherlands 725 470 Portugal 8450 2209 Spain 13100 3533 UK 4816 2344
Community Initiatives excluded
Source:'The impact of structural policies on economic and social cohesion in the Union 1989-99'. European Commission 1997.
19 Council Regulation (EEC) No. 2052/88
EUROPEAN SOCIAL FUND 21 Guidelines Community Initiatives The Commission drew up guidelines20 relating to Mainstream structural funding is designed essentially vocational training and employment policy to high to support Member State policies in the drive towards light policy priorities relevant to planning and pro economic and social cohesion. The new system also gramming under Objectives 3 and 4. These provided for Community Initiatives to promote the included the special attention needed for persons Community dimension through innovatory transna with particular disadvantages in relation to the tional projects testing new approaches which could labour market such as migrant workers and people influence mainstream practice. The Human Resources with disabilities. Initiatives - EUROFORM, NOW and HORIZON were approved on 18 December 199021 They involved The need to promote the integration of women in mainly the ESF, accounting for almost 3.8% of its occupations in which they were under-represented total resources for 1989-1993, with investment in was also highlighted. Emphasis was put on innova infrastructure aided by the ERDF. tion, transnational projects and training in advanced technology and the improvement of EUROFORM (ECU 300 million) was aimed at devel training structures. oping new qualifications and employment opportuni ties for the single market; NOW (ECU 156 million) was Special efforts were made in several Objective 1 concerned with promoting equality of opportunity for regions to raise training standards through multi women vis-a-vis the labour market and HORIZON fund programmes with the ERDF financing infra (ECU 304 million) with improving job prospects for structure and equipment and the ESF supporting people with disabilities or at risk of exclusion from training and related measures. employment for other reasons.
The ESF also contributed, during 1989-1993, a total of ECU 125 million to the human resource content of the following other Community Initiatives:
ENVIREG, RENAVAL, PRISMA, REGIS, INTERREG, STRIDE, REGEN, KONVER, RECHAR, LEADER, RESIDER, RETEX and TELEMATIQUE.
BREAKDOWN OF COMMUNITY INITIATIVES BY STRUCTURAL FUND (1989-1993) current prices ECU million
EAGGF 323 (6%: ESF 885 17%
ERDF W 4079 (77%) Source: 'The impact of structural policies on economic and social cohesion in the Union 1989-99’. European Commission 1997 p. 154
20 C45/6 OJ of 24.2.89 21 OJ No C327, 29.12.1990 The 1993 review
The review of the Structural Funds in 1993 took place against a background of rising unemployment, a range of vigorous, inter-related responses by suc cessive European Councils in terms of both funding and policy measures and further moves towards the strengthening of economic and social cohesion. Edinburgh
The European Council at Edinburgh in December 1992 decided on significant increases in the budgets of the Structural Funds. Almost ECU 142 billion was allocated for the period 1994-1999, i.e practically double the amount for the preceding period. Nearly BREAKDOWN OF STRUCTURAL FUND ALLOCATIONS 70% of this was for the Objective 1 regions; assistance (1994-1999) to Greece, Spain, Ireland and Portugal was to double in real terms between 1992 and 1999. In addition, (1994 prices) the decision in principle was taken to set up the (excluding Community Initiatives) Cohesion Fund, financing environmental projects and trans-European transport networks in these four coun EAGGF tries with GDP less than 90% of the EU average. A new Structural Fund, moreover, was instituted to assist restructuring in the fisheries sector - the Financial Instrument of Fisheries Guidance (FIFG).
This massive increase in aid, particularly for the least developed regions, anticipated the additional impetus given to economic and social cohesion in the Maastricht Treaty, then under negotiation, particularly in the context of moves towards economic and mone tary union and the establishment of a single currency.
COMPARISON OF STRUCTURAL FUND ALLOCATIONS 1989-93 AND 1994-99 ECU billion (excluding Community Initiatives) ESF FUNDING PER OBJECTIVE AND COMMUNITY INITIATIVES (1994-1999) (1994 prices) | 1989-1993 (current prices)
1994-1999 (1994 prices) Objective 5b Objective 6 0.4%
Community initiatives 9%
Objective 1 47.6%
Source: 'The impact of structural policies on economic and social cohesion in the Union 1989-99'. European Commission 1997 p 154/155 White Paper on Growth, The greatly increased resources agreed at Edinburgh Competitiveness and Employment raised structural funding for 1994-1999 to 33% of the EU budget as compared with 20% for the preced Despite the growth engendered by the creation of the ing period. The White Paper called for the develop Single Market which contributed to the creation of 9 ment of new economic activities in viable sectors and million jobs in the Union, the rise in unemployment, greater efficiency in education and training structures which had started in the early 70s and paused only for and in the operation of the employment market. a few years in the late 80s, had resumed its upward Guidance and placement was to be made more effec trend and affected 16 million people in 1993. The tive, targeting local job prospects identified through Commission's White Paper on Growth, Competitiveness co-ordinated action by public and private bodies. and Employment, endorsed at the Brussels European Council of December 1993, proposed solutions based Youth unemployment was a particular concern; the on increasing the competitiveness of the European ESF was to be used to help implement a guarantee to Union, seeking healthy growth leading to stable jobs, provide access to recognised education or training for and enhancing flexibility in the labour market with the all young people under 18; standards needed to be emphasis on new kinds of jobs. raised in education and initial training to encourage an entrepreneurial spirit among young people. The White Paper called for a significant increase in investment in human capital and greater and more Greater effort was also called for to help the adult effective efforts in vocational training. This implied long-term unemployed, whether registered or not, into increasing skill levels, especially in the new technolo employment pathways, making greater use of essential gies, and promoting life-long learning. supports to training such as child care, literacy and numeracy instruction and confidence-building.
The importance of equality of treatment between men and women was again emphasised with a call for the elimination of fiscal barriers that limited women's par White Paper ticipation in employment on equal terms.
Four inter-dependent targets Two additional considerations were highlighted which influenced the 1993 Review. The predicament of the ♦ adapt working time and incidence of groups at risk of social exclusion was seriously wors taxation to encourage job creation and ening and although they had, of course, been eligible labour market flexibility; in the previous period, it was felt essential to give ♦ improve employment situation in the more emphasis to this problem. Secondly, there was least-developed regions and for growing awareness of the importance of the preventive socially disadvantaged groups; tackle aspect of the fight against unemployment; incentives youth and long-term unemployment, should be provided to anticipate changes in job skills social exclusion and promote equal in industry and services in accordance with the redef opportunities. Employment services to inition of ESF measures in Article 123 of the become more productive; Maastricht Treaty. ♦ increase the stock of human capital through life-long learning and upgrad All these considerations had implications for a whole ing of skills; basic training for new range of issues within the domain of the Structural technologies; Funds, especially the ESF, and profoundly affected ♦ develop new, labour intensive opportu changes made to the rules for the period 1994-1999. nities in environment, health and care As in the 1988 reform, the legislative framework con sectors and boost employment in the sisted of two Regulations common to all the Structural audio-visual sector, arts, culture and Funds and specific Regulations relating to the individ tourism. Emphasis on SMEs. ual Funds. Council Regulation (EEC) No 2081/93 re defined the tasks of the Funds and laid down how they should be co-ordinated between themselves and with the EIB and other financial instruments. Council Regulation (EEC) No 2082/93 contained further pro visions which applied to all the Structural Funds. Finally specific provisions relating to the ESF were contained in Council Regulation (EEC) No 2084/93.22
22 For texts of these Regulations see appendices. CHAPTER 3
New Objectives COMPARISON OF STRUCTURAL FUND ALLOCATIONS BY OBJECTIVE 1989-1993 New Objectives were set for the period 1994-1999 AND 1994-1999 but the general structure and principles established in ECU million 1988 were maintained with adjustments to take 1989-1993: current prices account of the practical lessons of the earlier period 1994-1999: 1994 prices and significant policy developments in the meantime. 1989-1993 1994-1999 Objective 1 43818 94000 A new Objective 3 combined the old Objectives 3 and 4 - combating long-term unemployment and integrat Objective 2 61281 15400 ing young people into working life. In addition, spe Objective 3+4 6670 15200 cific reference was made to promoting equal opportu Objective 3 12900 nities in the labour market between men and women Objective 4 2300 and providing pathways to employment for people at risk of social exclusion. Definitions were, moreover, Objective 5a 4100 6113 made more flexible, extending eligibility to people at Objective 5b 2231 6859 risk of long-term unemployment or exclusion from the Objective 6 700 world of work, as well as those already in either of these situations.
A new Objective 4 was introduced to provide through out the Union, without regional limitation, training and guidance for workers facing change in industrial or COMPARISON OF EUROPEAN SOCIAL FUND production systems and for developing or improving ALLOCATIONS BY OBJECTIVE - 1989-1993 training structures in this field. A further feature which underscored the new preventive approach was the AND 1994-1999 ECU million financing of the forecasting of change and its conse 1989-1993: current prices quences for vocational qualifications. 1994-1999: 1994 prices
The remaining Objectives continued as before with the ESF 1989-1993 1994-1999 1 acting in coordination with the development aims of the other Funds to support employment, growth and stability. Objective 1 11329 22051 Objective 2 1469 3533 A new Objective 6 was created on the accession of the Objective 3+4 6670 15200 newest Member States on 1 January 1995. Both Sweden and Finland contain vast areas with extremely low popu Objective 3 12900 lation density whose structural development pose partic Objective 4 2300 ular problems which were not covered by the criteria for Objective 5b 316 1041 existing Objectives. Such areas come within the new Objective 6 167 Objective 6 (where population density is no more than 8 persons per square kilometre); they are accorded the Source: 'The impact of structural policies on economic and social same treatment as the Objective 1 regions. cohesion in the Union 1989-99'. European Commision 1997
1 Objectives 1994-1999 Funds Involved I
1 development of the least prosperous regions. ESF, ERDF, EAGGF, FIFG
2 adapting regions of industrial decline ESF, ERDF
3 facilitating the integration into working life of young people and ESF those exposed to exclusion from the labour market; combating long-term unemployment; promoting equal opportunities for men and women in the labour market.
4 facilitating the adaptation of the workforce to changes in production. ESF
5 (a) speeding up the restructuring of agriculture and fisheries EAGGF, FIFG (b) furthering the development of rural areas ESF, ERDF, EAGGF
6 assisting the development of sparsely populated areas ESF, ERDF, EAGGF FIFG
EIB loans available under all Objectives
EUROPEAN SOCIAL FUND 25 PART
CHAPTER 3
■ Objective 1
■ Objective 2
□ Objective 3
□ Objective 4
I Objective 5b
H Objective 6
!■ ' )
26 Other changes common to all Structural Funds
Regional Concentration Partnership
While the criteria remained unchanged, the Objective 1 The partnership requirements in the new Regulations regions were enlarged to include the new German were amended to include economic and social partners Lander, and parts of Belgium (Hainaut), France in the Member States. In the case of the ESF, this has (Avesnes, Douai and Valenciennes), the Netherlands particular importance for Objectives 3 and 4; much of (Flevoland), Spain (Cantabria) and the UK (the the experience and expertise in dealing with problems Highlands and Islands and Merseyside). Of the existing of social exclusion and industrial change lies outside regions, only Abruzzi (Italy) failed to qualify, with effect the public sector and success in these fields can only from the end of 1996. Nevertheless, the financial con be based on a bottom-up approach with the full partic centration on Objective 1 regions continued; 68% of all ipation of all relevant actors. The participation of the Structural Fund resources will go to Objective 1 in the Social Partners is also particularly relevant for ESF pro current period and in the case of the four Member jects; the Commission wishes to see this practice States eligible for the Cohesion Fund, Structural Fund become more widespread and effective. allocations will double between 1992 and 1999. The ESF Committee Objective 2 In the case of the ESF, the committee set-up in the Treaty of Rome (1957) comprising representatives of The new Regulations for Objective 2 contained two governments, trade-unions, and employers continues to: main changes. The eligibility criteria were widened, particularly to include areas undergoing restructur ♦ advise the Commission on proposals ing in the fisheries sector. Secondly, the partner relating to the ESF; ship principle was expanded to give Member States ♦ provide a valuable forum for discussion greater say in determining eligible areas. Growing and feedback on the implementation economic and unemployment problems made the of the ESF. selection of regions very difficult; the list ultimately agreed covers 16.8% of the Union's population, a Information and publicity little above the 15% envisaged. The new Coordination Regulation23 also added to the Objective 5(b) previous rules, now requiring Member States to imple The selection criteria for eligible areas were relaxed ment measures to make the general public as well as in the 1993 rules which provided more flexibility, potential beneficiaries aware of the various measures taking in fisheries restructuring and giving greater financed by the Structural Funds. weight to depopulation and low population density factors. The new list covers 8% of the EU popula Additionality tion as compared with 5% in the previous period. The 1988 provision was strengthened in the new rules Programming to require the Member State to maintain its public structural or comparable expenditure at least at the The new rules provided for the option of a Single same level as in the previous programming period. Programming Document (SPD) to replace the CSFs and OPs. Account was to be taken of macro-economic condi This reduced administrative procedures and so helped to get tions, and specific circumstances such as privatisa tions, exceptional levels of public expenditure in the programmes under way quicker, while at the same time short preceding period and business cycles. Detailed rules ening and simplifying the procedures for transfers to cope for verifying additionality before and during imple with variations in priority needs during the operational phase. mentation were to be included in the programming Because of these advantages SPDs have become the pre documents. ferred method and most of the programming documents in the current period take this form. Most SPDs and OPs run for the six-year period 1994-1999 but in the case of Objective Assessment and monitoring 2 two phases were envisaged, 1994-1996 and 1997-1999. Objective 4 was also programmed in two phases, to facilitate Greater emphasis on assessment and monitoring is the revision of operations which initial experience of this new another feature of the new rules. This starts with Objective might show to be necessary. agreement on a definition of the initial situation and
23 Council Regulation (EEC) No. 2082/93 PART 1
CHAPTER 3
on results to be achieved at various stages of the pro nity between men and women, competition rules and grammes. Indicators regarding the global situation of environment policy; plans must explain how national a region are drawn up for the appraisal of plans, environmental authorities are involved both in the pro together with quantified targets. At a more detailed gramming and in the appraisal of the environmental level, specific strategic and policy aims are identified impact of the plans to ensure sustainable development. for each priority, indicating the expected improve ments and outputs. Detailed targets are set for each European Parliament measure including physical aims such as numbers of beneficiaries. The new rules provided for greater involvement of the European Parliament in the implementation of the The monitoring committees play an important role in Structural Funds. Parliament would receive lists of overseeing the effectiveness of ESF assistance and in Objective 2 and 5b areas, development plans for these proposing adjustments to take account of modifica regions submitted by Member States, texts of all CSFs tions to the programmes in the light of practical, oper and SPDs and arrangements for monitoring and public ational experience. This function is of particular impor ity. Proposals for Community Initiatives now have to be tance in tailoring programmes to evolving Community notified to Parliament so that its view can be taken into policy. account before adoption.
Appraisal and evaluation In fact, following a code of conduct agreed between the Commission and the Parliament in 1993, the latter This is the joint responsibility of the Commission and the receives regular and detailed information on all the Funds. Member States and should be carried out in partnership. A joint working group of Commission officials and mem Effectiveness is gauged in relation to the measures bers of Parliament complements this information flow. themselves, their contribution to wider programmes and their impact on social and economic cohesion. ESF FUNDING 1994-1999 (PER HEAD OF IVIid-ternn review POPULATION OF WORKING AGE: 16-64)*
A mid-term review of the current programming period involving evaluation by independent experts was recently completed; the results were not available as this document went to press. Compatibility with other Community policies
The 1988 legislation required that measures financed by the Structural Funds should be compatible with other Community policies. The new rules maintain this provision with specific mention of equality of opportu-
ESF FUNDING PER MEMBER STATE (1994-1999)
ECU ECU ** million
Austria 581 Belgium 829 Denmark 397 Finland 603 France 5292 Germany 7411 Greece 2703 Ireland 2118 Italy 5610 Luxembourg 28.2 Netherlands 1506 Portugal 3244 Spain 9338 Sweden 711 * Population Statistics from 1995-Eurostat, Community Labour Force Survey 6225 ** prices valid at time of Decisions PART 1
CHAPTER 3
♦ Greece, Ireland Portugal and Spain Main features 50 - 75% ♦ Other Objective 1 and of the new ESF rules Objective 6 regions 60 - 70% ♦ Other regions This section deals with the main features of the work 25 - 50% ings of the ESF within the overall framework already described. Summary descriptions of regulatory provi In those Objective 4 projects, for example, which are sions are used in the interests of brevity; the full texts part-financed by private firms, it is recommended that of the Regulations relevant to the ESF are reproduced the investment be shared equally by the firms con as appendices to this report. cerned, the national authority and the ESF.
Concentration of assistance Priorities The new ESF Regulation requires assistance to be con centrated on the most important needs and the most The current priorities of the ESF may be summarised effective operations. This has led in practice to focus under the following three themes: ing, in the programming of CSFs and SPDs, on one or more of the following aspects of the priority needs of ♦ improving access to and the quality of the regions in question:- education and initial training as well as boosting human potential in research, sci ♦ geographic targeting; ence and technology. Special emphasis is ♦ measures to strengthen capacity and put on helping young people with no or efficiency of education, training and few qualifications to make the transition employment services; from school to the world of work; ♦ innovative measures and projects designed ♦ increasing competitiveness and pre to bridge gaps in existing services; venting unemployment by adapting the ♦ measures to raise standards in quality, workforce to the challenge of change efficiency and certification and to through a systematic approach to con increase the number of trainees tinuing training; expected to progress to further training ♦ improving the employment opportunities or employment; of those exposed to long-term unemploy ♦ projects offering a mix of training, coun ment and exclusion from the labour mar selling and job search. ket by developing a package of measures forming a pathway to integration. From the financial perspective, the Regulations set minimum as well as maximum grant rates. The range The issue of equal opportunities runs right through all of grants permitted for Objective 1 and 6 regions is 50 three priority themes. Equal access to education, - 75% of total eligible costs and 25 - 50% for other training and employment opportunities needs to be regions. In exceptional cases, however, grants of up to ensured. In addition to care services for dependants 80% are payable in Greece, Ireland, Portugal and this may require more flexible delivery of education, Spain and up to 85% in very remote regions. training and employment services.
Proposed rates
The Commission has set guidelines, operated in a flex ible manner, to ensure that assistance is provided for a relatively small number of coherent measures at a substantial rate of intervention. These guidelines sug gest that the following rates should apply:
EUROPEAN SOCIAL FUND 29 1 ESF allocations per priority theme (1994-1999) (all Objectives) 1 Labour Market data to be
Integration of young job-seekers 20.2% included in plans Support for employment, growth and stability 19.0% ♦ imbalances between supply and demand Integration of long-term unemployed 18.8% (including female employment); Improvement of education and training systems 12.2% ♦ characteristics of vacancies; Integration of people at risk of exclusion 10.8% ♦ employment opportunities; ♦ measures proposed and Adaptation to industrial change 9.9% numbers involved; Technical assistance 3.1% ♦ how equality of opportunity is promoted; Promotion of equal opportunities * 3.1% ♦ role of economic and social partners; Boosting human potential in research, science and technology 2.4% ♦ involvement of bodies combating long term and youth unemployment and Training of public officials 0.5% social exclusion; Source: The Structural Funds in 1995 - Seventh Annual Report ♦ skill deficits relating to industrial * This theme is common to all programmes. Figure relates to specific actions only. change; links with other EU programmes and involvement of training bodies.
Plans Actions and Target Groups The following tables summarise the categories of The Commission's approach in examining plans sub persons eligible for the various types of action mitted by the Member States from the perspective of financed by the ESF.24 It will be noted that there is human resource development, and in subsequent dis special provision in Objective 1 and 6 areas for the cussions with Member States, is to ensure that improvement of education and training systems resources are concentrated on the greatest needs and and for the training of public officials in ESF- the most effective operations. related issues. It must be clear that the strategy, measures and finan It should be noted that in Objective 1, 2 and 5b cial allocations are appropriate to achieving the tar regions, the eligibility rules, also cover workers in gets, that there is a proper balance between the vari employment, especially in SMEs and the staff of ous Structural Funds and that their respective roles research establishments. Elsewhere in the Union, are complementary. It is important to ensure that there those in employment are also eligible for assis is a reasonable balance between innovation and conti tance in the context of industrial change projects nuity and that the principle of equal opportunities is financed under Objective 4. observed across all measures.
The potential for synergy with other Community pro grammes concerning industrial change and vocational Eligible Expenditure training is also verified and it has to be clear that the education, training and employment services concerned ♦ Trainee costs - remuneration, subsis have the capacity to deliver what is required and that tence and travel; the appropriate accreditation methods are in place. ♦ Course preparation, operation, manage The involvement of the social partners and delivery ment and evaluation (after deduction organisations in planning and implementation also has of any revenue which may be involved); to be assured and it has to be verified that information and publicity requirements are met. ♦ Cost of employment aid (as defined by the partnership All plans have to include adequate financial control, in the programming stage). monitoring and evaluation systems.
24 Council Regulation (EEC) No. 2084/93 PART
CHAPTER 3 I
Actions Eligible Groups 1
Objective 3
• Initial and continuing vocational training Unemployed (whether registered or not) (including apprenticeships for young people) exposed to long term unemployement • Upgrading of basic skills (including literacy and numeracy) Young people in search of employment • Guidance, counselling , community employment, Adults and young people exposed work-placement and job-search assistance to exclusion from the labour market • Temporary employment aids (including aids to promote examples: geographical and occupational mobility, and to the very long-term unemployed, encourage employers to introduce more flexible people with disabilities, patterns of work and recruitment subsidies) lone parents, older people, • Development of training, employment and support travelling people, ex-offenders, structures, including training of staff and the provision drug addicts. of care for dependants • Specialised advisory services for those exposed to exclusion • Action to promote equal opportunities for men and women especially in areas of work where women are under-represented (including confidence building and information campaigns)
Objective 4
• Anticipation of labour market trends and vocational Workers facing industrial qualification requirements change or changes in • Vocational training productions systems, especially those • Retraining threatened with unemployment • Guidance and counselling or working in SMEs. • Assistance for the improvement and development of training systems
Objectives 1, 2, 5b and 6 As under Objectives 3 and 4 with the addition of:
Continuing vocational training The unemployed and workers, especially Guidance and counselling those in SMEs and those threatened Development of training systems with unemployment. Improvement of employment services Boost human potential in research, science and technology (including post-graduate training and the training of managers and technicians in research establishments)
Objectives 1 and 6 As under Objectives 3 and 4, 1,2, 5b and 6 with the addition of:
• Strengthening education and training systems The unemployed, • Training of staff Students and staff of education and • Building links between training centres and education training establishments, establishments and firms Public officials. • Supporting training within the national secondary and higher education systems where there is a clear link with the labour market, new technology or economic development • Training of public officials for the implementation of development and structural policies
EUROPEAN SOCIAL FUND Article 6 - support for innovation Information strategy In addition to the Community Initiatives, the ESF Finally, special attention is also being paid to pro Regulation 25 continues to provide other means, on moting information and visibility to raise aware a smaller scale, to finance innovative projects. Up ness of the ESF and the valuable contribution it to 1.5% of the Fund’s budget may be used for makes both at European and at Member State studies initiated by the Commission, or pilot pro level. The Commission has drawn up a new strate jects relating to the Community labour market in gic communications and information action plan connection with the implementation of Community following a communications audit and after con vocational training policy, exchanges of experi sultation with Member States. This involves: ence, information and publicity. ♦ information collection and distribution; Social Dialogue ♦ an expanded range of new publications and other information materials; Article 6 also supports projects implemented in ♦ a planned events programme; the context of the Social Dialogue. Actions are ori ♦ a selective editorial media information ented towards three broad themes: the economic programme. and institutional framework of the EU; new meth ods of production and work organisation; the intro The action plan sets out a new, consistent and clear duction of new technologies in all sectors of the way of describing the policy and purpose of the ESF, EU economy. These projects involve people from encapsulating its key messages so as to create over both sides of industry and services in two or more time a cumulatively powerful and persuasive impact Member States and deal with transferring spe on the ESF's key audiences. The present document is cialised knowledge relating to modernising produc regarded as a significant step in this direction. tion apparatus and complementing related work on adaptation to industrial change financed through A Commission Decision of 31 May 199426 lays down Objective 4 and ADAPT. the manner in which the publicity obligations of the Member States under Article 32 of Council Regulation (EEC) 2082/93 should be carried out.
25 Council Regulation (EEC) No. 2084/93. Article 6. 26 OJ L 152/39 of 18.6.94 Community Initiatives
The 1993 Regulations renewed the Commission’s The structure was modified with the introduction of a mandate to promote Initiatives designed to strengthen new strand, INTEGRA, specialising in the employment the Community dimension of the operation of the barriers faced by immigrants, refugees and other peo Structural Funds, up to a maximum of 9% of the ple at risk of exclusion. HORIZON continued to serve Structural Funds budget. the needs of people with disabilities.
The policy considerations outlined above applied The new Adapt Initiative (with a budget of ECU 1.4 equally to the Community Initiatives which were insti billion), drawing on previous experience with tuted to support transnational projects developing EUROTECHNET and EUROFORM, complements the innovative approaches to the themes financed under new Objective 4, assisting innovative approaches to the mainstream ESF. the challenges of preparing workers for industrial change. The Commission proposed to group the Initiatives around five main themes: A new priority within the Adapt Initiative -Adapt-Bis- was added to address the labour market implications ♦ cross border, transnational and inter of the Information Society. regional cooperation; A reserve budget was drawn on to finance the new strands; this provided an additional ECU 460 million ♦ rural development; for Employment and Adapt. ♦ the extremely remote regions; Special Initiative for Peace and ♦ employment and the development of Reconciliation human resources; The Peace and Reconciliation Initiative applies to ♦ management of industrial change. Northern Ireland and the six border counties of Ireland. The Structural Funds allocated some ECU Here, as with mainstream funding, the Structural 300 million (80% for Northern Ireland and 20% for Funds combine in an integrated way towards the Ireland) to this Initiative for the period 1995-1997, achievement of the aims. While there is an ESF com ECU 128 million of which was provided by the ESF. ponent in most of the Initiatives, this Fund predomi For the years 1998 and 1999, ECU 100 million nates in the case of Employment and Adapt. will be provided each year with the ESF contribut ing nearly 45% of the total allocation. The aim of The new Employment Initiative approved in 1994, with this Initiative is to consolidate peace moves in an ESF budget of ECU 1.5 billion, contained three Northern Ireland by providing the necessary interdependent strands, two of which were developed resources to promote the social and economic from the original NOW and HORIZON Initiatives : regeneration of the areas that have suffered most in the conflict. ♦ NOW - to promote equal opportunities for women; ♦ HORIZON - promoting pathways to employment for persons with disabilities and others threatened with exclusion; ♦ YOUTHSTART - integrating young peo ple under 20 into the labour market, especially those without adequate train ing or qualifications. The Structural Funds as a support for the European Employment Strategy
Since the 1988 reform, the Structural Funds have larly to the annual application of the deflator27 which been operating in an integrated co-ordinated way to amounted to over ECU 2.1 billion in 1995 and to the achieve specific Objectives. At the same time, they re-allocation of unspent resources. These and subse have been actively contributing to aspects of the quent recommendations were also implemented in the global strategy contained in the White Paper on negotiation of the 1997 phase of the Objective 2, 3 Growth, Competitiveness and Employment and devel and 4 programmes and in the programming of oped further by successive European Councils. Structural Fund assistance to the new Member States.
The European Council at Essen (December 1994) made The work of the Commission and Member States in five recommendations relating to employment, calling for: developing a common employment strategy taking in macroeconomic and structural policies as well as labour market reforms, to encourage active rather than passive ♦ greater investment in vocational train approaches, was endorsed by the European Councils ing, especially for young people and for which followed Essen. This is of particular importance life-long learning; for the ESF as the Union's main financial instrument to ♦ an increase in the employment-inten- support the Member States in improving the skill levels siveness of growth through more flexible and adaptability of the workforce, raising standards in organisation of work, moderation of the educational and training systems and providing for wage settlements and support for job people facing the greatest obstacles to getting jobs. creation in growing sectors such as environmental and social services; The Structural Funds have a pivotal role to play in helping Member States make their adjustments and ♦ a reduction in non-wage labour costs; reforms required to make this policy operational. ♦ a move from a passive to an active labour market policy, eliminating disin centives, providing suitable income The ESF, as a policy-driven instrument, continues to support measures and reviewing the promote greater coherence with the European employ effectiveness of instruments of labour- ment strategy on an ongoing basis. Further policy doc market policy; uments28 in 1996 contained the following four main recommendations to increase the impact of the ♦ improved measures to help people hit Structural Funds on employment:- particularly hard by unemployment, especially unqualified school leavers, ♦ the available financial margins for the long-term unemployed, unemployed manoeuvre (ECU 5.5 billion additional women and older job seekers. resources provided by the deflator effect, and the ECU 8 billion for the The 1993 reform of the Structural Funds preceded second phase of Objective 2 program Essen but already included many of the policy mea ming) should be used to give priority to sures in gestation which later figured in these recom job creation and employment; mendations. ♦ the interim and mid-term evaluation Many of the CSFs and SPDs had already been exercises should give preliminary indi approved, but the Member States and the Commission cations on the contribution of the were able, through the Monitoring Committees, to Structural Funds to the Essen strategy ensure that project selection systems took due account and, where necessary, changes should of the Essen recommendations. This applied particu be introduced to improve effectiveness;
27 Mechanism used to adjust national allocations, approved in ECU, to currency changes. 28 Commission Communication on Structural Assistance and Employment, March 1996 and the Communication on Action for Employment in Europe - A Confidence Pact3. PART
CHAPTER 3
♦ there should be more emphasis on antic An action plan to improve budget forecasting and ipation of industrial change; on innova execution has been implemented and is already tory measures for SMEs and on stronger yielding good results. Work is also progressing well on links between the Structural Funds and evaluation, with independent evaluators now in place the European Investment Bank; in most of the Member States. The mid-term review should provide pointers to possible improvements. ♦ encouragement should be given to local initiatives for development and employ ment, including territorial pacts which The objective in the Amsterdam Treaty (June mobilise all the key actors to boost 1997) of promoting a high level of employment, employment and job creation. requiring this to be taken into account in all Community policies, further underlined the need These recommendations have been followed up in the for a global integrated approach. partnership between Member States and the Commission. The mid-term review will also provide This led to the European Council Decision at Luxembourg material on how to improve the effectiveness of the on 20/21 November 1997, setting guidelines - including Structural Funds. targets to be achieved within five years - offering the young and long-term unemployed a training opportunity The Dublin Summit (December 1996) welcomed the within six or twelve months respectively idea of Local Territorial Pacts. The Commission drew the attention of Member States, social partners and Links with other EU programmes Monitoring Committees to the possibilities of using financial margins in the Structural Funds, and the Policy development and implementation under the resources available under technical assistance to organ Structural Funds are also linked to other EU pro ise the implementation of the employment actions grammes, especially Leonardo Da Vinci, which sup included in these Pacts, scheduled to begin in 1997. ports and complements actions in the Member States to improve the quality of training policy and practice The negotiations for the new Objective 2 programmes through transnational projects. Close synergy has been were carried out in the framework of guidelines giving developed with ESF operations, especially under the greater weight to human resource development and Employment and Adapt Initiatives. Socrates which is non-material investment as well as new sources of jobs intended to raise teaching standards, adapt training and local employment initiatives. systems to new technologies and promote life-long Developments in 1996/1997 learning is also close to ESF Objectives. The prevention of social exclusion, a main theme of the A labour market expert was appointed in each Member ESF, also forms part of the Leonardo and Socrates State to recommend means of improving the targeting of objectives and has been supported by other EU pro Objective 3 programmes to people most in need. grammes in this field such as the actions initiated under Procedures are reviewed by the Member States and the Helios to promote the integration of people with disabil Commission to identify the scope for further simplification and streamlining within the existing rules. The Commission ities. has put proposals on this topic to the ESF Committee. Areas being examined include:- complexities in financial, Furthermore, the equality of opportunity provisions in information and communication flows; scope for the sim the Structural Fund legislation gives practical support plification of procedures through a more flexible interpreta to important aspects of the Fourth Action Programme tion of existing regulations and the identification of points on Equal Opportunities for Men and Women. which could be changed at the next review of the Funds.
EUROPEAN SOCIAL FUND 35 Future developments
The Commission has announced in Agenda The new Objective 3 should complement the European Employment Strategy by: 2000,29- (proposals for tackling the future chal lenges of the Union) the main lines of its prelim ♦ accompanying economic and social change; inary thinking on Structural Funding for the ♦ promoting life-long education period 2000-2006, which is expected to see the and training systems; ♦ supporting active labour market accession of several new Member States. While policies to fight unemployment; the current way of working is set to continue, a ♦ combating social exclusion. considerable further effort in simplification and concentration is envisaged.
The main points are as follows: Concentration ♦ the number of Objectives should be The percentage of the EU population (15 Member reduced to three: Objective 1 (least States) covered by Objective 1 is set to be reduced developed regions), Objective 2 (cover from 51% to 35-40%. Because of their high level ing regions with serious structural prob of unemployment, 60% above the EU average, lems and the present Objectives 2 and support for the Objective 1 regions will be main 5b) and Objective 3 (Human tained at its present level of two-thirds of total Resources) which would extend over the structural funding. ECU 45 billion is to be reserved entire territory of the EU. There would for the new Member States out of a total budget of be special arrangements for the current ECU 275 billion (at 1997 prices) for structural Objective 6 regions; funding in the period 2000-2006.
♦ the number of Community Initiatives Increasing efficiency would also be reduced to three dealing Management simplification is also proposed - giving with cross border and inter-regional more scope to monitoring committees in the imple cooperation, rural development and mentation of programmes. More financial leverage is human resources respectively; also envisaged, involving greater use of loans, guar antees and equity participation in addition to grants. ♦ innovative measures and pilot projects Additional payments (up to 10%) could be made by would be strengthened to concentrate the half-way stage to regions with verifiable good on significant projects and simplifying records in budgetary implementation. implementation. Review The approach, set out in Agenda 2000, will be the basis for the Commission's proposals for the next review of the Structural Fund Regulations due to be completed by 31 December 1999.
29 COM(97) 2000 - Volume 1 CHAPTER 4 Austria
CHAPTER 5 Belgium
CHAPTER 6 Denmark
CHAPTER 7 O Finland CHAPTER 8 France E S F PROGRAMMING 1994-1999 overview of the situation in each Member State CHAPTER 9 Germany
CHAPTER 10 Greece
CHAPTER 11 Ireland
CHAPTER 12 Italy
CHAPTER 13 Luxembourg
CHAPTER 14 The Netherlands
CHAPTER 15 Portugal
CHAPTER 16 Spain
CHAPTER 17 Sweden
GeneralCHAPTER comments 18 United Kingdom 38 Austria
SECTION 1 Economic and labour market situation at the time of programming of Community structural funding for the period 1995-1999
Economic situation
The Austrian economy, which had been progressing, was 1993 and reached 31.9% in 1994. The rate for peo ple who had been unemployed for more than one year hit by recession in 1993, a year in which GDP declined stood at 17% of the unemployed in 1993, and reached 18.5% in 1994. by 0.3% and exports were reduced. Industrial produc
tion, tourism and investment all suffered. However, the Seasonal workers (mostly in tourism, agriculture, forestry and construction) made up a large proportion of recession proved to be a short-term phenomenon and the unemployed (40%), as did those in the services sector. During 1993 and 1994, 6.8% of all registered by 1994 the economy had improved, with economic unemployed were women and in 1993, between 10 and 11% of the working population over 50 years were growth rising by 2.7%; this progress continued into unemployed. People with disabilities represented about 10% of the unemployed and immigrants were also 1995, the year in which GDP per head was 13% above badly affected. The recession substantially reduced the chances of these groups finding employment. The situ the EU average. ation was made worse by the fact that many unem ployed people only had compulsory schooling; 45% of unemployed people only had the lowest level of educa tion and the unemployment rate among this group was Labour market 70% higher than the average. Many young people, especially young girls, experienced difficulty in finding Traditionally Austria has low unemployment, but for work because of their lack of qualifications. some years prior to 1995, the country experienced an upward trend, which was compounded by the reces The Austrian labour market policy is aimed at creating sion. Though each Land was hit by the recession to quality jobs, especially for women, through investment varying degrees, related to their differing industrial in infrastructure, export promotion and the improve make-up, there are general features which applied to ment of the investment and research climate in gen the labour market across all regions. eral. Extending job-related training and childcare are In the period up to 1993, some 300,000 jobs were recognised as central. created, but the size of the population of working age rose and there was a significant shift from the primary The Austrian employment programme comprises mea and secondary sectors to the tertiary; factors which sures to improve active labour market policy targeting along with the recession, resulted in a rise in unem the long-term unemployed, the disadvantaged, women ployment which reached 6.8 % (220,000 people) in and young people. Actions include: stepping up train 1993. A year later unemployment had decreased ing related to skills and jobs; better job counselling, slightly to 6.6% but at the time of Austria's accession information and placement services; programmes for to the EU the upward trend had resumed. Moreover, the integration of the long-term unemployed including Austria had anticipated redundancies in certain sec training; efforts to increase the number of apprentice tors resulting from accession to the EU. Long-term ship places; assistance for the creation of self- unemployment as a proportion of the total unemployed employed activities, business and cooperative start (in Austria, classified as people who have been unem ups; support for companies in job creation and actions ployed for 6 months or more) also rose to 24.8% in to make daily and weekly hours more flexible. 40 AUSTRIA Structural Fund programmes in Austria in programmes Fund Structural 2 SECTION RADW O ALCTO B FN (xldn Cmuiy Initiatives) Community (excluding FUND BY ALLOCATION OF BREAKDOWN RADW O ASSAC B OJCIE N SUC O FNIG 1995-1999 FUNDING OF SOURCE AND OBJECTIVE BY ASSISTANCE OF BREAKDOWN o C 16 ilo o wih h EF opnn is component ESF the which of million 136 ECU to structural funding. In addition Austria also receives receives also Austria addition In funding. structural and 4 3, Objectives EU-wide the under Austria to tions assistance from the Community Initiatives amounting amounting Initiatives Community the from assistance A. Allocation by Fund and and Fund by Allocation A. vrte eid 9519 Srcua Fn contribu Fund Structural 1995-1999 period the Over million, equivalent to approximately 36.4% of total total of 36.4% approximately to equivalent total will million, 5b and 2 1, Objectives regional the and 5a C 5 million. 50 ECU 531 ECU about to amounts aid ESF billion. 1.46 ECU oa 136 Total Total eea Ttl19 8 424 581 1596 Total General Adapt Initiatives Community betv 461 334 101 4 Objective 3 Objective 2 Objective 1 Objective betv 5 411 Others 2 5b Objective Fish 5a Objective betv 5 Agric. 5a Objective mlyet2 23 23 Employment Objective oa Srcua Funds StructuralTotal 1460 386 102 165 11 S ERDF ESF 334 3 352 531 31725 107 31 33 61 72 67 14 72 16 11 7 164 175 214 72 ECU million - prices validDecissionspricestime of at - million ECU AG FIFG EAGGF 386 589 2 575 2 2 CHAPTER 4 AUSTRIA
BREAKDOWN OF STRUCTURAL FUND ALLOCATION BY OBJECTIVE
Objective 1 Objective 5b 11.3% 28.1% Objective 2 6.9% Objective 5a 26.6% Objective 3 22.9%
Objective 4 4.2%
BREAKDOWN OF ESF ALLOCATION BY OBJECTIVE
Objective 5b 13.5% Objective 1 6.3%
Objective 4 11.5% Objective 2 5.7%
Objective 3 63%
The Austrian authorities have chosen to programme B. Main features of the ESF actions co-financed by the Structural Funds through component in the Structural Single Programming Documents (SPDs). Fund programmes In total there are fourteen Austrian SPDs as follows, all of which include an ESF component : Objective 1: 1 multifund SPD Objective 2: 4 multifund SPDs Eu-wide Objectives 3 and 4 - Objective 3: 1 ESF SPD involving only the ESF Objective 4: 1 ESF SPD Objective 5b: 7 multifund SPDs ► OBJECTIVE 3
Combating long-term unemployment and facilitating the integration into working life of young people and of persons exposed to exclusion from the labour market; promoting equality of opportunity 42 AUSTRIA r ae targeted. are try to the EU and the speed of economic change. People People change. economic of speed the and EU the to h pirte fr S ato udr h SD are: SPD the under action ESF for priorities The h mi tre gop ae s follows: as are groups target main The people helping on placed is emphasis ESF main The affected by economic trends resulting from accession accession from resulting trends economic by affected Aid for the integration of young people into employment. into people of young integration the for Aid market. labour the from exclusion to exposed cin t hl pol wt disabilities. with people help to actions Priority 2 Priority 1 Priority Priority 5 Priority million 113.8 ECU exclusion. with threatened those and Support for those hit by structural change. structural by hit those for Support Priorities Priority 4 Priority 3 Priority n h fegtfradn sco ad n h fo indus food the in and sector freight-forwarding the in Under this priority, special focus is given to people people to given is focus special priority, this Under rmto o qa potnte. C 6. million 61.3 ECU opportunities. equal of Promotion million 25.8 ECU ery n tid 2.% o EF i i drce to directed is aid ESF of (28.5%) third one Nearly million 95.2 ECU ECU 22.9 million 22.9 ECU Integration of the long-term unemployed, older people older unemployed, long-term the of Integration nerto o epe ih disabilities. with people of Integration total ESF allocation to Austria and 31.2% of total total of 31.2% and Austria to allocation ESF total f uti ecp Breln wih a an has which Burgenland except Austria of aims of the SPD are directed towards creating creating towards directed are SPD the of aims to amounts SPD The Austria. in actions 3 Objective betv 1 programme. 1 Objective whole the to applies SPD The aid. Fund Structural atclr iavnae n h lbu market. a labour at are the on who disadvantage groups for particular employment to pathways ECU 334 million, which accounts for 63% of the the of 63% for accounts which million, 334 ECU In harmony with Austrian labour market policy, the the policy, market labour Austrian with harmony In co-finance to adopted was SPD a 1995 July In pol wt pyia, scooia or psychological physical, with people ♦ gop ih oil rbes uh s ex as such problems social with groups ♦ lack of because place to difficult people ♦ immigrants; ♦ oti ru udrte et priority); next the under group this to offenders, people at high risk, drug drug risk, high at people offenders, skills; basic and qualifications of addicts, the homeless, and people with with people and homeless, the addicts, mental disabilities (specific focus is given is focus (specific disabilities mental ev debts. heavy
inl eaiiain spot o SE tr-p, and start-ups, SME for support rehabilitation; tional priority. this under feature ticular oainl; udne avc ad oneln; voca counselling; and advice guidance, priority vocational); these under measures of variety a are There par a is priority under-represented the traditionally are all they where under actions from benefit Women oa 73270 Total The expected beneficiaries under Objective 3 priorities priorities 3 Objective under beneficiaries expected The ra wih ete rud tann (nta, ai and basic (initial, training around: centre which areas occupations into integrate to women helping but areas, mlyet is o norg jb creation. job encourage to aids employment roiy 1 Priority roiy510,909 7,000 12,000 31,061 5 Priority 4 Priority 3 Priority 2 Priority Priority 6 Priority Y ROIY OJCIE 3 OBJECTIVE - PRIORITY BY FUNDING ESF OF BREAKDOWN etto. C 1. million 15.3 ECU mentation. n h pro 19-99 r a follows: as are 1995-1999 period the in Beneficiaries 34% 28.5% Technical Assistance, including evaluation and imple and evaluation including Assistance, Technical Priority 3 Priority 1 Priority Priority 2 Priority 12,300 Key points - Objective 3____ Targets are: SMEs; older workers; the unskilled or workers with obsolete skills; people whose employment is threatened by the Single Market (for example cus ♦ ECU 334 million = 63 % of ESF aid toms agents); workers in key positions and part-time and 31.2% of total structural fund and seasonal workers. ing to Austria ♦ 28.5% of ESF aid to assist people Priority 3 with disabilities Improvement and development of training system. ECU 8.4 million ♦ assistance for SMEs and workers affected by Austria joining the EU Innovative concepts or new methods of training and upskilling within companies are features under this priority.
Priority 4 Technical assistance. ECU 2.1 million
O BJECTIVE k BREAKDOWN OF ESF FUNDING Facilitating the adaptation of workers BY PRIORITY - OBJECTIVE 4 to changes in production systems
Priority 3 13.8%
The SPD for Objective 4 was also adopted in July 1995. Priority 4 The ESF contribution is ECU 61 million, equal to around 3.4% 11.5 % of the total allocation for Austria. The whole of Austria is covered by the SPD except Burgenland which has a programme under Objective 1. Continuing educa Priority 1 7.3% tion and training to adapt workers to change is a rela tively new concept in Austria and programming will be reassessed over the 1995-1999 period.
Priority 2 75.5% Priorities
The aim of the SPD is to assist employees adapt to industrial change and new production methods and upgrade their skills.
The priority areas for ESF action correspond to the pol icy aims of Objective 4 and are as follows: Key points - Objective A Priority 1 Anticipation of labour market trends and up-dating ♦ ECU 61 million- 11.5% of qualifications. ECU 4.5 million ESF allocations to Austria This includes setting up systems for evaluation and ♦ 75.5% of ESF aid to vocational analysis of trends. training ♦ updates skills and equips workers Priority 2 for new job requirements Vocational training. ECU 46 million ♦ focus on workers in SMEs
The greatest concentration of ESF funding (75.5%) is ♦ assistance for workers threatened directed to training and some 43,000 people are with unemployment due to the expected to benefit. The focus is on supporting job Single Market mobility within enterprises or between sectors, and improving the qualifications of employees.
■ Objective 2
□ Objective 3
□ Objective 4
H Objective 5b
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Steyr- Kirthdorf Salzburg A und Umgebung BURGRslLAND Ticerter ycrteriartd SALZBURG Aj/sserfem V0RARL- TRffiftrucfi Pinzgau-Pongau 5 BERG 'T iro le r TIROL Bludenz- Overland Osttirol Unterkamten Wej- Sudsteiermark ||agenfjrt-\W|ach PART CHAPTER 4 Regional Objectives - in which the ESF integrates with other Structural Funds transfer centres (which aim to help transfer r OBJECTIVE 1 know-how to educational establishments and businesses) (ECU 0.5 million); ♦ training of the unemployed and young Development of the least entrepreneurs in RTD and other tech prosperous regions nology related fields (ECU 2.5 million). Promotion of growth and stability in employment: One of the Austrian regions, Burgenland, qualifies ♦ training, advice and guidance to under Objective 1 and has a multifund SPD providing improve qualifications of employees just over ECU 33 million in ESF assistance (which was especially in SMEs and to enhance the adopted on 15 November 1995). Total Structural Fund management skills of owner/managers aid under the SPD amounts to ECU 165 million; the (ECU 15.62 million); ESF allocation is equivalent to about 20 %. ♦ integration of the long-term unem ployed, young people and those threat Some 270, 000 people live in Burgenland, a region of 4, ened with exclusion (ECU 8 million); 000 km2 of mainly rural land bordering Slovenia, Hungary ♦ adaptation of workers to change (ECU 2 and Slovakia. This is among the least prosperous regions in million). the Community, with GDP in 1995 at 70% of the EU aver age. Unemployment was 7.7% in 1994 and 7.8% in 1995, In total, ESF aid under this last heading represents ECU higher than the Austrian average. The northern part of the 25.62 million or 77.5% of Objective 1 ESF funding. region, close to Vienna and on the way to Budapest, has much better potential than the south where the concentra The ESF also contributes ECU 1.5 million to technical tion is on tourism and on crossborder trade and services. assistance. The ESF works with the other Structural Funds to Overall, there is a focus on ways of increasing job develop the region and enable it to make use of its opportunities for women and unskilled labour and potential as a gateway to both the east and west. The young people in rural areas, in an effort to counteract ESF boosts human resources potential by upgrading migration and depopulation. skills and encouraging job and enterprise creation. Measures to train and upgrade the local workforce are aimed at meeting the requirements of the local economy Priorities and industry, training SME entrepreneurs in technology, promoting local economic development, protecting the Under this SPD the ESF concentrates on: environment and encouraging SMEs to become more ♦ providing training schemes for people international in their outlook. with shortfalls in skills; ♦ supporting vulnerable groups who suffer disadvantages in the labour market Beneficiaries (long-term unemployed, older people, young people and women); It is anticipated that 7,300 new jobs will be created in the ♦ providing support for people in work period 1995-1999: 6,000 in industry, 1,000 in techno with training profiles which need to be logy-related SMEs and 300 in technological centres. adjusted to new requirements resulting from structural change. Key points - Objective 1______ The ESF component focuses on the following three ♦ Burgenland priority areas: ♦ 6.3% of ESF aid to Austria; 20 % of total Objective 1 funding Trade and industry: ♦ Training of middle and senior manage ♦ 77.5% to employment, growth ment in SMEs (ECU 3 million, represent and stability ing 9% of ESF aid under Objective 1). ♦ SMEs ♦ training in new technology Research and development: ♦ the operation of technology and technology EUROPEAN SOCIAL FUND 4 Measures OBJECTIVE 2 Steiermark: Improving the management of regional education Converting the regions seriously affected and training systems; co-ordination and developing structures to support training, guidance, advice by industrial decline and innovation; - training in industry, the services sector including tourism and RTD; - facilitating the reintegration of the unemployed The Austrian Objective 2 area includes parts of the and people threatened with unemployment espe regions of: Steiermark, Niederosterreich, Oberosterreich cially metal workers; and Vorarlberg. Structural Fund assistance amounts to - continuing training in RTD, including training ECU 101 million, of which the ESF contribution is instructors and teachers to adapt to new technology; about ECU 31 million, representing around 30.7% of - training in technical schools. total aid under this Objective, and 5.7% of ESF aid to Austria. Four SPDs have been adopted, one for each Niederosterreich: region concerned. More flexible employment in industry, trade and The ESF allocation is divided between the regions as services; innovative training schemes in tourism; follows: training for women; vocational guidance; support for active job search and advice and assistance for BREAKDOWN OF ESF FUNDING SME start-ups. BY REGION - OBJECTIVE 2 ECU million Oberosterreich: Steiermark 19.2 Niederosterreich 4.5 Initial vocational training and continuing training of men and women as a prerequisite to diversifying Oberosterreich 3.6 the industrial structure. There is focus on includ Vorarlberg 3.5 ing people who are raising children. Vorarlberg: The Objective 2 regions are home to 640,000 inhabi Advice, guidance and qualification of workers and tants and a diverse range of industries, mainly in managers; declining traditional sectors. Steel, heavy engineering - reintegration of the unemployed and integration and metals were the mainstay of industry in of people threatened with unemployment espe Steiermark, whereas Niederosterreich concentrated on cially in the textile and metal industries; a mix of mainly SMEs. Oberosterreich specialised in - technical secondary school training linked to the automobile and mechanical industries, and in regional needs. Vorarlberg, the main industry was textiles, which employed mostly women. The gradual decline of these Provision is made for technical assistance under each SPD. industries caused serious unemployment among work ers whose qualifications and skills did not match the Beneficiaries needs of the up-and-coming sectors. About 11, 000 jobs are expected to be created or The unemployment rate in the Objective 2 regions maintained in these regions over the current period as reached a peak of 10.3 % in 1993 (compared with a result of programmes supported by the ESF. 6.8% for Austria as a whole). Steiermark was worst affected with a rate of 8.4% in 1994; long-term unem Key points - Objective 2______ployment in this region stood at 47% of the total unemployed and 43.9% of the female workforce were ♦ 5.7% of all ESF aid to Austria unemployed. ♦ targets SMEs, women, the unemployed, young people and the Priorities socially excluded ♦ focus on training, guidance, advice Overall, the ESF upgrades human resources and inter and counselling, and support for job acts, in particular, with the ERDF to develop the and SME creation regional economy. The ESF component in the individ ♦ emphasis on training in new ual SPDs concentrates on the specific human technology and RTD resources requirements of the regions concerned: Oberosterreich: OBJECTIVE 5b - vocational guidance and adaptation from work in agricultural to non- agricultural areas; - training and continuing training for both the The development and structural unemployed and the employed. adjustment of rural areas Salzburg: - improving qualifications in the construction, Structural Fund aid totalling ECU 411 million is allo forestry, services and tourism sectors; training for cated to seven SPDs for the Objective 5b regions of unemployed entrepreneurs, and the reintegration Austria. ESF aid accounts for around ECU 72 million of women; of this and represents 13.5% of all ESF aid to Austria. - improving support structures. Steiermark: The Objective 5b regions contain 2, 270, 000 inhabi - improving qualifications to support and adapt the tants (29% of the Austrian population) and 50, 000 trade, industry and tertiary sectors; continuing km2 of rural territory. The economies of the regions are training and on-the-job training; dependent on primary production - agriculture, forestry - training of farmers and agricultural personnel for and tourism. employment in non-agricultural sectors. The ESF contribution is divided as follows: BREAKDOWN OF ESF FUNDING Tirol: BY REGION - OBJECTIVE 5b ECU million - employment and training measures to reinforce the competitiveness of local enterprises in rural Karnten 8.2 areas; innovative training measures in the tourism Niederosterreich 20.2 and services sectors; Oberosterreich 15.9 - qualitative adjustment of labour force potential Salzburg 2.6 for regional needs; teleworking, improvement of regional training institutes, and training in RTD Steiermark 17 and science. Tirol 6.9 Vorarlberg 1 Vorarlberg: - improving organisation and content of training and qualifications; Priorities - improved training and job opportunities for women; The individual SPDs cater for the diverse needs of the - training; improvement of guidance and job search regions concerned. Although, generally, the ESF assistance; improvement of qualifications in focuses on human resources development in the tourism; training employers and managers in SMEs. Objective 5b areas, the emphasis of the ESF compo nent is different under each SPD. Each SPD makes provision for technical assistance. Measures Karnten: - diversification of the agricultural and forestry sec tors through training and qualification in new skills; - training, qualification and employment through innovative tourism schemes; training and employ ment in trade and industry; industrial development Key points - Objective 5b in the services sector; - job creation and self-employment. ♦ ECU 72 million representing 13.5% of ESF aid to Austria Niedosterreich: ♦ there are 7 SPDs covering - increasing qualifications through specific training 7 rural regions in key areas such as communications systems, risk ♦ focus on training to develop and and quality management, new technology and diversify the regional economies innovative training measures. SMEs and tourism are targeted. 48 AUSTRIA f omnt Initiatives Community of h Asra porme scoeytnd ote differ the to tuned closely is programme Austrian The and Adapt. ESF Employment of under million Austria to 23 directed be ECU will aid 1995-1999, period the Over hog spot o wr paeet, riig coun training, placements, work for support through prospects employment pro women's improve million) 5.7 to aim (ECU jects NOW strands: Employment ent Human Resources component component Resources Human n tann opruiis ad ces o eir man senior to access and opportunities, training and eln ad h aatto o te oklc; YOUTH- workplace; the of adaptation the and selling disabilities with people for start-ups. opportunities business employment assist and positions, agement its four strands, and a further ECU 11 million under under million 11 ECU further a and strands, four its HORIZON (ECU 11.1 million) projects encourage encourage projects million) 11.1 (ECU HORIZON h ae t ik f xlso fo te aor market. labour the from exclusion of risk at are who The Adapt initiative, for which the ESF contributes contributes ESF the which for initiative, Adapt The young of needs the addresses million) 4.5 (ECU START f M development. SME of poor (ECU in live INTEGRA and qualified, disabilities; from poorly suffer or either regions are who people ine ad h apiain f e cnet and concepts new of application the and riences e invtv apoce truh xhne f expe of to creating exchange Austria systems, through for approaches and chance innovative a new programmes as seen existing is improve million, 11 ECU M, ra, nerg Rca, eie ad Retex. and Resider Rechar, Interreg, Urban, SME, instruments. This is particularly important in the field field the in important particularly is This instruments. those for prospects employment improves million) 1.7 n diin te S cnrbts mut ttlig ECU totalling amount, contributes ESF the addition, In 6 ilo truh te omnt Iiitvs Leader, Initiatives: Community other through million 16 ch apte r 4 m m m AUSTRIA SECTION 3 Programme content and policy aims A. Vocational integration of across borders is also supported. Training projects assisted include courses that are people threatened with specifically targeted and courses in new fields, such as those aiming to reduce the dependency of older long-term unemployment unemployed people on other people, and in the envi ronment, new technology and ecology engineering. From 1990 to 1994 the proportion of the unem Advice and guidance for unemployed women is an ployed registered for longer than one year rose from important facet and considerable emphasis is placed 13.1% to 18.5%. Older people (over 50) make up on this. the majority of this group. Young people may lose Additionally, ESF finance is used for projects which their jobs more often but they normally remain unem develop support structures to help job search; ployed for a shorter period of time than older people. which provide employment incentives to employers In the case of the more highly qualified older people, to take on unemployed workers; and which assist the problem is that they are generally recruited entrepreneurs who wish to start their own busi through internal labour markets and when they lose nesses, especially women. Foundations and volun their jobs they find it difficult to approach the market tary organisations which provide services to the from outside. Older workers may also suffer from out unemployed are also supported. dated skills or physical disabilities making it difficult for them to compete on the labour market. Additionally, unemployment has been exacerbated B. Vocational integration of because when jobs are lost as a result of economic young people restructuring in a certain area, new jobs are not always created in the same location. Long-term The under 19s, (especially males), participate in unemployment in Austria is closely associated with the Austrian dual training system, which is essen the decline of traditional industries (metal working, tially an apprenticeship system, and accordingly, textiles and chemical and electrical industries). for this age group unemployment has not been very Furthermore, Austria's accession to the EU has had much of a problem. In 1994 the unemployment a profound affect on the employment situation in rate of the 15-19 age group was just 2.8%. the road haulage, food, drink and tobacco indus However, for the 19-24 year age group the situa tries. tion is very different; on average, unemployment for this group stood at 7% between 1993 and For the unemployed affected by large scale redun 1995. Young women are particularly affected by dancies, particularly in the latter industries, the ESF unemployment, largely because they are less likely is supporting projects which provide vocational reori to go on to medium-level vocational training after entation through ‘labour foundations'. These foun completing their compulsory schooling. dations are set up by employers to help soften the blow of the economic and social impact on workers A special ESF-supported programme is devoted to in the industries affected by structural change. The young women, ‘Focus on Girls’ (‘Madchen im employers take some measure of responsibility for Mittelpunkt’), which provides careers guidance and their workers even though their formal working rela vocational guidance and training. tionship has ended. The aim of the foundations is to provide support for the workers over a period of three ESF support is given to the career-search process years by providing further training, vocational guid and expansion of advisory services; this involves ance, counselling and support for job search, skills essentially vocational guidance and counselling for training and assistance for business creation. young people in order to improve their career choices. Young people who have made a wrong first A combination of ESF measures aimed at providing career choice are assisted by intensive one-to-one pathways to employment, tailored to the needs of guidance and advice on alternative opportunities the unemployed and long-term unemployed, is available to them. available to prepare people for integration into the labour market. The ESF backs comprehensive Young people who have had good practical experi guidance, advice and counselling and practical ence but who are not expected to achieve good training projects. Support is given to vocational academic results, receive extra basic training to training and education which assists job mobility. boost their chances of obtaining employment. Transfrontier cooperation to assist job mobility ESF backing is also given to projects that assist young EUROPEAN SOCIAL FUND 49 people with learning difficulties or social problems D. Promotion of equal opportu who are not in a position to take up a job, but who, after intensive training, would be able to embark on a nities in the labour market vocational training course or working traineeship. These young people receive initial practical on-the-job between men and women training. In addition financial assistance is given to foundations and associations which provide services Equal access to the labour market underlies all the to unemployed young people. ESF's work in Austria and women benefit generally from the measures taken under all ESF policy aims. Nevertheless, specific provision is made to further equal opportunities by supporting the return of C. Integration of persons women to the labour market through guidance and at risk of exclusion from the counselling, extending training and employment measures and assistance for childcare. Incentives, labour market such as lower social costs, are given to employers wishing to employ women. A range of ESF-backed measures is available to assist people who are at risk of exclusion from the The aim of training activities for unemployed labour market. These measures centre around women (without qualifications or with out-dated training, temporary employment aids to encourage qualifications) is to give them better access to job creation, and the development of training, those sectors of the labour market where they are employment and support structures. With the under-represented or non-traditional sectors. Young involvement of local services, a pathway to employ women, in particular, are encouraged to enter jobs ment is developed which is tailored to the partic in which they have been under-represented. ular person's needs. This involves a combination of Women who have interrupted their careers to look training, vocational rehabilitation, guidance, after children benefit from ESF-backed vocational advice and counselling. guidance and counselling that helps to ease their way back into employment. An important area of ESF backed action under this policy aim relates to people with disabilities who have limited education and vocational training or E. Anticipation of labour have not worked for some time. With the help of nearly one third of ESF Objective 3 funding, an market trends and innovative boost to labour market policy measures is being achieved. The main aim is to integrate adaptation of worker skills people with disabilities into the open labour mar ket. The secondary aim is to promote special train to change ing and create work places in sheltered workshops for this group. Traditionally, vocational training for The safeguarding of jobs by equipping those in work people with disabilities had always taken a back with the skills needed to deal with changes in pro seat but now it is emphasised. duction systems, work organisation or the labour mar ket, has been identified as a new strategic priority for Special focus is given therefore to activities which Austrian labour market policy. The Austrian approach create job opportunities and improve the qualifica is to support structural change and workers affected tions of people with disabilities. by it, by recognising and analysing opportunities and problems at an early stage, offering training which The main measures centre around: improving quali fits new needs, and developing new training struc fications through training and vocational rehabilita tures and models. tion; aid to job creation, counselling and assistance In order to achieve this, the Austrian Labour with job search. Counselling and training may be on Market Service uses two means which work in tan a one-to-one basis or in a group. Incentives, such as dem. These are as follows: reductions in social costs, are made available to ♦ a person-oriented measure. Principally companies who try to integrate people with disabili this focuses on training, for instance, ties and to companies wishing to employ them. An preparing workers for the introduction of innovative ESF co-financed action is the develop new technology. ment of ‘Arbeitsassistenz’, which is a general sup ♦ an innovation-oriented measure. This port structure that assists people with disabilities uses a combination of research and (one branch supporting people with physical disabil strategic projects with the development ities and the other, people with mental disabilities) of innovative training approaches to cre in search of appropriate job opportunities. ate new forms of vocational training. The ESF supports measures which harmonise with between labour market and social policy - the Austrian national policy. Close attention is paid to boundary where new technology and the socially the needs of the regions to make the most out of acceptable introduction of technology meet. This their human resource potential. Workers in SMEs means balancing the advantages of new technology receive special attention in ESF programmes with the social cost of its introduction in terms of because normally they do not have easy access to redundancies. continuing vocational training and yet almost all new job creation in Austria is in SMEs. These projects are supplemented by others that develop training strategies and advice and coun As continuing education and training is a new con selling, and create a business culture that supports cept in Austria, ESF activities are to be assessed continuing education and training. during the 1995-1999 programming period and, in the light of results, adjusted accordingly. ESF support is also given to actions that develop: ♦ new training methods and apply new Actions supported by the ESF focus on: training in practice, for example, mod els for work-related instruction (learning on-the-job); Anticipation of labour market trends ♦ computer-supported self-learning pro An ongoing system of analysis and evaluation, grammes; linked to specific priorities adapted to regional or ♦ models linking technological and com sectoral needs is being established, and different munication skills; levels of analysis are being incorporated into ♦ skill and personnel development models; research and forecasting. The needs of undertak ♦ projects that combine RTD with con ings and workers are taken into account. Actions crete training measures, and, ♦ training measures with specific empha also include surveys and specific studies in order sis on the needs and working patterns of to identify needs. part-time workers. ‘Round Tables’ for discussion of economic and In addition, ‘test training’ projects are supported labour-market aims, involving all interested parties at local and regional level, are being set up as well by the ESF. These are directed at simplifying and improving the organisation and conduct of training as other discussion forums, workshops and training strategy conferences. in SMEs, starting out by assessing the needs of the companies. Training documentation and methods Vocational training in certain subjects, such as communications, are adapted for small firms; if successful further sub About 75 % of Objective 4 aid is directed to voca jects are added, and this is followed by test train tional training projects. Overall, the goal of ESF ing. The results are assessed and then distributed actions is to stabilise employment through an to other SMEs in the Community through the increase in job mobility, either within companies or Internet. in sections of the labour market. In order to improve know-how and social skills, F. The ESF - an instrument ESF training actions focus on developing worker’s skills and competence in new fields: in law (par of regional development ticularly EU law); commerce; technology; commu nications technology, and languages. Employment growth and stability Training is targeted at workers who: are older, unskilled or have outdated skills; are in key posi The range of programmes intended to boost employ tions; are employed part-time or seasonally; work ment growth and stability in the regions include in SMEs; or are affected by the Single Market actions to assist the employed and unemployed, such (such as customs personnel). In addition, actions as training and continuing training, advice and guid supporting occupational mobility and further train ance, and support for SME start-ups and job creation ing are provided for workers who are threatened in SMEs. with unemployment. Actions supported by the ESF respond to the needs of Improving and developing vocational the specific region and also those arising from changes training systems in technology or production systems. They include training in RTD, other new technology and teleworking. The ESF supports projects that develop innovative concepts and models to develop further vocational The groups targeted include managers in SMEs, farm training. These projects are at the interface ers, women and workers threatened with unemployment AUSTRIA HPE 4 CHAPTER onain fr oe wih rvd giac and guidance provide which women for foundations start-ups. business for support and training vocational counselling, special and centres information to assistance gives and projects providing childcare for parents on low incomes incomes low on parents for childcare providing projects agementinvolves: Thisemployees.and supports ESF the example, For industries. specific in Programmes supporting employment growthand stability under Objective 1 feature training and advice for man for adviceand feature training 1 Objective under unrbe rus te S spot atos relat actions supports ESF the groups, vulnerable the for stability and growth employment promote To in Atos ou o ugaig okr' qualifi workers' upgrading on focus Actions tion. for placement job as and such childcare measures with support assistance and guidance selling, ht eeo mdl ad rpr plt rjcs to projects pilot prepare and models develop projects supports that ESF new as the such example, For areas, technology. innovative in qualifications for organisa work or systems to production employees in adapting changes include programmes Other cations, promoting staff in key areas and training training and areas key in staff promoting cations, dp wres o hne eutn fo technolog from resulting change to workers adapt individual; the of potential the and needs business most the and people young unemployed, long-term epe ih disabilities. with people coun and jobs; create to employers for incentives with line in qualifications improve to training to: ing eie i cnucin ih pcait dios on advisors, specialist with conjunction in decide, ical innovation. Companies are given the chance to chance the given are Companies innovation. ical ♦ developing employment opportunities, opportunities, employment developing ♦ of training and counselling promoting ♦ ♦ drawing up new curricula for training training for curricula new up drawing ♦ instructors; of training ♦ ♦ training with a special international international special a with training ♦ ♦ training of engineers to EU product product EU to engineers of training ♦ tr-p b h unemployed; the by start-ups the with connection close in employees standards. and, dimension, colleges; needs and demands of the labour market; labour the of demands needsand innovative jobs and support for business business for support and jobs innovative f eerh sine n technology and science research, of and technology transfer centres transfer technology and rdae wo ae opee ter tde i tech in for studies centres their completed technology have in who graduates qualifications and training Boost human potential in the fields fields the in potential human Boost h EF uprs riig rgams n T, sci RTD, in programmes training supports ESF The teachers and instructors, and the development of tech of development the and the instructors, for and teachers teleworking), (including technology and ence rdtoa activities. than rather traditional technologies new other and technology tion the to and concerned sector the to tailored are schools hnig nutil niomn, ouigo informa on focusing environment, industrial changing Projects are also supported that provide post-graduate post-graduate provide that supported also are Projects ooy nttts n uieste i te ae r simi or same the in universities and institutes nology nical schools are also assisted. These technical technical These assisted. also are schools nical of training The entrepreneurs. young and unemployed centre. technology the of that to practice of field lar h EFc-iacs rjcs htoeae technology operate that projects co-finances ESF The training. The first stage is to create a method for for method a create to is stage first The training. The ESF also supports training activities in the the in activities training supports also ESF The action. in then is systems the company test to pilot a chosen views; their obtaining and plan to time same the at and qualifications, ees' electronic media using seminars and other types of types other and seminars using media electronic employ of level current and infrastructure regional dp t srcua change. structural to adapt goals, company’s a match that products new etns ht mrv te ulfctos f entre of qualifications the improve that meetings trends technological about employees informing preneurs and managers in SMEs and help them them help and SMEs in managers and preneurs dvlp oprto bten interna between cooperation develop ♦ estab education between links promote ♦ etbih ete fr uies start business for centres technology establish and ♦ counselling provide ♦ tional and national research institutes institutes research national and tional rnfr and, transfer, technology. institutes; educational regional and ihet ad enterprises; and lishments ups which are related to RTD and new new and RTD to related are which ups , nldn cin to: actions including SECTION 4 Management and follow-up Implementation structures sions; a meeting takes place every two months in the BMAGS with the social partners, where the basic At national level, the overall responsibility for coordi themes of the ESF and its development are discussed. nation of the ESF lies with the Federal Ministry of Working groups are set up on specific issues and Social Affairs and Health (BMAGS). Project selection involve experts as well as interested parties. is administered principally by the Labour Market Service and, in the case of Objective 3, in conjunction Each specific Bundesland has responsibilities for the with the Federal Offices for Social Affairs and the implementation of actions at regional level under Disabled. Some programmes under Objectives 1, 2 Objectives 1, 2 and 5b. The Labour Market Service and and 5b are administered by other Federal Ministries. Federal Offices for Social Affairs and the Disabled both have regional offices which deal with labour market The social partners play a vital role in the Labour activities at a regional level. The Labour Market Service Market Service, with functions in control and decision also has offices at local level. The social partners are also making. Social partners are involved in all ESF deci involved in decision-making at regional and local level. - I 54 PART 2 CHAPTER 5 - BELGIUM Belgium SECTION 1 Economic and labour market situation at the time of programming of Community structural funding for the period 1994-1999 Economic situation Labour market In 1993, according to the European definition, 436 000 Belgium is a small open-economy, depending to a large people were unemployed, i.e. 8.% of the working popu lation. If we add to this figure those people who are extent on exports. Moreover, the Belgian economy has unemployed but undergoing vocational training; older people who are fully unemployed and receiving benefit; been undergoing a constant process of internationali unemployed people involved in resettlement pro sation, with foreign investments in industry (from the grammes; people who are not occupied but exempt - all of these categories are not included in the European def 1960s onwards), industrial restructuring during the inition - then, 911 989 people are unemployed, i.e. more than double. period 1975 to 1985, and with ‘1992’ in mind, merg In spite of the fact that the rate of unemployment in Belgium is lower than the European average (10.4%), ers and takeovers, and cooperation agreements in it remains an extremely serious problem. It must also be noted that the rates vary according to region: in almost every sector. The important opening-up of mar 1993, the unemployment rate was 6.6% in Flanders, kets and the high level of internationalisation, together 11.3% in the Brussels region and 12% in Wallonia. with the country’s geographical position are the reasons The main characteristics of unemployment in Belgium are: for the importance of sectors connected with trade ♦ almost three out of five unemployed people are women; (transport, distribution, catering), which account for ♦ over half of those unemployed are long term unemployed (unemployed for more more than a quarter of the GDP. Business services than a year), and of those, the very long term unemployed (more than two years) together with family and financial services, also repre form a considerable proportion (40%); ♦ unemployment among young people sent some 25% of GDP. On the other hand, the share of increased considerably from 1990 to the manufacturing industry in Belgian GDP has continu 1992, and their percentage of the unemployed population rose from ally fallen, reaching 22% at the beginning of the 1990s. 13.7% to 14.7%. It has become quite common that unemployment is the first This decline is also shown in the level of industrial activ experience of the adult world for young people reaching working age. ity: from 31.8% in 1970 it fell to 20.8% in 1990. Although the growth in employment is positive, it has generally been less than that of its European neigh bours. According to the ‘Bureau du Plan’, the only sector with growth potential is the important sector of commercial services (trade, hotels and catering, financial services). EUROPEAN SOCIAL FUND 55 5 Administrative structure of the This results in a complex breakdown of responsibilities Member State between the three levels, with regard to employment, education, training and integration issues and affects Belgium is a Federal State composed of three regions the way Structural Funding assistance is managed. and three communities. ♦ the Federal State is responsible for The three regions are the Walloon region, the Flanders redistributing the national effort as region and the Brussels region. The three communities regards training, integration and are the Flemish community, the French community employment. It is responsible for the and the German-speaking community. In the Flemish provision and implementation of unem part of the country, the region and the community have ployment legislation in the broad sense; merged into one single administration (de Vlaamse ♦ the regional authorities have responsi Regering) wielding community and regional power. In bility for economic policy and active the other cases, the distinction between region and employment policy (placement of job community has been maintained. Each body is run by seekers, recruitment aids, job creation its own administration. With the Federal Government, in the public and non-market sectors); Belgium is thus, run by six administrations distributed ♦ the communities deal with compulsory over three levels of competence (federal, community education, education for social develop and regional). The community affairs of the Brussels ment, cultural schemes of continuous region are run jointly, by three commissions - the education. The Flemish and German Commission Communautaire Frangaise, the Flemish speaking communities are also respon Community Commission and the Common Community sible for post-school vocational training Commission. and occupational integration. CHAPTER 5 BELGIUM SECTION 2 Structural Fund programmes in Belgium A. Allocation by Fund and Objective Belgium qualifies for Structural Fund assistance under the EU-wide Objectives 3, 4 and 5a and in the case of certain regions under the regional Objectives 1, 2 and 5b. This means that all of the Structural Funds - ERDF, EAGGF, ESF and FIFG apply in Belgium. During the period 1994 - 1999, Belgium will benefit from total structural funding amounting to more than ECU 1835 million. The ESF portion amounts to ECU 718 million, around 39.1% of total allocation. In addition, some ECU 325.1 million are allocated through Community Initiatives, ECU 111.3 million of which is contributed by the ESF. BREAKDOWN OF ASSISTANCE BY OBJECTIVE AND SOURCE OF FUNDING ECU million - prices valid at time of Decisions Total Structural Funds ESF ERDF EAGGF FIFG Objective 1 730 166.7 515.9 47 0.4 Objective 2 366.5 73 293.5 1994-1996 160 30 130 1997-1999 206.5 43 163.5 Objective 3 396.2 396.2 Objective 4 68.8 68.8 Objective 5a Agric. 170 170 Objective 5a Fish 25.5 25.5 Objective 5b 78.1 13.2 41.1 23.8 Total 1835.1 717.9 850.5 240.8 25.9 | Community Initiatives Employment 45.8 45.8 Adapt 38.6 38.6 Others 240.7 26.9 206.4 5.4 2 Total 325.1 111.3 206.4 5.4 2 General Total 2160.2 829.2 1056.9 246.2 27.9 Compared to Belgian expenditure on the labour market amounting to ECU 8600 million for 1994, ESF assis tance is 1.6%. In the same way, it should be noted that public expen- diture allocated by Belgium on active market measures amounted to ECU 2870 million in 1994, ESF assis tance accounted for 4.7% of this amount. EUROPEAN SOCIAL FUND 57 PART 2 CHAPTER 5 BREAKDOWN OF ALLOCATION BY FUND (excluding Community Initiatives) EAGGF 13.1% ESF FIFG 39.1% 1.4% ERDF 46.4% BREAKDOWN OF STRUCTURAL FUND ALLOCATION BY OBJECTIVE Objective 5b 4.3% Objective 5a Objective 4 10.6% 3.7% Objective 3 21 6% I Objective 1 39.8% Objective 2 20% BREAKDOWN OF ESF ALLOCATION BY OBJECTIVE Objective 4 Objective 5b 9.6% Objective 3 55.2% 10.2 % The programming documents involving the ESF are as follows: Objectives Structural Fund assistance is divided into 25 programming 1 1 SPD documents - the ESF contributes to 19 programmes. 2 4 SPDs 1994 - 1996, 3 SPDs 1997 - 1999 3 1 CSF and 5 OPs The Belgian authorities have adopted two approaches - CSFs with Operational Programmes (OPs), in respect of 4 1 CSF and 5 OPs assistance under Objectives 3 and 4, and Single 5b 3 SPDs Programme Documents (SPDs) under Objectives 1, 2, 5a and 5b. The ESF contributes to all of these programmes, In addition, the ESF contributes to 22 OPs for the with the exception of the seven SPDs under Objective 5a. Community Initiatives. CHAPTER 5 B. Main features of the ESF Based on the particular situation of Belgian labour market policies, the CSF is focused on five priorities component in the Structural which correspond to the four strategic aims of the ESF under Objective 3. Funds programmes These priorities target the whole of Belgium, with the exception of the Province of Hainaut,which is eligible under Objective 1. EU-wide Objectives 3 and 4 - Priorities involving only the ESF Priority 1 A total of ECU 465 million has been allocated to Integration of the long-term unemployed and unem Belgium under Objectives 3 and 4. The Belgian ployed persons exposed to long term unemployment. authorities have decided to allocate 85.2% to ECU 132.98 million Objective 3 and 14.8% to Objective 4. Priority 2 Vocational integration of young job-seekers. ECU 84.85 million OBJECTIVE 3 Priority 3 Combating long-term unemployment and Integration of people threatened with exclusion from facilitating the integration into working the labour market. ECU 124.56 million life of young people and of persons exposed to exclusion from the labour Priority 4 Equal opportunities for women and men. ECU 26.43 market; promoting equality of opportunity million Priority 5 Objective 3 in Belgium is programmed in a CSF Support to training and integration structures and hor adopted in 1994 and represents ESF assistance worth izontal measures. ECU 27.37 million ECU 396.2 million, which is 55.2% of the total ESF allocation to Belgium. Due to the complex administrative structure of the country, this allocation is spread across five OPs. One BREAKDOWN OF ESF ALLOCATION OP has been planned for each authority that originally BY PRIORITY - OBJECTIVE 3 applied: ♦ 1 OP for the Federal Ministry of Priority 4 Priority 5 Employment 6.7% 6.9% ♦ 1 OP for the Flemish administration ♦ 1 joint OP for the French Community Priority 3 Priority 1 administration, the Walloon administra 31.4% 33.6% tion and the Brussels regional adminis tration (COCOF); ♦ 1 OP for the Brussels regional Priority 2 21.4% administration; ♦ 1 OP for the German-speaking community. EUROPEAN SOCIAL FUND 59 5 BREAKDOWN OF OBJECTIVE 3 FUNDING BY OP ECU million % Federal Ministry for Employment and Labour (MET) 36.04 9.1% Brussels region 12.24 3.1% French community/Walloon region/ Brussels region 156.61 39.5% Flemish government 185.8 46.9% German-speaking community 5.5 1.4% Measures Priority 1 to 4 have the same objective: to address the difficulties encountered by specific categories of peo ple vis a vis their integration in the labour market. Therefore, they call for a common approach. Thus, each of them is implemented by two common types of measure ♦ the first type of measure covers the con cept of ‘pathways to integration’: actions include personal guidance, counselling, tailored vocational training, Key points - Objective 3_____ monitoring and active job-seeking. The process is adapted according to the ♦ 55.2% of ESF assistance to Belgium social, economic, physical and psycho and 21.6% of total Structural Funds logical situation of the different target ♦ priority given to the ‘pathways to groups; integration’ approach for all inte ♦ the second type of measure concerns gration measures. Emphasis on work placement. It is targeted at unem partnership and effective collabo ployed persons who, through employ ration between operators and ment aids, can be directly integrated in between public authorities to the labour market without recourse to guarantee effectiveness of path training. This type of measure, as ways to integration required by the ESF Regulation, will be time-limited. CHAPTER 5 BELGIUM BREAKDOWN OF ESF FUNDING BY PRIORITY OBJECTIVE h OBJECTIVE 4 Facilitating the adaptation of workers to Priority 1 32.7% changes in production systems Priority 4 7.8% The CSF for Objective 4 was adopted at the end of Priority 3 1994 for a period of two years (1994 - 1996) with an 25.5% ESF allocation of ECU 25.56 million. The CSF was subsequently amended in 1996, extending its dura Priority 2 34% tion up to 1999 and increasing the ESF contribution to ECU 68.8 million. This amount is 9.6% of the total ESF allocation to Belgium. Taking into account the special situation of Belgium, the strategy for achieving Objective 4 is based on four main priorities: Priority 1 Anticipating trends in the employment market and Key points - Objective h qualification needs. ECU 22.5 million ♦ 9.6% of ESF assistance to Belgium Priority 2 Improving training and advisory systems. ♦ anticipation is the cornerstone of ECU 17.5 million measures supported by the ESF ♦ intensive partnership between Priority 3 public authorities, promoters and Developing the training and guidance effort. social partners ECU 23.4 million ♦ priority given to improving train Priority 4 ing and advisory systems Measures having a horizontal effect on the whole of ♦ measures target workers with the CSF. ECU 5.4 million very low qualifications, those at risk of losing their jobs and SMEs As in Objective 3, the measures under these priorities facing difficulties in adapting to will be carried out in the form of Operational industrial change Programmes. Again, there is one OP for each authority. BREAKDOWN OF ESF FUNDING BY OP ECU million % Federal Ministry for Employment and Labour (MET) 5.96 8.7% Brussels region 2.16 3.1% French community/Walloon region/Brussels region 17.39 25.3% Flemish government 42.8 62.2% German-speaking community 0.49 0.7% EUROPEAN SOCIAL FUND 61 h b b i PART 2 CHAPTER 5 ■ Objective 1 ■ Objective 2 □ Objective 3 □ Objective 4 ■ Objective 5b V laam s Antwerpen West- G ew est Vlaanderen r jT C)OSt- I Limburg \Vlaanderen Vlaams^ Brabant Brabant wallonr Hainaut Namur R egion > W &jlonne Luxembourg 62 BELGIUM Regional Objectives - in which the ESF integrates with other Structural Funds BREAKDOWN OF ESF FUNDING BY PRIORITY - OBJECTIVE 1 OBJECTIVE 1 ______Priority 4 Development of the least prosperous 70.2% regions Priority 5 0.8% Eligibility under Objective 1 was granted for the first time to a Belgian province during the period 1994- Priority 1 27.2% 1999. Hainaut with the areas of Mons, Mouscron, Ath, Soignies, Charleroi, and Thuin is the only Belgian Priority 2 province eligible under this Objective. The area covers 1.8% a very small part of the Belgian territory (12.4%) but it has a very important density of population: 1.28 mil lion people live in this area, amounting to 39.4% of the total population of the Walloon region. The SPD was adopted in June 1994. The total contribution from the four Structural Funds amounts to ECU 730 mil lion. The ESF contributes ECU 166.7 which is more than 22.8% of total structural assistance. The strategy adopted for the development of human resources in Hainaut is aimed at: ♦ helping workers in companies, at all lev els, adapt to new production systems Key points - Objective 1_____ and change; ♦ developing a very strong policy aimed at ♦ 23.2% of total ESF assistance to the integration of young people and peo Belgium ple facing social exclusion into the ♦ within the Objective 1 SPD, the labour market; ♦ strengthening and improving education share of ESF assistance is 22.8% systems; ♦ 70.2% of ESF assistance for ♦ adapting training to local needs. Objective 1 is allocated under the equal opportunities priority The ESF contributes to four out of the five priorities set out in the SPD: ECU million Total Structural Funds ESF | Priority 1 Stimulation of economic activity 480.1 45.5 Priority 2 Attracting investment in the region 90.6 3 Priority 3 Transport infrastructures 309 Priority 4 Equal opportunities 124.6 117 Priority 5 Technical assistance 3.8 1 Total 730 166.7 EUROPEAN SOCIAL FUND 63 P A R T 2 CHAPTER 5 The ESF strategy adopted under the two series of SPDs r OBJECTIVE 2 is aimed at: ♦ stimulating growth and reconversion based on research and technological Converting the regions seriously affected innovation; by industrial decline ♦ supporting the competitiveness of SMEs; ♦ diversifying the regional economy; Four out of the ten Belgian provinces have areas were ♦ improving the tourism and environmen unemployment rates combined with levels of decline tal sectors. in industrial employment are worse than the EU aver age; this makes them eligible under Objective 2. The areas concerned are the commune of Aubange in the Luxembourg province, the area of Meuse - Vesdre in the province of Liege, the province of Limburg in the northern part of the Flemish region and the area of Turnhout located in the East part of the Antwerpen Key points - Objective 2_____ province. All together, around 1.4 million people live in these areas. ♦ 10.2% of total ESF assistance ♦ priority given to boosting the The total structural allocation for Objective 2, for the development of SMEs period 1994 - 1996 was ECU 160 million, out of ♦ emphasis on training in advanced which the ESF contributed ECU 30 million. New SPDs have been adopted for 1997 - 1999 with a total struc technology tural assistance amounting to ECU 206.5 million to ♦ diversification of activities (tourism which the ESF contributes ECU 43 million. and environment) Between 1994 and 1999 ESF assistance will amount ♦ support to continuing training to ECU 73 million which is 19.9% of the total struc systems tural assistance under Objective 2 and 10.2% of the total ESF allocation to Belgium. BREAKDOWN OF ESF FUNDING - OBJECTIVE 2 SPDS ECU million 1 Region ESF Total Structural Funds % of ESF contribution | Aubange 0.43 2.3 18.7% Meuse -Vesdre 32.5 193.3 16.8% Limburg 28.6 114.6 24.9% Turnhout 11.5 56.2 20.5% Human resources component of the OBJECTVE 5b Community Initiatives The development and structural adjust The four strands of the Employment Initiative - NOW, HORIZON, INTEGRA and YOUTHSTART - provide an ment of rural areas allocation of ECU 45.8 million over 1994-1999 to Belgium to foster best practice in the field of human resources development through innovation, local part Three areas are eligible under Objective 5b two in the nership and transnational co-operation. Flanders region and one in the Walloon region. They cover 22% of the Belgian territory and 4% of the entire Under the Adapt Initiative, the ESF allocates ECU population live in those areas. 38.6 million for the co-financing of innovative transna Between 1994 and 1999, total structural funding allo tional projects for employees at risk of unemployment cated to Objective 5b will total ECU 78.1 million, due to industrial and technological change. divided between three SPDs. The ESF contributes to ECU 13.2 million, representing 16.9% of the total In addition, the ESF contributes amounts totalling Structural Fund allocation to this Objective. ECU 26.9 million through the other Community Initiatives: Interreg, Leader, Konver, SME, Retex, Rechar and Urban. BREAKDOWN OF ESF FUNDING BY SPD - OBJECTIVE 5b ECU million Region______ESF Total Structural Funds % of ESF contribution Bastogne, Marche, Neufchateau, Dinant Philippeville 8.7 41.4 21% Meetjesland 1.6 10.3 15.6% Westhoek 2.9 26.4 11% The main priorities under this Objective are to boost economic development, develop SMEs and enhance training linked to diversification tourism). Key points - Objective 5b ♦ only 1.8% of total ESF allocation ♦ priority given to the development of SMEs by appropriate training ♦ promotion of rural tourism ♦ emphasis on training in the agri cultural sector Programme content and ESF policy aims A. Vocational integration of actions selected must have the potential to be incorporated into the arrangements for managing people threatened with the pathways to integration. Measures implement long-term unemployment ing a partnership approach is an absolute priority. Work placement through job subsidies is the second Despite a remission between 1988 and 1992, type of measure developed to tackle long-term long-term unemployment remains a very serious unemployment. This measure targeted to unem problem in Belgium. Long-term unemployment ployed people without qualifications and people over accounted for 39.4% of total unemployment in 45 years old, allows them to be directly integrated 1992. This form of unemployment affects women into the labour market without having to be trained more than men: in 1992, 63.2% of long-term before working. This measure is time-limited. unemployed persons were women. Note also that the maximum educational level of over 75% of the Under Objective 1, actions are targeted to unem long-term unemployed corresponds to lower sec ployed persons threatened with long-term unem ondary school; and out of these, 57.5% have only ployment. Preventive actions such as guidance and completed primary education. Some 23% of the counselling, pre-training, upgrading of basic skills total ESF resources are used to combat long-term and retraining are provided. unemployment, mostly through actions undertaken under Objective 3 and Objectivel. The first priority axis of Objective 3 is primarily tar B. Vocational integration of geted to people, including young people, who have been unemployed for at least 10 months and to peo young people ple over 45 years old, even though they have been unemployed for less than 10 months, as they are Youth employment has declined steadily in particularly threatened with long-term unemploy Belgium, even when economic recovery was at its ment in the current economic setting. The very long strongest. From 1984 to 1989 it fell by 9%, while term unemployed (over two years unemployed) are total employment in Belgium grew by 7% in the taken into account under the policy aim relating to same period. In 1992, the rate of young unem the integration of persons at risk of social exclusion. ployed people had reached 16%, representing Given the high proportion of women in unemploy 14.7% of total unemployed people. ment, special attention is given to combating female It should be noted that the problem of youth unem unemployment. In the case of women returning to ployment seems to be linked more to the structure work, the period of absence from paid work is and workings of the labour market rather than to counted as a period of unemployment. the ‘employability’ of young people. Youth unem ployment does not result in low educational levels ‘Pathways to integration’ occupies a central posi among young people in search of work; 34.4% tion and is the main measure developed to fight have completed secondary level and 9.2% have long term unemployment. This process allows for completed higher or university education. an individual assessment of each unemployed per Belgium is devoting around 14% of ESF resources son resulting in the design of a tailored programme to combating youth unemployment. aiming at his/her integration into work. This Most of the measures are implemented in the process provides for guidance and counselling framework of the Objective 3 CSF and the Objective actions as well as monitoring, foundation courses 1 SPD. combining vocational training and social aptitude The measures are targeted at young people who have measures, appropriate vocational and technical been looking for a job for less than 10 months and training combined with work experience, active young people in compulsory part-time education. job-seeking and entry to work. The final stage con A first type of measure aims at supporting sand sists in the monitoring of a trainee after his/her wich courses. It provides the optimum combination placement. To make pathways to integration fully of training and work experience. Training takes coherent and to prevent complexity, emphasis is place either at school, in training centres or in put on the effective collaboration between the firms. Schools and training centres are in charge of operators and public authorities. This is why the exploring employment opportunities for young peo first year of programming and part of the second ple after the training period. Placement can be are used to establish and strengthen the coopera supported by an employment grant. tion between all actors. During this phase, the Another type of measure consists of employment PART 2 C H A P T E subsidies (similar to those described under the E. Anticipation of labour market long-term unemployment aim). This type of mea sure is destined exclusively to young people with a trends and adaptation of low level of education or with no qualifications. It aims at giving them initial work experience. workers to industrial change Anticipation Particular attention is also given to young people under 20 excluded from the labour educational As far as anticipation is concerned, the approach system, in order to provide them, with access to a developed by Belgium is based on a contractual full-time job through recruitment subsidises or policy with the social partners, giving preference to other wage-cost-reduction measures. Other actions an intersectoral and regional approach. aim at facilitating their access to a recognised form Anticipation is given high priority as 34% of total of education or training. allocation under Objective 4 is allocated to this measure. Actions include forecasting studies of the employment market, of qualifications and of needs C. Integration of persons at with regard to vocational training. These studies risk of exclusion from the are repeated on a regular basis to monitor any change or evolution. Support is also provided to the labour market functioning of anticipatory structures. The results of the studies will help define the content of train More than 17% of ESF resources go towards this ing measures aimed at the adaptation of workers. aim, allocated to a specific priority under Objective Training measures have to be accompanied by 3. The first sub-programme targets people with dis prospective and strategic thinking, in terms of abilities. The second one relates specifically to development of skills and qualifications. In the CPAS (public centre for social support) recipients, same way, measures relating to the development of benefiting from ‘minimex' or equivalent assistance: training systems have to demonstrate how they the very long-term unemployed persons, women meet the anticipated needs. with low qualifications, migrants and people excluded from the social security system or from Improving training systems any replacement income. Again, ‘pathways to inte Measures developed aim at ensuring that better gration’ is the main measure developed to help account is taken of the needs of workers as regards these groups integrate into the labour market. training. Actions include the development of new Emphasis is given to guidance, counselling and to tools, the training of instructors and of advisers for assistance after the person has found a job. Some SMEs. Support to SMEs is given to help them in actions develop individual training within firms. the design and management of their training plans. Specific actions for very long-term unemployed Public awareness campaigns are also envisaged to young people aim at offering them temporary jobs, encourage the development of training schemes. in the context of projects developed by public authorities in the non-market sector. Training The objective of the measures developed are D. Promotion of equal twofold. First, they are to prevent the occupational exclusion of staff working in firms, affected by opportunities between men industrial change, as a result of the inadequacy of and women their qualifications; second, they are to guarantee employees that their skills will be maintained and that their qualifications will be raised or adapted. Although women benefit from ESF actions under Priority is given to intersectoral measures whose all policy aims, around 4% of ESF resources are characteristics can allow transferability to other allocated to specific actions for women. The sectors. Thus, training focuses on horizontal skills, actions developed are more specifically addressed appropriate to different sectors. Special attention to women wishing to return to work after at least, is paid to the needs of SMEs. 10 months’ inactivity and young women job-seek ♦ training in business and marketing strate ers - all of them with low vocational qualifications. gies; ‘Pathways to integration’ is the main approach. ♦ training in new technologies; Priority is given to training in occupations where ♦ training in management control, financial women are generally under-represented. Actions analysis. are also developed to facilitated access to training for women with young children: child-care facili ties, flexible schedule of training. 68 BELGIUM riig esrs n epomn ad ae devel are aids employment and measures training ih h am f otrn epomn saiiy and stability employment fostering of aim the With oped. Underlying these measures is a closer link link closer a is measures these Underlying oped. mlyet rwt ad stability and th grow Employment F. The ESF - an instrument of instrument an - ESF F. The ewe tann ad oa needs. local and training between continuing opportunities, employment new boosting esrs include Measures regional development regional tann o h eeomn fSE by SMEs of development the for training ♦ srnteig h tcnlgcl poten technological the strengthening ♦ dvlpn atraie ciiis n dif in activities alternative developing ♦ h tann o mngmn saf and staff management of training the future entrepreneurs; SMEs guidance guidance SMEs entrepreneurs; future riig n a hruh nweg of knowledge of thorough provision a the and by training companies of tial n cuslig prtos manage operations, counselling and subjects linked to new technologies; technologies; new to linked subjects norgn coeain ewe train between cooperation encouraging h evrnet tae n services. and trade tourism, environment, health, the as such sectors ferent ment training seminars for head of com of head for seminars training ment panies; n/ehooy ete ad companies; and centres ing/technology The ESF supports measures which promote research research promote which measures supports ESF The Actions focus on training for technicians, awareness awareness technicians, for training on focus Actions encourage the use of telecommunications, and to sup to and telecommunications, of use the encourage innovation. as well as development technological and asn ad nomto tree t SE aaes to managers SME to targeted information and raising and science technology the research, in of potential fields human Boosting otte loain f esne t rsac centres. research to personnel of allocation the port CHAPTER 5 SECTION 4 Management and follow-up Structures Monitoring Committees At Federal level, the Ministry of Employment and Labour Monitoring Committees have been set up at CSF level is the official interlocutor of the Commission. both for Objectives 3 and 4. They are chaired at Within the Ministry, the ESF mission plays a coordination Federal level by a representative of the Ministry of role as far as Objectives 3 and 4 are concerned. In prac Employment and Labour. tice, each of the four other administrations (see section In addition, in order to improve effectiveness of work, 1) - the Flemish administration, the French community monitoring committees have also been set up for each adminstration/Walloon administration/COCOF, Brussels OP and SPD. region and the German-speaking community manage The committees are made up of the usual representa their relevant Objective 3 and 4 OPs directly. tion: representatives of all the administrations involved The same management applies to the regional in the programme, social partners, and key programme Objectives, for which the ESF component within the operators. SPDs is dealt with by the relevant administrations. Each of these administrations has its own ESF mission. PART 2 70 ____ PART CHAPTER Denmark SECTION 1 Economic and labour market situation at the time of programming of Community structural funding for the period 1994-1999 Economic situation Labour market Productivity growth exceeded increases in production The Danish economy had been enjoying a very between 1990 and 1993, leading to a drop in employ ment rates. About 349 000 people, 12. 4 % of the favourable period since the beginning of the active population, were unemployed in 1993. Unemployment was not spread evenly across the nineties. The GDP had been steadily growing and Danish regions, ranging from 8. 4 % in the counties of rose by 4. 4 % in 1994, because of strong interior Frederiksborg and Ringkobing to 15. 5 % in the municipality of Copenhagen. Similarly, not all cate demand, particularly in the field of private con gories had been affected in the same way: people between the ages of twenty and twenty-nine had been sumption which was on a constant upward trend. hit the most and unemployment rates were somewhat higher among women. Forecasts for the future were equally favourable but Long-term unemployment had risen substantially over the very open nature of the Danish economy means the years - by more than one third between 1989 and that its evolution is heavily influenced by the eco 1993. By the end of this period, 39 % of the unem ployed were in the long-term unemployed category. nomic situation in the rest of the European Union. People with low qualification and skill levels are those most affected and at risk of long-term unemployment. The main problem of the labour market was therefore unemployment and Danish efforts were focused on reducing unemployment rates while, at the same time, developing a stable and sustained economy. To this end, reforms of the labour market were adopted in January 1994 with a marked emphasis on the devel opment of active labour market measures and are pro viding concrete actions for the unemployed. Reforms of vocational training were also introduced on this date, and both of these developments recognised the key role of vocational training among active labour market measures. EUROPEAN SOCIAL FUN 72 DENMARK SECTION 2 tutrl ud rgams n Denmark in programmes Fund Structural 1 Total zontal Objectives 3, 4, and 5a and, in the case of some of case the in and, 5a and 4, 3, Objectives zontal and Fund by Allocation A. cofinance programmes for development and the fight fight the and to Denmark development to for allocated is programmes million cofinance 745 ECU of total A RADW O ASSAC B OJCIE N SUC O FNIG 1994-1999 FUNDING OF SOURCE AND OBJECTIVE BY ASSISTANCE OF BREAKDOWN 1999. - 1994 period the for unemployment, against RADW O ALCTO B FUND BY ALLOCATION OF BREAKDOWN regions, under Regional Objectives 2 and 5b. This This 5b. and 2 Objectives Regional under regions, means that all of the Structural Funds - ERDF, EAGGF, EAGGF, ERDF, - Funds Structural the of all that means emr qaiis o Srcua Fn ad ne hori under aid Fund Structural for qualifies Denmark S, n FF apy n Denmark. in apply FIFG and ESF, Total Community Initiatives betv 2 Objective betv 5 Agric. 5a Objective 4 Objective 3 Objective betv 5b Objective Adapt Fish 5a Objective Others 97 1999 - 1997 Employment eea Total General 94 1996 - 1994 Objective oa Srcua Funds Structural Total 850.3 105.3 1731.7 31.7 59.6 263 122 127 140 745 38 66 56 55 14 397.3 12.6 58.3 S RFEGF IG I FIFG EAGGF ERDF ESF 263 339 38 795 27 551 15 12 11 14 h EF otiue EU 3 mlin wih s 5 5 45. is which million, 339 ECU contributes ESF The terms, the ESF is therefore the most important important most the therefore is ESF the terms, hog Cmuiy ntaie, C 5. mlin of million ESF. 58.3 the by ECU contributed is Initiatives, which Community through The financial contribution of the ESF represents 2% 2% represents ESF the of contribution financial The of the national cost of active employment measures measures employment active of cost national the of Denmark. in operating Fund financial InStructural allocation. Fund Structural total the of % n Denmark. in In addition, some ECU 105.3 million are allocated allocated are million 105.3 ECU some addition, In 153.5 36.5 36.5 117 44 222 22 C ilo rcs validtimeprices Decisionsof at- million ECU 5. 147.2 152.2 127 4 140 149 . 7.2 3.2 . 7.2 3.2 140 EAGGF i i l i i i p a rm CHAPTER 6 DENMARK BREAKDOWN OF STRUCTURAL FUND ALLOCATION BY OBJECTIVE Objective 5b 72% Objective 5a 36% Objective 2 16.3% Objective 4 Objective 3 35.3% BREAKDOWN OF ESF ALLOCATION BY OBJECTIVE Objective 4 ______Objective 5b 11.2% 3.2% Objective 2 Objective 3 77.6% B. Main features of the ESF This chart highlights the importance attached to Objective 3 which absorbs more than 35% of the total component in the Structural Structural Fund allocation (78 % of the ESF alloca Fund programmes tion) Structural Fund aid is divided between eight SPDs - EU-wide Objectives - The ESF contributes to five of these programmes involving only the ESF The Single Programme Document (SPD) approach is used for the programming of all cofinanced Structural aid actions. The total Structural Fund allocation to Denmark is shared between 8 SPDs; 2 horizontal SPDs (Objectives Objective 3 3 and 4), 3 Regional SPDs (2 for Objective 2 and 1 for Objective 5b) and 3 horizontal SPDs under Objective 5a Combating long-term unemployment and in which the ESF is not involved. In addition to these, the facilitating the integration into working ESF contributes ECU 58.3 million to Operational Programmes under Community Initiatives, out of which life of young people and of persons ECU 14 million for the Employment Initiatives and ECU exposed to exclusion from the labour 31.7 million under the Adapt Initiative. market; promoting equality of opportunity EUROPEAN SOCIAL FUND 73 More than 78 % of the ESF contribution to Denmark These priorities are very much in line with the general is concentrated on the following four priorities estab strategy for national active measures developed in lished in the SPD for Objective 3: Denmark, which is why the focus is not so much on defining very specific priorities but on allowing each Priority 1 SPD to develop a whole range of active measures to Facilitating the vocational integration of young people. promote employment. ECU 55 million In conformity with Danish practice, all of the target Priority 2 groups and specific measures are defined at regional Supporting unemployed people threatened with long level. This allows for greater flexibility in the use of term unemployment. ECU 144 million ESF aid. Priority 3 The ESF cofinances a number of measures which com Helping people at risk of exclusion from the labour plement the ‘obligatory measures’ provided for in market. ECU 58.5 million national legislation. These measures may be integrated with the ‘obligatory measures’ if they can contribute Priority 4 something new to them or enhance their quality, but Technical assistance, particularly for financing ESF under no circumstances may the ESF contribution be coordinators working at regional level and for the coor used to directly finance the obligatory measures as such. dination of job-rotation programmes. ECU 5.5 million Within the framework of the priorities set in each SPD, These priorities reflect the aims of the ESF under preference is given to measures that enable partici Objective 3 and, at the same time, complement pants to attain a qualification in order to enhance their Danish labour market policy as it was defined in the competitiveness in the labour market. This normally important reform of the labour market which came into takes the form of long-term training. These measures effect on 1 January 1994. Heavy emphasis was placed are tailored to the specific needs of the participants on the need to reduce unemployment through an and the requirements of the labour market. One of active labour market policy geared to meeting the their purposes is to foster direct links between the par needs of the unemployed, employees and enterprises. ticipants and the open labour market. The reform contains very concrete measures for the unemployed: job opportunities, education and training linked to tax rebates and a revision of the unemploy ment benefit system, protected forms of employment for disadvantaged groups; stimulating demand for low- Key points - Objective 3 skilled labour; and giving regional labour market authorities an opportunity to adapt their activities so ♦ ESF support used to complement as to gear them more closely to the needs of the unem and contribute to the development ployed and the requirements of local labour markets. of active measures in the labour market ♦ special focus on the most BREAKDOWN OF ESF FUNDING disadvantaged target groups BY PRIORITY - OBJECTIVE 3 ♦ priority to measures designed Priority 4 2% to fight long-term unemployment and to promote the vocational Priority 1 21% integration of young people ♦ use of ESF resources to develop innovative measures and to identify new and more effective ways of combating unemployment. PART CHAPTER 6 DENMARK Four priorities were therefore decided upon: OBJECTIVE 4 Priority 1 Measures to anticipate the evolution of the labour mar ket. ECU 5. 7 million Facilitating the adaptation of workers to changes in production systems Priority 2 Vocational training measures, counselling and guid ance. ECU 19. 4 million The SPD for Objective 4 was first adopted for the period 1994-1996 with an allocation from the ESF Priority 3 totalling some ECU 13 million. The SPD was subse Measures to enhance and develop vocational training quently extended to the end of 1999 bringing the total systems. ECU 11.4 million ESF contribution to ECU 38 million. Priority 4 In defining the strategy and priorities of the SPD, the Technical assistance. ECU 1. 5 million Danish authorities took into account the situation on the labour market, future prospects, and the reform of the labour market which came into effect on 1 January 1994. Some of the new regulations coincided with the Key points - Objective A strategic guidelines of Objective 4. They provided for training leave designed to promote a job rotation sys setting up an effective anticipation tem in which the continuing training of workers can be system and using the results in a combined with vocational training schemes for unem targeted and coordinated way: ployed people; the idea was that the latter can substi enhancing labour market tute for workers temporarily absent on training courses. Other new initiatives promoted the retraining monitoring systems of adults and the upgrading of skills for heads of enter enhancing vocational training sys prises. tems to promote greater flexibility in the labour force in relation to Priorities were established in the light of the following skill requirements features of the Danish labour market: ♦ most of the labour force lacks adequate development of vocational training vocational qualifications and is there in new technology used in the fore at risk of unemployment; services sector ♦ Danish society is being restructured, emphasis on providing counselling shifting towards a society of services, to enterprises, particularly SMEs, information and technology; in order to optimise results from ♦ there have been rapid developments in the fields of information technology, the the anticipation system environment and bioethics. The impor tance of these sectors is destined to grow and should lead to the develop ment of new products and jobs; ♦ the labour market must be monitored continuously to ensure a dynamic employment policy; and BREAKDOWN OF ESF FUNDING ♦ the importance of counselling SMEs. BY PRIORITY - OBJECTIVE 4 Priority 4 EUROPEAN SOCIAL FUND 75 Regional Objectives - in which the ESF integrates with other Structural Funds There has also been a substantial increase in the num r Objective 2 ber of areas qualifying for aid under Objective 2 in the Lolland region, compared to the previous programming period. Industry in this region is characterised by a Converting the regions seriously affected predominance of small enterprises, little experience of development activities, lack of qualified and expert by industrial decline. labour, and an exodus of young people. Lolland also has the highest unemployment rate in the country and its employment level has dropped more than that of Two areas qualified under Objective 2 at the time of other regions. This is partly due to its heavy depen programming, and each has its own SPD: the North of dence on agriculture and the problematic reconversion Jutland and the region of Lolland. About 8. 5 % of the of agriculturally-based activities and other sectors Danish population lives in these two regions and they affected by the closure of the Nakskov Skibsvaert ship get Structural aid totalling ECU 122 million, ECU 27 yard. The objective is to boost development in the million of which is from the ESF (22 %). region, to strengthen the economic base and to create short and long-term employment. The region of North Jutland receives by far the greater allocation with 16 municipalities qualifying under Objective 2, compared to only 6 in the previous period. This region therefore absorbs about 83 % of the Objective 2 Structural Fund aid and almost 79 % of the ESF share. North Jutland is currently in a transitional Key points - Objective 2____ phase, with a significant shift from the primary to the secondary sector, due a decline in agriculture and fish ♦ development of indigenous potential eries. The overall strategy in these Structural Fund ♦ expansion continuing training actions is to renew and adapt the economy to the needs of national and international markets. The programme ♦ transfer of know-how from research should lead to the creation of some 2200-2900 direct institutes to enterprises jobs and help enterprises raise turnover, particularly ♦ facilitating access to employment through new exports. The need to raise skill qualifica for persons with medium or high tion levels in the manufacturing, construction and level training, especially in SMEs tourism sectors is emphasised all of the three priorities established in the SPD for North Jutland. PART CHAPTER 6 DENMARK ■ Objective 2 Q Objective 3 □ Objective 4 I Objective 5b rd Jylland Arhus ingkobing Vests Jaelland Sonder Jylland Lollam EUROPEAN SOCIAL FUND 77 The Human Resources component in Objective 5 Community Initiatives in Denmark The development and structural The four strands of the Employment Initiative - NOW, HORIZON, INTEGRA and YOUTHSTART - provide an adjustment of rural areas allocation of ECU 14 million to encourage the devel opment of good practice in the field of human resources through innovation, transnational coopera Some eleven counties comprising 43 rural municipal tion and local partnerships. ities and 27 small and large islands are eligible under Objective 5b and about 7 % of the population lives in The ESF allocates more than ECU 31 million within these regions. Structural Fund aid under this Objective the framework of the Adapt Initiative to cofinance is grouped together in one SPD. Some ECU 54 million transnational and innovative projects designed to help is allocated to this Objective, ECU 10. 6 million of wage-earners and workers to anticipate and adapt to which comes from the ESF (20 %). This represents 3. changes in production systems. 3 % of the total ESF allocation to Denmark. In addition to this, the ESF contributes ECU. 12.6 to The strategy of the programme is to create and sustain other Community Initiatives: - Leader, Pesca, SME, employment, improve the standard of living, and con Urban, Interreg, and Konver. tribute to the protection of the environment. Three priori ties were established, in addition to technical assistance: diversifying and protecting the environment in agriculture and forestry; developing enterprises and tourism. Key points - Objective 5b ♦ 3. 3 % of the ESF contribution ♦ the need to enhance qualification levels and develop human resources. CHAPTER 6 DENMARK SECTION 3 Programme content and ESF policy aims A. Vocational integration of the training module wherever possible. Job place ment actions are organised within the framework of people threatened with the job rotation schemes. long-term unemployment All of these actions are adapted to the individual needs of the participants, the situation on the local There has been a very substantial increase in long labour market and local complementary training term unemployment over the past few years. More opportunities. than 144,000 (39%) of the people out of jobs in 1993 were in long-term unemployment (out of work Actions must strive as much as possible to boost for more than ten months) and almost half of them direct contacts between the beneficiaries and the had been unemployed for more than two years. open labour market. They must also lead to the About 86% of the long-term unemployed were in attainment of a certificate. the 29-59 age group and a little more than half were women. It has also been established that more Priority is given to courses involving a package of than 60% had had no vocational training. It is individual measures, lasting for a period of at least therefore not surprising that Denmark has chosen to six months. allocate 54. 7% of Objective 3 resources to mea sures aimed at people at risk of long-term unem About 18000 people are expected to obtain train ployment. It is significant that this priority alone ing, under the Danish SPD. The average duration of represents close to 44. 5 % of the total ESF contri training cofinanced by the ESF is 730 hours, bution to Denmark. The measures put in place give which is equivalent to 20-37 weeks of training, preference to people over the age of twenty-five, depending on the number of training hours per those who have been unemployed for more than 12 week. These cofinanced measures are integrated months and people in the 35-50 age group whose with national measures, bringing the average dura employment is at risk of becoming long-term unem tion of training to a minimum of six months per ployed even if it is only short periods initially. beneficiary. Special emphasis is placed on people who have either never started or completed vocational train ing, and people whose skills have become obsolete. B. Vocational integration of The actions cofinanced by the ESF are mainly young people training or courses which combine theoretical training with job placements assisted by temporary In 1993, 56000 young people between the ages of job subsidies. Three types of actions are available: sixteen and twenty-four were unemployed, corre ♦ vocational training including retraining or sponding to 11. 3% of the active young population. training tailored to the specific needs of About 89% of these young unemployed were people at risk of long-term unemployment; between the ages of 20 and 24. ♦ counselling and guidance, as well as preparatory training leading to voca Certain groups in the young unemployed category tional training. There is also provision are particularly vulnerable and at risk of falling into for assisting people at the end of their long-term unemployment: young people without training, either by helping them in their skills or work experience, young mothers, and immi search for a job or in indentifying and grants. One third of the young people of each gen integrating them in training leading to a eration fails to complete vocational training or other higher qualification; forms of education once they have left the school ♦ actions combining training with job system. This is why Denmark has set the vocational placements, fostering direct links integration of young people as an important priority between training and employment. in the SPD for Objective 3 and allocated close to 17% of the ESF allocation to this goal. Generally speaking, the training should lead to a qualification, whether it be a basic or qualified. The measures which are cofinanced by the ESF inte The ultimate aim is to give trainees vocational grate with national measures already being imple qualifications suited to the needs of the labour mented in Denmark to give young people an oppor market or to prepare them for more specialised tunity to integrate recognised forms of vocational vocational training. Practical training is included in training with a job. These measures are targeted at EUROPEAN SOCIAL FUND 79 80 DENMARK PART 2 HPE 6 CHAPTER C. Integration of people at riskpeople at Integration of C. on pol udrte g o wnyfv h have who twenty-five of age the under people young who have spent only nine or ten years in the school school the in years those ten or nine training, only spent have vocational who completed never who or tional integration of the unemployed threatened with with threatened unemployed the of integration tional voca the of similar framework very the are within ESF developed those to the by cofinanced actions The or unemployment long-term of risk at are who ers,moth young and immigrants like those, and system, riig ihn h faeok f esrs cofi measures of framework the within training been unemployed for more than three months. months. three than more for unemployed been dpe t h seii nes fyug people. young of needs specific the to adapted with national training measures which means that that means integrated is which measures This training period. national months with twelve to over six out carried a hours, 975 is ESF the by supported en xldd rm h lbu market. labour the from excluded being started never have who those to given is Preference Some 7000 young people are expected to undergo undergo to expected are people young 7000 Some ah ot cn xet n erstann r more. or training year's one expect can youth each the population subject to very long periods of unem of periods long very to subject population the long-term unemployment and are, of course, course, of are, and unemployment long-term rns s lot or ie te ainl average. national the times four almost is grants training of duration average The ESF. the by nanced ih iaiiis ad te vleal ctgre of categories vulnerable other and disabilities, with cin ae ocnrtd n imgat, persons immigrants, on: concentrated are actions categories run the risk of being permanently permanently being of risk the run categories h lbu mre. Seil teto i gvn to given is twenty-five. of age attention the under in people Special measures young active market., of help labour of the the chance with a have job, are a still finding but priority market labour this the from of framework the within oped been have they if market, labour the from excluded these from People disabilities. with people among roiy ic i hs hsn o eoe oe than more devote to chosen has it since this priority to importance of lot a attaches clearly Denmark riigad nld ohrspot actions. support other include and training to training general of framework the within vided areas other two under implemented those to similar exclusion of risk at are who people for designed immi among rate unemployment The ployment. and 3 Objective for SPD the of priority third the is ih lbl taeis ht nops mr than more encompass that strategies global with exclusion Because training. of forms isolated avoid pro is training possible, Wherever intervention. of unemployed for more than two years. Actions devel Actions years. two than more for unemployed high particularly also are rates Unemployment 18% of its total ESF allocation to this purpose. This This purpose. this to allocation ESF total its of 18% Measures developed under this priority are also very also are priority this under developed Measures is a very complex phenomenon, there is an effort to effort an is there phenomenon, complex very a is integrate co-financed measures as much as possible possible as much as measures co-financed integrate of exclusion from the labourthe exclusionfrom of market D. Promoting equal Promoting D. h tre rusae eie s follows: as defined are target groups The riig oiacd y h EF n hs P, o a for SPD, this in ESF the by cofinanced training weeks, depending the length of the training week. training the of length the depending weeks, from benefit to expected are people 6000 About duration of 825 hours, covering a period of 22-41 22-41 of period a covering hours, 825 of duration tion rate of women between the ages of 25 and and 25 of ages the between women of rate tion female unemployment rates (13. 7% for women women for 7% and (13. male rates between unemployment absence the difference female Denmark; in substantial any high of particularly is participa 49 the that fact the intervention; of area rm esrs oiacd y h ESF. the by benefited cofinanced had men measures than from women more years, few There is, however, one measure which is explicitly explicitly is which measure one however, is, There women, and men to open actions in participate to fer and 11. 3% for men); the fact that women and and women that fact the men); for 3% 11. and this to priority specific a devote to necessary they tend to fulfil the eligibility criteria especially especially criteria eligibility the fulfil to tend they o svrl esn Dnak i nt osdr it consider not did Denmark reasons several For often get priority in certain measures because because measures certain in priority get often e wr euly fetd y ogtr unem long-term by affected equally were men rather than courses specifically geared to women. to geared specifically courses than rather past the over because finally, and, - ployment intended for women and designed to facilitate the the facilitate to designed and women for intended n ead o o sil levels. skill low to regard in women that case the often is it generally, More market. labour the into mothers young of integration tsol lob oe htms aihwmn pre women Danish most that notedbe also should It opportunities between between opportunities e ad women andmen pros ih iaiiis dfnd as defined disabilities, with persons ♦ ♦ immigrants, including: nationals of foreignof nationals including: immigrants, ♦ ♦ vulnerable groups in very long-term long-term very in groups vulnerable ♦ two years. These are people who are very very are who people are These years. two guagecourses meaandofduration thethe origin, immigrants who have acquired acquired have who immigrants origin, phys or mental a of because limited are hy ae r usie t te require the to unsuited are have they qualifications the or skills necessary the ue a b alrdt idvda needs. individual to betailored cansures persons whose employment prospects prospects employment whose persons unemployment, defined as those who who those as defined unemployment, aih iiesi ad eod generation second and citizenship Danish disability; ical et o te oa lbu market. labour local the of ments lack either they because market open the inlabour employment find to than unlikely more for work of out been have mirns Maue my nld lan include may Measures immigrants. E. Anticipation of labour Vocational training to adapt workers to qualifica tion needs on a continuous basis market trends and adaptation of worker About 51% of the ESF contribution to the SPD for Objective 4 is allocated to measures designed to adapt skills to change the skills levels of workers a continuous basis. Various forms of training and counselling are included: Anticipation Training Denmark has chosen to devote 14.6% of its allo cation to anticipation which constitutes the first Actions include: continuing training and retraining priority of the SPD for Objective 4. Measures under focused on specific qualifications; multisectoral this priority are designed to guarantee more reli training schemes and experimentation with educa able forecasts of labour market trends, both at tional tools; the use of new technology and materi regional and national level. The aim is to strike a als, and new ways of organising work. There is also balance between emerging skill and qualification provision for reconversion measures to enable requirements, and the development of human workers to adapt to higher quality standards and resources. environment-friendly production methods. Measures are therefore aimed at: Due to the nature of the Danish labour market and ♦ developing and enhancing the national its skill levels, measures are mainly focused on: anticipation and monitoring system; ♦ workers threatened with unemployment ♦ promoting the use of anticipation and due to insufficient vocational training; monitoring systems in industrial circles, ♦ unemployed workers, particularly work particularly in enterprises; and ers who have been in and out of jobs ♦ setting up a standing evaluation over the past five years; committee. ♦ workers who have had vocational training but who, with more specific training, There are four different types of actions: could have a chance to attain a higher skill ♦ raising the number and quality of moni level and, consequently, a new job;and toring methods and instruments: this ♦ heads of enterprises managers and peo should enable certain sectors to analyse ple in charge of training in firms, partic qualification gaps, both at a general and ularly in SMEs, as well as the personnel specialised level, and to foster links responsible for job placements. between the mainstream and peripheral labour force with the aim of generating Counselling. new forms of employment, in sectors Counselling measures (often integrated with other such as services for example; actions) are mainly aimed at SMEs to help them ♦ boosting coordination to promote a more develop human resources in fields such as: technol widespread dissemination and better ogy, marketing, organisation, and finance. It should use of the results of anticipation and also be noted that a network has been set up for the monitoring systems in enterprises; systematic exchange of information on the organisa ♦ coordination is also boosted to make tion of work, continuing training and retraining. better use of the methods and lessons There is even cooperation, which has practically drawn from studies conducted at been institutionalised; for personnel exchanges regional level, by labour market authori between enterprises and other joint activities. ties, municipalities, pedagogical estab lishments, sectoral research institutes, enterprises, the social partners and pro fessional organisations; and F. The ESF - an instrument of ♦ setting up a permanent evaluation com regional development mittee to devise and implement new mon itoring and anticipation instruments and In view of raising the level of skills and qualifications, methods. The conclusions drawn by this ESF actions focus on training and retraining, targeted committee are then used to establish the at people working in SMEs. To boost human potential priorities for each Objective and in the in the fields of R&D, actions are developed to encour annual revisions of allocations in order age transfer of know-how from research centres to the optimise the use of ESF resources. companies, through an appropriate network. 82 DENMARK SECTION4 Management and follow-up and Management The Ministry for Labour is responsible for all aspects of aspects all for responsible is Labour for Ministry The h ipeetto o te S i Denmark. in ESF the of implementation the hc i i cag o mntrn ad oto o al of all of control and monitoring of charge in is which h fnnil set o te ud a el s maintain as well as fund, the of aspects financial the hs eatet s epnil fr h codnto of coordination the for responsible is department This ht hy r ipeetd s fetvl ad consis regions. and all in effectively possible as as tently implemented ensure to are endeavours they and that Denmark in actions ESF all structures Implementation jects. This Committee comprises the social partners partners social the comprises Committee This jects. Commission. the with liaison Training direct ing Vocational and Placement Employment, h EF o nue oriain t einl level. regional at coordination ensure to ESF the pro approve and examine to place in is are Committee Initiative Adapt the and Programmes 4 Objective level. regional and national both for General Directorate the is it ministry, the Inside n rpeettvs rm h rgoa cmite of committees regional the from representatives and at out carried is ESF the of management day to Day managed at national level. A National Selection Selection National A level. national at managed national at level managed Programmes betv 5 Porme ae lo aae at managed also are Programmes 5b Objective ainl ee btwt a iprat ee o involve of Regions. level the important from an ment with but level national the regional and municipal authorities. These These authorities. municipal and regional the Councils, the social partners and representatives from from Market representatives and Labour partners social the the ESF, from Councils, the Employment of representatives committees the comprising regional the and by administered Programmes 3 Objective the programmes. They are also responsible for financial financial for responsible also supervise are and They manage programmes. the guide, initiate, Committees The omtes r asse b a ertra drce by directed coordinator. secretariat a ESF an by assisted are Committees regional at managed Programmes level hn n Region. one managed than is measures 3 Objective the of part small A committees. monitoring the organising for and aspects t ainl ee - hn h porme ivle more involve programmes the when - level national at n al eiin prann t fnnig r tkn by taken are financing to pertaining decisions all and ntaie r mngd t einl ee. hy are They level. regional at managed are Initiative aie fo te uhrte ta mng te pro the manage that authorities the from tatives committees monitoring The rme n h raiain ivle i ter imple their in involved organisations the and grammes represen comprise and year a twice meet Committees oa eeuie committees. executive local regionally managed are Programmes 2 Objective Both etto. h sca prnr ae ersne and represented are partners social The mentation. These Committee. Monitoring own its has SPD Each ly n cie oe n l o tee Committees. these of all in role active an play PART 2 CHAPTER 7 Finland SECTION 1 Economic and labour market situation at the time of programming of Community structural funding for the period 1995-1999 Economic situation Labour market A major effect of the recession was that unemployment In the years prior to Finland's accession to the EU, the rose over six-fold in just five years. In 1990 the unem economic boom of the 1980's was put well and truly ployment rate was 3.6%, but by 1994 it had reached 18.4% almost double the EU average; in 1995 it was in the past and the Finnish economy suffered the around 22 %. From 1990 to the first quarter of 1994 some 475, 000 jobs had been lost, accounting for one- deepest recession it had ever known. This was mainly fifth of the work-force. The construction, forestry, mining, hotel, insurance and industry sectors felt the brunt of the attributable to the global recession and the end of the recession. Long-term unemployment was a severe prob Soviet Union, which had been one of Finland's main lem, accounting for 27.4% of all unemployed (136, 000 people) in 1994. Older people were hard hit; over 50% of trading partners. Recession affected Finland more the unemployed over 55 years of age were long-term unemployed. Young people were also particularly than most other industrialised countries. Growth fell affected; in 1994 over 9, 500 young people under 25 had into negative territory and domestic demand plum been unemployed for over a year, representing 11% of all young unemployed; by 1995 this had risen to 18% (14, meted when exports to the Eastern bloc collapsed 000 young people). Youth unemployment was a problem and in 1994 the unemployment rate for the under 25s and the competitiveness of Finnish products in was 33.6%. By the end of 1994, the employment situa Western markets was eroded. During the period 1990 tion for young people was beginning to improve, mainly due to education and training projects. Moreover, the to 1993, overall production declined by 13%. number of people facing total exclusion from the labour market grew rapidly during the recession and by 1994 Although by 1993 an upswing in exports had occurred represented 9.5% of the unemployed (45, 200 people); this figure grew to around 50, 000 in 1995. and the recession was diminishing, Finland was left heavily indebted; debt rose to 63% in 1994 and stood In Finland, education and training policy is well devel oped, and equality of education is among the highest of at 65% in 1995, from just 10% prior to the recession. any industrial country. A high proportion of young peo ple are willing to be educated and undertake training. The recession was not helped by the fact that there Despite these strengths there are deficiencies in educa was a narrow industrial base in Finland, which con tion and skills. On-the-job and vocational training facil ities are in short supply and many people do not have centrated mainly on large companies in traditional adequate qualifications; around 63% of the long-term unemployed had only completed compulsory compre sectors like forestry, agriculture and engineering. The hensive education, 32% had completed medium level number of SMEs was below the EU average and most and only 5% had any third level education and training. were oriented towards the domestic market. While The Finnish Government is committed to halving the jobless figure by the year 2000 and employment-gen telecommunications and information technology was erating programmes have been stepped up to help meet this challenge. The key Government strategy, as defined fairly advanced, many SMEs lacked a technological in their ‘Multiannual Employment Programme', is to dimension. promote economic growth and to enhance its impact on employment. Some of the measures the Government has put in place to achieve this aim are: EUROPEAN SOCIAL FUND 83 Easing fiscal charges on the use Reforming working conditions to facilitate of manpower employment Employers’ and employees’ contributions have Reforms are taking place in relation to recruitment, been slightly reduced as an incentive to job cre the functioning of work communities and job shar ation and the Government is working on ways to ing. A host of legislation is being introduced to elim reduce other disincentives to recruitment and inate rigidities impeding job creation and recruit reform income tax as well as social contributions. ment. A job sharing scheme has been introduced. Strengthening education and training Shifting the main focus of labour market for the information society measures from unemployment benefits to active measures Education is being developed so as to fulfil the needs of the labour market. To this end the num A comprehensive reform of unemployment benefit ber of vocational training places has increased and and the subsidy system is underway; for example, apprenticeship training is expanding. a young person under 20 years of age is not enti tled to labour market support if he/she has not applied for education or has refused work, training or education. CHAPTER 7 FINLAND SECTION 2 Structural Fund programmes in Finland A. Allocation by Fund and Objective Finland qualifies for Structural Fund aid under the EU -wide Objectives 3 and 4, the regional Objectives 2, 5b, and, because Finland is a country with problems caused by low population density, under regional Objective 6. Over the period 1995-1999, Finland will receive total Structural Fund assistance of ECU 1.5 billion (see table below). The ESF contribution is ECU 525 million, about 33.8% of total aid. Community Initiatives also make a significant contribution to Finland amounting to ECU 151.5 million of which the ESF component is ECU 78.5 million. BREAKDOWN OF ASSISTANCE BY OBJECTIVE AND SOURCE OF FUNDING 1995-1999 ECU million - prices valid at time of Decisions Total Structural Funds ESF ERDF EAGGFFIFG Objective 2 201 43 158 1995 - 1996 69 14 55 1997 - 1999 132 29 103 Objective 3 258 258 Objective 4 85 85 Objective 5a Agric. 331 331 Objective 5a Fish 23 23 Objective 5b 195 33 95 67 Objective 6 461 106 173 178 4 Total 1554 525 426 576 27 Community Initiatives Employment 33 33 Adapt 23.5 23.5 Others 95 22.3 54.5 16.3 2.2 Total 151,5 78.5 54.5 16.3 2.2 General Total 1705.5 603.5 480.5 592.3 29.2 BREAKDOWN OF ALLOCATION BY FUND (excluding Community Initiatives) FIFG 33.8% EUROPEAN SOCIAL FUND 85 P A R T 2 CHAPTER 7 BREAKDOWN OF STRUCTURAL FUND ALLOCATION BY OBJECTIVE ______Objective 2 Objective 6______13.1% Objective 5a 22.5% BREAKDOWN OF ESF ALLOCATION BY OBJECTIVE 1995-1999 Objective 6 The Finnish authorities opted for Single Programming Documents (SPDs) to programme actions to be assisted by the Structural Funds over the period 1995-1999. There are seven SPDs, one each in respect of Objectives 3, 4, and 6, two for Objective 5b and two for Objective 2, one covering the period 1995-1996 and the other, 1997-1999. In addition, there are a number of Community Initiative Operational Programmes. CHAPTER FINLAND B. Main features of the ESF A range of innovative measures is available to fulfil the ESF priorities including: component in the Structural ♦ tailor-made packages of pathways to working life for those threatened with Fund programmes exclusion or long-term unemployment; ♦ training former employees of SMEs and providing pathways to self-employment; EU-wide Objectives 3 and 4 - ♦ innovative workshops, apprenticeship involving only the ESF training at basic and further levels for young people. Action to promote equality between men and women in the labour market is inherent in all priorities and mea V OBJECTIVE 3 sures under Objective 3. Combating long-term unemployment and Beneficiaries facilitating the integration into working life of young people and of persons It is expected that approximately 100,000 unemployed exposed to exclusion from the labour people will be assisted under Objective 3 during the period 1995-1999. market; promoting equality of opportunity The Objective 3 SPD for 1995-1999, approved on 25 BREAKDOWN OF ESF FUNDING July 1995, provides ECU 258.4 million to help the BY PRIORITY - OBJECTIVE 3 long-term unemployed, young people and those faced with exclusion; this is equivalent to 49.2% of all ESF Priority 4 funding to Finland. The SPD covers the whole of L8% Finland except the regions eligible under Objective 6 and includes a sub-programme for the Aland Islands. Priorities The ESF actions centre around the following priorities: Priority 1 Pathways to employment for the long-term unem ployed and people exposed to social exclusion. (ECU 110 million) Priority 2 Employment creation and human resources develop ment in SMEs. (ECU 61.5 million) Priority 3 Youth start, integrating young people into the labour Key points - Objective 3 market. (ECU 82.2 million) Priority 4 ♦ ESF aid ECU 258.4 million = 49.2% Technical assistance and measures for the Aland of ESF aid to Finland Islands. (ECU 4.17 million) ♦ emphasis on innovative ESF actions to reduce unemployment and develop growth ESF actions under the sub-programme for the Aland ♦ focus on training for the long-term Islands focus on the following priorities: ♦ preventing long-term unemployment unemployed and young people, and and exclusion from the labour market; training and job creation in SMEs ♦ the integration of young people into ♦ around 100, 000 people to benefit the labour market. EUROPEAN SOCIAL FUND 87 88 FINLAND PART 2 HPE 7 CHAPTER The Objective 4 SPD, also adopted on 25 July 1995, 1995, July 25 on adopted also SPD, 4 Objective The h EFfcss n or roiista rfette pol the reflect that priorities four on focuses ESF The n nw rdcin methods. production new and about for accounting million, 84.6 ECU represents o hp sbeun tann courses. training order in subsequent shape to qualifications and life working sys use analyse and to tems develop create, to measures involves This marketlabour the life, working in changes Anticipating os ad riig o toe ih ite riig and training little with those for training and jobs, million 7.6 ECU requirements. vocational and 1 Priority Priorities life-long changes encourage industrial to SPD adjust workers the help to under learning activities ESF selling. ECU 47.5 million 47.5 ECU selling. c gas f betv 4: Objective of goals icy le workers; older 2 Priority 61 o ttl S ad o Finland. to aid ESF total of % 16.1 and help organisations, particularly SMEs, to develop develop to SMEs, particularly organisations, help and Priority 3 Priority with those skills, for work training about changing advice in and information training include Measures Priority 4 Priority of methods new devise expertise; of centres model million 25.5 ECU networks. instruction; train instructors, including in evaluation evaluation resources. in human including instructors, develop train to: instruction; actions are priority this under Featured and structures innovation and expertise of Promotion Vocational training and retraining; guidance and coun and guidance retraining; and training Vocational sad. C million 4 ECU Islands. ehia assac ad esrs o te Aland the for measures and assistance Technical o hne i pouto systems production in changes to Facilitating the adaptation of workers workers of adaptation the Facilitating ESF priorities are: priorities ESF ne te u-rgam fr h Aad sad, the Islands, Aland the for sub-programme the Under ROIY OJCIE 4 OBJECTIVE - PRIORITY All in all, about 34,500 workers should benefit from from benefit should workers 34,500 about all, in All BY FUNDING ESF OF BREAKDOWN os il e h mjr beneficiaries. major the be will tors Objective 4 actions during the period 1995-1999. 1995-1999. period the during actions 4 Objective tf i SE, nrpeer (oh oeta ad exist and potential (both entrepreneurs SMEs, in Staff Beneficiaries n) n wressc a riig lnesad instruc and planners training as such workers and ing) e pit - betv A Objective - points Key ntoa maue sc a sres and surveys as such measures national ♦ which training quality and education ♦ wres n Ms entrepreneurs, SMEs, in workers ♦ and innovation training, on focus ♦ = million 84.6 ECU is aid ESF ♦ riigad ehia spot measures. support technical and training follow up and evaluation of education, education, of evaluation and up follow analysis of educational needs; continuous continuous needs; educational of analysis et f skills; of ment novs esrsamd tte develop the at aimed measures involves anticipating trends anticipating are targetedare ntutr n riig planners andinstructorstraining 61 o EF i t Finland to aid ESF of 16.1% ___ Priority 3 Priority Priority 4 Priority roiy 1 Priority Priority 2 Priority 30.1% 56.2% 4.7% 9% PART 2 CHAPTER 7 FINLAND Regional Objectives - In which the ESF integrates with other Structural Funds Priorities OBJECTIVE 2 The ESF works with the ERDF to develop the economy of these regions. Essentially the ESF concentrates on: Converting the regions seriously affected by industrial decline ♦ increasing, developing and internation alising entrepreneurship. The main ESF measure is staff development. This includes action to increase human Finland's Objective 2 area encompasses parts of the resources support for the development regions of Varsinais-Suomi, Satakinta, Pljat-ITme, and internationalisation of SMEs, to East Uusimaa, Kymenlaako, South Karelia, Central improve co-operation between compa Finland and Central Ostrobothnia. Though regional nies, training and research institutions variations exist, the weaknesses common to these and to develop human resources sup regions are a tendency to be dependent on a few large porting business activity including train companies in traditional industries such as forestry, ing in entrepreneurship; chemicals and metal manufacturing, and the fact that ♦ raising the level of skills and technology existing SMEs are too domestically oriented and lack supporting business activity. This an international dimension. Constant erosion of these includes actions to increase human traditional sectors has lead to an unemployment rate resources development relating to the which is much higher than the average in Finland. In implementation of new technology, 1994 the average unemployment rate in the Objective developing technological competence 2 regions stood at about 23%. Young people, women and staff know-how. and the long-term unemployed were particularly affected. As a result of the severe unemployment prob lem many people left the area in search of work. Beneficiaries The ESF allocated ECU 14 million under the first Objective 2 SPD approved on 11 July 1995 for the It is expected that around 5,000 people will benefit years 1995-1996. A second SPD was approved in under Objective 2 programmes. 1997 for the period 1997-1999 providing for ECU 29.8 million. Overall, Objective 2 ESF funding is equivalent to 8.3 % of ESF aid to Finland and totals ECU 43.8 million. Key points - Objective 2 ♦ ESF aid totals ECU 43.8 million or 8.3% of ESF aid to Finland ♦ ESF focus on staff development and actions to develop technological competence ♦ SMEs are targeted EUROPEAN SOCIAL FUND 89 HPE 7 CHAPTER i M 90 FINLAND I PART 2 | Objective Objective | 5b Objective §§§ 4 Objective □ 3 Objective □ 2 Objective ■ 6 Rannikkcsi Jivenanrfiaa/ lasan Aland -Satakunta Pohjanmaa^ Keski- Keski- Pohjanmaa^ Etela- aiSoi ^ Vali-Suomi arsinais- ianmaa Pirkanmaa oji- S. Pohjois- ojna \ Pohjanmaa Pohjois-Suomi lame Suomi Uusima ELSINKI Kainuu ymenlaaRs^ PART 2 CHAPTER 7 FINLAND Priorities OBJECTIVE 5b The ESF component in each of the SPDs focuses on: The development and structural ♦ diversification of primary production adjustment of rural areas and the development of tourism in the Aland Islands; this includes training related to the development of villages and farm tourism; Two SPDs, one for the rural parts of fourteen of the ♦ raising the level of skills and technology nineteen regions of mainland Finland and the other for supporting business activity by: devel the Aland Islands, were adopted on 13 November oping education and training structures 1995. Total Structural Fund aid of ECU 194 million is and the know-how of the workforce, allocated to Finland under this Objective, ECU 2.6 using information generated by RTD million to Aland and ECU 191.4 million to mainland units, and promoting and developing Finland. The ESF share amounts to ECU 32.8 million, business activity and entrepreneurship which is equivalent to approximately 6.2 % of ESF aid by increasing skills in SMEs. to Finland. Of this, ECU 0.28 million goes to Aland and the balance of ECU 32.54 million to mainland Finland. The total area covered amounts to 95, 219 km2 and has a scattered population of 1.094 million Beneficiaries (21.3% of the national population). Some 15,400 are estimated to benefit under Objective The regions are dependent on primary production 5b in the period 1994-1999. (agriculture and forestry) which provides 23.5% of total employment in the area, but there is a great need for adaptation to change and diversification in this sector. In recent years job losses in this and industry and public services sectors have handicapped the regional economy. Key points - Objective 5b ♦ ECU 194 million Structural Fund aid ♦ ESF aid ECU 32.8 million = 6.2 % of total ESF aid ♦ focus on diversification of primary production, raising the skills level and fostering tourism development in the Aland Islands ♦ SMEs are targeted EUROPEAN SOCIAL FUND 91 Priorities OBJECTIVE 6 The ESF actions combine with those supported by the ERDF, to stimulate new economic activity in the Development and structural adjustment regions in order to generate jobs; focussing on: of regions with an extremely low population density ♦ strengthening entrepreneurship and improving company competitiveness. This involves: promoting the establishment of compa Structural Fund allocations to the Finnish Objective 6 nies and entrepreneurship, primarily SMEs, providing regions amount to ECU 459.9 million and ESF assis staff training to underpin the competitiveness of SMEs tance accounts for about 23 % of this (ECU 105.8 mil in key sectors (forestry, agriculture, metals, tourism) lion). ESF aid under this Objective amounts to 20.2 % and supporting investment of key importance for the of all ESF aid to Finland. regions. The Objective 6 regions: Lappi, Kainuu, Pohjois- ♦ developing human resources and know Karjala and South Savo, and parts of North and Central how through research, technology and Ostrobothnia, Pohjois-Savo and Keski-Suomi, Pohjois training in key sectors. Savo, make up 60 % of the area of Finland and form the EU's north-eastern border. However, they account Human resources actions aimed at the development of for only 16.6% (840, 000) of the Finnish population. the information society are a special feature. In addi The main feature of the Objective 6 regions is that tion the ESF focuses on fostering cooperation and net their population density is less than 4 people per working, and promoting transfer of expertise. square kilometre and many of the municipalities in these regions are getting smaller. Provision is also made for Objective 3 and 4-type mea sures to provide training and counselling for the unem On the whole, the economy is dependent on declining ployed and to people at risk of redundancy. forestry, agriculture and public sectors and an unbalanced industrial sector which concentrates on a few major tradi tional industries and a small number of SMEs. A cold harsh climate and long distances from major markets Beneficiaries make commuting and living costs high. Career opportuni About 11,000 people are expected to benefit under ties are very limited and many people move away to find work, leaving an ageing population vulnerable to long Objective 6 during the period 1995-1999. term unemployment. Unemployment in the region is the highest in Finland (24% in 1994). This has exacerbated the regions' problems by causing more migration among the young, especially those with education. Key points - Objective 6______ ♦ ESF aid ECU 105.8 million, 20.2% of ESF aid to Finland ♦ SMEs are targeted ♦ focus on strengthening entre preneurship and competitiveness, arid developing human resources and know-how ♦ emphasis on telecommunica tions and development of the information society PART 2 CHAPTER 7 ■ ■ ■ ■ FINLAND Human Resources component of It is anticipated that 2, 000 people will benefit, mostly Community Initiatives those in SMEs, especially those with less than 50 employees. Partnerships between large and small firms The Employment and Adapt initiatives play a vital role are also encouraged, as large enterprises are often an in Finland. In total the ESF is allocating ECU 56.5 important source of know-how. Personnel in the public million to Finland under these Initiatives for the period sector may, in exceptional cases, benefit from Adapt 1995-1999. where they are affected by the cuts in public expendi ture causing them to leave public service and find work The national priorities for Adapt are: in the private sector or as entrepreneurs. ♦ the internationalisation of enterprises, particularly SMEs; The Adapt budget of ECU 23.5 million is divided ♦ the promotion of teleworking to help deal between: with the problems caused by isolation; ♦ supply of training, counselling and guid ♦ improving the quality and productivity ance (40%) ♦ anticipation, promotion of networking and of working life; ♦ improving the quality and productivity new employment opportunities (30%) of employment in adapting to structural ♦ adaptation of support structures and change; systems to structural change (20%) ♦ the promotion of networking; ♦ information and dissemination (10%) ♦ the evaluation of training, including dis tance learning, in enterprises; Employment, on the other hand, aims to raise qualifi ♦ the promotion of the introduction of new cations which improve opportunities in the labour mar technology in enterprises; the creation ket and the setting up of new firms with innovative fea of databases to support employment tures to improve growth and productivity. The ESF allo services. cation is ECU 33 million. In addition, the ESF contribution amounts to ECU 22 million through other Community Initiatives: Urban, Interreg, Leader, Pesca and SME. EUROPEAN SOCIAL FUND 93 94 FINLAND SECTION3 Programme content and ESF policy aims ESF policy and content Programme A. Vocational integration of of integration VocationalA. etn ln-em nmlyet s mjr ol in goal major a is unemployment long-term venting unem long-term becoming of 6 danger in was Objective group (excluding 550 70, at stood 25 over h idvda ptwy t epomn fr people for employment to pathways individual The ESF. the by aided are which activities the a of are measures feature innovative Finland, in advanced well work. Together, these elements form an effective effective an form elements these Together, work. ih S assac, csoie ptwy is pathway customised a assistance, ESF With approach. innovative the of example gooda is 25 over is policy employment As aim. policy this to cated ru atvt ssin ad riig n cn last can and training and sessions activity group skills, either basic or retraining, together with the the with together retraining, or basic either skills, drawn up by the labour office for the individual individual the for office labour the by up drawn this of 20% about that estimated was it and regions) udne avsr srie; aer lnig train planning; career services; advisory advice, guidance; job-seeking providing: programmes tomised include also can programme The combination. ahas o employment to Pathways lyd Hne rdcn uepomn ad pre and unemployment reducing Hence, ployed. ac t tann i SMEs. in training to tance unem long-term prevent to effort the of part As hours. 050 1, around iln ad codnl, 3 o EF i i allo is aid ESF of 33% accordingly, and Finland hoeial-ae splmnaytann i com is training supplementary Theoretically-based social commercial, legal, (e.g. qualifications cialist SMEs in specialists of Training cus these support to developed being are Services at training practical or work subsidised of provision unemployed person. This consists of a career plan, plan, career a of consists This person. unemployed In April 1995 the number of unemployed people people unemployed of number the 1995 April In a business, which involves developing international international of developing involves development the which business, a furthering per with involved unemployed is The son training. on-the-job of part as vocational upgrade to training of period a involving uies rdae) a bnft rm S assis ESF from benefit may or graduates) engineering business administrative, spe science, with behavioural 25 over people unemployed ployment, self-employment. for opportunities and, ing, ments. It is hoped that around 70% of those who who those of 70% around that hoped is It improve ments. quality and development product markets, ventures development company-related with bined participate will be employed at the end of the train the of end the at employed be will participate n. eonsd etfcts r aalbe o those for available are certificates Recognised ing. epetraee with threatened people ogtr unemployment long-term B. Vocational integration of integration VocationalB. h ucsflycnld h riig wih lasts which training, the conclude successfully who h business). the the use to start-ups business new encourage to hours. 350 1, around grant which helps him survive while starting-up starting-up while survive him helps which grant hog idvdal alrd riigwih a be supported can which are training business tailored a individually through establish who Those to relates Training hours). (750 is grant months start-up five the andfor hours) (600 months four their standards in 1994 (9%) and January 1995 1995 January and (9%) 1994 in standards their Islands Aland learning. distance by partly out carried training. after or during business small a start-up for capital as used be to intended not is grant (the entrepreneurship For Pathways the labour market by complementing the education education the complementing by market labour the livelihood a receive can business, a capa start the have to to judged bility is who and idea, com a mercial with person unem unemployed the An for 25. over ployed available are programmes neurship prevent to and available is which potential human need clear a is there and Finland in enterprises new f h uepoe wt patcl riig r sub or training places. work practical sidised with unemployed the of entrepre for Pathways unemployment. long-term ln sbporme hc ae ie a prevent at aimed are which sub-programme Aland prod and taxation internationalisation, marketing, around for lasts This option. an also is form, ule who are not particularly interested or are simply simply are or interested particularly not are people who young of group a is there but high, is training were 000 29, olds. these, year Of olds. year 15-24 were (8.7% ). The ESF is supporting measures in the the in measures supporting is ESF The ). (8.7% to trainee the for is aim The development. uct mod or group either in training, Entrepreneurship 000 100, about for room is there that estimated is It nmlyet n h Aad sad ws ih by high was islands Aland the in Unemployment ing long-term unemployment and exclusion from from exclusion and unemployment long-term ing under 20, wich is equivalent to 9% of all 15-19 15-19 all of 9% to equivalent is wich 20, 14% under whom of unemployed, as registered people unwilling to study. In accordance with the Youthstart the with accordance In study. to unwilling In April 1995, there were around 90, 000 young young 000 90, around were there 1995, April In n iln, h priiain ae n dcto and education in rate participation the Finland, In young people young FINLAND principles and the Finnish Government's own policy, These workshops provide much needed vocational particular attention is paid to the integration of training that helps young people under 25 years of young people without basic vocational skills into age to integrate into society or education or find working life. About 19% of ESF funding is devoted work after the training is completed. These work to this policy aim in Finland. shops also take a much more active role in the future of the young person than was previously the Apprenticeship training case and guide the young person towards entrepre Alternative training options are needed for this neurship and self-employment. group and they are provided through on-the-job training and special activation and motivation for Beneficiaries further training. For those under 20 years of age Around 10, 600 young people annually are without skills, basic apprenticeship training pro expected to benefit and a certificate is available at jects are available, as an alternative way of obtain the end of the completed training period. ing a qualification for those who are not interested in traditional theoretical study. Aland Islands Most basic apprenticeship training is co-funded by Youth unemployment in the Aland Island the ESF. This form of training leads to the same amounted to 15.1% in January 1995. The ESF is vocational qualifications as training in educational supporting the integration of young people into the institutions. The student has a contract of work with labour market through education and practical an employer and is paid during the training period. work concentrating on training which is not fully Training is provided through a nationwide pro covered by general education. The programmes for gramme, on the basis of which an individualised young people out of work concentrate on areas programme is prepared in conjunction with the where there are future job prospects, including pre enterprise, the provider of the theoretical training serving old handcrafts and the practical use of lan and the trainee. Most of the training takes place in guage and culture. the workplace and theoretical study is also arranged. Usually the training lasts for two to three years, 20%-30% of which is made up of theoretical study. C. Integration of persons at risk of exclusion from Further apprenticeship training, which was previ ously available only for those over 25, has now been the labour market extended to people under 25. Most of this activity is planned under the ESF programme. This training The combination of persistent high unemployment is intended to improve the young persons' prospects and the growing impact of structural changes of finding work once training is finished and again, increases the risk of exclusion among unemployed consists of work contracts with employers; the immigrants and people with disabilities. The com young people receive pay and have individualised bination of unemployment and deficient or out training programmes for which the employer is paid dated occupational skills are characteristics of a training subsidy. these groups. In order to reintegrate them and make use of their employment potential, Finland is Workshops developing new kinds of cooperation between inter departmental services such as organisations for To try and bridge the gap between work and school, persons with disabilities, the unemployed and innovative workshops (a formula which started in mentally ill people, and introducing new work mod Finland in the 1980s), are being developed in the following seven main areas: els and encouraging a new kind of work culture. ♦ promoting the apprenticeship programme; Essentially, action supported by the ESF involves ♦ support for entrepreneurship; devising pathways to employment which combine ♦ workshop schools; various measures such as guidance and coun ♦ workshops in vocational schools for selling, rehabilitation, training and subsidised unemployed young people; employment. These pathways are customised to ♦ activities in master-apprenticeship areas; the person's own individual requirements. The par ♦ workshops for activity centres for young ticipants, the Employment Office and relevant people, and; groups or organisations all join in designing the ♦ support for young people who are pathway. The target group are the unemployed exposed to exclusion. socially disadvantaged under 55 years of age. EUROPEAN SOCIAL FUND 95 7 D. Promotion of equal opportu ♦ productivity, and, nities in the labour market ♦ the labour market and skill requirements. between men and women This network aims to accumulate information on the various trends and needs and form a chain of analy Though the female labour market participation rate of sis with which to forecast strategic and innovative 61.3% is among the highest in Europe, women still developments. find themselves at the lower ends of both the man agement structure and the pay scales. Women are Developing staff skills often hindered by opting for training in traditional ESF-supported action to develop the skills of peo sectors and a lack of opportunities for part time work. ple in SMEs and, potential or existing entrepre Moreover, as a result of redundancies in the public, neurs, consists of vocational training which commercial and services sector, - the number of enables these people to operate in rapidly develop unemployed females is anticipated to rise. ing occupations and production fields which are subject to constant change. Women benefit generally from all ESF actions taken in Finland because promotion of equal The focus is on SME employees who are under opportunities is an integral part of all measures threat of redundancy because of lack of skills. under all programmes; under the pathways to Training focuses on themes which include: devel entrepreneurship outlined above for example, oping an international perspective; management; women entrepreneurs are particularly encouraged. entrepreneurship; collaboration between SMEs; improving quality and productivity; marketing; environmental know-how; teamwork; information E. Anticipation of labour mar technology and communication skills. ket trends and adaptation of Maintaining working capacity through developing worker skills to change staff and the working environment is another area of ESF action. This consists of training for older Working life in Finland is going through a period of employees so they can keep their skills up to date. great change . To help workers to adapt to this change 22% of ESF aid is allocated to this policy Educational guidance and advice aim. ESF aid is helping actions aimed at providing a sin gle, nationwide, coordinated information system on Establishing, developing and utilising sys training and education opportunities. The aim is to tems of analysis ensure that information reaches employers and In Finland, ESF-supported projects are being under employees and they become aware of what is avail taken with the aim of creating a more systematic able and are motivated to take up training. approach to anticipating trends. Projects are organ ised as follows: Projects include developing: advice and information ♦ research into the labour market and networks, and support functions for these networks; working life including adapting to struc counselling services and information channels tural change through teleworking; including the media; newsletters; call centres provid ♦ statistical studies on trends and system ing expert advice, and computer-based information. atic collection of information; ♦ analysis of information from employment Centres of Expertise models centres such as, information on the work To further the transfer of research and development place, job-seekers, graduates and people knowledge from theory into practice through train undergoing training. The aim here is to ing and information services, the ESF is supporting build-up a continuous information sys the development of the Centres of Expertise model. tem relating to changes in working life. This programme was set up by the Finnish Government to improve the conditions for estab The ESF is supporting the establishment and lishing and developing companies that need a high development of a functional system to analyse level of expertise. The Centres operate as networks changes in: of universities, polytechnics and other educational ♦ working life; institutes. ESF support is primarily aimed at fund ♦ training needs in the industrial and infor ing training in these Centres for personnel in the mation society; SME sector who use new technology and who are ♦ vocational education; developing networking. PART 2 CHAPTER 7 FINLAND Teaching, learning and evaluation methods Boost human potential in the fields The ESF is helping to develop new teaching, learn of research, science and technology ing and evaluation methods for people responsible for training, instructors and educational institutes. Expenditure on research and development in Finland The aim is to ensure that these people, and in turn is among the highest in Europe and promoting links industry and business, can cope with the needs of between educational centres and research institutes the new and rapidly changing information society. and companies is one of the main aims of the ESF in Information technology is therefore, the main Finland. The ESF support for the expansion of Centres emphasis of projects under this measure, of Expertise is important in this regard as it helps to transfer skills and innovation to industry at regional SMEs are particularly targeted. Projects are of a level. broad application, although the new methods that are developed will concentrate on: developing an Advancing the information society and reducing the international perspective; management; entrepre problems caused by long distances and the severe cli neurship; collaboration between firms; improving mate through the well developed telematics systems quality and productivity; marketing; environmental in Finland, is also an area where the ESF is playing a know-how; teamwork; information technology and vital role. Applying new technology helps to open up communications skills. new job opportunities particularly in the area of dis tance working. This is demonstrated by the ESF's sup To assist work organisations develop their human port for the Objective 6 sub-programme 'Distance resources, the ESF is supporting training projects Working- Virtual Proximity' of the ‘Paideia plan’. In which improve companies' and outside trainers Kainuu, East Finland, where employment opportuni competence in SME staff training; for instance, the ties are very limited, distance employment or tele ESF helps SME management identify their training working opportunities are being developed. ESF- sup and development needs. ported training is provided to people already working in this field and to people interested in investing in this new way of working. F. The ESF - an instrument In the Objective 6 regions overall, the operational of regional development objectives aim at increasing the number of SMEs engaged in technological cooperation with other com Employment growth and stability panies or research institutes. The regions focus on dif ferent aspects to boost research; in Central Finland, About 12% of ESF funds assist actions under this the ESF supports actions with an emphasis on the theme. Essentially, the ESF boosts employment, growth improvement of training systems, data networks and and stability by training the workforce, with an empha distance learning, whereas in Lapland the ESF focus is sis on SMEs, developing an international perspective on developing training in communications, manage and information technology. ment and foreign trade. Projects offer both unemployed and employed people Strengthening and improving educa training focusing on: developing an international per tion and training systems spective; quality and efficiency; marketing environmen tal know-how; team work; information technology; coop An innovative approach is taken in regard to strength eration skills; projects for developing the working envi ening education and training systems. This approach is ronment; training of trainers and entrepreneurial training. linked to addressing practical issues in the context of regional development. The ESF is contributing to the Enterprises and self-employed people can benefit from development of Institutes of Higher Education in the ESF co-financed actions such as: the training of person Objective 6 regions in order to improve the level of edu nel related to the introduction of new technology; devel cation in the area and encourage people to stay in the opment training; recruitment by apprenticeship contracts regions. The ESF is also helping to develop the Centres and multinational education and development work of Expertise programme set up by the Finnish opportunities for enterprises. Government in 1994 to support regional specialisation; examples of this are, the Centre of Forestry Expertise A good example of the links between Finnish policy and under the management of the University of Joensuu ESF policies is the fact that actions being co-financed by and the Centre of Tourism Expertise linked to the the ESF include personnel and entrepreneurial training University of Lapland. The Finnish Government aims to in SMEs supporting economic growth and job creation. establish eight such centres by 1998. EUROPEAN SOCIAL FUND 97 SECTION 4 Management and follow-up Implementation structures stand, careful monitoring of ESF projects and simplifi cation of bureaucracy and administration systems. When Finland joined the EU on 1 January 1995, the A large scale information campaign has been under Government decided to organise the administration so taken about the ESF which has helped the Finnish that ESF and national labour policies were integrated. As people understand more about the benefits of EU a result, all ESF assistance in Finland is routed through membership. the Ministry of Labour which is responsible for co-ordi- nating the horizontal Objectives 3 and 4, as well as the At regional level, activities are combined in both the Community Initiatives Adapt and Employment. advisory committees of the labour districts and regional management committees. All projects are The Ministry of the Interior co-ordinates ESF actions reviewed by the Committees before final decisions are under the regional programmes and the Ministries of taken by the competent authorities. Trade and Industry, and Education also have a part in their implementation. Monitoring Committees Evaluation structures have been set up so that Objective 3 and 4 programmes have separate measure/priority Monitoring Committees have been set up for each level evaluators together with programme level evalua Objective. These committees include representatives tors. Co-operation between various Ministries: Labour, of the Commission; the Social Partners; the Ministries; Education, Interior, Trade and Industry, is encouraged. local government and employers' associations. There are three keys to ESF support in Finland: making the eligibility criteria and administration easier to under France SECTION 1 Economic and labour market situation at the time of programming of Community structural funding for the period 1994-1999 Economic situation Between the end of December 1993 and March best remain stable, but would markedly increase if 1994, France submitted to the Commission its plans international growth were to prove to be too weak. setting out the proposed strategies and priorities for Growth will depend mainly on exports but foreign actions to be cofinanced by the ESF for the period markets will be subjected to different trends varying 1994-1999. These plans were drawn up in a climate from one sector to another. Intermediary production of political and economic tension, with a difficult for example such as steel and basic chemicals, will labour market situation. The French economy is not benefit from the globalisation of the market increasingly affected by global trends and subjected because of competition from the new industrialised to the economic cycles common to all western economies which will lead to new job losses. The lib European countries. Although a temporary rise in eralisation of national markets in the European exports had led to some recovery in economic activ Economic Area has re-ignited competition between ity, they dropped again as Europe gradually slid into the large international groups. If they are to keep recession. The economy reached its lowest point in their competitive edge, developed countries like the first quarter of 1993 as France reported a 1 % fall France will have to enhance the added-value of their in GDP and a marked downward trend in demand. production, both in the industrial sector and in ser The economic forecast for 1997 conducted by the vices. This approach will have important conse Commissariat General au Plan (the planning author quences for employment and skill levels. The mas ity) is not very optimistic. The report points out that, tering of new technologies and advances in informa although growth will continue at current levels, it tion and communication technology have therefore will still be insufficient to have any significant posi become key factors in ensuring the competitiveness tive impact on unemployment rates; these will at of enterprises. 8 Labour market of people in long-term unemployment constitutes a major problem: the average duration of unemployment The difficult situation on the labour market has been in 1993 exceeded fourteen months and the unemploy accentuated by a rise in the active population, due to ment rate of young people was very high. (22%). pressure from young people and an increase in the par ticipation rate of women. Despite the great amount of Job creation and the fight against unemployment were public resources which has been invested in social and therefore the main challenges to be addressed by employment policies and the fight against unemploy social and economic policies. Actions were mainly tar ment, the number out of work continues to grow geted at the long-term unemployed and young people. steadily - a trend which has persisted over the past To correct imbalances on the labour market, the twenty years. In June 1993, the unemployment rate French Government took a number of important deci was as high as 11.6 %, compared to an average of 10.6 sions, including, particularly, the Five-year Law of 20 % for the European Union. The number of unemployed December 1993 relating to labour, employment and had in fact risen from 390,000 in 1973 to more than vocational training. This law provides for the promotion 3 million at the end of February 1993, and the number of job integration in enterprises, whether combined of people seeking employment is on a constant upward with training or not. The emphasis is on rationalising, trend. Certain categories, such as low-skilled workers, simplifying and increasing the effectiveness of existing are hit particularly hard (20%). The substantial proportion facilities, rather than creating new schemes. FRANCE SECTION 2 Structural Fund programmes in France A. Allocation by Fund and actions and programmes to combat unemployment. The ESF contributes ECU 4.7 billion which amounts to Objective almost 35 % of the total allocation. In addition, some ECU 1581 million are allocated Because of its socio-economic situation, France qualifies through Community Initiatives, ECU 593 million of for Structural Fund assistance under horizontal Objectives which is contributed by the ESF. 3 and 4 over its entire territory and, in the case of certain regions, under regional Objectives 1, 2 and 5b. The ESF contribution is to be seen with national funding under employment and vocational training This means that all of the Structural Funds - ERDF, policy which amounted to about ECU 4.9 billion in EAGGF, ESF and FIFG apply in France. The basic 1995, and is increasing annually. About half of Structural Fund allocation to France for the period this (approximately ECU 2.3 billion) goes towards 1994-99 is ECU 13.5 billion to cofinance development promoting employment. BREAKDOWN OF ASSISTANCE BY OBJECTIVE AND SOURCE OF FUNDING 1994-1999 ECU million - prices valid at time of Decisions r Total Structural Funds ESF ERDF EAGGF FIFG j Objective 1 2190 525.5 1194.9 431.4 38.2 Objective 2 3948 665 3283 1994 - 1996 1763 310 1453 1997 - 1999 2185 355 1830 Objective 3 2562.4 2562.4 Objective 4 653.4 653.4 Objective 5a 1935.3 Objective 5a Agric. 1745.5 1745.5 Objective 5a Fish 189.8 189.8 Objective 5b 2237.9 292. 938.3 1007.1 Total 13527 4698.8 5416.2 3184 228 I Community Initiatives Employment 191 190.5 0.6 Adapt 278 255 23 Others 1112.4 148.2 779.1 164 20.8 Total 1581.4 593.7 802.7 164 20.8 General Total 15108 5292.5 6218.9 3348 248.8 BREAKDOWN OF ALLOCATION BY FUND (excluding Community Initiatives) EAGGF 23.5% 1.5% ERDF______ESF 40% 35% EUROPEAN SOCIAL FUND 101 FRANCE 4.9% betv 5a Objective Objective 3 Objective 4 Objective RADW O SRCUA FN ALCTO B OBJECTIVE BY ALLOCATION FUND STRUCTURAL OF BREAKDOWN Objective 3 Objective 4 Objective 14.5% 55% 19% RADW O EF LOAIN Y OBJECTIVE BY ALLOCATION ESF OF BREAKDOWN 14% hs hr sos h pirt acre t Ojcie 1; Objective to accorded priority the shows chart This total French population. They benefit from more than than more from benefit They population. French total to goes allocation Fund Structural total of % 16 some six French regions which include only 4.4 % of the the of % 4.4 only include which regions French six o ec Ojcie n eiig taeis establish strategies, defining in approach opted Objective (SPD) each Commission Document for the Programme and Single the for authorities French The financial plans for actions cofinanced by the the by cofinanced actions for plans financial te S cnrbts o 1 programmes 51 to contributes ESF the - ul peetn te eea srtg ad priorities and strategy simultane general by the defined presenting clearly ously very be could proce strategy simpler and quicker a offered it because only tutrl ud i i dvdd no 4 SPDs 54 into divided is aid Fund Structural dure, but also because the specific objective of each each of objective not specific the chosen, because also was but dure, approach This Funds. Structural ua resources. human ing priorities, and developing programmes and and programmes developing and priorities, ing 1 o te oa alcto fr h dvlpet of development the for allocation total the of 11% with the actions required to implement them. Yet the the Yet them. implement to required actions the with h ecpin f h tre Ps ne Ojcie 5a. Objective under with SPDs three programmes, the of these of exception all the to contributes ESF The two Operational Programmes for the Human Human the for Programmes Operational two ubr f rgams ean important remains programmes of number Community Initiatives, are implemented through through implemented are Initiatives, Community Structural Fund aid is divided between fifty-four SPDs fifty-four between divided is aid Fund Structural OPs for the other Initiatives: the ESF contributes to to contributes ESF the Initiatives: other the for OPs rne oahee h fv Objectives: five the achieve to France ot f hs programmes. these of most hc etbih h pirte t b ipeetd by implemented be to priorities the establish which eore ntaie: mlyet Aat n 70 and Adapt Employment, Initiatives: Resource ♦ three horizontal SPDs under Objective 5a. Objective under SPDs horizontal three 1,♦ (Objectives SPDs Regional forty-nine 4); and 3♦ (Objectives SPDs horizontal two ♦ ad b; and 5b); and 2 Objective 5b Objective betv 5b Objective Objective 2 Objective 1 Objective betv 1 Objective Objective 2 Objective 16.5% 16.5% 16.1% 29% 14% 11% 6 % FRANCE B. Main features of the ESF the creation of activities, raising the quality of training, and adapting training to the requirements of the mar component in the Structural ket. These national guidelines integrate very well with the aims of the ESF under Objective 3 since both Fund programmes approaches are not only perfectly compatible but com plement each other. The national priorities correspond EU-wide Objectives 3 and k - to the eighteen measures of the Operational Programme under the first four priorities of the SPD. involving only the ESF It is also interesting to observe that the SPD reflects the new emphasis in the 1993 Regulations in regard to target groups (people at risk of exclusion for example), and kinds of action (pathways to integra OBJECTIVE 3 tion, improving the quality of training systems, apprenticeships, etc.) Combating long-term unemployment and facilitating the integration into working BREAKDOWN OF ESF FUNDING BY PRIORITY life of young people and of persons OBJECTIVE 3: PRIORITY TO YOUNG PEOPLE exposed to exclusion from the labour Priority 4 market; promoting equality of opportunity 0.7% Priority 5 The SPD relating to Objective 3 covers the period 5 .3 % Priority 3 1994-1999 with an allocation of ECU 2.6 billion, rep 27.9% resenting 54.5 % of total ESF aid. It is focused on the five priorities which correspond to the four strategic Priority 1 aims of the ESF under Objective 3. 27.6% Priority 2 Priority 1 38.5% Facilitating the vocational integration of people at risk of long-term unemployment ECU 705.8 million Priority 2 Facilitating the vocational integration of young people seeking employment: ECU 987.2 million A total of ECU 2.4 billion (ESF allocation excluding Priority 3 Priority 5) is divided between the four priorities and allo Facilitating the integration of people at risk of exclu cated to what France regards as priority target groups. sion from the labour market: ECU 714.6 million The breakdown is divided between actions defined Priority 4 under each priority in conformity with the four national Promoting equal opportunities between men and guidelines, clearly highlights French priorities: women: ECU 17.9 million ♦ measures to facilitate access to employ ment and the acquisition of skills Priority 5 through work experience: 39.7 % Technical assistance and specific target actions: ♦ actions to adapt skill-levels to labour ECU 136.9 million market requirements: 23.5 % ♦ raising the quality of training: 21.4 % These priorities faithfully implement the ‘Five-year ♦ actions to promote new activities: 15.3 % Law on Employment and Vocational Training’ which was approved by the French Government in Autumn 1993, and establishes four main priority areas under national employment policy: access to employment, The SPD for Objective 3 is currently being re-pro- grammed. A substantial part of the allocation which currently goes to Priority 1 (the integration of people at risk of long-term unemployment) will be transferred to Priority 3 (the integration of people at risk of exclusion from the labour market). Key points - Objective 3______ ♦ emphasis on measures with a path way to integration approach, no longer on single and isolated forms of training. ♦ training measures designed for young people, based on a combi nation of theoretical and practical on-the-job training. ♦ specific measures for seriously disadvantaged groups: individu alised pathways to integration in cooperation with local initiatives, enterprises and voluntary organisations. r OBJECTIVE A Facilitating the adaptation of workers to changes in production systems The SPD for Objective 4 was adopted in December region. The old global planning approach is replaced by 1994 for a period of two years (1994- 1996) with an studies which are carried out at national or local level ESF allocation of ECU 299.6 million. The SPD was in response to specific demand, in a spirit of coopera subsequently amended in April 1996, extending its tion with the actors directly concerned (enterprises, duration up to 1999 and increasing the ESF contribu professional representatives, employees, training organ tion to ECU 653.4 million (14 % of the total ESF allo isations, and local bodies). cation to France). With regard to training needs resulting from changes in The issue of changes in production systems was already production systems, the agreements of the National well developed in France and a number of provisions Employment Fund (training and adaptation), between already existed. To anticipate future developments, the the State and enterprises, provide for reconversion and State enters into forecasting study contracts with ski I Is-upgrad i ng based on forecasting future compe organisations representing each professional category. tence requirements. These apply to all enterprises, These are basically agreements, reached at national or whatever their size. Special agreements for the devel regional level, setting up diagnostic and forecasting tools on employment prospects and qualification and opment of training known as EDDF are made by the training needs. Regional Employment and Training State with individual companies or employers' organi Observatories, known as OREF (observatoires regionaux sations. These are binding contracts which establish de I'emploi et de la formation) had been set up in each training targets based on an analysis of skill needs, improving the attitude of enterprises to training and BREAKDOWN OF ESF FUNDING BY encouraging a spirit of advancement among workers. PRIORITY - OBJECTIVE 4 It was on the basis of this experience that the SPD for Priority 3 Objective 4 was drawn-up. This concentration of ESF 5% resources should give an additional fillip to the adap Priority 4 6% tation of workers to changes in production systems and Priority 1 help to increase awareness among enterprises of the 11% need to anticipate and plan for training needs. Priority 2 The main features of the SPD are: 78% ♦ a special focus on certain priority tar gets, specifying to categories of workers, and the type and nature of the actions concerned; ♦ project selection on the basis of an ongoing call for proposals. Some 80 % of these projects are managed at regional level which means that all of the actors concerned (enterprises, employees, public and private bodies) can be mobilised for the planning process. P rio ritie s Key points - Objective l\ The programme has four priorities, each containing ♦ priority to actions helping of low- one measure: skilled workers and SMEs: Priority 1 ♦ workers: with the lowest skill-lev- Anticipation of qualification and skill needs els, whose jobs are at risk of Priority 2 becoming obsolete, or who are mid Development of the training itself way through their working lives ♦ SMEs benefit from specific support Priority 3 such as: preparing submissions, Improving training systems counselling in the organisation of Priority 4 training courses; management Technical assistance training, training in advanced pro duction technology, exports and marketing and logistics. Projects It should be noted that, although an entire priority has may involve several enterprises in been devoted to anticipation, this dimension is also inherent in the other priorities and is an integral part the same employment zone. of each action. All projects submitted must be accom ♦ Objective 4 is largely regionalised: panied by a forecast of future prospects, particularly in 80 % of the funds are allocated at terms of skill and qualification requirements. regional level, with the remainder Similarly, project proposals designed to enhance train managed nationally. ing systems have to be able to demonstrate how they respond to the anticipated needs of enterprises. Regional Objectives - in which the ESF integrates with other Structural Funds Almost half of the population of France (47,5 %) is covered by the Regional Objectives. Only one region, lie de France, qualifies under Objectives 3 and 4 only. All other French regions are eligible for funding, not only under Objectives 3 and 4, but, because of their specific characteristics, under one or other of the Regional Objectives, BREAKDOWN OF ESF FUNDING PER REGION r OBJECTIVE 1 ECU million - 1994 prices Guyana 35 800 Development of the least prosperous Guadeloupe 104 300 regions Martinique 89 000 Reunion 183 000 Six regions qualify under Objective 1 for the period Corsica 31 000 1994-1999. In addition to Corsica and the Overseas Departments (Guadeloupe, Guyana, Reunion, and Douai, Valenciennes and Avesnes 82 400 Martinique), which had already qualified under TOTAL 525 500 Objective 1 for the period 1989-1993, eligibility under this Objective was extended in the current pro gramming period to include, because of their very low GDP, the areas of Valenciennes, Douai and Avesnes in Key points - Objective 1 the Nord/Pas de Calais region ♦ while there are differences Some 16.8 % of French territory comes within between the Regions concerned, Objective 1 which has a population of about 2.46 mil the ESF contribution is focused on lion (4.4 % of the French population). four main lines: Structural Fund aid for Objective 1 totals just over ♦ raising qualification levels, partic ECU 2 billion and is divided between the six Regions ularly for young people (initial concerned in accordance with the financial plans for training) each of the six SPDs adopted on 29 July 1994. ♦ skills-upgrading for workers (con tinuing training) The ESF contributes ECU 525.5 million which is 24 % of total Structural Fund aid to these Regions and about ♦ vocational integration of people 12 % of the total ESF allocation to France. About 78.4 with difficulties % of the ESF contribution is for the Overseas ♦ enhancing employment systems Departments, while 15.7% is allocated to Douai, and training structures Avesnes and Valenciennes and 5.9% to Corsica. PART 2 CHAPTER 8 7 ■ Objective 1 ■ Objective 2 □ Objective 3 □ Objective 4 ■ Objective 5b Somme ;Hanche •; C4|vad<; Basse-Noi ma Seine-et- Finistere } Mame ranee ^Bretagne iprraine^v^ llle-et-VilaWF Essonne Mayenne SJl^urthe-et-Moselle IrMorbihan •Ha_-.e-L Loir-et- yC Yonne M atne RAtlantique ' Pet-Loire , Ch - Centre P y s de ia Loire Haute-SacW Indre-et-Loire Franche-Comte ? Doubs^J Vienne Portou-Charentes arente-Maritime tfm ousin Auvergne Rhone-Alpes Lozere A rddche Aquitaine A veyron T a m -e t- Garonne Alpes- M antim es Pyrenees-. ivence- MONACO yB»one r Languedoc-^ { A u d e .M A nege i J '-X’, Haute-Co'ie Guadeloupe Martinique Reunion Guyane SURINAM! BRASIL EUROPEAN SOCIAL FUND 107 8 Generally speaking, there is a very clear integration of r OBJECTIVE 2 the Structural Funds in the SPDs as a whole; the con tent of the measures financed by the ESF is consistent with the priorities of the ERDF. The ESF measures are Converting the regions seriously affected not grouped under a single priority but are more often by industrial decline spread across the various priorities of the SPDs so that they can complement and work in synergy with the Some 50 areas throughout 19 of the 22 Regions of ERDF measures. An ESF measure, for example, which metropolitan France have unemployment rates com aims to adapt the ski Il-levels of job-seekers and work bined with levels of decline in industrial employment ers to the requirements of enterprises, and develop which are worse than the EU average; this makes them ways of re-directing them towards employment com eligible under Objective 2. More than 14.620 million plements the corresponding aid from for the develop people, 25% of the French population, are covered by ment of enterprises provided by the ERDF. In the same this Objective. Community Aid to the Objective 2 way, an ESF measure for the training of trainers and Regions totals almost ECU 3.9 billion for the period the development of new training tools combines with 1994-1999. Nineteen regional SPDs were adopted in an ERDF measure for the equipment of training and December 1994 for a period of two years2 : Alsace, apprenticeship centres. This synergy between the Aquitaine, Auvergne, Basse-Normandie, Bourgogne, ERDF and the ESF enhances the quality of training as Bretagne, Centre, Champagne-Ardennes, Franche- a whole, and should ensure that training responds Comte, Haute Normandie, Languedoc Roussillon, more effectively to the needs of enterprises. Lorraine, Midi-Pyrenees, Nord/Pas de Calais, Pays de la Loire, Picardie, Poitou Charente, Provence/Alpes/Cote Although measures are adapted to the specific features d’Azur, and Rhone-Alpes. of each region, the SPDs under Objective 2 are gener ally characterised by a close link to local development. The ESF contributes ECU 665 million, representing about 1.7 % of total Structural Fund aid and 14.1 % of the total ESF contribution. Allocations vary greatly from region to region, according to their different socio-economic situations; the Alsace Region receives Key points - Objective 2____ - from the ESF - about ECU 11,5 million, for example, while Nord/Pas de Calais is allocated ECU 119 million. ♦ adapting the qualification levels of job-seekers and workers to the needs of enterprises in the areas concerned, particularly SMEs; ♦ targeted training closely linked to local development and new activi ties capable of generating employment (environment, tourism, culture); ♦ development of training in RTD; ♦ developing new teaching tools; extending access to training (distance learning, multimedia) 2 New SPDs for the period 1997 - 1999 were adopted in 1997 Human Resources component of Objective 5b Community Initiatives in Sweden The Employment Initiative, with its four strands - The development and structural NOW, HORIZON, INTEGRA and YOUTHSTART - adjustment of rural areas receives an EU contribution of ECU 191 million - almost all of which coming from the ESF - to foster Objective 5b concerns most of the French territory. In best practice in the field of human resources develop fact, apart from the Overseas Departments and ment through innovation, transnational co-operation Corsica, the only other regions not covered by this and local partnership. Objective are Picardie, Nord/Pas de Calais and lie de Under the Adapt Initiative, the Structural Funds allo France. Objective 5b therefore covers 54 % of the cate ECU 278 million - out of which 255 from the ESF French territory and more than 9.8 million people and 23 from ERDF- for the co-financing of innovative (17% of the population). transnational projects targeted at employees at risk of Structural Fund aid allocated to Objective 5b totals unemployment due to industrial and technological some ECU 2.2 billion and is divided between twenty- change. The focus is on SMEs and the structures and four SPDs: methods which can support them and their employees ♦ Eighteen regional programmes, (Alsace, to improve their ability to anticipate and cope with Aquitaine, Auvergne, Basse Normandie, future conditions and needs. Bourgogne, Bretagne, Centre, Champagne- Ardenne, Franche-Comte, Haute In addition, the ESF contributes amounts, totalling Normandie, Languedoc Roussillon, ECU 148.2.million, through the other Community Limousin, Lorraine, Pays-de-la-Loire, Initiatives; Leader, Pesca, SME, Urban, Interreg, Poitou-Charentes, Prove n ce/A I pes/Cote Konver, Rechar, Regis and Resider. d'Azur, and Rhone-Alpes); ♦ Five Inter-regional Programmes group Key points - Objective 5b___ ing together the mountainous regions (Massif Central, Massif des Pyrenees, Massif des Alpes, Massif du Jura and ♦ training closely linked to local Massif des Vosges); development ♦ and one national technical assistance ♦ training linked to diversification programme. and potential new activities (rural tourism) The ESF contributes ECU 292.5 million, representing ♦ aid for the development of 13 % of total Structural Fund aid for this Objective. new SMEs (services) There is a clear integration of the Structural Funds in ♦ importance of complementary mea the SPDs; all of the interventions are multifunded. sures at all stages, ranging from The Funds interact in a common approach in which counselling, support in setting up, the ESF aims at optimising human resources through implemention and evaluation. the following actions: ♦ enhancing training linked to diversifica ♦ efforts to facilitate access to train tion in agricultural production; ing, particularly in isolated and ♦ training linked to the development of disadvantaged areas, by develop new activities, especially in SMEs and, ing and establishing more training and the industrial and services sectors, centres at local level or introduc (tourism, heritage, environment). ing multi-media distance learning. SECTION 3 Programme content and ESF policy aims A. Vocational integration of Measures to facilitate the creation of new people threatened with activities Special actions known under the acronym of long-term unemployment ACCRE (Aides aux Chomeurs Createurs et Repreneurs d'Entreprises) have been set up to help The fight against long-term unemployment plays a the unemployed start or relaunch an enterprise. central role in French employment strategy. More ACCRE aid can cover all sorts of economic activi than 1 million of the 3.2 million people who were ties, whether for employees or self-employment. unemployed in September 1993 came within this category. There is also a growing number of people The assistance of the ESF has enabled ACCRE to in very long-term unemployment (out of work for increase the number of beneficiaries. more than two years). Moreover, long-term unem ployment, which in the past affected mainly Preparing the unemployed for businesss start women and young people, is now increasingly ups by providing suitable training to enable affecting middle-aged men. The French authorities them to acquire the skills that are essential to are addressing these problems, using the support the viability and success of their projects. The of the ESF to boost, enhance and diversify mea ESF cofinances these pathways to training, sures designed to facilitate the vocational integra (introductory sessions, short training courses, tion of these groups. self-diagnosis systems). Measures to enhance the quality of Measures to facilitate access to employ training systems ment and skills acquisition through work experience This aim is achieved in several ways: The aim is to give people work experience in the pub through services which map routes back to employ lic, semi-state and private sectors and, at the same ment for people who have been made redundant time, the opportunity to acquire the skills they for economic reasons and are at risk of long-term require. The ESF contribution is used to finance the unemployment, and through counselling and guid training component. ance.Training leave agreements enable enterprises to support routes back to employment outside the These measures are focused on firm by offering redundant workers a substitute three types of actions: income, the support of an employment service and an opportunity to undergo training. This provision Facilitating access to training and employment, is designed to prevent long-term unemployment through employment-solidarity contracts for priority enabling workers to re-cycle and integrate into new target groups: people on RMI (minimum integration jobs before their contracts expire. The ESF income); people who have been unemployed for finances the training costs. more than a year; the long-term unemployed over the age of fifty, and job-seekers who have been reg Personalised training systems, involving individual istered with the AN PE (employment office) for more skill assessments designed to identify the most than three years. These are part-time or half-time suitable forms of training; creating tools to person work contracts of a limited or unlimited duration in which the remuneration is subsidised by the State. alise and modulate courses or to promote self training. Consultation is carried out with enter The return to employment contract for the reinte prises to bring training into line with market gration of people who have been cut-off from the requirements, particularly at local level; this labour market for a long time. This contract makes involves studying job profiles in new employment provision for training during working hours relevant areas (environment, waste processing, social ser to the job concerned. vices, new technologies); Training schemes to facilitate access to enter The training of instructors and tutors. prises. These are full-tim e vocational training schemes for groups or individuals to enable job As a result of the ESF contribution, the number seekers to upgrade their skills to meet the require of beneficiaries has been increased and the con ments of job vacancies notified to ANPE cept of pathways to training and supports has (Employment Office). been broadened. Refresher and skills training offered. Young people and enterprises in all regions are showing a greater interest in this improved form These are mainly focused on unemployed man of apprenticeship. The ESF focuses most of its agers and consist of general education and basic efforts on increasing the number of apprentice training in technology. Individual help is given to ships available and improving the effectiveness of people wishing to be involved in a social or work the system. project. There are also measures to support sand wich courses and training leading to skilled quali fications in enterprises. The ESF cofinances per Measures to facilitate the creation of new sonalised training workshops (flexible forms of activities training with suitable time-tables and locations) The aim is to provide aid for unemployed young and innovative forms of training or instruction people wishing to set up or participate in an activ organised in regional development projects. ity especially in the crafts sector. Actions are coor dinated by the Crafts Guilds which provide support B. Vocational integration of for introductory services, counselling and informa tion as well as help to potential employers and young people assistance in the drawing up of projects. These local schemes are supplemented by a national pro France has one of the highest youth unemployment gramme, funded by the ESF, for the training of rates in the European Union (22%), affecting about local trainers and project promoters and which one in every five of the young active population (one supports pilot projects and the development of in four for females). Young people who leave the effective tools. educational system without qualifications are those most affected, but unemployment is also beginning Measures to enhance training to hit a growing number of young people with bac To enhance training, the main emphasis has been calaureates or higher qualifications. This is why placed on developing an individualised approach to France attaches so much importance to ESF inter pathways to training for young people. This aid is vention in this area. The measures are aimed at provided in the form of: bridging the gaps between schools and the labour ♦ support for the organisation of courses, market and at developing services which are increas such as putting in place measures to ingly tailored to individual needs, based on working develop individual training (including experience and promoting an enterprise spirit. refresher courses, personalised support and help with job search); Measures to facilitate access to employ ment and skills acquisition through work ♦ adapting training to the requirements of experience new jobs (in the environment, new tech The diversification and updating of apprenticeship nologies) identified by sectoral studies; takes the form of initial sandwich training provided in the framework of work contracts. This form of ♦ supporting the training of trainers and training is designed for young school-leavers to tutors, with an emphasis on sandwich enable them to obtain a recognised vocational qual training and fostering links with enter ification. General training is provided in apprentice prises. ship training centres combined with technical or practical training in enterprises. The duration of the The contribution of the ESF is used to courses varies from one to three years. A number of increase the number of beneficiaries. actions in particular sectors are implemented at The network of local missions is also developing an national level: the employment-apprenticeship pro interesting approach. An out-reach scheme pro gramme in the sports sector; raising the skill levels vides counselling and guidance for young people of apprentices in areas of importance for the devel under the age of 26. Each person is assisted by a opment of enterprises and apprenticeships in the mentor who helps the trainee through the various building and public works sectors. stages of the pathway. The mentor can call on all the opportunities available from the local partner Most apprenticeships, however, are organised at ships, as well as social, health and housing aid. At regional level and developed so that apprenticeship the same time, the mentor establishes the neces and training courses respond more closely to the sary links with enterprises which offer vocational specific needs in each region. There has been a and integration contracts and apprenticeship or substantial increase in this type of training, both in sandwich training. The ESF partly finances the net terms of the number of categories and places work of local missions with an emphasis on those in urban areas working with disadvantaged social Measures to facilitate access to employ groups who need help most. ment and skills acquisition through work experience Measures to adapt skills to the require The local plans for economic integration (PLIE) are ments of the labour market geared to a range of categories such as: adults, The purpose of these measures is to raise the young people, people with disabilities, and people qualification levels of young people and to restore on minimum income (RMI) who are marginalised skill levels in fields such as communications, and at risk of long-term exclusion from the labour robotics, tourism, transport and crafts. The market or who may have acquired a number of actions are specifically designed for young people social and working disabilities. in particular circumstances, such as young offend ers. The measures are complemented by assess The PLIE is managed by local authorities and ment, counselling, and actions to promote social organises individual pathways to employment reintegration and autonomy, without which the combining introductory services, guidance, social training and integration measures would have only assistance, work search, sandwich training, job a limited chance of success, given the difficulties experience and follow-up in employment. This facing these young people. There is provision for type of action uses existing local schemes but full immersion training schemes in enterprises. there is provision also for the setting up of new Each youth is followed by an adult mentor who arrangements where necessary. The ESF cofi continuously monitors the youth's progress. nances PLIEs in 21 French Regions. Another type of action for young people between The integration of young people and adults at risk the ages of sixteen and twenty-six is designed to of exclusion through employment is based on enable them to develop a personalised pathway to employment aids for recruiting enterprises. It training leading to a recognised qualification. works through job subsidies which compensate Counselling is provided to help them define their recruiting enterprises for the extra costs they incur career plans, outlining each stage of implementa because of the low productivity of the trainees ini tion to ensure that they are compatible with the tially and in providing them with the necessary requirements of the labour market. The ESF con social and technical supports. tributes to the part of this sandwich training which, though itself does not yield a qualification, An interesting action in this field has been launched gives access to a recognised apprenticeship or to set up multiservice centres in crisis areas and local qualification. The ESF also supports actions lead districts. The ESF contribution makes it possible to ing to qualifications to promote diversification in increase the number of beneficiaries and to enhance employment for women. the quality of the training provided by actors working in the field of integration through employment. It also supports individualised follow-ups. C. Integration of persons at risk Measures to promote the creation of new of exclusion from the labour activities market The aim is to give people at risk of exclusion, who have no qualifications or have difficulties in inte France has seen a very rapid increase in the phe grating, access to jobs providing help with daily liv nomenon of exclusion in recent years and an aggra ing to people with disabilities. These jobs are man vation of the difficulties for the growing number aged by voluntary organisations and the contribu who find themselves in this situation. In most tion of the ESF is used to extend the geographic cases, it is the long-term unemployed who are areas covered by this type of service and to affected and their difficulties can be aggravated by enhance the value of existing jobs of this nature. age, the lack of basic training, perhaps even illiter acy, a physical or mental disability, drug or alcohol Measures to enhance the quality of training dependency, or the fact they have recently come out of prison. In order to facilitate the progressive The main aim is to improve training structures pro vocational reintegration of these disadvantaged viding introductory services, follow-up and assis groups, France has launched a whole series of tance. This action targets trainers, promoters of actions to support initiatives being undertaken by projects middle management, but also users, such organisations and associations, including enter as: immigrants, refugees, and people on minimum prises. The ESF makes a substantial contribution income (RMI). The ESF contribution is used to to these actions. raise the competence levels of the actors involved PART 2 in the training of trainers and project promoters. Again the availability of ESF funding increases the Measures to adapt the skill levels of disadvantaged number of beneficiaries will be increased, groups to the requirements of the labour market: Refresher courses refresher courses Specific additional services, complementing train Provision is made for training specifically targeted ing schemes, will be made available to women at people with major difficulties, such as immi wishing to return to work after a period of interrup grants, members of minority ethnic groups, prison tion. These include preparatory courses and skills ers and people with disabilities. The aim is to training and counselling to help participants to enable them to acquire the basic knowledge which draw up plans and actions which can broaden their is an essential prerequisite for further training. career options. Actions include pathways to training in prisons to prepare inmates for their release; preparatory train Once again the number of beneficiaries will be ing as well as courses leading to a qualification for increased because of ESF funding. people with disabilities, training in vocational schools, language instruction, and courses for immigrants, particularly in the building sector. E. Anticipation of labour These actions all include guidance. Because of ESF funding, the number of beneficiaries is greater market trends and than it otherwise would have been. adaptation of worker skills to change D. Promotion of equal opportu nities in the labour market Anticipation between men and women The French approach to anticipation is based on a con tractual policy with the social partners and is aimed at As in many other countries, the massive increase in mobilising professional categories and sectors at the number of women on the labour market has led national, regional and local level, as well as individual to a major change in the structure of the active pop enterprises. Actions are designed to anticipate future ulation in France. The activity rate of women skill and qualification needs. between the ages of twenty-five and forty-nine has been growing by one percentage point every year Actions are conducted in various fields: since 1990. In the precarious state of the labour ♦ professional categories: prognostic study market, female unemployment is one of the pre contracts are designed to aid profes dominant features of long-term unemployment. sional categories to take the necessary France has invested less in this specific area measures in anticipation of changes in because it regards equal opportunities as a horizon production and labour systems in a con tal principle which applies to all fields of interven text of economic, technological, social tion. Nevertheless, although France has allocated and organisational change; only a small portion of ESF resources specifically to ♦ these studies are intended to inform this aim, it acknowledges the importance the training employment, and qualification Commission attaches to equal opportunities, by strategies; applying the maximum grant rate of 50% to spe ♦ enterprises: counselling operations, par cific measures for women. A number of actions tar ticularly in the management of human geted at women with particular difficulties have resources, and understanding the con also been developed. sequences of technological change. Facilitating access to training for women SMEs; diagnostic |ooks to counse| SMEs on tech_ Financial aid is provided to cover extra costs linked nological and organisational developments, and to training, such as the care of children and other to enable them to forecast skill needs and train- family members. Costs of transport and housing may ing strategies. also be covered. Preference is given to women living Studies conducted on subjects such as improving alone on low incomes, the unemployed, women with working conditions; the coherence of the industrial one or more children, women on single parent ben- and social strategies of SMEs; forecasting and efit, or women whose partners are in long-term managing future skill requirements. These are unemployment. Training, in these cases covers all aimed at improving working conditions and the sectors of activity and levels of qualification. efficiency of enterprises. 8 France attaches a lot of importance to anticipation. There is also provision for conversion training to set It therefore allocates a considerable part of its up new firms for worker who have been affected by resources to this purpose and is keen to see fore the reduction in supervisory levels. casting play an important role in all measures ♦ actions in favour of engineers and the related to the adaptation of workers to changes in managers and directors of SMEs; ♦ training to help managers and engineers production systems. adapt to the consequences of the grow Developing training for adaptation of workers to ing autonomy of manufacturing units change - special efforts for SMEs and the reduction of supervisory levels; ♦ training aimed at mastering and manag Priority is given to this measure designed to raise ing new automated engineering technol the qualification levels of workers, helping them to ogy which shortens the time-span for keep their existing employment while giving them launching new products; an opportunity to convert to other jobs. ♦ training in marketing, financial analysis, management control, and logistics for The approved measures are targeted at workers the staff of SMEs, including chief exec affected by changes in production systems such as utives. operatives in manufacturing, low skilled workers, personnel in environmental services, technicians, engineers and managers, and executives of SMEs. They encompass a series of coherent actions for F. The ESF - an instrument enterprises adapting to changes in production sys of regional development tems and are designed for workers who wish or need to attain a qualification or convert to a new job. ♦ actions in favour of manufacturing oper Section 2B summarises the ESF actions which inte atives and low-skilled workers; grate with the other Structural Funds in the regional ♦ broadening competences in manufac Objectives 1, 2 and 5b. turing units to include production coor Employment growth and stability dination, maintenance and contrrol through specific training in each new About 16 % of the ESF allocation goes towards actions function; which combine with the other Funds for regional and ♦ raising the technical skill levels of staff: rural development. Each of the region takes into for conversion to automated production account its specific needs and focuses on the sectors or less repetitive working; which play a major role in its social and economic ♦ broadening the skill range of operators to development. make them more polyvalent, enabling Actions focus on them to perform several different function; ♦ training aimed at promoting the creation ♦ actions in favour of technicians and of SMEs and the improvement of techni master craftsmen. cal and managerial skills in companies in order to improve their competitiveness; Since the process of change in production systems ♦ support to training systems through the involves the reduction of the hierarchical structure, training of trainers and the improvement the master craftsmen will be to become team lead of employment services; actions may ers through general as well as high-level training in include training of people working in the technology and management. public sector specifically in health establishments (training of nurses). Strengthening education and training syste m s Provision is made for the development of training sys tems and the training of instructors in each of the Objective 1 SPDs and in most of the Objective 2 SPDs. SECTION 4 Management and follow-up Implementation structures Responsibility at regional level The regional SPDs (Objectives 1, 2, and 5b) and a num Responsibility at national level ber of Community Initiative programmes are run at The State is responsible for the management of the regional level, the prefects of the regions are entrusted Structural Funds in France and organises the relevant with their implementation; they organise the local part functions and division of tasks between the different nerships and supervise the functioning and financial administrations. management of the programmes. This overall responsi bility of the prefects is reflected the role they play in the The Secretariat General of the Inter-ministerial Monitoring Committees. Committee for European Economic Cooperation (SGCI) About 40% of the Objective 3 Programme and 80% of This inter-ministerial body coordinates the French the Objective 4 Programme are implemented at positions and ensures consistency of presentation to regional level. The role of the prefects is equally impor the EU institutions. tant here since they pilot and manage these pro The DATAR grammes in their regions, with the support of the local offices of Department of Employment and Vocational The DATAR (Regional planning authority) comes under Training (DRTPF) which work under their authority. The the authority of the Ministre a I'Amenagement du ESF Mission is responsible for the overall coordination Territoire de la Ville et de Integration (The Ministry for of the programmes. Town Planning and Integration) and is responsible for the overall coordination and implementation of the Each prefect chairs a committee, in which the Structural Funds (particularly under Objectives 1, 2 Commission does not participate, to select projects on and 5b) the basis of studies and reports presented by technical The ESF Mission committees. The European Social Fund is managed at national level Monitoring Committees by the ESF Mission of the Employment Delegation in the Ministry responsible for employment and voca Broadly speaking, the involvement of the social part tional training. ners is greater as compared with the previous pro gramming period and they are now systematically con The ESF Mission maintains direct liaison with the sulted. Nevertheless, this participation in the Commission and is responsible for the overall imple Monitoring Committees is still relatively formal and it mentation of the ESF is very rarely exercised during the negotiation and pro gramming stages. For national programmes under Objectives 3 and 4 Regional Objectives 1, 2 and 5b and the EMPLOYMENT and ADAPT Initiatives, the Mission is responsible for the initiation, piloting, and Each Monitoring Committee is chaired by the prefect of supervision of programmes, as well as all financial the region and co-chaired by the chairman of the regional aspects, control and support; it centralises decisions council (and the General Council of Objective 1). taken by the regional authorities and questions relat The following participate: ing to the organisation of the Monitoring Committees. ♦ representatives from the Commission; ERDF (Objectives 1 and 2), from The Mission plays a less important role in the case of EAGGF (5b), the FIFG (Objective 1) and regional Objectives 1, 2, 5b and the regional the ESF; Initiatives; these programmes are managed by ♦ various central State services (including DATAR. The ESF Mission is, however, responsible for DATAR, the M inistry for Overseas all financial dealings between the Commission and Departments and the Ministry for Labour) France; it is represented in all Monitoring ♦ the Regional Council and General Committees and has general supervision for ESF Council; interventions in all programmes. ♦ consultative bodies (Chamber of Commerce) PART 2 CHAPTER 8 The exact composition of the committees varies from region to region, particularly regarding the participa tion of socio-professional representatives. Objective 3 The National Monitoring Committee, chaired by the Delegue de I'Emploi (employment delegate) meets twice a year. It comprises representatives from the Commission, national administrations, the DRTEFP, Regional Councils, social partners, the Association Nationale des Elus Regionaux(national association or regional deputies), the Association of Mayors, and the coordinating committees of the regional apprenticeship and vocational training programmes. The social partners are represented by the employers of large enterprises and SMEs and confederation of workers. The meetings are prepared by a technical committee comprising national and regional representatives. Objective 4 The National Monitoring Committee is chaired by the Delegue de I'Emploi. It comprises representa tives from the Commission, the Ministry of Employment and Vocational Training, the Ministry for Industry, the Ministry for Post and Telecommunications,the regional authorities, the social partners, local associations, elected repre sentatives and social organisations. CHAPTER 9 GERMANY Germany SECTION 1 Economic and labour market situation at the time of programming of Community structural funding for the period 1994-1999 Due to the significantly divergent economic and unemployment had decreased. The number of people facing particular problems in relation to the labour labour market situations between the former West market had also grown. By 1993, around 594,000 people had been unemployed for a year or more, and German Lander and the new German Lander their around 323,000 young people were unemployed. respective situations are treated separately. N e w Lander Former West German Lander Five new Lander and East Berlin make up what was once East Germany: Mecklenburg-Vorpommern, The former West German Lander are: Schleswig- Brandenburg, Sachsen-Anhalt, Sachsen and Holstein, Hamburg, Bremen, Niedersachsen, Thuringen. At the time of Structural Fund program Nordrhein-Westfalen, Hessen, Rheinland-Pfalz, ming these regions were undergoing serious social and Saarland, Bayern, Baden-Wutemberg and West Berlin. economic changes as a result of their transition to a market economy. Between 1993 and 1994 the general economic situa tion was marked by deep recession. The economic Real growth in 1993 was about 7%, but from a base downturn had a significant impact on unemployment nearly two-thirds below that of the former Federal with 2.5 million people registered out of work in 1993. Republic. Progress at this stage had been insufficient The number of job vacancies had dropped by 6% and to trigger a self-supporting growth process in the new in comparison with 1992 the average number of work Lander. ers on short-time - 766,900 had almost tripled. Since 1990, one in three jobs had disappeared, All Lander registered an increase in average unemploy resulting in more than 16% of the workforce looking ment in 1993, though not all to the same extent. The for work. Women were disproportiontately affected. biggest increases were in Baden-Wutemberg (+47%), The number of women in employment fell from over Bayern (+33%) and Rheinland-Pfalz (+32%). Hessen 4.5 million in 1991 to 3 million in 1992 and by 1994 (+29%), Saarland (+24%) and Niedersachsen (+23%) over 60% of all the unemployed in the former GDR were near the average increase (+26%). Lower increases were women. Youth unemployment was also a prob were registered in Nordrhein-Westfalen (+21%), lem, with one in every four registered as unemployed Bremen and Schleswig-Holstein (+16%), in West Berlin after completing vocational training in 1993. (+11%) and Hamburg (+10%). GDP had fallen by 1.9% in 1993 compared with the previous year. The new Lander and Berlin were characterised by a grossly oversized industrial sector, a total lack of a ser The worsening situation on the labour market was also vice sector and little or no SMEs. Productivity was one - attributable to a significant increase in the numbers of third of that of the former Federal Republic, with out job-seekers, without any increase in the number of available jobs; many of those available for work were dated plants and production systems that were obso discouraged by the increasing difficulty of finding a lete from an environmental point of view. In the pro job and temporarily withdrew from the labour market. duction sector, there was a decline in capital goods and by 1992, manufacturing accounted for only half of Another factor was the changed emphasis in labour the net production sector output against 85% in the market policy. As a result of the 1992 Tenth Lander of the Federal Republic. The lack of competi Amendment to the Employment Promotion Act tiveness was due to many factors including wage costs (Arbeitsforderungsgestz-AFG), and of budgetary con that were 46% above those in the Federal Republic, straints, the contribution to instruments for reducing poor product quality and deficiencies in management EUROPEAN SOCIAL FUND 117 9 and marketing. Many firms had lost their eastern mar As part of its strategy to implement the recommenda kets and found it difficult to break into new outlets due tions of the White Paper on Growth, Competitiveness to lack of investment. Agricultural co-operatives and and Employment, the Federal Government adopted, in state farms were transformed into holdings of different 1994, a package of measures to promote vocational legal forms, but due to a lack of competitiveness, 75% training. These included the promotion of foreign-lan- of those employed in this sector had lost their jobs. guage learning, opportunities to gain work experience abroad, a general improvement of the training on offer German policy on growth and employment is based on and the provision of continuing training throughout the principle that measures taken in the fields of eco working life. Consolidating the vocational training sys nomic, financial, monetary, labour market and social tem is seen as a way of improving Germany's competi policy, must be integrated if they are to have maximum tiveness in a global economy effect. They must also be accompanied by wages and working-time policy negotiated between management In Germany, solid basic training for young people, and labour. through combined work/training schemes in conjunc tion with life-long learning in the work place, is also Central to labour market policy in Germany are the a top priority. activities of the Federal Labour Office based on the AFG (the Employment Promotion Act). These generally To attract more young people into the combined take the form of long-term measures rather than one- work/training system and create more opportunities off programmes of limited duration. for groups at risk in relation to the labour market, the Federal Government adopted the following measures: In this context the aims of national labour market ♦ increased vocational training options policy are to: for all; ♦ prevent or alleviate unemployment, ♦ a call to industry to create more promo under-employment or labour shortages; tion opportunities for skilled workers; ♦ improve job mobility; ♦ more flexible training capable of adapt ♦ assist workers to adjust to technological ing quickly to the changing needs of and structural change; industry; ♦ promote the vocational integration of per ♦ more effective careers advice for young sons with physical or mental disabilities; people by schools, careers advisory bod ♦ counter sex discrimination in training ies and professional associations; and and job opportunities; ♦ vocational training geared more fully to ♦ contribute to the vocational integration the needs of the individual and especially of older and disadvantaged workers; and of adult learners. ♦ improve employment structures. GERMANY SECTION 2 Structural Fund programmes in Germany A. Allocation by Fund and Objective Germany qualifies for Structural Fund assistance The German authorities have chosen to programme under the EU-wide Objectives 3 and 4 and under the ESF co-financed measures by Community Support regional Objectives 1, 2 and 5. In total nearly ECU 20 Framework documents (CSFs) and Operational billion will be provided by all Structural Funds over the Programmes (OPs) in respect of Objectives 1, 2, 3 and period 1994-1999. The ESF's contribution is around 5b, and a Single Programming Document (SPD) in ECU 6.7 billion. In addition Germany receives funding respect of Objective 4. from the Community Initiatives of ECU 2074 million out of which almost ECU 666 million is from the ESF. BREAKDOWN OF ASSISTANCE BY OBJECTIVE AND SOURCE OF FUNDING 1994-1999 ECU million - prices valid at time to Decisions Total Structural Funds ESF ERDF EAGGF FIFG Objective 1 13641 4092 6820 2645 84 Objective 2 1634 480 1154 1994 - 1996 733 219 514 1997 - 1999 901 261 640 Objective 3 1682 1682 Objective 4 260 260 Objective 5a Agric. 1070 1070 Objective 5a Fish 75 75 Objective 5b 1227 231 474 522 Total 19589 6745 8448 4237 159 Community Initiatives Employment 156.8 156.8 Adapt 256.7 256.7 Others 1660.5 252.4 1264.4 142 3.6 Total 2074 665.9 1264.4 142 3.6 General Total 21663 7410.9 9710.4 4379 162.6 BREAKDOWN OF ALLOCATION BY FUND (excluding Comm unity Initia tives) EUROPEAN SOCIAL FUND 119 BREAKDOWN OF STRUCTURAL FUND ALLOCATION BY OBJECTIVE BREAKDOWN OF ESF ALLOCATION BY OBJECTIVE B. Main features of the ESF component in the Structural P rio ritie s Fund programmes The ESF strategy for Objective 3 focuses on four priorities: Priority 1 EU-wide Objectives 3 and 4 - The vocational integration of the long-term unemployed. ECU 952 million involving only the ESF Priority 2 The vocational integration of young people. ECU 442 million r OBJECTIVE 3 Priority 3 The vocational integration of people threatened with exclusion from the labour market. Combating long-term unemployment and ECU 78 million facilitating the integration into working Priority 4 : life of young people and persons exposed Promoting equal opportunities between men and women. to exclusion from the labour market; pro ECU 160 million moting equality of opportunity Priority 5 About ECU 1.7 billion goes towards Objective 3 (25% Provision is also made for technical assistance and of the total ESF allocation to Germany). pilot projects amounting to around. ECU 50 million. BREAKDOWN OF ESF FUNDING BY PRIORITY - OBJECTIVE 3 Priority 3 Priority 4 4.6% 3.5% Priority 5 2.9% Priority 1 56.7% The ESF priorities are implemented through a CSF and Actions assisted under the Objective 3 CSF are based by means of twelve OPs, one for Federal programmes on four principles: and one for each of the eleven Lander of the former ♦ measures should meet local or regional West Germany, including West Berlin. The Federal needs in qualifications; Programme will receive about ECU 887.5 million from ♦ training projects should provide close the ESF and the regional programmes a total of about links with employers; ECU 794.5 million. ♦ measures should provide the highest qualifications and where possible include certification; and The allocations for the areas covered by ♦ training providers should co-operate the Objective 3 CSF are: amongst each other to make the best use of knowledge and resources. ESF ALLOCATION ECU million % 1 Federal programme 887 52.7 ECU 160 million (10% of all ESF resources under Schleswig-Holstein 34 2 Objective 3 for 1994-1999) is allocated to pro Hamburg 39 2.3 grammes specifically for women. Niedersachsen 121 7.2 Bremen 39 2.3 Beneficiaries Nordrhein-Westfalen 281 16.6 Hessen 50 2.9 It is estimated that 400,000 people will receive assis tance under this Objective throughout the duration of Rheinland-Pfalz 29 1.8 the CSF. Baden-Wurttemberg 52 3.2 Bayern 56 3.5 Saarland 41 2.5 West Berlin 51 3 TOTAL 1682 100 1 Key points - Objective 3____ ♦ ECU 1.7 billion, 23.4% of ESF As it is ESF policy to improve the scope and flexibility allocations to Germany and 8 % of of instruments available at both national and Lander level, the ESF funds used at national level concentrate total Structural Funds on measures which go beyond the remit of national ♦ special focus on women and equal market policy set out in the AFG (the Employment opportunities Promotion Act). These measures are called AFG Plus ♦ links with regional needs and and include, work experience abroad, improvement of employers, co-operation among social skills and general educational welfare measures. trainers and a high level of qualifi At Lander level the idea is to concentrate efforts on cation and certification encouraged specific measures. GERMANY PART 2 CHAPTER 9 bu 38 o te S alctos o emn goes Germany to allocations ESF the of % 3.8 About towards Objective 4, amounting to approximately approximately to amounting 4, Objective towards h EF taey o Ojcie fcss n he pri three on focuses 4 Objective for strategy ESF The niiain f aor akt rns n vocational and trends market labour of Anticipation orities: sitne o te mrvmn ad eeomn of development and improvement the for Assistance roiy 1 Priority selling; and. ECU 147 million ECU and. 147 selling; Priority 2 Priority million requirements. ECU 11,5 s ritie rio P 1994-1999. period the over million 260 ECU Priority 3 Priority prpit tann sses frhr riig infra knowledgeandstructure training transfer. million ECU 14 further systems, training appropriate kls custo, eriig giac ad coun and guidance retraining, acquisition, Skills BETV 4 OBJECTIVE RADW O EF UDN B PIRT - PRIORITY BY FUNDING ESF OF BREAKDOWN hne i pouto systems production in changes Facilitating the adaptation of workers to workers of adaptation the Facilitating Priority 3 Priority 7.9% . EF LOAINEU million ECU ALLOCATION ESF 1 hs o te lvn adr f h fre West former the of Lander eleven the of ESF those of SPD, nature an regional the through on focusing measures implemented with is programming The upr. h SD oes h Fdrl rgam and programme Federal the covers SPD The support. Germany. eredSPDtheby asfollows: hs priiain ae n ihr riig ore is courses training higher in rate participation whose are reserved for training measures for target groups groups target for measures Objective training this for under reserved resources ESF are all of 45% Some eo average. below TheESF betweenisdivided allocation theregions cov clsi-osen72.7 7 Schleswig-Holstein et eln1 5 13 Berlin West OA 260 5 TOTAL Saarland eea porme9 38 98 programme Federal rmn1 3.9 3.8 10 10 Bremen Hamburg esn93.5 2 9 26 6 67 Rheinland-Pfalz Hessen Nordrhein-Westfalen Niedersachsen aen1 4.6 12 Bayern Baden-Wurttemberg 76.5 17 6 100 ! % 2 2 Certain criteria are applicable to Objective 4 actions under the SPD. Institutional arrangements should ensure that the learning content of training courses is applicable to working arrangements in more than one firm and steps must be taken to select projects which offer equal opportunities for women. To achieve maximum transparency applicants are asked for information on certain aspects such as the project objectives in terms of quality and quantity, arrange ments for monitoring progress and information on inno vative aspects of the measures. Where an application concerns further training, the company is required to provide information on aspects such as the arrange ments to improve the vocational mobility of workers and the transferability of results to other companies. Provision is made for technical assistance amounting to around ECU 6 million. Key points - Objective A ♦ ECU 260 million or 3.8% of ESF aid to Germany ♦ focus on anticipation, skills acquisition and improvement of training systems ♦ special emphasis on further train ing for groups where involvement in training is less than average CHAPTER 9 PART CHAPTER 9 Regional Objectives - in which the ESF integrates with other Structural Funds P rio ritie s ► The ESF contributes to the following six priority areas set out in the CSF: Development of the least prosperous Priority 1 regions Productive investment and complementary infrastructure ECU 55 million; Priority 2 About 60% of the ESF allocation to Germany goes SMEs ECU 253 million; towards Objective 1 priorities to support the new Lander. This amounts to ECU 4 billion over the period Priority 3 1994-1999. Research and technology and promotion of innovation ECU 128 million; Objective 1 is implemented through a CSF and eigh teen OPs. The CSF takes an integrated approach with Priority 4 three OPs for each of the new Lander relating to eco Environmental improvement ECU 300 million; nomic development (mainly funded by ERDF, with additional measures by the ESF and the EAGGF), Priority 5 development of the labour market (mainly funded by Human resources and promotion of employment the ESF, with additional measures by the ERDF and ECU 3064 million; EAGGF) and the development of rural areas (mainly funded by EAGGF, with additional measures by the Priority 6 Agriculture, rural development and fisheries ESF and ERDF). In Eastern Berlin, measures by all three Funds are integrated into a single OP. Two other ECU 107 million. programmes, one funded by the ESF and the other by the FIFG, are being implemented horizontally in all BREAKDOWN OF ESF FUNDING BY PRIORITY - OBJECTIVE 1 Lander. The labour market in the Objective 1 regions is characterised by high unemployment (6.2 million Priority 1 people in 1993) and, between 1991 and 1994, some 80% of the labour force participated in labour market Priority 2 measures. 6.2% Priority 6 The ESF allocations for the regions covered by the 2.6% Objective 1 CSF are as follows: Priority 4 ! ESF ALLOCATION ECU million % 1 7.7% Federal programme 1077 26.3 Mecklenburg-Vorpommern 383 9.4 Brandenburg 496 12.1 Sachsen-Anhalt 550 13.5 About ECU 184 million is provided for technical Thuringen 490 12 assistance. Sachsen 875 21.3 East Berlin 221 5.4 ESF resources concentrate on reinforcing and extend ing measures that are also supported by the Federal TOTAL 4092 100 authorities. The central focus is on integrating workers into the new market economy. The development of human resources and the creation of jobs are the key requirements for the reconstruction of these regions. Training is specifically targeted towards new technol ogy and production processes, as well as management and marketing skills. This is particularly relevant for those smaller companies finding it difficult to cope with the rapid economic changes which have taken place since reunification. EUROPEAN SOCIAL FUND 125 9 There is also a particular focus on: research and devel opment personnel; continuing training in SMEs; self- OBJECTIVE 2 employment; young people and equal opportunities. About 8.2% of ESF funds are used for measures in favour of women, mostly the provision of childcare. Converting the regions seriously affected Three quarters (ECU 3.1 billion), of the financial assis by industrial decline tance from the ESF goes to the priority concerned with the development of human resources and employment promotion. Around 7% of ESF allocations to Germany go towards The priority is divided into three sub-priorities with the Objective 2 amounting to ECU 480 million over the following breakdown: period 1994-1999. Sub-priority 1 Actions under Objective 2 are implemented through a Increasing the competitiveness of the economy and CSF and nine multifunded OPs, one for West Berlin preventing unemployment; and the rest for the Lander set out in the table below. Sub-priority 2 The breakdown of ESF allocations between the areas the integration and employment of groups at risk in the covered by Objective 2 are as follows: labour market; ESF ALLOCATION % Sub-priority 3 Innovative measures, pilot and demonstration projects Schleswig- Holstein 2.4 for the European labour market. Niedersachsen 6 Bremen 7.5 Nordrhein-Westfalen 44.2 BREAKDOWN ESF FUNDING Hessen 1.4 BY SUB-PRIORITY - OBJECTIVE 1 Rheinland-Pfalz 3.7 Sub-priority 3 Bayern 2.4 Saarland 6.7 West Berlin 25.7 TOTAL 100 P rio ritie s The priorities under Objective 2 are as follows: ♦ to improve the economic potential of regions suffering from industrial decline and accelerate structural change; Key points - Objective 1_____ ♦ to increase employment opportunities for workers; and ♦ ESF allocation ECU 4 billion or ♦ increase productivity and promote RTD. 60 % of ESF aid to Germany ♦ 78.4% of ESF resources to human resources and promotion of employment ♦ focus on training in new technology, production process, management ♦ continuing training in SMEs highlighted ♦ 8.2% of funds used to help women E l j l L H A P T E R 9 GERMANY Actions aided by the ESF concentrate on: training in Key points - Objective 2 new productive or commercial techniques; vocational training and careers guidance and advice for both ♦ ECU 480 million or 7 % of ESF aid employed and unemployed people. to Germany ♦ aims to accelerate change, create employment opportunities, increase productivity and promote RTD ♦ focus on vocational training especially in new skills, counselling and guidance OBJECTIVE 5b The development and structural adjustment of rural areas About 3.4 % (ECU 231 million) of total ESF funding Key points - Objective 5b to Germany goes to Objective 5b regions over the period 1994-1999. ♦ ECU 231 million or 3.4 % of ESF aid to Germany Actions under Objective 5b are implemented through ♦ aims to encourage economic a CSF with nine multifund OPs, one for each of the diversification of rural areas Land set out in the table below. ♦ training and guidance actions for The ESF allocation is divided between the OPs as new areas such as tourism follows: ESF ALLOCATION ECU million % 1 Schleswig-Holstein 17 7.5 Human resources component of the Niedersachsen 49 21.3 Community Initiatives Nordrhein-Westfalen 5 2 Hessen 6 2.8 The four strands of the Employment Initiative - NOW, Rheinland-Pfalz 22 9.6 HORIZON, INTEGRA and YOUTHSTART - provide an allocation of ECU 156.8 million over 1994-1999 to Baden-Wurttemberg 5 2.1 foster best practice in the field of human resources Bayern 118 51 development through innovation, local partnership and Saarland 9 3.7 transnational co-operation. TOTAL 231 ioo ! Under the Adapt Initiative, the ESF allocates ECU 256.7 million for the co-financing of innovative transnational projects for employees at risk of unem In these rural areas the ESF co-finances measures to ployment due to industrial and technological change.. encourage economic diversification wich involves developing alternative activities, such as tourism and There is a particular emphasis in Germany on reducing the environment, tailored to meet the various needs of female unemployment especially in the east of the the rural population. This is achieved through training, country; developing alternative forms of training for advice and guidance actions. There is also provision young people and anticipating changes in skill needs for farmers' wives to market their farm produce or set as well as improving workers' core competences. up tourist attractions. In addition, the ESF contributes amounts totalling ECU 252.4 million through nine other Community Initiatives: Interreg, Konver, Leader , Pesca, Rechar, Resider, Retex, SME and Urban. EUROPEAN SOCIAL FUND 127 Programme content and ESF policy aims A. Vocational integration of B. Vocational integration of people threatened with young people long-term unemployment The ESF supports improved access to vocational training, or employment for young people who are In the former West German Lander, a down-turn in not catered for by the general training system. the economy resulting from an EU-wide recession Intensive counselling and motivation is provided to had led to an increase in the unemployment rate to give young people the start they need in their work 8.5% by 1993 and nearly 600,000 people were ing lives. Training or further training for a recog out of work for a year or more. nised occupation may also be provided; including practical training courses in other countries. The unemployment rate in the former East German Special courses which combine working and learn Lander, was almost double this level reaching 16% ing are used, where necessary, to prepare young in 1993. In addition to the 1.15 million people people for normal training. classified as unemployed, another 1.6 million were without regular work. Moreover due to a lack of For those facing difficulties in finding a job, even competitiveness, one in every three jobs had been after having obtained a vocational training qualifi lost in the period between 1989 and 1993. cation, grants are available to encourage their inte gration and where the young person has to travel to The ESF in Germany seeks to tackle these prob find employment, mobility allowances are available lems by assisting those experiencing long-term to pay for transport costs. unemployment, including specific target groups who become unemployed due to specific problems In order to improve the opportunities for disadvan such as, health, mental illness, learning difficul taged young people in the vocational training sys ties, drug addiction and imprisonment. Other tem, a regional network of training tutors provides groups experiencing long-term unemployment such a support structure to enable more companies to as migrant workers, ethnic German immigrants offer training places. Special emphasis is placed from Eastern Europe and foreigners also benefit on counselling services for companies in order to from ESF measures. Measures are geared towards encourage them to accept and promote the training improving the competitiveness of these target of girls and young women. Company training and groups in the labour market, thereby increasing employment policies which take into account their chances of reintegration. women's needs and career plans are also supported in this context. Other measures include assistance The ESF backs a range of specific measures which in the field of childcare, instructor training, include general vocational training, development of increasing the number of training places and social skills, adult literacy programmes and aid for developing cooperation between employers and business start-ups. In certain Lander, the most training establishments. important purpose of ESF money is to implement projects which would not be possible with national schemes alone. Special counselling for those with particularly diffi cult problems is provided to promote personal and vocational stability. This sometimes includes help with finding work and accommodation and coun selling often continues after the end of the training period. Training in foreign languages and practical training courses in other countries is provided, par ticularly for those in border areas. In addition, recruitment incentives are made available for employers to compensate them for the initial reduced productivity of the trainees. GERMANY C. Integration of persons at D. Promotion of equal risk of exclusion from the opportunities in the labour labour market market between men and In order to facilitate the integration of people women threatened with exclusion from the labour market, In Germany, special emphasis is given to the ESF the ESF supports a number of measures which vary aided programmes for equal opportunities for men according to the needs of the relevant Land. ESF and women in the labour market, especially for assistance includes vocational guidance for prison persons returning to work after a long absence and ers, in particular women prisoners. The measures older women. The aim is to extend the range of are designed to facilitate the vocational integration occupations accessible to women and to give of the prisoners after they have finished their sen greater recognition to their family responsibilities tences. There is also assistance for refugees to when they return to work. Improved opportunities help them find work through training and prepara of promotion in all areas is supported together with tion for employment. special assistance to help women and men com bine their family and job responsibilities more suc Innovative approaches to labour market policy are cessfully. also encouraged and exchanges of experiences through project partnerships with similar project Women receive assistance to make the best use of organisers within the EU are supported. In certain the benefits of the single market and technological cases under this priority heading, the Lander sup developments. The ESF finances the organisation port long-term unemployed people on social secu of a wide range of training courses and information rity, with a special emphasis on training single and awareness campaigns which are carried out at mothers who have particular difficulties due to the a local level. Training often takes account of the responsibilities of childcare. In order to render the fact that mothers have restricted time and of the vocational training measures as practical as possi need for measures to increase self-confidence. ble, participants are placed in a job for at least a Other measures include: recruitment or training year and trained in different working situations. subsidies; business start-up assistance; foreign Particular emphasis is placed on the adoption of language training and practical job experience in sound working attitudes. Throughout the duration other EU Member States. Where necessary contri of this type of measure, participants receive social butions to the cost of looking after dependants are guidance and care to increase their motivation and provided. interpersonal skills. Assistance is also provided for the homeless, with ESF aid going towards the cost of providing social workers for those in need during periods of training or employment. Training and employment for those unable to work due to health problems or psycho logical and mental illness is also available. People with disabilities receive vocational training and retraining tailored to their individual needs and future job requirements. By providing for the voca tional flexibility and mobility of persons with dis abilities, the ESF allows beneficiaries to adapt to changes in the employment system. EUROPEAN SOCIAL FUND 129 E. Anticipation of labour mar are an essential complement to training. A system atic and coherent approach is taken to make the ket trends and adaptation of best use of existing potential for the acquisition and development of the necessary skills making worker skills to change training a more dynamic process. The promotion of training centres for improving the skills of workers The ESF actions financed under Objective 4 in in SMEs, particularly in the sectors outlined above, Germany aim to help workers adapt to changes in is also catered for. production systems when their skills and qualifica tions are in danger of becoming obsolete. ESF Assistance is also available for pilot projects and assistance is targeted at skills training not normally model schemes where SMEs cooperate with recog covered by company training schemes, as well as nised training institutes and research establish various innovative approaches to human resources ments to develop, implement and evaluate innova development. The costs are shared between the tive concepts for further vocational training and company, national or regional authorities and the retraining. ESF. Improving the skills of particular target groups There are three main priorities and action areas as follows: The upgrading of skills is a particular priority for: 1. Anticipation of labour market trends and voca ♦ unskilled and semi-skilled workers; tional qualification requirements ♦ workers whose skills are not being used to capacity; The target groups for this priority are specialist ♦ workers on short-time; and organisations such as research institutes, consul ♦ management and staff of SMEs. tancies and associations involved in the provision of in-company training or general training. Detailed The aim is to offer training in recognised occupa analysis and forecasts of the shortcomings of the tions and through training to allow access to more vocational training system are carried out, in the senior job opportunities. Short-time workers are light of the medium-term skills requirements of the offered the opportunity to receive training in new labour market. These analyses help to promote skills either inside or outside the company. Further national labour market, employment and training training for employees of SMEs is also provided, policy. with an emphasis on management. In addition, training for new technologies and working proce-' In certai.n cases the Economic and social partners, dures is provided. The training requirements of higher training establishments, vocational training employees whose jobs are under threat are also authorities and SMEs are involved in anticipating taken into account. qualification and training requirements. Comprehensive surveys also assess the effects of 3. Assistance for the improvement and develop introducing new technologies and the implications ment of appropriate training systems, further train this may have for skills requirements. ing infrastructures and knowledge-transfer 2. Skills-acquisition, retraining, guidance and The further training needs of SMEs are addressed counselling by promoting cooperative structures between SMEs and training establishments. A network is being There are two actions under this priority: set- up to allow for exchanges of experience in the area of training activities. This will improve the Labour-force skilling through innovative measures transfer of best practice and optimise the prepara Under this heading the focus is on: new technolo tion of training assistance. The national authorities gies; new work processes; improving competitive have a special role to play here and they will con ness; management skills; environmental tech tinue to publicise project results at a national level niques and services. Guidance, counselling, infor with a view to making the experience of regional mation and awareness-raising measures for firms schemes available to all participating Lander . F. The ESF - an instrument of ESF-supported measures under this policy aim also focus on improving the: regional development ♦ access to initial training and the transi tion to the labour market for young peo Boosting employment growth and ple through apprenticeships, advice and s ta b ility guidance; ♦ employment and training opportunities A large proportion of ESF resources (43%) is directed for unemployed people who are difficult towards this policy aim over the programming period to place on the labour market (such as, amounting to the highest of any EU Member State . the long-term unemployed or those threatened with exclusion), through a The ESF helps to boost employment growth and sta comprehensive package of measures bility in Germany in a number of ways. including: guidance and counselling; These include measures to support SMEs such as: vocational training; retraining; further ♦ training in business techniques; training and training combined with ♦ organisation and production processes work; and as well as product quality and design; ♦ vocational qualifications and job oppor ♦ training for self-employed people or for tunities for women (especially those workers in small companies, particularly over 45 and single parents) through apprenticeships for young people; and counselling and training programmes. ♦ support to the personnel of SMEs during the start-up phase through measures to In addition, the ESF boosts employment growth and improve qualifications and to assist the stability in specific areas such as rural development, development of self-employment. agriculture and fisheries. The ESF concentrates on supporting training projects to improve qualifications Training courses in structures financed by the ERDF and integration into the labour market. Training is are supported by the ESF. Moreover the ESF co often provided in new areas being developed to diver finances measures that provide retraining, further sify the regional economy. training, recruitment aids and assistance for self- employment. Simultaneously, other measures help Boosting human potential in the people adapt their qualifications to the needs of the fields of research, science and labour market, industrial change and changes in pro te c h n o lo g y duction systems. Under the CSF for Objective 1, the ESF supports mea sures which promote research and technological devel opment as well as innovation. Measures focus on investments in non-academic, production-related establishments, on supporting SMEs to recruit innova tion advisers, and obtaining technology and marketing advice and on promoting the skills of managers. Support also extends to the training and further train ing of those involved in RTD activities. The quantity and quality of human resources in RTD establishments will be increased , and this in turn will assist the devel opment of production processes. SECTION 4 Management and follow-up Implementation structures Monitoring committees The Federal Government and its labour market agency, The national monitoring committees which have been the Bundesanstalt fur Arbeit, have direct responsibility set-up for each Objective, are made up of representa for Federal programmes under Objectives 1,3 and 4 tives from the Federal Government (Employment only. They also have a co-ordinating function for all Ministry), the Lander, the Economic and social part programmes which is, however, less prominent in the ners and the Commission. case of Objectives 2 and 5b. There are regional sub-committees, involving the Implementation structures vary from one Lander to Social and Economic Partners, for the Objective 1 and another, although the financial regulations governing most of the Objective 2 programmes. implementation are broadly similar. The national monitoring committees for Objectives 3 Under Objective 3, there is cooperation between and 4 are responsible for all federal and regional pro regional branches of the Federal Labour Office and grammes and all Lander (outside Objective 2) are rep Lander Ministries of Labour with a view to ensuring resented. The social partners also participate in the that all resources invested in labour market policy work of these committees. meet regional needs. Financial assistance from the ESF allocated to the Lander under Objective 1, is directly managed by them in the framework of their labour market and training policies. The ESF allocations to the Federal authorities are mainly used by the regional offices of the Federal Agency of Labour to finance actions additional to mea sures in the normal federal programmes. Non-govern mental organisations (especially the churches and workers' movements) play a significant role in the design and implementation of programmes. 1 Source: The impact of Structural Policies on Economic and Social cohesion in the Union 89-99a GREECE Greece SECTION 1 Economic and labour market situation at the time of programming of Community structural funding 1994-1999 Economic situation In 1995, public investment in education in Greece was the lowest in the EU and expenditure on active employment policies was similarly inadequate; this led Despite the positive impact of an estimated 2% to a shortage of skills, particularly in specialised areas. More than half the Greek population of working age growth between 1989 and 1993 resulting from had an education equivalent only to primary school level and school attendance rates were very low, par Structural Fund transfers, the Greek economy, overall, ticularly for the 15-19 age group, whereas repeat and experienced relatively slow growth in this period. GDP school leaving rates were very high. While generally speaking the likelihood of becoming unemployed per capita lost ground against the European average, increased with the lower level of education, university graduates were also affected by unemployment falling from 60.8% in 1989 to 57.8% in 1993, the because their qualifications often did not match the needs of the labour market. lowest in Europe. The burden of high national debt The Greek plan, geared to progressing the country's (117.9% of GDP in 1993), a balance of payments economic and social cohesion in an EU context included the following aims in relation to the develop deficit and low investment in both the public and pri ment of human resources: reform of the labour market; vate sectors, were major obstacles to growth and upgrading skill levels; facilitating job search; improved matching of the training of the unemployed to job therefore to achieving convergence with other vacancies; provision of incentives for job creation and recruitment of the unemployed, giving priority to com Member States. Inflation fell from 20.4% in 1990 to bating youth unemployment and helping areas with high unemployment. 14.4% in 1993 but, together with real interest rates, continued to be the highest in Europe. This involved: ♦ transforming labour market measures into active instruments responding to the Labour market needs of people to secure employment; ♦ increasing the number of jobs through Unemployment increased from 7.7% in 1989 to 9.8% greater growth in the Greek economy; in 1993 because of lack of growth in employment, a ♦ counteracting exclusion from the labour steady decline in industrial employment due to the market; serious problems facing major industries, a contraction ♦ developing uninterrupted dialogue in agricultural employment and an expansion of the between the social partners and central numbers seeking work arising from the increased par and local Government; and ticipation of women. Young people, especially young ♦ creating a social protection system for women, were particularly affected by unemployment, the unemployed. and long-term unemployment increased, approaching 50% of all unemployed. Young people seeking their first jobs were particularly hard hit. EUROPEAN SOCIAL FUND 133 GREECE HPE 10 CHAPTER tutrl ud rgams n Greece in programmes Fund Structural SECTION2 A. Allocation by Fund and Fund by Allocation A. h lat rseos regions). prosperous least the funding under regional Objective 1 (development of of (development 1 Objective regional under approximately funding representing billion, 2.6 ECU around to funding structural authorities regional and national the 1994-1999, support to Greece period the Over 67.8% one of the four Member States to receive aid from the the from aid ECU receive to States to Member four amounting the of one Initiatives Community the from ESF oein ud aonig o C 26 ilo in billion 2.6 ECU to amounting Fund, Cohesion ERDF 18.4' RADW O ASSAC B OJCIE N SUC O FNIG 1994-1999 FUNDING OF SOURCE AND OBJECTIVE BY ASSISTANCE OF BREAKDOWN about to amount will gap, development the reducing in ECU 14 billion. The ESF contribution amounts to to amounts contribution ESF The billion. 14 ECU 18% of the total. The whole of Greece qualifies for for qualifies Greece of whole The total. the of 18% In addition, Greece has been allocated assistance assistance allocated been has Greece addition, In The Greek authorities have chosen to programme programme to chosen have authorities Greek The 4. mlin o 19-99 Mroe, ree is Greece 1994-1999. Moreover, 1994-1999. for million 141.6 The ESF contributes to nine out of seventeen sectoral sectoral seventeen of out nine to contributes ESF The etrl n rgoa Oeainl rgams (OPs). Programmes Operational regional and sectoral a of way by Funds, Structural the by supported actions tives) Initia unity Comm (excluding FUND BY ALLOCATION OF BREAKDOWN P ad o l tite rgoa OPs. regional thirteen all to and OPs multifund Community Support Framework (CSF) and- and- (CSF) Framework Support Community multifund General Total Total omnt Initiatives Community 1 Objective Adapt Others Employment Objective oa Srcua Funds Structural Total 13981 939.9 15015 1034 4458.6 64.4 30 2702.6 141.6 9490 2561 26.5 56.5 ESF 6. 0 11.5 106 765.7 06 1906 10265 ERDF 775 ECU million - prices validDecisionstimeprices of at - million ECU 3.5 5.8 AG IG 1 FIFG EAGGF 80130 1800 0 11.5 106 141.5 EAGGF 12 FIFG . 8 1% % GREECE B. Main features of the ESF The Human Resource OPs component in the Structural The following are the main features of the human Fund programmes resource OPs: Regional Objectives Education and Initial Training In which the ESF integrates with Given the huge shortfall in investment in education other Structural Funds and training in Greece, the greatest concentration of ESF contributions was directed to this pro gramme. ESF aid under this OP accounts for around 45.4% (ECU 1.2 billion) of all ESF aid and OBJECTIVE 1 represents 63% (ECU 1.9 billion) of the total cost of education and initial training actions in Greece. The ESF contribution is divided between four sub- Development of the least prosperous programmes: regions ♦ general and technical education: 37.6%; ♦ initial vocational education and training: 27.8%; The Greek CSF, adopted on 13 July 1994, provides for ♦ third level education: 32.4% , and, total structural funding equivalent to nearly 15% of the ♦ administrative modernisation of educa EU total for Objective 1. The ESF aims to increase the tion and technical assistance: 2.2%. productive potential of human resources, and works together with ERDF actions, in order to develop the Life-Long Learning and Employment Greek economy. Overall, human resource actions account Promotion for 21.1% of total Structural Fund allocations to Greece, which is a very substantial increase as compared with the Around 28% (ECU 730.9 million) of all ESF aid is 1989-1993 period. The ESF allocation of nearly ECU dedicated to this programme. ESF funding repre 2.6 billion is divided between the nine sectoral and thir sents over 59% of the total cost of actions of this teen regional (multifund) OPs as follows: kind. The programme features three sub-pro grammes which provide financing for the BREAKDOWN OF ESF FUNDING BY SECTOR Employment Observatories, Employment Promotion Centres and Centres of Specialised Operational Programmes ECU million 1 Training as well as training for employed people, Human resources 1164.7 those out of work and people threatened with Postal and telecommunications 37.6 unemployment. Industry and services 35 Combating Exclusion from the Labour Research and technology 30.1 Market Tourism and culture 10 About 9.22% of ESF aid (ECU 236 million) is allo Regional OPs 236 cated to this programme which fosters innovative Total 2548.3 approaches to the problems of exclusion, based on partnership between people carrying out the BREAKDOWN OF FUNDING FOR REGIONAL OPS actions and the users. A sub-programme covers Regions ECU million people with special needs and the provision of ser vices for people at risk of exclusion from the labour Attica 37.7 market. Peloponese 12.6 Central Macedonia 30 Modernisation of the Public Administration Northern Aegean 12.6 Although less than 2% (ECU 44.7 million) of ESF Eastern Macedonia/Thrace 26.3 aid is directed to this programme, it is of consider able importance not only in eliminating weak Southern Aegean 12.6 nesses in public administration but also in promot Thessaly 22.1 ing a more effective administration of Structural Western Macedonia 11.2 Fund projects. Western Greece 19.1 The ESF component of the human resource pro grammes also includes Objectives 3 and 4-type Ionian Islands 11.1 measures, as illustrated below. Crete 15.1 Epirus 10.5 Continental Greece 15.1 Total 236 1 EUROPEAN SOCIAL FUND 135 P rio ritie s Human Resources component of Community Initiatives in Greece All financial assistance from the ESF is directed towards four strategic priorities for the development of The four strands of the Employment Initiative - NOW, human resources: HORIZON, INTEGRA and YOUTHSTART - provide an allocation of ECU 64.4 million (ECU 58.6 million from Priority 1 the ESF) to Greece to foster best practice in the field Enlarging access to and improving the quality of the of human resources development through innovation, education and initial training systems: local partnership and transnational co-operation. A particularly interesting aspect of the use of the This involves strengthening systems in terms of both Employment Initiative in Greece is for projects con quality and quantity, through flexible facilities respon cerning new technology in areas including teleworking sive to the world of work and adaptable to new tech and multimedia centres and those involving young nologies people and the socially disadvantaged. Priority 2 Under the Adapt Initiative, the ESF allocates ECU Improving competitiveness: 26.5 million for the co-financing of innovative transna tional projects for employees at risk of unemployment Emphasis is placed on the adaptation of workers to due to industrial and technological change. changes in production systems and the organisation of continuing training and education; In addition, the ESF contributes amounts, totalling ECU 56.5 million, through other Community Initiatives: Priority 3 lnterreg,Konver, Leader, Rechar, Urban and SME. Improving employment opportunities: Actions focus on the unemployed, people with disabil ities and those exposed to exclusion from the labour market. Employment services are being strengthened and specific measures promoted in guidance, training and employment aids. Priority 4 Modernising the public administration: Essentially this entails the continuing education and training of officials, accompanied by actions to improve the basic structures and systems on which the administration operates. There is also provision for technical assistance which amounts to ECU 12.5 million. Key points - Objective 1 ♦ the whole of Greece is eligible ♦ 45.5% of ESF aid goes to education and initial training ♦ the ESF provides 63% of total costs of education and training ♦ 33% of ESF aid goes to life-long learning ♦ provision is made for the improvement of the public sector 138 GREECE SECTION 3 Programme content and ESF policy aims ESF policy and content Programme A. Vocational integration of of integration Vocational A. oehrwt lresaejb oss n nuty had industry in losses job large-scale with together tiannual plan, are included in this programme to to programme this in included for are plan, Promotion tiannual Employment Employment and and ‘Training Learning to Life-long ‘ The unemployed. term contributed to increasing the numbers in long-term long-term in numbers the increasing to contributed er ad n ra o hg-nmlyet An high-unemployment. of areas in and years employed. This provides grants for unemployed unemployed for grants provides This employed. There is specific provision for tackling long-term long-term tackling for provision specific is There the unemployed with relevant skills, including train including skills, relevant with unemployed the unem long-term the for jobs new of subsidisation programme. training preparatory week two a attend Organisation (OAED) programme for the self- self- the for programme (OAED) Organisation es f eues ae ogt acur (perma sanctuary sought have eco refugees and num of large Europe, bers political eastern in social, developments to nomic Due unemployment. h ln-em nmlyd Ti i dn b devel by done is This unemployed. long-term the people. prac unemployed and to theoretical training, tical including training, vocational from the Labour Market’ OP. The measures centre centre measures The OP. Market’ Labour the from the include sub-programme the under actions Other nently and temporarily) in Greece, which in turn long turn of in number the in which increase Greece, infurther a to led has temporarily) and nently Prolonged and persistent economic difficulties difficulties economic persistent and Prolonged pn tann cnrs epomn aece and agencies employment centres, training oping including exclusion, con social those of risk for at be actions to sidered complements and zontally people for Services ‘Common sub-programme The for programme) training vocational accelerated n epomn pooin cee. h ESF The schemes. promotion employment and equip to training vocational and preliminary around to incentives financial and unemployment of areas in high especially business, in start-up to people help, in particular, unemployed people over 25 25 over people unemployed particular, in help, devoted sub-programme a contains OP Promotion’ te srie poiiggiac ad counselling. and guidance providing services other hori operates Market’ Labour the from excluded unem the of placement the for supports and ployed important component is the Manpower Employment Employment Manpower the is component important Unemployment and Redundant Persons’. Persons’. Redundant mul Greek the with and consistent are which Measures, Unemployment run by the OAED, namely, the TEK programme (the (the programme TEK the namely, OAED, the by run Exclusion ‘Combating the under unemployment training. and jobs new in ployed unskilled workers. This programme offers intensive intensive offers programme This workers. unskilled plays a vital role in an other important programme programme important other an in role creation, vital a plays enterprise and self-employment for ing ogtr unemployment long-term epetraee with threatened people B. Vocational integration of integration Vocational B. hs cee is o oiie ulc pno on opinion public mobilise to aims scheme This The ‘ Life-Long Learning and Employment Programmes Employment 25. of age and the under people Learning young Life-Long ‘ The provided. also are raising awareness and mation iual i aes f ih nmlyet, employ unemployment), high of areas in ticularly infor market labour improved aids, Employment ietd t h gnrl ulc s el s decision as well as public general the at directed il eei fo this. from benefit will subsidies, experience work special start-ups, under this programme:underthis after the end of their training. their of end the after cre tak employers job for for subsidies employers employment and to ation incentives employment makers in political, economic and scientific circles. scientific and economic political, in is makers It exclusion. social avoiding and unemployment issues of combating and preventing long-term long-term preventing and combating of issues ment and training subsidies, grants for business business for grants subsidies, training which and ment measures of set integrated an provide nld: aer giac, rcia tann (par training practical guidance, careers include: Promotion’ OP includes ESF-supported actions for for actions ESF-supported includes OP Promotion’ measures three following the supports ESF The ing on young people for a minimum of six months months six of minimum a for people young on ing nlds h floig cin, upre b the by supported actions, following the includes ESF,assist toby: youngjobs people find people young 15,000 around that anticipated is It h ‘dcto ad nta Tann’ P also OP Training’ Initial and ‘Education The young people young invtv programmes; innovative ♦ work social teachers, train to is aim the training; ♦ teacher and staff ♦ ♦ awareness campaigns and prevention of of prevention and campaigns awareness ♦ made is attempt an heading this under ♦ ♦ supporting the operation of 60 60 of operation the supporting ♦ h seil ed o h tre groups; target the of needs pro special is the Training unemployment. long by term threatened groups with working to encourage the use of innovative innovative of use the encourage to and methods teaching modern in vided staff administrative and carers ers, rme o h ln-em unemployed; long-term the for grammes approaches in the implem entation, entation, implem the in approaches aaeet n mntrn o pro of monitoring and management fe tann i vros kls o young to skills various in training offer ogtr unemployment. long-term (IEK), which were established in the the in established were which (IEK), previous programming period. The lEKs lEKs The period. programming previous Institutes for Initial Vocational Training Training Vocational Initial for Institutes GREECE people between the ages of 18 and 20; Activities concentrate on the following target ♦ introducing guaranteed education and groups: training for young people under the age of 20, in accordance with the Integration into the workforce of persons ‘Youthstart’ concept in the White Paper with physical and mental disabilities on Growth, Competitiveness and Employment. To this end the national This programme comprises a set of integrated apprenticeship system, is being interventions which cover two areas: strengthened both in terms of organisa The first deals with structural problems including tion and provision of practical training those arising from poor quality training, difficulties and work experience. The ESF is crucial of mobility and the lack of information concerning to the apprenticeship system as it pro job opportunities. The second relates to the posi vides most of the funding for the pro tion of these groups in society as a whole. Key gramme. The apprenticeship pro aspects of this intervention involve combating neg gramme run by the OAED; provides for ative stereotyping, increasing public awareness training of four to six semesters, com and promoting a favourable legislative framework. prising theoretical training in an OAED centre and work experience. The OAED Integration of immigrants, former expatri also runs Vocational Training Institutes ates and refugees which provide a vocational alternative for those who have completed secondary Efforts in this area include multi-dimensional pro schooling and those who have only com grammes designed to improve understanding of the pleted the first half of secondary educa cultural and working environments. Social support tion and wish to continue training; is provided including assistance with basic daily- ♦ strengthening education for students living requirements such as accommodation, gone above compulsory second level access to health services and administrative mat schooling age. This is being modernised ters. Tuition in the Greek language is also provided. and adapted to make it more flexible and market-oriented. Measures include Integration of other social groups re-shaping educational programmes by Under this heading, preventative measures to tackle the introduction of new technologies, foreign language training, courses for long-term unemployment are provided for the fol slow learners and environmental educa lowing groups: prisoners and ex-prisoners; single tion. Preventative measures to reduce parents; people from remote mountain regions and early school leaving and low attainment island areas, especially women; people of minority are also being supported by the ESF; cultures and religions and former drug addicts. ♦ improving technical education and vocational training by the creation of a national network specifically focused on D. Promotion of equal opportu technology. nities in the labour market C. Integration of people at risk between men and women of exclusion from the labour Women benefit generally from ESF-backed mea sures under the all policy aims, but under the ‘Life- market Long Learning and Employment Promotion’ OP, specific provision is made for unemployed women. The inflow of migrants and refugees, the evolution A range of actions is available which includes: of family structures and the decline of traditional vocational information, training, employment sub forms of solidarity have contributed to the exclusion sidies and activities which create jobs in areas in of specific categories of people from the job market. which men predominate. Social support, especially With ESF support, an innovative, comprehensive in terms of child-m inding services, is also and co-ordinated package of measures is being included. Around 15,000 women are expected to developed which forms a pathway to economic and benefit. The regional OPs also make provision for social integration. measures that assist unemployed women. EUROPEAN SOCIAL FUND 13< GREECE hetnd ih nmlyet Atvte i ti area this in Activities those and unemployment. with employment in threatened people unemployed, the for hs oiy i i lrey civd hog EF sup ESF through achieved largely is aim policy This port for life-long learning and employment promotion promotion employment and learning life-long for port oy gr h ad ability b ta s and th w ro g t n e ym lo p m E E. Anticipation of labour of Anticipation E. F. The ESF - an instrument instrument an - ESF The F. hc poie otnig dcto i te chemi the in education ESF-sup- continuing also provide are which There change. to skills their technologies new of introduction the for Training Telecommunications methods, production new workers to of adaptation the Employment of extension the supports ESF The training continued and tures f giutrl production. modernisation agricultural the of for and sectors services and cal adapt help actions which section next training the under vocational the outlined from benefit also with threatened those and employment in Workers telecom the in methods management modern and the both (in restructuring undergoing Companies people. self-employed and businessmen for or training to enterprise OAED relation the is in training, supports ESF continuing the which work skills the example An of trends. regional the market labour other of and change anticipating network to a geared of observatories creation the and required by the workforce as a result of industrial industrial of result a as workforce the by required restructuring. Around 22,000 workers are likely to to likely are workers 22,000 Around restructuring. nmlyet s rsl o rsrcuig can restructuring, of result a as unemployment ESF. the by financed also is industry munications sector) private and public workers their for request firms' the training at in-firm programmes establishes OAED The programme. ported actions under the regional programmes programmes regional the under actions ported period. programming current the in from benefit resulting management new or products new Life-long training is supported in order to facilitate facilitate to order in supported is training Life-long Centres Training Specialised Centres, Promotion infrastruc education continuing of Development Employment Observatories, which are special special are which Observatories, Employment Objectiveactions:4-type h Gek rgams rvd fr h following the for Greek programmesThe provide to change to f einl development regional of adaptation of worker skills skills worker of adaptation market trends and trends market ehooia modernisation. technological o) n te self-employed. the and tor) The ESF provides aid for the assessment of training training of assessment the for aid provides ESF The sec private and public the both (in companies small mainly come under the provision of the ‘Life-long ‘Life-long the of provision the under come mainly in areas such as business management, marketing and marketing co-operation skills of management, business as improvement such areas trans-European in the and for entrepreneurs between initiatives needs, o toe led i epomn atos ou on: focus actions employment in already those For OP. Promotion’ Employment and Learning to forge stronger links between education and the the and education between links stronger forge to benefit will companies large by employed those special feature will be databases linking the the linking needs jobs. the to offering databases people companies young Aof be unemployed extended. of will details currently feature being network is special The centres unemployed. these the of to services selling order in assistance financial receive centres These action. this of feature Pilot market. labour the personal re-enter and them job help in to skills training receive will areas, trial area. this in aid ESF from benefit to expected are measures. people these from 34,000 Around the into structures new introduce to having and without training life-long introduce to is here aim The ences in other Member States are an important important an are States Member other experi on in based ences schemes training experimental or indus and urban in mainly people, 45,000 Around age of years 25 over people unemployed and qualified by staffed in facilities establishing training involves company This promote strategy. to is corporate action this of aims key the of One incorporate to companies assist to included also is it skills improving By, themselves. companies training, vocational in expertise technical develop public the sector) both private (in and companies Medium-sized mly n Pooin Centres Promotion ent Employm towards goes ESF the from aid redundant, made and public the both sector) (in private companies Large aor akt n t poie udne n coun and guidance provide to and market labour women unemployed people, young for: projects of 25% around that envisaged is It instructors. of part integral an as facilities training permanent way. possible best the in skills acquired are measures newly Counselling improved. be compa these of will nies capabilities export the that hoped o te nmlyd n toe h hv been have who those and unemployed the For GREECE Under the regional programmes, ESF aid is chan Education and initial training systems nelled to support SMEs and to improve tourist ser Apart from actions to strengthen the national vices in an effort to boost employment in these apprenticeship system, vocational training insti specific sectors. tutes and post-compulsory age education, the ESF Boost human potential in the fields supports the following measures to assist young people in finding work: of research, science and technology Staff training Under the ‘Research and Technology’ OP, ESF funds are designated for the development of human resources This includes training for teachers, instructors, in RTD, aimed at increasing the number of researchers school managers and counsellors as an essential by 60% between 1994 and 1999. part of the reforms in secondary and technical edu cation for young people and in order to facilitate Strengthening the education and the upgrading of education and initial training. training systems Third level education Apart from the general problems affecting Greek edu This includes improving management, the reform cation and training systems, characterised by low of university programmes to reflect current market investment and poor skill levels, there are a number of trends and the promotion of short, market-oriented specific weaknesses which ESF aid is helping to post-graduate courses and post-graduate research. address. The ESF also funds improvements in infrastructure and equipment. In secondary education some of the main concerns include: a rigidity in the system with the curricula fail Responding to the economy ing to reflect current needs; a lack of vocational alter Here the measures aim to reduce the mismatch natives so that those leaving school and entering the between education and economic activity at all lev labour market often do so without the necessary skills; els, with an emphasis on the responsiveness of the teachers often lack specific and practical knowledge; education system to economic and technological and apprenticeship schools tend to be restricted by developments. Improved communication between lack of opportunities for on-the-job training. In third- the world of education and work is further encour level education, postgraduate studies are not system aged through the development of networks, the atically developed and there is a lack of multidiscipli promotion of careers offices, the development of nary specialisation. links between educational establishments and enterprises and the promotion of work experience Life-long training, also underdeveloped, is well below for students. the Community average. Poor management together with the absence of a reliable monitoring mechanism Modernisation of administration for the labour market, makes it difficult to identify real needs, to plan and implement policies and to evaluate This provides for upgrading the central and regional the use of resources. In addition to this, the high pro administrative services of the Ministry of Education portion of self-employed people means there is very lit to promote and support reform, and involves tle formal demand for skills. Moreover public expendi improvements in educational planning, evaluation ture on training is low. and review, as well as the upgrading of implemen tation procedures in relation to ESF programmes. Accordingly, a large concentration of ESF resources for Greece (45.4%) goes towards the improvement of edu Life-long training systems cation and training systems through the ‘Education Here the ESF focus is on the following measures: and Initial Training’ OP. The ESF contribution is of vital importance in the effort to eliminate the defi -Life-long training structures ciencies, and it amounts to 63% of the total cost of Under this heading, training centres are organised actions and 84% of Structural Fund aid to this OP. into a decentralised network of Centres of Life-long training projects are also heavily dependent Specialised Training to provide the basis for a more on ESF aid. Some 33% of ESF aid, representing over systematic approach to life long learning. These 59% of the total cost of life-long training actions in centres are intended to ensure a qualitative Greece, is devoted to the life-long training OP. upgrading of training and the adaptation of training EUROPEAN SOCIAL FUND 141 CHAPTER M ■ 142 GREECE a m n n mdr mngmn ehius ad lre num large a and techniques, management modern and new technologies use of little procedures, weak streamlined of of number a faces h g u ro administration th public t n Greek e m p lo e v e d to g tin u trib n o C officials. The ESF also supports the training of newly newly of training the supports also ESF The officials. supports ESF the Therefore, languages. other of edge r ni publc fci ls ia ffic o lic b u p f o g in in tra recruited officials and the training of staff dealing with with dealing staff of training the and officials recruited including officials, public training at aimed measures knowl as such skills necessary the without staff of ber lack a coordination, inadequate include These nesses. utn i pae ehnsst ietf riig needs, training identify to mechanisms place in putting rprn riig akgs ht et epn t those to respond best that packages training preparing Funds. Structural the by financed projects ranking senior and middle for training continuous support by ing efficiency and management of the and improvement technology, new in personnel, government local Measures intended to enhance structures include: include: structures enhance to intended Measures ain n cnrl mechanisms); control and tation the change, of observatories of coordination the training and staff, teaching and material training to economic change. There is also provision for for provision also is There change. economic to riig ed o enterprises. of needs training to progress achieved in their implementation. implementation. their in linked achieved is measures progress above the to all of financing The criiain tutr i big eeoe, deal developed, being is structure certification A -Certification the of assessment of provision raising the awareness and centres, urban actions major in offices development of curricula and the monitoring of the the of monitoring the and curricula of development cnmc n sca prnr ae l ky compo key all are partners social and economic area this in action ESF-supported of aspects Other implemen efficient of establishment the to (linked planning/programming, overall for responsibility improving centres, training in standards raising implementation of life-long training activities activities training life-long of implementation the has agency central A instructors. in-company et i te ucs o ti approach. this of success the in the nents of involvement the and time-schedules Plans, courses; study training and life-long to instructors train extending life-long then of and centres ing accreditation the with initially ing Employment information of of creation development the Centres, the Promotion include in f h CF Nw noaie cin icue intro include actions innovative New CSF. the of tion sup in administration public the by played part the sim and restructure which supported also are Actions the ESF and the other Structural Funds act as a catalyst catalyst aas act Funds Structural other the ESFand the the and investment private productive facilitate diitaie tutrs novd n h implementa the in involved structures administrative where areas are they as prioritised, are treasury and Apart from providing finance to support these actions, actions, these support to finance providing from Apart capacity. managerial and to administrative ‘One-Stop-Shops’ the as such structures ducing puterised information systems equipped for new organ new for com equipped of systems networks information decentralised puterised tech new of particular in development and nologies, introduction feature the is important here An procedures. and organisation plify and equipment training necessary the providing needs, is particularly important. Special attention is given to to given is attention Special important. stability particularly macroeconomic is and change structural porting ways. isational system. evaluation an establishing and infrastructure ‘Management Organisation Unit’ (MOU) to improve improve to (MOU) Unit’ Organisation ‘Management ‘Modernisation of Public Administration’ OP focusing on: OPfocusing Administration’ Public of ‘Modernisation Modernisation of the tax, customs and budget services services budget and customs tax, the of Modernisation ESF-supported projects are included within a single single a within included are projects ESF-supported administration. public the modernise to move the in This involves the introductory and life-long training of training life-long and education introductory the involves This inary prelim and Training hog te eein f rcdrs n te intro the and procedures of redesign the through mod the for assistance financial provides ESF The it. support that systems the operate organ undertake to order in levels all at officials of iacs riig ciiis n hs field. this in activities budgeting, training finances taxation, to relates programme This s system administrative with inistrative agencies adm public of ernisation and rganisational O personnel inistration adm public utm, efr ad oil euiy Te ESF The security. social and welfare customs, driain f iaca ad social and financial of odernisation M infor particular, in technologies, new of duction epniiiis Te en o mdriain are modernisation of means The responsibilities. modernisation stoa ad diitaie oensto and modernisation administrative and isational ain technology. mation SECTION 4 Management and follow-up Responsible authorities at national level There are also a number of organisations which have responsibilities in relation to the implementation of The Labour Ministry has overall responsibility for the labour market actions. The most important is the co-ordination of all ESF actions under the CSF. OAED which operates under the auspices of the Ministry of Labour; its responsibilities include voca Implementation of the four human resources develop tional guidance and training of young people. ment programmes is carried out by the following Ministries: the Ministry of Education, (Education and Greece recently set up a Management and Initial Training); the Ministry of Public Organisation Unit (MOU) which is designed to improve Administration, (Modernisation of the Civil Service) the managerial capacity of the Ministries and Regions and the Ministry of Labour, (Life-Long Training and and which should facilitate management and follow-up Employment Promotion and Combating Exclusion of the OPs. from the Labour Market). The ESF actions within the other OPs are implemented by the following: the Secretary General for each Region, (Regional OPs); the Ministry of Health and Regional level authorities Welfare (Health and Welfare); the Ministry of Development (Industry and Services, Research and Each region also is responsible for its regional OP at Technology and Tourism and Culture). local level. PART 2 144 PART 2 CHAPTER Ireland SECTION 1 Economic and labour market situation at the time of programming of Community structural funding for the period 1994-1999 Economic situation unemployment register was under 25. In 1993, nearly 59% of the unemployed had been out of work for twelve months or more and female participation in the For many years Ireland had suffered a set of persis workforce was among the lowest in Europe. tent and deep seated economic weaknesses, reflected As regards education and training, the employment mar ket included a substantial core within the workforce who in GDP growth under the EU average and large cur were relatively well-educated, flexible and oriented rent account and budget deficits. However, by 1993, towards new technologies. The large number of well- qualified graduates was a boost to the economy, attract an upturn in economic fortunes was being experi ing inward investors and enabling the country to accom modate the high technology firms prevalent in the for- enced and over 1989-1993 Ireland achieved the high eign-owned sector. Against this however, a substantial number of people had no formal qualifications, with est increase in GDP growth of any Member State, around one third of the population of working-age hav ing failed to attain a secondary level qualification. Drop averaging 5% as compared with the EU average of out rates were quite high and skills among certain cate gories of the workforce were low. Another problem was 1.7%. Ireland's inflation and budget deficit were also that the education and training system made little pro better than average in this period. vision for in-company training for those already in employment, hindering the ability of workers to keep up with changes in technology and production systems. The goals were to reduce long-term unemployment and Labour market high youth unemployment by improving the skills and job prospects of the unemployed. In order to achieve Ireland's workforce comprises 1.4 million people, out this, the Irish Government embarked on a programme of a total population of 3.5 million. Despite the posi to improve education and training as outlined in the tive economic environment in 1993, unemployment Department of Education's White Paper ‘Chartering continued to be the second highest in Europe, at our Education Future’. The main goals included raising around 15.6%. This reflected the long-term failure of the number of young people leaving school with a leav the growth of employment in industry and services to ing certificate from 77% to 99% by 1999. To this end, keep pace with the rapid increase in the labour market curriculum reforms were being introduced at sec and the numbers of people leaving the agricultural ondary level to counteract early school leaving. These sector in search of work. involved an increase in the vocational and technical dimension of education. Youth, female and long-term unemployment were sig nificant problems. Ireland had a high proportion of Other issues under consideration included increasing young people; just over a quarter of the population was the provision for in-company training, the establish under 25 in 1994 (the EU average being 16%), yet ment of a national certification system, the expansion the proportion of young people in employment was of community employment and the more extensive pro below the EU average. One in four people on the vision of local employment. SECTION 2 Structural Fund programmes in Ireland A. Allocation by Fund and Objective The whole of Ireland qualifies for Structural Fund The Irish authorities decided to programme actions assistance under Objective 1 (development of the least supported by the Structural Funds by means of a prosperous regions). During the period 1994-1999 Community Support Framework (CSF) and ten ECU 5.6 billion is being provided by the Structural Operational Programmes (OPs). The ESF contributes Funds in an effort to accelerate social and economic to six of the ten OPs. There are separate OPs for the development. The ESF contribution amounts to almost Community Initiatives. ECU 2 billion, approximately 35% of the total alloca tion. An additional ECU 528 million is provided through the Community Initiatives with the human resources Initiatives, Employment and Adapt account ing for almost one-quarter. Ireland, moreover, is one of the four Member States to receive assistance (ECU 1.3 billion) from the Cohesion Fund. BREAKDOWN OF ASSISTANCE BY OBJECTIVE AND SOURCE OF FUNDING 1994-1999 ECU million - prices valid at time of Decisions Total Structural Funds ESF ERDF EAGGF FIFG Objective 1 5620 1953 2562 1058 47 Community Initiatives Employment 88 84 4 Adapt 28 28 Others 412 52 321.5 32 7.5 Total 528 165 325.5 32 7.5 General Total 6148 2118 2887.5 1090 54.5 BREAKDOWN OF ALLOCATION BY FUND (excluding Comm unity Initia tives) ESF EAGGF 18.7% PART 2 CHAPTER 11 B. Main features of the ESF Human Resource Development component of the Structural The central aims of the Human Resource Development Fund programmes OP are to: meet the training and education needs of different groups; contribute to economic growth and improved employment opportunities; improve skill lev els in the Irish economy and contribute to Ireland's Regional Objectives attraction as a location for inward investment.. In which the ESF integrates with The OP contains five sub-programmes, each incorpo the other Structural Funds rating ESF measures directed at the achievement of certain aims. These measures correspond in essence to the EU-wide Objective 3 and 4-type measures. OBJECTIVE 1 The sub-programmes concern: ♦ initial education and training; ♦ the reintegration of the socially Development of the least excluded; prosperous regions ♦ continuing training for the unem ployed; ♦ improving the quality of training provi sion, and; Under the 1994-1999 CSF, the ESF works together ♦ adaptation to industrial change. with the ERDF to contribute to the development of the Irish economy. Human resources' development is a key objective of the CSF and 37% of all Structural Fund The Five Sectoral OPs assistance goes towards this, with the ESF being the major contributor (35%). The ESF complements mea The sectoral OPs also have sub-programmes, although sures taken at national level in education, training and not all of these have an ESF component. The ESF, for the labour market and helps the Irish authorities example, contributes to just five of the eight sub-pro- achieve their policy objectives in these fields. grammes within the Industrial Development OP: Indigenous Industry, Research and Development, The bulk of ESF resources, ECU 1.6 billion (80%) of Inward Investment, Development of the Gaeltacht ESF aid to Ireland, is allocated to the Human Resource regions and the Food Processing Industry. The ESF Development OP. The balance ECU 381 million is dis component in the Local Urban and Rural Development tributed amongst human resources schemes that sup OP supports one of the most innovative aspects of the port five specific areas of economic development. Irish programmes. It focuses on two aims: ♦ the integrated development of Government-designated disadvantaged areas; and ♦ management development for local enterprise. BREAKDOWN OF ESF FUNDING BY SECTOR 1 Operational Programme ECU million % of total ESF assistance Human Resource Development 1572 80% Industrial Development 154 8% Tourism 102 5% Local Development 57 3% Agriculture 62 3% Fisheries 6 1% TOTAL 1953 100% IRELAND betv 1 Objective ■ Limerick Tipperary NR< Tipperary Tipperary SR Tipperary Roscommorr Waterford Kilkenny Donegal Wexford Kildare Wicklow DUBLIN PART CHAPTER 1 P rio ritie s Training and employment for the unemployed The overall priorities for the ESF for the 1994-1999 programming period are: Activities focus exclusively on projects designed to: ♦ lead to permanent employment; and Priority 1 ♦ improve the qualifications and the to provide services for the large number of young peo employability of the long-term unem ple entering the labour market; ployed. Priority 2 to enhance the employment prospects of the long-term unemployed and those at risk of exclusion from the Human Resource component of the labour market. Community Initiatives Emphasis is placed on preventative actions, support As far as the ESF is concerned, the most important ing growth which is employment-intensive and mea Community Initiatives is Employment and it's four sures likely to achieve long-term impact. strands: NOW, HORIZON, YOUTHSTART and INTEGRA. Between 1994 and 1999, ECU 84.5 million will be More specifically, mainstream ESF action is concen directed to Ireland under the Employment initiative to trated on three aims: foster best practices in the field of human resources development through innovation, transnational coopera Improving access to and enhancing the tion and local partnerships. It is estimated that 58, 000 quality of education and initial training. people will benefit during 1994-1999. Actions in this domain are designed to reduce the The Adapt Initiative will channel ECU 28 million to high rate of early school leavers and of those drop- Ireland for co-financing transnational projects aimed ping-out of training. at employees who face unemployment as a result of industrial change or changes in technology especially Increasing competitiveness. in SMEs and micro-enterprises. It is estimated that Measures here are aimed at the adaptation of the about 8,300 people will benefit. workforce to changes in the global economy, with particular emphasis on management training and In addition, the ESF contributes ECU 52 million, the needs of SMEs. through other Community Initiatives as follows: Leader, Interreg, Regen, Retex, SME, Urban, Pesca and Peace (ECU 20.5 million). Key points - Objective 1______ ♦ the whole of Ireland is eligible ♦ ESF aid (ECU 2 billion) is 35% of all Structural Fund aid ♦ 80% of ESF aid goes to the Human Resource Development Programme; 20% to human resources in five development sectors PART 2 CHAPTER 11 SECTION 3 Programme content and ESF policy aims A. Vocational integration of B. Vocational integration people threatened with of young people long-term unemployment In view of the high level of youth unemployment and the imbalance in education and training, the ESF The Human Resources sub-programme on supports the following measures under the Human Continuing Training for the Unemployed assists peo Resources Initial Education and Training sub-pro- ple who have already entered the labour market and gramme: trains them in the skills in demand by employers. This programme seeks to maximise the number of Youthstart - First and Second level suitable employment and training opportunities for Education Irish people wishing to work in other Member States by equipping them with the relevant skills. The ESF The Youthstart group of measures is a response to co-finances mobility measures designed to assist the Commission's 1993 White Paper on Growth, people who already have sufficient vocational train Competitiveness and Employment. It includes pro ing but may require additional supports including jects focused on young people seeking training, induction, familiarisation and language skills. especially those without basic educational qualifi cations. In addition, pilot projects were launched Measures under the Youthstart Community Initiative and the results of these will be incorporated into the main Industry Training for the Unemployed stream efforts. One of the key aims of these mea This measure involves formal off-the-job training in sures is to reduce the percentage of young people FAS centres (the National Training and Employment leaving school with inadequate qualifications from Board) and in firms, as well as practical training in 23% to 10% by 1999. industry at skilled worker level. There is consultation with employers to agree standards and curricula. Each course lasts from four to twenty-four months Measures and leads to a recognised national certificate. The main features of the Youthstart programme are: Training courses respond to approaches from employers with specific training needs, as well as Preventive actions regional plans prepared by FAS regional directors. These supplement initiatives under the Local Urban and Rural Development OP. Special assis Local Enterprise tance is given for: This new measure focuses on the need to develop ♦ financial support for primary schools in SMEs in seeking to address unemployment problems. disadvantaged areas for the purchase of An integrated range of options is provided to both teaching materials; individual and local groups including an advisory ser ♦ additional teaching and remedial staff for vice provided by Local Development Promoters, enter primary schools in designated areas; and prise training and grants. A Business Training ♦ the creation of home/school/community Programme helps participants to assess their liaison activities for primary and post prospects of successfully starting their own enterprise. primary education. Long-term unemployed people also benefit from the Early school leavers measures under the sub-programme Reintegration There are three features of the provision for school- of the Socially Excluded. A main feature of this is leavers: the Community Employment programme which pro ♦ the Youthreach programme provides two vides temporary employment for the long-term years of integrated education, training unemployed (and other groups excluded from the and work experience for 15-18 year labour market) as well as support for individual olds. It focuses on those who have left training and personal development. More extensive school early without qualifications; Local Employment Services are also being devel ♦ provision of literacy/numeracy instruc oped to enable these groups to compete more effec tion in community training workshops; tively on the labour market. Furthermore, actions ♦ tuition and overhead costs for a network supported by the ESF under the sectoral OPs also of training centres for travellers. assist the long-term unemployed. Vocational Preparation and Training (VPT) of the Socially Excluded. These measures seek to This programme was established in 1994 and pro combat social exclusion by helping beneficiaries to vides integrated education, training and work expe improve their job opportunities through training or rience for secondary level students to help them to a return to education; there is an emphasis on the cope with economic and technological change. long-term unemployed, people with disabilities and Over the present programming period, the VPT pro ex-offenders. A key component of this programme gramme will be restructured; a new Leaving is an exchange of advice and information between Certificate Applied Programme is being introduced employers, training providers and job-seekers. for those who find the traditional Leaving Certificate unsuitable for their needs. This will be Measures aimed at 15-17 year olds, providing them with practical activities with a significant out-of-school Community Employment linkage. The Leaving Certificate Vocational This programme incorporates basic training and edu Programme is being expanded to develop entrepre cation, community employment, skills training, neurial, technological, business and language employment support, counselling and placement ser skills. ESF funding is also given for post-leaving vices. Its main aim is to provide temporary employ certificate training focused on expanding technical ment, which delivers valuable community-based work, knowledge and personal development. combined with an average of 25 days' training. Community Employment is of particular benefit to Apprenticeships those long-term unemployed who are not in a position The apprenticeship system receives ESF aid to to begin a full-time training or education course. support twenty-four trades through the provision of training; additional trades may be included over Training for reintegration the period of the CSF. Apprenticeship training is for Provision is made under this measure for unem a duration of four years and leads to a National ployed people to receive basic training. The focus Craft Certificate which is recognised in other is on particular groups who experience great diffi Member States as well as nationally. culty in both integrating into and progressing through the more traditional forms of education Technical and Business Skills Training and training. Those targeted include women, (Third level) unemployed people with little or no skills, early This measure comprises the Middle Level school leavers and people in remote communities. Technician (MLT) programme and the Higher The measure concentrates on developing personal, Technical and Business Skills (HTBS) programme, educational (literacy and numeracy) and vocational both of which are delivered through the regional skills which prepare for more advanced programmes. technical colleges and the institutes of technology. These programmes are designed to provide voca Community Training tional and technical education and training geared Community Training is primarily a work-based to the needs of various sectors with particular training measure, but includes 'off-the job' mod emphasis on new technology. The HTBS courses ules, in communities which are developing infra focus on priority disciplines such as technology, structure or services involving local unemployed pharmaceuticals, marketing and commerce. people. Participants have the opportunity to develop more in-depth skills especially in con Advanced Technical Skills struction and office administration. (post-graduate level) Advanced technical skills training is provided to Vocational Training Opportunity Scheme (VTOS) graduates in order to adapt their qualifications to This scheme provides the long-term unemployed over the needs of the labour market and to meet the 21 with courses of up to two years duration, with needs of industry at the highest level. many of the places going to the older long-term Early school leavers also benefit from ESF-sup unemployed. The course content comprises voca ported actions under the sub-programme tional skills (in commerce, business, craft and Reintegration of the Socially Excluded and under design, electronics, science and tourism), along with the sectoral OPs. personal development and job search. It is generally recognised that this scheme counteracts social exclu C. Integration of persons sion by providing access to knowledge which devel ops new interests, friendships and social networks. at risk of exclusion from Training for ex-offenders the labour market This measure is to help ex-offenders who have not previously benefited from formal training or work The ESF supports a range of measures in the experience leading to entry to the labour market. Human Resources sub-programme - Reintegration Courses operate for forty hours per week and last on average twenty weeks. Training is provided in Measures various skills areas including: welding, electronics, Training for the Employed computers and heavy goods vehicle driving. (Training Support Scheme) The Training Support Scheme is designed to Occupational integration of people with disabilities increase the quality and quantity of training in This measure seeks to address the special training order to improve competitiveness and productivity needs that may be required by those with disabilities, by improving the skills of employees at all levels. including courses which are longer than average, Prior to participating in this programme, compa adaptation of training equipment and an individu nies are required to develop a business develop alised and flexible approach to training curricula. All ment and training plan based on a review of the types of disability are covered. Training is closely company's activities and an analysis of its geared to local market trends, with employment co strengths and weaknesses in relation to markets, ordinators identifying the potential job opportunities finance, production and human resources. in nearby areas. This training provides various levels of skills from basic through to technical. A Trade Union Support Scheme provides grants to trade union officials for training courses in produc D. Promotion of equal tivity and industrial relations. opportunities in the labour Training Services to Industry market between men and This programme is designed to help Irish industry respond to increasing demands for highly skilled women personnel in order to cope with changes in technol ogy and work practices. Activities carried out under The sub-programme ‘Improving the Quality of this measure include: studies to identify job trends Training Provision’ includes a measure supporting and skills gaps in the various sectors of the Irish specific actions which address imbalances in the economy; developing action plans for industry based labour market between men and women. In addi on these studies and assisting and advising compa tion to this, the ESF also funds positive action nies to identify and meet their training needs. education and training programmes, to encourage women and girls to join sectors which have tradi tionally been male-dominated. This programme F. The ESF - an instrument of includes ESF aid for the provision of childcare facilities to participants. regional development Women of course also benefit, on an equal basis, from ESF-supported actions under the Employment growth and stability other policy aims. In order to boost employment, the ESF combines with the ERDF in the development of the Irish economy. E. Anticipation of labour The role of the ESF is to support human resources market trends and development in the following five main sectors: adaptation of worker 1. Industry skills to change Human resources play a vital role in the develop ment of industry. Employment in the manufactur The central aim of the sub-programme Adaptation ing and international services sectors are increas to Industrial Change is to upgrade the skills levels of ingly affected by changes in consumer choice, those in employment. In general, productivity in rapid technological change and external competi Ireland was somewhat lower than in more developed tion. If Irish companies are to meet these chal countries of the EU, partly because of the lower skills lenges, education and training must ensure that levels. There are two ESF-supported schemes under industry is able to acquire and maintain the neces this sub-programme aimed to rectify the situation: sary skills to be competitive. PART 2 CHAPTER 11 The human resource measures of the OP for A wide range of services is covered as follows: Industrial Development concentrate on the provi ♦ an educational coordinator is made sion of: available to each Partnership to assist ♦ management development grants, par the promotion of educational initiatives; ticularly for SMEs; ♦ pilot pre-school units may be established ♦ training grants for general and com in areas of greatest disadvantage, with the pany-specific training, aimed at assist involvement of parents in all stages; ing workers to adapt to industrial ♦ information and advice services, psy change and changes in production sys chological services and school atten tems; and dance tracking are provided for schools ♦ grants for the training of operatives in and training programmes; and recently established businesses; ♦ supplementary services such as trans port to improve access to local education The ESF supports measures under the following training. three sub-programmes; Services for the Unemployed ♦ indigenous industry - financial support Under this heading actions are carried out for the to the Irish film industry in order to dissemination of information on services for the meet shortfalls in skills; unemployed advice and counselling preparatory ♦ inward Investment and Development of training and monitoring and support for those the Gaeltacht regions- recruitment placed in employment. grants towards the cost of taking on additional employees; and Community Development ♦ Food Processing Industry - management This measure is primarily aimed at enhancing peo development through training courses ple's capacity to influence the development of their and financial assistance for SMEs. own communities by training in communication and leadership skills. In addition, assistance is tar 2. Local, Urban and Rural Development geted at specific groups who suffer a higher level of disadvantage than the community generally, The Local Urban and Rural Development OP including vulnerable young people, the homeless, embodies the most innovative aspects of ESF fund people with disabilities and disadvantaged women. ing. The focus is on the following two sub-pro- Provision for the instruction of tenants in the man grammes: agement of their housing estates and in environ mental improvements is also included. Integrated Development of Government Designated Disadvantaged Areas Community Employment The ESF aims to accelerate local economic devel The national Community Employment programme opment thereby increasing employment. Fund- operates in close co-operation with FAS under the aided actions also tackle marginalisation result Community Employment measure of the Human ing from long-term unemployment, poor educa Resources Development OP. Community Employment tional attainment and poverty. This sub-pro is implemented under this sub-programme according to an annual programme agreed between each gramme is managed by Area Management Ltd, an Partnership and FAS. There is provision for projects intermediary group designated to manage this sponsored by semi-state or private companies and programme and at local level by partnership com which provide enhanced work experience. panies, each comprising a board of directors at local level, and made up of groups such as the Local Enterprise Management Development Social Partners, state agencies and community ESF aid under this programme is aimed at sup organisations. porting the development of small businesses. The actions consist of the following measures: County Enterprise Boards These provide financial aid to the self-employed Education and Training and to management personnel in small firms. The This measure targets ESF resources at the long purpose of this aid is to: term unemployed, those excluded from the labour ♦ upgrade management skills; market, early school leavers and the requirements ♦ enhance business planning; and of community development. ♦ establish appropriate records and management information systems. 3. Agriculture Enterprise which provides the technical, business and marketing skills to establish and successfully The agricultural sector remains one of the largest run a range of rural businesses. The ESF also pro employers of labour in Ireland. However, there has vides funding to the Curriculum Development Unit been a continued decline in employment and to undertake the training of instructors and to income over recent years giving rise to the risk of update course content. rural depopulation. ESF assistance is geared towards the improvement of incomes based on a Training for the equine industry strategy of diversification into areas such as An International Equine Institute is being created at forestry, agritourism and the equine industry, whilst the University of Limerick aimed at enhancing the improving marketing techniques in the main prod Irish equine industry through education and training. ucts to ensure competitiveness. The Institute will establish a range of continuing edu cation programmes to certificate and diploma levels. Under the Agriculture, Rural Development and These programmes will be strongly vocational in Forestry OP, the ESF supports human resources nature and broadly based in order to cater for stu development in the forestry sector, general training dents and rural dwellers with varying requirements. for agricultural diversification and rural develop ment and training for the equine industry. 4. Tourism Forestry The importance of tourism to the Irish economy Training is provided in the forestry sector in the fol has grown substantially with tourism-related jobs lowing three main areas: accounting for about 50% of the net increase in employment during the previous programming Forest establishment and maintenance to: period. National strategy is aimed at substantially ♦ encourage best practice increasing tourism revenue by 1999 and creating ♦ ensure the maximum return on forestry 29, 000 more jobs. investment, and, ♦ bring about a shift in production from Training measures co-financed by the ESF are con agricultural surplus products to prod sistent with the fact that this strategy will require ucts which are in deficit within the EU highly trained professional staff able to create new and nationally. products and attract high-spending visitors. ESF-sup- ported training in tourism-related skills is being pro Forest harvesting and nurseries. vided under CERT for the hotel and catering industry ♦ This involves training in the marketing as well as new areas such as culture, heritage and of forestry products, including the pro recreation. Training programmes cater for the unem cessing, distribution and retail sectors. ployed, early school leavers, first time job seekers and people already working in the industry. European Agriculture and rural development language instruction is an integral part of the training Training for agriculture and rural development con programmes. Full-time college courses include a centrates on young people embarking on a career in compulsory European language module, and training agriculture, horticulture, the equine industry, forestry courses for the unemployed contain a French lan and other rural businesses. Training is also provided guage option. All European trainee exchange for adults already engaged in these areas and for gen schemes include intensive language courses. erating additional income and employment through the establishment of other rural businesses. The ESF supports three measures: ♦ programmes for the unemployed, such Prospective farmers are provided with the technical as Start-Your-Own-Business, Basic and business skills necessary for the profitable oper Skills Training, Return-to-Work and ation of farm enterprises. Training geared to farming Advanced Craft training. practices is carried out in a way which is consistent ♦ initial Training which involves full-time with environmental and animal welfare require craft training programmes for one or two ments, the diversification of farm production and years. Training is off-the-job, comple the establishment of alternative farm enterprises. mented by compulsory work experience, and seeks to provide the necessary skills Established farmers are also provided with these required for effective customer relations. training opportunities and given short courses in ♦ continuing training, involving block the skills needed to adapt farming systems to the release by firms of a number of their reform of the CAP and the effects of the trade lib staff for around 20 weeks per annum; eralisation resulting from the GATT agreement. they go on to advanced craft manage Rural dwellers can take the Diploma in Rural ment and supervisory training. PART 2 CHAPTER 5. Fisheries Strengthening the education and The fishing industry suffers from major structural training systems weaknesses despite growth in recent years. ESF measures under the human resources element of The Human Resources OP sub-programme devoted to the Fishing OP provide training to ensure the effi improving the quality of training provision aims to ciency, safety, quality, and business skills neces increase the responsiveness of the education and sary to support the maintenance and expansion of training system to economic and technological devel employment in the sea fishing, aquaculture, pro opment. ESF-backed, comprehensive retraining pro cessing and distribution sectors. Bord lascaigh grammes are provided by the Department of Mhara (BIM) is the semi-state agency responsible Education, FAS and the National Rehabilitation Board for the development of the fisheries industry. Its as follows: human resources development programme pro vides formal training both at the National Fisheries Training of teachers and trainers Training Centre and through a mobile training unit Enhanced training is provided for instructors, par at fishing ports around the Irish coast. One of the ticularly for those working with disadvantaged key objectives is to raise the skills profiles of train groups, people with disabilities and women return ers in order to meet the demand for new courses, ing to the labour market. Special attention is paid using advanced technologies. to measures aimed at updating the technological and scientific knowledge of teachers and trainers. Specific modules include provisions for: There is a focus on ensuring the suitability of per ♦ deck crew training and engineer crew sonnel in terms of skills, qualifications and apti training; tude. A variety of retraining programmes is used ♦ fish farming for beginners; such as individual training plans, placements in ♦ training in hygiene and product quality; industry and foreign exchanges. ♦ instruction to meet environmental stan dards under national and Community Curriculum and certification development law and, With ESF assistance, all sub-degree training/educa ♦ nautical skills training. tion will have recognised certification to an interna tional standard by 1999. In line with national policy, the ESF is assisting the establishment of the Boost human potential in the fields National Education and Training Certification Board of research, science and technology to take over certifying functions in vocational educa tion and training institutions. This will provide a The OP for Industrial Development has a subpro structure for the formal involvement of industry and gramme which is devoted to research and development the Social Partners. At the same time new assess which provides assistance for post-graduate training in ment standards are being set and the duration and advanced research techniques and in the application skill levels of training will be progressively increased. of new technologies. Management and follow-up Implementation structures Monitoring Committees The Department of Finance has overall responsibility A Monitoring Committee has been established for each for the CSF and Structural Funds in Ireland while the OP to monitor the progress of the individual pro operation of the ESF is the particular responsibility of grammes. the Department of Enterprise and Employment. The committees include representatives from; all rele Individual Government Departments handle the imple vant Government departments; the social partners, the mentation of the programmes for their respective sec beneficiaries, and non-governmental bodies participat tors of the economy; with assistance in some cases ing in the work of the Human Resources, Agriculture from the semi-state bodies. and Local Development programmes. The responsibility for the Human Resource In order to ensure coordination between the six OPs Development OP, the largest OP, is divided between which have an ESF component, a Human Resources the Department of Education and Science, the Coordination Committee has been set up to review hor Department of Justice; FAS (the National Training and izontal issues in relation to the development of the Employment Authority) and the National education and training systems in Ireland. It reports to Rehabilitation Board. the Human Resource Monitoring Committee. All pro gramme Committees report to the CSF Committee, The human resources actions under the Industrial which is chaired by the Department of Finance. Development OP are implemented by Forbairt; IDA Ireland, Shannon Development, Udaras na Gaeltachta, the Crafts Council, the Irish Film Board and higher education institutes. E va lu a tio n Direct responsibility for the management of the inte In 1992 an ESF Evaluation Unit in the Department of grated development of designated disadvantaged areas Enterprise and Employment was established to moni rests with Area Development Management Ltd. tor the effectiveness of ESF actions. This Unit reports to a Management Committee on which the The forestry element of the agricultural OP is managed Commission is represented. It is funded under the by Teagasc, the Agriculture and Food Development technical assistance provision of the ESF. Authority, and Coilte, the Forestry Board. Along with private agricultural colleges, they are responsible for training in agriculture and rural development. Tourism measures are managed by CERT, the National Tourism Training Agency, in conjunction with the Department of Education and Science. Bord lascaigh Mhara (BIM) is responsible for fisheries, under the Department of the Marine and the Department of Enterprise and Employment. The designated disadvantaged area programme is implemented at a local level through the partnership companies, each comprising a board of directors drawn at local level from; the Social Partners, relevant state agencies, local authorities, community organisa tions and education sector interests. The partnership co-operates with the Department of Education and Science and the appropriate training bodies. CHAPTER 12 ITA LY Italy SECTION 1 Economic and labour market situation at the time of programming of Community structural funding for the period 1994-1999 Economic situation Labour market During the eighties, the number of people employed The Italian economy experienced a period of sustained in Italy grew constantly, with an average of 120,000 jobs created each year. Nevertheless, under the influ growth until the early nineties but over the same ence of demographic trends, the unemployment rate rose from 7.2% of the labour force in 1980 to about period the national debt increased substantially and 10.9% in 1991. interest rates and inflation grew. Having reached a The following year, with the deterioration of the eco peak in 1991, GDP per head fell during the succeed nomic situation, unemployment peaked at 11.5%. Again, the difference between the Centre-North and ing years, dropping below its 1989 level in 1994. This the Mezzogiorno was substantial; by 1992 the unem ployment rate was 5.9% in the Centre-North compared trend was accompanied by a substantial devaluation with 20.4% in the South. The employment situation was particularly difficult for the vulnerable groups in of the lira and a tight fiscal policy aimed at putting a the most disadvantaged areas. The figure for women's brake on the public deficit. As a result the traditional unemployment in the Mezzogiorno was 31.6 % - three times the EU average. gap between the northern and southern regions widened even further. The crisis was particularly seri ous in the Mezzogiorno (the South), which was suf fering from a very limited industrial base, with less than 11 % of the labour force employed in industry as compared to 24% in the Centre-North. Indeed by 1994 even though Italy's average GDP per head was slightly above the EU average, GDP in the Mezzogiorno amounted to only 60% of the figure in the Centre-North. In addition, the restrictive budget policies since 1992 had a negative impact on the Mezzogiorno because of the heavy dependency of its economy on a public service with reduced resources. ITALY tutrl ud rgamsi Italyin Fund programmes Structural SECTION 2 A. Allocation by Fund andFund by Allocation A. of ECU 1.7 billion come through the Community Community the through come billion resources 1.7 Additional ECU billion). of 4.9 (ECU 24.7% is share RADW O ASSAC B OJCIE N SUC O FNIG 1994-1999 FUNDING OF SOURCE AND OBJECTIVE BY ASSISTANCE OF BREAKDOWN Italy qualifies for Structural Fund aid under Objectives Objectives under aid Fund Structural for qualifies Italy ntaie - u o hc 07 ilo fo te ESF. the from billion 0.7 which of out - Initiatives 9419 i oe C 1. blino hc h ESF the which of billion 19.8 ECU some is 1994-1999 1, 2, 3, 4 and 5. Its total allocation for the period period the for allocation total Its 5. and 4 3, 2, 1, Structural Fund aid in Italy is implemented through through implemented is Italy in aid Fund Structural of those have an ESF component. ESF an have Seven those regions. of 1 Objective the all in each Programmes operations covering Operational multiregional 14 also are Programming Single Programmes, Operational ouet ad lbl rns Te ih Ojcie 1 Objective eight The Grants. Global and Documents Fund aid on the basis of individual Operational Operational individual of basis There ESFsupport. the receives which of each on Programmes, aid Structural receive Fund Mezzogiorno, the in located Regions, Total betv 1 Objective Total CommunityInitiatives 2 Objective betv 4 Objective 3 Objective betv 5b Objective Fish. 5a Objective Agric. 5a Objective Adapt Others 97 1999 - 1997 1996 - 1994 Employment eea TotalGeneral Objective oa Srcua Funds Structural Total 21641 14850 19878 57327 1597 361316 1316 1286 1142 1763 9 399 142 399 963 684 681 401 901 220 134 2739 5610 9311299 4903 ESF 401 220 8 728 185 122 707 h rgos f h Cnr-ot, o cvrd by covered not Centre-North, the of regions The gional Programmes under Objective 3 and three multi- multi- three and 3 Objective under Programmes gional Objective 1, have a system of individual regional regional Single individual a and of 3 Objective system for a Programmes have Operational 1, Objective Objectives 2 and 5b are implemented through the the through implemented are 5b and 2 Objectives ige rgamn Dcmn (P) system. (SPD) Document Programming Single 4. Objective for programmes multire- regional three also are There 4. Objective for regions Programming Document common for all of these these of all for common Document Programming There are 11 Objective 2 SPDs (one for each region region each for (one SPDs 2 Objective 11 are There There are also Operational Programmes for the the for Programmes Operational also are There ESF, the involving measures 5b contain SPDs these Objective of 13 All and Adige) Alto Trentino from apart omnt Iiitvs ms o hc icue h ESF the include which of most Initiatives, Community d'Aosta. Valle in 5b Objective from apart SPDs (one for each region, two for Trentino Alto Adige). Adige). Alto Trentino for two region, each for (one SPDs 12192 RFEGF IG I FIFG EAGGF ERDF 6022 223 2228 9660 1270 542 369 893 893 ECU m illion - prices valid at tim e o f Decisions f o e tim at valid prices - illion m ECU 46363 3476 39 5 J 357 3319 410 681 5 6 157 157 134 6 PART 2 CHAPTER 12 BREAKDOWN OF ALLOCATION BY FUND (excluding Community Initiatives) ______ERDF 56.8% ______ESF 24.7% EAGGF 16.7% FIFG 1 .8% BREAKDOWN OF STRUCTURAL FUND ALLOCATION BY OBJECTIVE Objective 4 2% Objective 5b Objective 3 4.5% 6.8% Objective 5a Objective 2 4% 8% Objective 1 74.7% BREAKDOWN OF ESF ALLOCATION BY OBJECTIVE Objective 4 8,2% Objective 5b 2.4% Objective 3______26.8% ______Objective 1 Objective 2 55.9% 6 7% B. Main features of the ESF component in the Structural OBJECTIVE 3 Fund programmes Combating long-term unemployment and facilitating the integration into working life of young people and of persons EU-wide Objectives 3 and 4 - exposed to exclusion from the labour involving only the ESF market; promoting equality of opportunity ITALY PART 2 CHAPTER 12 the Ministry of Labour and the Commission agreed to to agreed Commission the and Labour of Ministry the OPs. Regional different two 14 through implemented is CSF The the and Italy between in agreed 3 regions Objective Centre-North for the Framework Support Community The adopt three additional multiregional Operational Operational multiregional additional three adopt Centre. the for 9.9% and period the over billion 1.3 ECU allocates Commission BETV 3 REGION 3 OBJECTIVE managed and Trento is of provinces and (OPs) autonomous The regionally. Programmes Operational both were CSF this by covered regions the in rates RADW O EF LOAIN BY ALLOCATION ESF OF BREAKDOWN Programmes. North the for 5.9% at ) (10.5% average unemployment EU the below 1992 The period. the for share ESF In order to address problems common to all regions, regions, all to common problems address to order In have region, same the of part forming though Bolzano, 1994-1999. This represents 27% of the total Italian Italian total the of 27% represents This 1994-1999. The multiregional OPsThe multiregional provideassistance for: oa 1.316 28 206 109 12 Total action employment & Training Trento d’Aosta Valle Veneto Toscana buz 16 systems Strengthening Abruzzo imne122 42 175 122 184 Piemonte Lombardia Liguria Lazio Giulia Friuli-Venezia Emilia-Romagna ozn 24 54 Measures Innovative Bolzano Umbria Marche noaie actions; innovative ♦ ♦ strengthening training systems and and systems training strengthening centres; ♦ training national ♦ aor akt systems. market labour C million ECU 35 31 66 37 53 This priority receives 32% of the allocation for for allocation the of 32% receives priority This h pro 1994-1999. period the and the Commission in the CSF was designed to to govern designed Italian was the CSF by adopted the approach in the government enhance Commission Italian the the and between agreed strategy The The ESF allocation for this priority was reduced from from reduced was priority this for allocation ESF The Priority 2 Priority problem. this of significance the indicating 3, Objective 1 Priority evcs EU9. million services. ECU92.1 5 Priority 4 Priority million exclusion. ECUsocialof 131.6 risk people at 3 Priority for 43% to period programming previous the in 77% peoplelabourtheinto market.million ECU 565.9 eidtecrepnigfgr mutdt ny 10%. only to amounted figure corresponding the period long of risk unemployedthose long-term at or the of Strengthening training andof initial integration of young : are priorities 3 Objective five The ment. s ritie rio P During the preceding Structural Fund programming programming Fund Structural preceding the During million unemployment.term ECU 421 teghnn o tann sses n employment and systems training of Strengthening million ECUlabourmarket. the 105.3 in womenand men for opportunitiesequal Promotion of nerto o enerto it te aormre of market labour the into reintegration or Integration The integration or reintegration into the labourThe marketthe integrationinto reintegrationor PART 2 CHAPTER BREAKDOWN OF ESF FUNDING BY PRIORITY - OBJECTIVE 3 Priority 5 7% I ______Priority 4 Operational Programmes Key points - Objective 3 The Operational Programmes provide for financial ♦ 27% of total ESF allocation in Italy assistance for: for the period 1994-1999 ♦ guidance, pre-training, information and ♦ about 20% of total ESF allocation assistance; ♦ vocational training; directed to young people under 20 ♦ training aimed at promoting self- ♦ 25% of total ESF allocation employment in new types of activity; focused on social services, audio ♦ on-the-job training; visual, recreational and cultural ♦ education and training for women with activities, environment inadequate qualifications; ♦ technical assistance. ♦ integrated actions include guidance and counselling as well as training The ESF also provides aid to employment, such as income support and fiscal incentives for enterprises. Maximising job-creation potential by directing training measures towards the ‘new employment areas’ ESF intervention was designed to create the conditions for exploiting job-creation opportunities in potential growth sectors. These ‘new employment areas’ include.- ♦ social services; ♦ the audio-visual sector; ♦ recreational and cultural activities; ♦ environmental protection. These measures are to receive an allocation of ECU 329 million during the period 1994-1999 represent ing 25% of the total Community resources allocated to Objective 3. Beneficiaries It was estimated that there would be more than 900,000 beneficiaries from Objective 3 measures over the period 1994-1996. PART 2 P T E R 1 2 The Objective 4 SPD for 1994-1999 was divided in r OBJECTIVE A the following two phases: Facilitating the adaptation of workers to 1994-1997 changes in production systems During this period action was initiated in favour of peo The SPD for Objective 4 receives an ESF allocation of ple at risk of unemployment and the financing of train ECU 399 million, which represents 23% of the ESF ing and guidance schemes. This was accompanied by resources for the Centre-North and 8% of the total ESF action to lay the groundwork for the establishment of a allocation for Italy. At the period of programming the continuing training system, to raise awareness in eco economic situation in Italy was particularly serious. The nomic and social circles and to prepare methods and main aim of the Italian SPD was to gradually set up a organisational models constituting the basis for the system for continuing training capable of identifying the anticipation of training needs. future training needs of people in employment. At the same time, the programme envisaged concentrating 1997-1999 activities on employed workers with a low level of basic training who required retraining or upgrading of skills. Once the continuing training system is established, the SPD provides for training activities, giving prefer ence to schemes that anticipate and support innova tion and the enhanced competitiveness of enterprises. P rio ritie s There is also provision for the development of a certi fication system. The Objective 4 SPD contains the following priorities: General characteristics BREAKDOWN OF ESF FUNDING BY PRIORITY - The SPD contains 14 sub-SPDs, of which 11 are regional (except for the autonomous provinces of OBJECTIVE 4 Trento and Bolzano, which have one each), and three multiregional programmes, which coverall 11 regions. Priority 1 Anticipation, planning, support and management of a These multiregional programmes address the training continuing training system, forecasting, planning and needs common to all regions, namely: development. ECU 58 million ♦ innovative measures, to allow the devel Priority 2 opment of new forms of intervention; Activities aimed at adapting and supporting human ♦ training on a multiregional scale for the resources in the light of the structural changes in the adaptation of expertise and skills; economic system. ECU 321 million ♦ strengthening systems of continuing train ing. The problems of continuing training Priority 3 are particularly serious for SMEs, because Technical assistance. ECU 20 million of their inability to pay for training. The SPD therefore, provides ECU 255 million for schemes designed to increase the skills of workers in small firms. BREAKDOWN OF ESF FUNDING BY PRIORITY - OBJECTIVE 4 Priority 3 5% ♦ 8% of the total Italian ESF allocation Priority 1 ♦ 65% of Objective 4 allocation 15% aimed at SMEs ♦ guidance, preparatory training, Priority 2 80% assistance for geographical mobility ♦ planning and implementation of continuing training m m CHAPTER 12 > r“ -< Regional Objectives - in which the ESF integrates with other Structural Funds economic development aims of the other Structural Funds - ERDF, EAGGF and FIFG. Priorities of ESF assis r OBJECTIVE 1 tance include the development of young entrepreneur ship, education and basic training (improvement of Development of the least prosperous access to, and the level of further vocational training and regions adjustment of short university courses), and the integra tion of the jobless (especially the long-term unemployed, under 25s, women, disadvantaged groups). There is also On 28 February 1994, the European Commission an emphasis on the continuing training of workers, with adopted the Objective 1 Community Support Framework particular attention to the needs of SMEs, training for (CSF) for the southern Italian regions. There were, at the employees in public administration and training in spe time of the decision, eight such regions: Sardegna, cific sectors for both employed and unemployed people. Sicilia, Calabria, Basilicata, Apulia, Campania, Molise and Abruzzi. The latter was considered eligible under A technical assistance programme provides for moni Objective 1 fora limited period expiring on 31 December toring, control, evaluation, and publicity. 1996. Structural Fund contributions to these regions amount to ECU 14.9 billion for the period 1994-1999, BREAKDOWN OF ESF FUNDING and ECU 2.7 billion (18.4%) of this comes from the ESF. BY OBJECTIVE 1 REGION ECU million General characteristics of the Sardegna 220 Mezzogiorno Sicilia 427 Calabria 174 The CSF for the Mezzogiorno regions identified a number of factors impeding development. These include: inadequate Basilicata 141 basic infrastructure, an inefficient production system, in Puglia 285 particular in the industrial sector, inadequate quality of Campania 328 public-sector services and a shortage of business services. Molise 48 The high level of unemployment in the Mezzogiorno Abruzzo 44 had the following main characteristics: Multiregional 1.072 ♦ it affected the most vulnerable cate TOTAL 2.739 gories, such as women and young peo ple under 25 (unemployment in the lat ter category was 52.8% in 1992 com Beneficiaries pared to an EU average of 17.2%); ♦ it was particularly serious in Campania, It was expected that resources provided by the ESF pro Sicily, Basilicata and Calabria; grammes to the Mezzogiorno would assist the training ♦ the impact on the long-term unem of some 800,000 people in the period 1994-1999, ployed is particularly high; and that a total of 61,000 jobs would be created. ♦ affected not only the underskilled but also graduates. Key points - Objective 1______ Following the approval of the CSF, each individual region drew up Operational Programmes, which were agreed with ♦ 56% of the total ESF allocation for the Commission. There are 14 multiregional Operational Italy Programmes for airports, road transport infrastructures, ♦ 36.2% of the total Italian population energy, industry and services, water resources, tourism, ♦ training priorities for young entrepre rail transport, telecommunications, RTD, training of train neurs, tourism, RTD and environment ers and civil servants, public education, southern employ ♦ unemployment at 20.4% ment emergency (Objective 3-type programme for the Mezzogiorno), training of migrants, and innovative actions ♦ youth unemployment at 52.8% and technical assistance. In seven of these programmes ♦ women's unemployment at 31.6% the ESF intervenes to address human resources problems ♦ 42.6% of ESF resources is common to all the Mezzogiorno. directed to under 25s In the individual regions, the ESF integrates with the EUROPEAN SOCIAL FUND 163 PART 2 CHAPTER 12 >- < ■ Objective 1 ■ Objective 2 □ Objective 3 □ Objective 4 1 Objective 5b Trentino- Friuli- Alto Adige Venezia Giulia Veneto Lombardia Emilia- Romagna Toscana mbrial Abruzzo Lazio Molise Campania Basilicata Sardegna Calabria CHAPTER 12 ITALY BREAKDOWN OF ESF FUNDING r OBJECTIVE 2 BY OBJECTIVE 2 REGION Ecu million - current prices Converting the regions seriously affected 1994-1996 1997-1999 by industrial decline Emilia-Romagna 2 3 Friuli-Venezia Giulia 6 11 The 11 Italian Objective 2 regions were allocated Lazio 12 15 Structural Fund aid totalling ECU 1.7 billion for the Liguria 29 37 period 1994-1999. The ESF, which provides almost Lombardia 4 8 19 % (ECU 325 million) of this aid, combines with the ERDF, enhancing the human resources needed to inte Marche 3 3.5 grate with economic development in the regions. Piemonte 41 49 Special emphasis is placed on supporting SMEs and Toscana 24 30 craft companies. Umbria 8 11 Veneto 13 17 General Characteristics Valle d'Aosta 0.2 0.3 Total (1994-1996) 142.2 184.8 | The traditional industrial areas are characterised by the presence of large firms and declining traditional industries (Valle d'Aosta, Liguria, Friuli-Venezia Giulia, P rio ritie s Umbria, Veneto and part of Piemonte). The regions suffered a steady reduction in the number of large One of the ESF priorities is to contribute to the trans enterprises, and this was only slightly compensated for fer of innovation from the universities/research centres by the growth in the number and size of SMEs. This to business. Eight Objective 2 regions indicate human resulted in a deterioration in the high level of socio resources development as a priority action. economic cohesion in these areas. The cities and urban areas concerned (Turino, Genoa, Trieste, Venice, These priorities are aimed in particular at: Terni) are also characterised by high unemployment ♦ providing training for executives and rates, environmental problems, large concentrations of entrepreneurs; derelict and contaminated sites and run-down districts ♦ training of trainers; with high levels of crime. ♦ promoting the vocational and social integration of the most disadvantaged The presence of important scientific and technological groups; institutions, good transport infrastructures, services to ♦ tourism and services. SMEs and good tourism potential in these areas ensure opportunities for diversification. Technical assistance is provided for monitoring, con trol, evaluation, and publicity. Of the total Italian population, 6.1 million or 10% live in Objective 2 areas. Beneficiaries It was expected that during the period 1994-1996 about 15,000 jobs would be created and about 82,500 safeguarded. Key points - Objective 2 ♦ 6.7% of the Italian total ESF allocation ♦ 11 regions are eligible ♦ 10% of the Italian population live in Objective 2 areas EUROPEAN SOCIAL FUND 165 ITALY PART 2 etn 25 o te oa EF loain o tl over Italy to allocation ESF 1994-1999. period total the the of 2.5% senting a receive 5b Objective by covered regions Italian The r onan ra hytn t sfe rm accessibil from suffer to tend hill they in areas located are mountain or them of many As the regions. Alpine follow the to Piemonte broadly from areas extending chain 5b mountain Objective Apennine Italian s tic The ris te c ra a h C eneral G repre million. ESF, the 901 from ECU comes aid of this of 13.5% contribution Some Fund Structural ors idsr ad h pooin f M develop SME of promotion the and the industry include: SPDs tourism 5b Objective the of priorities The in situated areas 5b Objective also are There Calabria. continuing training courses and the strengthening of of agencies. strengthening the and employment and and courses initial training training finances ESF The continuing Funds. the Structural ensure other to necessary training the typically, cover, maximum impact from the actions financed by the the by financed actions the from impact maximum SPDs the the of of components resources improvement human The the ment. landscape, of protection Italian total the of 8.3% Objective in population. represents live people which areas, million 5b 5 About problems. ity e poi s - ecie 5b ctive je b O - ts in o p Key hy eev 24 o h ESFthe of total 2.4% receive they ♦ in live population total the of 8.3% ♦ pirt i ie t riig in training to given is priority ♦ The development and structural structural and development The duteto rrl areas rural of adjustment 5b OBJECTIVE ors ad SMEs and tourism Italy to allocation environmental protection, rural rural protection, environmental areas 5b Objective the Community Initiatives, especially under the Adapt Adapt the under especially Initiatives, Community the h Epomn Iiitv, ih t or tad NOW, strands four its with Initiative, Employment The The ESF supports specific OPs within the framework of of ly framework Ita the in OPswithin s specific e ESFsupports The tiv itia In ity n u m m o C in n lcl partnership. local and tion Initiatives. Employment and ed o e togy otd n h lcl economy. local the in projects rooted the and strongly con be Italy, is in to tend important Initiatives the particularly of sidered aspect partnership local The industrial to due unemployment of risk at employees Hum an Resources co m p o n e n t o f f o t n e n o p m co Resources an Hum The other Community Initiatives allocated for the the for allocated Initiatives Community other The changes. technological and co-opera transnational innovation, through practices million to co-finance transnational projects targeting targeting projects transnational co-finance 219 ECU to allocates ESF the million Initiative, Adapt the Under best of development the foster to million contributes 401 YOUTHSTART, ECU and INTEGRA HORIZON, eid 9419 a oa cnrbto o ECU of Urban. and contribution SME, total a 1994-1999 period C 8 milo truh nerg Lae, Pesca, Leader, Interreg, through illion m 86 ECU 1,142 m illion to Italy, of which the ESF contributes contributes ESF the which of Italy, to illion m 1,142 CHAPTER SECTION 3 Programme content and ESF policy aims A. Vocational integration of There are also training measures that target the sec tors providing new sources of employment, such as people threatened with long social services, the audio-visual industry, recreational term unemployment and cultural activities and environmental protection. Employment aids In 1992, the number of people nation-wide who had been seeking work for more than a year in Italy was The Italian ESF programme provides for different some 1,360,000. Long-term unemployment had forms of employment aids, such as those for geo grown by more than 50% since 1991, with people graphical and occupational mobility, income sup at risk of exclusion and young people being most port for the self-employed, and recruitment aids. affected. The fight against long-term unemployment Priority is given to operations closely connected to was identified as a major priority in the national regional and local development plans. plans agreed between the Government and the Commission for the programming period 1994- Development of labour market efficiency 1999. Thirty-two per cent of total ESF resources for through improvement of training and Objective 3 actions in the Centre-North of Italy is employment structures devoted to this priority, more than three times the In Italy responsibility for training and employment corresponding share in the preceding period. programmes is shared among national, regional and provincial bodies. The measures implemented In the Mezzogiorno, 34% of the total ESF alloca in the programming period aim to achieve improve tion is for the reintegration of the long-term unem ments in administrative efficiency and in particular ployed into jobs. The aim is to encourage the inte to correlate training operations with policies affect gration or reintegration into the labour market of ing the labour market. This requires the strength adults and young people who have been unem ening of links between the labour market services ployed for more than 12 months or those who are responsible for monitoring supply and demand, in danger of drifting into this situation. managing training and guidance systems and improving job placement. The ESF allocates ECU Vocational training measures and counselling 186 million to this priority. The traditional forms of training in Italy, on their own, proved to be of little use to those seeking The training of trainers and staff of employment employment. Actions agreed between the agencies is particularly important in the southern Commission and the Italian authorities for the cur regions which are beset by problems of industrial rent programming period focus therefore on the fol restructuring, such as Campania, Calabria, lowing additional supportive aspects: training, work Basilicata and Sicily. placement, guidance and counselling, entrepre neurship and training for self-employment and sup port for socially useful work projects. Among these, B. Vocational integration of a system of extended traineeships aims to reinte grate the long-term unemployed into jobs. In this young people way the ESF supports national policy (law 336). Unemployment in the under 25 age group, while Particular attention is given to the retraining of serious in the whole country, is particularly severe in people registered with Cassa Integrazione southern regions, where the unemployment rate for Guadagni a Zero Ore (CIG),who receive unemploy this group was 52.8% in 1993, compared to an EU ment benefit, and are at serious risk of becoming average of 17%. Measures intended to remedy this long-term unemployed. The CIG covers the more situation account for a considerable part of national highly industrialised areas of the country, both in and Community investment. In the Centre-North the north, especially Piemonte and Lombardia, regions the proportion of the total ESF allocation and in the South. The facilities provided by the devoted to this purpose, though less then in the CIG include support for re-employment projects preceding period, is a substantial 43% of the total involving consultations between management and allocation for Objective 3. In the Mezzogiorno the labour (e.g. solidarity agreements), aid for the corresponding allocation represents almost 50% of temporary transfer of employees, and financing for ESF resources for Objective 3-type actions. Young retraining agreements. people under 25 constitute more than 50% of the 1 2 long-term unemployed, and in the Mezzogiorno Second level training many are at risk of social exclusion. This kind of training is directed towards people obtaining a school certificate. The ESF supports the The causes of the high rate of youth unemployment following: include the following: ♦ courses leading to a vocational qualifi ♦ the Italian system at the time of pro cation combined with degree courses at gramming envisaged compulsory educa a university - two years university linked tion up to the age of 14; it can be to a regional vocational training course; expected that with the reform now in ♦ development of activities of short and discussion in the Italian Parliament the medium duration leading to a vocational age will be raised to 16, thus reducing qualification, promoted in collaboration statistics for youth unemployment; with the regional training system by the ♦ about 140,000 young people, or 23% state vocational training institutes and of those entering the first year of middle the state institutes for technical, agri school (11-14 years), drop out of school cultural, accountancy and art studies; every year to take up work or engage in ♦ development of second level activities some marginal activity without any skills within the vocational training centre or qualification; network in terms of service to local pro ♦ youth unemployment is also rising duction needs; among people who have completed sec ♦ training measures promoted by unions ondary level or third level education. In or other organisations that provide work 1992, 22.3% of the unemployed in opportunities. Italian Objective 1 regions had a sec ondary or third level education. Training for migrants The general objective of Italian policy is to ensure, Since the fifties, there has been a substantial pres especially through initial training, that young peo ence of Italians working in other European countries, ple reach at least the minimum skill standards to especially in Germany, Belgium, The Netherlands obtain a job. and the United Kingdom. These workers have been mainly employed in traditional sectors, such as min Basic training and apprenticeship - ing, steel, and the hotel and restaurant sector. Youthstart To help this significant number of expatriates to inte The Youthstart measure is intended to minimise grate into the local labour market, the Italian Ministry unemployment among people under 20. The target of Labour and the Commission agreed an Operational group is made up mostly of young people who have Programme for the period 1994-1999, with an ESF dropped out of the educational system without hav allocation of ECU 20 million. Beneficiaries of the ing acquired any skills or qualifications. actions are migrants and their families. As well as vocational training, the OP finances courses to pre The Youthstart measure directs them towards: serve the Italian language and culture. ♦ an apprenticeship combined with peri ods of training; Beneficiaries ♦ full time training. Over the period 1994-1999 61,659 people are expected to benefit from this programme. The first is a sandwich course, combining school, training and work, while the full-tim e training activities are designed to be provided in publicly- C. Integration of persons at risk supported vocational training and technical insti tutes. These measures are complemented in both of exclusion from the labour cases by guidance and counselling. The Youthstart market measure has been assigned about 50% of ESF resources directed to combat young unemploy In recent years there has been an increase in social ment in the Centre-North, while in the South the exclusion in Italy. This results from a number of fac corresponding figure is about 20%. tors; the recession which led to the marginalisation of those with inadequate skills, the reduction in public Young people and entrepreneurship spending on social security and assistance schemes There is a special emphasis on encouraging young peo and the increase in the number of immigrants. The ple to create new jobs in the tertiary sector by starting beneficiaries under this heading of ESF aid are immi their own businesses. The preferred sectors are the new grants, travelling people, persons with disabilities, employment areas: social services, audio-visual, recre prisoners, ex-prisoners, drug addicts and older unem ational and cultural activities, the environment. ployed adults at risk of social exclusion. PART 2 CHAPTER Total ESF resources in the programming period D. Promotion of equal allocated to this action amount to ECU 234 mil lion, which represents about 8% of the total ESF opportunities in the labour allocation to Italy. Behind this national average market between men and there is a variation between Centre-North regions - where 10% is directed towards people at risk of women exclusion - and a figure of 6.5% for the Mezzogiorno. The eighties saw a slight increase in the women's share of the labour market in Italy. Nevertheless at The assistance measures, apart from vocational the time of programming the figure was only training, include counselling, guidance, refresher- 34.5% , which was lower than in all other EU coun courses, and other help towards employment and tries, with the exception of Spain and Luxembourg. self-employment. Women's employment is largely concentrated in the commercial sector, hotels, restaurants and the public service. Very few women are self-employed. Preparatory measures In some cases there are structural causes preventing Because of the policy of equal opportunity, all other people from getting into work and normal life. A pri measures envisaged in the Italian ESF plans are mary measure to combat this is the provision of basic open, on an equal footing, to women. There is, addi education in reading and writing the Italian language. tionally, a specific allocation of ECU 180.3 million Home-help measures are also financed, and informa for equality measures which amounts to 5.3% of tion is provided on how to benefit from national Objective 3-type activity in the Mezzogiorno and 8% schemes on health care or other issues like housing. in the Centre-North. This assistance is designed to help women facing particular difficulties in achiev Third sector development ing equality in practice. Except for centres specialised in the training for Equal Opportunity Committee the disabled, which has a long tradition in Italy, there is a shortage of provision for people at risk of The involvement of the Equal Opportunity social exclusion. Committee at the time of programming was a key part of the national strategy to tackle women's As part of a national strategy for the prevention of problems. The National Equal Opportunity social exclusion, a new scheme was therefore intro Committee was involved in analysing previous dif duced to encourage the work of third sector or vol ficulties encountered in the period 1989-1993 untary organisations. The ESF supports projects pro and searching for new and more efficient moted by such organisations, in particular under the responses. The Equal Opportunity Committee also form of social cooperatives defined by Italian law has its own representative on the National 381/91. Projects aided include the management of Monitoring Committee. social services (domestic help desk and social cen tres), and other initiatives in the SME sector. Women - priority groups The CSF for Objective 3 identifies two categories Training of trainers of women particularly in need of assistance. The There is also provision for training activities aimed first is composed of women who try to return to at managers of guidance and training services at work after a long period of voluntary inactivity, regional level, in order to improve their capacity to often connected with family care. For this group, deal with the problems encountered by the users. the ESF assistance focuses on a review of the indi This training includes educational, methodological vidual, her preferences and the professional and technical aspects. resources available. On the basis of this review, an attempt is then made to match with the opportu nities available in the labour market or the appro priate training courses. Some of these courses encourage self-employment. 170 ITALY E. Anticipation of labour mar labour of Anticipation E. Job creation activities in the new employment areas employment new the in activities creation Job for facilities care need children. who young and courses the training of management the and training guidance, towards directed courses training also are There under are they which in jobs in work for women initiatives creation job and counselling training, qualifications, poor with women is second The riig Te S itreto pae a e rl in role key a played intervention ESF The training. Centre-North Objective 3 regions during the period period the during indicated regions 3 Objective sub-priority in resources ESFCentre-North or total the of - priority quarter a About above. protection every to environmental apply activities, cultural recreational and sector, audio-visual the services, local - leg opportunities equal with nec complying for conditions essary the create to aim These employers. Specific existence. insecure an into back in are slipping who areas poorer in living those especially At the time of programming, Italy had not yet yet not had Italy programming, of time the At of processes adequate with intervene and This trends construction. and clothing main textiles, The chemical, 1,000 60%. than about by more decreased with employees companies by employed provide help for women wishing to work or attend attend or work to wishing women for help provide policy opportunity Equal represented. group. this for place in put been have ei mly n sectors ent Employm Newi from them prevent to assistance special of need eeoigte ainl otnigtann policy. training continuing national continuing the to developing relating legislation any developed labour market. There are also services available to to available services also are There market. for labour responsible those targeting as well as islation, Priorities indicated. market where labour retraining anticipate to need the highlighted people of number the eighties, the During In both cases there is an emphasis on preparing preparing on emphasis an is there cases both In 9419 ae agtd n hs sectors. these on targeted are 1994-1999 industries to suffer were mechanical, engineering, engineering, mechanical, were suffer to industries TheItalianObjective 4 plancontains three priorities: worker skills to change to skills worker ket trends and adaptation of adaptation and trends ket Atcpto, lnig spotad man and support planning, Anticipation, ♦ agement of a continuing training system; training continuing a of agement h ‘rdig ln. h betvso hswr o ini to were this of objectives The plan’. ‘bridging the o h sal im sector. firms small the for and SMEs, in training prioritises Mezzogiorno The o e ae ul oeainl n te ou i o be to is focus the and operational fully made be to 1997-1999 period The set to models organisational and methods prepare to activities in investment also was There jobs. their losing of risk serious at workers for schemes guidance period this new During a change. up anticipating of set needs the to and action, re-training the tiate program first the envisagedthat ESF plan Italian The 1994-1997 period The technical to 5% and system assistance. training train vocational continuing at Objective aimed are for resources ESF Centre-North in total 4 of 80% About priorities: the increase to SMEs. in designed workers of courses skills to allocated resources devoted ESF of ) (80% part major A companies. the of awarenessenterprises among creating at aimed 8 o Ojcie rsucs n hs rgos is regions these in resources 4 Objective of 68% ou o SME's on Focus within itself training the of provision the on placed legislation. to was national new bythis of accompanied All be training. continuing of system a up trainers of training the and change anticipate to need to respond to training continuing of system national of implementation the at beaimed would period ming envisagedtwophases: ne Ojcie i te eteNrh ein is region Centre-North the in 4 Objective under is system training continuing the period this During and training financing at ESFdirected was assistance national new the of development the to 15% ing, h Iain S ln o te 9419 period 1994-1999 the for ESFplan Italian The hs ore tpclycnan h following the contain Thesecourses typically Tcncl assistance. Technical ♦ Atvte amd t dpig n sup and adapting at aimed Activities ♦ ♦ the commercial area and marketing marketing and area commercial the quality; total ♦ and product innovation; ♦ technological ♦ ♦ supporting training for flexible flexible for training supporting ♦ h srcua cags n h eco the in changes structural the strategies. eerh pann ad production; and planning research, nomic/production system and the the and system nomic/production of light the in resources human porting rcse ad oiotl nerto of integration horizontal and processes market; single the of impact PART 2 ITALY F. The ESF - an instrument of these regions the proportion of ESF intervention varies greatly; in Liguria total ESF share of Community inter regional development vention under Objective 2 is 30% while in Val D'Aosta this figure is about 2.5%. The human resources compo The preceding section relates to the intervention of the nent of regional SPDs covers a broad range of training in ESF with national policy aims in regard to the fight connection with the development needs of the areas. In against unemployment and social exclusion. This is Tuscany, where tourism development is a regional prior Community-wide in scope and involves only the ESF ity, training is used in connection with the ERDF to among the Structural Funds. encourage the improvement of customer services, in particular reservations and reception services. The ESF also integrates with the other Structural Funds in promoting economic and rural development Boosting human potential in the Field in regions qualifying for special assistance, especially of research, science and technology under the following headings. Employment growth and stability In Italy the share of GDP invested in research and devel opment activities was 1.4% in 1991, compared to an EU average of 2%, while people engaged in RTD made up In the Italian Objective 1 regions, the ESF com less than 0.31% of the total employed. This compared to bines with the ERDF, EAGGF and FIFG to provide 0.93% in France and 1.52% in Germany. The situation the full range of human resources development in the Mezzogiorno was particularly serious where people needed to integrate with the investment in eco engaged in RTD made up less than 0.1%. nomic development provided by the other Funds. The programming phase saw the involvement of Mezzogiorno regional authorities responsible for industry, agri culture, tourism and health with those dealing with Improving physical and human resources in RTD employment and training. The social partners were was, therefore, a major Italian priority at the time central to the planning. The ESF supports actions in of programming, and resulted in a total Structural the Mezzogiorno aimed at providing qualifications Fund allocation of ECU 1,059 million for the for both the employed and unemployed in the prior Mezzogiorno for the period 1994-1999. The ESF ity economic sectors, such as industry, craft, busi contributes ECU 195 million, 7.1% of the total ness, business services, tourism, agricultural ESF allocation in these regions. resources, rural development, the environment, RTD, public health and fisheries. An RTD Multiregional Operational Programme is managed by the Ministry for University and The Objective 1 ESF investment in the Mezzogiorno Technological & Scientific Research. The ESF under the heading ‘employment, growth and stability’ component of this OP is quite substantial, repre amounts to ECU 452.3 million. Each individual region senting nearly a quarter of total EU support. takes into account its specific needs and focuses on Actions here are directed towards the upgrading of the sectors which play a major role in its social and courses in research doctorates, subsidies for economic development. In the case of Sicily, for exam researchers, the training of research centre person ple where tourism is of particular importance, 30% of nel and pilot projects in the field of distance learn ESF resources are assigned to the tourism sector. In ing. Support for training for government research Campania, whose main needs are for the development centres is also included. of industry and services, 37% goes to these sectors and only 12% to tourism. In addition to the multiregional OP, each individ ual region allocates additional resources to RTD In the Mezzogiorno, the ESF generally finances training within the framework of its own regional OPs. aimed at promoting the creation of SMEs, the develop These are generally aimed at promoting third level ment of services to industry and the improvement of tech training, and facilitating the transfer of results of nical and managerial skills in companies in order to RTD from research centres to SMEs. improve their competitiveness. The ESF supports company audits in the tourism sector to identify needs in manage Objective 2 and 5b regions ment training and the improvement of organisational skills. Almost every SPD relating to Objective 2 contains a In the Centre-North regions which are eligible under priority or sub-priority aimed at improving the RTD Objectives 2 and 5b, the ESF integrates with the devel situation. In many cases, the EU co-finances applied opment priorities promoted by the ERDF and EAGGF. In research measures rather than just basic research. EUROPEAN SOCIAL FUND 171 SMEs and Craft University attendance in the Mezzogiorno showed a decline during the period 1980-1990, while at the Another characteristic of Italian programming is same time numbers grew in the North. This trend is the focus on SMEs and the craft sector. partly explained by migration of southern residents to The ESF finances the human resources develop northern universities. ment component of the following measures: Actions aided by the ESF are aimed at improving the ♦ promoting advanced technology in quality of third-level training education, focusing on: SMEs, to improve product quality; ♦ short university courses (two years) ♦ transfer of innovation between research especially those with technical or scien centres, universities and SMEs (for example in Friuli Venezia Giulia, there tific content; are training schemes aimed at providing ♦ specialist training for the personnel of some 40 graduates in scientific sub research centres; jects with specific skills in the transfer ♦ linking research centres to universities. of know-how to link research centres and SMEs); Contributing to development through ♦ the training of researchers in spe the training of public officials cialised research institutes; ♦ the introduction of short term university An efficient public administration is an essential ele diplomas and specialist postgraduate ment for economic and social development. In the courses. Mezzogiorno, 25% of GDP and 21% of total employ ment comes directly from the public sector (compared Objective 5b SPDs have generally little or no RTD with 10% and 12.7% respectively in the Centre-North). component. They focus on the protection of envi The main problem of public administration in the South ronment, development of tourism and SMEs. is one of quality. The ESF aids the improvement of effi ciency in the public sector through the multiregional Strengthening education and training OP for public officials. A sum of ECU 98 million is allo s yste m s cated to the training of public officials in the period 1994-1999. Even if total investment in education and training in the Mezzogiorno is higher than the EU average (6.1% The programme includes the following actions: of GDP against 5.1% EU average) the structural ♦ information on European subjects, weaknesses in the Mezzogiorno have resulted in a training in community policies and lower level of secondary education and training struc Structural Funds; tures. This is true for both the physical structures ♦ guidance aimed at specific problem and the quality of training provided. solving, including assistance in plan In order to remedy this situation, a multiregional ning. This measure is implemented Operational Programme was agreed between the through an exchange of know-how with Italian government and the Commission, granting other administrations in Italy as well as Community support of ECU 254 million for the in other member states; period 1994 to 1999, 85% of which comes from ♦ setting up formal and informal networks ESF. The aim is to improve the quality of training between the administrations of given by publicly-supported technical and profes Objective 1 regions in Italy. sional institutes, directed at pupils leaving compul sory education. Assistance is aimed at updating cur The target of this is the staff of public administrations ricula, and improving guidance and counselling for in the Mezzogiorno, including regional and local author students. They are given guidance and assistance in ities dealing with activities coming with the scope of choosing a professional path. A subsequent phase the Structural Funds. Personnel in the Ministries helps the students to have a training period in the involved in the management of the Structural Funds are sector they have chosen. also beneficiaries under this programme. SECTION 4 Management and follow-up Implementation structures Objective 1 regions Overall responsibility for the ESF programmes is The management of the OPs is carried out at regional assigned to the Italian Ministry of Labour. level in the case of regional OPs and at national level for the multiregional OPs. The ESF component is administered in the regions by the departments for The role oF M inistry of labour training and employment of the regional authorities. At a central level, responsibility lies with the office for The multiregional Operational ESF Programmes for the Vocational Guidance and Training of Workers at the Objective 1 regions are managed centrally by the Ministry of Labour. Ministries responsible for the main subject to which they relate. The multiregional OP for improving educa The Ministry has the following functions: tional and vocational training is managed by the ♦ co-ordinating links between the regions Ministry of Education and the RTD programme is man and the ESF department in Brussels; aged by the Ministry for University and Scientific ♦ providing national co-funding for the Research. ESF programmes; ♦ monitoring how the ESF appropriations The other ESF programmes at multiregional level are are spent (with the help of inspectors managed centrally by the Ministry of Labour. acting at regional level); ♦ managing multiregional programmes; ♦ co-ordinating technical assistance. Other regions The Ministry is assisted by ISFOL (Institute for the In the other regions, the Objective 3 OPs and the development of workers’ training). This is a public Objective 2, 4 and 5b SPDs are managed by the research institute in the field of training and employ regional authorities (Department of Training and ment which operates according to guidelines laid down Employment). National programmes are managed by by the Ministry of Labour. Its role is to provide techni the Ministry of Labour. cal assistance to both the Ministry and the regions, including evaluation activities and providing assis tance in implementing Community Initiatives. M o n ito rin g The social partners, equal opportunity bodies and NGOs are represented on the Monitoring Committee. A Human Resources Co-ordinating Committee was also set up under Objective 1. This brings together all the benefi ciaries of ESF aid to discuss common issues relating to the ESF and the development of human resources. PART 2 174 PART 2 ______ CHAPTER 13 Luxembourg SECTION 1 Economic and labour market situation at the time of programming of Community structural funding for the period 1994-1999 Economic situation Labour market The Luxembourg economy continues to be charac Luxembourg has a small open economy which is in terised by a general rise in employment. This rise, however, conceals a drop in industrial labour, which is economic and monetary union with Belgium in the compensated by rising employment in services, partic ularly the financial sector. This employment situation framework of the Belgo-Luxembourg Economic is partly due to the massive presence of foreign work Union (UEBL). Despite a favourable period in the ers, both residents and frontier workers from adjacent countries who make up about 50% of the labour force. nineties in which recession was averted because of Due to the uncertain nature of this economic environ ment, it is difficult to predict employment trends in strong internal demand, growth dropped to 0.3 % in the long or medium term. The unemployment rate in Luxembourg was 3% in 1993 (frontier workers were 1993 while inflation rose to 4%. Like other countries, not included in these statistics since they are regis tered in their countries of residence). Luxembourg feels the effects of global economic Unemployment in Luxembourg has distinctive fea trends and perturbations: some sectors experienced a tures: Many of the unemployed find a new job after a slow-down in economic growth, while others even relatively short period of time and long-term unem ployment is therefore less than in other European reported negative growth rates. The economy of countries. Youth unemployment is relatively low. There is a higher percentage of women in unemployment Luxembourg still depends mainly on two sectors in than there is in jobs. Women are therefore more affected by unemployment than men. which it is difficult to predict future developments: Luxembourg has institutionalised a tripartite system at the steel industry, mainly represented by the ARBED all levels of political and social life which involves the group, which is currently undergoing a technological Social Partners in important policy-making decisions relating to the fight against unemployment. The instru revolution, and the banking sector which, although it ments developed within this framework have therefore guaranteed an approach based on consensus in continues to expand, has some fragile aspects which employment policy making which was formalised in the National Employment Agreement. The defined have to be taken into account given the fact that it strategy provides for targeted actions tailored to the specific nature of the Luxembourg market by, among provides one third of the national income. other things, applying «micro-solutions» to a series of «micro phenomena* Preference is given to actions geared to enhancing the efficiency of the labour mar ket and aimed at the most vulnerable categories of the unemployed. This global approach was reflected in the programming of ESF actions in Luxembourg. LUXEMBOURG PART 2 HPE 13 CHAPTER Structural Fund programmes in Luxembourg Fund programmesStructural SECTION 2 ERDF 31,6% 18.4% 1994-1999 - FUNDING OF SOURCE AND OBJECTIVE BY ASSISTANCE OF BREAKDOWN ESF il e sd o ofnne rgams o develop for programmes co-finance to used be will Objectives under entire cantons its over certain in 5a also and 4 but 3, territory, Objectives the under only Of this, the ESF contributes ECU 26.9 million, which which million, 26.9 ECU contributes ESF the this, Of the for Luxembourg to allocated aid Fund -Structural Funds Structural all that means This 5b. and 2 and Fund by Allocation A. RADW O ALCTO B FN (xldn Cm nt Initiatives) unity Comm (excluding FUND BY ALLOCATION OF BREAKDOWN s bu 3 % fte oa Srcua Fn allocation. Fund Structural total the of % 32 about is unemployment. against fight the for which and needs million ment 86 ECU to amounts 1994-1999 period RF EGF EF n te IG pl in apply FIFG the and ESF Luxembourg. EAGGF, ERDF, not aid, Fund Structural for eligible is Luxembourg oa 581314 41.2 1.3 17 15.8 26.9 86.2 Total Total eea oa 102 GeneralTotal betv 5 . 2.2 3 15.2 0.8 6 Others 40.1 Adapt 2.3 21 Initiatives Community 9.8 7 5b Objective 16.8 5a. Objective 4 Objective 3 Objective 1999 1997- 1996 1994- 2 Objective mlyet030.3 0.3 Employment Objective oa Srcua FnsEFERDF ESF Funds Structural Total . 0.3 0.3 823 41.7 31 28.2 0.7 2.3 2.8 . 8 1.8 21 6 1 14 14 ECU m illion - prices valid a t tim e o f Decisions f o e tim t a valid prices - illion m ECU EAGGF 0.5 0.5 39 IG I FIFG 1.1 1.1 1.1 EAGGF 48,7% 1.3% FIFG PART 2 CHAPTER 13 LUXEMBOURG BREAKDOWN OF STRUCTURAL FUND ALLOCATION BY OBJECTIVE Objective 5b Objective 5a 47.4% 24.8% Objective 4 2.7% BREAKDOWN OF ESF ALLOCATION BY OBJECTIVE Objective 4 Objective 5b 8 .6% 3% Objective 2 9.7% Objective 3 78.7% Structural Fund aid is divided between 8 programmes: 6 SPDs and 1 CSF (Community Support Framework) comprising 2 Operational Programmes. The Luxembourg authorities and the Commission Operational Programmes for Objective 3, two regional departments opted generally for the Single Programme SPDs (Objectives 2 and 5b) and three horizontal SPDs Document approach to define strategies and set prior under Objective 5a. ities for the programming and financial planning of actions co-financed by the Structural Funds. The ESF is involved in all of these programmes, with the exception of the three SPDs under Objective 5a, The CSF approach was applied only to Objective 3 that is to say in five programmes. actions which will be carried out through two Operational Programmes. Community Initiatives are programmed within the framework of the two Operational Programmes, The Luxembourg authorities established the priorities Employment and Adapt, and eleven Operational for the implementation of the four Objectives. This Programmes for regional initiatives. The ESF is involved a horizontal SPD for Objective 4, two involved in five of the latter programmes. EUROPEAN SOCIAL FUND 177 178 LUXEMBOURG PART 2 CHAPTER 13 The ESF is the only Structural Fund operating under under operating Fund Structural only the is ESF The B. Main features of ESF of features Main B. betvs ad , ne wih t otiue ECU contributes it which under 4, and 3 Objectives 23.3 million. About 90% of this allocation is for for is allocation this 4. of Objective for is 90% balance the and About 3 Objective million. 23.3 ESF e - th 4 ly n o and 3 g in s lv o v ctive in je b O e id -w U E which is more than 78 % of the total ESF allocation to to allocation ESF total the of % 78 than more is which 1994-1999 period the covers 3 Objective for CSF The areas, corresponding to the four strategic aims of the the of aims strategic four the to corresponding areas, million 21 ECU to amounts support Community and roiy 1 Priority roiy 2 Priority 3: Objective under ESF priority five on concentrated is CSF The Luxembourg. roiy 4 Priority 3 Priority unemployed and personsover thethreatenedage 25 of ECU 3.2 million ECU 3.2 million unemployment.long-term ECU with 5.2 long-term the of market labour the into Integration at horizontal level. ECU 1.2 million ECU horizontallevel. 1.2 at 5 Priority rmto feulopruiis ECU million Promotion equal1opportunities.of the from exclusion of million labour ECU market. 10.4 risk at people of Integration labourmarket.theIntegration of young peopleinto Support for training and integration structures workingstructuresintegrationand training for Support component in the Structural the in component ud programmes Fund facilitating the integration into working working into integration the facilitating BETV 3 OBJECTIVE exposed to exclusion from the labour labour the from exclusion to exposed and unemployment long-term Combating market; promoting equality of opportunity of equality promoting market; persons of and people young of life These priorities reflect the strategy developed by the the by developed strategy the reflect priorities These h atos ecie udrte S pirte r car are priorities CSF the under described actions The and 1993 job-seekers young July in include passed to law scope A its market. extended the labour of the integration from vocational are and Fund social Employment the at the of aimed provisions The creation. nopse al h atos aae b pbi bod these public of by first managed The actions the funded. all equally encompasses almost are which in established was which Fund' Employment ‘ the 1993 Regulations on combating social exclusion; it it exclusion; social combating on Regulations 1993 the the for -actions 4 Priority and 88% allocation), (about OP’s market the labour integration of the the from for excluded actions people 3 of Priority OP of mainly and second operators The consists sector 5. private by Priority managed actions under covers actions support and Programmes Operational two of form the in out ried exclusion of risk at people and unemployed long-term job to training of forms various pol active an linking to implement geared to icy 1989 May in Luxembourg the vocational integration of persons with disabilities. disabilities. with persons of integration vocational the unemployed people over the age of fifty. of age the over people unemployed eoe seii pirt o qa opportunities. equal to priority specific a devote that noting worth is It opportunities. equal of promotion 3, Priority under implementing actions the at of some 2, aimed and 1 actions Priorities all include These ies. has allocated more than 49 % of its ESF allocation for for allocation ESF its of % 49 than more allocated has in emphasis new the of use full made has Luxembourg In addition, the government of Luxembourg decided to to decided Luxembourg of government the addition, In Y ROIY OJCIE 3 OBJECTIVE - PRIORITY BY FUNDING ESF OF BREAKDOWN 25% 6 5% 5% 1 Priority r m Priority 5 Priority Priority 4 Priority % ______CHAPTER 13 LUXEMBOURG Key points - Objective 3 ♦ almost 50% of resources are to facilitate the vocational integration of people at risk of exclusion from the labour market, particularly persons with disabilities ♦ measures aimed at tackling the structural aspects of unemployment by developing two consecutive actions: training, in the broad sense, and job placement ♦ pathways to integration approach OBJECTIVE 4 Facilitating the adaptation of workers to changes in production systems The original ESF allocation to the Objective 4 SPD, special support needed to be given to small which was adopted in December 1994 for a period of firms which, faced with the problems of two years, was ECU 895.000. This decision was day-to-day survival in a period of recession, amended in September 1996 to extend the SPD to the could neither find the time nor the finan end of 1999, increasing the ESF allocation to ECU 2.3 cial resources to train their employees; million, which represents almost 9% of the total ESF finally, on a more general level, allocation to Luxembourg. Luxembourg had been trailing consider ably in the field of continuing training. In developing Its strategy to optimise the new opportu nities offered by Objective 4, the Grand Duchy took the The Objective 4 SPD for Luxembourg therefore following factors into account: adopted a strategy aimed at: ♦ recent studies and surveys had high ♦ bridging qualification gaps by bringing lighted a concrete need for better skilled- them into line with actual labour market labour, particularly among foreign workers requirements; who, in March 1993, made up about 51 ♦ developing measures to promote train % of the total labour force in Luxembourg; ing, particularly for SMEs, but also for ♦ the crafts sector, which comprises 150 the large steel sector - an industry different skills and employs the most peo undergoing fundamental change with a ple (25% of the working population), had high number of low-skilled workers. A been undergoing fundamental changes to structure was set up to anticipate the which workers needed to adapt; effects of these changes. EUROPEAN SOCIAL FUND 179 The programme is focused on four priorities: Two bodies have been entrusted with the implementa tion of this strategy: The National Institute For The Priority 1 Development Of Continuing Training (INPC) and the Anticipation of labour market trends and future skill Chambre des Metiers (Crafts Guild). requirements ECU 0.26 million. The INPC will focus its efforts on anticipation (Priority Priority 2 1), as well as on enhancing and developing training Vocational training , upgrading of skills, counselling systems (Priority 3). The Crafts Guild will work in par and guidance ECU 1.24 million. allel with the INPC in the field of anticipation, (Priority 1) and the development of training systems (Priority 3) Priority 3 and on its own in matters concerning training, upgrad Aid for enhancing and developing appropriate training ing of skills, counselling and guidance (Priority 2), as systems ECU 0.24 million. well as horizontal actions such as on-going technical assistance, information and publicity, evaluation and Priority 4 follow-up (Priority 4). Horizontal actions within the SPD in general ECU 0.26 million. BREAKDOWN OF ESF FUNDING ley points - Objective 4_____ BY PRIORITY OBJECTIVE 4 ♦ creation of an anticipation structure in the form of a national Priority 4 Priority 1 round table, involving all actors in the field of continuing training ♦ priority for training and upgrading actions given to schemes devel oped within the framework of anticipation and targeted at workers in SMEs with a focus on two main areas: the introduction of new systems of production and management development ♦ emphasis on the training of instruc tors to provide in-firm training. PART 2 CHAPTER Regional Objectives In which the ESF integrates with other Structural Funds A considerable part of Luxembourg qualifies under the ' regional Objectives. About 42.5% of the population situated in about 45 % of the territory, is eligible for aid under Objectives 2 and 5b, in addition to being covered by Objectives 3 and 4. The strategy adopted for the SPD is aimed at supporting national efforts to avoid an over-concentration of eco OBJECTIVE 2 nomic activity and employment in the tertiary sector in a single region, which would gradually beat risk of becom Converting the regions seriously affected ing a dormitory zone. There is also a need to diversify by industrial decline away from some of the old industrial structures in the area to make way for new economic activities. The SPD focuses on four priorities: The area which qualified under Objective 2 at the time ♦ support for the industrial sector; of programming included the entire canton of Esch-sur- ♦ support for other sectors; Alzette, which includes 14 boroughs, and five boroughs ♦ environmental protection; in the southern part of the canton of Capellen ♦ technical assistance. (Bascharage, Clemency, Dippach, Garnich and Mamer). The zone borders, in the west, the Objective 2 The ESF supports actions aimed at industry and other sec areas of Aubange (Belgium) and, in the south, the tors, with the exception of agriculture (Priority 1 and 2). Objective 2 regions of north Lorraine (France). Although the Objective 2 regions of Luxembourg only amount to 13.2 % of the total area of the country, 34.6% of the population lives there, resulting in a pop ulation density which is considerably higher than the Key points - Objectiue 2 national average (389 people per km2 compared to 147). Most of the steel industry is concentrated in this ♦ priority is given to actions in area, where mining traditions go back a long time. This favour of SMEs and workers who area has therefore been directly hit by the succession of steel crises and the ongoing restructuring of the iron have either recently lost their jobs and steel industry. In an effort to offset the imbalances or are at risk of unemployment caused by the traditional dependence of the region on ♦ giving continuing training a the steel industry, the government of Luxembourg is strategic place in enterprises developing a diversification policy which also recog ♦ guaranteeing the right of all nises the importance of other branches of industry. employees to training The basic Structural Fund aid allocated to Luxembourg ♦ offer high quality training tailored for the current period is ECU 16.8 million, of which the to specific needs ESF contributes ECU 2.8 million, or 17.1% of the total. 182 LUXEMBOURG ■ □ □ ■ betv 5b Objective 4 Objective 3 Objective 2 Objective P A R CHAPTER 13 LUXEMBOURG Human Resources component of OBJECTIVE 5b Community Initiatives in Luxembourg The four strands of the Employment Initiative - NOW, The development and structural adjust HORIZON, INTEGRA and YOUTHSTART - provide an ment of rural areas allocation of ECU 0.3 million to Luxembourg to foster best practice in the field of human resources develop ment through innovation, local partnership and transnational co-operation. The regions eligible under Objective 5b were considerably Under the Adapt Initiative, the ESF allocates ECU 0.3 extended for the period 1994-1999. Mainly situated in million for the co-financing of innovative transnational the north of the country, this territory covers 32.7 % of projects for employees at risk of unemployment due to the country but only 7.9% of the population, due to the industrial and technological change. There is an very low population density (36 inhabitants per km2). emphasis on firms employing less than 50 workers and The area comprises the cantons of Clervaux, Vianden and on the use of information technology. Wiltz and the boroughs of Beckerich, Ell, Rambrouch, Redange and Wahl and the canton of Redange. In addition, the ESF contributes amounts, totalling This area is characterised, on one hand, by develop ECU 0,7 million, through the other Community ment generally based on agriculture, tourism, and Initiatives; Interreg, Konver, Leader, Resider and small craft enterprises and, on the other, by the con Urban. siderable distances between the workers’ homes and places of work, a problem which has led to a marked exodus from rural areas. The SPD is aimed at supporting national efforts to maintain the economic autonomy of the area, providing environmental protection, safeguarding natural resources and improving living conditions. It is there fore focused on the following three priorities: Priority 1 Revitalising the agricultural and forestry sectors within a framework of environmental protection Priority 2 Creating and sustaining stable employment in the sec ondary and tertiary sectors Priority 3 Investments in tourism and enhancing quality of life The contributions of the ERDF, EAGGF and ESF total ECU 6 million. The ESF supports the first two priorities with an allocation of ECU 0.8 million, representing 13.3 % of total aid. Key points - Objective 5b______ ♦ promotes greater stability for people in precarious jobs and helps job seekers by developing training tailored to the specific needs of the local labour market. ♦ fosters close links between the ESF and research and development actions in forestry EUROPEAN SOCIAL FUND 183 Programme content and ESF policy aims A. Vocational integration of registered at the Employment Office for more than a year, and people over the age of fifty who people threatened with have been seeking employment for longer than a month. They involve a form of subsidy whereby long-term unemployment the Employment Fund reimburses the social secu rity and other costs incurred by employers in the Although Luxembourg still enjoys a relatively low private sector. The subsidy is of a limited dura unemployment rate (3 % in 1993), the country tion, related to the age of the person being rapidly needs to counteract a rising trend in long employed, and improves the cost/productivity term unemployment. ESF aid is therefore focused ratio so as to counter employers' hesitations on on supporting national initiatives which address financial grounds in recruiting workers of a cer this problem, through two types of actions which tain age and the long-term unemployed. form part of a continuum, ranging from training to job placement. B. Vocational integration These actions are aimed at specific target groups such as: of young people ♦ the long-term unemployed over the age of 25, including beneficiaries of Although there has been a substantial drop in youth Minimum Guaranteed Income (RMG); unemployment, Luxembourg still devotes one of its ♦ people who have been out of work for a priorities to assisting young job-seekers and com shorter period but are nevertheless at bating youth unemployment with the aim of devel risk of long-term unemployment because oping, with the support of the ESF, a preventive their skill levels do not meet labour approach through active employment policy to avoid maket requirements, particularly people young people sliding into long-term unemployment. over the age of 50; ♦ people who need to upgrade their skill The actions are carried out by public bodies and are levels after long periods out of work. geared to facilitate the integration of young people into the labour market through pathways to integra General training measures tion. The actions which have been developed are These actions are implemented by the vocational quite similar to those for the long-term unem training service of the national Ministry for ployed. Enterprises are involved in the training Education and follow a pathway to integration process to ensure it is targeted to the specific train approach. This allows for individual planning to ing requirements of the following fields: sales and help unemployed people find the integrated solu marketing, supermarket jobs, electrical-installation tions best suited to their situation and needs. skills, spray-gun painting, and the protection of the natural environment. Pathways to integration therefore include actions tai lored to specific training needs: such as counselling and assistance, preparatory training schemes, train C. Integration of people at risk ing in restaurant and catering, home assistance, of exclusion from the labour socially useful services, crafts (carpentry, masonry decoration and welding), the environment, office market work, retailing and in-firm training. Support is given at the same time to existing training structures, espe Luxembourg has chosen to focus most of its actions cially for the training of instructors in continuing supported by the ESF on integrating people exposed training centres. Finally, the issue by training centres to exclusion from the labour market. In fact, almost of national certificates is currently being considered, 50% of the financial aid available under Objective 3 so as to promote the recognition of these forms of is used to implement a concrete strategy for this training by potential employers. group of people. Luxembourg concentrates most of its efforts on facilitating the integration of people Job placement measures with physical, mental or psychological disabilities, These measures are mainly aimed at the long since these categories have very low labour force term unemployed over the age of thirty who are participation rates in the labour market. CHAPTER 13 Actions are developed in specialised centres and Luxembourg also allocates 5% of the ESF to mea are managed by private foundations. The model fol sures specifically designed for women. Female lowed is the pathway to integration approach but it unemployment has risen significantly more than has been adapted and strengthened in certain male unemployment over the past few years, and aspects. Phases involving individual attention are Luxembourg has been keen to support schemes to longer and more intensive. help women reintegrate on the labour market after a period of absence, and to fill any skill gaps which The following wide range of actions has been devel may be preventing women from finding jobs. These oped to deal with the specific integration problems measures are implemented by the Centre for of persons with disabilities: Women, Families and Single Parent Families ♦ training programmes tailored to the needs (Centre de formation pour Femmes, Families and of persons with disabilities and leading to Families Monoparentales - CFFM) and are aimed at a State-recognised qualification; facilitating the integration of women by promoting: ♦ job-placement in workshops; ♦ counselling and information seminars, as ♦ in-firm training for trial periods to pro well as strategies to develop assertiveness; mote access to the open labour market; ♦ courses for the textiles sector involving ♦ developing a system to evaluate individ on-the-job training; ual potential and to plot a course leading ♦ training in new technology - particularly gradually from a protected to an open for women starting their own enterprises; working environment. ♦ reconciling professional and family life by, among other things, developing These actions, which are specifically aimed at peo childcare professions which are cur ple with disabilities, are complemented by other rently in short supply. actions to ensure their effectiveness: ♦ the development of new forms of training and employment in line with the capac E. Anticipation of labour market ity of the person with the disability; trends and adaptation of ♦ the creation of new employment struc tures (such as cooperatives) to employ worker skills to change people who are not yet ready to enter the open labour market; The new Objective 4 guidelines led Luxembourg to ♦ new employment services to assist peo set up a structure to forecast the effects of changes ple with disabilities in their search for in production systems, consisting of a broadly-based employment in an open environment pro partnership and conceived as a national round table. viding individual support and follow-up; This structure comprises continuing training organi ♦ the continuing training of specialised sations, the relevant ministries and job placement trainers, especially technical instructors, and other support services. Forecasting is conducted to provide high-level training in line with by the INPC and the Crafts Guild. The principal labour market requirements. objective of the INPC is to provide general forecasts to help enterprises adapt to change and provide them Finally, Luxembourg has decided to conduct an with the necessary tools to evaluate human capital awareness-raising campaign among employers pro competences in a comparable manner. viding information on disabilities, their effect on productivity and ways of overcoming possible lim i The aim of the action is to produce a document tations. describing and classifying the evaluation methods and tools used including, technical explanations and detailed descriptions of each tool. The INPC D. Promotion of equal avails of ESF support to analyse and determine the needs of the steel industry in continuing training so opportunities in the labour as to plan, carry out and develop suitable forms of market between men and training for instructors. The Crafts Guild, on the other hand, focuses most of its attention on spe women cialised studies to enhance existing apprenticeship systems and to analyse the impact on the labour Although women are obviously included in all of market of new approaches and technology in the these areas of Community intervention, fields of the environment, health and hygiene J ■ ■ ■ 186 LUXEMBOURG HPE 13 CHAPTER PART 2 schemes are involved (optimisation of human human of (optimisation involved are schemes of levels heads various the the and at managers, directed is enterprises, of changes, approach horizontal technological This standards, quality SMEs of tion, employees of adaptation the facilitating facilitate to up-grading skill and Training with each other and their instructors when the the when instructors contact their to ended. in has and stay place course to other in each is training in with system’ organised participants are ‘follow-up enable days’ special a ‘manager and Special finance). methods. management and production new competi new and to sector crafts the in workers and systems production h aatto o wres o hne in changes to workers of adaptation the resources, com m unication, management and and management unication, m com resources, High- sector. crafts the in SMEs of management at aimed measures Guild training of Crafts series the a approach, promotes horizontal a Following level comprehensive management training training management comprehensive level tors, such as the use of new materials, building and building materials, new of use the as such tors, of upgrading and training include actions Vertical tems, the in-firm training of instructors, training training the by run instructors, training of special and ARBED, sys training for trainers training in-firm improving the for tems, provision also is There is actions of choice The area. skills or activity of urn o ftr cags n eti jb ad sec and jobs certain in changes fashion, future or sector, current food in the qualifications crafts, no as: or such little sectors with workers for skills Crafts Guild to train apprentices and managers of of managers and training. apprentices continuing train to Guild Crafts enter the by identified needs the by determined rss n cmuiae t te rfs Guild. Crafts the to communicated and prises field specific a to relation in methods, management building and housing. Actions are aimed at charting charting at aimed are Actions housing. and building SECTION 4 Management and follow-up Responsibility at national level The Monitoring Committees The Ministry for Labour is responsible for the imple The monitoring committees for Objectives 3 and 4 were mentation of the ESF. integrated in the interests of greater coherence of the various actions and their management. The ESF is managed by the ESF Mission which main tains liaison with the European Commission and com The Committee for Objective 3 is made up of the usual prises two people. The Ministry for Labour regularly representation: employers, trade unions, representa works in cooperation with the other Ministries con tives from the Ministries of Labour, Education, the cerned such as the Ministries for the Economy and Economy, and also the Ministry for the Family; job Education and, increasingly, with the Ministry for the search, placement and assistance services - and repre Family. The Ministry of Labour always works in part sentatives from foundations. The committee therefore nership with training organisations such as the INPC involves actors from all the CSF priority areas. and the AECF (Administration Emploi Centre forma tion). Partnerships have been broadened to work at The social partners are also well represented in the cor both individual action and CSF level. responding arrangements for Objective 4. The service dealing with placement, job search and assistance, has a particularly important role to play since it is involved with all the actors operating within the framework of Objective 3 and can act as an interface between this Objective and Objective 4. The Monitoring Committees also have the right to call upon external experts when needed. PART 2 H NETHERLANDS THE The Netherlands SECTION 1 Economic and labour market situation at the time of programming of Community structural funding for the period 1994-1999 Economic situation a trend in the Dutch economy which causes concern. This low level is partly due to the substantial number of GDP has been steadily rising in the Netherlands women involved in unpaid labour, but above all to the large numbers of work since 1983, even through the 1993 recession, when ers who went on invalidity pensions in the eighties. it was around the EU average. GDP growth in rela tion to working population, however, had been one Although unemployment rates in the Netherlands were still below the Community average, the situa of the weakest in the European Union, increasing tion on the labour market has been markedly deteri orating since 1992, as the supply of labour steadily only 1.2% between 1988 and 1993. increases while demand continues to stagnate. As is the case of Belgium and Ireland, the Dutch The increase in the supply of labour over the past ten years can be attributed to the growing number of economy is particularly dependent on foreign trade. women on the labour market, the return to work of a In 1993, exports amounted to 45% of GDP. Two large number of workers who are no longer consid ered unfit for work, and a rise in the number of thirds of the foreign trade of the Netherlands is with young people on the labour market. other Member States. Some 750,000 jobs were created over the past ten years but the number of new arrivals on the market still outweighs the number of jobs available. The trend in long-term unemployment highlights the Labour market fragility of the Dutch labour market. The long-term unemployed make up 52% of all unemployed and The Dutch labour market has three main features: most often are in the 45-65 age group. This is the ♦ around 72% of the working population is highest percentage in the European Union. Low- in the tertiary sector with only 24% in skilled workers are most affected by long-term the secondary sector. The Netherlands unemployment. therefore has the highest ‘tertiary’ and lowest ‘secondary’ employment rates in The unemployment rate is higher among women and the European Union; young people. Despite the growing participation of ♦ the importance of part-time employ women in the labour market, female unemployment ment is another basic feature of the is still high and reached 10.5% in 1993 (compared Dutch labour market. Part-time to 5.4% for males), while youth unemployment employment is widespread, involving reached 9%. one in every three workers, as opposed to the EU average of one in seven. This phenomenon is due to the The Netherlands, which is still one of the most pros increase in the number of women on perous members of the European Union, opted to avail the labour market and the predomi of European Social Fund support to confront its diffi nance of part-time employment in the culties on the labour market by concentrating ESF services sectors; actions on specific areas, especially for groups at risk ♦ the low level of participation in the of exclusion, such as the long-term unemployed, labour market which amounted to only women, youths under the age of 25, minorities and 60% of the active population in 1994, persons with disabilities or health problems. EUROPEAN SOCIAL FUND 189 THE NETHERLANDS 2 T R A P CHAPTER 14 SECTION 2 tutrl ud rgamsi h Netherlands Fundinthe programmes Structural The Netherlands qualifies for Structural Fund aid aid Fund Structural for qualifies Netherlands The TotalI A. Allocation by Fund and Fund by Allocation A. hs en ta al f h Srcua Fns ERDF, - Regional Funds the Structural the 5a. under of Objective all horizontal that fall and means 5b, This and which 2, 1, regions Objectives for also RADW O ASSAC B OJCIE N SUC O FNIG 1994-1999 FUNDING OF SOURCE AND OBJECTIVE BY ASSISTANCE OF BREAKDOWN under Objectives 3 and 4 over its entire territory but but territory entire its over 4 and 3 Objectives under S, AG ad IG pl i te Netherlands. the in apply FIFG and EAGGFESF, RADW O ALCTO B FN (xldn Cmmuiy ntatives) Initia unity m Com (excluding FUND BY ALLOCATION OF BREAKDOWN 27% 8 ERDF EAGGF betv 1 Objective Community Initiatives Total betv 3 Objective 2 Objective betv 4 Objective betv 5b Objective Fish 5a Objective Agric. 5a Objective Adapt 94 1996 - 1994 97 1999 - 1997 Others 6 | .6% TotalGeneral Employment Objective ______oa Srcua Funds Structural Total i 2542.2 330.2 2212 2662.6 62.6 69.6 4 150 80 442 224 666 923 151 151 118 5 156 156 198 47 ▼ 1506.3 3. 181.3 139.3 37598 1367 69.6 S ERDF ESF 923 436 230 7.1 080 40 18 The Structural Fund aid allocation to the Netherlands Netherlands the to allocation aid Fund Structural The h Ntelnstruh h Cmuiy Initiatives. to allocated Community is the - ESF through the from Netherlands the million 139 ECU which of Netherlands. % the 61 to to amounts ESF allocation The which total the billion. billion 1.3 2.2 ECU ECU is contributes 1994-1999 period the for n diinl C 30 ilo assac - u of out - assistance million 330 ECU additional An 7. 194.8 779.3 292 144 __ 251 82 ECU m illion - prices valid at tim e o f Decisions f o e tim at valid prices - illion m ECU ______ESF AG FF 1 FIFG EAGGF 118 9 56 191 3.8 2 9 22 61.8% 2 .6% 61.8 5.8 47 H NETHERLANDS THE BREAKDOWN OF STRUCTURAL FUND ALLOCATION BY OBJECTIVE Objective 5b Objective 5a 41.8% BREAKDOWN OF ESF ALLOCATION BY OBJECTIVE Objective 5b Objective 4 1.3% 11.4% Objective 1 16.8% Objective 3 67.6% B. Main features of the ESF component in the Structural Fund programmes Some 80% of the ESF allocation is for actions under Objectives 3 and 4. The ESF contribution represents r OBJECTIVE 3 about 26.4% of total Structural allocation to Objective 1, 34 % to Objective 2, and 12% for actions under Combating long-term unemployment and Objective 5b. facilitating the integration into working life of young people and of persons exposed to exclusion from the labour EU-wide Objectives 3 and 4 market; promoting equality of opportunity involving only the ESF The SPD for Objective 3 was adopted by the Commission on 17 August 1994. The ESF contributes The ESF, the only fund to provide aid under Objectives ECU 923 million to the Netherlands under Objective 3 and 4, contributed ECU 1.1 billion of which the 3, most of which is concentrated on actions for the Netherlands allocated 85.5% to Objective 3 and vocational rehabilitation of the long-term unemployed 14.5% to Objective 4. and people at risk of exclusion from the labour market. EUROPEAN SOCIAL FUND 191 192 THE NETHERLANDS 30% ahast integration to Pathways Placement 13% BETV 3 OBJECTIVE BREAKDOWN OF ESF FUNDING BY PRIORITY PRIORITY BY FUNDING ESF OF BREAKDOWN the only Member State to have chosen this approach. approach. this to chosen have to pathways State and Member only illion) the m 120 (ECU placement job carried action of these type the achieve of to terms in established defined were aims, priorities Three 4tpirt (C 4 million). 46 (ECU thpriority 4 a million), 480 are (ECU they whom training to are: groups These target the addressed. than rather out Support for technical assistance is provided for under under for provided is assistance technical for Support nerto (C 27 lin. h Ntelns is Netherlands The illion). m 277 (ECU integration Theto: is aim ♦ promote pathways to employment for for employment to pathways promote ♦ eue h dpnec o te unem the of dependence the reduce ♦ women, persons with disabilities, ethnic ethnic disabilities, unem with persons women, long-term the are: groups get u o school; of out minorities and young people who drop drop who people young and 45-65, of minorities ages the between ployed tar main The qualifications. no or with persons little particularly the from market, exclusion labour of risk at individuals lyd n oil eeis (unemploy benefits social on ployed ment and disability) by facilitating their their facilitating by disability) and ment integration or reintegration into the the into reintegration market. labour or integration ehia Assistance Technical Training encompasses preparatory training, initial initial includes also It proper. training, training vocational preparatory and training encompasses Training educational establishments with individual follow-up follow-up individual with establishments educational of socially excluded groups on the labour market. market. labour the on groups integrated reintegration excluded the an socially of facilitate hand, to using other conceived the on specifically market, are integration, to labour Pathways approach. the to geared from is sion placement Job guidance. personal and taged target groups. The Community aid under under aid Community The groups. target taged rmtn epomn aoggop a rs o exclu of risk at groups among employment promoting or enterprises of types various in traineeships practical rm h lbu mre i te Netherlands. the in market labour the from actionsaimedat: rm cin oiacd yte S udrOjcie 3 Objective under ESF the by cofinanced actions from of integration for social categories at risk of exclusion exclusion of risk at categories social for integration of employ Dutch supports directly therefore 3, Objective during the period 1994-1999, of whom 110,000 will will 110,000 whom of 1994-1999, period the during et oiy n sol hl t cet a rae level greater a create to help should and policy ment disadvan most the on concentrated are resources ESF eun ote aor market. labour the to return s rie ia fic e n e B hs pirte ae mlmne truh specific through implemented are priorities These undergo training; the ultimate aim is to facilitate their their facilitate to is aim ultimate the training; undergo benefit to expected are people 167,000 than More e poi s - ecie 3 ctive je b O - ts in o p Key ♦ raising the basic education and skill skill and education basic the raising ♦ ♦ promoting the vocational integration of of integration vocational the promoting of ♦ integration vocational the facilitating opportu ♦ employment new into tapping ♦ on people; young people with various degrees of disability. of degrees various with people nities; unemployed; the of levels a Objectives tal horizon the under granted aid the 3 Objective to training 68% of the ESF budget is allocated allocated ESF is the budget of 68% cin iacd yte ESFthe by financed actions betv 3 ersns 55 of 85.5% represents 3 Objective Regional Employment Office Employment Regional to actions of decentralisation rather than target groups target than rather action of kinds to relate priorities 110.000 people will benefit from benefit will people 110.000 167.000 people will benefit from benefit will people 167.000 H NETHERLANDS THE BREAKDOWN OF ESF FUNDING BY PRIORITY - OBJECTIVE 4 OBJECTIVE 4 priority 4 Facilitating the adaptation of workers to changes in production systems The SPD relating to Objective 4 for 1994-1999 was approved on 14 December 1994, providing aid amount ing to ECU 156.2 million. The Netherlands have been lagging behind to a certain extent in the field of contin uing training which has a key role to play in employ ment, and it has become one of the priorities of the Dutch government to facilitate the adaptation of workers Beneficiaries to changes in production systems. Access to training is still unsatisfactory for certain categories of workers, par The funds available under Objective 4 are not suffi ticularly those with low skill levels and employees of cient to finance the training of the entire target group. small and medium enterprises. This is mainly due to a Nevertheless, it was estimated that there would be certain reluctance of both employers and employees to more than 100,000 beneficiaries from this aid in the participate in the training on offer, gaps in the training period 1994-1999. Some 41,000 people, 25,000 of system, which is not always tailored to the specific whom come from the SME sector, are expected to ben needs of workers faced with changes in production, and efit from training in 1996, thanks to the contribution the financial constraints of certain enterprises. of the ESF under this Objective. In conformity with sectoral collective agreements, enter prises and the Social Partners share responsibility for the Key points - Objective U______continuing training of workers in the Netherlands. Nevertheless, many measures to encourage continuing train ♦ almost 12 % of ESF aid to the ing have also been taken by the public authority; government programmes, however, are often limited in scope and are not Netherlands always geared to the target groups mentioned above. ♦ 100,000 people expected to bene fit from training ESF action under Objective 4 is therefore geared to ♦ aimed at increasing the interest of increasing the effectiveness of the continuing training employers and employees in train system by facilitating access, particularly for employ ees at risk of unemployment (SMEs, low-skilled work ing ers, workers under fixed-term contracts). Special ♦ early identification of skill gaps for emphasis is placed on SMEs lacking the financial those most threatened with redun resources to invest in the training of their staff. dancy ♦ encourage participation of workers The following priorities were adopted for the implemen tation of the general objectives of the Dutch programme: rarely involved in training ♦ promote in-firm training for vulner priority 1 able workers Promote awareness of the importance of continuing training, and the inclusion in business culture of the need to forecast the future training needs of people in employment. ECU 29.1 million It is worth noting that, in spite of its limited scope, the priority 2 ESF contribution to the Netherlands under Objective 4 Readjust available training to needs. ECU 13 million is particularly useful since it has led to both quantitative and qualitative improvements in government policy. priority 3 In fact it is quite likely that this innovative approach Implement training programmes for workers at risk of under Objective 4 is making the industrial sector more unemployment due to changes in production systems aware of its responsibility in the organisation and man in order to help them keep their jobs. ECU 92.6 million agement of continuing education, particularly for work ers at risk of unemployment because of changes in priority 4 production systems. Technical assistance. ECU 21.4 million EUROPEAN SOCIAL FUND 193 THE NETHERLANDS PART 2 CHAPTER 14 About 24% of the Dutch population comes under under comes Objectives. these to goes population allocation ESF Dutch the the of 24% About regional Objectives 1, 2 and 5b and more than 20% of of 20% than more and 5b and 2 1, Objectives regional Funds Structural other with integrates ESF the which in - Objectives Regional fied under Objective 1 for the first time during the the during time first the for quali 1 inhabitants) Objective under (255,000 fied Flevoland of region The ny uc rgo t b icue udr betv 1. June 29 on Objective under Commission the by included adopted was be SPD The to region Dutch only 78% that of the Community average, Flevoland is the the is Flevoland average, Community the of that 78% tutrl ud a a whole. a as Funds Structural is which head per GDP a With 1994-1999. period million out of a total of ECU 151 million from the the from million 151 ECU of total a 40 ECU of to out amounts million contribution ESF The population. resourcesFlevolandinisat: aimed 1994. This Objective relates to 1.4% of the Dutch Dutch the of 1.4% to relates Objective This 1994. developmentpriorities: The strategy adopted for the development of human development of the for The adopted strategy TheEuropean SocialFundfollowingtheto contributes e poi s - ecie 1 ctive je b O - ts in o p Key ♦ helping local enterprises to enhance enhance to enterprises local helping ♦ by region the in prospects job improving ♦ iig nepie ta cet jb in jobs create that enterprises region Aiding the of value ♦ added the enhancing ♦ tcncl assistance technical ♦ resources human ♦ tourism ♦ support industrial ♦ ♦ great effort made to develop train develop madeto effort great ♦ to ESF of allocation 3% represents ♦ amt riete vrg GDP average the to raise to aim ♦ BETV 1 BETV 2 OBJECTIVE r 1 OBJECTIVE ein b idsra decline industrial by regions Development of the least prosperous Converting the regions seriously affected seriously regions the Converting prosperous least the of Development their competitiveness, through staff staff through competitiveness, their h Feoad region Flevoland the technology new in particularly training, dniyn lbu mre demands market labour identifying 85% of the Community average Community the of 85% needs 1 Objective ing and bring it in line with market market with line in it bring and ing EU million) 1(ECU million) (ECU 27.1 million) (ECU 0.9 million) 10.1 (ECU for 1994-1996 and ECU 150 million for 1997- 1997- for million 150 ECU and million 80 1994-1996 (ECU ESF the from for million 230 ECU of under tion qualified regions Dutch three only Whereas covered are: Twente, Groningen-Drenthe, Zuid Zuid Groningen-Drenthe, Twente, are: covered Objective 2 for the period 1988-1993, five regions regions five 1988-1993, period the for 2 Objective Objective 2 concerns more than 17% of the Dutch Dutch the of 17% than more concerns 2 Objective o qaiyfr 9419 ad eev a oa alloca total a receive and 1994-1999 for qualify now under this Objective (ECU 666 million). The regions regions The million). 666 (ECU Objective this under Limburg, Arnhem-Nijmegen, and Zuidoost-Brabant. Zuidoost-Brabant. population. and Arnhem-Nijmegen, Limburg, BETV 2 REGION 2 OBJECTIVE BREAKDOWN OF ESF FUNDING FUNDING ESF OF BREAKDOWN aid Structural Community of 34,5% is which 1999), The strategy adopted in the two series of SPDs (five for (five SPDs of series two the in adopted strategy The f e ehooys a ognrt employment. generate to as so technology new supporting of economy, on regional the founded diversifying re-conversion sector, and growth stimulating research and development, boosting SMEs, the tourism tourism the SMEs, boosting development, and research oa jbcetn iiitvs ad norgn te use the encouraging and initiatives, job-creating local 94 19 ad ie o 19 - 99 i amd at aimed is 1999) - 1997 for five and 1996 - 1994 Twente udotBaat54.2 Zuidoost-Brabant Arnhem-Nijmegen 60.5 Zuid-Limburg Groningen-Drenthe Region 67128.3 46.7 64123.2 95.9 36.4 32.1 S oa Struct Total ESF 167.7 152.6 BY C million ECU PART 2 CHAPTER 14 - x m ■ Objective 1 ■ Objective 2 3J r~ □ Objective 3 > O □ Objective 4 to I Objective 5b Friesland AMSTERDAM levolai Utrecht Gelderland Zuid-Holland Noord-Brabant EUROPEAN SOCIAL FUND 195 196 THE NETHERLANDS CHAPTER The main objective is to create new jobs where the the where jobs new create to is objective main The ota n, h EFalctd C 4. mlin o re to million 46.7 ECU allocated ESF the end, Tothat ente Tw ovrin ntaie i te ein ewe 19 and 1994 between region the in initiatives conversion 6.7%). to compared (7.9% growth rate in the region in order to stimulate employ stimulate to order in region the in rate growth of region this to million 60.5 ECU allocated ESF The whole. a as Funds Structural average national the than higher is rate unemployment sa hl. h mi ojcie st ices h GDP the Funds increase to is Structural the objective for of main out The million whole. a as 167.7 1994-1999, ECU period of the for total a inhabitants 606.000 e th n re -D n e g in n ro G tive is to create new jobs and to raise the standard of of standard the raise to objec and main jobs new The create whole. a to is as region Funds tive this to Structural the for million 32.1 ECU allocated ESF The d Lmb rg bu Lim id u Z ment. version: the for million characterised isre-con-which inindustrybytextiles a 128.3 ECU of total a of out 1999, mn women. among region this for were set priorities main The following ployment rate is closer to 20% and is particularly high high particularly is and unem 20% real to the the closer is but of rate 15% unemployed ployment About officially past. is mining population its of signs the bears million 94.9 ECU of total a of out 2, Objective under living in this region of 389,000 inhabitants, which still still which inhabitants, 389,000 of region this in living wereThetherefore following priorities set: followingpriorities: The ESF the finance thereforeare usedallocations to ♦ development of tourism. of development ♦ particular a with industry local boosting ♦ activities, of kinds new of development ♦ ♦ boosting the industrial sector and sector industrial the boosting ♦ dvlpet fte ors sector. tourism the of development ♦ ♦ development of basic training in the the in training basic of development ♦ particular with development industrial ♦ ♦ development of tourism. of development ♦ logis and transport the of development ♦ ou o SMEs; on focus itiuin n logistics; and distribution services; transport, of fields the in particularly i scos n h region; the in sectors tic emphasis on SMEs and new technology; new and SMEs on emphasis region; This is a region of 470,000 inhabitants. ESF aid totals totals aid ESF inhabitants. 470,000 of region a is This n e g e ijm -N m e h rn A structure of the region so as to increase production production economic increase to the as so strengthen region to the of is 1994-1999. for structure objective whole a as main Funds The Structural the for n gnrt employment. generate and training programmes for employees in the public works works public the in employees finances also offor ESF programmes The ESF). million training the by 7.1 - financed is million which 90.4 (ECU Nijmegen Arnhem- the use of new technology and developing tourism. developing and technology new of use the of region this to million 54.2 ECU allocated ESF The project. this of framework the within sector, for SPD the of cost total the of 53% about attracts region: ECU 36.4 million out of a total of ECU 123.2 million million 123.2 ECU of total a of out million 36.4 ECU s woe Efrs ae en ocnrtd on and concentrated SMEs, been particularly have industry, local Efforts Funds strengthening whole. of Structural a out the from as million 1994-1999, 152.6 period ECU the of for atotal inhabitants 666,000 t n a b ra t-B s o o id u Z It should be mentioned that the Eurotradeport project project Eurotradeport the that mentioned be should It h floigga ws e fr h Arnhem-Nijmegen the for was set goalThe following e poi s - ecie 2 ctive je b O - ts in o p Key ♦ to set up a new group of economic activ economic of group new a up set to ♦ EF otiuin 3% of 35% ESF contribution: ♦ epai o h dvlpet of development the on emphasis ♦ is technology advanced in training ♦ industry local boosting on emphasis ♦ ors sector. tourism distribution and transport developing to vices, modernising the industrial sector, sector, industrial the modernising vices, particularly SMEs, and boosting the the boosting and SMEs, the particularly ser business with entails This region. the in geared connection is which project in ‘Eurotradeport’ ities an integral part of the regional regional the of part integral an ovrin strategy conversion SMEs) (particularly 2 Objective region Limburg Zuid the in know-how ____ CHAPTER H NETHERLANDS THE F riesland OBJECTIVE 5b The main objective is to reduce the deficit in the devel opment of the economy of this region and to strengthen The development and structural adjust its local base in order to improve job prospects. The ment of rural areas ESF contribution of ECU 4.6 million is mainly geared to the development of the private sector. Friesland was the only region to qualify under Objective 5b in the previous programming period, but Groningen-Drenthe an additional four regions qualify for 1994-1999: part of Groninge and Limburg and all of Overijssel and The ESF contribution of ECU 6.64 million is aimed at Zeeland. About 5.4% of the Dutch population there reducing the level of unemployment by strengthening fore qualifies for Community aid under Objective 5b. and diversifying the structure of the regional economy. Measures financed by the ESF include training, par ticularly in the agricultural sector, and strengthening the training infrastructure. BREAKDOWN OF ESF FUNDING Lim bu rg BY OBJECTIVE 5b REGION ECU million The ESF provides ECU 2.93 million towards raising iRegion ESF Total Structural Funds! the quality of the economic structure of the region in order to generate employment, particularly through Friesland 4.6 68.7 training actions in the agricultural and tourism sectors, Groningen-Drenthe 6.64 34.9 especially rural tourism. Limburg 2.93 19.10 Zeeland 1.6 11.80 Zeeland Overijsel 1.83 15.50 The ESF contributes ECU 1.6 million towards improv ing the labour market situation in the Zeeland region. The ESF provided these rural regions with ECU 17.6 million out of the total ECU 150 million allocation O ve rijsse l from the Structural Funds under this Objective. The ESF allocation of ECU 1.83 million finances voca The main priorities under this Objective are to develop tional training in the agricultural sector with the aim of SMEs and promote start-ups, invest in human resources stabilising regional employment levels in agriculture. and develop tourism (particularly rural tourism). Key points - Objective 5b ♦ ESF contribution: 12% of Objective 5b ♦ 4 new regions qualified under Objective 5b for the period 1994- 1999 ♦ emphasis on training in the agri cultural sector ♦ promotion of rural tourism an inte gral part of the regional diversifi cation strategy EUROPEAN SOCIAL FUND 197 198 THE NETHERLANDS t I tatves i t e th in s e tiv itia In ity n u m m o C herands d n f rla o e th e ent N pon m co esources R an Hum The ESF contributes ECU 62.6 million to the the to million 62.6 ECU contributes ESF The of persons with disabilities into the labour market market labour the into disabilities with persons of ent Employm rus n oit n i eind o rmt coun promote to designed is and society in groups intro was which INTEGRA, of employment. development assisted the for support things, other among rgn n yuh ih o qaiiain. The qualifications. low with foreign youth of and people to origin priority gives YOUTHSTART exclusion. combating selling, selling, vulnerable most the on focused is 1996, in duced flexible introducing teleworking, developing by integration the facilitate to Dutch designed the is of period strand programme, priority the the is for which HORIZON, Initiative this under Netherlands rd uin ad rfsinl organisations. professional and unions trade labour at the aimed from women of mainly exclusion are the NOW combating under funded Actions training. and interactive learning tools). HORIZON includes, includes, HORIZON tools). and learning learning distance as interactive (such systems learning 1994-1999. between public authorities in the field of education education of field the in authorities public between akt n botn te rsne f oe in women of presence the boosting and market cooperation on efforts its focuses Netherlands training andtraining work work experienceas ameans of aiiae h aatto o wres o hne in to changes to designed workers of is adaptation Initiative the facilitate Community Adapt The Adapt om o epomn. h EF a alctd ECU allocated has ESF The employment. of forms riig ly a eta rl i te uc pro Dutch the in role central a plays Training know of transfer the this encouraging and under employment, sup SMEs, in Netherlands innovation facilitating the at aimed sures to illion m .6 69 rnfr f nwhw Te dp iiitv is initiative Adapt The know-how. of transfer with workers are groups target main The gramme. new of creation the in increase assist to enterprises and help to productivity, systems, production s el s rmtn coeain ewe SMEs, between cooperation promoting as well as expected to create 2 ,0 0 0 new jobs in the the in jobs new 0 0 ,0 2 create to the for expected SMEs for structures support and agement research institutions and training organisations. organisations. training and institutions research enterprises, small to large from expertise of and how generators potential as enterprises new porting n Urban. and ntaie Te ou i o a hl sre o mea of series whole a on is focus The Initiative. o-k 1 ees SE mlye, ide ee man level middle employees, 11low-ski SME levels, ECU 7.1 million, through these other Community Community other these through million, 7.1 ECU Netherlands. ntaie: nerg Kne, ec, ee, SME Retex, Pesca, Konver, Interreg, Initiatives: totalling amounts contributes, ESF the addition, In H NETHERLANDS THE SECTION 3 Programme content and ESF policy aims A. Vocational integration of B. Vocational integration of people threatened with young people long-term unemployment Some 27% of ESF resources are devoted to com bating youth unemployment. Young people were Some 42% of the total ESF resources are used for designated as one of the target groups in the this purpose. Like other Member States, the Flevoland region (which qualifies under Objective Netherlands is confronted with a rising trend in 1) for example. The selection criteria states that long-term unemployment. ESF support is therefore preference will be given to unemployed people designed to complement actions undertaken by the under the age of 25. Special attention is given to Netherlands to limit the structural character of school leavers and those dropping out of school long-term unemployment through the following prematurely. concrete actions: Actions are mainly aimed at preparing young peo Measures to facilitate access to employ ple to enter the labour market, through preparatory ment and skills acquisition through work training, counselling and career guidance. The experience pathways to integration which were created to com District councils created employment pools in bat youth unemployment (particularly those who cooperation with regional employment agencies as have left school prematurely) play a central role in early as 1990. Close to three quarters of the par improving the situation of young people on the ticipants had been unemployed for more than five labour market. years and two thirds of them were over the age of forty. The aim was to increase the number of jobs Broadening the apprenticeship system/ in the employment pools. A temporary and gradu developing training ally diminishing wage subsidy is provided over a About 12,500 young people leave school every three year period to smoothen the passage back to year without having attained a diploma, whether it regular employment. be a MAVO (general secondary school certificate) or an LBO (secondary school vocational training - The creation of these 20,000 new and temporarily 1st level). A good deal of effort is put into encour subsidised jobs in the private sector also gives peo aging these young people to take a KMBO diploma ple an opportunity to acquire work experience course (secondary school vocational training - 2nd which is another priority aim of this action. These level) and an apprenticeship. About 45,000 young temporary jobs are intended for people who have people enter the apprenticeship system every year the greatest difficulties in returning to the labour and the Dutch authorities have launched an action market. aimed at creating an extra 20,000 apprenticeships per annum. There is also provision, in cooperation There is also provision for recruiting the long-term with the apprenticeship system, for additional unemployed for the social sector. training for young people who leave school without having attained a basic qualification. Measures for raising skill levels and qualifications Vocational training schemes are also planned within the framework of Objective 1 and the Objective 3 Training schemes are provided to help the long SPD lays particular emphasis on the vocational term unemployed with the greatest difficulties in integration of young people. entering the labour market and to prepare them for vocational training. These may include courses in Dutch, general knowledge, or forms of training in line with labour market requirements; the courses do not contain a guarantee of employment. EUROPEAN SOCIAL FUND 199 ■ 1 4 Measures to facilitate access to D. Promotion of equal opportu employment nities in the labour market The Flevoland region promotes job-creation mea sures and runs a guaranteed employment pro between men and women gramme for young people. Young people are also given priority in the allocation of 10,000 new jobs About 1% of the ESF allocation goes towards pro created in the social sector under Objective 3. moting equal opportunities in the labour market between men and women. There are preparatory courses to facilitate access to the guaranteed employment programme, especially Very few measures in the current SPD for Objective for young immigrants. These measures are devel 3 are specifically directed at women, but special oped in close cooperation between social institu emphasis is placed on the importance of the equal tions, help organisations, and training and employ participation of men and women in all actions. ment services. Preparatory training schemes are available for women who have been dependent on social secu Measures to adapt skills to the rity and wish to return to the labour market after a requirements of the labour market. long absence. Women are also well represented in basic training and employment schemes. Regional employment offices coordinate support for bodies such as youth aid services, social secu Priority is also given to women who have been rity, youth associations and schools in order to unable to find employment, particularly to women develop a more coordinated and effective with no social security and/or belonging to an eth approach, identifying the requirements of the nic minority. labour market with the aim of facilitating swift and stable vocational integration. Regional SPDs under Objective 2 for the period 1997-1999 are also particularly attentive to the C. Integration of persons at risk needs of women. of exclusion from the labour E. Anticipation of labour market market trends and Some 3% of ESF resources go towards this aim. adaptation of worker skills Because of their integrated approach, the pathways to change to employment are essential to facilitate the employment of persons at risk of exclusion from Some 17% of the ESF allocation is aimed at facilitat the labour market. Particular emphasis is placed ing the adaptation of workers to changes in production on persons with partial invalidity because of systems. The projects which have been approved are national measures to promote the employment of therefore aimed at promoting greater use of technol the large number of workers coming within the ogy in enterprises, facilitating the setting up of effec scope of invalidity laws. tive training systems within the enterprises them selves and improving the quality of training offered. The pilot project developed by the North Brabant region for people with mental disabilities is also The following measures relating to training were worth mentioning. determined under Objective 4. Financial support for the development of the man agement of human resources, particularly in SMEs, in order to promote in-firm training, and to provide individual counselling to employees who might be at risk of unemployment. These include: F. The ESF - an instrument of ♦ assessing existing skills and promoting the development of new competences; regional development ♦ counselling employees to help them identify the type of training best suited Boosting human potential in the field of to their needs; research, science and technology ♦ running programmes to raise awareness One of the eight development priorities in the among employers of the need for training Flevoland SPD is the creation of a centre to pro and its potential as a management tool. mote innovation and the transfer of technology. This is designed to help SMEs foster direct links Financial aid for identifying the skill gaps in per with institutes of research and development in sons at risk of unemployment, due to economic Flevoland and other regions in the Netherlands. and technological change, and changes in work Two regional telecommunication centres in rural organisation. This measure provides an opportunity to-. areas will also be able to link up to this technology transfer centre. ♦ identify trends and how they quantita tively and qualitatively affect the devel Another project worthy of mention is the KIM pro opment of employment in the sector or ject. This provides aid to enterprises that need to region concerned; employ university graduates and highly qualified ♦ monitor the career developments of personnel to facilitate the introduction of advanced individuals with low levels of basic technology and new working methods in enterprises. training. There are also measures to promote agricultural Reduce the problems of some forms of training research in 5b areas: Friesland, Groningen, being too theoretical in content and relieve other Drenthe, Overrijssel, Zeeland and Limburg. constraints such as transport difficulties, unsuit able time-schedules, etc. In-house training is encouraged for enterprises as well as exchanges of trainers between firms, and the use of distance learning and CD-ROMs. Training subsidies: these are used to cover part of the costs incurred by the training organisation and the employer, and to compensate for any loss of pay encountered by the employee while following training. The provision for developing systems capable of forecasting labour market trends and future train ing needs is designed to enable firms to adapt to changes in production systems at an early stage. An example of this is the employment observatory being set up under the auspices of the directorate dealing with the labour market in the Ministry of Social Affairs and Labour precisely. The research institute of the University of Maastricht which has been entrusted with this project will have the task of developing appropriate tools to diagnose and identify future labour market trends in the Netherlands, and then inform the Ministry of Labour of specific training needs. Management and follow-up The following organisations share responsibility for the to be used. They deal mainly with vocational training management and follow-up of ESF actions: the and counselling services and the vocational training sys Ministry of Social Affairs and Labour, the Department tem in general. for Employment - including the Central Employment Office and the Regional Employment Offices. In agreement with the Ministry of Social Affairs and Labour, the National Employment Office is responsible Responsibility at national level for implementing ESF programmes under Objectives 1,2,3, and 5b. The Ministry of Social Affairs and Labour is the main governmental body responsible for the implementation In the case of Objective 3, The ESF allocates a spe and administration of labour and social security law. It cific amount to all regional Employment Offices which is also responsible for the overall management of the is reviewed annually. ESF in the Netherlands. Objective 4 called for a totally new structure because In January 1991, the government relinquished its role the public sector had never been responsible for the as sole initiator of policy and set up Employment training of employees before; up until then, training Services, a tripartite organisation. Since then, respon was mainly the responsibility of enterprises and Social sibility for policy-making is shared between the gov Partners. A special service called ‘Bureau Uitvoering ernment (represented by the Ministry of Social Affairs Europese Subsidie Instrumenten’ (BUESI) was set up and Labour) and the central federations of employers in the Ministry of Social Affairs and Labour in mid- and employees. 1995. This body enjoys a special temporary statute and is responsible for implementing the ESF under The Employment Services are organised at central and Objective 4. regional level and are divided into: ♦ a Central Employment Office; The Monitoring Committees ♦ Regional Employment Offices. A Monitoring Committee was set up for each pro Since January 1996, the Employment Service has been gramme under Objectives 1, 2, 3, 4 and 5b. divided into 18 regions (compared to the previous 28). Decisions relating to the financing of regional ESF projects under Objectives 1, 2 and 5b are taken at Responsibility at regional level regional Monitoring Committee level. Projects are implemented on the basis of the Single The Regional Employment Offices are, like the Central Programming Documents set for each Objective (1, Employment Office, tripartite bodies in which the gov 3, 4) or region (2, 5b). There are 13 Monitoring ernment and regional federations of employers and Committees in the Netherlands. These committees workers are equally represented. The government is monitor the implementation of ESF programmes and represented by local authorities and departmental advisors. meet at least twice a year, or more frequently if nec essary. The social partners are represented on all of The Central and Regional Employment Offices work in these committees. close collaboration and are jointly responsible for the training of job-seekers and other groups at risk on the Special coordinators have also been appointed by the labour market.The Regional Offices determine the regional Employment Offices to process applications for number of people to be trained and the training tools ESF projects and write evaluation reports. Portugal SECTION 1 Economic and labour market situation at the time of programming of Community structural funding for the period 1995-1999 Economic situation under Objective 1. GDP per capita does not go beyond 58% of the EU average and major obstacles Portugal covers 92 072 km2 and can be divided into to Portugal’s development call for active State inter two parts: the mainland accounting for 97% of the vention together with the application of resources surface area, and the island groups of Madeira and which cannot be mobilised at national level. the Azores. The population stands at about 9.8 mil The Portuguese economy is dominated by small-sized lion, 95% of whom live in the mainland. companies: more than 10% of wage-earners in the Since Portugal joined the European Community in productive sector work in units of fewer than five 1986, the performance of the Portuguese economy workers and more than 50% of workers are employed has been particularly encouraging. The average GDP in units o f less than fifty people. growth was 3.3% between 1989 and 1993 - com A large number of Portuguese companies have diffi pared to 2.1% for the whole Union for the same culties in making use of ‘dynamic factors of competi period. It should also be noted that in 1994 income tiveness’ such as training, information, technological per capita had reached 73.3% of the EU average but innovation, productivity, marketing, etc. Most this income was only 55.3% in 1986. The dynamic Portuguese companies have difficulties in defining development of productive investment and the rapid business strategies and function primarily as suppliers grow th in exports have powered an expansion o f eco of production capacity hence their great importance nomic activity. Simultaneously new plant and infra in the subcontracting sector. structure has been developed, schooling and training Since 1991, grow th in Portugal has slowed in levels have increased and the provision o f services to response to the world-wide economic slump. the population improved in a wide variety of fields. External demand has fallen, snapping exports, while Despite these significant improvements, economic domestic demand has been weakened by a combina development in every region of Portugal is below the tion of the drop in private sector investment and Community average, which is why the entire country reduced household consumption. is included in the list of areas eligible for assistance Labour market growth poses an important challenge in terms of job During the last ten years, unemployment in Portugal was creation. On the other hand, the availability of man relatively low - between 4% and 8%. Indeed between power guarantees Portugal a high growth potential, 1986 and 1991 the average annual increase in the vol especially in its capacity to attract productive indus ume of employment was 2.8% (EUR 12: 1.5%) whereas tries relocating in Europe. However, shortfalls and the activity rate went up from 70.6% to 73.9%. Since impediments persist with regards to skill levels within 1991, the slowdown in economic activity has increased the labour force. Portugal has a very high illiteracy rate, the pressure on the labour market and is causing an levels of schooling are markedly lower than the increase in the level of unemployment. This increase in Community average (76.5% of the working population unemployment hit particularly young people and long has not been educated beyond primary-school level). term unemployed. The possibilities of promoting a system of continuing Dynamic population growth gives Portugal a high further training are hampered by the poor initial edu growth potential in manpower. On the one hand this cation and training conditions. PART 2 CHAPTER 15 PORTUGAL SECTION 2 Structural Fund programmes in Portugal A. Allocation by Fund and The Portuguese authorities have chosen to programme actions supported by the Structural Funds, by way of a Objective multifund Community Support Framework (CSF). The CSF is implemented through 15 OPs and Over the period 1994 - 1999, Portugal will benefit 1 global grant: from total structural funding amounting to ECU 14 bil ♦ 6 sectoral Operational Programmes lion. The ESF portion amounts to ECU 3.1 billion, ♦ 1 non-regional Programme to promote around 22.5% of total allocations. Additional assis regional potential tance amounting to ECU 890 million, out of which ♦ 7 regional Operational Programmes ECU 95 million, from the ESF, is allocated to Portugal ♦ 1 Operational Programme of technical through the Community Initiatives. Portugal is also one assistance of the Member States to receive assistance from the ♦ 1 Global Grant to support local author Cohesion Fund. ity development projects. As all of Portugal is eligible under Objective 1, 75% of The ESF contributes to eight of these OPs. the total cost of actions can be financed by the Structural Funds. BREAKDOWN OF ASSISTANCE BY OBJECTIVE AND SOURCE OF FUNDING ECU million - prices valid at time of Decisions Total Structural Funds ESF ERDF EAGGF FIFG Objective 1 13980 3149 8724 1894 213 Community Initiatives Employment 45.5 40 5.5 Adapt 21.4 21.4 Others 823.8 33.6 671.8 97 21.3 Total 890.7 95 677.3 97 21.3 General Total 14870.7 3244 9401.3 1991 234.3 BREAKDOWN OF ALLOCATION BY FUND (excluding Com m unity Initia tives) EAGGF ESF 13.5% 22.5% FIFG 1.5% EDDF 62.5% EUROPEAN SOCIAL FUND 205 PORTUGAL PART 2 CHAPTER 15 betv 1 Objective ■ AR of Madeira of AR ° ^ 0 0 of the Azores Azores of the Autonomous region Autonomous Lisboa e Vale e Lisboa Algarve Alentejo entro C rte o N CHAPTER 15 PORTUGAL B. Main features of the ESF Thus, the CSF concentrates on the four following pri orities: component in the Structural Priority 1 Fund programmes Developing human resources and promoting employ ment. ECU 3059.5 million Regional Objectives in which the ESF Priority 2 Improving competitiveness within the economic integrates with other Structural infrastructure. ECU 6306.2 million Funds Priority 3 Improving the quality of life and furthering social cohesion. ECU 1264 million r OBJECTIVE 1 Priority 4 Strengthening the regional economic base. Development of the least ECU 3144.3 million prosperous regions Provision is also made for technical assistance The whole of Portugal qualifies for structural assis amounting to ECU 205.9 million. tance under Objective 1 for the period 1994-1999. The Portuguese CSF together with the relevant OPs were adopted in February 1994. The main objective underlying the CSF is the moderni The ESF allocation in the CSF is ECU 3148.6 million sation of the productive fabric, closely linked to the representing 22.5% of total structural funding. ESF development of human resources and the improvement funding is allocated around the four priorities as the of infrastructures. It is expected that actions in these ESF intervenes in each of them. three areas should have a positive impact on reducing regional disparities and improving social cohesion. BREAKDOWN OF STRUCTURAL FUND ALLOCATION BY PRIORITY (excluding Technical Assistance) BREAKDOWN OF ESF ALLOCATION BY PRIORITY (excluding Technical Assistance) priority 3 10.6% priority 4 EUROPEAN SOCIAL FUND 207 Impact of the ESF P rio ritie s The importance of ESF assistance in Portugal is quite sig All financial assistance from the ESF is directed to the nificant, both in terms of expenditures and additionality. following priorities: Approximately 56% of Portuguese expenditure in voca ♦ improving education systems and quality tional training and active labour market measures is of basic education financed by the ESF. In the same way, education and ♦ strengthening of scientific and technical research expenditure is largely supported by the ESF. training Moreover, ESF assistance has greatly contributed to ♦ promoting vocational training within the creation and setting-up of a new sector in Portugal secondary education for Vocational Training and Employment. Given the ♦ strengthening of continuing education considerable effort made under the first CSF (1989- ♦ supporting vocational integration of dis 1993), around 250 000 persons per year benefited advantaged groups from vocational training (25 000 persons per year ♦ improving employment services before Portugal joined the Community). This is equiv ♦ supporting regional and local development alent for a four year-period, to one fourth of the active ♦ employment aids population. It is expected that under the current period, ESF assistance will allow the training of 350 000 per sons per year. At the same time, 280 000 persons will Within the CSF, the breakdown of ESF allocation per benefit from employment aids between 1994 and Objective is as follows-. 1999. The ESF annual allocation to Portugal represents Objective 1 ECU 1817 million 58% 0.74% of GDP. Objective 3 type measures ECU 1177 million 37% Objective 4 type measures ECU 155 million 5% This means that Objective 4 type measures represent 12% of the total amount allocated to Objectives 3 and 4 type measures. The ESF allocation is divided between 8 OPs - which is a considerable reduction compared to the previous period which counted 33 OPs - This results in OPs of quite an important size and in simplification of the financial procedures between the national authorities and the Commission. BREAKDOWN OF ESF FUNDING BY OPERATIONAL PROGRAMMES Operational Programmes ECU million % CSF priority Vocational training and employment 298 41.2% priority 1 Knowledge base and innovation 844 26.9% priority 1 Modernisation of the economic fabric 414 13% priority 2 Healthcare and social integration 328 10.4% priority 3 Promotion of regional development potential 81 2.6% priority 4 Autonomous region Azores 62 2% priority 4 Autonomous region Madeira 51 1.7% priority 4 Technical Assistance 71 2.2% TOTAL 3 149 100% More than 81% of ESF assistance is allocated under the three first programmes. Three OPs are exclusively dedicated to human resources development Divided in sub-programmes, their main actions and target groups are presented in the following table: Operational Programme Sub-programme Target groups Actions 1. initial training and inser young people without ade apprenticeship schemes tion into the labour market quate training or qualifications initial training young job seekers job placement support to self-employed activities 2. improving the level and workers with low level of employment aids quality of employment qualification continuing training Vocational training and unemployed persons and training employment workers facing industrial measures to tackle industrial change change support for SMEs 3. training and management teachers and trainers development of a national system of human resources people working in employment of assessment and certification of and training centres training course strengthening of training support to employment services monitoring and identification of skills requirement through employ ment observatory 4. training in public admin- civil servants training course stration modernisation of information sys tems and services in public administration 1. education young people without ade continuing training for teachers quate training or qualification vocational training after secondary young people from disadvan education taged groups technological and art training Base of knowledge and inno trainers, teachers training for trainers vation people with graduate diplomas remedial teaching to combat illit eracy advanced training for University teachers 2. science and technology qualified young people and involving industries in RTD adults activities people involved in the field of support to university projects science and research (grants) company staff increasing the numner of researchers training of laboratory assistants and mangers in RTD fostering links between universi ties and companies 1. health staff and trainers in the health initial training for nurses and sector technicians Health and social integration staff in related sectors such as training and retraining of trainers education and social services qualification of staff involved in implementing actions to promote 2. social integration long-term unemployed health awareness communities and individuals threatened by social and eco creation and operation of centres nomic marginalisation providing employment guidance information activities specific, adapted vocational training training of specialised staff ESF intervention in other OPs Human resources component of the Community Initiatives Modernisation of the economic fabric The four strands of the Employment Initiative - NOW, A major priority for Portugal is to make the economy HORIZON, INTEGRA and YOUTHSTART - provide an more competitive, through structural adjustment, allocation of ECU 45.5 million over 1994-1999 to modernisation and diversification. The ESF con Portugal to foster best practice in the field of human tributes to all of the sectoral OP sub-programmes. ESF resources development through innovation, local part support goes to the strengthening of research to nership and transnational co-operation. To this develop training and information as well as organisa Initiative, the ESF contributes ECU 40 million and the tional methods in agriculture. A particular focus is ERDF ECU 5.5 million. given to industry, where actions are to improve levels of competence and qualifications in industry. In the Under the Adapt Initiative, the ESF allocates ECU framework of the sub-programme to promote the 21.4 million for the co-financing of innovative transna tourism industry, the ESF contributes to both initial tional projects for employees at risk of unemployment and continuous training. ESF support is also given to due to industrial and technological change. the fisheries sector to improve skills and knowledge and to minimise the negative effects of the reduction In addition, the ESF contributes amounts totalling of the fishing fleet. ECU 95 million through the other Community Initiatives; Interreg, Leader, Pesca, SME and Urban. Promotion of Regional Development Potential Rural and local development is fostered through the promotion of local employment initiatives, specifically in the handicraft sector, and the development of asso ciations and agents. Autonomous regions of the Azores and Madeira ESF support in these regions aims at developing tech nical, vocational and higher education; improving training for public officials; and strengthening the level of qualifications in the agriculture, industry, fish eries, tourism and commerce sectors. Key points - Objective 1_____ ♦ the whole of Portugal is eligible ♦ ESF assistance is ECU 3244 m il lion representing 22.5% of total structural funding ♦ almost 46% of ESF allocation aims to strengthen and improve education and training systems ♦ specific effort is given to the sup ply of technical and vocational training particularly targeted to young people PORTUGAL SECTION 3 Programme content and policy aims A. Vocational integration of In view of the low level of schooling and vocational qualification of young people and the fact that the people threatened with unemployment rate of this group is much higher than long-term unemployment that for adults, measures aimed at the initial qualifi cation of young people and their integration into the The increase in employment up to the early 1990s labour market is a key aim of ESF assistance. had made it possible to absorb the growth in the Throughout the CSF, several measures are directly labour force and to reduce unemployment signifi targeted to young people. cantly. Indeed, from 1986 to 1991 the average The ‘Initial training and insertion into the labour mar annual increase in the volume of employment was ket' sub-programme envisages the following measures: 2.8% (EUR 12: 1.5%) whereas the activity rate ♦ apprenticeship: a three-year apprentice went up from 70.6% to 73.9% and unemployment ship system combines theoretical and decreased from 8.6% to 3.6% of the active popula on-the-job training, and provides school tion. Since 1991, the slowdown in economic activ and vocational qualifications. It is ity has increased the pressures on the labour market expected that about 90 000 persons and is causing an increase in the level of unemploy will benefit from this measure by 1999; ment. In the current economic climate, the under ♦ initial qualification: it is intended that qualification of the manpower is an important factor around 76 000 young people who leave hindering the re-employment process. school without any qualification will benefit from a vocational training course There is specific provision for tackling long-term of at least one year’s duration leading to unemployment in the sub-programme ‘Improving a vocational qualification. The theoreti the level and quality of employment’, aiming to cal part of the course will be given at train approximately 45 000 unemployed people accredited training centres; with basic training. This training is destined to ♦ units for integration into working life those whose level of education is particularly low. (univas): these units, based in schools This sub-programme also provides for employment and vocational training centres, make aids such as recruitment subsidies and exemption up a network which provide young peo from social security contributions. ple with information on job placement But the problem of long-term unemployment is and follow-up services, more specifically addressed in the sub-programme ‘Economic and social integration of disadvantaged It should also be noted that a number of measures groups’ Different measures are designed to geared to improving education and vocational sys increase and improve the chances for long term tems, (see F. below) in particular, to increase the unemployed people to access vocational training supply of vocational and technical training (by and the employment market. Actions aim at pro expanding vocational schools) are specifically tar viding them with information, vocational guidance, geted at young people. specific training and back-up measures to facili tate professional integration. Priority is given to those who have been unemployed for more than C. Integration of people at risk two years, who receive no social security and to of exclusion from the labour women who face serious problems in getting back to work. It is expected that some 30 300 unem market ployed people will benefit from these measures. The sub-programme ‘Economic and social integra tion of disadvantaged groups’ is not only targeted B. Vocational integration of at helping long-term unemployed people (see A.). It also seeks to mitigate the fact that progressively young people larger segments of the population encounter diffi culties in gaining access to the labour market and About 17% of the Portuguese population is aged in social integration in general. In addition to the between 15 and 24. The average level of schooling for groups traditionally seen as disadvantaged, new this groups is very low. It is expected that between categories are gradually emerging, such as drug 1993 and 1999 approximately 200 000 young people addicts, ex-convicts, prisoners and ethnic and cul will leave school without completing their secondary tural minorities. The objective of this sub-programme education and without any vocational qualification. is to reduce the factors which cause social and EUROPEAN SOCIAL FUND 211 212 PORTUGAL PART 2 HPE 15 CHAPTER I). Promotion of equal of Promotion I). . niiain flbu mar labour of Anticipation E. economic marginalisation, and to facilitate social measures: social specific by facilitate cohesion to and economic and marginalisation, economic hogot h egt prtoa Porme cofi Programmes for horizontally, Operational measures, eight priority the mainstream throughout specific in a women position of the reinforce include to decided have They to women. not decided oa i a a' o, n/rwmn h st p as up set who women and/or newjob, man's a a in woman give to up drawn was legislation new a h omsin o Eul ihso oe (CEDM) Women of Rights Equal for Commission the The aid. 20% extra an receive self-employed, a employs aids who company A Employment 20%. women. by of increased are training to dynamic f h ntoa parliament. national with the of liaise also will main in officer women The of measures. training stream the promote to aiming officer’ opportunities ‘equal an appointed recently that noted be should it ESF. However the by nanced have authorities Portuguese CSF, the current this In in charge of co-ordinating and monitoring actions actions has monitoring and co-ordinating qualification of charge and in Employment of Ministry workers to industrial change are contained in two two in contained are change industrial to workers programmes: the OP ‘Vocational training and employ and training OP‘Vocational the programmes: n otgl atos eaig o h aatto of adaptation the to relating actions Portugal, In worker skills to change to skills worker labour the in opportunities women e rnsad dpain of adaptation and trends ket and men between market ♦ support for socio-cultural development development socio-cultural for support ♦ ♦ economic and social integration of of integration social and economic ♦ ♦ integration of other disadvantaged disadvantaged other of integration ♦ in f eeto facilities; reception of tion and human both mobilise to aiming riig n jb rmto - riig of training - promotion job and training specialised personnel and agents agents and personnel specialised guidance, and assessment vocational on training tailored to the their specific specific their the to tailored and training information to addition in groups: employers potential of sitisation handicapped people: actions will focus focus will actions people: handicapped opera and actions establishment preventive the including of effective the for implementation resources institutional of persons involved in the process of of process the re-habilitation. in socio-economic involved persons of vocational and measures awareness to technologies new of use the (with mrv riig - nomto ad sen and information - training) process improve re-habilitation the in involved needs, provision is made for the training training the for made is provision needs, opttv. h rl o te S i t spot human support to is ESF the of role The competitive. of instrument an - ESF F. The et f h Pruus eooy o ae t more it make to economy develop Portuguese the in the Funds of Structural ment other ility the b with ta s bines and th w ro g t n e ym lo p m E n re t bot mlyet rwh te S com ESF the growth, employment boost to order In hnst h rain fa mlyetad train and employment an of creation the to thanks are measures of types two anticipation, regards As allocation. ESF 5% total the almost of represents which priority bethis to should allocated million 155 ECU Around fabric’. economic h tre rgams ‘oensto o te eco the of ‘Modernisation programmes: three the iden needs. to skill aiming of out, tify carried be will studies sectoral and ‘training sub-programme the under envisaged the of ‘Modernisation sub-programme the and ment’ stimulate sustained growth in the competitiveness competitiveness the in growth sustained stimulate o hscl n mtra apcso ivsmn pro investment of aspects material and physical to that forms part of a global enterprise development development enterprise global a of part forms that tech in changes of suffi challenge grow the to meet them to allowing by ciently firms industrial of in envisaged are measures type 4 Objective Specific implemented be and will needs Monitoring skill of management’. identification resource human jects (supported by ERDF) but will also be given to to given be also will but ERDF) by (supported jects h sbporme mrvmn o h lvl and level the of of Improvement number ‘ a sub-programme The where redundancy. with industries, threatened are workers and shipbuilding steel the electrical, sec textile, in as the such serious crisis in tors particularly is situation of needs The sectors. specific the satisfy to training and strategy, to is objective strategic The management’. qual resource and level the of Improvement ‘ fabric’, nomic and prospective of number a and observatory ing ulttv set:tann, noain dsg and design innovation, training, aspects: qualitative well as the introduction of a network of accredited accredited of centres. network a as of training introduced introduction gradually the be as specific well on will based that plans, employees, for training con of training system a envisages tinuing employment’ of quality human and ‘Training and employment' of ity marketing. Measures focus on management training training management on focus Measures marketing. limited be not will Assistance markets. and nology the training of trainers. Priority is also given to to given also is Priority trainers. of training the the without developed be cannot training. their actions during These SMEs in workers replace will employees. their for training provide to them Small firms will receive incentives to encourage encourage to incentives receive will firms Small etfcto o riigcussa el s monitor as well as and courses assessment training of of system certification national a developing is given to the development of training methods, to to methods, training of development attention the to special given is systems: training of improvement trained, already people, unemployed instance, For n n ietfcto o kl needs. skill of identification and ing einl development regional resources in the following sectors: ♦ developing the scientific system; ♦ agriculture: agriculture has a greater ♦ developing a system of initial vocational social and economic importance in training complementary to the educa Portugal than in the rest of the Union as tional system and an effective system of it accounts for 11% of total employ continuing education. ment. The main objectives for this sector is greater competitiveness and the need The following measures will be implemented under the to modernise. The ESF aims at increas education sub-programme: ing agricultural research capacity, devel ♦ compulsory education: reorganisation of oping training and expanding the organ the compulsory education system. Some isational capacity of farmers. It is schools have only a few students while expected that 7 700 farmers and 970 schools in some regions are over technicians will be trained each year. crowded. Provision of continuing train ♦ a particular focus is given to industry, ing for teachers and managers, will where ESF actions to improve levels of improve the quality of education given competence and qualifications in indus and should help to reduce the number try are promoted; of dropouts. Teaching of foreign lan ♦ for the tourism industry, ESF actions guages and new technologies will be contribute to both initial and vocational encouraged; training; ♦ post-compulsory secondary education: ♦ ESF support also goes to the fisheries the vocational side of secondary educa sector to improve skills and knowledge tion will be stimulated, particularly and to minimise the negative effects of through vocational schools. Resources the reduction of the fishing fleet; will also be allocated to implement the ♦ rural and local development is fostered reform of mainstream secondary educa through the promotion of local employ tion. Special attention will be given to ment initiatives, specifically in the the training of teachers, managers and handicraft sector, and aid to the devel vocational counsellors and to the teach opment of associations and agents. ing of new technologies; Boost human potential in the fields ♦ tertiary education: employers have diffi of research, science and technology culties recruiting graduate-level techni cians. Supply can be increased, not only by expanding infrastructure, but by Total per capita expenditure on R&D is very low in attracting students to technological Portugal - about one-tenth of that in Germany and half subjects by awarding student grants. that in Spain. The main objective in the CSF of the sci Priority will be given to improving links ence and technology programme is to strengthen the between the universities and polytech participation of industry. ESF support will concentrate nics; modernising their curricula and on financing projects in the university and business ensuring that the needs of the various sectors. A large number of grants (4 200) will be allo sectors are met. cated in the field of human resources with a view to increasing the number of researchers as a proportion Under the Training and management of human of the active population. Training for ancillary labora resources’ sub-programme, a specific important mea tory staff and managers in the research field will also sure aims at strengthening and making optimal use of be given priority. Links between universities and busi training structures. Actions include training of teach nesses will be promoted and the placing of researchers ers and instructors, organisation of training centres, in businesses facilitated. employment services and management of programmes Strengthening the education and to secure a satisfactory quality of training. training systems Contributing to development through training of public officials The previous CSF made a decisive contribution to increasing the teaching and training potential in To improve the efficiency of the civil service, public offi Portugal .In spite of the progress achieved in recent cials may participate in short-term training courses, with years in the educational/training system, its develop priority given to the modernisation of services directly ment remains a top priority for Portugal. ESF actions related to the Portuguese Regional Development Plan in the current CSF focus on: and other Community-funded programmes. ♦ improving the school network, the qual ity of teaching and the interface with productive activities; 214 PORTUGAL PART 2 HPE 15 CHAPTER SECTION 4 Monitoringandfollow-up tion of the CSF. The commission is chaired by the the by chaired is commission The CSF. the of tion the for Commission Governmental the level, CSF At organisations in charge of each of the Structural Structural devel regional the for of Director-General the under CSF, each the of charge in of representatives organisations grouping Commission’ ‘Monitoring A Administration. Fundos all of dos representatives (Comissao Coordenagao comprising Funding de Communitarios) Community of Governamental s Coordination re tu c tru s n tio ta n e m le p Im At ESF level, responsibility belongs to the Ministry for for Ministry the to belongs responsibility level, ESF At opment. M inister of Central Planning and Public Public and Planning Central of inister M implementa the for responsible is ministries, involved ae en e-p ih pcfc competencies: specific with set-up been have of management overall the for responsible is Funds, Employment and Qualification. Four organisations organisations Four Qualification. and Employment ♦ the Commission for ESF Coordination: Coordination: ESF for Commission the ♦ DFE Dprmn o EF far) in Affairs): ESF of (Department DAFSE ♦ EP Isiue o Epomn and Employment for (Institute IEFP ♦ ♦ DGEFP (General Directorate for for Directorate (General DGEFP ♦ financial issues as well as information information as well as issues financial charge of overall financial management, management, financial overall of charge Fundo do Coordenagao de (Comissao f l EF atr. t ste iet inter direct the is It matters. ESF all of for unit central the is it CCFS) Social: erustre te bodies; other three regroups and management guidelines, policy in studies; tion, rgamn ise. h CCFS The issues. for programming Commission European the of locutor oainl riig policies. training the vocational of charge in Training): Vocational evalua policies, training vocational and information, control and monitoring of of monitoring and actions; ESF control information, mlmnain f h epomn and employment the of implementation employment elaborating of Training): charge in Vocational and Employment tion of the CSF, each form of assistance (OPs, global global (OPs, sub-programmes. assistance main of and form grant) implementa each CSF, the the of monitors tion Committee Monitoring The the Department of ESF Affairs, the Institute for for Institute the Affairs, ESF of Department Commission, European the the Committee: the in part take programmes. and/or CSF the to the of changes basis the on field assessments the in interim progress produce monitor and to assistance, structural es itte m m o C g rin ito n o M e a te otgee uhrte cnie ta i is it that consider authorities Portuguese Operational the as tee the of managers appropriate, where the Development, Rural and Structures Agricultural bodies following the of representatives development, n o te ie einl oriaig omtes and, committees coordinating regional five the of and necessary any prepare CSF, the in defined indicators dination. commit monitoring the of part not are partners Social Central the for the Directorate-General Treasury, the the Department, for Planning General Directorate- regional for Director-General the of chair the Under of forms various the coordinate to are tasks main Its lrbss meig ihteCmiso o ESFcoor for Commission the with meetings basis, ular Programmes. councils regional five the of chairmen the Environment, interventions. Nevertheless, they are part of the the of part reg a on are attend, and they Committee ESF Social and from Nevertheless, Economic benefit they that fact interventions. the with incompatible T CHAPTER 16 Spain SECTION 1 Economic and labour market situation at the time of programming of Community structural funding for the period 1994-1999 Economic situation Labour market In 1993, the national unemployment rate was 23.9% After enjoying a period of growth in the late and by 1994 it had reached 24.3% . This was more than double the European average of 10.6% and the 1980s, recession hit the Spanish economy at the highest rate of unemployment in the EU. Women and young people were among the groups hardest hit. In beginning of the 1990s and reached a low point in 1993, 27.4% of the working population of women 1993/1994. Whilst inflation took a downward were unemployed (compared with 16.7% of men), and 43.5% of them where young women. The rate of path, the economy was hampered by a high public unemployment among young people as a whole was 41.3% . The population of working age had grown very sector deficit amounting to 7.5 % of GDP in 1993, quickly, reaching around 12 million people in 1992, especially among women and young people, but the and spiralling levels of public debt, which had labour market had been unable to absorb this rise, even during the growth years. Coupled with employ reached the equivalent of 63.5 % of GDP by 1 994. ment levels well below the Community average and the loss of jobs caused by the recession, this contributed Growth fell in 1993 with a reduction of 1.2% in to the serious unemployment situation. GDP. The result was a loss of jobs and severe Long-term unemployment (people out of work for more unemployment. than a year) was a severe problem, affecting 49.8% of all unemployed. Again women were badly affected; the long-term unemployment rate for men was 38.4% , but for women it was 56.2% and one third of women remained unemployed for two years or more. The unemployment problems were exacerbated by skill shortages, the mismatch of qualifications with the needs of the labour market and the scarcity of people with professional and technological expertise. This was exemplified by the fact that many job vacancies in a wide range of specialist occupations were not filled and by the major rise in the required qualification lev els. Rapid changes in job techniques and technology EUROPEAN SOCIAL FUND 215 and failure to keep up with the pace of those changes, 99.8% of firms having less than 250 employees and only served to heighten the problems. Not only did 93% less than 10. Their investment in continuing these changes make labour less intensive, causing a training was negligible. loss of jobs in traditional sectors such as agriculture, but they also placed new demands on an ill-equipped Awareness of the deficiencies in education and training work force. led to a great effort by the Government to remedy the situation. Despite the gloomy overall picture in Deficiencies in education and training were the cause 1993/1994, some inroads had been made over the of the under-development of human resources. In period 1989-1993; the number of people attending 1993, 63.7% of Spaniards over 25 had not gone training programmes had risen, as had the number of beyond primary education (compared with the 16-19 year olds attending school, and education levels European average of 17.2%), while the proportion of among 15-24 year olds were raised to the Community the population with secondary and higher education average. was half the European average. In 1994, 26.9% of young people left school without any qualifications. Job creation and reducing unemployment were the eco Just 10.4% of the work force had undergone any tech nomic and social policy goals in the Spanish nical/vocational studies and only 3.4% were actually Government's Convergence Plan of 1992 (revised in undergoing training. Very few Spanish workers in 1994). It emphasises the importance of boosting employment had attended vocational training. The capacity to generate employment to integrate new lack of a continuing education tradition was reflected workers into the labour market and counter the high in the lowest investment level in this sector in Europe. level of unemployment. An essential feature is to tap Nearly all training of workers took place in major firms. into the vast human resources which exist in Spain by However, SMEs employ 64% of Spanish workers, with eliminating the deficiencies in education and training. SECTION 2 Structural Fund programmes in Spain A. Allocation by Fund and Objective Spain qualifies for Structural Fund assistance under Additional assistance amounting to ECU 2.6 billion is the EU-wide Objectives 3 and 4 and under the regional allocated to Spain through the Community Initiatives. Objectives 1, 2, and 5b. During the period 1994- Spain is also one of the four Member States to receive 1999, Spain will benefit from total structural funding assistance from the Cohesion Fund, amounting to ECU amounting to ECU 32 billion. The ESF portion 8 billion over 1994-1999. amounts to ECU 9 billion, around 27% of total alloca tions. Spain is the leading beneficiary of the ESF with a share of 27% of the total budget. BREAKDOWN OF ASSISTANCE BY OBJECTIVE AND SOURCE OF FUNDING 1994-1999 Ecu million - prices valid at time of Decisions Total Structural Funds ESF ERDF EAGGF FIFG Objective 1 26300 6047 15944 3314 995 Objective 2 2615 612 2002 1994 - 1996 1130 260 870 1997 - 1999 1485 352 1132 Objective 3 1474 1474 Objective 4 369 369 Objective 5a Agric. 326 326 Objective 5a Fish 120 120 Objective 5b 664 89 161 415 Total 31868 8591 18107 4055 1115 Community Initiatives Employment 450 411 39 Adapt 293 267 26 Others 1917 69 1582 2423 23 Total 2660 747 1647 2423 23 General Total 34528 9338 19754 6478 1138 BREAKDOWN OF ALLOCATION BY FUND (excluding Community Initiatives) EAGGF 57% CHAPTER 16 < Q. Objective 4 Objective 5a 83.1% BREAKDOWN OF ESF ALLOCATION BY OBJECTIVE Objective 4 Objective 3 4.3 % 17.3% Objective 5b 1 . 1% Objective 2 &5% Objective 1 70.8% The Spanish authorities have adopted two approaches, CSFs with Operational Programmes (OPs), in respect of assistance under Objectives 1, 2 and 3, and ‘Single Programming Documents’ (SPDs) under Objectives 4 and 5b. In addition there are OPs for the Community Initiatives. The programming documents involving the mainstream ESF are as follows: Objectives 1 1 CSF and 18 human resources OPs (10 regional and 8 multiregional) 2 1 CSF 1994-1996 and 8 OPs, 1 CSF 1997-1999 and 8 OPs 3 1 CSF and 11 OPs; 4 multiregional and 7 regional 4 1 SPD 5b 7 SPDs B. Main features of the ESF The purpose of this law is to provide for compulsory school attendance up to the age of 16 and the intro component in the Structural duction of vocational training into secondary education. Fund programmes The National Programme for Vocational Training, of 3 March 1993 aims to: ♦ overhaul vocational training provision EU-wide Objectives 3 and 4 - and improve the quality of the voca involving only the ESF tional training system; ♦ identify the demand for training accord ing to the needs of the labour market; ♦ rationalise training provision by redis OBJECTIVE 3 tributing responsibilities between MEC and INEM. MEC is responsible for edu Combating long-term unemployment and cational administration (regular voca facilitating the integration into working tional training), whereas INEM deals with work administration (vocational life of young people and of persons training which is part of the ‘PLANFIP’ exposed to exclusion from the labour - the multiregional, vocational training market; promoting equality of opportunity and integration programme); ♦ introduce a national certification system and an education/work authority coordi nation unit. The Objective 3 CSF for 1994-1999 provides assis tance of ECU 1.5 billion, which is 17.3 % of the total The CSF reflects the objectives of LOGSE and the ESF allocation to Spain. The CSF relates to the National Programme for Vocational Training and also, autonomous communities of: Aragon, Islas Baleares, the Spanish Government's policies boosting employ Catalonia, Madrid, Navarra, Pais Vasco and Rioja. ment, equal opportunities, training for disadvantaged groups and the decentralisation of vocational training, The ESF allocation is spread across a multiregional all of which are in harmony with ESF Objective 3. financing plan (ECU 1.1 billion) and seven regional financing plans (ECU 407.7 million). The regional financing plans include seven regional OPs, which are administered by the autonomous communities them Priorities selves. The multiregional financing plan includes four multiregional OPs, which are administered centrally by: ESF activities centre around four priorities which apply the National Institute of Employment (INEM), the both at multiregional and regional level. The priority Ministry of Education (MEC), autonomous organisations areas indicate the groups identified as most in need: and the local and university administrations. The OPs of young people under 25, the long-term unemployed, INEM and MEC are substantial; INEM manages around women and people with disabilities, and others vulner ECU 614 million of the multiregional financing and the able to exclusion, such as migrants. The priorities, Ministry of Education, ECU 328.8 million. The which correspond to the four ESF policy aims of autonomous organisations manage about ECU 33.9 mil Objective 3, are as follows: lion and the local and university administrations, ECU 90 million. Priority 1 The CSF is based on active Spanish labour market Facilitating the occupational integration of unem policies - facilitating and improving access to the ployed persons exposed to long- term unemployment labour market and enhancing vocational qualifications. In this context Spain has developed the following Priority 2 instruments to improve education and training systems Facilitating the occupational integration of young peo and reinforced measures to enhance employment. ple in search of employment The Organic Law on the General Education System (A high level of concentration of ESF aid is directed to 1/1990 (LOGSE) of October 1990. this priority reflecting the special need to combat the high levels of youth unemployment and integrate young people into the work environment, especially those without work experience) 1 6 Priority 3 Beneficiaries Promoting the integration of persons exposed to exclusion from the labour market The goals of the CSF over the programming period 1994-1999 are-. Priority 4 ♦ to implement the Youthstart guarantee, Promoting equal opportunities for men and women on set out in the White Paper on Growth, the labour market. Competitiveness and Employment, to pro vide schooling or training up to 18 years; Women benefit from all the priority areas and are ♦ to achieve an 80% pass rate in the expected to make up 60% of beneficiaries of schemes school-leavers' certificate group (16-18); under the CSF. The focus here is on women returning ♦ to provide vocational training for 20% of to work or in sectors where they are under-represented. pupils in compulsory secondary educa tion and 20% of pupils completing the Technical assistance is envisaged within these priority areas. school leavers certificate; ♦ a 7.5-11.7% increase in the employed M easures population, and, ♦ a 4-4.5% reduction in unemployment, The ESF supports five categories of activities which especially among young people, and in cover a range of measures: the duration of unemployment ♦ aids to employment 20.4% ♦ vocational training 38% ♦ workshop schools 22.3% Key point*; - Objective 3 ♦ training in schools 27% ♦ technical assistance 2.3% ♦ 17.3% of ESF aid to Spain ♦ nearly half goes to programmes for young people ♦ concentrates on technologi cal and specific vocational BREAKDOWN OF ESF ALLOCATION training in new employment BY PRIORITY - OBJECTIVE 3 sectors ♦ nearly two thirds of Priority 1 beneficiaries are women O B JE C TIV E U Facilitating the adaptation of workers to changes in production systems Priorities ecu million 1 Persons exposed to long- term unemployment 499.3 The total ESF allocation under the 1994-1999 SPD for 2 Integration of young people 725.8 Objective 4 is ECU 368.6 million, equivalent to about 4.32 % of all ESF aid to Spain. The SPD covers the 3 Persons exposed to exclusion 187.6 regions of: Aragon, Islas Baleares, Catalonia, Madrid, 4 Promoting equal opportunities 61.7 Navarra, Pais Vasco and Rioja. PART 2 CHAPTER 16 SPAIN The SPD was drawn up in accordance with national pol Priorities icy, based on social partnership, aimed at providing workers with a high level of qualification. This policy was The SPD focuses on three priority areas for ESF action embodied in the National Agreement on Continuing which correspond to the policy aims of Objective 4: Education signed by enterprise federations and trade unions on 16 December 1992 and supplemented by the Priority 1 Agreement on the Continuing Education of Employed Anticipation, guidance and advice. Workers between Government and employers. ESF actions are complementary to and develop those ECU 22.2 million is devoted to anticipatory measures being taken at a national level by the Foundation on related to establishing an information system to fore Continuing Education (FORCEM), a partnership between cast trends and needs and a further ECU 14.7 million representatives of employers and workers created to to guidance and advice measures for preparing and implement the continuing education programme. developing training plans. The core of ESF actions under the SPD reflects that of Priority 2 national actions by focusing on: Continuing education and training of workers. ♦ the importance of continuing education to increase the skill levels of Spanish The high concentration of funding on this priority area workers (essentially in SMEs), to adapt (83%) reflects the need to remedy the low level of them to meet the demands of industrial investment in continuing learning by SMEs. change, improve the competitiveness of the businesses which employ them and Priority 3 to prevent job losses; Technical assistance. ♦ redressing skill shortages in certain regions and weaknesses in continuing ESF action gives priority to projects for: SMEs, workers education and training due to lack of with a low skills base or threatened with unemploy investment by SMEs; ment, and those who are most vulnerable to industrial ♦ the need to have a solid organisational change because of having unsuitable qualifications. system in place. The importance of women in SMEs is highlighted. The SPD takes a global approach with the object of establishing a wide-reaching system of continuing In order to increase awareness of and access to continuing learning on a solid foundation. FORCEM is working to education and training, focus is given to measures open to achieve the aims of the SPD, reflecting the culmination all employed workers and which include as many enter of national efforts to make continuing education avail prises as possible. There is also an emphasis on measures able through the partnership of all concerned. that improve the quality of training, use new approaches in method or content, and which provide a solid base by set ting up a coordinated organisational structure. BREAKDOWN OF ESF FUNDING BY PRIORITY - OBJECTIVE 4 Priority 3 Priority 1 Key points - Objective k ♦ 80% of aid goes to SMEs ♦ anticipating training needs and qualifications ♦ setting up solid organisational structures ♦ priority to schemes for Priority 1 Anticipation and guidance and advice vulnerable workers, Priority 2 Continuing education and training of workers SMEs and women Priority 3 Technical assistance EUROPEAN SOCIAL FUND 221 Regional Objectives In which the ESF integrates with other Structural Funds Priorities OBJECTIVE 1 The ESF component under Objective 1 concentrates on six priority areas-. Development of the least ♦ strengthening the educational and voca prosperous regions tional training provision by implement ing the objectives of the LOGSE and National Vocational Programme (22.5% of ESF aid); The greatest proportion of ESF aid to Spain in the ♦ training in the RTD sector (2.7%); period 1994-1999 is for Objective 1, amounting to ♦ Continuing education and training of ECU 6 billion, representing 23% of total Structural workers (10.3%); Fund aid and 71% of all ESF assistance to Spain. The ♦ integration and reintegration of the CSF includes a multiregional sub-CSF implemented at unemployed into the labour market national level and ten regional sub-frameworks for the (55.5%); relevant autonomous communities. Currently, eighteen ♦ integration of disadvantaged groups ESF-related OPs have been adopted, including ten such as persons with disabilities and ex regional OPs. prisoners (8.2%); ♦ technical assistance, monitoring, evalu The Objective 1 area accounts for 77% of Spanish ter ation and information (0.8%). ritory and 59.4% of the Spanish population. It embraces 12 regions: Andalucia, Asturias, Las Islas A range of measures is used to achieve these priorities Canarias, Cantabria, Castilla-La-Mancha, Castilla-y- including: vocational training; employment aids; Leon, Ceuta, Extremadura, Galicia, Melilla, Murcia, recruitment aids; job creation programmes; guidance, and Valenciana. While there are regional variations, advice and information and the training of teachers and there are common problems affecting the area as a instructors. whole: sparse population density; low per capita income; poor productivity; skill shortages; deficiencies in education and training; and a lack of competitive ness. Remoteness from the economically wealthier tey points - Objective 1______parts of Europe also contributes to very high unem ployment in certain regions. ♦ 71% of ESF aid to Spain The human resources actions aided by the ESF work in ♦ covers 77% of Spanish combination with the ERDF to develop the economies territory of these regions. ♦ 75% of ESF aid concentrated on strengthening technical Given the high unemployment levels and gaps in edu and vocational education and cation and training, three-quarters of ESF aid is allo cated to human resource actions supporting Objective integrating job-seekers 3-type measures. These include promoting technical ♦ emphasis on human vocational education (ECU 1.4 billion) and the integra resources in RTD, science tion of job-seekers (ECU 3.3 billion). The balance and innovation and the envi assists Objective 4-type measures such as schemes for ronment continuing education/training and training in certain sectors such as the environment, RTD and at local level. SPAIN I Objective 1 ■ Objective 2 □ Objective 3 □ Objective 4 ■ Objective 5b Asturias Cantabri, Le6h Orense Palencia Navarr; Zamora Salamanca Aragon Barcelona Teruel Cuenca Castilla - La Mancha Castellbn :madui Ciuttad Real Valencia V Cornunidaq Valenciana\ Alicante Huelva ,Murcia Almeria EUROPEAN SOCIAL FUND 223 P rio ritie s OBJECTIVE 2 The ESF funding concentrates on: ♦ supporting employment and competi Converting the regions seriously affected tiveness of enterprises (52%); by industrial decline ♦ assisting local and urban development (27%); ♦ research, technology and innovation (20%); The Objective 2 area covers parts of: Aragon, Catalonia, ♦ technical assistance (0.7%). Pais Vasco, Madrid, Navarra, Rioja and Islas Baleares. These regions are mostly located in the north-east of The 1997-1999 CSF added a role for the ESF in: Spain and contain 7.9 million people or 20.3% of the Spanish population. Protecting the environment by investing in training and the qualifications required for its development and pro A CSF for the period 1994-1996 was approved on the tection; support for hiring specialist personnel in this 20 December 1994 and comprised: field; and training to help environmental researchers. a multiregional sub-CSF, managed by the national authorities, and M easures seven regional sub-CSFs implemented by the autonomous communities. The ESF measures are focused on: vocational and con tinuing training including retraining for workers, Eight OPs were approved: employers and managers; guidance, advice and infor mation; employment support and services; the training seven multifund (ERDF and ESF), one per region, and of instructors and support for research centres. one single fund (ESF) multiregional, devoted solely to SMEs are specifically targeted, especially, workers iri training measures. firms threatened with unemployment or where workers have lost their jobs. About 15.3% of ESF assistance is managed at national level and 84.7% regionally. A second CSF and eight OPs, following the same structure, were approved for ley points - Objective 2_____ the period 1997-1999. Total Structural Fund aid to the Objective 2 regions for ♦ 6.5% of ESF aid to Spain the period 1994-1999 amounts to ECU 2.615 billion. ♦ focus on SMEs, workers The ESF component is ECU 612 million, equivalent to threatened with redundancy about 23% of overall structural funding to Spain under and the unemployed this objective. While the specific problems of the regions vary, there are common regional characteris ♦ emphasis on human tics; such as poor infrastructure; an imbalance between resources for RTD, the needs of enterprises and the level of qualifications technology, innovation and of the work force; low standards in vocational training; the environment low levels of investment in industrial restructuring, RTD and innovation and high unemployment. CHAPTER 16 SPAIN Human Resource component of OBJECTIVE 5b Community Initiatives The ESF also plays a significant role in the The development and structural Employment Community Initiative and its four strands: adjustment of rural areas NOW, HORIZON, YOUTHSTART (which is particularly important to the implementation of LOGSE and the National Vocational Programme) and INTEGRA. Through this Initiative, Spain receives an EU contribu Total Structural Fund allocations to Spain under tion of ECU 460 million of which 411 million from the Objective 5b for 1994-1999 amount to ECU 664 mil ESF, to support transnational projects to foster the lion with about 14% (ECU 88.7 million) coming from development of best practice through innovation, the ESF. Seven multifunded SPDs were approved, one transnational co-operation and local partnerships. each for: Aragon, Islas Baleares, Catalonia, Madrid, Navarra, Pais Vasco and Rioja. A common characteris Under the Adapt Initiative, the Union provides ECU tic of these rural regions is low population density, (less 293 million of which 267 from the ESF, to stimulate than 20 persons per square kilometre). Together they continuing training provision. cover 13.5% of the country, but represent just 6% of the total population. In addition, the ESF allocates amounts totalling ECU 69 million, through other Community Initiatives as fol The aim of the SPDs is to modernise and diversify the lows : Interreg, Konver, Leader, Pesca, Rechar, Regis, economies of the regions and boost employment, with Resider, SME and Urban. variations to reflect the specific needs of each region. The ESF works with the ERDF to achieve this by invest ing in human resources to support employment, growth and stability and to boost research, science and tech nology. About 67% of ESF assistance is devoted to training and 21% to employment aids. P rio ritie s The ESF concentrates on developing human resources especially in the agrifoods, forestry, transport and tourism sectors by supporting: ♦ Training of workers involving distance learning, management, production sys tems, product innovation and agricul tural diversification; measures to improve access to training and combat isolation - (62.8% of ESF aid under this Objective); ♦ Aids for employment - (13.2%); ♦ Assistance in the field of scientific and technological RTD - (14.2%); and ♦ Technical assistance, guidance and counselling - (9.8%). ■ley points - Objective 5b______ ♦ 1% of ESF aid to Spain ♦ covers 6% of the population ♦ priority sectors - agrifoods, forestry, transport and tourism ♦ training in RTD, innovation and new technology EUROPEAN SOCIAL FUND 225 _____ PAR T 2 W g g M CHAPTER 5 < SECTION 3 Programme content and ESF policy aims A. Vocational integration of Measures people threatened with Measures supported by the ESF focus on: ♦ vocational training and distance training long-term unemployment in modular form for those threatened with long-term unemployment. The aim Long-term unemployment had become a serious is to develop their knowledge base so problem in Spain by the end of 1993 with people they can join the labour market or go on out of work for more than one year representing to specific vocational training; 49.8% of all unemployed. Women, young people ♦ vocational training activities that provide and older age groups were heavily hit. Grappling recognised specific and basic qualifica with long-term unemployment is fundamental to tions in the occupations most in demand national policy. With aid amounting to around 45% and in the skills that meet innovations in of the total cost of national labour market projects, the production systems of the most the ESF plays a vital part in assisting and building promising sectors. on national efforts. Back-up and technical assistance Vocational training schemes These measures are intended to put in place strong A major strand of Spanish policy is to improve the structures and services which pave the way for quality and administration of the vocational training training schemes. A range of measures is available systems, in order to remove barriers to the integra including: tion of the unemployed. This is reflected in the ♦ revising training course content and edu National Programme for Vocational Training cational methodology; ♦ developing teaching materials and The PLANFIP vocational training and insertion pro equipment; surveys, sectoral studies and gramme managed by INEM (and certain regional observation units for employment such authorities), which is complemented by the regional as the ‘El Observatorio Permanente de la OPs, and, to a lesser extent, the MEC programme, Evolucion de las Ocupaciones’ (labour help to implement the aims of the National market observatory); Vocational Training Programme. ♦ assessing the unemployed; ♦ vocational guidance, information and These programmes aim to provide vocational train advice on job opportunities, and, ing to the unemployed in order to-. ♦ training teachers, instructors, training ♦ ensure that people threatened with long managers and development officers. term unemployment are equipped with the skills and qualifications they need in Innovatory projects the areas of work most in demand on the labour market; and Since 1996, the ESF has contributed to the intro ♦ increase their opportunities to integrate duction of the integrated pathways of national into their local job market. employment policy by co-financing SIPES (Servicios Integrados del Empleo - integrated ser Around ECU 1.2 billion of ESF aid is allocated to vices for employment). This is an initiative sup this type of training under both Objectives 1 and 3 ported by INEM which involves the establishment and ECU 490 million to the complementary of partnerships between local authorities and pro regional programmes. fessional associations. SIPES, the most important project in Spain in rela tion to the development of integrated pathways to employment, is a key tool to promote active employ ment policies for the local needs of a given territory or target group. The programme provides for the fol lowing services: personalised employment and train ing plans; information on labour market trends; per sonal skills development; active job search assis tance and guidance for self-employment. Employment aids involving training in work centres which are devel oped in a real production setting. The student can The Spanish approach is to support schemes that experience the activities and specific functions of stimulate job creation and promote jobs for unem the different types of work activity involved in a ployed people. A range of measures is available but given job, and learn the productive process and particular emphasis is placed on incentive schemes business relations connected to it. The student is for promoting socially useful work, local employ guided by two means, one designed by the study ment initiatives, especially for SMEs, and new centre and the other by the work centre. The educa opportunities in the environment field. Improving tion centres make agreements with business or asso business-capacity and the encouragement of self- ciations of entrepreneurs in order to develop the employment for the unemployed are also promoted. effectiveness of the training in work centres. Aid is also available for schemes that support Social guarantee programme recruitment to facilitate employment for those who are between 25 and 29, people with little or no As part of the implementation of the National work experience, the long-term unemployed over 45 Vocational Training Programme, the ESF supports a and long-term unemployed women. scheme under the MEC programme which is aimed at integrating young people of above 16 years who have abandoned school and who have no qualifica B. Vocational integration tions or are disadvantaged. This programme guar antees them work experience and training so they of young people can either return to education or integrate into employment. It includes two types of measures: In 1993, 41.3% of the working population of all ♦ a qualification corresponding to secondary young people under 25 were unemployed. A major education (basic training) enabling them problem was that a large number of young people to integrate into society; and had abandoned the education system, without ♦ a skills qualification likely to lead to obtaining adequate qualifications, immediately run employment. This is achieved through ning the risk of unemployment. About 24.4% of the use of initial vocational training and those who left school without qualifications were apprenticeship modules including train unemployed. More and more, however, the risk ing in the work place. applied equally to young people who had university or other technical or professional training, because Vocational training for integration all too often their skills did not meet the require ments of the labour market. This often occurred as Workshop schools and apprenticeshipcentres a result of the tendency of young people, particularly ‘Escuelas Taller Y Casa De Oficios’, the school women, to choose training in traditional rather than workshops and apprenticeship centres programme, new employment sectors or because their qualifica started experimentally in 1985 under the direction tions failed to keep pace with technological innova of INEM. This ‘learning by doing’ tool constitutes a tions and changes in the production system. major part of Spanish policy to create jobs for unemployed young people and integrate them into Spain therefore attaches great weight to this ESF the labour market. policy aim and has been taking steps to implement the objectives of the LOGSE and the National The workshop schools programme is managed by Vocational Training Programme, to bridge the gap INEM for both the Objective 1 and 3 regions. The ESF between school and work and guarantee that young co-finances the programme with ECU 506 million. people can achieve recognised qualifications and The programme combines formal training with practi skills, to ease their integration into employment cal work experience, aiming to foster job creation for and to encourage job creation. young people by providing them with a qualification and entrepreneurial skills. The programme targets Vocational training in the educational sys 55,000 job-seekers under the age of 25 with no qual tem ifications and concentrates on providing training of a Specific vocational training practical nature leading to a qualification in occupa Following LOGSE, training in the workplace has tions linked to the rehabilitation and conservation of been introduced as part of specific vocational train artistic, cultural, urban and environmental heritage. ing in Spanish secondary school education. The ESF This helps to develop local potential and revive arts co-finances schemes under the MEC programme, and crafts which have almost disappeared. Back-up measures However, special measures have been put in place to address their specific needs. These include: To pave the way for vocational schemes, a range of specific vocational training, preparation for further measures is supported including the: training and upgrading skills and facilitating inte ♦ revision of modular systems on the basis gration through work in the community and local of sectoral studies; opportunities. ♦ introduction of technological modules into secondary education and school Employment aids leaving courses and basic technology in training in schools; In addition to women and young people, the ESF ♦ development of sandwich courses, prac contributes to employment schemes to promote tical experience, upgrading of careers access to the labour market for people over 45 and advice, grading of applicants; people with disabilities (ECU 1.4 billion both for ♦ establishment of a system of national Objectives 1 and 3 at multiregional level and ECU certification of qualifications; 406 million for complementary regional pro ♦ training of teachers. grammes). INEM, the leading implementation body for this type of measure, aims to encourage perma Employment aids nent jobs for these groups, complemented by regional employment aid schemes targeted to local The programmes provide for recruitment incentives and regional needs. The range of measures avail aimed at: promoting stability in employment by able includes: vocational guidance, information, converting apprenticeship and training contracts job search and financial aid for job seekers. These into permanent jobs and encouraging permanent are integrated with the training of instructors, guid employment for the young long-term unemployed. ance personnel and teachers. A range of measures applies, focusing on schemes Migrants' programmes promoting local initiatives, involving the appoint ment of development officers and fostering employ The ESF supports a programme of the Department ment within the social economy. of Immigration (under the Ministry of Labour and Social Affairs) which is targeted at returning immi grants who find it difficult to re-integrate into the C. Integration of persons labour market. The measures include specific train ing or financial aid to help them become self- at risk of exclusion from employed. Assistance is also given by way of guid the labour market ance, information and training, including tuition in the language and culture of Spain, to promote self- The poor socio-economic situation and increasingly employment and geographical mobility. selective labour market has given rise to the exclu sion of certain groups whose situation as long-term Persons uuith disabilities unemployed is made worse by the fact that they have ESF support for people with disabilities includes disabilities, or they are gypsies, drug addicts or ex the following measures : prisoners. Often they are people with learning d iffi ♦ supporting infrastructure (guidance, culties or who have inappropriate or insufficient skills training of trainers, removal of barriers to and qualifications. mobility); ♦ supporting specially tailored occupa The number of recipients of disability benefit tional vocational training to increase job increased nearly 800% during the period 1987- prospects and develop skills, particularly 1993; the unemployment rate for people with dis in electronics and community services; abilities stood at 24.7 % in 1993. With the ♦ providing aid including financial subsi increase in foreign workers and requests for asylum dies and technical assistance, to pro reaching around 1000 per month, Spain gives spe mote stable jobs for people with disabil cial priority to people with disabilities and to ities; and migrants. Obviously these groups can benefit from ♦ providing aid to assist the establishment the range of measures under the other policy aims. of special employment centres. D. Promotion of equal E. Anticipation of labour market opportunities in the labour trends and adaptation of market between men worker skills to change and women Recognising the deficiencies that exist and coin ciding with the policy aims under Objective 4, a Spain has undergone great social, culture and eco major strand of Spanish policy is to promote, nomic changes over the last few decades which through FORCEM and involving the partnership of have seen the emergence of a vast number of all those involved, a national system of high quality women seeking work. Regrettably, Spain has not continuing education for workers, especially those been yet able to integrate these women into the in SMEs. The ESF is called upon to support, imple labour market and, generally speaking, Spanish ment and extend this policy. Measures are directed women are in a particularly poor situation; they are at increasing awareness of the continuing training affected by high levels of unemployment, particu needs in SMEs and improving quality and support larly long-term. systems. Difficulties arise not only because women often Continuing education have breaks from employment but also because when they return to the labour market often their The SPD devotes the bulk of ESF aid to direct training does not match requirements. Women also assistance for carrying out continuing education tend to choose training in limited traditional areas schemes. Measures provide: and not in the more technical or business related ♦ finance to implement training schemes fields. in enterprises (separately or in partner ship with others) with preference for The problems experienced by women are, in many SMEs, workers with inadequate qualifi respects, addressed by actions under the three pre cations and women, and vious priority areas. Under this priority however, ♦ subsidies for individual training leave provision is made for measures related to the spe leading to a recognised qualification. cific needs of women such as the training of instructors. The ESF supports the programme of the Anticipation, guidance and advice Women's Institute which includes measures tai With the concept of continuing training being rela lored to the specific needs of women to reduce tively new, Spain pays particular attention to antic inequalities on the labour market and promote their ipation. The Spanish approach is to help establish access to it. systems which provide constant information flows Measures to develop training plans responding to changes in production systems and skills. The following complementary measures are pro vided: The measures focus on: ♦ guidance, advice, support and follow up; ♦ research and surveys, forecasting skill ♦ innovative vocational training for women and production system trends; related to their special difficulties and ♦ planning, study, debate and the adapting them to new techniques and exchange of experience (meetings, sem qualification profiles; inars, international cooperation); ♦ training to promote and develop entre ♦ training tools, allowing access to a train preneurship among women; ing process for trainers as the key to ♦ assistance for business start-ups. effective anticipation. The programme makes provision for guidance and advice to SMEs providing essentially measures con cerning: ♦ tools to assist in the planning of training; ♦ assisting implementation of plans in micro-enterprises; ♦ guidance for people undertaking training programmes. Technical assistance measures relate essentially to the creation of intermediate structures such as, committees, information systems, dissemination and exchanges of experience involving cooperation at national and international level. F. The ESF - an instrument will help establish an office for the transfer of tech nology in each university and a development agency of regional development to promote scientific potential in managers and technicians in research centres. With high levels of unemployment a characteristic com The ESF provides support for the training of mon to the whole of Spain, ESF human resources activ research workers in centres to be constructed or ities are fundamental to the maintenance and creation of enlarged with ERDF support. At multiregional level, employment and economic development. Spain's gen the programme of CICYT (Interministerial eral approach is to integrate ESF activities in the human Commission on Science and Technology) aims to resources field with the other Funds, as part of overall improve research potential in the Objective 1 regional social and economic development, taking into regions through training and advanced training for account the specific needs of the regions concerned. young researchers. Participants include university students, scientists or engineers who will be used The ESF supports activities directed at workers, in other RTD projects financed by the Community. employers, the unemployed or vulnerable workers in SMEs and in specific production sectors. Measures focus on vocational training, retraining or continuing Participants are expected to number training, particularly in new technology, guidance and almost 2000 per year. advice and employment incentives to boost job cre The ESF co finances two types of action: ation. ♦ basic training, postgraduate training; raising the skill levels of people with The ESF is also supporting an innovative measure to doctorates; advanced training for the boost employment through increasing competitiveness. research requirements of industry; and The Ministry of Industry is promoting a programme ♦ training programmes abroad: introducing under Objective 1 to encourage the introduction of young Spanish researchers to the inter quality management systems in SMEs through basic national network (maximum period 24 and further training of workers. The aim is towards cer months) through postgraduate training tification under EN 9000. Similarly, there is a measure and advanced post-doctorate courses. to train laboratory workers in quality systems to pro mote conformity with EN 45000 and eliminate techni The programme of the National Agricultural cal barriers to trade in the single market. Investigation Institute (INI A) aims to improve agri Etoost human potential in the Fields cultural research and favour the introduction of new of research, science and technology technologies. The beneficiaries, expected to number almost 1200 during the programme, are university students, researchers and INIA personnel. The ESF Massive efforts to reduce the technology gap and also co-finances grants for research up to post-doc- increase human resources in this field have already torate level and aid for retraining personnel in agri taken place. Despite this, human resources tend to cultural research centres. be underdeveloped as compared with the rest of Europe. The Spanish approach to enhancing the The Castilla-la-Mancha programme contains a human resources contribution is to concentrate on development strategy in the field of research based the specific research and development needs of on boosting links between enterprises and regions and the needs of universities, technology research/technology centres. In combination with and research centres. the ERDF, the ESF supports training actions for Coinciding with the policy aims of the ESF, the researchers and personnel in enterprises working in Spanish programmes focus on measures to train the field of activity targeted by technology centres research workers, instructors and managers of set up with the help of ERDF financing. research centres, universities and companies and promote employment in research. Aid is also pro Strengthening education and training vided for training in RTD in third level institutions syste m s and RTD technology centres. In the Objective 1 regions, secondary education has Measures to encourage links between industry and been based on the arrangements introduced by the universities and to promote the transfer of know-how Spanish LOGSE, which aims to provide vocational modules in secondary schooling on two levels: basic Training For public officials vocational training and specific vocational training. Basic vocational training is included in the education Spain is conscious of the necessity for public officials system at the compulsory secondary school level (12- to upgrade their capacity in administering European 16) and at the Baccalaureat level (16-18). The development and structural policies. The ESF is sup Spanish authorities aim to establish a convergence porting measures under this programme which help to between general and vocational training to facilitate train public officials. vocational mobility. The aim is to-. The ESF assists in the implementation of LOGSE ♦ improve the functioning of regional through the programmes of MEC and the autonomous administration and use of human communities. resources; ♦ increase knowledge of the policies of the Measures European Union affecting structural development; These OPs contain the following modules:- ♦ enhance communications by improving ♦ basic technology training, as part of the knowledge of other European languages, compulsory secondary school system. The and, focus is on IT, engineering and electronics. ♦ set up information networks to maximise ♦ technological modules in basic voca the development of the region. tional training at Baccalaureat level, establishing four types of Baccalaureat and increasing the spread of options. The objective is to diversify the training on offer and respond to the needs of the employment market. ad m m 232 SPAIN hpe 16 chapter PART 2 SECTION4 Management andfollow-upManagement tional training and vocational integration plan for the the for plan integration vocational and training tional for of Ministry training The not). or basic (employed first-time population for qualification; active athe training without vocational seekers job certificate; a without women. is Affairs Social and Labour of of Ministry The 75% bulk). around the manages administration central The seventeen the between programmes, the of nature the overall the is Affairs Social and Labour of Ministry The taeis te mng aot 5 o EF assistance. ESF of development 25% regional about manage for they and strategies; them to authority gated responsi are communities autonomous seventeen The school leaving people young of people training young for adults; training and vocational regulated officially and exclusion social of risk at people disabilities, programmes ESF the of whole the across employment Social and Migrants Food, and Fisheries Agriculture, departments: central the and communities autonomous mpl aton stuct es re tu c tru s n tio ta n e m le p Im responsible for certain actions concerning people with with people concerning actions certain for responsible and training vocational of planning the for responsible organisations, independent and local INEM; Services; l fr rgams hr te oenet a dele has Government the where programmes for ble school for 4. workshops Objective for and responsible solely are FORCEM leavers. (PLANFIP), unemployed and reforms educational the for responsible is MEC also is It compliance. and evaluation control, including for responsible are FORCEM and MEC (INEM, aid ESF FORCEM. and universities to according divided, is manag for ESFassistance mainstream responsibility ing The Spain. in body managing aorad NM r rsosbefrte ainl voca national the for responsible are INEM and Labour Energy, and Industry Labour, of Ministries the MEC, Catalonia, Navarra and Pais Vasco, these include the the include these partners. Vasco, Pais social and Navarra Catalonia, partners. social the includes Committee Monitoring the sented; included. are in partners Committee social the Monitoring which ESF separate a with together t i tees e itte m m o C g rin ito n o M betv 5b Objective 4 Objective of framework the in operates Committee Monitoring a 3 Objective 2 Objective instituted been has Committee Monitoring multifund a 1 Objective atesi, ih oil n mngmn bde repre bodies management and social with partnership, Monitoring Committees have been set up in the case of case the in up set been have Committees Monitoring ESF; the to relating matters for includ partners, social established, the beening have Committees Monitoring follows: as level CSF at work Committees Monitoring PART 2 CHAPTER Sweden SECTION 1 Economic and labour market situation at the time of programming of Community structural funding for the period 1995-1999 Economic situation Labour market Up to 1990 the employment rate in Sweden, at 84%, Early in the present decade the Swedish economy went exceeded that of all other countries and male exceeded female participation by only four percentage into the deepest recession experienced since the points. Unemployment rose to an unprecedented level by Swedish standards during the recession and 1930s, with a fall o f 5% in GDP between 1990 and affected mostly young people. The employment rate 1993. This was accompanied by a severe deterioration had dropped to 71.7% by 1994. Around 72% of the male and 71% of the female working population were in public finances, a fall in revenue from taxation, employed in 1995, but 40% of women worked in the public sector and numbers of women in part-time increased public expenditure on labour market mea unemployment tripled between 1990 and 1994. Labour market trends were indicating increases in sures, and a reduction in public demand. The recession numbers hired for limited terms or recruited for tem porary increased work loads, reflected in greater use of bottomed out, however, in 1993 and a steady improve overtime. This contained the risk of the labour market being divided into two tiers consisting of a core of per ment began, with industrial output in 1994 matching manent jobs combined with many on short fixed term that of the boom year, 1989. contracts. At the same time, growth was becoming less labour extensive, under the influence of new produc tion methods and information technology. The Eurostat unemployment rate for Sweden in 1994 was 9.8%. Under the national definition, the rate was 8.2% (17% for young people). By 1999, unemployment is expected to be down to 5-6%. Long-term unemployment, lower in Sweden than in most other countries, increased sharply in 1994, and growing numbers alternated between unemployment and participation in labour market programmes. SECTION 2 Structural Fund programmes in Sweden A. Allocation by Fund and Objective Sweden qualifies for structural funding under Objectives 2, 3, 4, 5 and 6. Its total allocation for the period 1995-99 is ECU 1.2 billion (see table below) of which the ESF is more than 50 % (ECU 652 million). Additional assistance amounting to ECU 125 million is allocated to Sweden through the Community Initiatives. BREAKDOWN OF ASSISTANCE BY OBJECTIVE AND SOURCE OF FUNDING 1995-1999 ECU million - prices valid at time of Decisions Total Structural Funds ESF ERDF EAGGF FIFG Objective 2 160 38.3 121.7 Objective 3 347 347 Objective 4 173 173 Objective 5a Agric. 90 90 Objective 5a Fish 40 40 Objective 5b 138 29.5 68.5 40 Objective 6 252 63.9 122.6 61.3 4 Total 1200 651.9 312.8 191.3 44 Community Initiatives Employment 24 24 Adapt 13 13 Others 88 22 55 9 2 Total 125 59 55 9 2 General Total 1325 710.9 367.8 200.3 46 BREAKDOWN OF ALLOCATION BY FUND (excluding Community Initiatives) The Swedish authorities opted for the Single Programming Document (SPD) approach. Thirteen pro grammes are involved, all of which include the ESF. In addition, there are eight operational programmes for the Community Initiatives, all of which also include the ESF. BREAKDOWN OF STRUCTURAL FUND ALLOCATION BY OBJECTIVE Objective 6 BREAKDOWN OF ESF ALLOCATION BY OBJECTIVE Objective 6______9.8% Objective 5b______4.5% 236 SWEDEN HPE 17 CHAPTER 4% BETV 3 OBJECTIVE ^ Priority3 Priority 4 h Ojcie porme wih a aotd n 6 on adopted was which programme, 3 Objective The the to goes allocation Swedish the of 75% almost that pl i al regions. all in apply means it allocation 4 3. Objective Objective for the is to added 1995-1999 When period the for Sweden RADW O EF UDN B PIRT - BETV 3 OBJECTIVE - PRIORITY BY FUNDING ESF OF BREAKDOWN horizontal Objectives of the Structural Funds which which Funds Structural the of Objectives horizontal in v o lv in g o n ly th e ESF ESF e th ly n o g - in s lv o v ctive in je b O EU-iniide eebr 95 ih ersetv efc t 1 July 1 to effect retrospective with 1995 December which and Fund Social European the solely involve for ESFallocation the of million) 347 (ECU half Nearly . anfaue fte ESF the of features Main B. 95 supports: 1995, .Tcncl assistance Technical 4. . aor akt nerto o pol a rs o exclusion of risk at people of integration market Labour 3. unemployment long-term Combating 2. .Lbu mre itgain fyug people young of integration market Labour 1. Priorities opnn i h Structural the in component Fiund programmes yuhtr ato t esr ta no that ensure to action greater youthstart guidance; ♦ for and counselling knowledge ♦ in increase industry; and ♦ trade in jobs new ♦ jb rain hog nw start-ups; new through creation job ♦ young person under 25 should remain remain should 25 under person young employability; life working into integration the facilitating nmlyd ogrta 10 days. 100 than longer unemployed market labour the from exclusion exposedpersonsto of and peopleyoung of and unemployment Combating long-term ie fr ne Ojcie o te S rgltos is regulations ESF the of 3 Objective under for vided immigrants and disabilities with people includes This ple i See ars te or ad s funda a is and board the across Sweden in applied years. two for unemployed persons to work of attention out Those 25. over persons for is this of 82% unemployed. the of 27% up make people Young priorities: following the contains SPD 3 Objective The staff. their and owners both small training by the sector strengthen isto firms objective The potential. tiplier is There self-employment. at promoting and aimed prospects, and job efforts private, national or to governmental additional are actions, which supports ESF The etl etr o al programmes. all of feature mental 3 Priority 2 Priority mul with programmes quality and innovatory on focus a govern Swedish the with coincides activity this of All qaiy fopruiy ewe mn n wmn pro women, and men between ity n opportunity of rtu o Equality p p o f o lity a u q E cities. big the in longer than twelve months are eligible, with special special with eligible, are months twelve than longer 1 Priority Integration of persons at risk of exclusionfrom employment. Combating unemployment.long-term enhancing needs, market of light the in skills improving unemployment. against programme action ment’s h itgain f on pol it wrig life. working into people young of integration The ECUmillion 173.1 63.3 96.6 14 SWEDEN M easures Beneficiaries The following set of measures applies to all three prior Expected beneficiaries from the SPD under Objective ity categories; they contain sufficient flexibility to 3 (as estimated at the commencement of the pro respond to varying needs and can be availed of in what gramme) were as follows: ever combination is most suited to particular cases. ♦ skills development, theoretical and 1 Measures Number ECU million practical, including, where appropriate, language training, social skills and con- 1. Skills development 61,200 133 fidence-building; 2. Pathways to employment 45,700 99.9 ♦ pathways to employment through com 3. Guidance and counselling 15,300 33.3 puter centres providing training in infor mation technology, funded by national 4. Job creation/start-ups 30,600 66.6 sources, combined with work orientated 5. Technical assistance 14.0 activity financed by the ESF (job search, | Total 152,800 placements, counselling and guidance); ♦ personal guidance and counselling, including projects and networking; ♦ job creation through self-employment, involving training for small business start-ups, training in entrepreneurship and work experience. BREAKDOWN OF ESF FUNDING BY MEASURE - OBJECTIVE 3 Measure 5______4% Measure 4 19.2% Measure 3 9.6% Key points - Objective 3 Measure 2 ♦ 28.8% 48.9% of total ESF assistance to Sweden Measure 1 ♦ concentrates on innovative 38.4% and quality programmes with multiplier effect ♦ Technical Assistance contains common set of measures for long-term Under this heading funding is provided (ECU 14 m il unemployed adults, young lion) for co-ordination and management at local, people, immigrants and regional and national levels, information and public persons with disabilities ity, and follow-up and evaluation. This is carried out ♦ expected to benefit by local committees representative of the social 152,800 in 1995-1999 partners, trade and industry, local authorities and the social economy. EUROPEAN SOCIAL FUND 237 The development of networks and support structures OBJECTIVE 4 for firms and employees and improved information flows through partnerships at local, regional and national level are supported as a means of ensuring Facilitating the adaptation of workers to better responses to future needs. changes in production systems The SPD for Objective 4, adopted on 12 February Priorities for ESF support 1996, included an allocation of ECU 173 million, rep An analysis of the labour market and policy in Sweden resenting more than a quarter of ESF aid to Sweden for in relation to the role of Objective 4 led to the estab the period 1996-1999, the highest proportion for this lishment of the following priorities in the SPD. Objective in the Community. The aim is to complement important aspects of the national plan to counteract unemployment, by increasing the skill and training lev Priority 1 els of firms and their employees to meet the demands of more sophisticated production systems. This to 15% of available funding (ESF and national sources) counteract job losses arising from structural change is allocated to the forecasting of changes in the labour stemming both from the recession and increasing market as well as the analysis and planning of skills development. Target groups under this priority are - internationalisation of the economy. The SPD is intended to be a catalyst in making the upgrading of key employees, labour market experts, decision-mak ers and researchers. skills a priority and disseminating information on best practice in this area. Action is directed at anticipating Priority 2 future developments as well as coping with present needs. Skills development in the workforce goes in Some 65% of the ESF allocation and over 73% of total parallel with strengthening the businesses in which funding is allocated to vocational training, guidance they are employed. and counselling. This includes activity for raising the skill levels of individual employees which also con tributes to the strengthening and development of the SMEs, especially firms employing less than 50, are targeted; skills development of key staff, such as man firms in which they are employed. Target groups under agers and union representatives is promoted as well as this priority are - key staff members and the workforce the upgrading of workers with low-level qualifications. as a whole in SME’s; counsellors, instructors, and staff at risk of redundancy. Firms with up to 250 employees may also benefit. Priority 3 The Swedish SPD contains a limited provision (just Some 15% of the ESF allocation (8.5% of total fund over 12% of the total) for public sector SMEs. In ing) goes to transfer and co-operation structures. This Sweden the risk of unemployment applies to certain public as well as private sector employees and the tar covers networks and support structures, the training of trainers and the dissemination and transfer of results. get group in the case of this exception is mainly women with low-level qualifications in public sector care organisations. Priorities ecu million BREAKDOWN OF ESF FUNDING 1. Forecasting, planning and development 26 BY PRIORITY - OBJECTIVE 4 2. Training, development, guidance and counselling 112.4 Priority 1 3. Networks, co-operation and transfer structures 26 15% 4. Technical assistance 8.6 Priority 4 5% CHAPTER 17 SWEDEN The programme in action Beneficiaries As Sweden devotes more of its ESF share to Objective It is estimated that 30,000 businesses and some 4 than any other Member State, a word on how the pro 240,000 people will be assisted under Objective 4 in gramme works in practice may be of interest. The the period 1996-1999. model, derived from the national five year ‘Working life programme’ which preceded the SPD, is designed to provide a simple system giving easy access to firms. BREAKDOWN OF ESF FUNDING BY MEASURE - OBJECTIVE 4 An interlinking three-pronged strategy operates in the following way: Measure 2 12% [development of enterprises! Measure 1 3% Measure 6 5% Measure 5 15% Measure 4 work organisation development competence development 40% Stage 1 consists of an analysis of skills and compe tence needs and the planning of change and develop Measure 3 ments within businesses as a whole. This is followed 25% by the initiation of the development projects in firms, involving the training and competence development of key staff as well as the preparation of an action plan 1 Measures ecu million for Stage 2. 1. Forecasting changes in labour market 5.2 Stage 2 concerns the skills and competence develop 2. Forecasting/planning in business 20.7 ment of the workforce within the context of the plan and 3. Skills development of key members of staff 43.3 giving special attention to people with the greatest 4. Skills development of workforce 69.2 needs. At least 90% of SMEs completing Stage 1 can be expected to go on to launch Stage 2 within three months. 5. Networks, co-operation and transfer structures 26 6. Technical assistance 8.6 Stage 3 A third measure provides support for the devel opment of networks, which can include one-person firms, and for cooperation, support and transfer structures. Key points - Objective U Technical Assistance ♦ represents 24.3% of the total Provision is made (amounting to 5% of the ESF ESF allocation to Sweden allocation and including also national funds) for ♦ gives priority to firms co-ordination and management, publicity and employing less than 50 information, and evaluation. An on-line computer ♦ contains limited provision network is to link regional co-ordinators, regional for small public sector firms committees, the EU Programme Office (which co ordinates the SPD) and the National Labour ♦ requires forecasting trends Administration. The identification and application and planning as essential of innovative methods is assisted. The following preliminary steps before chart illustrates the distribution of the ESF alloca training tion between the measures applied in the imple ♦ assists networking and m en ta tio n of the priority actions. support structures EUROPEAN SOCIAL FUND 239 Regional Objectives in wlhich the ESF integrates with other Structural Funds. P rio ritie s OBJECTIVE 2 The ESF component concentrates on human resources development, especially for young people and women, Converting the regions seriously affected relating in particular to: by industrial decline ♦ skills training for SMEs; ♦ development of entrepreneurship; ♦ RTD, linking education with industry; Five Single Programming Documents adopted on 22 ♦ new technology, especially in the November 1996, provide for Structural Fund support information field; of ECU 160 million for the Objective 2 regions of Sweden for the period 1995-1999. About a quarter of Technical assistance is provided for monitoring, con this aid (ECU 38 million) comes from the ESF, repre trol, evaluation, and publicity. senting 5% of the total allocation for human resources development. There are five Objective 2 regions in Sweden - Anger- Beneficiaries manlandskusten, Bergslagen, Blekinge, Fyrstad and It was estimated that over the duration of the SPDs Norrlandskusten with a total population of about some 21,000 jobs would be created. 970,000. The characteristics of these regions gener ally show, with individual variations, over-dependency on larger companies, low skills levels due to lack of training, and over reliance on diminishing public sec tor employment. Their overall unemployment rate is 11.8% compared to the national average of 9.8%. BREAKDOWN OF ESF OBJECTIVE 2 FUNDING BY REGION ECU million Angermanlandskusten 3.8 Key points - Qbjpftiup 1 Bergslagen 19.5 ♦ 6% of the ESF allocation Blekinge 2.7 ♦ priority for SMEs, tourism, Fyrstad 5.0 RTD and new technology Norrlandskusten 7.34 ♦ 11% of the Swedish popu The ESF integrates with the ERDF to provide the full lation live in Objective 2 range of human resources development needed to inte areas grate with the investment in economic development. Generally speaking the overall aim is to modernise and diversify the economy and promote employment. PART 2 CHAPTER 17 SWEDEN ■ Objective 2 □ Objective 3 □ Objective 4 ■ Objective 5b ■ Objective 6 Norrbotten O ke Norrland Vasterbotten Mellersta N Jamtland K opparberg Uppsala STOCKHOLM Varmlan< illansverige \ •rebro p' Sodermanl Alvsb< G6teborg^pchV: Skaraborg / Ostergotland G otland Jonkoping >arna Halland K ro n o b e rg EUROPEAN SOCIAL FUND 241 242 SWEDEN HPE 17 CHAPTER this aid (ECU 29 million) comes from the ESF. There There ESF. the from comes million) 29 (ECU aid this Vasterbotten/Gavle/Dala and Sydostra (in western, western, (in Sydostra and Vasterbotten/Gavle/Dala thinly- three comprising Sweden in regions 5b five are 22 on adopted Documents Programming Single and the island of Gotland. Between them these regions regions these them Between Gotland. of island the and of fifth a About 1995-1999. period the for Sweden .% 7400 o te population. the of (754,000) Sverige, 8.6% Vastra - zones forestry of populated regions 5b Objective the for million of support 136 Fund ECUStructural for provide 1996 November make up 12.8% of the national territory and contain contain and territory national the of 12.8% up make Archipelago the Sweden), south-eastern and northern, UDN B REGION BY FUNDING 5b OBJECTIVE ESF OF BREAKDOWN h Archipelago The Vasterbotten/Gavle/Dala ata Sverige Vastra Sydostra Gotland The development and structural structural and development The dutet f ua areas rural of adjustment 5b OBJECTIVE ECUmillion 2.73 1.16 12.4 8.3 5 The ESF combines with the ERDF and the EAGGF to to EAGGF the and ERDF the with combines ESF The overall aim is to modernise and diversify the economy economy the employment. diversify promote and and modernise to is aim overall variations are there While regions. the in development between the various regions, generally speaking the the speaking generally regions, various the between The ESF component concentrates on human resources resources human on concentrates component ESF The economic in investment the with integrate to development needed resources human of range full the provide development especially for young people and women women and people young for especially development needs in differences reflect to content programme in ehia assac i poie fr oioig con publicity. and monitoring, for evaluation, provided trol, is assistance Technical relating in particular to: particular in relating s ritie rio P some 9000 jobs would be created and start-ups start-ups and created be would jobs 9000 some i ares rie ia fic e n e B nrae b 25%. by increased t a etmtd ht vr h drto o te SPDs the of duration the over that estimated was It ey nt Obj tv 5b ctive je b O - ts in o p y le RD lnigeuain ih industry; with education linking RTD, services; ♦ and tourism ♦ entrepreneurship; of development SMEs; for ♦ training skills ♦ ♦ new technology especially in the the in especially technology new ♦ nomto field. information pirt o SMEs, tourism, for priority ♦ the of 12.8% to includes ♦ of 21% is ESFallocation ♦ oa srcua funding structural total RTDtechnology new and territory national SWEDEN Technical assistance (2% of SPD) is available for OBJECTIVE 6 monitoring, control, evaluation, and the financing of small scale pilot projects, including actions by the Sami parliament. Development and structural adjustment of regions with an extremely low population density Beneficiaries It was estimated that in the period 1995-1996 some A Single Programming Document, adopted on 6 9500 jobs would be created or saved and 900 new November 1995 provides for Structural Fund support firms set up. (including ECU 64 million from the ESF) for the north ern region of Sweden which is designated a sparsely populated region in accordance with the definition of a maximum population density of 8 persons per km2. The population of the region in question is, in fact only 2 persons per km2; the average for the EU is 89 per km2. The Objective 6 area in Sweden extends over most of the northern half of the country (apart from the coastal strips) in which only 5% of the population resides. It includes the entire county of Jamtland and most of the ♦ applies to Northern Region counties of Varmland, Kopparberg, Gavleborg, with population of 2 per Vasternorrland, Vasterbotten and Norrbotten. sons per km2 ♦ ESF used mainly for skills The overall aim of this programme is to promote the development, SMEs and creation of new jobs to enable people to continue to work and live in the region. This involves diversifying tourism, rural development the economy while safeguarding the viability of local and categories at risk of communities and exploiting natural resources. exclusion ♦ includes focus on RTD and The human resource strategy in this context is to information technology improve skills and promote enterprise development. ♦ There is an emphasis on community development and supports Sami language projects for young people and women. Special empha and culture sis is placed on the preservation of the Sami people's culture, language and way of life. SPD Priorities The ESF actions, within the overall priorities of the SPD, are as follows: ECU million 1 Priority 1 Development of jobs, trade and industry. ESF action: Skills development for SMEs and tourism. 20.92 (33%) Priority 2 Promoting know-how. ESF action: Training in research and development and information technology, training and education including distance learning. 13.12 (21%) Priority 3 Agriculture, fisheries & natural resources. ESF action: Training in forestry, fisheries, mining and the environment. 6 (9%) Priority 4 Rural and community development. ESF action: Support for local development. Training for categories at risk of exclusion. 20 (31%) Priority 5 I Sami development. ESF action: Preservation of Sami language and culture. 2.52 (4%) EUROPEAN SOCIAL FUND 243 Human Resources component of Community Initiatives in Sweden The Employment Initiative, with its four strands - NOW, HORIZON, INTEGRA and YOUTHSTART - receives an EU contribution of ECU 24 million to fos ter best practice in the field of human resources devel opment through innovation, transnational co-operation and local partnership. Under the Adapt Initiative, the ESF allocates ECU 13 million for the co-financing of innovative transnational projects targeted at employees at risk of unemploy ment due to industrial and technological change. The focus is on SMEs and the structures and methods which can support them and their employees to improve their ability to anticipate and cope with future conditions and needs. In addition, the ESF contributes amounts, totalling ECU 22 million, through the other Community Initiatives: Leader, Pesca, SME, Urban, Interregand Konver. PART 2 CHAPTER 17 SWEDEN SECTION 3 Programme content and ESF policy aims A. Vocational integration Projects to develop new methods in counselling and guidance, so as to increase motivation, are encour of people threatened with aged. Action plans are drawn up for individual job seekers. Skills development includes both basic long-term unemployment training and new qualifications, to meet the evolv ing needs of the labour market. Projects assisted by Long-term unemployment had become a growing the ESF include the preparation of these action problem in Sweden by the end of 1993. People out plans and motivation and support for job seekers to of work for 12 months or more amounted to 17.2% help them find and keep employment. of the ‘total unemployed’, defined as those without regular jobs, and during the following year, this fig Development of the SME sector ure showed a 75% increase. Various national programmes assist business start Combating and preventing long-term unemployment ups. ESF aid goes towards extending the duration is therefore central to national policy and the Swedish of such support and adding to it, for example by authorities are availing of ESF aid to complement and providing mentors. The ESF assists training in extend their own efforts in this direction. entrepreneurship, work experience, and consul tancy supports. Concentration on innovatory projects The ESF allocation is aimed at improving the skills As the ESF contribution amounts to only 2% of base of unemployed people to help them secure national investment in labour market programmes, jobs in small firms or start their own businesses. the SPD concentrates on innovatory and quality The objective is to strengthen, both in terms of projects with multiplier potential carried out in a numbers and viability, the SME sector. decentralised system responding to local labour market trends. The ESF assists, mainly, the aims of Common measures for all categories the national programme which relate to new busi ness start-ups and the provision of training, coun In the Swedish case, a common set of measures selling and guidance leading to new jobs for the applies to all categories covered by Objective 3. groups most exposed to long-term unemployment. These contain sufficient flexibility to respond to varying needs and can be availed of in whatever Computer activity centres combination is most suited to particular categories. The computer activity centres provide an interesting Beneficiaries example of the way in which the ESF complements national funding. Participants spend half the time The numbers of long term unemployed to benefit in training in information technology financed from under the Objective 3 measures was estimated as national sources and the remainder on direct job follows: related activities funded by the ESF - such as job search, placements, counselling and guidance. Number Skills development 4 1,600 Work strategy Pathways to employment 6,700 A basic feature of Swedish policy is the ‘work strat Guidance and counselling 10,400 egy’ which involves job-seekers in work placements, SME development 20,800 guidance and training to reduce dependency on Total 79,500 i unemployment benefits to the minimum. This is part of the government’s action programme against unemployment which was launched in 1994. EUROPEAN SOCIAL FUND 245 246 SWEDEN L Vctoa integration EL Vocational C. Total M development SME counselling and Guidance development Skills ahast employment to Pathways tunities were showing a tendency to increase at the the at increase to tendency a showing were tunities eatti. h ntoa am sta n on person young no that is aim national The this. teract government The age. crucial a at experience work was recruitment SPD, the of adoption the of time most categories oppor job their the if even and recession among bythe affected were people Young employers, by way of reduction of social security pay security social of reduction of byway employers, a than longer for unemployed remain to have should coun to programmes youthstart included plan action num large and rate average the above significantly rbeso h utand ee i ntig increas anything, if were, untrained the the of and problems qualifications with people to confined mainly ments, for recruitment to permanent jobs. permanent to recruitment for ments, to provided are incentives Financial days. hundred on out missing were unskilled, the especially bers, ing. Youth unemployment, though falling, remained remained falling, though unemployment, Youth ing. guidance was also considered important in helping helping in important considered also was guidance to intended are centres computer The people. young is described already measures the of range full The prospects job improve to practical, and theoretical o rmt ot employment. youth promote to Centre: Computer vial t hl i te oainl nerto of integration vocational the in help to available qualifications. no or little have who people young of training, is ESF the by supported aims the of One anticipated the numbers of young people benefiting benefiting 3 people follows:- as young Objective of for numbers SPD the The anticipated people. young be would Beneficiaries make a significant contribution. The provision for for provision The contribution. significant a make h sbtnil nrae n h nme o perma of number the in increase substantial The cator of the growing difficulties faced by people with people by faced difficulties growing the of cator employment pathways to providing measure the under It was estimated that around 80% of the beneficiaries beneficiaries the of 80% around that wasestimated It et iaiiy esos n eetyaswsa indi an was years recent in pensions disability nent of young people young of h lbu market labour the at risk of exclusion from exclusion of risk at Integration of persons of Integration 36,600 Number 44,300 4,400 2,200 1,100 Total udne n cuslig3,800 15,200 counselling and Guidance development Skills M dvlpet7,600 development SME employment to Pathways The number of immigrants and refugees had greatly greatly had refugees and immigrants of number The becoming requirements skill and growing were job-seek of ers numbers where situation ain disabilities figure prominently in the Swedish SPD under under SPD Swedish the in prominently figure unemployment long-term of risks the involves This outside Europe; this is about four times the national national the times four about is this Europe; outside sponding numbers in the period pre-1985. pre-1985. period the in numbers corre the than greater sponding times ten is Sweden this year, in each job-seekers of number the to average on n jiigte reua lbu market. labour irregular the joining and to work-stations which compensate for disabilities. for compensate adjustments which or aids of work-stations to provision the and guidance with persons of case the in includes, approach The action. complementary and innovative on is funding waiting long are There rate. unemployment average oe demanding. more uto i cmie wt vctoa tann. The training. vocational with combined is tuition vocational and assessment functional disabilities, out already measures of range full The 3. Objective undertaken. be processed cannot are employment applications which before asylum while periods high, touching 37% among those migrating from from migrating those among 37% touching high, increased in recent years, adding 20,000 - 30,000 30,000 - 20,000 adding years, recent in increased Persons with disabilities and immigrants, therefore, therefore, immigrants, and disabilities with Persons ciiis udd y h EF o imgat also immigrants for ESF the by funded activities the by aided Malmo. category, this and for Goteborg activities Counselling Stockholm, - immigrants of Programmes igrants’ M Actions Disability Unemployment rates for immigrants was particularly particularly was immigrants for rates Unemployment from Objective 3 of the SPD in the following numbers: following inthe SPD the of 3 Objective from start-ups. business in counselling and ship language Sweden; in situation the to qualifications holistic, ESF isfor focus the approach and measures, the various Again integrating available. is lined Beneficiaries and skills their of match the of account take ESF, three concentrations the high are in there where assisted cities are principal immigrants for Projects People at risk of exclusion are expected to benefit benefit to expected are exclusion of risk at People entrepreneur in training placements, work include Number 29,000 2,400 PART 2 CHAPTER 17 SWEDEN D. Promotion of equal E. Anticipation of labour opportunities in the labour market trends and market between men and adaptation of worker skills women to change Women’s unemployment is slightly less than the As the substantial proportion of ESF aid allocated rate for men but the gap is gradually narrowing and to Objective 4 illustrates, the question of adapting demand is declining for workers with low-level edu workers’ skills to the changing demands of the cation and training - areas in which women make labour market is highly relevant to the situation up most of the workforce. and practice in Sweden. The Swedish Action Plan contains provisions for A feature of the Swedish labour market was the fact improving the situation of women and counteract that a relatively large number of workers had not ing tendencies to segregate the labour market by gone beyond compulsory education; the proportion gender. In the implementation of Objective 3, a with higher education was relatively small, as was general priority is given to projects which involve the number with advanced technical training. the promotion of equal opportunities. In the case of Sweden, no separate provision is made for this Growth is becoming less labour intensive in aim, but the priority applies horizontally across the Sweden as elsewhere with changes in work organi fields of intervention. Under the skills development sation and investment in new technology. This measure, for example, young women opting for tra makes new and greater demands on the skills and ditionally male occupations are assisted while flexibility of the labour force. there is a focus on diversifying women’s career choices under the guidance and counselling mea The increased competition faced by firms attribut sure. Under the SME measure, aid is made avail able to the globalisation of markets, accentuated by able for women’s groups and women interested in accession to the EU, involves more frequent changes starting their own businesses. in production systems and, consequently greater requirements of adaptability on the part of workers. One of the aims of Swedish labour policy is to render work more meaningful and developmental; this is regarded as complementary to preparation for change. Continuing training for adult workers is an important feature of national labour market policy. The plan introduced by the government in Autumn 1994 to combat unemployment includes skills and competence development in the workplace among its five main fields of action. The Objective 4 SPD avails of the ESF to comple ment two of the main fields of action of the Swedish plan to combat unemployment - the skills and competence development of the workforce and support for SMEs. Both of these aims coincide with policy objectives of the ESF. The focus is primarily on undertakings with less than 50 employees but workers in firms employing up to 250 are also included. Special attention is given to workers whose training is of a low level or out of date. The importance given to forward planning, the involvement of the Social Partners and the bottom- up approach accord fully with ESF aims. The preparation of development plans covering propos als to adapt work organisation to change must, as a general rule, precede training activity proper. This approach accords with the ESF aim of fore casting labour market trends in supporting workers in adapting to change. EUROPEAN SOCIAL FUND 247 F. The ESF - an instrument The ESF also promotes the training of managers, tech nicians and post-graduates in research establishments of regional development and the improvement of cooperation between RTD and training and education. Employment growth and stability Information technology expertise is being used to over come the distance problem, suffered in particular by There is an emphasis on training and skills development Objective 6 regions, by developing an advanced com for SMEs; the ESF supports programmes under munication infrastructure. This will facilitate increased Objectives 2, 5b and 6 aimed at developing training distance working and distance learning and open up courses for SME personnel that are more responsive to business opportunities. It is hoped that this IT exper local business needs and increase the use of new tech tise will in turn become a commercially viable product nology especially in the information field. in its own right. The ESF also supports actions aimed at providing About 5.7% of the total Swedish ESF allocation goes skills and qualifications for jobs for both the employed to human resources development for RTD in the period and unemployed, especially in tourism, agriculture, 1994 - 1999. fisheries, mining, the environment, RTD and informa tion technology. Education and training systems Raising training standards Further measures aim to develop or improve courses The Objective 6 region has a well developed educational suited to local needs including: distance training, the structure so the question of investing in its development training of entrepreneurs, management courses for was not therefore considered a priority. The human women, competence and development centres and resource development strategy, aided by the ESF, however training for future trends in the labour market. included under ‘promoting know-how’ greater investment in continuing training, improving training systems within companies, and enhancing the quality of and access to Boosting human potential in education and training, especially in science and tech the field of research, science nology. Actions supported by the ESF aim to: and technology ♦ provide information technology net works in at least 50% of the towns, to The Objective 6 region in particular suffers from a increase the number of distance tuition deficit in RTD. The ESF aims to address this by increas courses offered and double the number ing the volume of research undertaken and assisting of students taking part; the dissemination of the results achieved. The aims ♦ increase the numbers going on to higher include increasing the number of SMEs engaged in education and the number of people in technological cooperation with other companies, and the workforce with third level education; help to link small companies to research centres. ♦ encourage new types of education and training aimed directly at the needs of local trade and industry. SECTION 4 Management and follow-up Implementation structures Regional Committees contain representation from the social partners, county councils, trade and industry, the social economy and the county social insurance The Ministry of Labour has designated the National offices. They assist the County Labour Boards in the Labour Market Board (AMS) as the body with overall implementation of the SPDs at county level, drawing responsibility for the administration of the ESF in up and updating regional financial plans. They also Sweden and to manage the Objective 3 programme propose selection criteria and chose the projects. specifically. The EU programme office for Education, Training and Competence Development manages and Local committees, similarly broadly-based, formulate, co-ordinates Objective 4. The National Rural submit and monitor projects. Development Agency has overall responsibility for Objective 5b, while the National Board for Industrial The monitoring, regional and local committees for the and Technical Development (NUTEK) has been given other SPDs are similarly structured, with variations in the task of overseeing Objectives 2 and 6. membership according to the nature of the pro grammes. The Objective 4 committees, for example, The Monitoring Committee for Objective 3 is chaired contain representation from bodies dealing with occu by the Ministry of Labour, and includes with the pational health and safety, and research into working Commission and the EIB, representatives of local conditions. authorities, county councils, employers, trade unions, associations of SMEs and co-operatives, civil service In the case of the Objective 6 SPD, County and professional organisations, councils for immi Management Committees are responsible for day-to- grants and persons with disabilities, NUTEK, AMS and day administration with a Regional Committee dealing boards responsible for health, welfare and insurance. with aspects affecting the region as a whole. PART 2 250 CHAPTER 18 UNITED KINGDOM United Kingdom SECTION 1 Economic and labour market situation at the time of programming of Community structural funding for the period 1994-1999 Economic situation The year April 1992 to April 1993 saw an increase of 27.8% in the long-term unemployment rate to around one million - despite an overall fall in unemployment. As in other Member States, the programming of Numbers of out of work for more than two years doubled. Structural Fund aid for the UK to the period begin There was a relatively even spread of unemployment throughout the working population. Differences ning 1994, was drawn up following a period of ris between unemployment rates of males and females ing unemployment and slow-down in economic and among different age groups in the UK were among the lowest in the EU. The number of females active in growth. GDP growth in the UK had reached 3.9% the labour market had risen, reaching 12 million by 1993, but nearly half were in part-time work. The but was anticipated to slow to around 2.5% during unemployment rate among young people was more than 50% above the national rate for unemployment 1995. An improvement to 3% was forecast for as a whole. 1996. The general government deficit was expected to fall to under 3% in 1997 and inflation had stayed Trends within the government's target range of 1 to 4 per Labour market trends had seen an increase in the cent for 42 consecutive months. numbers of part-time workers and in the length of the average working week to 43.5 hours in 1994, making it the longest in the EU. Demand for highly skilled labour was expected to continue. Employment at entry Labour market level reduced with the decline in traditional manufac turing and extraction industries. New technology and The UK had maintained a faster rate of job growth than increased demand for quality generally were demand most of the other Member States during the previous ing for new skills. Although requirements of higher employment cycle (1979-1990). It did not, however level skills were being met, numbers available to fill reach the level required to halt the rise in unemploy intermediate posts were insufficient. As a result, ment. In fact, unemployment stood at a higher point in higher qualified workers tended to be drawn down to 1990 than it had known at the worst point of the pre cover for deficiencies at lower levels. This resulted in vious cycle. By 1993, of an estimated 27 million in workers' skills not being optimally used. the labour force, 24.2 million were employed. The Self-employment was growing, reaching 2.9 million in recession had resulted in a fall in numbers in employ 1993, which was 50% higher than in 1979. Self-employ ment of about 2 million between 1990 and 1993 and ment as a percentage of total numbers in employment a rise in unemployment to about 2.9 million by the remained more or less constant between 1990, when it beginning of 1993. represented 13.1%, and 1995 when it was 12.6%. EUROPEAN SOCIAL FUND 251 PART 2 CHAPTER 18 SECTION 2 Structural Fund programmes in the UK A. Allocation by Fund and Total assistance Objective Basic Structural Fund aid allocated to the UK for the period 1994-99 is ECU 11.6 billion or 8% of the The United Kingdom qualifies for Structural Fund aid total for the EU. The ESF contributes ECU 5.4 billion under Objectives 3 and 4 over its entire territory and, which amounts to 46.5% of the total UK allocation. in the case of the regions which fulfil the specific con In addition this Member State benefits from ESF ditions prescribed, for funding under Objectives 1, 2 funding totalling ECU 748 million through the and 5b. This means that all of the Structural Funds - Community Initiatives. ERDF, EAGGF, ESF, and FIFG - apply in the UK. BREAKDOWN OF ASSISTANCE BY OBJECTIVE AND SOURCE OF FUNDING 1994-1999 ECU million - prices valid at time of Decisions Total Structural Funds ESF ERDF EAGGF FIFG Objective 1 2360 747 1332 246 35 Objective 2 4811 1196 3615 1994 - 1996 2145 535 1610 1997 - 1999 2666 661 2005 Objective 3 3156 3156 Objective 4 244 244 Objective 5a Agric. 186 186 Objective 5a Fish 89 89 Objective 5b 818 134 533 151 Total 11664 5477 5480 583 124 Community Initiatives Employment 194 193 1 Adapt 316 316 Others 936 239 657 31 9 Total 1446 748 658 31 9 General Total 13110 6225 6138 614 133 BREAKDOWN OF ALLOCATION BY FUND (excluding Community Initiatives) 47 % ERDF 47% 5% ------PART 2 CHAPTER 18 UNITED KINGDOM The UK authorities opted for the Single Programming Document (SPD) approach; thirty programmes are involved, twenty-eight of which include the ESF. A further SPD (Objective 4), exclusively ESF, is planned. In addition, there are several operational programmes under the Community Initiatives most of which include the ESF. BREAKDOWN OF STRUCTURAL FUND ALLOCATION BY OBJECTIVE Objective 5a Objective 5b BREAKDOWN OF ESF ALLOCATION BY OBJECTIVE Objective 5b______ 57.5% B. Main features of ESF component in the Structural Fund programmes EU-iniide Objectives 3 and 4 involving only the ESF OBJECTIVE 3 Combating long-term unemployment and facilitating the integration into working life of young people and of persons exposed to exclusion from the labour market; promot ing equality of opportunity EUROPEAN SOCIAL FUND 253 _ 254 UNITED KINGDOM PART 2 HPE 18 CHAPTER ar groups. t e rg ta h i a o rvd agtd n oeet package coherent and targeted a provide to was aim The more or years two for worked not had who people tions, with more, or months 6 for unemployed been had who to map a route back to real employment. This required required This employment. real to back age, route a of map regardless to unemployed, long-term the enable to the of needs varying the to suited best combinations train counselling, and guidance - measures contained priorities, four following the contained SPD initial The 1997-1999. years SPD, original The in programmes. separately 1 aims 3 Objective Objective the their with deal which uh s esn wt dsblte, elh rbes or problems health disabilities, with persons as such for preference a apprenticeships. was through cially there training, improving of on emphasis quality increasing the the With courses. recognised to of leading years two experience to work up and of packages training supported ESF The education. time full in 16-18 not and those jobs especially without year-olds 16-24, aged people young was confidence. and levels skill raising and work and 50. over persons and qualifica up-to-date without those to attention special priority Each employment. to pathways as described 6 9 9 -1 4 9 9 1 r fo SPD period the covered illion, m 1501 ECU to amounting roiy 1 Priority xofnes ad epe iig n ua areas. rural in living people and ex-offenders, espe skills higher or intermediate offering courses and (National could These 3. N/SVQ level at Qualification) Vocational preferably Scottish qualifications, 2 Priority training about choices informed make to people helping Priority 3 Priority traditional or credits youth by funded courses either be people was group target the - employment to Pathways Long-term unemployed the in used be to designed - subsidies job and ing Merseyside, of all excludes Islands, and scope Highlands Its the and EU. Ireland of the Northern programme in largest kind the it UK its making the to 3, allocation ESF Objective for is total the of thirds two Nearly learning difficulties, lone parents, ethnic minorities, minorities, ethnic parents, lone difficulties, learning market or labour categories the from for exclusion was of risk this at - individuals integration to Pathways Categories exclusionof risk at group target the - life working in start agood Pathways to 1996) provides aid of ECU 1655.4 million for the the for million 1655.4 in ECU (approved of aid programme provides second a 1996) and 1994-1996, Youngpeople 375 exclusion of risk at hc tergne a under-represented. was gender their which the to respond to personnel counselling and training The 1994-1996 programme allocated 90% of its its of 90% allocated programme 1994-1996 The oa 1501 Total disadvantages. Individual planning of a pathway to to pathway a of planning Individual multiple from suffer who disadvantages. need greatest with assistance people ensure to for priorities various the under groups of risk at categories the programme: initial the of ture separate a pro submits new authority the regional implement Each regional to new gramme. A introduced aid. was ESF effec of structure the additionality promoting and while tiveness need, greatest of areas on in especially experience earlier the in of learnt lessons account the took period second the for programming The to 3% and subsidies job to counselling. 7% and guidance training, to funding comed. One of the aims was to improve the capacity of of capacity the improve to was aims job the of One train with comed. existing help in gaps bridged conventional which and Projects search. training as actions well remedial as required espe were often This employment encouraged. to cially barriers multiple overcome People People 86 assistance Technical vra bten h pirte hd rvd o ea fea a be to proved had priorities the between Overlap Y ROIY OJCIE - 1994-1996 - 3 OBJECTIVE - PRIORITY BY FUNDING ESF OF BREAKDOWN in jobs in employment seeking or work to returning 4 Priority xeine lo ihihe te ed o dniy sub identify earlier The to need 2. 3 the and 1 Priority highlighted to Priorities also under experience limited eligible practice if in even now were exclusion 9 9 9 -1 7 9 9 1 r fo SPD relation to the requirements in ESF legislation to focus focus to legislation ESF in requirements the to relation Pathways to equal opportunities - this was for persons persons for was this - opportunities equal to Pathways groups. excluded of potential and needs wel particularly were services employment and ing to approach integrated an offering projects Partnership Equal opportunities opportunities Equal nerto i otn seta i tee cases. these in essential often is integration committee. monitoring the to plan implementation Equalopportunities 14 on people Young ECUmillion PART 2 CHAPTER 1i UNITED KINGDOM Community Development Priority 4 Enhancing capacity for community development. Many of the disadvantaged and excluded groups are concentrated in areas in which locally-based organisa The aim is to improve the quality of service provided tions lack the capacity to adequately respond to needs. by organisations catering for the disadvantaged under A new priority was introduced, therefore, to support the first three priorities. capacity-building actions in such cases. This priority which is additional to assistance provided Priorities for the period 1997-1999 under the other headings, targets trainers and guid The priorities for the period 1997-1999 are as follows: ance officials in organisations providing services to the target groups at risk of exclusion and to facilitators Priority 1 engaged in community development and outreach Pathways to employment for people aged 25 or over, activities for them. but under state pension age, who have been out of work for a minimum of 6 months. Priority 5 National Projects Sub-groups People over 25 who lack vocational qualifications; Under the current programme, most projects will be have been two years or more out of work; are more than related to regional needs. Priority 5 makes provision 50 years of age; suffer from disabilities; are members for national projects where four or more regions are of ethnic minorities; are homeless; have been excluded involved or where an action has national implications from employment as offenders; are lone parents or car and is financed in part by a national body. Preference ers; are returning to the labour market after an is given to integrated projects which combine the var absence of two years or more; live in rural areas; have ious kinds of assistance needed to maximise job literacy and numeracy problems or have recently been prospects. victims or major redundancies. Priority 2 BREAKDOWN OF ESF FUNDING Pathways to a good start in working life for young peo BY PRIORITY - OBJECTIVE 3 - 1997-1999 ple between 16 and 24. ECU million Sub-groups Priority 5______♦ school leavers who are 18 and under, 40.7 without a job, not in full-time education Priority 4 and seeking a training place; 75 Technical ♦ those with no work experience; Priority 3 Assistance ♦ those with no up-to-date relevant quali fications; ♦ those who have been without work for at least one year. The priority sub-groups also include young people in the categories at risk of exclusion eligible under Priority 1, as listed above. Priority 2 Priority 1 Priority 3 783.6 641.1 Pathways for equal opportunities between men and women Total 1655.4 As in the previous programme the focus of this priority is on action to encourage men and women to enter It is envisaged that at least 40% of the funding will be employment in areas where they are under-repre used for guidance, counselling and direct help into sented. The sub-priorities in the new programme target jobs. This is considerably more than the allocation for raising awareness of job opportunities, developing con these purposes in the earlier programme. fidence and assertiveness, providing vocational train ing, overcoming gender-based obstacles and promot Technical assistance in the SPD for 1997-1999 is ing business start-ups. There is provision also for the available to support the regional secretariats in addi training of trainers in equality issues. tion to supporting monitoring, evaluation and publicity. EUROPEAN SOCIAL FUND 255 Eieneficiaries The total number of persons expected to benefit under Objective 3 in the period 1994-1999 was estimated at 5.8 million. Key points - Objective 3 ♦ largest Objective 3 programme in the EU ♦ represents two-thirds of UK allocation from ESF ♦ programming period split into 1994-1996 and 1997-1999 ♦ earlier experience led to sharper focus on priorities for current programme OBJECTIVE 4 Priority 1 Planning for change Facilitating the adaptation of workers to changes in production systems Overall anticipation of changes in the labour market at national, regional and local level; and skills analysis in companies. The UK did not adopt an Objective 4 SPD at the begin Priority 2 ning of the programming period, preferring instead to Tackling change through the development of concentrate on measures for the long-term unem the workforce ployed and other disadvantaged groups. The Objective 3 SPD was therefore adopted in December 1994 for a Training for key individuals, mentors, team leaders and period of three years only (1994-1996), on condition trainers; and training for target groups within the work that a new Objective 3 plan would be negotiated for force, in particular underskilled workers, those who 1997-1999 together with a new Objective 4 plan. At need to upgrade to adapt to more advanced technol the time of publication, negotiations on a new ogy, and short term and part-time workers whom Objective 4 SPD were at an advanced stage. employers may be less likely to train. The SPD for Objective 4 will receive an allocation of ECU 244 million for 1998-1999, which represents Priority 3 4.5% of the total ESF allocation to the UK for the Reinforcing solutions for change period 1994-1999. The main focus of this SPD (which applies to the regions other than Objective 1) The development of new training systems, and support will be support for the overall improvement of skills to improve human resource-based networks between levels amongst the workforce, with a particular empha SMEs and with larger companies. sis on support for employed workers with a low level of basic training who require retraining or upgrading of The programme will be delivered at regional level, skills. through regional committees. There will also be provision for cross-regional or sec P rio ritie s toral projects. The proposals emphasise the need for integration It is envisaged that the SPD will contain the following between the anticipation work under Priority 1 and three priorities : actions to be supported under the other two priorities. PART 2 CHAPTER 11 Regional Objectives - in which the ESF integrates with other Structural Funds Northern Ireland OBJECTIVE 1 Northern Ireland had unemployment levels at almost twice the EU average at the time the programme was drawn up, and a high dependence on public sector Development of the least employment. Educational levels and technological prosperous regions development were low. Much of the industrial structure had become unbalanced though the decline in tradi tional sectors like textiles, clothing and footwear. Civil unrest was compounding the socio-economic problems. Three regions in the UK qualify under Objective 1 - the The breakdown of ESF funding by Objective 1 regions Highlands and Islands, Merseyside and Northern is as follows: Ireland. The socio-economic situation varies consider ably between these regions, and the problems they encounter are addressed in three separate programmes. BREAKDOWN OF ESF FUNDING BY REGION - OBJECTIVE 1 Structural Fund aid totalling ECU 2360 million is allo cated to these regions for the period 1994-1999 and Highlands and______about one third (ECU 747 million) comes from the ESF. Islands 7.4% The European Social Fund, in addition to promoting path ways to employment for people at risk of exclusion in these regions, integrates with the economic development aims of the other Structural Funds-ERDF, EAGGF and FIFG. The combined population of these regions is 3.3 mil lion representing about 6% of the entire UK popula tion, while their aggregate share of the national ESF allocation is 13.8%. Highlands and Islands The Highlands and Islands, situated on the north-west ECU millionl ern periphery of Scotland, is a region which comprises Highlands and Islands 55 more than 90 islands which contain 30% of its popu lation. Population density, at less than 10 per square Northern Ireland 354 kilometre, is only 11% of the EU average. The region Merseyside 338 suffered from over dependence in the past on a narrow | ToTal 747 j base - agriculture, fisheries and textiles. The small firms sector lacked management and other skills. In some areas unemployment was well above the UK P rio ritie s average and underemployment was a common feature among people living in the remoter parts of the region. In the case of the Highlands and Islands, over one third of the ESF funding is for business development M e rse ysid e skills and start-ups. A similar amount is provided for community development, which includes programmes Merseyside is a heavily industrialised urban area, for categories provided for nationally in the Objective around Liverpool with a high density of population, and 3 programme. Provision is also made for training in severe levels of unemployment and outward migration. tourism and the environment. Development of new The unemployment rate in the early 1990s was 70% training methods and higher standards, especially above the EU average. Economic activity rates and through distance learning is fostered in conjunction attainment levels in education and training were low. with the ERDF. EUROPEAN SOCIAL FUND PART 2 CHAPTER 18 o o C3 I Objective 1 Q LU ■ Objective 2 □ Objective 3 □ Objective 4 1 Objective 5b Highlands Scotland L-, Tayside Strathclyde ■ Borders Northern Dumfries and Galloway Northur Ireland and Wear jumbria IRELAND Clwyd Lincolnshire Midlands N orfo lk N, £ Wflifcftdlands \ Wales ^onhampton^rfre i!’: East Anglia( gr Wa-wickshfe rv/^ambridg V ^y g e ^ lfo rd sh ire Suffolk )ucestershtfe Buckinghamshire'"' 5^/SNa®xfordshire) ?rt or^s^ice^ Essex jreatec i Somerset South West Hampshire^ Duvun • “ Dorset 258 CHAPTER 18 NTD KINGDOMUNITED In Merseyside nearly 75% of the ESF allocation is for pathways to employment for vulnerable categories of per OBJECTIVE 2 sons, with the rest going to development aims, promoting indigenous enterprise and local business (especially the Converting the regions seriously affected culture, media and leisure sectors) and inward invest ment. An integrated package approach is combined with by industrial decline a local area focus delivered through local partnerships in 38 designated areas. This results in greater co-ordination in identifying and responding to local needs. Structural Fund aid totalling ECU 4811 million was Northern Ireland's human resources strategy devotes allocated to thirteen UK regions qualifying under almost two thirds of the ESF allocation to the pathways Objective 2 for the period 1994-1999. The ESF, which to employment type actions described under Objective provided about a quarter (ECU 1196 million) of this 3. The remainder is mainly for human resources activ aid, co-finances the human resources development ity which integrates with the other Structural Funds in needed to combine with the economic development promoting economic development and competitive aims funded by the ERDF. The SPD for 1994-1996 ness and the rural economy. included ECU 535 million for the ESF and the corre In all three regions, provision is made for training in sponding figure for 1997-1999 was ECU 661 million. advanced technology and RTD. General characteristics of the areas Beneficiaries Twelve of the Objective 2 areas, located in Great The three programmes combined envisaged that by the Britain, are in mostly urban areas. Many of these were end of the programming period, the number of young at the forefront of industrialisation in the past but have people reaching N/SVQ 2 levels of training would be suffered, in more recent times, from reductions in out increased to 80% -85% while those reaching N/SVQ 3 put, employment and income. This gave rise to various would be in the 50% -70% range. Numbers expected socio-economic problems such as unemployment, to obtain jobs or go on to further training were esti deteriorating infrastructure, withdrawal of shops and mated at around 400,000. services, rising crime and educational under-achieve ment. The remaining region is Gibraltar, which qualifies mainly because of the economic effects of reductions in the defence sector. Although programme content is designed to take into Key points - Objective 1____ consideration different needs in the individual regions, the overall aim is to modernise and diversify the econ ♦ covers 3 UK regions and 6% of omy and promote employment. The programme aims the total population to help areas with extreme socio-economic difficulties. This implies the provision of skills training including ♦ 13.8% of ESF allocation to the UK for people in employment, and measures to encourage ♦ nearly 400,000 beneficiaries inward investment. SPD for 1997-1999 The paramount aim of job creation underpins all prior ities in the Objective 2 programmes for the period 1997-1999. A key feature is the explicit requirement to improve labour market information to increase employment prospects by enhancing labour market responsiveness in project development and planning. EUROPEAN SOCIAL FUND ! 259 Equal opportunities for both men and women and for Priorities categories at risk of discrimination and exclusion are largely treated horizontally across all measures; this is The agreed priorities for action aided by the ESF are the case also for environmental issues. The new pro similar in the various regions and typically cover the grammes contain improvements in assessments of following: male/female participation in the labour market and ♦ support for local businesses, especially skill levels; several partnerships are developing pilot SMEs; actions to further promote equality aims. ♦ skills development in modern technol ogy and RTD; Most programmes have a specific priority for local ♦ development of the tourism, culture and community development encouraging employment ini leisure industries; tiatives. These increasingly use the intermediate ♦ encouragement of community economic labour market, providing jobs in services of value to development. local communities. Technical assistance is provided for monitoring, con Many programmes include human resources develop trol, evaluation, and publicity. ment in tourism and culture. A review of tourism train ing to develop a more strategic approach is envisaged in several regions. Beneficiaries Provision for training and development of research staff The total number of persons expected to benefit under in technical institutions and research capacity within Objective 2 in the period 1994-1996 was estimated to SMEs has been increased significantly compared to the exceed 260,000. previous period. This includes encouragement of the growth of a business culture for innovation. Key points - Objective 2_____ BREAKDOWN OF ESF FUNDING BY REGION - OBJECTIVE 2 ♦ ESF is 25% of Structural Funds Obj 2 allocation to the UK Region ECU million ♦ job creation underpins all the priori Eastern Scotland 53.4 ties East Midlands 48.6 ♦ support for local businesses, espe Gibraltar 2.1 cially SMEs 43.7 East London and Lee Valley ♦ training in RTD and new technology Industrial South Wales 100 North East England 173 Yorkshire and Humberside 186 North West England 214 Plymouth 13 Thanet 5.9 West Cumbria and Furness 14 West Midlands 208 Western Scotland 134 NTD KINGDOM UNITED Priorities OBJECTIVE 5b The ESF priorities cover typically: The development and structural adjust ♦ support for entrepreneurship and local ment of rural areas businesses, with an emphasis on SMEs; ♦ skills development for new activities and training for RTD and modern technology; ♦ training to raise the quality of the Single Programming Documents provide for Structural tourism industry; Fund support totalling ECU 817 million for the UK ♦ development of new and existing skills Objective 5b regions for the period 1994-1999. to help local communities become more self-sufficient. The ESF, which provides 17% of this aid (ECU 134 million), combines with the ERDF and the EAGGF to Technical assistance is provided for monitoring, con provide the full range of human resources development trol, evaluation, and publicity. needed to support the investment in rural development and diversification in these regions. There are eleven Objective 5b regions throughout Key points - Objective 5b Great Britain, each with a separate SPD. Some, such as Wales and South-west England, are quite extensive ♦ ESF allocation is 17% of total areas but in all they contain only 4.9% of the popula structural funding tion. These regions have depended on traditional type ♦ support for entrepreneurship and employment - agriculture, fishing and mining. In some of the 5b regions, the defence industry remains a sub local businesses especially SMEs, stantial employer. The closure of bases or redundan ♦ skills and training for RTD and cies in areas such as East Anglia has impacted heavily modern technology upon the local economy. ♦ development of tourism While programme content varies to take account of the different needs in the different regions, the overall aim is to modernise and diversify rural areas, developing new forms of income outside agriculture and upgrading Human Resources component of the tourism sector. The programmes aim to sustain Community Initiatives in the UK local communities and protect them against rural depopulation, by providing skills and training in non The four strands of the Employment Initiative - NOW, farming activities and encouraging business expansion. HORIZON, INTEGRA and YOUTHSTART - provide an allocation of ECU 194 million to the UK to foster best The breakdown of ESF funding by Objective 5b region practice in the field of human resources development for the period 1994-1999 is as follows: through innovation, local partnership and transnational BREAKDOWN OF ESF FUNDING co-operation. BY REGION - OBJECTIVE 5b Under the ADAPT Initiative, the ESF allocates ECU j Region ECU million 316 million for the co-financing of innovative transna tional projects for employees at risk of unemployment Borders Region 6 due to industrial and technological change. There is an Central Scotland / Tayside 5 emphasis on firms employing less than 50 workers and Dumfries and Galloway 7 on the use of information technology. East Anglia 9 In addition, the ESF contributes amounts, totalling English Midland Uplands 2 ECU 239 million, through other Community Initiatives; English Northern Uplands 16 Leader, Pesca, SME, Urban, Interreg, Retex, Rechar, Grampian 6 Konver, Resider, and Peace. Lincolnshire 8 South West England 33 The Marches 9 Wales 33 Total 134 | EUROPEAN SOCIAL FUND 261 262 UNITED KINGDOM SECTION3 rgam otn n ESFandcontent policy Programme aims 1 8 1 A. Vocational integration of of integration Vocational A. the European Council at Essen and subsequently subsequently and Essen at at Council agreed as European the unemployment tackling for framework implement UK the for programmes 3 Objective The h ln-em nmlyd toe u o wr six work of out (those unemployed long-term The followed widely more with is idea it that this ensuring reinforces of aim the the 1997-1999 in for SPD The emphasis the and to approach pathways the of employment proponent early an was UK The greatest, are needs where assistance programme centrating second The Madrid. at endorsed Introduction tribution was to be additional to the national effort effort national the to additional be to was tribution were numbers whose - unemployed long-term the (well 45% only low; was level skills and attainment impetus. additional it gave programme 3 Objective con on experience, policy ESF with earlier line in the on priorities drawing readjusted (1997-1999), EU the with conformity in up drawn policy national o h urgsee unemployed. unregistered the for assistance directing at aims sub-targeting new The UK. the in aid development structural resources public human total for of 16% represented and con ESF The level. local at with operated flexibility framework considerable national common A job dies. the in compete and enter to - rise to expected education. compulsory after course education an providers. service by responding needs. structure local to regionalised directly more a mov and towards ing additionality and effectiveness promoting organisations are the main source of programmes programmes of source main the are organisations for their of regardless needs, greatest with those at people many clearly but unemployed, registered or training completed Educational had average) up. EU the drawn below was the for SPD 1994-1996 the time the period at unem Britain the Great all in of ployed 39% represented more) or months mal unemployment status; the non-governmental non-governmental the status; unemployment mal jobs. finding in support need register the on not subsi wage and guidance training, through market help to programmes included aims policy National National labour market policies are focused on the the on focused are policies market labour National ogtr unemployment long-term with threatened people h am fr S spot ne Ojcie 3 Objective under support ESF for aims The their improving and training and jobs about choices help included schemes these of months aims The twelve more. for or unemployed people for schemes Confidence and otivation M tional attainment and skill levels and for life-long life-long for and levels skill and of attainment tional Confederation the endorsed Government The jobs. into people unemployed getting on com and industry the by con agreed to often - standards to tied forming qualifications vocational increasingly of was acquisition provision Training ult standards Quality aided - ESF the in reserved was priority Special those out of work for a long time. long a for work of out those wage and experience Work of source a as employment. sector SME viable the strengthen to ship oiain n cniec a el s kl levels skill as well as confidence and motivation h cnlsos f h Esn n Mdi European Madrid and Essen the of conclusions the echoes work-force the of members older the on focus the to respond to needs sub-priorities greatest introduced with persons for 1997-1999 for SPD The 1994-1996. period the num total The support. ESF of result aas training 50% to 43% from increase an predicted SPD The of case Targets the in appropriate con were particularly self-employment promote sidered to subsidies Training Enterprise results to encourage training organisations to focus focus to organisations training encourage to results to related funding towards move awas There merce. prospects. job mar maximising labour the and with line requirements in ket levels skill raising included informed make to unemployed long-term the ing or more, the long-term unemployed above the age ofage the above unemployed years two long-term for the work more, or of out people of situation serious 1997-1999 for SPD increasingly therefore, qualifications. was, vocational to linked Training educa of learning. raising the for targets industry's British e o bnfcais a etmtd t 2,0 for 726,200 at estimated further was to beneficiaries on long-term of ber of going or numbers jobs the in finding unemployed 2000 year the by entrepreneur in training on placed was Emphasis 50, and those without adequate qualifications. This This qualifications. adequate without those and 50, NTD KINGDOM UNITED Councils. Adults at risk of social exclusion are eligi Targets ble for these programmes even if their period of The total number of beneficiaries under the 1997- unemployment is less than six months. The indica 1999 SPD is estimated at 1.6 million. By the year tive breakdown of the programme for 1997-1999 2000 the number of young people reaching higher provides for 38.7% of the funding to be allocated to qualifications is expected to rise from 67% to 85% for action for the long-term unemployed. NSVQ (National and Scottish Vocational Qualification) Target 2 level and 45% to 60% for NSVQ 3 level The programme estimates the total number of ben eficiaries will be 2.3 million. The percentage of C. Integration of persons at people achieving positive outcomes from pro grammes approved under Priority 1 is expected to risk of exclusion from the rise from a base of 46% to 50% by the year 2000. labour market Partnership projects which offered a comprehensive B. Vocational integration of integrated approach were particularly encouraged in young people the case of groups of people facing multiple barriers. The pathways approach can include remedial action, Although long-term unemployment in the UK was where required, in addition to training and job-search expected to rise, the number of young unemployed support. There was an emphasis on measures covering was set to fall, reflecting the reduction in birth rates gaps in existing systems and which provided post-train- of the 1970s. Their unemployment rate, however, ing supports to enable people to progress in employ remained significantly above average. The provision of ment. Training was provided also for trainers and advi training, work placement and counselling to help sory personnel working outside the public sector. young people obtain employment was, therefore, a national aim corresponding to an important objective ESF support concentrated on special training and of the ESF. The Fund operates in ways which are addi basic counselling and guidance and skills training tional to national programmes, governmental and non leading to jobs. It included, where needed, literacy, governmental; the focus includes young people in the numeracy or language training and assertiveness case of government programmes. and confidence building. Residential projects are supported, where needed, for people with disabili Targets ties, those isolated in rural areas and the homeless. Projects leading to business start-ups were particu The number of young people reaching higher qualifi larly encouraged. cations was estimated to increase from 61% to 80% In addition to actions specifically for people at risk for S/NVQ level 2 and from 37% to 50% for S/NVQ of exclusion, it should be noted that many from (National and Scottish Vocational Qualification) level these categories are found among the participants in 3 during the period 1994-96. It was estimated that local economic development and employment initia the total number of beneficiaries would be 541,234. tives included under Objective 1 and 2 programmes. The proportion of young people obtaining jobs or going on to further training was expected to rise from Target 43% to 50% by the year 2000. The SPD aimed at increasing, by the year 2000, SDP for 1997-1999 from 49% to 50% the numbers from excluded groups to achieve jobs or go on to further training The sub-group priority system introduced in the as a result of ESF support. 1997-1999 programme provides a special focus on school leavers under 18 without jobs, qualifications Beneficiaries or work experience. The SPD includes a commit ment to ensure that enough places are provided for The total numbers estimated in the SPD to benefit 16 to 18 year old school leavers to follow quality under the pathways to employment (Objective 3 as training in integrated projects with minimum delay. a whole) in the 1994-96 programme was put at 422,600. The indicative breakdown of the programme for 1997-1999 provides for 47.2% of the funding to SPD for 1997-1999 be allocated to action for the vocational integration One of the purposes of the reorganisation of prior of young people. ities introduced in the new programme was to EUROPEAN SOCIAL FUND 263 broaden the scope of funding for groups at risk of outlined in the preceding priorities. The purpose exclusion by ensuring their access to assistance of this provision is to address the specific obsta targeted on the general categories of the unem cles to the employment of people in jobs in which ployed and young people - from which they had members of their gender are a minority. been largely cut off in the preceding period. The former Priority 3 became redundant therefore, but Target 1997-1999 a new Priority 4 was introduced to improve struc The number of beneficiaries under Priority 3 for tures catering for the most disadvantaged; this the period 1997-1999 is estimated at 103,000. concentrated on raising the organisational capacity and skills levels of local organisations in this field. E. Anticipation of labour mar D. Promotion of equal opportu ket trends and adaptation of nities in the labour market worker skills to change between men and women At the time of production, the UK authorities and the Commission were negotiating an SPD for Equal opportunities apply’s across the full range of Objective 4 covering the period 1998-1999. The EU-supported actions but provision was made details of the new programme had not been finalised under Objective 3 for two specific cases - for those but a description of its likely content is given in returning to the labour market after a period of Section 2, Part B above. family responsibilities and for promoting employ ment opportunities for both men and women in occupations in which they are under-represented. F. The ESF - an instrument of The ESF-supported actions provided guidance and regional develoment assertiveness training as well as skills training. There was a provision for the accreditation of prior Section 2B summarises the ESF operations which learning and, in the case of women, an emphasis integrate with the other Structural Funds for the aims on training in management skills and enterprise of the regional Objectives under 1, 2 and 5b. It will development and help with job-search. be noted that national and regional strategies in this regard coincide to a considerable extent with ESF Target priorities. Numbers benefiting from equal opportunities action supported by the ESF were estimated to rise Employment growth and stability from 59% to 70% by the year 2000. The number of beneficiaries in the period 1994-96 was In the UK about 40% of the ESF allocation goes expected to amount to 105,500. towards actions which combine with the other Funds for regional and rural development. A third of the Technical assistance national share is for programmes under the heading of employment, growth and stability. Technical assistance was provided to assist pilot, innovatory actions and help in monitoring and rais SMEs ing standards. It also aimed to promote greater pub lic awareness of activities supported by the ESF. The need for the training of staff of SMEs, raising knowledge and skill levels, is recognised and SPD for 1997-1999 these priorities feature under all the above Objectives; tourism is one of the sectors widely The follow-up SPD included a more focused prior targeted. This is also the case in Merseyside where ity which defined the kind of action to be assisted there is an additional focus on the culture and in the promotion of equal opportunities. People media. Rural tourism features in the Objective 5b responding to this priority can qualify for the regions and assistance of small firms appears in training, counselling and job support measures most development programmes. PART 2 CHAPTER RTD Improving education and training system s Only 0.5% of the UK allocation from the ESF is for specific progarmmes boosting human potential in The UK education and training systems are relatively research, science and technology. Such programmes in well developed, so the allocation for this priority is the Highland and Islands use distance learning for the therefore very limited. ESF provision in the UK training of researchers; the Merseyside programme Objective 1 regions under this heading is just ECU 3.5 contains several measures to stimulate RTD ranging million. Provision is made, however, for the develop from advanced training of researchers to supports for ment of training systems and the training of instructors their employment. under all the regional Objectives. The full effort under this heading in the UK is consider The UK has not found it necessary, generally, to avail ably greater because training for research figures widely of the opportunities of using ESF aid for training of in more general regional programmes; it accounts for public officials. about 15% of the Objective 2 programmes, for example. Training for technology transfer across SMEs is included in many programmes. CHAPTER 18 SECTION 4 Management and follow-up Implementation structures in the case of the SPDs under the other Objectives. In the case of Northern Ireland, the Department of The UK has an effective system of programme man Economic Development is responsible for overseeing agement through partnership working across all ESF aid while in Scotland the Scottish Office is the Objectives. The SPD for Objective 3 (1994-1996) pro implementing authority for all Structural Funds except vided for a Monitoring Committee, chaired by the for Objective 3. Department of Employment (subsequently the Department for Education and Employment), the body responsible for overall management of the ESF in the UK. Membership included, apart from the Commission, representatives of government depart Social Partners ments (including regional offices), training and enter prise councils, local enterprise companies in Scotland, The economic and social partners are currently for education, local authorities, the voluntary sector, mally excluded from all UK monitoring committees. Ad industrial training organisations, and Scottish enter hoc involvement in a non-representative capacity is prise. The social partners do not participate in pro achieved in many regions through the involvement of gramme management in the UK. Sub-groups advise trade unions and employers on local boards or as the Monitoring Committee on specific issues and experts in project selection panels. In Scotland a suc regional co-ordinating groups were set up to ensure cessful system of briefing social partners on Structural local co-ordination. Fund matters operates. SPD for 1997-1999 Involvement of Voluntary Sector The more recent SPD provides for a greater degree of The voluntary sector plays a important role in the regionalisation than in the previous period. Regional development and implementation of programmes. The Committees, representative of all sectors concerned, National Council of Voluntary Organisations (NCVO) have been established. Distribution of funding and its Scottish equivalent (SCVO) and the Women's between regions is decided by the national monitoring Training Network managed sector projects and were committee, on the basis of objective indicators and full members of the Objective 3 management structure labour market information. The regional authorities in 1994-1996. The voluntary sector, which makes a provide development plans and organise project selec contribution way beyond the funding received, is noted tion according to criteria endorsed by the national for high quality and innovative projects. It is included monitoring committee. also, with the addition of wider environmental and community interests under the regional programmes, The foregoing applies to Objective 3, which absorbs It is fully involved in delivering of the 1997-1999 pro two-thirds of the ESF allocation to the UK. Separate grammes through membership of the national and and similarly established monitoring committees apply regional committees. General comments This Chapter compares the main fea programming, does not claim to be a tures of the programming documents measure of the merits or the compre relating to the individual Member hensiveness of policies or strategies States for the period 1994-1999 as pursued. The variations in levels of summarised in PART 2. These reflect ESF aid, for example, may well impact both similarities of approach to com on the balance between national and mon problems, influenced obviously community policies in the different by EU employment strategies and Member States. Thus, countries with Fund priorities, together with varia less aid pursue to a greater extent tions reflecting different national cir labour market measures outside the cumstances and priorities. EU programmes, in contrast to the most assisted Member States in This exercise, while of interest in which the programming documents comparing national approaches to cover the great bulk of their activities. FIGURE 1 A. Economic and labour market Unemployment rates in the EU situation at the time of programming of Community structural funding for the period 1994-1999. At the time of programming Structural Fund assistance for the period 1994-1999, the individual Member States, with few exceptions, were undergoing a period of economic recession. The GDP growth rate of the EU as a whole slowed down, amounting to 0.9% in 1992 and proving negative (-0.7%) in 19931. The labour market 1975 1985 1990 1991 1992 1993 After the sustained growth experienced during the second 3.7 9.9 7.7 8.2 9.3 10.8 part of the eighties, when over 9 million new jobs were created throughout the Union, unemployment began to rise again in 1990 (figure l ) 2. The rise in unemployment hit the most vulnerable peo ple hardest, particularly the young, women and the long term unemployed with poor qualifications. However, a higher educational level was not always a guarantee against the risk of unemployment because of the num FIGURE 2 bers of graduates with qualifications not suited to the Educational attainment of unemployed peo jobs available (figure 2)3. ple aged 25-39 in EU Member States, as a In Denmark, Finland, Germany, the Netherlands and percentage of total unemployed (1995) Sweden, more than 70% of unemployed people had com pleted third level or high secondary level education cycles. 0° % C o . At the time of programming, unemployment was higher A vN\ ° % / % % among women than men in all countries apart from the UK, although since the mid-eighties the gap between male and female unemployment rates had narrowed over the Union as a whole. In the less developed regions, however, the gap had widened (figure 3)4. FIGURE 3 Unemployment rates in 1993 !■ || Upper secondary level education | Third level education -5 % > \ W X * *>■ 1 First Report on economic and social cohesion -1997 2 Employment in Europe -1996 | Women unemployment as % of labour force -1993 3 Employment in Europe -1996 4 Employment in Europe -1996 I Men unemployment as % of labour force - 1993 PART 2 B. Programme content and FIGURE 5 | Austria ESF allocations 1994-1999 (excluding | Belgium ESF policy aims - analysis Community Initiatives) of common approaches | Denmark and differences Finland 10000 A total budget of nearly ECU 142 billion was allocated J Germany for structural assistance for the period 1994-1999 - a I Greece massive increase over the preceding period. Following the accession of Austria, Finland and Sweden in 1995, additional resources of ECU 12 billion were | France agreed. The ESF accounts for some 30% of total Structural Fund aid. I Ireland | Italy The distribution among the Structural Funds for the period 1994-1999 is shown in figure 4 5. | Luxembourg Member States with the biggest financial allocations J Netherlands tend, naturally, to be those with a combination of high population and deficits in regional development. Portugal Germany, Italy and Spain are examples (figure 5)5. Sweden ESF allocations per capita are under ECU 100 per per United Kingdom son in all Member States apart from Greece, Spain (about 250), Portugal (about 330) and Ireland (more than 500). At the other end of the scale, Luxembourg FIGURE 6 receives about 65 ECU per capita (figure 6)6. ESF allocations per capita 1994-1999 It is also interesting to look at ESF allocations in rela tion to unemployment (figure 7)7. Portugal emerges as the principal beneficiary with ECU 12,000 for each 600 unemployed person over the period 1994-1999 with Denmark (ECU 1,190) at the other end of the scale. 400 300 FIGURE 4 1 Share of total Structural Funds allocation - 1994-1999 (excluding Comunity Initiatives) ERDF FIGURE 7 ESF allocation per unemployed person 1994-1999 16% 14000 12000 FIFG 2% 10000 8000 6000 5 The impact of structural policies on economic and 4000 social cohesion in the Union 1989-99 2000 6 Structural Funds in 1995 - seventh annual report 7 Structural Funds in 1995 - seventh annual report 0 EUROPEAN SOCIAL FUND 269 Austria FIGURE 8 Vocational integration of people ESF allocation to persons exposed Belgium threatened with long-term to long- term unemployment unemployment Denmark (percentage of total ESF allocation) Finland During the early years of the nineties, long-term unem ployment rose in almost all countries, as reflected in Germany the importance given, in the national programmes, to Greece actions directed at the integration of the long-term unemployed. Five Member States (Belgium, Denmark, Spain Finland, Netherlands and Spain) devoted the highest France share of their ESF resources to this aim (figure 8)8. Ireland The variations in the proportion of ESF aid allocated by Italy Member States to this priority reflect, naturally, the rel ative gravity of this problem compared to other priority Luxembourg objectives. Where Objective 1 regions cover a substan tial part of the country, allocations to other priorities are Netherlands greater then elsewhere and this can reduce the relative Portugal provision for combating long-term unemployment. FIGURE 9 Sweden Long-term unemployment (1993) As might be expected, all national programmes indi United Kingdom cate training as the main tool to combat long term unemployment. It became increasingly evident that 70 training alone was insufficient to provide the long term unemployed with effective supports. The program 60 ming, therefore, envisaged measures to tackle long term unemployment in an integrated way - the path ways approach favoured by the Commission in line with EU employment policy. Aspects like guidance, 40 counselling, motivation and help with job search usu ally form part of the strategy. 30 Employment premiums are used for the most part in 20 Member States where problems of long term unem ployment are most acute (figure 9)9. 10 Support for socially-useful work projects is provided in figures for Austria and a number of countries, as is the creation and develop Finland not available ment of the so-called ‘third sector’ enterprises. FIGURE 10 Ireland and Italy have programmed training (including lan Youth unemployed as percentage of young guage skills) for people emigrating to work in other people aged 1 5-24 (1993) Member States. These might be regarded as small steps on the road to an EU labour market as envisaged in the White Paper on Growth, Competitiveness and Employment. Vocational integration of young people Youth unemployment had risen in most countries in the years immediately preceding the programming period (figure 10)10. Youth unemployment was particularly serious in Spain, Finland, Greece, France, Ireland and Italy. In Spain, almost 45% of all young people aged between 15 and 24 were unemployed but were not in education or voca tional training. Austria and Luxembourg, on the other 8 Structural Funds in 1995- seventh annual report hand, had very low levels of youth unemployment. 9 Employment in Europe -1996 10 Employment in Europe -1996 The pattern of ESF allocations to measures for the voca FIGURE 11 tional integration of young persons seeking employment, ESF allocation to promote occupational as a percentage of total ESF aid, is shown in figure l l ' 11. integration of young persons seeking employment In general, the allocations for this priority are consis (percentage of total ESF allocation) tent with the severity of the problem. In the case of Greece, youth unemployment is 50% and the ESF allo cation 3%. This is attributable to the type of classifi cation system used: the Greek authorities focus their efforts mainly on the strengthening of the apprentice ship and educational systems. Such measures are obviously geared directly to combating young unem ployment, but they are classified under the heading 'Strengthening and improving educational and training systems'. Moreover, in Greece, many young people are assisted under the heading of ‘longterm unemployed’, 30 which does not contain an age differentiation. The approaches followed by most of the Member States to tackle this problem are broadly similar. Target groups are often divided in two: those under 20 years of age without skills (school drop-outs and low achievers) and those with a school certificate which is J insufficient to permit them to find a job. For the first group, programming documents envisage Youthstart type actions. The ESF finances actions inte grating education, training and work experience for the young under-20s who have no qualifications. For the second, the measures aim to improve educa tional attainment and provide supplementary training in the skills most needed in the labour market. FIGURE 12 ESF allocation to promote integration ofpersons exposed to exclusion from the labour market Integration of people at risk of (percentage of total ESF allocation) exclusion from the labour market Slow economic growth and increasing immigration flows from non-EU countries are the main factors exac erbating the problems of persons excluded or at risk of exclusion from the labour market. In some countries the additional factor of social expenditure restrictions 40 makes the problems more acute. The relative shares of ESF funding allocated by 30 Member States to this priority vary considerably (figure 12)12. In Luxembourg the ESF allocation to this prior ity is relatively high; the target group is mainly com 20 posed of persons with disabilities, a category with a high unemployment rate. Member States, in varying degrees, have taken action to improve labour market mechanisms and structures to help combat social exclusion. In some countries, such as Greece, ESF-financed actions include direct information and awareness campaigns directed at the general public, aimed at combating negative stereo typing. In Britain, the Government endorsed the 11 Structural Funds in 1995 - seventh annual report Confederation of British Industry's targets for raising 12 Structural Funds in 1995 - seventh annual report EUROPEAN SOCI PART 2 Austria FIGURE 13 educational attainment and skills levels. France and Belgium ESF eillocation to promoting equal Italy encourage the activities carried on by ‘third sec opportunities for men and women tor’ organisations, through grants for establishing new Denmark (percentage of total ESF allocation) projects in the social services or new SMEs. Spain highlights training and other supports for Spanish Finland migrants returning to Spain. Germany In all Member States, there is specific provision for per Greece sons with disabilities. There seems to be a shift of Spain approach in the 1994-1999 programming documents, compared to 1989-1993. The focus has shifted away France from sheltered workshops to integration into the open Ireland labour market, a process assisted by ESF financial incen tives, compensating for lower levels of productivity. Italy Luxembourg Netherlands Promotion of equal opportunities in the labour market between men and Portugal wom en Sweden The unemployment rate for women is above the male United Kingdom rate in most Member States, with the exception of Sweden, Finland and the United Kingdom (figure 3). Austria, Germany, Italy and Luxembourg are the only countries allocating to this priority a figure equal to or above 4% of total ESF allocations (figure 13)13. In gen eral, there is a direct link between the gap between male and female unemployment and the ESF alloca tions to the equality of opportunity priority. In the case of Spain, Portugal, France, Greece and Belgium, the ESF allocation is less than one might expect. It would FIGURE 14 be a mistake, however, to draw definitive conclusions ESF allocation to adaptation of workers to from these figures because equality of opportunity is a industrial change horizontal policy objective implemented across the full (percentage of total ESF allocation) range of measures aided by the Structural Funds. The variations in these allocations reflect in fact the differ ent perceptions of the Member States of the necessity of supplementing the general equality priority with specific measures under Objective 3. Anticipation oF labour market trends 20 and adaptation oF workers skills to change While all the other Member States made provision for Objective 4 type programmes, the UK opted not to do I so in the initial period, 1994-1996, but is currently preparing a programme for 1997-1999. Irrespective of the different amounts allocated (figure 14u), all Member States indicated four main compo nents of their programmes under this priority: ♦ anticipation; ♦ vocational training itself, guidance and counselling; 13 Structural Funds in 1995 - seventh annual report ♦ training systems; 14 Structural Funds in 1995 - seventh annual report ♦ technical assistance. PART 2 Allocations to these components as a percentage of ESF FIGURE 15 resources assigned to Objective 4 is shown in figure 15. ESF allocations to Objective A priority axes (percentage of total ESF allocation Actions to anticipate and plan for change had not hith to Objective 4) erto widespread in the Community, but the introduction of Objective 4 gave significant stimulus to programmes dealing with this problem; this involve putting in place an anticipation training systems technical ongoing system of monitoring the labour market and fore assistance casting skills needs. Member States have indicated in their programming documents that all parties concerned Austria HI 76 14 3 will be involved in this process. Belgium 33 34 25 8 Denmark 15 51 30 4 Member States have adopted varying approaches Finland 9 56 30 5 according in particular to the size and ownership of Germany 11 71 13 5 beneficiaries companies. The Greek model is prob ably the most comprehensive, as beneficiaries can Greece be employed in private or public companies irre Spain ai(2> 10 84 0 6 spective of size. France 11 78 5 6 Almost all the countries prioritise action for SMEs (up Ireland to 250 employees), with preference, in some cases, to Italy 121 15 81 0 companies with less than 50 employees. 4 Luxembourg 13 62 12 13 Netherlands 8 68 19 ■ ■ ■ ■ Portugal Employment growth and stability Sweden 15 65 15 5 UK Member States programming documents show ESF allocations to this priority as illustrated in figure 16.15 (1) Guidance and counselling included in the area of anticipation (2) Training systems included in technical assistance The comparison between Austria and Spain is inter esting. Austria, with a relatively low unemployment Figures for Greece, Ireland, Portugal, UK not available. rate, uses 23% of its allocations for the regional objec tives to promote employment, growth and stability. FIGURE 16 Spain, on the other hand, with the highest unemploy ESF allocation supporting employment, ment rate in the EU, allocates 26% to combating long growth and stability (percentage of term unemployment and for the vocational integration total ESF allocation) of young people, leaving 9% for employment, growth and stability. Actions pursued in the Member States reveal broad similarities. Programming documents indicate that action to promote employment and growth is based on developing and strengthening companies, especially SMEs. In some Member States, the emphasis is on tourism and culture, while others focus on the indus trial sector. In SMEs, the ESF provides financing - in conjunction with a contribution by the companies themselves- for improving management capabilities and increasing competitiveness. 15 Structural Funds in 1995 - seventh annual report EUROPEAN SOCIAL FUND 273 Austria FIGURE 17 Boosting human potential Belgium ESF allocation to boosting human potential in the field of research, science in research, science and technology and technology Denmark (percentage of total ESF allocation) Finland At European level, the average annual investment in RTD amounted in 1991 to about 2% of total GDP. This Germany is significantly below that of the Union's competitors Greece in global markets - the US (2.8%) and Japanese (3%). The European Union, moreover, has fewer numbers of Spain researchers employed. Most Member States gave a France certain degree of emphasis to the R&D sector in their programming documents for 1994-1999. Ireland Italy At EU level, the average of total ESF allocations for 1994-1999 destined to boost human potential in R&D Luxembourg amounts to 2.4%, but differences between Member States are significant, ranging from 5.7% in Sweden to Netherlands a lack of specific provision in Denmark, Ireland and Portugal Luxembourg. Because of variations in programmes structure in the latter cases, provision for R&D forms Sweden part of wider ranging programmes for industry. United Kingdom The national share of ESF allocations to this priority is shown in figure 1716. The strategies pursued by the Member States all con tain ESF support for the strengthening of links between universities, research institutes and companies. It is recognised that RTD in the EU needs more effective transfer mechanisms to ensure that results are more effictively translated into practice by industry. Strengthening and improving FIGURE 18 education and training systems. ESF allocation to strengthen and improve education and training systems The ESF allocation to this priority amounts to about (percentage of total ESF allocation) ECU 5 billion, or 12.2% of the total ESF budget for the period 1994-1999. As in the preceding case, the national policies assign varying degrees of emphasis to this priority. Reasons for these differences are pre sumably related, apart from variations in objective needs, to the extent to which further development of the educational and training system could impact pos itively on the employment level, or in other terms, to the effectiveness of today's systems. National allocations, in percentages of ESF alloca tions, are given in figure 1817. Greece and Portugal account for almost 50% of total ESF allocations to this priority. In these countries the ESF assists large-scale reform and development pro grammes, which probably would have been d ifficu lt to carry out without ESF support. In addition to strength ening national apprenticeship and vocational training systems, the ESF focuses on the training of teachers, 16 Structural Funds in 1995 - seventh annual report trainers, school managers and counsellors in the sec 17 Structural Funds in 1995 - seventh annual report ondary school system, improving management and reforming university curricula. The development of a certification structure is assisted in Greece, including quality assessment of life-long training centres, sub sequently extending to the accreditation of training of trainers. Contributing to development through the training of public officials Only a few Member States planned to allocate ESF resources to this priority (which is applicable only to Objectives 1 and 6 regions). They are Greece, Spain, Italy and Portugal, i.e the countries of greatest need in this area. In each of the four participating Member States, the ESF allocation for this priority is less than 2%. Action financed by the ESF is primarily intended to improve the efficiency of the public sector. In Italy, Spain and Portugal, the emphasis is on the improvement of the capacity of public systems dealing with the Structural Funds. Because of the special situation in Greece, the scope of action there goes beyond the management of the Structural Funds and extends to other important areas of the public service. There is special emphasis on training in new technologies and management, and the ESF also contributes to the modernisation of the tax, custom, budget and treasury departments. PART 2 276 GLOSSARY APPENDICES Council Regulation (EEC) No. 2081/93 of 20 July 1993 amending Regulation (EEC) No. 2 0 52/88 on the tasks of the Structural Funds and their effec tiveness and on coordination of their activities between themselves and with the operations of the European Investment Bank and the other existing financial instruments. Council Regulation (EEC) No. 2082/93 of 20 July 1993 amending Regulation (EEC) No. 4253/88 laying down the provisions for implementing Regulation (EEC) No. 20 52/88 as regards coordi nation of the activities of the different Structural Funds between themselves and with the operations of the European Investment Bank and the other existing financial instruments. Council Regulation (EEC) No. 2084/93 of 20 July 1993 amending Regulation (EEC) No. 42 55/88 laying down the provisions for implementing Regulation (EEC) No. 2 0 52/88 as regards the European Social Fund. EUROPEAN SOCIAL FUND 277 Structural Funds: may be at national or regional level) of the state-of-play ERDF, ESF, EAGGF and FIFG. These are the main financial with regard to the Objective targeted and sets out the instruments used by the European Union to reduce dispar government’s main priorities for action. ities and promote economic and social cohesion across Europe. Their combined efforts help to boost the EU’s competitive position and, consequently, to improve the CSF (Community Support Framework): prospects of its citizens. this document, established by the Commission in collab oration with the Member State, constitutes the Commission’s response to the Member State’s require European Social Fund (ESF): ments as set out in the Plan. It describes in general terms set up by the Treaty of Rome, the ESF is the European the joint action to be undertaken by the Member State Union’s main tool for the development of human and the Union and sets out priorities for action, funding resources and the improvement of the workings of the and forms of assistance. labour market. Its aim is to improve the prospects of those who face the greatest obstacles in finding, keeping or regaining work. OP (Operational Programme): sets out a series of measures for translating established priorities into action. Submitted by the Member State to European Regional Development Fund (ERDF): the Commission for approval, the OP takes the form of a this instrument aims to reduce regional development dis request for assistance in implementing a set of coherent, parities, primarily through productive investment, the cre multiannual measures. These requests for assistance ation and modernisation of infrastructure, measures to must dovetail with the timetable and priorities for action generate regional development and related investment in and funding set out in the CSF. education and health. SPD (Single Programming Document): European Agricultural Guidance and Guarantee Fund in order to speed up and simplify the programming pro (EAGGF): cedure, Member States have had the option since 1993 the Guidance Section of the EAGGF is intended to of presenting a Single Programming Document, incor improve the efficiency of farm structures, to support porating both the Plan and the financing request. In investment in the food processing and marketing sector this case, the Commission adopts a single decision in and to provide compensatory payments in less-favoured respect of elements normally set out separately in a farming areas. CSF and OP. Financial Instrument of Fisheries Guidance (FIFG): “mainstream” funding/measures: set up to improve the competitiveness of the fisheries sec Structural Fund assistance or action implemented in the tor through restructuring. Measures include adapting and framework of a CSF or SPD. modernising the fleets, developing aquaculture, upgrad ing the processing and marketing of fishery and aquacul ture products and improving fishing port facilities. Community Initiative: special financial instrument of EU structural policy which the Commission proposes to the Member States European Investment Bank (EIB): on its own initiative. The Community Initiatives aim to set up by the Treaty of Rome, the ElB’s mission is to con resolve problems which have a particular impact at tribute to the balanced development of the European European level. They have three features which give Union. It grants long-term loans to the public and private them their added value as compared with the other sectors for the financing of structural development projects measures financed by the Structural Funds: their in the economic and social fields. transnational and innovative nature, the “ bottom-up" approach to implementation and the high profile given to the measures on the ground. Plan: at the programming phase, this is the first document Innovative measures: submitted by the Member State. It presents a diagnos these are also financed by the Structural Funds and cover tic analysis (which, depending on the circumstances, research, pilot projects and technical assistance. A P P E N ICES Council Regulation (EEC) No 2081/93 of 20 July 1993 Amending Regulation (EEC) No 2052/88 on the tasks of the Structural Funds and their effectiveness and on coordi nation of their activities between themselves and with the operations of the European Investment Bank and the other existing financial instruments The Council of the European adapt structures in the fisheries and aquaculture sector were laid down by Regulation (EEC) No 4028/86 (6); whereas Communities finance for these operations comes from a variety of budgetary resources, including, in some cases, the European Agricultural Having regard to the Treaty establishing the European Guidance and Guarantee Fund (EAGGF) Guidance Section; Economic Community, and in particular Article 130d thereof, whereas, with a view to regrouping all these resources in a sin gle financial instrument, the financial instrument for fisheries Having regard to the proposal from the Commission (*), guidance (hereinafter referred to as 'FIFG') was established by Regulation (EEC) No 2080/93 (7); whereas, to the extent that Having regard to the opinion of the European Parliament (2), the single instrument supports the achievement of the objec tives set out in Article 130a of the EEC Treaty, assistance from Having regard to the opinion of the Economic and Social it should be coordinated with that from the Structural Funds; Committee (3), whereas all the provisions governing the Structural Funds should therefore be extended to that instrument; Whereas Article 19 of Regulation (EEC) No 2 0 52/88 (4) requires the Council to re-examine that Regulation on the Whereas the Structural Funds constitute the chief means of basis of a Commission proposal before 31 December 1993; redressing the socio-economic disturbances which review of the common fisheries policy is likely to create in certain costal Whereas .the main principles of the 1988 reform of the areas; whereas it is consequently necessary, except in regions Structural Funds should continue to govern the activities of already covered by Objective 1, to adjust the eligibility criteria the Funds until 1999 but whereas experience hitherto has for Objectives 2 and 5 (b) to take account of these problems; demonstrated the need for improvements to make structrural policies more effective, simpler and more transparent; Whereas Regulation (EEC) No 792/93 (8) introduces a tempo rary cohesion financial instrument through which the Whereas Article 1 of Regulation (EEC) No 20 52/88 lays down Community makes a financial contribution to projects relating the priority objectives for Community action through the to the environment and to the trans-European transport infra Structural Funds, the European Investment Bank (EIB) and structure network in Greece, Spain, Ireland and Portugal, pro the other financial instruments; vided that each of those countries has a convergence pro gramme which has been examined by the Council designed to Whereas the Community has undertaken a reform of the avoid an excessive public sector deficit; whereas the said common agricultural policy entailing structural measures, Regulation is temporary in nature pending the establishment of particularly for the promotion of rural development; the Cohesion Fund referred to in Article 130d of the Treaty as provided for by the Treaty on European Union and will be re Whereas Community measures for the improvement of the con examined before 31 December 1993; whereas the financial ditions under which fishery and aquaculture products are instrument for which provision has been made, as amended if processed and marketed were laid down by Regulation (EEC) necessary (hereinafter referred to as the 'cohesion financial No 4052/89 (5); whereas Community measures to improve and instrument'), must be covered by Regulation (EEC) No 1 OJ No C 118, 28. 4. 1993, p. 21. 2 Opinion delivered on 14 July 1993 (not yet published in the Official Journal). 3 OJ No C 201, 26. 7. 1993, p. 52. 4 OJ No L 185, 15. 7. 1988, p. 9. 5 OJ No L 388, 30. 12. 1989, p. 1. 6 OJ No L 376, 31. 12. 1986, p. 7. Regulation as last amended by Regulation (EEC) No 3946/92 (OJ No L 401, 31. 12. 1992, p. 1). 7 See page 1 of this Official Journal 8 OJ No L 79, 1. 4. 1993, p. 74. EUROPEAN SOCIAL FUND 279 2052/88; whereas, pursuant to Article 7 of Regulation (EEC) Whereas the EIB will continue to devote the majority of its No 792/93, no item of expenditure may benefit both from this resources to promoting economic and social cohesion and in instrument and from the EAGGF, the European Social Fund particular to developing further loans in the Member States (ESF) or the European Regional Development Fund (ERDF); which benefit from the cohesion financial instrument and in the Community's Objective 1 regions; Whereas Objectives 3 and 4 are concerned, on the one hand, with combating long-term unemployment and, on the other Whereas, in order to improve transparency, there should be ari hand, with facilitating integration of young people; whereas indicative breakdown of the resources of the Structural Funds these Objectives, for whose implementation the ESF is available for commitment by Member State and by each of responsible, should be clarified by combining them under the Objectives 1 to 4 and 5 (b); whereas, when such alloca Objective 3, widening the latter to include the integration into tion is made, 'full account should be taken, as now, of working life of persons exposed to exclusion from the labour national prosperitiy, regional prosperity, population of the market and introducing a new Objective 4 to facilitate the regions, and the relative severity of structural problems, adaptation of workers of either sex to industrial changes and including the level of unemployment and, for the appropriate changes in production systems; objectives, the needs of rural development'; whereas the resources of Objective 5 (a), except for those fields covered Whereas the principle of equal opportunities for men and by Objective 1, must be subject to appropriate allocation; women on the employment market is a goal which the Community seeks and to which structural measures should Whereas, in order to avoid excessive increases in budgetary contribute; expenditure in the less prosperous regions, it is desirable that the levels of Community participation for operations sup Whereas Article 3 t 1) of Regulation (EEC) No 2052/88 spec ported by the Structural Funds be modulated and that, in ifies the tasks of the ERDF; whereas investment in the field consequence, intervention rates may be increased, in excep of education and health in the Objective 1 regions should be tional cases, in these regions; supported; Whereas, in order to secure effective concentration of assis Whereas paragraph 2 of that Article specifies the tasks of the tance, Community measures under Objective 2 could cover ESF; whereas these should be adapted to take account of the up to 15 % of the Community population; new definitions of Objectives 3 and 4; whereas, as part of the redefinition of measures eligible for assistance from the ESF, Whereas, in order to ensure better coordination between aid for employment may be presented in the form, inter alia, structural assistance under Objectives 2 and 5 (b), the lists of aid for geographical mobility; of areas eligible under those Objectives should, as far as pos sible, be adopted at the same time; Whereas the European Council of 11 and 12 December 1992 fixed the resources available for commitment by the Whereas measures to speed up the adjustment of agricultural Structural Funds and other structural operations for the and fisheries structures (Objective 5 (a)) should be coordi period 1993 to 1999; whereas these resources are spending nated with the other Objectives referred to in this Regulation; targets; whereas it also fixed the resources available in real terms for commitment under Objective 1 for that period; Whereas the principles and goals of sustainable development are whereas those amounts will permit commitments under set out in the Community programme of policy and action in rela Objective 1 and under the cohesion financial instrument to tion to the environment and sustainable development as referred double in the four Member States eligible under that finan to in the Council Regulation of 1 February 1993 0); whereas cial instrument, so reaching about ECU 85 billion in those Community policy in the field of the environment is designed to four Member States for the period 1993 to 1999; ensure a high level of protection while taking account of the vari ety of situations in the various regions of the Community; Whereas partnership should be strengthened by involving eco whereas the requirements of environmental protection should nomic and social partners in programming, in an appropriate form part of the definition and implementation of other fashion, through a better definition of the responsibilities of Community policies; whereas the Member States should there each party in application of the principle of subsidiarity; fore supply, in the plans submitted under Objectives 1, 2 and 5 (b), an appraisal of the state of the environment and the envi Whereas ex ante appraisal, monitoring and ex post evaluation ronmental impact of the operations envisaged, in accordance should be developed and provisions should be made for greater with the provisons of Community law in force, as well as the flexibility in the implementation of Community structural assis steps they have taken to associate their environmental authori tance to meet real needs; whereas, in the interests of effec ties with the preparation and implementation of the plans; tiveness, thorough appraisal should precede the commitment of Community resources in order to ensure that they yield socio Whereas a report on progress in achieving economic and economic benefits in keeping with the resources deployed; social cohesion should be presented every three years, 1 OJ No C 138, 17. 5. 1993, p. 1. to the attainment of Objectives 1 to 5 (b) on the basis of the Has adopted this Regulation: breakdown given below: - Objective 1: ERD, ESF and EAGGF Guidance Section, - Objective 2: ERDF and ESF, Article 1 - Objective 3: ESF, - Objective 4: ESF, Articles 1 to 19 of Regulation (EEC) No 2052/88 shall be - Objective 5 (a): EAGGF Guidance Section and FIFG, replaced by the following: - Objective 5 (b): EAGGF Guidance Section, ESF and ERDF. I. Objectives and tasks of the 2. The EIB, while performing the tasks assigned to it by Structural Funds Article 129 and 130 of the Treaty, shall cooperate in achiev ing the objectives set out in Article 1, in accordance with the procedures laid down in its Statute. A rticle 1 Objectives 3. The other existing financial instruments may contribute, each according to the specific provisions governing its opera Community action through the Structural Funds, the financial tions, to any measure supported by one or more of the instrument for fisheries guidance (hereinafter referred to as the Structural Funds in connection with one of the Objectives 1 "FIFG") established by Regulation (EEC) No 2080/93 (*), the to 5 (b). Where appropriate, the Commission shall take mea EIB cohesion financial instrument and other existing financial sures to enable these instruments to make a better contribu instruments shall support the achievement of the general tion to the Objectives set out in Article 1. objectives set out in Articles 130a and 130c of the Treaty. The Structural Funds, the FIFG, the EIB and the other existing financial instruments shall each contribute in appropriate fash A rticle 3 ion to the attainment of the following five priority objectives: Tasks of the Funds 1. promoting the development and structural adjustment 1. In accordance with Article 130c of the Treaty, the ERDF of regions whose development is lagging behind (here shall: inafter referred to as “Objective 1"); - have the essential task of providing support for 2. converting the regions, frontier regions or parts of Objectives 1 and 2 in the regions concerned, regions (including employment areas and urban commu - in addition, participate in the operations of Objective 5 (b). nities) seriously affected by industrial decline (here inafter referred to as "Objective 2"); It shall in particular provide support for: 3. combating long-term unemployment and facilitating (a) productive investment; the integration into working life of young people and of (b) the creation or modernization of infrastructure which persons exposed to exclusion from the labour market contribute to the development or conversion of the (hereinafter referred to as "Objective 3"); regions concerned; 4. facilitating the adaptation of workers of either sex to (c) measures to exploit the potential for internally gener industrial changes and to changes in production systems ated development of the regions concerned; (hereinafter referred to as "Objective 4“); (d) investment in the field of education and health in 5. promoting rural development by: regions concerned by Objective 1. (a) speeding up the adjustment of agricultural structures in the framework of the reform of the common agricultural The ERDF shall also provide support for studies or pilot policy; schemes concerning regional development at Community (b) facilitating the development and structural adjust level, especially where frontier regions of Member States are ment of rural areas, involved. (hereinafter referred to as "Objectives 5 (a) and 5 (b)"). In the framework of the review of the common fisheries 2. Within the framework of Article 123 of the Treaty, the ESF policy, measures for the adjustment of fisheries struc tures come under Objective 5 (a). shall have the priority task of providing support for Objectives 3 and 4 throughout the Community and, in addition, provid ing support for Objectives 1, 2 and 5 (b). A rticle 2 Means To combat unemployment, it shall in particular contribute to: (a) facilitating access to the labour market; 1. The Structural Funds (the EAGGF Guidance Section, the (b) promoting equal opportunities in the labour market; ESF and the ERDF) and the FIFG shall contribute, each (c) developing skills, abilities and professional qualifications; according to the specific provisions governing its operations, (d) encouraging job creation. * OJ No L 193, 31.7.1993, p .l. In this framework, the ESF shall provide for studies and pilot The provisions of this Regulation and the provisions adopted pur schemes, especially those covering aspects common to sev suant to Article 3 (5) of this Regulation shall apply to the FIFG. eral Member States. 3. In line with the principles set out in Article 39 of the II. Arrangements For Structural Treaty, assistance from the EAGGF Guidance Section shall be O perations geared in particular to the following tasks: (a) strengthening and re-organizing agricultural and also, in this context, forestry structures, including those for A rticle k the marketing and processing of agricultural and Complementarity, partnership, technical assistance forestry products and helping to offset the effects of natural handicaps on agriculture; 1. Community operations shall be such as to complement or (b) ensuring the conversion of agricultural production and contribute to corresponding national operations. They shall be fostering the development of supplementary activities established through close consultations between the for farmers of either sex; Commission, the Member State concerned and the competent (c) helping to ensure a fair standard of living for farmers authorities and bodies - including, within the framework of each of either sex; Member State's national rules and current practices, the eco (d) helping to develop the social fabric of rural areas, to nomic and social partner, designated by the Member State at safeguard the environment and to preserve the coun national, regional, local or other level, with all parties acting as tryside (inter alia by securing the conservation of nat partners in pursuit of a common goal. These consultations shall ural agricultural resources). hereinafter be referred to as the "partnership ". The partnership shall cover the preparation and financing, as well as the ex ante The EAGGF Guidance Section shall also contribute to techni appraisal, monitoring and ex post evaluation of operations. cal assistance and information operations, and provide sup port for studies or pilot schemes concerning the adjustment The partnership will be conducted in full compliance with the of agricultural structures and the promotion of rural develop respective institutional, legal and financial powers of each of ment at Community level. the partners. 4. The specific provisions governing operations under each 2. Acting in accordance with the provisions of this Regulation Structural Fund shall be laid down in the implementing deci and with the provisions referred to in Article 3 (4) and (5), the sions adopted pursuant to Article 130e of the Treaty. Commission shall take steps and implementing measures to ensure that Community operations are in support of the They shall establish in particular the procedures for provid objectives set out in Article 1 and impart an added value to ing assistance in one of the forms defined in Article 5 (2), national initiatives. the conditions of eligibility and of Community participation. Without prejudice to paragraph 5 of this Article, they shall 3. Within the framework of the partnership, the Commission also establish the arrangements for the monitoring, evalua may, in accordance with the provisions referred to in Article tion, financial management and checking of measures and 3(4), contribute to the preparation, implementation and any transitional provisions necessary in relation to existing adjustment of operations by financing preparatory studies rules. and technical assistance operations locally, in agreement with the Member State concerned and, where appropriate, with 5. The Council, acting on the basis of Article 130e of the the authorities and bodies referred to in paragraph 1. Treaty, shall adopt the provisions necessary for ensuring coor dination between the different Structural Funds, on the one 4. For each objective, tasks shall be shared between the hand, and between them and the EIB and the other existing Commission and the Member State during the preparation of financial instruments, on the other. The Commission and the operations in accordance with Articles 8 to 11a. EIB shall establish by mutual agreement the practical arrangements for coordinating their operations. A rticle 5 The implementing decisions referred to in this Article shall Forms of assistance also lay down the transitional provisions concerning the inte grated approaches adopted under existing rules. 1. Financial assistance under the Structural Funds, from the EIB and the other existing Community financial instruments shall be provided in a variety of forms that reflect the nature A rticle 3a of the operations. Tasks of the FIFG 2. In the case of the Structural Funds and the FIFG, finan The tasks on the FIFG and specific provisions governing its cial assistance may be provided principally in one of the operations, including transitional provisions, shall be laid following forms: down in Regulation (EEC) No 20 80/93 by virtue of Article (a) part-financing of operational programmes; 43 of the Treaty. (b) part-financing of a national aid scheme including 282 A P P F N D I C E S repayments; out in Articles 130a and 130c of the Treaty are effectively (c) provision of global grants, as a general rule managed by honoured. Such monitoring shall, where necessary, make it an intermediary designated by the Member State in agree possible to adjust operations in line with requirements arising ment with the Commission and allocated by the interme during implementation. diary in the form of individual grants to final beneficiaries; (d) part-financing of suitable projects; The Commission shall periodically inform the European (e) support for technical assistance, including the mea Parliament and the Committees referred to in Article 17 as to sures to prepare, appraise, monitor and evaluate oper the implementation of operations; it shall lay before those ations, and pilot and demonstration projects. Committees the annual report referred to in the first subpara graph of Article 16. With the exception of those referred to in (e), the forms of assistance undertaken on the Commission's initiative may be 2. In order to gauge their effectiveness, Community structural only those established by the Member State or the competent operations shall be the subject of prior appraisal, monitoring authorities designated by the Member State and submitted to and ex post evaluation designed to appraise their impact with the Commission by that Member State or any other body it respect to the objectives set out in Article 1 and to analyse may, should the need arise, designate to do so. their effects on specific structural problems. Acting by a qualified majority on a proposal from the 3. The procedure for appraisal, monitoring and evaluation of Commission and in cooperation with the European Community operations shall be established by the provisions Parliament, the Council may introduce other forms of assis referred to in Article 3 (4) and (5) and, in the case of the EIB, tance of the same type. in the manner provided for in its Statute. 3. In the case of the EIB and the other existing financial instruments, each observing its own specific rules, financial A rticle 7 assistance shall be provided, in particular, in one of the fol Compatibility and checks lowing forms: - individual loans, global loans and framework loans or 1. Measures financed by the Structural Funds or receiving other forms of part-financing given investment projects assistance from the EIB or from another existing financial or programmes, instrument shall be in conformity with the provisions of the - part-financing of technical assistance or of studies in Treaties, with the instruments adopted pursuant thereto and preparation for operations, with Community policies, including those concerning the - guarantees. rules on competition, the award of public contracts and envi ronmental protection and the application of the principle of 4. Community assistance shall in an appropriate way combine equal opportunities for men and women. the assistance on the form of grants and loans referred to in paragraphs 2 and 3 in order to maximize the stimulus pro 2. Without prejudice to the financial Regulation, the provi vided by the budgetary resources deployed, making use of sions referred to in Article 3 (4) and (5) shall lay down har existing financial engineering techniques. monized rules for strengthening checks on structural opera tions. They shall be adjusted to reflect the special nature of 5. An operational programme within the meaning of para the financial operations concerned. The procedures for carry graph 2 (a) shall comprise a consistent series of multiannual ing out checks on operations undertaken by the EIB shall be measures which may be implemented through recourse to as set out in its Statute. one or more Structural Funds, to one or more of the other existing financial instruments and to the EIB. III. Provisions relating to the Where a form of assistance involves participation under more Specific Objectives than one Structural Fund and/or more than one other finan cial instrument, it may be implemented in the form of an integrated approach, the details of which shall be laid down A rticle 8 in the provisions referred to in Article 3 (5). Objective 1 Assistance shall be undertaken on the initiative of the 1. The regions covered by Objective 1 shall be regions at Member States or of the Commission in agreement with the NUTS level II whose per capita GDP, on the basis of the fig Member State concerned. ures for the last three years, is less than 75 % of the Community average. A rticle 6 Northern Ireland, the five new German Laender, east Berlin, Prior appraisal, monitoring and ex post evaluation and the French overseas departments, the Azores, the Canary Islands and Madeira shall also be covered by this Objective, 1. Community operations shall be monitored to ensure that as shall other regions whose per capita GDP is close to that the commitments entered into as part of the objectives set of the regions referred to in the first subparagraph and which EUROPEAN SOCIAL FUND 283 APPENDICES have to be included within the scope of Objective 1 for spe Member States shall also submit the plans referred to in cial reasons. Article 10 for the regions concerned; the elements of those plans may also be included in the regional development plans Abruzzi shall be eligible for aid under Objective 1 for the of the regions concerned. period 1 January 1994 to 31 December 1995. 5. The Commission shall appraise the proposed plans and the Exceptionally, in view of their unique adjacent position and other elements referred to in paragraph 4 to determine their regional GDP at NUTS level III, the "arrondissements " whether they are consistent with the objectives of this of Avesnes, Douai and Valenciennes as well as Argyll and Regulation and with the provisions and policies referred to in Bute, Arran, the Cambraes and western Moray shall also be Articles 6 and 7. On the basis of all the plans referred to in covered by this Objective. paragraph 4, it shall establish, through the partnership referred to in Article 4 (1) and in agreement with the Member 2. The list of regions concerned by Objective 1 is given in State concerned, the Community support framework for Annex I. Community structural operations, in accordance with the pro cedure referred to in Article 17. 3. The list of regions shall be applicable for six years from 1 January 1994. Before the end of that period, the Commission The Community support framework shall cover, in particular shall review the list in good tim e so that the Council, acting - the development objectives, quantified where they lend by a qualified majority on a proposal from the Commission themselves to quantification, the progress to be achieved and after consulting the European Parliament, may establish during the period concerned compared with the current a new list to apply for the following period. situation, and the priorities adopted for Community assis tance; procedures for the appraisal, monitoring and eval 4. The Member States concerned shall submit to the uation of operations to be undertaken, Commission their regional development plan. These plans - the forms of assistance, shall include: - the indicative financing plan, with details of the amount - a description of the current situation with regard to dis of assistance and its source, parities and development gaps, the financial resources - the duration of the assistance. deployed and the main results of operations undertaken in the previous programming period, in the context of The Community support framework shall provide coordination Community structural assistance received and with of Community structural assistance towards those of the regard to the evaluation results available, objectives referred to in Article 1 which may be pursued in a - a description of an appropriate strategy to achieve the particular region. objectives referred to in Article 1, the regional develop ment priorities selected and specific objectives, quanti The Community support framework may, if necessary, be fied where they lend themselves to quantification; a revised and adjusted through the partnership defined in prior appraisal of the expected impact, including that Article 4 t1), on the initiative of the Member State or of the on jobs, of corresponding operations with a view to Commission in agreement with the Member State, in the light ensuring that they yield medium-term economic and of relevant new information and of the results obtained dur social benefits in keeping with the resources deployed, ing implementation of the operations concerned, including - an appraisal of the environmental situation of the region the results of monitoring and evaluation. concerned and an evaluation of the environmental impact of the strategy and operations referred to above At the duly substantiated request of the Member State con in terms of sustainable development in agreement with cerned, the Commission shall adopt distinct Community sup the provisions of Community law in force; the arrange port frameworks for one or more of the plans referred to in ments made to associate the competent environmental paragraph 4. authorities designated by the Member State in the preparation and implementation of the operations envis 6. The arrangements for the implementation of this Article shall aged in the plan and to ensure compliance with be specified in the provisions referred to in Article 3 (4) and (5). Community environmental rules, - an indicative overall financial table summarizing the 7. Programming shall also cover operations under Objective 5 national and Community financial resources provided (a) to be implemented in the regions concerned, making a for and corresponding to each regional development pri distinction between those which relate to agricultural struc ority adopted in the context of the plan, as well as an tures and those which relate to fisheries structures. indication of the planned use of the assistance available under the Funds, from the EIB and the other financial instruments in implementing the plan. A rticle 9 Objective 2 The Member States may submit an overall regional develop ment plan for all their regions included in the list referred to 1. The declining industrial areas concerned by Objective 2 in paragraph 2, provided that such plan comprises the fea shall comprise regions, frontier regions or parts of regions tures listed in the first subparagraph. (including employment areas and urban communities). 284 2. Subject to paragraph 4, the areas referred to in paragraph 4. In establishing that list and in defining the Community 1 must represent or belong to a NUTS level III territorial unit support frameworkreferred to in paragraph 9, the Commission which satisfies all the following criteria: and the Member States shall seek to ensure that assistance (a) the average rate of unemployment recorded over the is genuinely concentrated on the areas most seriously last three years must have been above the Community affected, at the most appropriate geographical level, taking average; into account the particular situation of the areas concerned. (b) the percentage share of industrial employment in Member States shall supply to the Commission all informa total employment must have equalled or exceeded the tion which might be of assistance to it in this task. Community average in any reference year from 1975 onwards; 5. West Berlin shall be eligible for aid under this Objective for (c) there must have been an observable fall in industrial the first three-year period referred to in paragraph 6. employment compared with the reference year chosen in accordance with (b). 6. The list of eligible areas shall be reviewed by the Commission periodically in close consultation with the Member In addition, Community assistance may, subject to paragraph State concerned. However, the assistance granted by the 4, also extend to: Community in respect of Objective 2 in the various areas listed - adjacent areas satisfying criteria (a), (b) and (c) as well shall be planned and implemented on a three-yearly basis. as areas satisfying criteria (a), (b) and (c) that are adja cent to an Objective 1 region, 7. Three years after the entry into force of the list referred to in - urban communities with an unemployment rate at least paragraph 3, the criteria laid down in paragraph 2 may be altered 50 % above the Community average which have by the Council, acting by a qualified majority on a proposal from recorded a substantial fall in industrial employment, the Commission and after consulting the European Parliament. - areas which have recorded substantial job losses over the last three years or are experiencing or are threatened 8. The Member States concerned shall submit their regional with such losses in industrial sectors of decisive impor and social conversion plans to the Commission. Those plans tance for their economic development, including those shall include: losses brought about by industrial changes and changes - a description of the current situation, the financial in production systems, with a consequent serious wors resources deployed and the main results of operations ening of unemployment in those areas, undertaken in the previous programming period, in the - areas especially urban areas, with severe problems context of Community structural assistance received linked to the regeneration of derelict industrial sites, and with regard to the evaluation results available, - other industrial or urban areas where the socio-eco- - a description of an appropriate strategy to achieve the nomic impact of the restructuring of the fisheries sec objectives listed in Article 1 and the conversion priori tor, assessed on the basis of objective criteria, justifies ties selected for the areas concerned, quantifying the such assistance. progress anticipated, where it lends itself to quantifica tion, a prior appraisal of the expected impact, including In implementing the criteria defined above, the Commission that on jobs, of corresponding operations with a view to will take account of how the national situations with respect ensuring that they yield medium-term economic and to unemployment rate, industrialization rate and industrial social benefits in keeping with the resources deployed, decline compare with the Community average. - an appraisal of the environmental situation of the area concerned and an evaluation of the environmental impact For the application of these criteria, Member States may also of the strategy and operations referred to above in terms take as a reference basis the specific realities influencing the of sustainable development in agreement with the provi actual activity rate or employment rate of the population. sions of Community law in force; the arrangements made to associate the competent environmental authorities 3. As soon as this Regulation has entered into force, and designated by the Member State in the preparation after considering the Community information relating to the and implementation of the operations envisaged in the provisions referred to in paragraph 2, the Member States plan and to ensure compliance with Community envi concerned shall propose to the Commission on the basis of the ronmental rules, provisions of the said paragraph and taking account of the - an indication of the planned use of assistance available concentration principle, the list of areas which in their view under the Funds, from the EIB and the other financial should benefit from assistance under Objective 2, and provide instruments in implementing the plan. the Commission with all useful information to this end. 9. The Commission shall examine the proposed plans to deter On the basis of this information and its overall assessment of mine whether they are consistent with the objectives of this the proposals submitted, taking into account the national prior Regulation and with the provisions and policies referred to in ities and situations, the Commission shall, in close consultation Articles 6 and 7. On the basis of these plans, it shall establish, with the Member State concerned in accordance with the pro through the partnership defined in Article 4 (1) and in agree cedure provided for in Article 17, establish an initial list for ment with the Member State concerned, the Community con three years of the areas referred to in paragraph 1. The version support framework for Community structural operations, Commission shall inform the European Parliament of that list. in accordance with the procedures referred to in Article 17. EUROPEAN SOCIAL FUND 285 A P P E N ICES The Community support framework shall cover in particular: 2. Objective 4 - the conversion objectives, quantified where they lend themselves to quantification, the progress to be achieved The Member States shall submit to the Commission plans for during the period concerned compared with the current operations designed to facilitate the adaptation of workers of situation and the priorities adopted for Community assis either sex to industrial change and to changes in production tance; procedures for the appraisal, monitoring and eval systems (Objective 4). uation of operations to be undertaken, - the forms of assistance, These plans shall include: - the indicative financing plan, with details of the amount - a description of the current situation and of likely of assistance and its source, changes in jobs and occupations, stressing needs in - the duration of the assistance. terms of initial and further vocational training, taking account of the evaluation results available, The Community support framework may, if necessary, be - a description of an appropriate strategy to achieve the revised and adjusted through the partnership defined in Article objectives listed in Article 1 and the priorities selected for 4 (!), on the initiative of the Member State concerned or of the the attainment of Objective 4, quantifying the progress Commission in agreement with the Member State, in the light anticipated where it lends itself to quantification,prior of relevant new information and of the results obtained during appraisal of the expected impact, including that on jobs, implementation of the operations concerned including, in par of the operations involved with a view to ensuring that the ticular, the results of monitoring and evaluation. medium-term social and economic benefits are in keep ing with the financial resources deployed, 10. The arrangements for the implementation of this Article shall - measures adopted to involve the competent authorities be specified in the provisions referred to in Article 3 (4) and (5). and bodies designated by the Member State at the appropriate levels in the preparation and implementa tion of operations featuring in the plan, Article 10 - an indication of the use to be made of assistance avail Objectives 3 and 4 able under the ESF - where appropriate, in conjunction with assistance from the EIB or other existing Community 1. Objective 3 financial instruments - in implementing the plan. The Member States shall submit to the Commission plans for The Commission shall establish, for each Member State and operations to combat long-term unemployment and to facili for the individual plans submitted to it, through the partner tate the integration into working life of young people and of ship referred to in Article 4 t1) and in agreement with the persons exposed to exclusion from the labour market Member State concerned, the Community support framework (Objective 3). for the attainment of Objective 4, in accordance with the pro cedures set out in Article 17. The plans shall include: - a description of the current situation, the financial 3. Common provisions resources deployed and the main results of operations undertaken in the previous programming period, in the 3.1. The plans shall distinguish between the information context of Community structural assistance received relating to regions covered by Objective 1 and the rest of the and with regard to the evaluation results available, territory. The information relating to Objective 1 regions may - a description of an appropriate strategy to achieve the also be included in the regional development plans referred objectiveslisted in Article 1 and the priorities selected to in Article 8 (4). for the implementation of Objective No 3, quantifying the progress anticipated where this lends itself to quan 3.2. For the presentation of the plans relating to Objectives 3 tification; a prior appraisal of the expected impact, and 4, the Member States may also use as a reference basis includingthat on jobs, of the operations involved in the specific realities influencing the actual activity rate or order to show that they yield medium-term social and employment rate of the population. economic benefits in keeping with the financial resources deployed, - an indication of the use to be made of assistance avail 3.3. The Commission shall examine the proposed plans to able under the ESF - where appropriate, in conjunction determine whether they are consistent with the objectives of with assistance from other existing Community financial this Regulation and with the provisions and policies referred instruments - in implementing the plan. to in Articles 6 and 7. The Commission shall draw up the Community support frameworks in agreement with the The Commission shall establish, for each Member State and Member State concerned. for the individual plans submitted to it, through the partner ship referred to in Article 4 (!) and in agreement with the Each Community support framework shall cover in particular: Member State concerned, the Community support framework - the ojectives planned, quantified where they lend them for the attainment of Objective 3, in accordance with the pro selves to quantification, the progress to be achieved cedures set out in Article 17. during the period concerned compared with the current 286 A P P E N situation, and the priorities adopted for Community assis trend in agricultural incomes and the size of the agricul tance; procedures for the appraisal, monitoring and eval tural labour force; uation of operations to be undertaken, - the structure of agricultural holdings and the age structure - the forms of assistance, of the gainfully employed agricultural labour force, - the indicative financing plan, with details of the amount - the pressures exerted on the environment and on the of assistance and its source, countryside, - the duration of the assistance. - the situation of areas within mountain or less-favoured areas classified pursuant to Article 3 of Directive The Community support framework may, if necessary, be 75/268/EEC(*), revised and adjusted through the partnership defined in - the socio-economic impact on the area, as measured by Article 4 t1) on the initiative of the Member State or of the objective criteria, of the restructuring of the fisheries Commission in agreement with the Member State in the light sector. of relevant new information and of the results obtained dur ing implementation of the operations concerned including, in 3. As soon as this Regulation has entered into force, and after particular, of the results of monitoring and evaluation. considering the Community information relating to the provi sions referred to in paragraphs 1 and 2, the Member States 3.4. The arrangements for the implementation of this Article concerned shall propose to the Commission, on the basis of shall be specified in the provisions referred to in Article 3 (4) the provisions of the said paragraphs and taking account of the and (5). concentration principle, the list of areas which in their view should benefit from assistance under Objective 5 (b), and pro vide the Commission with all useful information to this end. A rticle 11 Objective 5 (a) On the basis of this information and its overall assessment of the proposals submitted, taking into account the national pri The arrangements for the implementation of operations con orities and situations, the Commission shall, in close consul nected with the adaptation of agricultural and fisheries struc tation with the Member State concerned and in accordance tures (Objective 5 (a)) shall be decided within the framework with the procedure laid down in Article 17, establish the list of the provisions referred to in Article 3 (4) and (5). of eligible areas. The Commission shall inform the European Parliament of this list. Article 11a 4. In selecting rural areas and in programming assistance Objective 5 (b) from the Funds, the Commission and the Member States shall take care to ensure that assistance is effectively con 1. The rural areas outside Objective 1 regions that may centrated on areas suffering from the most serious rural receive Community assistance under Objective 5 (b) are those development problems. Member States shall supply to the which have a low level of socio-economic development Commission all information which might be of assistance to assessed on the basis of GDP per inhabitant and also satisfy it in this task. at least two of the following three criteria: (a) high share of agricultural employment in total 5. The Member States concerned shall submit their rural employment; development plans to the Commission. Those plans shall (b) low level of agricultural income, in particular as include: expressed in terms of agricultural value added per - a description of the current situation, the financial agricultural work unit (AWU); resources deployed and the main results of operations (c) low population density and/or a significant depopula undertaken in the previous programming period, in the tion trend. context of the Community structural assistance received and taking account of the evaluation results available, Assessment of the eligibility of areas according to the above - a description of an appropriate strategy to achieve the criteria shall take into account socio-economic parameters objectives listed in Article 1 and the rural development which indicate the seriousness of the general situation in the priorities selcted for the areas concerned, specific objec areas concerned, and how it is developing. tives, quantified, where they lend themselves to quantifi cation, a prior appraisal of the expected impact, includ 2. The Community assistance may also be extended to other ing that on jobs, of corresponding operations with a view rural areas with low levels of socio-economic development to ensuring that they yield medium-term economic and that are outside Objective 1 regions if they meet one or more social benefits in keeping with the resources deployed, of the following criteria: - an assessment of the environmental situation of the region - the peripheral nature of areas or islands in relation to concerned and an evaluation of the environmental impact major centres of economic and commercial activity in of the strategy and operations referred to above in accor the Community, dance with the principles of sustainable development in - the sensitivity of the area to developments in agricul agreement with the provisions of Community law in force; ture, especially in the framework of the reform of the the arrangements made to associate the competent envi common agricultural policy, assessed on the basis of the ronmental authorities designed by the Member State in EUROPEAN SOCIAL FUND 287 the preparation and implementation of the operations fore The annual breakdown of these resources is shown in Annex II. seen in the plan and to ensure compliance with Community rules concerning the environment, 2. A considerable proportion of budgetary resources shall be - an indication of the planned use of assistance available concentrated on the regions whose development is lagging under the Funds, from the EIB and the other financial behind which are covered by Objective 1. instruments in implementing the plan, - any link with the consequences of reform of the common The resources available for commitment for these regions agricultural policy and the common fisheries policy. shall be ECU 96 346 million at 1992 prices for the period 1994 to 1999. 6. The Commission shall examine the proposed plans to determine whether they are consistent with the objectives of The annual breakdown of these resources is shown in Annex II. this Regulation and with the provisions and policies referred to in Articles 6 and 7. It shall establish, on the basis of those All operations under Objectives 1 to 5 to assist the regions cov plans, through the partnership referred to in Article 4 f1) and ered by Objective 1 shall be taken into account for this purpose. in agreement with the Member State concerned, the Community rural development support framework for 3. For the four Member States eligible for the cohesion finan Community structural assistance in accordance with the pro cial instrument, the increase in commitment appropriations cedures referred to in Article 17. for the Structural Funds must permit a doubling of commit ments in real terms under Objective 1 and the cohesion finan The Community support framework shall cover in particular: cial instrument between 1992 and 1999. - the rural development objectives, quantified where they lend themselves to quantification, the progress to be 4. The Commission shall, using transparent procedures, make achieved during the period concerned compared with the indicative allocations by Member State for each of the current situation, and the priorities adopted for Objectives 1 to 4 and 5 (b) of the Structural Fund commit Community assistance; procedures for the appraisal, ment appropriations taking full account, as previously, of the monitoring and evaluation of operations to be undertaken, following objective criteria: national prosperity, regional pros - the forms of assistance, perity, population of the regions, and the relative severity of - the indicative financing plan, with details of the amount structural problems, including the level of unemployment of assistance and its source, and, for the appropriate Objectives, the needs of rural devel - the duration of the assistance. opment. These criteria will be appropriately weighted in the allocation of resources. The Community support frameworks may, if necessary, be revised and adjusted, through the partnership provided for in In addition, Objective 5 (a) except for those fields covered Article 4 t1), on the initiative of the Member State concerned by Objective 1 shall receive an allocatioin based principally or of the Commission in agreement with the Member State in on continuity related to the degree of utilization of resources the light of relevant new information and of the results obtained during the preceding programming period and on the spe during implementation of the operations concerned, including cific structural needs of agriculture and fisheries as they are perceived. in particular the results of monitoring and evaluation. 5. For the period referred to in paragraph 1, 9 % of the com The Community support frameworks under Objective 5 (b) may repeat for information the details of the operations con mitment appropriations for the Structural Funds shall be devoted to funding assistance undertaken on the initiative of cerning the adjustment of agricultural structures under the Commission in accordance with Article 5 (5). Objective 5 (a) to be implemented in the areas eligible under Objective 5 (b). 6. For the purpose of their inclusion in the general budget of 7. The arrangements for the implementation of this Article shall the European Communities, the sums indicated in para be specified in the provisions referred to in Article 3 (4) and (5). graphs 1 and 2 and in Annex II shall be amended before each annual budgetary procedure to reflect price changes in the Community. IV. Financial provisions A rticle 13 A rticle 12 Differentiation of rates of assistance Resources and concentration 1. The Community contribution to the financing of operations 1. The resources available for commitment from the shall be differentiated in the light of the following: Structural Funds in the FIFG shall be ECU 141 471 million -the gravity of the specific, in particular regional or at 1992 prices for the period 1994 to 1999. social, problems to be tackled by the operations, * OJ No L 128, 19. 5. 1975, p. 1. Directive as last amended by Directive 82/786/EEC (OJ No L 327, 24. 11. 1982, p. 19) - the financial capacity of the Member State concerned, 3. Any territory may be eligible for assistance under only one taking into account in particular the relative prosperity of Objectives 1, 2 or 5 (b). of the State and the need to avoid excessive increases in budgetary expenditure, - the special importance attaching to measures from the Article 1 5 Community viewpoint, Transitional provisions - the special importance attaching to measures from the regional and national viewpoint, 1. This Regulation shall not affect multiannual operations, - the particular characteristics of the types of measure including the adjustment of Community support frameworks proposed. and forms of assistance, approved by the Council or by the Commission on the basis of the existing rules governing the 2. Such differentiation shall take account of the planned link Structural Funds applying before the entry into force of this between the grants and loans deployed, as referred to in Regulation. Article 5 (4). 2. Applications for assistance from the Structural Funds 3. The Community contribution granted by the Funds and the towards operations which are submitted under the provisions FIFG in respect of the various objectives listed in Article 1 applying before the entry into force of this Regulation shall be shall be subject to the following ceilings: considered and approved by the Commission on the basis of - a maximum of 75 % of the total cost and, as a general those provisions. rule, at least 50 % of public expenditure in the case of measures carried out in the regions eligible for assis 3. The provisions referred to in Article 3 (4) and (5) shall lay tance under Objective 1. Where the regions are located down specific transitional provisions relating to the implemen in a Member State concerned by the cohesion financial tation of this Article, including provisions to ensure that aid to instrument, the Community contribution may, in excep Member States is not interrupted pending the establishment of tional and duly justified cases, rise to a maximum of 80 the plans and operational programmes in accordance with the % of the total cost and to a maximum of 85 % of the new system and that the grant of assistance for projects total cost for the outermost regions, as well as for the granted assistance before 1 January 1989 shall be finally con outlying Greek islands which are under a handicap as cluded no later than 30 September 1995. far as distance is concerned, - a maximum of 50 % of the total cost and, as a general rule, at least 25 % of public expenditure in the case of A rticle 16 measures carried out in the other regions. Reports The minimum rates of assistance laid down in the first sub- Within the framework of Articles 130a and 130b of the paragraph shall not apply to revenue-bearing investment. Treaty, before 1 November of each year the Commission shall 4. For the preparatory studies and technical assistance mea submit to the European Parliament, the Council and the sures undertaken on the initiative of the Commission, financ Economic and Social Committee a report on the implementa ing by the Community may in exceptional and duly justified tion of this Regulation during the preceding year. cases amount to 100 % of total cost. In that report, the Commission shall in particular indicate 5. The arrangements for the implementation of this Article, includ what progress has been made towards achieving the objectives ing those concerning public funding of the operations concerned, listed in Article 1 and in concentrating assistance within the and the rates applied to revenue-bearring investment, shall be laid meaning of Article 12. down in the provisions referred to in Article 3 (4) and (5). The Commission shall submit a report at three-yearly intervals to the European Parliament, the Council and the Economic V. O ther provisions and Social Committee on the progress made towards eco nomic and social cohesion and the contribution thereto made by the Funds, the FIFG, the cohesion financial instrument, A rticle 14 the EIB and the other financial instruments. That report shall, Combination and overlapping of assistance if necessary, be accompanied by appropriate proposals with regard to Community operations and policies affecting eco 1. For any given period, an individual measure or operation nomic and social cohesion. The first such report shall be may benefit from assistance from only one Structural Fund or drawn op no later than 31 December 1996. the FIFG at a time. 2. An individual measure or operation may benefit from assis A rticle 17 tance from a Structural Fund or other financial instrument in Committees respect of only one of the Objectives listed in Article 1 at a time, unless otherwise permitted by the provisions referred to 1. In implementing this Regulation, the Commission shall be in Article 3 (4) and (5). assisted by four committees dealing respectively with: EUROPEAN SOCIAL FUND 289 A P P E N ICES - Objectives 1 and 2: advisory committee composed of VI. Final provisions representatives of the Member States, - Objectives 3 and 4: committee under Article 124 of A rticle 18 the Treaty, Implementation - Objective 5 (a): management committee composed of representatives of the Member States The Commission shall be responsible for the implementation (adjustment of agricultural structures), of this Regulation. management committee composed of representatives of the Member States (adjustment of fisheries structures), A rticle 19 - Objective 5 (b): management committee referred to Review clause under - Objective 5 (a): first sub-indent. On a proposal from the Commission, the Council shall re examine this Regulation before 31 December 1999. 2. In implementing assistance undertaken on its own initia tive in accordance with Article 5 (5), last subparagraph, the It shall act on the proposal in accordance with the procedure Commission shall be assisted by a management committee laid down in Article 130d of the Treaty.1 composed of representatives of the Member States. 3. Provisions setting out the arrangements for the operation of the committees referred to in paragraph 1 and measures con cerning the tasks of those committees in the framework of man Article 2 agement of the Funds shall be adopted in accordance with Article 3 (4) and (5), and the last subparagraph of Article 3a. ENTRY INTO FORCE This Regulation shall enter into force on the third day follow ing its publication in the Official Journal of the European Communities. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, 20 July 1993. For the Council The President W. CLAES 290 A P P E N ANNEX I Regions concerned by Objective 1 BELGIUM: Hainaut GERMANY: Brandenburg, Mecklenburg-Western Pomerania, east-Berlin, Saxony, Saxony-Anhalt, Thuringia GREECE: the entire country SPAIN: Andalucia, Asturias, Cantabria, Castilla y Leon, Castilla- La Mancha, Ceuta y Melilla, Comunidad Valenciana, Extremadura, Galicia, Canary Islands, Murcia FRANCE: French overseas departments, Corsica, the 'arrondissements' of Avesnes, Douai and Valenciennes IRELAND: the entire country ITALY: Abruzzi (1994 to 1996), Basilicata, Calabria, Campania, Molise, Apulia, Sardinia, Sicily NETHERLANDS: Flevoland PORTUGAL: the entire country UNITED KINGDOM: Highlands and Islands Enterprise area, Merseyside, Northern Ireland ANNEX II Commitment appropriations for the period 1994 to 1999 (ECU million at 1992 prices) 1994 1995 1996 1997 1998 1999 1994 to 1999 Structural Funds 20 135 21 480 22 740 24 026 25 690 27 400 141 471 and FIFG of which: 13 220 14 300 15 300 16 396 17 820 19 280 96 346 Objective 1 regions EUROPEAN SOCIAL FUND 291 A P P E N ICES Council Regulation (EEC) No 2082/93 of 20 July 1993 Amending Regulation (EEC) No 4253/88 laying down provi sions for implementing Regulation (EEC) No 2052/88 as regards coordination of the activities of the different Structural Funds between themselves and with the opera tions of the European Investment Bank and the other existing financial instruments research and technological development, the trans-European The Council of the European networks and the economic restructuring of the countries of central and eastern Europe; whereas the economic and social Communities effectiveness of Community action depends on coherence, particularly with the framework programmes for research and Having regard to the Treaty establishing the European technological development and education and training pro Economic Community, and in particular Articles 130e and grammes; 153 thereof, Whereas the Member States should submit their develop Having regard to the proposal from the Commission (x), ment plans as soon as possible in order not to delay the implementation of structural assistance from 1 January In cooperation with the European Parliament (2), 1994; Having regard to the opinion of the Economic and Social Whereas, in order to sim plify and speed up programming pro Committee (3), cedures, there should be provision for the Commission to adopt simultaneously the Community support frameworks Whereas Regulation (EEC) No 2081/93 (4) amends Council and the forms of assistance submitted largely in the form of Regulation (EEC) No 2 0 52/88 of 24 June 1988 on the tasks a limited number of operational programmes at the same of the Structural Funds and their effectiveness and on coor tim e as development plans; whereas for the same reason dination of their activities between themselves and with the there should be provision for the plan and the application for operations of the European Investment Bank and the other assistance to be presented in a single document and for the existing financial instruments (5); whereas Regulation (EEC) Community support framework to be adopted and assistance No 4 2 53/88 should therefore be amended (6); granted through a single Commission decision; Whereas, under Article 3a of Regulation (EEC) No 2052/88, Whereas, in application of the principle of subsidiarity, and the provisions of that Regulation governing the Structural without prejudice to the Commission's powers, particularly its Funds and the provisions necessary for the coordination of responsibility for the management of the Community's finan the activities of the different Structural Funds between them cial resources, implementation of the forms of assistance selves and with the operations of the European Investment contained in the Community support frameworks should be Bank (EIB) and the other existing financial instruments apply primarily the responsability of the Member States at the to the financial instrument for fisheries guidance (FIFG); appropriate territorial level according to the specific needs of each Member State; Whereas the coordination provided for in Regulation (EEC) No 4 2 5 3/8 8 should therefore be extended to the FIFG and to Whereas the principle of additionality and the criteria and the cohesion financial instrument; whereas coordination procedures for its verification should be defined; through the Communities' budgetary resources can also con cern the measures accompanying the reform of the common Whereas measures of major importance to the Community agricultural policy (CAP), the framework programmes for undertaken at the initiative of the Commission have an 1 OJ No C 118, 28. 4. 1993, p. 33. 2 Opinion delivered on 22 June 1993 (not yet published in the Official Journal) and Decision of 14 July 1993 (not yet published in the Official Journal). 3 OJ No C 201, 26. 7. 1993, p. 52 4 See page 5 of this Official Journal 5 OJ No L 185, 15. 7. 1988, p. 9. 6 OJ No L 374, 31. 12. 1988, p. 1. important role to play in achieving the general objectives of Community structural action referred to in Article 1 of Has adopted this Regulation: Regulation (EEC) No 2052/88; whereas such initiatives should primarily promote cross-frontier, transnational and Article 1 inter-regional cooperation and aid to the outermost regions, in accordance with the principle of subsidiarity; Articles 1 to 33 of Regulation (EEC) No 4 2 5 3/8 8 shall be replaced by the following: Whereas, in order to increase the flexibility of Community structural assistance, there should be provision for assistance 'I. Coordination undertaken at the initiative of the Commission in the context of Objectives 1, 2 and 5 (b) to concern exceptionally areas other than those eligible under those Objectives; whereas the A rticle 1 question of cross-frontier cooperation with Community prior General provisions ity regions may also be addressed by the Phare programme, taking account of complementary support under the Pursuant to Regulation (EEC) No 2052/88, the Commission Community Structural Funds; shall, in a manner consistent with partnership, ensure coor dination of the activities of the different Funds and the FIFG Whereas, in order to minimize delays in financial flows, the as between themselves and with the operations of the EIB tim e allowed for the Commission to pay financial assistance and the other existing financial instruments. to the Member State and for the Member State to pay that assistance to the final beneficiaries should be laid down, so that the funds are available to the final beneficiaries in good A rticle 2 time for them to carry out their measures; Coordination between the Funds and the FIFG Whereas the role and powers of the monitoring committees Coordination between the activities of the various Funds and should be laid down; the FIFG shall be carried out in particular through: - Community support frameworks, Whereas there should be greater transparency in the imple - multiannual budget forecasts, mentation of structural assistance; whereas, to that end, - where advisable, the implementation of integrated care should be taken to ensure compliance with Council forms of assistance, Directive 90/313/EEC of 7 June 1990 on the freedom of - prior appraisal, monitoring and ex post evaluation of access to inform ation on the environment (7); whereas it is operations under the Funds carried out in connection appropriate that projects benefiting from Community assis with a single objective and of those carried out in con tance should be specified when published in a notice in nection with a number of objectives in the same territory. the Official Journal of the European Communities under the rules relating to the award of public contracts; A rticle 3 Whereas appraisal and evaluation are the responsibility Coordination between the Funds, the EIB and the other exist both of the Member States and of the Commission in the ing financial instruments framework of partnership; whereas, in addition, to enhance the effectiveness and financial viability of Community 1. In implementing the objectives referred to in Article 1 of assistance, ex ante appraisal, monitoring and ex post eval Regulation (EEC) No 2052/88, the Commission shall ensure, uation should be strengthened; within the framework of the partnership, coordination and consistency between assistance from the Funds and assis Whereas it is appropriate to lay down the detailed transi tance provided: tional provisions including provisions to ensure that aid to - by the European Coal and Steel Community (ECSC) in Member States is not interrupted pending the establish the form of re-adaptation aids, loans, interest subsidies ment of the plans and operational programmes in accor- or guarantees, dancewith the new system, - by the EIB, the New Community Instrument and the European Atomic Energy Community (Euratom) in the Has adopted this Regulation: form of loans and gurarantees, - from resources from the Community budget allocated in particular: - to other actions for structural purposes, - to the cohesion financial instrument. Such coordination shall be carried out in keeping with the ElB's own powers and responsibilities and with the objectives of the other instruments concerned. 7 OJ No L 158, 23.6. 1990, p. 56. EUROPEAN SOCIAL FUND 29: 2. The Commission shall associate the EIB in the use of the In the plans, Member States shall indicate the particulars Funds or the other existing financial instruments with a view relating to each Fund, including the volumes of assistance to the part-financing of investments that are eligible for requested. In order to expedite the examination of applica financing by the EIB in accordance with its Statute. tions and the implementation of action, they may include in their plans, applications for assistance for operational pro grammes and other forms of assistance. A rticle 4 Member States may submit in a single programming document [ ] the information required for each of the plans and referred to in Articles 8 to 10 and la of Regulation (EEC) No 2052/88 and the information required pursuant to Article 14 (2). II. Plans 3. Member States shall ensure, when the plans are drawn up, that plans relating to the same geographical area are mutu A rticle 5 ally consistent. Scope and content 4. Member States shall ensure that the plans take account of 1. Subject to the guidelines laid down in this Article, plans Community policies. submitted in connection with Objectives 1 to 4 and 5 (b) shall be drawn up at the geographical level deemed to be most appropriate. They shall be prepared by the competent A rticle 6 national, regional or other authorities designated by the Duration and t im etable Member State and shall be submitted by the Member State to the Commission. Each plan shall as a general rule cover a period of three or six years. The first programming period shall begin on 1 January Plans submitted in connection with Objective 1 shall, as a 1994. As a general rule, the plans may be revised on an general rule, cover one region at NUTS (Nomenclature of annual basis and in the event of significant changes in the Territorial Units for Statistics) level II. However, in imple socio-economic situation and the labour market. mentation of the second subparagraph of Article 8 (4) of Regulation (EEC) No 2052/88, Member States may submit a Unless otherwise agreed with the Member State concerned, plan for more than one of their regions included in the list plans in respect of Objectives 1, 3 and 4 shall be submitted referred to in paragraph 2 of that Article, provided that such not later than three months after the entry into force of this plans comprise the features listed in the first subparagraph of Regulation. Plans in respect of Objectives 2 and 5 (b) shall the said paragraph 4. be submitted not later than three months after the establish ment of the list of eligible areas under the objectives con Plans submitted in connection with Objectives 2 and 5 (b) cerned. shall normally cover one or more regions a NUTS level III. Member States may submit plans covering a wider territory A rticle 7 than that of eligible regions or areas, provided that they dis Preparation tinguish between measures in eligible regions or areas and measures elsewhere. 1. The Commission may provide Member State at their request with any technical assistance necessary in the prepa 2. For regions concerned by Objective 1, the regional devel ration of plans. opment plans shall include measures to the conversion of declining industrial areas and rural development, the adapta 2. The plans shall contain information making it possible to tion of agricultural and fisheries structures, together with assess the link between structural action and the Member employment and vocational training measures under State's economic, social and where appropriate, regional poli Objective 1 and, where appropriate, those in connection with cies. Objectives 3 and 4. III. Community Support Frameworks Regional and social conversion plans submitted in connection with Objective 2 and rural development plans submitted in connection with Objective 5 (b) shall also include employment A rticle 8 and vocational training measures other than those covered by Preparation, scope and content plans submitted in connection with Objectives 3 and 4. 1. The Community support frameworks relating to Objectives Plans submitted in connection with Objectives 3 and 4 shall 1 to 4 and 5 (b) shall be drawn up on the basis of the plans distinguish between expenditure in respect of the regions in agreement with the Member State concerned within the covered by Objectives 1 and, if possible, 2 and 5 (b) and framework of the partnership and shall be established by deci expenditure in respect of other regions. sion of the Commission in accordance with the procedures laid A P P E N down in Title VIII. The EIB shall also be involved in the prepa unusual level of public structural expenditure undertaken in ration of the Community support frameworks. the previous programming period and business cycles in the national economy. 2. A Community, support framework shall cover a period of three or six years. The Commission and the Member States shall also agree, in establishing the Community support frameworks, the 3. Each Community support framework shall include: arrangements for verifying additionality. - a statement of the priorities for joint Community and national action inrelation to the objectives referred to 3. To permit verification of the principle of additionality, the under Article 1 of Regulation (EEC) No 2052/88, their Member State shall provide the relevant financial information specific objectives, quantified where they lend them to the Commission at the time of the submission of the plans selves to quantification, an appraisal of the expected and regularly during the implementation of the Community impact, including with regard to employment, together support frameworks. with information on their consistency with the eco nomic, social and, where appropriate, regional policies of the Member State concerned, A rticle 10 - an outline of the assistance which is not decided at the Approval and implementation same time as the Community support framework includ ing, for operational programmes, their specific objec 1. Unless otherwise agreed with the Member State con tives and the main types of measure involved, cerned, the Commission shall take a decision approving the - an indicative financing plan specifying the financial Community support framework not later than six months after allocations envisaged for the various forms of assistance receiving the relevant plan or plans. and the duration thereof, including those of the Funds, the EIB and the other existing financial instruments When adopting its decision on the Community support frame provided for in Article 3 f1), where they contribute work, the Commission shall also approve, in accordance with directly to the financing plan concerned, Article 14 (3), applications for assistance submitted at the - the procedures for monitoring and evaluation, same time as the plans in so far as they include the informa - the procedures for verifying additionality and an initial tion requested under Article 14 (2). evaluation of the latter; appropriate information con cerning the transparency of the relevant financial flows, If the Member State submits a single programming document in particular from the Member State concerned to the containing all the information referred to in the last subpara recipient regions, graph of Article 5 (2), the Commission shall adopt a single - for Objectives 1, 2 and 5 (b), the arrangements for asso decision in a single document covering the points referred to ciating the environmental authorities designated by the in Article 8 (3) and the assistance from the Funds referred to Member States in the implementation of the in the last subparagraph of Article 14 (3). Community support framework, - where appropriate, information on the means available 2. The Commission decision on the Community support for any studies or necessary technical assistance opera framework shallbe sent as a declaration of intent to the tions relating to the preparation, implementation or Member State. The decision shall be published in the Official adaptation of the measures concerned. Journal of the European Communities. At the request of the European Parliament, the Commission shall transmit to it this decision and the Community support framework which it A rticle 9 approves, for information. Additionality The Commission and the Member States shall ensure that mea 1. In order to achieve a genuine ecnomic impact, the Structural sures accounting for at least two-thirds of assistance from the Funds and the FIFG appropriations allocated in each Member Funds during the first year of the Community support frame State to each of the objectives under Article 1 of Regulation work are approved by the Commission within two months of (EEC) No 2052/88 may not replace public expenditure on struc adoption of its decision on the Community support framework. tural or comparable expenditure undertaken by the Member State in the whole of the territory eligible under an objective. A rticle 11 2. For this purpose, in establishing and implementing the Community initiatives Community support frameworks, the Commission and the Member State concerned shall ensure that the Member 1. In accordance with Article 5 (5) of Regulation (EEC) No State maintains, in the whole of the territory concerned, its 2 052/88, the Commission may, on its own initiative and in public structural or comparable expenditure at least at the accordance with the procedures provided for in Title VIII, and same level as in the previous programming period, taking after having informed the European Parliament accordingly, into account, however, the macroeconomic circumstances decide to propose to the Member States that they submit in which the funding takes place, as well as a number of applications for assistance in respect of measures of signifi specific economic circumstances, namely privatizations, an cant interest to the Community. Any assistance approved EUROPEAN SOCIAL FUND 295 pursuant to this provision shall be reflected in the establish measures referred to in Article 5 (2) (e) of Regulation (EEC) ment or revision of the relevant Community support framework. No 2052/88 and undertaken at the initiative of the Commission, shall be prepared by the Member State or by For operations of transnational interest, pursuant to the pre the competent national, regional, local or other authorities vious subparagraph, two or more Member States may, on their designated by it and shall be submitted to the Commission own initiative or at the invitation of the Commission, submit by the Member State or by any body it may designate to do a single application for assistance. In response to these appli so. Each application shall relate mainly to the forms of assis cations the Commission may, in consultation with the tance provided for in Article 5 of that Regulation. Member States concerned, take a single decision granting aid for all these Member States. 2. Applications shall contain the information the Commission needs in order to assess them where this is not already 2. For a limited part of the appropriations available, the forms of included in the plans, including a description of the proposed assistance approved under paragraph 1 in the context of the pri measure, its scope, including geographical coverage, and spe ority Objectives 1, 2 and 5 (b) may cover areas other than those cific objectives. Applications shall also include the results of under Articles 8, 9 and 11a of Regulation (EEC) No 2052/88. prior appraisal of the medium-term economic and social ben efits of the proposed measures commensurate with the resources to be deployed, the bodies responsible for imple A rticle 12 mentation, the proposed beneficiaries and the proposed Forms of assistance timetable and financing plan, together with any other infor mation necessary to verify that the measure concerned is Assistance covered by a Community support framework shall compatible with Community legislation and policies. be provided predominantly in the form of a limited number of operational programmes. 3. The Commission shall examine applications with a view in particular to: - assessing the conformity of the proposed operations and A rticle 13 measures with the relevant Community legislation and, Integrated approach where appropriate, with the relevant Community support framework, 1. At the initiative of a Member State, or of the Commission - assessing the contribution of the proposed operation to pursuant to Article 11 and in agreement with the Member the achievement of its specific objectives and, in the State concerned, assistance shall be implemented in the case of an operational programme, the consistency of form of an integrated approach if: the constituent measures, - the programme involves financing by more than one - checking that the administrative and financial mecha Fund or at least one Fund and one financial instrument nisms are adequate to ensure effective implementation, other than a loan instrument; - determining the precise arrangements for providing -th e measures to be financed by different Funds or assistance from the Fund or Funds concerned on the financial instruments are mutually reinforcing and sig basis, where appropriate, of the information already nificant benefits are likely to accure from close coordi given in any relevant Community support framework. nation between all the parties involved; - the appropriate administrative structures are provided The Commission shall decide on assistance from the Funds at national, regional and local level in the interests of and the FIFG, provided that the requirements of this Article integrated implementation of the assistance. are fulfilled, as a general rule within six months of receipt of the application. A single Commission decision shall be taken 2. The desirability of implementing measures on the basis of in respect of assistance from all the Funds and other existing an integrated approach shall be considered at the time a financial instruments contributing to the financing of assis Community support framework is established or revised. tance, including assistance established in the form of an inte grated approach. 3. In the implementation of integrated approaches, the Commission shall ensure that Community assistance is pro 4. The respective commitments of the partners, in the frame vided in the most effective manner, taking into account the work of an agreement within the partnership, shall be special coordination effort required. reflected in the Commission's decisions to grant assistance. iV. Assistance From the Funds A rticle 15 Eligibility A rticle 14 1. Subject to Article 33, expenditure in respect of measures Processing of applications for assistance covered by Objectives 1 to 4 and 5(b) shall be eligible for financial assistance from the Structural Funds only if the 1. Applications for assistance from the Structural Funds and measures in question come within the relevant Community the FIFG, with the exception of the technical assistance support framework. 2. Subject to Article 33, expenditure may not be considered eli within the framework of the partnership, the contribution from gible for assistance from the Funds if incurred before the date on the Funds or these investments, in compliance with the provi which the corresponding application reaches the Commission. sions of Article 13 (3) of Regulation (EEC) No 2052/88 and on the basis of the criteria referred to in paragraph 1 of that Article, taking account of, among their intrinsic characteristics, the size A rticle 16 of the gross self-financing margin which would normally be Specific provisions expected for the class of investments concerned in the light of the macroeconomic circumstances in which the investments are 1. In the case of global grants, the intermediaries who shall to be implemented, and without there being any increase in the be designated by the Member State concerned in agreement national budget effort as a result of contribution by the Fund. with the Commission must provide appropriate guarantees of solvency and have the necessary administrative capability to In any event, in connection with the development effort in the manage the operations envisaged by the Commission. The regions concerned, the contribution from the Funds to invest intermediaries shall also be selected in the light of the par ments in enterprises may not exceed 50 % of the total cost ticular situation in the Member States or areas concerned. in the regions covered by Objective 1 and 30 % of the total Without prejudice to Article 23, the management of global cost in the other regions. grants shall be subject to control by the competent authori ties designated by the Member States. 4. The contribution of the Funds for individual measures forming part of operational programmes may be differentiated 2. The Funds may provide financial assistance towards in accordance with agreements to be concluded within the expenditure in respect of major projects, i. e. those the total framework of the partnership. cost of which taken into account in determining the amount of Community assistance is, as a generalrule, greater than ECU 25 million for infrastructure investments or greater than A rticle 18 ECU 15 million for productive investments. Combination of grants and loans 3. In addition to similar assistance connected with the opera The combination of loans and grants referred to in Article 5 tions of the various Funds, the Commission may, for up to 0,3 (4) of Regulation (EEC) No 20 52/88 shall be determined in % of the Funds' total allocation, finance studies and technical conjunction with the EIB when the Community support assistance linked to the joint or coordinated deployment of the framework is being established. It shall take account of the Structural Funds, the EIB and the other financial instruments: balance in the proposed financing plan, the contribution from - in preparation for the establishment of plans, the Funds established in accordance with Article 17 and the - with a view to assessing the impact and effectiveness of development objectives pursued. assistance provided under the relevant Community sup port framework, - in relation to integrated operational programmes. VI. Financial provisions V. Differentiation of Community A rticle 19 Assistance General provisions 1. Financial assistance from the Structural Funds shall be A rticle 17 subject to the relevant rules applicable to the Funds under Financial contribution from the Funds the Financial Regulation. 1. Pursuant to Article 13 (5) of Regulation (EEC) No 2052/88, 2. The financial assistance to be granted in respect of spe the financial contribution of the Funds to the financing of mea cific measures undertaken in implementing a Community sures covered by Objectives 1 to 4 and 5 (b) shall be laid down by support framework shall be consistent with the financing plan the Commission, within the framework of the partnership, on the laid down in that support framework. basis of Article 13 (1) of Regulation (EEC) No 2052/88, within the limits laid down by Article 13 (3) of the said Regulation and 3. In order to avoid administrative delays at the end of the in accordance with the procedures provided for in that Article. year, Member States shall ensure that request for payments are, as far as possible, submitted in accordance with a bal 2. The financial contribution from the Funds shall be calculated anced schedule throughout the year. in relation to either the total eligible cost of, or the total public or similar eligible expenditure (national, regional or local, and Community) on, each measure (operational programme, aid A rticle 20 scheme, global grant, project, technical assistance, study). Commitments 3. Where the measure concerned entails the financing of rev 1. Budgetary commitments shall be made on the basis of the enue-generating investments, the Commission shall determine, Commission decisions approving the measures concerned. EUROPEAN SOCIAL FUND 297 They shall be valid for a period depending on the nature of - submission to the Commission of the relevant reports the measures and on the specific conditions for their imple referred to in Article 25 (4), mentation. - transmission by the Member State to the Commission of a certificate confirming the information contained in the 2. Commitments in respect of measures to be carried out over request for payment and thereports. a period of two or more years shall, as a general rule, and sub ject to the provisions of paragraph 3, be effected in annual 5. Member States shall designate the authorities empowered instalments. The commitments in connection with the first to issue the certificates referred to in paragraphs 3 and 4 and annual instalment shall be made when the decision approv shall ensure that the beneficiaries receive the advances and ing the measure is adopted by the Commission. payments as soon as possible, and as a general rule within three months of receipt of the appropriations by the Member Commitments in connection with subsequent instalments State and provided that the beneficiaries' applications fulfil shall be based on the financing plan for the initial or revised the conditions necessary for payment to be made. measure concerned and on the progress made in implement ing it. 6. In the case of studies and innovation schemes undertaken on its own initiative, the Commission shall determine the 3. For measures to be carried out over a period of less than appropriate payment procedures. two years or, subject to available funding, where the Community assistance granted is less than ECU 40 m illion, the total amount of Community assistance shall be commit A rticle 22 ted when the Commission adopts the decision approving the Use of the ECU measure. Commission decisions, commitments and payments shall be denominated and carried out in ecus in accordance with the Artiicle 21 arrangements to be drawn up by the Commission pursuant to Payments the procedures referred to in Title VIII. 1. Payments of financial assistance shall be made in accor This Article shall be applicable as soon as the Commission dance with the corresponding budgetary commitments to the decision referred to in the first subparagraph has been national, regional or local authority or body designated for the adopted. purpose in the application submitted through the Member State concerned as general rule within two months from receipt of an acceptable application. They may take the form A rticle 23 either of advances or of final payments in respect of expen Financial control diture actually incurred. For measures to be carried out over a period of two or more years payments shall relate to the 1. In order to guarantee completion of operations carried out annual instalments of commitments referrede to in Article 20 by public or private promoters, Member States shall take the ( 2 ). necessary measures in implementing the operations: - to verify on a regular basis that operations financed by 2. The advance made following each commitment may be up the Community have been properly carried out, to 50 % of the amount commited, taking into account the - to prevent and to take action against irregularities, nature of the measure concerned. - to recover any amounts lost as a result of an irregularity or negligence. Except where the Member State and/or 3. A second advance such that the sum of the two advances the intermediary and/or the promoter provide proof that does not exceed 80 % of the commitment shall be made after they were not responsible for the irregularity or negli the responsible body has certified that at least half of the first gence, the Member States shall be liable in the alter advance has been used up and that the measure is progress native for reimbursement of any sums unduly paid. For ing at a satisfactory rate and in accordance with the objec global loans, the intermediary may, with the agreement tives laid down. of the Member State and the Commission, take up a bank guarantee or other insurance covering this risk. The payments shall be made to the final beneficiaries with out any deduction or retention which could reduce the Member States shall inform the Commission of the measures amount of financial assistance to which they are entitled. taken for those purposes and, in particular, shall notify the Commission of the description of the management and con 4. Payment of the balance in respect of each commitment trol systems established to ensure the efficient implementa shall be conditional on: tion of operations. They shall regularly inform the - submission to the Commission by the designated Commission of the progress of administrative and judicial authority or body referred to in paragraph 1 of a request proceedings. for payment within six months of the end of the year concerned or of completion in practice of the operation Member States shall keep and make available to the concerned, Commission any appropriate national control reports on the 298 measures included in the programmes or ther operations 3. Any sum received unduly and to be recovered shall be concerned. repaid to the Commission. Interest on account of late pay ment shall be charged on sums not repaid in compliance with As soon as this Regulation enters into force, the Commission the provisions of the Financial Regulation and in accordance shall draw up detailed arrangements for implementation of with the arrangements to be drawn up by the Commission this paragraph in accordance with the procedures referred to pursuant to the procedures referred to in Title VIII. in Title VIII and inform the European Parliament thereof. 2. Without prejudice to checks carried out by Member States, VII. Monitoring and evaluation in accordance with national laws, Regulations and adminis trative provisions and without prejudice to the provisions of Article 206 of the Treaty or to any inspection arranged on the A rticle 25 basis of Article 209 (c) of the Treaty, Commission officials or Monitoring servants may carry out on-the-spot checks, including sample checks, in respect of operations financed by the Structural 1. Within the framework of the partnership, the Commission Funds and management and control systems. and the Member States shall ensure effective monitoring of implementation of assistance from the Funds, geared to the Before carrying out an on-the-spot check, the Commission Community support framework and specific operations (pro shall give notice to the Member State concerned with a view grammes, etc.). Such monitoring shall be carried out by way to obtaining all the assistance necessary. If the Commission of jointly agreed reporting procedures, sample checks and carries out on-the-spot checks without giving notice, it shall the establishment of monitoring committees. be subject to agreements reached in accordance with the pro visions of the Financial Regulation within the framework of 2. Monitoring shall be carried out by reference to physical the partnership. Officials or servants of the Member State and financial indicators specified in the Commission deci concerned may take part in such checks. sion approving the operation concerned. The indicators shall relate to the specific character of the operation, its objectives The Commission may require the Member State concerned to and the form of assistance provided and to the socio-eco- carry out an on-the-spot check to verify the regularity of pay nomic and structural situation of the Member State in which ment requests. Commission officials or servants may take the assistance is to be utilized. They shall be arranged in part in such checks and must do so if the Member State con such a way as to show, for the operations in question: cerned so requests. - the stage reached in the operation and the goals to be attained within a given timespan, The Commission shall ensure that any checks that it carries - the progress achieved on the management side and any out are performed in a coordinated manner so as to avoid related problems. repeating checks in respect of the same subject matter dur ing the same period. The Member State concerned and the 3. Monitoring committees shall be set up within the frame Commission shall immediately exchange any relevant infor work of the partnership, by agreement between the Member mation concerning the results of the checks carried out. State concerned and the Commission. 3. For a period of three years following the last payment in The Commission and, where appropriate, the EIB may dele respect of any operation, the responsible body and authorities gate representative to those committees. shall keep available for the Commission all the supporting doc uments regarding expenditure and checks on the operation. 4. For each multiannual operation, the authority designated for the purpose by the Member State shall submit progress reports to the Commission within six months of the end of A rticle 24 each full year of implementation. A final report shall be sub Reduction, suspension and cancellation of assistance mitted to the Commission within six months of completion of the operation. 1. If an operation or measure appears to justify neither part nor the whole of the assistance allocated, the Commission shall For each operation to be implemented over a period of less conduct a suitable examination of the case in the framework of than two years, the authority designated for the purpose by the partnership, in particular requesting that the Member State the Member State shall submit a report to the Commission or authorities designated by it to implement the operation sub within six months of completion of the operation. mit their comments within a specified period of time. 5. The monitoring committee shall, if necessary, without 2. Following this examination, the Commission may reduce or modifying the total amount of the Community contribution suspend assistance in respect of the operation or a measure and within harmonized limits by Objective, adjust the proce concerned if the examination reveals an irregularity or a sig dure for granting assistance as initially approved, as well as, nificant change affecting the nature or conditions for the in conformity with available resources and budgetary rules, implementation of the operation or measure for which the the financing plan envisaged, including any transfers Commission's approval has not been sought. between Community sources of finance and the consequential EUROPEAN SOCIAL FU A P P E N ICES adjustments of the rates of assistance. The harmonized lim of the economic and social cohesion of the Community, its by Objective referred to above shall be established by the - the impact of measures proposed in the plans and Commission according to the procedure referred to in Title undertaken under each VIII and included in the Community support frameworks. Community support framework, - the impact of individual measures (programmes etc.). These amendments shall be notified immediately to the Commission and the Member State concerned. They shall Appraisal and evaluation shall, according to the circum become effective as soon as confirmation has been provided stances, be carried out by contrasting the goals with the by the Commission and the Member State concerned; such results obtained, where applicable, and by reference to confirmation shall be given within a period of 20 working macroeconomic and sectoral objectives and indicators based days from receipt of this notification, the date of which will on regional or national statistics, to information yielded by be confirmed by the Commission by acknowledgement of descriptive and analytical studies and to qualitative analyses. receipt. Appraisal and evaluation shall take account of the socio-eco- Other amendments required shall be decided by the nomic benefits expected or achieved commensurate with the Commission, in collaboration with the Member State con resources deployed, conformity with Community policy and cerned, after the monitoring committee has delivered its rules as referred to in Article 7 f 1) of Regulation (EEC) No opinion. 2052/88 and the conditions in which the measures are implemented. 6. For the greater effectiveness of the Funds, the Commission shall ensure that particular attention is paid to transparency 3. In drawing up Community support frameworks and in vet of management in its administration of them. ting individual applications for assistance, the Commission shall take into account the indings of appraisals and evalua For this purpose, in the context of the application of tions made in accordance with this Article. Community rules on the award of public contracts, notices sent for publication in the Official Journal of the European 4. The principles and procedures pertaining to appraisal and Communities shall specify those projects for which evaluation shall be laid down in the Community support Community assistance has been applied for or granted. framework. 7. Wherever this Regulation or the Regulations referred to in 5. The results of the appraisals and evaluations shall be sub Article 3 (4) and in Article 3a of Regulation (EEC) No mitted to the European Parliament and the Economic and 2052/88 provide for the Commission to determine detailed Social Committee within the framework of the annual report arrangements for implementation, the precise details which and the three-yearly report provided for in Article 16 of are adopted shall be notified to the Member States and pub Regulation (EEC) No 2052/88. lished in the Official Journal of the European Communities. VIII. Committees A rticle 26 Appraisal and evaluation A rticle 27 1. Appraisal and evaluation shall be the responsibility both of Advisory Committee on the Development and Conversion of the Member States and the Commission and be carried out Regions. within the framework of the partnership. The competent authorities in the Member States shall contribute in such a way In accordance with Article 17 of Regulation (EEC) No as to ensure that this appraisal and evaluation can be carried 2052/88, an Advisory Committee on the Development and out in the most effective manner. In this connection, appraisal Conversion of Regions, made up of Member States' represen and evaluation shall make use of the various particulars that tatives and chaired by the Commission representative, is the monitoring arrangements can yield inorder to gauge the hereby set up under the auspices of the Commission. The EIE? socio-economic impact of the operations, where appropriate in shall appoint a non-voting representative. The European close association with the monitoring committees. Parliament shall receive regular information on the outcome of the proceedings of the committee. Assistance will be allocated where appraisal shows medium- term economic and social benefits commensurate with the The Commission representative shall submit to the committee resources deployed. a draft of the measures to be taken. The committee shall deliver its opinion on the draft within a time limit which the 2. In order to ensure the effectiveness of Community assis chairman may lay down according to the urgency of the mat tance, measures taken for structural purposes shall be sub ter, where appropriate by taking a vote. ject to appraisal, monitoring and, after their implementation, evaluation. Effectiveness shall be measured at three levels: The opinion shall be recorded in the minutes. In addition, - their overall impact on the objectives set out in Article each Member State shall have the right to request that its 130a of the Treaty, and in particular the strengthening position be recorded in those minutes. 300 The Commission shall take the utmost account of the opin A rticle 29 ion deliveredby the committee. It shall inform the committee Management Committee on Agricultural Structures and Rural of the manner in which it took account of the opinion. Development and Standing Management Committee on Fisheries Structures The committee shall deliver opinions on draft Commission deci sions concerningthe Community support frameworks as provided 1. In accordance with Article 17 of Regulation (EEC) No for in Article 8 (5) and 9 (9) of Regulation (EEC) No 2052/88, 2052/88 a Management Committee on Agricultural Structures on the regular reports provided for in Article 8 of Council and Rural Development, made up of Member States' repre Regulation (EEC) No 4254/88 (8) and on the drawing-up and sentatives and chaired by the Commission representative, is revision of the list of areas eligible in connection with Objective hereby set up under the auspices of the Commission. The EIB 2. The matters referred to in Article 10 of Regulation (EEC) No shall appoint a non-voting representative. 4254/88 may also be referred to it by the Commission. The Commission representative shall submit to the committee The committees referred to in Articles 28 and 29 shall be a draft of the measures to be taken. The committee shall informed of the committee's opinions. deliver an opinion on the draft within a time limit which the chairman may lay down according to the urgency of the mat The committee shall draw up its rules of procedure. ter under consideration. The opinion shall be delivered by the majority stipulated in Article 148 (2) of the Treaty in the case of decisions which the Council is requested to adopt on a pro A rticle 28 posal from the Commission; when a matter is put to the vote Committee under Article 124 of the Treaty within the committee, the votes of the Member States' repre sentatives shall be weighted as provided for in the aforemen In accordance with Article 17 of Regulation (EEC) No tioned Article. The chairman shall not vote. 2052/88, the committee set up under Article 124 of the Treaty shall be composed of two government representatives, The Commission shall adopt measures which shall apply two representatives of the workers' organizations and two rep immediately. However, if they are not in accordance with the resentatives of the employers' organizations from each opinion delivered by the committee, they shall be communi Member State. The Member of the Commission responsible cated forthwith by the Commission to the Council. In that for chairing the committee may delegate that responsibility event, the Commission may defer application of the measures to a senior Commission official. which it has decided for a period of not more than one month from the date of such communication. For each Member State, an alternate shall be appointed for each categoryof representative mentioned above. In the The Council, acting by a qualified majority, may take a differ absence of one or both members, the alternate shall be auto ent decision within the period provided for in the third sub- matically entitled to take part in the proceedings. paragraph. The members and alternates shall be appointed by the The committee shall deliver opinions on draft Commission Council actingon a proposal from the Commission, for a decisions: period of three years. They may be reappointed. The Council - relating to common measures under Objective 5 (a), shall, as regards the composition of the Committee, endeav - relating to the establishment of the list of areas eligible our to ensure fair representation of the different groups con under Objective 5 (b) as well as to Community support cerned. For the items on the agenda affecting it, the EIB frameworks under this objective. shall appoint a non-votingrepresentative. The committee shall also be consulted on operations con The committee shall deliver opinions on the draft cerning agricultural structures and rural development Commission decisions relating to the Community support frameworks relating to Objectives 3 and 4 and, in the case of included in the draft Commission decisions relating to the support from the European Social Fund, on the Community Community support frameworks for the Objective 1 regions. support frameworks relating to Objectives 1, 2 and 5 (b). The committee provided for in this paragraph shall replace For their adoption, the opinions of the committee shall the Standing Committee on Agricultural Structures, set up by require an absolutemajority of the votes validly cast. The Article 1 of the Council Decision of 4 December 1962 (9), in Commission shall informe the committee of the manner in respect of all the functions assigned to it under that Decision which it took account of its opinions. or under Article 6 of Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural The committees referred to in Articles 27 and 29 shall be policy (10). informed of the committee's opinions. The committee referred to in Articles 27 and 28 and paragraph The committee shall draw up its rules of procedure. 2 of thisArticle shall be informed of the committee's opinions. 8 0J N oL 374, 31. 12. 1988, p. 15. The committee shall draw up its rules of procedure. relating to assistance operations under the Funds, other than those provided for in this Title. 2. The provisions detailing the operation of the Standing ManagementCommittee on Fisheries Structures shall be laid Moreover, all the specific cases laid down in Regulation (EEC) down in accordance with the provisions laid down pursuant No 2052/88, and in all the implementing Regulations to the first subparagraph of Article 3a of Regulation (EEC) referred to in Article 130e of the Treaty, shall be referred to No 2052/88. the committees. The Commission shall inform the appropriate committees of Article 29a the granting of assistance to major productive investment pro Management Committee for Community Initiatives jects, the total cost of which taken into account in determin ing the amount of Community assistance is greater than ECU In accordance with Article 17 of Regulation (EEC) No 50 million. 2052/88, a ManagementCommittee for Community Initiatives, made up of Member States' representativesand 2. Decision 75/185/EEC (H) and Decision 83/517/ EEC (12) chaired by the Commission representative, is hereby set up shall be repealed and, as regards the EAGGF Guidance under the auspices of the Commission. The EIB shall Section, Articles 11 to 15 of Regulation (EEC) No 729/70 appoint a non-voting representative. shall no longer apply as far as the EAGGF committee is con cerned. The Commission representative shall submit to the commit tee a draftof the measures to be taken. The committee shall deliver an opinion on the draft within a time limit which the IX. Reports and publicity chairman may lay down according to the urgency of the mat ter under consideration. The opinion shall be delivered by the majority stipulated in Article 148 (2) of the Treaty in the case A rticle 31 of decisions which the Council is requested to adopt on a Reports proposal from the Commission; when a matter is put to the vote within the committee, the votes of the Member States' 1. The annual reports referred to in the first subparagraph of representatives shall be weighted as provided for in the afore Article 16 of Regulation (EEC) No 2052/88 shall review, inter mentioned Article. The chairman shall not vote. alia: - the activities of each Fund, the utilization of their bud The Commission shall adopt measures which shall apply getary resources and the concentration of assistance immediately. However,if they are not in accordance with the within the meaning of Article 12 of Regulation (EEC) No opinion delivered by the committee, they shall be communi 2052/88, the deployment of the other financial instru- cated forthwith by the Commission to the Council. In that mentsfor which the Commission has responsibility and event, the Commission may defer application of the mea where their resources have been concentrated; these sures which it has decided for a period of not more than one reviews shall include an annual breakdown by Member month from the date of such communication. State of appropriations committed and appropriations paid out in respect of each Fund and the FIFG, includ The Council, acting by a qualified majority, may take a different ing Community initiatives and technical assistance, decision within the period provided for in the third subparagraph. - the coordination of assistance provided by the Funds between themselves and with the assistance granted by The committee shall deliver opinions on the Commission pro the EIB and the other existing financial instruments, posals tothe Member States referred to in Article 11 0). - the results of the appraisal, monitoring and evaluation referred to in Articles 25 and 26 indicating any changes The committee referred to in Articles 27 to 29 shall be made to measures, and an evaluation of the compati informed of the committee's opinions. bility of Fund assistance with Community policies, including those on environmental protection, competi The committee shall draw up its rules of procedure. tion and public procurement, - the list of major productive investment projects which ben efited from assistance granted under Article 16 (2); these A rticle 30 projects should be the subject of a concise evaluation, Other provisions - the results of controls carried out, indicating the num ber and financial volume of irregularities detected and 1. The Commission shall periodically refer to the commit the lessons to be drawn from these controls, tees provided for in Articles 27, 28 and 29 the reports - the results of analysis of the impact of Community referred to in Article 16 of Regulation (EEC) No 2052/88. assistance and policies as compared with the objectives It may seek the opinion of the committees on any matter listed in Article 1 of Regulation (EEC) No 2 0 52/88 and 9 OJ No 136, 17.12.1962, p. 2892/62 10 OJ No L 94, 28.4.1970, p. 13. Regulation as last amended by Regulation (EEC) No 2048/88 (OJ No L 185, 15.7.1988, p .l). in particular their impact on the socio-economic devel X. FINAL PROVISIONS opment of the regions, - information on the opinions of committees delivered in A rticle 33 accordance with Title VIII, Transitional provisions - an analysis of the follow-up to recommendations and comments made by the European Parliament in its 1. In drawing up Community support frameworks, the opinion on the previous years' annual report. Commission shall take account of any measure already approved by the Council or by the Commission before the 2. Each year, the Commission shall consult the social part entry into force of this Regulation and having financial reper ners organized at European level on the structural policy of cussions during the period covered by those support frame the Community. works. These measures shall not be subject to compliance with Article 15 (2). 3. The three-yearly report referred to in the third subpara graph of Article 16 of Regulation (EEC) No 2 0 52/88 shall 2. Notwithstanding Article 15 (2), requests for expenditure review in particular; receivedby the Commission between 1 January and 30 April - progress made in achieving economic and social cohe 1994 and fulfilling all the conditions under Article 14 (2) sion, may be regarded as eligible for assistance from the Funds - the role of the Structural Funds, the FIFG, the financial from 1 January 1994.' instrument for cohesion, the EIB and other financial instruments as well as the impact of other Community policies in the completion of this process, - any proposals which may need to be adopted in order to Article 2 strengthen economic and social cohesion. Entry into Force A rticle 32 This Regulation shall enter into force on the third day follow Information and publicity ing its publication in the Official Journal of the European Communities. 1. Member States shall ensure that adequate publicity is given to the plans referred to in Article 5 f1). This Regulation shall be binding in its entirety and directly applicable in all Member States. 2. The body responsible for implementing a measure carried out with financial assistance from the Community shall Done at Brussels, 20 July 1993. ensure that adequate publicity is given to the measure with a view to: - making potential beneficiaries and trade organizations For the Council aware of the opportunities afforded by the measure, The President - making the general public aware of the role payed by W. CLAES the Community in relation to the measure. Member States shall consult the Commission on, and inform it of, the initiatives taken for these purposes. Once this Regulation has come into force, the Commission shall draw up detailed arrangements for information and pub licity concerning assistance from the Funds and the FIFG, shall inform the European Parliament thereof and shall pub lish them in the Official Journal of the European Communities. 11. OJ No L 73, 21.3.1975, p.47 12 OJ No L289,22.10.1983, p.42 EUROPEAN SOCIAL FUND 303 A P P E N ICES Council Regulation (EEC) No 2084/93 of 20 July 1993 amending Regulation (EEC) No 4255/88 laying down provi sions for implementing Regulation (EEC) (No 2052/88 as regards the European Social Fund Whereas, owing to the seriousness of the unemployment situ The Council of the European ation, Community action in connection with Objectives 3 and 4 will relate predominantly to Objective 3 "combating long Communities term unemployment and facilitating the integration into work ing life of young people and of persons exposed to exclusion Having regard to the Treaty establishing the European from the labour market" and whereas this will be reflected in Community, and in particular Articles 126 and 127 thereof, the financial breakdown between Objectives 3 and 4; Having regard to the proposal from the Commission (>•), Whereas, given the limited funding available, combating long-term unemployment and facilitating the integration of Having regard to the opinion of the European Parliament (2), young people into working life remain priorities under Objective 3; Having regard to the opinion of the Economic and Social Committee (3), Whereas it is necessary to redefine eligible actions in order to increase the effectiveness of the implementation of policy Whereas Regulation (EEC) No 2081/93 (4) amended aims in the context of all Objectives under which the Fund Regulation (EEC) No 2052/88 of 24 June 1988 on the tasks takes action and to provide for a widening of that action, of the Structural Funds and their effectiveness and on co especially employment aids, which may, for example, take the ordination of their activities between themselves and with the form of aids for geographical mobility, recruitment and the operations of the European Investment Bank and the other creation of self-employed activities; existing financial instruments (5); whereas Regulation (EEC) No 2082/93 (6) amended Regulation (EEC) No 42 53/88 lay Whereas it is appropriate that the actions taken by the Fund ing down provisions for implementing Regulation (EEC) No under the different Objectives form a coherent approach so as 2052/88 as regards co-ordination of the activities of the dif to improve the workings of the labour market and to develop ferent structural funds, on the one hand, between themselves human resources; whereas the Member States and the and with the operations of the European Investment Bank and Commission should ensure that the principle of equal oppor the other existing financial instruments (7), on the other; tunities for men and women is respected in the implementa whereas it is necessary also to amend Regulation (EEC) No tion of the actions financed by the Fund in the context of all 4 255/88 (8); the objectives; Whereas it is necessary to extend the scope of the European Whereas it is necessary to ensure that Objective 4 strength Social Fund (hereinafter referred to as the "Fund"), in par ens employment and job qualifications through anticipation, ticular following the redefinition of Objectives 3 and 4, as counselling, networking and training operations throughout well as the definition of a new Objective 4; whereas it is nec the Community and that it must therefore be horizontal, cov essary to take account explicitly of persons exposed to exclu ering the economy as a whole, without a priori reference to sion from the labour market and to render more flexible the specific industries or sectors, be aimed at workers of either eligibility criteria for categories that are already eligible; sex in employment, particularly those threatened with 1 OJ No C 131, 11. 5. 1993, p. 10. 2 Opinion delivered on 14 July 1993 (not yet published in the Official Journal). 3 OJ No C 201, 26. 7. 1993, p. 52. 4 See page 5 of this Official Journal. 5 OJ No L 185, 15. 7. 1988, p. 9. 6 See page 20 of this Official Journal. 7 OJ N oL 374, 31. 12. 1988, p. 1. 8 0J N oL 374, 31. 12. 1988, p. 21. 304 A P P E N ICES unemployment, and not at undertakings, and at improving Whereas it is necessary to delete all reference to the guide their qualifications and employment opportunities, be tar lines regard Fund support as their function is henceforth geted as far as the type of operations is concerned, with due ensured by the definition of policy aims and by the obligation regard to the rules of competition, and complement, not to concentrate Fund action on the most important needs and replace, efforts that firms undertake themselves; the most effective actions, Whereas it is necessary to ensure that operations under Has adopted this Regulation: Objective 4 address the underlying causes of problems relat ing to industrial adaptation, including services, and do not deal with symptoms relating to the short-term market; Article 1 whereas such operations should meet the general needs of workers of either sex resulting from industrial change and Articles 1 to 9 of Regulation (EEC) No 4 25 5/8 8 shall be changes in production systems identified or predicted and are replaced by the following: not designed to benefit a single firm or a particular industry; whereas particular attention should be devoted to small and medium-sized enterprises and special attention be devoted to ‘Article 1 enhancing access to training; Scope Whereas, having regard to the strategic importance in this Within the framework of the task entrusted to it by Article respect of the continuing training of workers of either sex, 123 of the Treaty and in accordance with Article 3 (2) of Objective 4 should concentrate on operations in the areas of Regulation (EEC) No 2 0 52/88 the Fund shall support: training related to the introduction, use and development of new or improved production methods, in particular new 1.as regards Objective 3, throughout the Community, organisational techniques and new technologies and on operations intended, in the first place, to: changes in markets and in society, particularly with regard to (a) facilitate the occupational integration of the protection of the environment; whereas, moreover, train unemployed persons exposed to long-term ing should also be linked to the necessary adaptation of work unemployment, in particular through: ers in small and medium-sized enterprises as a result of the (I) vocational training, pre-training including changes in production system as well as the need to demon upgrading of basic skills, guidance and strate the qualitative and environmental soundness of prod counselling; ucts and processes; (ii) temporary employment aids; (iii) the development of appropriate training, Whereas it is necessary to define expenditure eligible for employment and support structures, including the training of necessary staff, Fund assistance within the framework of the partnership; and the provision of care services for dependants; Whereas it is necessary to ensure that the support of the Fund (b) facilitate the occupational integration of young is concentrated under each objective on the most important people in search of employment through oper needs and the most effective operations; ations as described in (a), including the possi bility of up to two years' or more initial voca Whereas it is necessary to supplement and specify the con tional training leading to a vocational qualifica tent of plans and forms of assistance, especially following the tion, and the possibility of vocational training redefinition of Objectives 3 and 4; equivalent to compulsory schooling, provided that by the end of that training the young peo Whereas it is necessary, pursuant to Article 13 (5) of ple are old enough to join the labour market; Regulation (EEC) No 205 2/8 8 that enterprise finance an and also to: appropriate portion of the cost of operations to promote the (c) promote integration of persons exposed to training of employees of either sex; exclusion from the labour market through operations as described in (a); Whereas the Fund also contributes to support for technical (d) promote equal opportunities for men and assistance and for pilot and demonstration projects in accor women on the labour market especially in dance with Article 5 (2) (e) of Regulation (EEC) No 2052/88; areas of work in which women are under-rep- Whereas it is necessary, pursuant to Article 14 (2) of resented and particularly for women not pos Regulation (EEC) No 2052/88, that the Fund finance under sessing vocational qualifications or returning more than one objective operations concerning in particular to the labour market after a period of absence the development of employment, training and other similar through operations as described in (a) and structures, including the training of teachers and trainers of through other accompanying operations; either sex and other categories of staff of those structures; 2 .as regards Objective 4, throughout the Community, and Whereas the transitional provisions should be specified; in accordance with the competition rules referred to in EUROPEAN SOCIAL FUND Article 7 of Regulation (EEC) No 2052/88, operations In addition, the Fund may support operations within the intended to facilitate the adaptation of workers of either meaning of Article 5 (2) (e) of Regulation (EEC) No 2052/88 sex, especially those threatened with unemployment, to throughout the Community. industrial change and to changes in production systems in particular through: - the anticipation of labour market trends and A rticle 2 vocational qualification requirements, Eligible expenditure - vocational training and retraining, guidance and counselling, 1. Fund assistance may be granted towards expenditure to - assistance for the improvement and develop cover: ment of appropriate training systems. - the remuneration and related costs as well as the sub The actions should take into account, in particu sistence and travel costs of persons covered by the lar, the specific needs of small and medium operations provided for in Article 1, sized enterprises; - the preparation, operation, management and evaluation costs of the operations provided for in Article 1, after 3 .as regards Objectives 1, 2 and 5 (b), in the regions con deduction of revenue, cerned, operations intended to: - the cost of employment aid granted under arrange (a) support employment growth and stability, in ments existing in the Member States. particular through continuing training and through guidance and counselling for workers of The nature of these costs and this revenue will be defined either sex, especially those in small and and agreed within the framework of the partnership at the medium-sized enterprises and those threatened programming stage. with unemployment, and for persons who have lost their jobs, as well as through support for the Without prejudice to checks by the Commission, the Member development of appropriate training systems, States shall ensure that the cost of individual operations is including training of instructors, and through kept within limits appropriate to each type of operation. the improvement of employment services; (b) boost human potential in research, science The Commission shall ensure that Fund expenditure for train and technology, particularly through post ing operations of the same type does not develop in different graduate training and the training of man ways. To this end, after the committee referred to in Article agers and technicians of either sex at 28 of Regulation (EEC) No 4 2 5 3/8 8 has delivered its opin research establishments; ion, it shall determine for each Member State, in co-opera- tion with that State, the indicative average amounts for 4 .as regards Objective 1, in the regions concerned, oper expenditure according to the type of training involved. ations intended to: (a) strengthen and improve education and train 2. Fund assistance may also be granted towards expenditure ing systems, particularly through the training to cover the cost of operations under Article 5 (2) (e) of of teachers and instructors of either sex and Regulation (EEC) No 2052/88, including operations under administrative staff, by encouraging links Article 6 of this Regulation. between training centres or higher education establishments and enterprises and financing A rticle 3 training within the national secondary or Concentration of assistance equivalent and higher education systems which has a clear link with the labour market, The Member States and the Commission shall ensure within new technology or economic development; the partnership at the planning and programming stage that (b) contribute to development through the train Community assistance to be provided under each objective is ing of public officials where this is necessary concentrated on the most important needs and the most for the implementation of development and effective operations relating to the aims defined in Article 1 structural adjustment policies. of this Regulation, so as to contribute to the Objectives and fulfil the tasks of the Fund as set out in Article 1 and Article The Member States and the Commission shall ensure that operations under the different objectives form a coherent 3 (2) of Regulation (EEC) No 2052/88. approach to improving the workings of the labour market and developing human resources, taking into account the devel opment, re-conversion and structural adjustment objectives A rticle 4 in the Member States or regions concerned. Plans The Member States and the Commission shall ensure that 1. The plans referred to in Articles 8, 9, 10 and 11a of operations under the different objectives respect the principle Regulation (EEC) No 2052/88 shall describe, particularly in the of equal treatment for men and women. part concerning the Fund, including figures where appropriate, 306 taking account of the evaluation results available: 2. The Member States shall communicate the information - imbalances between demand and supply in employ needed to appraise, monitor, evaluate, manage and control ment, include female employment, operations, making a distinction, where appropriate, between - the nature and characteristics of unfilled vacancies, men and women. More specifically, this information shall - the employment opportunities which exist on labour relate to that described in Article 14 (2) of Regulation (EEC) markets, No 4253/88, including information peculiar to the Fund such - the types of measures to be implemented and the cat as the geographical concentration, the target groups, the num egories and the number of persons involved, taking ber of persons involved and the duration of the operations. account of the need for concentration provided for in Article 3 of this Regulation, 3. Pursuant to Article 13 (5) of Regulation (EEC) No - the expected contribution of the operations concerned 2052/88, enterprises whose workers of either sex are able to towards the promotion of equal opportunities for men take part in training operations shall finance an appropriate and women on the labour market. portion of the cost of such operations. These plans shall indicate the manner in which where, within 4. The applications for assistance shall be accompanied by a the framework of each Member State's national rules and computerised form, drawn up within the framework of the current practices, account has been taken of the association partnership, listing the operations regarding each form of of the economic and social partners in the partnership assistance so that it can be followed through from budgetary referred to in Article 4 of Regulation (EEC) No 2052/88. commitment to final payment. 2. The plans referred to in Article 10 (!) of Regulation (EEC) No 2 0 52/88 shall, in addition to the items listed in para A rticle 6 graph 1 of this Article, indicate the way in which the Member Technical assistance and pilot and demonstration projects State will, where appropriate, secure the participation of bod ies providing services in the areas concerned for the prepa 1. Outside the Community support frameworks the Fund may ration and management of operations in favour of the persons finance, up to a limit of 0,5 % of its annual allocation, referred to in Article 1 (:) of this Regulation. preparatory, appraisal, monitoring and evaluation operations in Member States or at Community level which are necessary 3. The plans referred to in Article 10 (2) of Regulation (EEC) for the implementation of the operations referred to in Article No 2 052/88 shall, in addition to the items listed in para 1 of this Regulation and carried out at the Commission's ini graph 1 of this Article, indicate: tiative or on the account of the Community. They shall - imbalances between the qualifications which are include: offered and those which are in demand on the employ - operations of an innovatory nature which are intended to ment market, with particular reference to the workers of test new approaches to the content, methods and organ either sex affected by industrial change and changes in isation of vocational training, including integration of production systems, the Community dimension of vocational training and, -the way in which the Member States will, within the more generally, the development of employment includ procedures available under each Member State's insti ing the promotion of equal opportunities for men and tutional rules and existing practices secure the partici women on the labour market and the vocational integra pation of the economic and social partners and of voca tion of persons exposed to exclusion from the labour tional training bodies, at the appropriate level, when market, with a view to establishing a basis for subse preparing operations, particularly as regards anticipat quent Fund assistance in a number of Member States; ing the effects of industrial change and changes in pro - studies, technical assistance and the exchange of expe duction systems, rience which has a multiplier effect, preparation, -the relationship between operations and other appraisal, monitoring, and detailed evaluation, as well Community policies relating to industrial change and as control of operations financed by the Fund; changes in production systems, in particular the link - operations directed, within the framework of social dia with vocational training policy. logue, at staff from enterprises in two or more Member States and concerning the transfer of special knowledge relating to modernisation of the production apparatus; A rticle 5 - informing the various partners involved, the final recipi Forms of assistance ents of assistance from the Fund and the general public. 1. Applications for Fund assistance shall be presented 2. In accordance with the last subparagraph of Article 3 (2) mainly in the form of: of Regulation (EEC) No 2052/88, the Fund may also con - operational programmes; tribute up to 1 % of its annual budget to the financing, out - global grant schemes; side the Community support framework, of: - technical assistance and pilot and demonstration pro - studies on the Commission's initiative; jects within the meaning of Article 5 (2) of Regulation - pilot projects including exchanges of experience and (EEC) No 2052/88. transfers of know-how EUROPEAN SOCIAL FU - relating to the labour market at Community level or con A rticle 8 tributing to the implementation of Community voca Transitional provisions tional training policy. Those portions of the sums committed for the grating of assis These may concern in particular the design and development of tance in respect of projects decided on by the Commission job systems, of job supply and demand mechanisms, of meth before 1 January 1989 under the Fund which have not been ods for forward-looking labour force management as well as for the subject of a request for final payment to the Commission the anticipation of skill needs, for the promotion of equal oppor by 31 March 1995 shall be automatically released by the tunities for men and women on the labour market and for the Commission by 30 September 1995 at the latest, without integration into employment of persons exposed to exclusion prejudice to those projects which are subject to suspension from the labour market, the improvement or overhaul of training for judicial reasons.’ structures, the establishment or development of a national sys tem of validation and accreditation of qualifications, or they may complement specific Community programmes. Article 2 3. Operations carried out on the Commission's initiative may, in exceptional circumstances, be financed by the Fund at a rate This Regulation shall enter into force on the third day follow of 100 %, it being understood that those carried out on behalf ing its publication in the Official Journal of the European of the Commission itself shall be financed at a rate of 100 %. Communities. A rticle 7 This Regulation shall be binding in its entirety and directly Combination and overlapping applicable in all Member States. Pursuant to Article 14 (2) of Regulation (EEC) No 2052/88, Done at Brussels, 20 July 1993. the Fund may finance under more than one of the Objectives set out in Article 1 of that Regulation operations concerning in particular the development of employment, training and other similar structures, including the training of teachers For the Council and instructors of either sex and other categories of staff of The President those structures as well as technical assistance operations. W. 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