Support for Growth

> > > Objective 2 aid from the European Union to regions of Denmark with a particular need to strengthen development and growth

4 Objective 2 – Briefly and to the Point 8 Regional Municipality of Bornholm 10 Funen County 12 Storstrøm County 14 North Jutland County 16 Ringkjøbing County 18 South Jutland County 20 Viborg County 22 Århus County Good results already – and many more under way

The Objective 2 Programme for Denmark took effect in 2000. Since then, a large number of projects have been initiated based on assistance from the EU programme, which is intended to generate development and growth in areas with particular needs for new activities. The effects of this financial shot-in-the-arm are starting to appear throughout the areas in Denmark covered by the Objective 2 Programme. New jobs are being created, existing ones are being kept, the qualifications of managers and employees are being enhanced and the areas are becoming increasingly attractive to settle in or visit.

This booklet provides an introduction to the aid offered by the Objective 2 Programme, i.e., the overall framework for Objective 2 projects, the application procedures and more. At the same time, the booklet provides insight into the actual implementation of the Objective 2 Programme with specific examples from the various Danish regions. The efforts up to year end 2002 are appraised, and the booklet includes information on the remaining, available Objective 2 funds.

I am convinced that the eight Danish Objective 2 regions benefit greatly from the Objective 2 aid. The many new initiatives, which are instrumental in generating progress, must be gratifying to these areas. There are many examples of how the interplay between the European funding and the regional and local resources ensures that good ideas become a reality.

This very interplay is an underlying principle of the Objective 2 Programme. The European assistance must be matched by funding from national, regional and local authorities and by resources from the project participants themselves. At the same time, a project cannot be carried out without the active commitment of regional and local players. As a result, the implementation of the Objective 2 Programme has also involved the close cooperation of many local players. They know the possibilities and the potential. They know where the Objective 2 aid will be most useful.

The many satisfying results that have already been achieved are gratifying. At the same time, I feel entirely justified in being optimistic with respect to the continuing activities and to the effect of the overall Objective 2 effort.

Henning Steensig

Chairman of the Monitoring Committee for the Objective 2 Programme, Deputy Director of the National Agency for Enterprise and Housing

Support for growth 3 Objective 2 – Briefly and to the Point

The overall purpose of the Objective 2 Programme is to strengthen developments in areas encumbered by weak development in trade and industry and which are experiencing stagnation or recession. The Objective 2 Programme runs from 2000 to 2006.

Eight Danish Objective 2 Areas and transitional assistance areas, its own regional and local preferen- Objective 2 does not cover entire with approximately 405,000 inhabi- ces and aims. nations, but geographic areas within tants. The transitional assistance the individual countries – areas areas have previously been covered Moreover the allocation of assistan- lagging behind the country on the by a similar assistance scheme, and ce is based on some principles that whole in terms of unemployment this assistance is currently being include additionality, novelty value levels, earning levels, educational phased out. The transitional areas and match funding: levels and more. are only eligible for assistance up to 2005. • Additionality: Objective 2 aid is In Denmark, the Objective 2 essential for implementation This Programme includes geographic The largest proportionate share of requirement stipulates that a pro- areas within the following regions: the Objective 2 funds are available ject would not have been carried the Regional Municipality of to projects in the Objective 2 areas out to the same extent, at the Bornholm, Funen County, North proper. same time or within the same Jutland County, Ringkjøbing County, timeframe without the aid. This Storstrøm County, South Jutland Rules and Framework for requirement also precludes support County, Viborg County and Århus Objective 2 Aid for any projects that are being County. Each area is described in Objective 2 assistance is given to carried out to meet legal require- more detail in this booklet on pages various types of projects according ments. 8 to 23. to detailed rules and guidelines. The purpose of these rules and guide- • Novelty value In addition, an Objective 2 area has lines is to ensure that the projects Projects must have novelty value. also been designated for the are instrumental in giving substance For example, this involves projects Association of Small Danish Islands. to the fundamental intentions of the that provide new qualifications, This area includes 27 islands and is Programme. contribute to the establishment of administratively affiliated with Funen new knowledge or bring in new County’s Objective 2 area. Essentially, the European assistance technologies. is disbursed on terms that comply Objective 2 Areas and with European eligibility rules. In • Imperative match funding Transitional Assistance Areas addition to this, aims for the Objec- A fundamental principle of the The Objective 2 Programme involves tive 2 effort have been defined at Programme is that European assis- two different types of eligible areas European and national levels. Each tance may only constitute up to a – Objective 2 areas proper, with Objective 2 area has also specified certain portion of the project bud- approximately 540,000 inhabitants, get. The Objective 2 funding from

4 Support for Growth the EU must be matched by fun- an area’s general development semi-public organisations must ding from national, regional and conditions. As this involves an match the funding with at least local authorities and from the pro- area’s attractiveness as an indus- the same amount as the EU assis- ject participants. trial area, as a potential place of tance. residence and as a holiday desti- Numerous Applications nation, the local effort can be • Business Development Experience shows that many applica- targeted on infrastructure, cultural The aid is targeted on the deve- tions are usually submitted. So even offers within the area, town/village lopment of existing companies and though an application apparently milieus, etc. the establishment of new ones. fulfils the current guidelines, this These measures can involve invest- does not guarantee that the project Other types of initiatives for im- ment aid, e.g., capital investment will also receive aid. The decision proving the general development assistance for establishing a new ultimately depends on a considera- conditions involve strengthening enterprise or starting a new manu- tion of many good projects in rela- the willingness to be an entre- facturing initiative. Product deve- tion to each other. Many aspects preneur or innovator. Initiatives lopment, consultancy, feasibility and assessments can affect the final can focus on measures that im- studies, environmental manage- decision. prove access to consultancy, ment and market research are development and business servi- other types of initiatives that are Three Priorities ces, for example. intended to boost the knowledge The EU assistance is basically targe- and development of small and ted on projects within three so-cal- Aid recipients are counties, muni- medium-sized enterprises. led priorities: cipalities, public institutions, semi- public organisations and others The aid recipients are private • Development Conditions who carry out semi-public projects. manufacturing and service enter- Objective 2 aid can be granted to prises, chiefly small and medium- public projects that have a positive To be eligible for EU assistance, sized enterprises. In other words, direct or indirect effect in terms of regional or local authorities or enterprises with less than 250

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Support for Growth 5 > > >

employees and a maximum annual Another type of project in this European Regional Development turnover of EUR 37.8 million, or area focuses on the development Fund is to remove the greatest maximum assets and liabilities of of educational services. These aid regional disparities by generating EUR 25.7 million. recipients are active in the educa- development and structural adjust- tional and consultancy sector. ments in areas that are lagging Business Development projects are behind in terms of development and matched by funding from the For projects involving Human growth. The European Regional Danish State that equals the EU Resources, the project partners Development Fund contributes EUR assistance. In addition to this, the must match the EU assistance with 134 million to the Danish Objective 2 project partners themselves match at least the same amount. Programme. the funding according to specified rules. Counties and municipalities The European Social Fund assists in can not legally match assistance ADDITIONAL INFORMATION increasing employment by enhancing granted to private enterprises worker employment potential and by The regional Objective 2 secretariats promoting entrepreneurship, adapta- • Human Resources provide advice to potential appli- bility, equal rights and the develop- Aid is given to projects that deve- cants of Objective 2 aid. The secreta- ment of human resources and com- lop human resources and qualifica- riats also issue application forms and petencies. The European Social Fund tions, with a top priority given to instructional material on request. The contributes EUR 55 million to the enhancing the competencies of addresses of the regional secretari- Danish Objective 2 Programme. managers and employees, to com- ats are found on pages 8–23. bating unemployment, to organisa- In general, both funds contribute to tional development and to any giving substance to the aims of the upgrading required for starting pri- Two Funds Objective 2 Programme. The vate enterprises. The target group Objective 2 aid comes from two European Regional Development of the effort includes employed or European structural funds – the Fund provides aid to projects invol- briefly unemployed persons and European Regional Development ving Development Conditions and can involve employees, managers Fund and the European Social Fund. Business Development, whereas the and enterprise owners alike. European Social Fund provides aid to The European Regional Development projects involving Human Resources. Typical aid recipients are groups of Fund contributes to reducing the dif- In the implementation of the enterprises or municipalities and ferences in development levels and Objective 2 Programme, projects that public institutions. living standards among the various address a combination of the mea- regions. The purpose of the sures targeted by the European

6 Support for Growth differ with respect to documentation 2 secretariats also provide advice ADMINISTRATION and reporting. and information concerning the entire application procedure. The National Agency for Rules Against Double Funding Presentations of each area, including Enterprise and Housing is Other EU funds provide assistance contact addresses, are found on responsible for the administra- for specific sectors and purposes, pages 8 to 23. tion of the European Regional e.g., agriculture and fishery. To Development Fund in Denmark. prevent double funding, projects in Objective 2 application deadlines these sectors are not eligible for vary from area to area. Application National Agency for Objective 2 aid. Dairies and slaugh- processing has no fixed timeframe, Enterprise and Housing terhouses are also precluded from but applicants will usually receive Vejlsøvej 29 Objective 2 aid, as are any sectors or replies within two months of an DK-8600 Silkeborg industries in which overcapacity is application deadline. Tel. +45 35 46 60 00 prevalent. www.ebst.dk The regional Objective 2 committee Administration considers the applications. The National Labour Market The Objective 2 funds are administe- Authority is responsible for the red at a regional level. An Objective If an application involves Develop- administration of the European 2 committee has been established in ment Conditions or Business Social Fund in Denmark. each Objective 2 area for considering Development, the regional Objective the applications. The Committee is 2 committee recommends a decision National Labour Market Authority made up of representatives from the to the National Agency for Enterprise Holmens Kanal 20 regional and local authorities, as and Housing, which makes the final DK-1060 Copenhagen K well as from labour market organisa- decision. Tel. +45 35 28 81 00 tions, tourist associations, trade and www.ams.dk industry councils, et al. If an application involves Human Resources, the regional Objective 2 Application Procedure committee is empowered to make Regional Development Fund and the A secretariat has been established in the final decision. Social Fund are given high priority. each Objective 2 area. The secretariat is in charge of administering the The aid allocation rules of the local effort. The secretariat provides European Regional Development application forms and application Fund and the European Social Fund guidelines on request. The Objective

Support for Growth 7 Regional Municipality of Bornholm

The Objective 2 Programme covers the entire island of Bornholm, which has approximately 45,000 inhabitants.

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Bornholm’s Situation commitment to investments in town, For many years, Bornholm has had harbour and rural milieus, as well access to several multi-annual aid as industrial areas for the purpose programmes under the European of making the island more attractive structural funds. The serious structu- to potential new residents and ral problems afflicting the island are enterprises. caused by factors such as population exodus, high unemployment, a The Development Conditions for labour force with a relatively low trade and industry are to be impro- level of education, a low income ved by means of investments in level compared to the rest of increased research and technological Denmark and high dependence on development for the overall purpose the primary industries of agriculture of strengthening the competitive- and fishery. ness and adaptability of the island’s enterprises. Aim of the Effort The fundamental conditions for Direct aid to enterprises shall under- growth must be changed. The reduc- pin the commitment to commercial tion of transport time between renewal and innovation. The compe- Bornholm and Copenhagen enables tencies of the labour force and the island to target future efforts on enterprises must be upgraded to exploiting the potential for increased better equip them for exploiting the settlement, distance working, week- opportunities offered by the infor- end tourism and the establishment mation and service community and of new, higher educations. This by the spread of globalisation. effort is affiliated with a targeted

8 Support for Growth The Objective 2 area

High priority is given to developing ject. An added turnover of EUR budget, for establishing the broad- new products or production systems 203,000 is expected one year after band network. The public investment in the manufacturing, processing the end of the project. The project was a prerequisite for rapidly estab- and service sectors. Productivity has received aid from the European lishing the network and for establis- increases are required in the current Regional Development Fund in the hing the network outside the major situation, as are investments in en- amount of EUR 112,000 for estab- town communities. As a result, vironmental certification and en- lishing the facilities at Nexø Harbour Bornholm became the first county in vironmental management. and for launching the new kitchen Denmark to get a county-wide bro- series. The project has also received adband network. Objective 2 Funding assistance from the European Social The total European assistance Fund in the amount of EUR 51,000, amounts to approximately EUR 12.5 dispersed over two years, for mana- CONTACT million, dispersed over the three gement training and for training priorities. Approximately EUR 5.4 employees in the new concept. Regional Municipality of million of this amount had been Bornholm used as of 1 October 2002. Island-wide broadband network EU Secretariat on Bornholm. The purpose of a Ullasvej 23 Project Examples project for establishing an island- DK-3700 Rønne wide broadband network was to The enterprise Bülow Glas ensure faster, more widespread Tel. +45 56 92 20 00 Bornholm A/S had the opportunity establishment of the broadband net- E-mail [email protected] or to launch a new kitchen series in work for the benefit of Bornholm’s [email protected] glass after gathering and expanding enterprises and inhabitants. An its activities. The project is expected application from the County and the Additional information: to result in up to ten new jobs with- municipalities triggered a subsidy of www.bornholm-eu.dk. in one year after the end of the pro- EUR 89,000, out of a EUR 311,000

Support for Growth 9 Funen County

This Objective 2 area includes nine municipalities on South Funen and “The Islands” (i.e., islands near Funen) with 97,600 inhabitants. In addition, 27 small Danish islands are covered by the Objective 2 Programme

The Objective 2 area > > > The Situation on South Funen have been recovered via growth in No support and the Islands other sectors. For these reasons, The financial situation of South South Funen and the Islands belong Funen and the Islands is marked by to the most disadvantaged ten per the partial isolation of the area from cent of Denmark. powerful Danish areas of growth. Previously, the area was quite af- Aim of the Effort fluent owing to good farmland and The primary aim of the aid is to an affiliated agricultural industry. At establish and keep jobs by develop- the same time, the area had a high ing competitive SMEs. Therefore, level of employment in a number of the regional Objective 2 committee trades and industries affiliated with places a high priority on the shipping, e.g. shipbuilding enter- Programme’s potential to underpin prises. Levels of employment have investments and promote product drastically declined in recent years, development. The same is true in however, owing to plant shutdowns. tourism where the industry must This has affected enterprises such as adapt to increasing tourist demands the shipbuilding yard in Svendborg, and expectations. but has also had a negative impact on many dairies and slaughter- Labour force qualifications are also houses. very important to competitiveness. Therefore, the development of hu- In summer 1999, the cessation of man resources has a high priority – duty-free sales on ferry service with- particularly when this involves the in the EU resulted in the suspension participation of several small enter- of ferry service between South prises in networks. Funen and Germany. This had a heavy impact on employment. Only The area also endeavours to promo- some of the lost jobs in the area te dynamic commercial and industrial

10 Support for Growth development by means of good The town anticipates a striking boost service to local trade and industry for tourism, new residents and OBJECTIVE 2 AREA FOR THE 27 and through public investments for industrial development. The net SMALL DANISH ISLANDS making the area an attractive place project budget is set at EUR 3.2 in which to live and work. million, and the project has been A special Objective 2 area for the made possible in part by an Association of Small Danish Islands Objective 2 Funding Objective 2 grant of EUR 1.3 million. involves 27 islands. The special area The total EU assistance amounts to is administratively affiliated with approximately EUR 30.5 million, dis- Grønnemose Bogbinderi A/S binds Funen County’s Objective 2 area. persed over the three priorities. books for Denmark’s public libraries The Association of Small Danish Approximately EUR 9.8 million of this and school libraries. The Objective 2 Islands can be contacted at amount had been used as of 1 project has enabled the enterprise tel. +45 62 51 39 93 or October 2002. to develop new machinery that e-mail: [email protected] increases the enterprise’s competi- Project Examples tiveness in various ways. The plan- ning of the production process is CONTACT Faaborg Waterfront. The abandon- much more flexible than before, and ment of ferry service between the project has enabled the use of a Funen County Faaborg and Gelting in 1999, left new, more environment friendly Objective 2 Secretariat behind expansive, empty areas at book-binding film. Nine jobs are Ørbækvej 100 Faaborg Harbour, the use of which expected to be created in the short DK-5220 Odense SØ had already declined compared to term. The project has received EUR “the good old days”. The purpose 40,000 for product development Tel. +45 65 56 10 00 of a large-scale project is to re- from the European Regional Fax +45 65 56 13 05 establish contact between the town Development Fund. E-mail [email protected] and its harbour by building a canal, bridges, etc., in the area. The project Additional information: also aims to establish new, attractive www.maal2fyn.dk settings for housing and industry.

Support for Growth 11 Storstrøm County

This Objective 2 area covers all of the islands of Lolland, Falster and Møn with approximately 126,000 inhabitants.

The Objective 2 area No support

> > > The Situation on Lolland, Falster give trade and industry access to and Møn knowledge, information, training and Since the 1980s, parts of Lolland competency development, and to have been covered by several EU favourable industrial areas. At the aid programmes. This is due to same time, the Committee wishes to structural problems primarily caused encourage investments, innovation by company shutdowns. The and development activities. Objective 2 aid extends beyond Lolland, as both Falster and Møn are The tendency towards a knowledge- covered by the Programme’s oppor- based community makes demands tunities. The problems in these not only on trade and industry but areas include declining populations, also on counties, municipalities, lopsided age distribution, high trade and industry development unemployment, inadequate innova- councils and other parties interested tion traditions, a lack of R&D institu- in the development of trade and tions, and a dependence on conven- industry. All play an important role tional farming. in terms of ensuring favourable development conditions for existing Aim of the Effort and new enterprises. This area is The purpose of the Objective 2 aid given particular focus in relation to to Lolland, Falster and Møn is to the Objective 2 effort. strengthen and mobilise the area’s own development potential. The establishment of new jobs is an important priority in the project The Regional Objective 2 Committee selection process. For this reason, wishes to support initiatives that

12 Support for Growth the development of labour force whereby shipping from the harbour out by the Industri- og Håndværker- qualifications also has high priority. is the most expedient means of skolen, Grønt Centre (Green Centre), conveyance, e.g., sea-based wind Turism Region Syd (South Regional Objective 2 Funding turbines. The Municipality expects Tourism Council) and the Tourism The total EU assistance amounts the project to create four hundred Research Unit of the University of to approximately EUR 35.4 million, new jobs. In addition to this, a total Aalborg. The Regional Objective 2 dispersed over the three priorities. of 150 jobs will be created as a Committee has received assistance Approximately EUR 10.9 million of result of the project. Objective 2 aid: in the amount of EUR 223,000 from this amount had been used as of 1 EUR 2.4 million. the Objective 2 Programme, the October 2002. European Social Fund. Industri og Håndværkerskolen Project Examples (the Industrial Vocational School) is the initiator of a project involving CONTACT Nakskov Industri- og Miljøpark a training programme for upgrading (Nakskov Industrial and the qualifications of about eighty Storstrøm County Environment Park). The Municipa- SME employees and managers in The Regional Objective 2 Committee lity of Nakskov wishes to develop the tourist industry. The purpose Secretariat for Trade and Industry the shipyard area into Nakskov is to improve the development Parkvej 37 Industri og Miljøpark, including a potential, competitiveness and DK-4800 Nykøbing F maritime logistics centre and other image of tourist industry companies. initiatives. After the area has been At the same time, the project shall Tel. +45 54 84 48 00 cleared and readied for develop- establish a model for developing the E-mail [email protected] ment, it will offer favourable condi- qualifications of the labour force, a tions for enterprises that manufac- model that can subsequently be Additional information: ture exceedingly cumbersome applied in the rest of the tourist www.maal2.dk products (in length and/or weight), industry. The project is jointly carried

Support for Growth 13 North Jutland County

This Objective 2 area includes seventeen municipalities with 212,033 inhabitants, and the transitional assistance area includes nine municipalities with a total population of 246,627. The Objective 2 area Transitional assistance area No support

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Situation in the Area Jutland is to establish and keep Fund and the European Social Fund The major industries in North Jutland jobs through innovation. For this are given particular priority. are agriculture, fishery and manu- reason, the North Jutland Develop- facturing (mainly iron and metal- ment Fund, as the governing Readjustment and innovation working). The region’s numerous regional authority, gives high priority depend on the educational and SMEs have a weaker innovation base to the Programme’s potential to competency levels of the labour than larger companies. support investments and promote force. Therefore, upgrading the development. Similarly, the develop- qualifications of current and future In terms of labour force qualifica- ment of labour force qualifications employees in the private sector is tions, North Jutland County equals and public investments targeted on also prioritised. the national average. The number of trade and industry is in focus. persons in the region with a low A sound, versatile trade and industry level of education is slightly higher The area is actively committed to structure requires public investments than in the country on the whole. supporting financially sound activi- that enhance the development Therefore, several initiatives have ties that shall protect the environ- conditions for trade and industry, been started to heighten educational ment and establish equal opportu- tourism, cultural initiatives, etc. The levels among the region’s employed nity for men and women. The purpose of these investments is to and unemployed persons. Although Programme prioritises projects that assist in making North Jutland an unemployment in North Jutland enhance an enterprise’s capacity to interesting, attractive place to live County has markedly decreased in develop new products or substantial- and work. recent years, unemployment is still ly improve existing products. Further- slightly higher than the national more, high priority is given to the Objective 2 Funding average. development of information tech- The total Objective 2 aid amounts nology in the private sector. In to approximately EUR 58 million, Aim of the Effort addition, projects addressing a dispersed over the three priorities. The primary purpose of the combination of measures under the The aid for the transitional assistan- Objective 2 Programme in North European Regional Development ce areas amounts to approximately

14 Support for Growth EUR 16.4 million. In the Objective 2 has received aid from the European for the pharmaceutical industry. The area, approximately EUR 23.4 million Regional Development Fund totalling purpose of the project is to develop had been used as of 24 October EUR 85,000 for development and new components to enhance the 2002. Approximately EUR 8.4 million EUR 21,000 for an international safety in automobiles and to im- had been used in the transitional market analysis. prove the performance and effect in assistance areas as of the same the pharmaceutical industry. date. In 1998 the newly established company Sintex A/S received Moreover, the project aims at Project Examples approximately EUR 1,351,351 from developing magnet systems for low- the European Regional Development energy electric engines. The Dan-Ice A/S company Fund in order to develop a new obtained aid for developing an ice process where components are detector that measures ice for- manufactured directly from compres- CONTACT mation at airports. The ice detector sed metal powder. These compo- measurements will be integrated into nents are particularly used in the North Jutland County the screen used by the Danish food and furniture industry. At the Department of Trade, Industry and Meteorological Institute. The Pro- same time the company was granted Labour Market gramme funds have been used to EUR 24,330 from the European Niels Bohrsvej 30 develop measuring equipment for Social Fund in order to train the DK-9220 Aalborg measuring relative humidity, tempe- employees in handling these proces- rature and precipitation type and ses. In June 2002 Sintex A/S received Tel. +45 96 35 10 00 amount. The ice detector increases another grant from the European www.nja.dk flying safety and is environmentally Regional Development Fund. This beneficial, as the amount of chemi- time the grant was given to develop- cals used to de-ice aircraft will be ment of new components to the reduced as the measurement results motorcar industry and development become more reliable. The project of a new type of magnet systems

Support for Growth 15 Ringkjøbing County

The Objective 2 Programme includes the areas Thyholm and Venø Island with 3,933 inhabitants, as well as the transitional assistance areas of Thyborøn-Harboøre, Lemvig, Ulfborg-Vemb and Holmsland with 36,197 inhabitants.

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The Objective 2 area Situation in the Area nights declined during the last half Transitional assistance area The area has a lopsided trade and of the 1990s. Tourism is typified by No support industry structure with many small great seasonal fluctuations, explai- enterprises and a population struc- ning the many seasonal jobs avail- ture consisting of relatively few, able in the area. young, actively employed persons in the 20 to 39 age group. The Aim of the Effort educational level is low compared to The aim of the Objective 2 Denmark in general. The area has Programme is to support a positive, always been a pronounced agri- farsighted development process by cultural and fishery region and is focusing on projects that create and marked by radical structural changes. keep jobs, etc. To accomplish this Viable change in the employment requires measures such as establish- situation in coastal areas depends ing good conditions for new and on new opportunities for know- existing companies and by enhan- ledge-based production. Tourism is cing the qualifications of the labour also of decisive significance. The force at the same time. Moreover, number of holiday-cottage bed new tourism initiatives have to be

16 Support for Growth developed and profiled in order to million has been used in the tran- eight weeks in summer as well as attract more tourists. sitional assistance area as of this two weeks in connection with the same date. week-long Danish autumn school The infrastructure has to be im- holiday. The purpose is to extend proved. Priority is given to joint pro- Project Examples the season and exploit the capacity. jects and feasibility studies that This is a two-year pilot project that enhance the development potential The primary business field of focuses on conceptual development, of existing enterprises and/or make A/S Hvide Sande Skibs- og Baade- profiling and evaluation. Even before the area more attractive to new byggeri has been fishing fleet the final conclusion of the project – enterprises. repairs and the building of new at the end of 2002 – it has already vessels. Radical structural changes in proven its viability and will continue SMEs have top priority among the fishing industry have forced the next year as well. private enterprises when it comes enterprise to look at new options. to allocating Objective 2 aid. The The Objective 2 funds are to be used opportunities for SMEs to develop for product development, including CONTACT and reorganise, particularly with the development of maritime hou- respect to increasing exports, must sing models. The purpose of the Ringkjøbing County be improved. In terms of the tourist project is to secure the enterprise’s Objective 2 Secretariat industry, season extension and viability in future and to strengthen Regional Development Unit capacity-utilisation improvements the enterprise’s adaptability and Østergade 41 have a high priority. competitiveness to safeguard jobs DK-6950 Ringkjøbing and to create new jobs. Objective 2 Funding Tel. +45 96 75 31 49 The total Objective 2 assistance "Træfpunkt" (Meeting Place) is a E-mail [email protected] amounts to approximately EUR 1.1 new holiday concept that is to be million, dispersed over the three developed and profiled so it can Additional information: priorities. Approximately EUR attract more tourists to the area. A www.ringamt.dk – search for 108,000 of this amount had been Træfpunkt will be established in two Objective 2 used as of 1 October 2002. Approxi- locations indicating a weekly pro- mately EUR 365,000 of assistance gramme of activities for the entire amounting to approximately EUR 2.3 family. The programme lasts for

Support for Growth 17 South Jutland County

The transitional assistance areas include the municipalities of Gram, Rødding, Nørre-Rangstrup, Skærbæk, Bredebro, Højer, Løgumkloster and Tinglev with approximately 57,000 inhabitants. The Objective

The Objective 2 area 2 area includes the islands of Aarø and Barsø with Transitional assistance area a total population of 216 inhabitants. No support

> > > Situation in the Area The area has good traffic and supply The county is thinly populated and systems, but lacks more of the ‘soft’ typified by relatively small village infrastructure, e.g., R&D, specialised communities. The population is consultancy services and higher stagnant. People in the 20 to 34 age educations. group move away, meaning fewer children and more elderly in the long Aim of the Effort term. The labour force is reduced The Objective 2 effort must maintain and does not have the necessary and create new, lasting jobs by qualifications. The vicious circle enhancing the area’s commercial inherent in these trends results in a strengths and by staking its future relatively high relief burden. on new, innovative enterprises. Projects should have technological or The trade and industry structure is innovative novelty value, e.g., they lopsided, with an excessive number should involve the development of of traditional enterprises in traditio- new products, new production met- nal sectors and an excessive number hods or alternative solution options. of enterprises that are dependent on German market fluctuations. The Improved development conditions, available level of services, including such as cultural, activity and leisure public service activities, is low in the centres, should rectify the relatively area, compared to the rest of South low share of service trades and Jutland and Denmark in general. infrastructure, as well as extend the tourist season. The projects should provide good opportunities for active

18 Support for Growth leisure life, e.g., by providing access priorities. Approximately EUR 6,500 developed for producing packaging to cultural activities, clubs and of this amount had been used as compactors made of aluminium. organisations. Similarly, access to a of 1 October 2002. Approximately This occurs through a development wide range of leisure and recreatio- EUR 2 million of assistance amoun- partnership with AluCluster. nal facilities will underpin increasing ting to approximately EUR 3.7 million demands by tourists for active, has been used in the transitional wholesome holidays – both during assistance area as of this same CONTACT and outside the peak season. date. South Jutland County Pilot projects that develop new IT Project Examples Secretariat for the Objective 2 and IKT options are an important and Phase-out Programme condition, not only to attract more AluCluster is an innovation and Development Department persons to settle in an area far from competency centre specialising in Skelbækvej 2 workplaces and services, but also to the practical application of alu- DK-6200 Aabenraa maintain and increase the number minium. The knowledge centre has of tourists who visit the area. This received assistance for establishing Tel. +45 74 33 52 36 will also provide development oppor- formalised cooperation with select E-mail [email protected] tunities for enterprises and enhance SMEs that are willing to enter into the area’s potential for attracting network cooperation regarding alu- Additional information: innovative enterprises. minium. www.sja.dk

Objective 2 Funding Uffe Nielsen's Maskinfabrik in the The total Objective 2 assistance Municipality of Løgumkloster is amounts to approximately EUR testing a new design and improved 60,000, dispersed over the three manufacturing method that was

Support for Growth 19 Viborg County

This Objective 2 area includes the municipalities of Sydthy, Morsø, Sundsøre and Aalestrup, with 48,726 inhabitants, and the transitional assistance municipalities of Hanstholm, Thisted, Sallingsund, Spøttrup and Møldrup, with 57,239 inhabitants.

> > > The County’s Situation The trade and industry structure in the eligible area is typified by many SMEs with up to ten employees. As a result, the area is typified by low-technological manufacturing and tradesmen enterprises. The area is also typified by a low level of investments, a relatively low level of education and low unemployment. These conditions have made it difficult to increase the knowledge- based manufacturing that is needed in the area.

Aim of the Effort The aim of the local effort is to compensate for – or at least prevent an increase in – the developmental drawbacks. This is to be achieved through measures such as advising and supporting enterprises, by establishing new enterprises, by creating jobs and by upgrading the qualifications of the labour force.

For transitional assistance municipalities, the positive trend experienced

20 Support for Growth The Objective 2 area Transitional assistance area No support

by the area during the previous million, dispersed over the three Træ-Alu Vinduet A/S. The estab- assistance period continues. Based priorities. Approximately EUR 3.5 lishment of a new enterprise that on this positive trend, the authori- million of this amount had been creates ten jobs (and an additional ties of Viborg County have decided used as of 1 October 2002. Approxi- twenty, one year after the end of to provide assistance for enhancing mately EUR 1.3 million of assistance the project), and generates added the development conditions of amounting to approximately EUR 3.7 turnover of EUR 3.4 million. The SMEs. This will occur by giving aid to million has been used in the tran- enterprise’s strategy is to be among public projects, e.g. via consultancy sitional assistance area as of this the first to manufacture this type of programmes. At the same time it is same date. window and thereby obtain exper- important that the necessary service tise in the field. In addition, funds measures are available in the area Project Examples have been granted from the to attract and maintain the neces- European Social Fund for enhancing sary labour force, which shall ensure Netværk Limfjorden (Lim Fjord the qualifications of new employees. the ongoing development of the Network). A public development enterprises. This also includes the project that involves the continued prioritisation of sustainable tourism development of the ‘Snapseruten’ CONTACT projects. product, which covers the areas bordering on Lim Fjord. The long- Viborg County Enterprises will be directly supported term aim is to make Lim Fjord more Office for the Promotion of through product development renowned as a holiday destination Trade and Industry assistance, as well as external on the map of Denmark and Europe, Skottenborg 26 consultancy assistance in connection by enhancing its image in terms of DK-8800 Viborg with the development of individual quality, traditions, culture, gastro- enterprises and products. nomy and compelling experiences. Tel. +45 87 27 18 47 The effects are expected to generate E-mail [email protected] Objective 2 Funding more bed-nights, increased turnover The total Objective 2 assistance for the area’s tourism enterprises www.erhverv.viborgamt.dk amounts to approximately EUR 13.6 and more.

Support for Growth 21 Århus County

This Objective 2 area includes Samsø, Anholt and Tunø islands with 4,529 inhabitants, as well as the Municipality of Nørre Djurs, a transitional assistance area, with 7,851 inhabitants.

The Objective 2 area Transitional assistance area No support

> > > Current Situation All three islands lack permanent The Municipality of Nørre Djurs has jobs, a factor which also results in many small enterprises, particularly depopulation – especially with tradesman and tourism enterprises respect to the two smallest islands. along the north coast of Djursland. Samsø’s situation worsened con- The expansive area is thinly popu- siderably when five per cent of its lated, making it difficult to generate labour force became unemployed joint, farsighted developments in after the slaughterhouse closed trade and industry. down.

The islands of Anholt and Tunø are Aim of the Effort affected by depopulation. Sea trans- The Regional Committee for port to and from the island of Objective 2 in Århus County focuses Samsø is its greatest problem, which particularly on projects that create is why much of the agricultural and maintain jobs. Owing to produce has switched from so-called Samsø’s status as "Denmark’s low-value to high-value crops, i.e., Renewable Energy Island", projects from cereals and grains to berries that promote efforts to convert to and vegetables that are easier to renewable energy are given special convey by ferry. attention. On Anholt and Tunø, projects that promote and develop

22 Support for Growth tourism in particular receive high million, dispersed over the three office, educational, research and priority, as this sector can be instru- priorities. Approximately EUR exhibition facilities, as well as hous- mental in creating new jobs and 276,000 of this amount had been ing facilities, if possible. The total thereby encourage the island inhabi- used as of 1 October 2002. Approxi- project sum was EUR 50,000 and tants to remain on the islands. mately EUR 50,000 of assistance assistance was applied for and gran- amounting to approximately EUR ted by the Objective 2 Programme in The Regional Objective 2 Committee 504,000 has been used in the the amount of EUR 25,000. in Århus County still encourages transitional assistance area as of potential project applicants to look this same date. into the inherent potential of pro- CONTACT duct development. An increased Project Examples effort in product development can Århus County be the catalyst for new enterprises Feasibility study for Samsø Department of Trade and Industry or for expanding existing enterprises. Vedvarende Energi-Ø Center (the Lyseng Allé 1 This could be instrumental in crea- Samsø Renewable-Energy Island DK-8270 Højbjerg ting new jobs in existing industries, Centre). The purpose of the project but also in totally new areas. was to investigate the prospects Tel. +45 89 44 69 28 for establishing a rallying point email [email protected] Objective 2 Funding and dynamic centre on Samsø for The total Objective 2 assistance renewable energy and environmen- www.eustrukturfonde.aaa.dk amounts to approximately EUR 1.3 tally related activities, including

Support for Growth 23 November 2002 ISBN 87-91143-34-9 Regional Policy of the European Commission Photo page 13 and 23: Scanpix 23: 13and Photo page CommissionEuropean the ofRegional Policy 2676-1102 AS Design Due The purpose of the Objective 2 Programme of the EU is to strengthen positive developments in areas with weak trade and industry development and which are also experiencing stagnation or recession.

Objective 2 does not include entire nations, but geographic areas within the individual countries – areas that in many respects are facing greater difficulties than the country Photo:Information Directorate-General CommunicationsUnit, and in general. These areas are eligible for assistance from the Objective 2 Programme for specific types of projects.

This booklet describes the areas in Denmark that are entitled to Objective 2 assistance. The booklet also describes some of the ongoing projects and provides guidelines on how to apply for assistance for new projects.

Objective 2 aid originates from two European structural funds: the European Regional Development Fund and the European Social Fund, which are administered by the National Agency for Enterprise and Housing and the National Labour Market Authority respectively.

National Agency for Enterprise and Housing National Labour Market Authority Vejlsøvej 29 Holmens Kanal 20 DK-8600 Silkeborg DK-1060 Copenhagen K Tel. +45 35 46 60 00 Tel. +45 35 28 81 00 www.ebst.dk www.ams.dk