COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 29.03.1995 COM(95) 111 final COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE EUROPEAN PARLIAMENT, THE ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS THE NEW REGIONAL PROGRAMMES UNDER OBJECTIVES 1 AND 2 OF COMMUNITY STRUCTURAL POLICIES A SUMMARY OF THE RESULTS EXPECTED AND OBTAINED FROM THEIR ESTABLISHMENT TABLE OF CONTENTS INTRODUCTION I. PREPARATION OF THE NEW PROGRAMMES A. The main guidelines of the new regulations B. The Commission's "frame of reference" in establishing the CSFs EL. THE CONTENT OF THE NEW CSFs : A VALUABLE CONTRIBUTION TO ADJUSTMENT IN THE REGIONS WHOSE DEVELOPMENT IS LAGGING BEHIND A. The macro-economic dimension of Community structural assistance B. Selectivity in Community assistance C. Taking account of Community priorities D. Application of the guidelines under the new regulations E. Some innovations m. THE NEW PROGRAMMES FOR THE OBJECTIVE 2_ REGIONS ^ A RESPONSE TO INDUSTRIAL DECLINE AND FINDING A NEW ECONOMIC FUTURE FOR WEAKENED REGIONS A. Eligibility of industrial regions in decline B. The financial contribution of the Structurel Funds and the characteristics of Objective 2 areas C. The main results of the negotiations D. An analysis of the development priorities E. The application of the newly amended legal provisions F. Innovations IV. FINAL REMARKS ANNEX I : SUMMARY TABLES ANNEX n : OBJECTIVE 1 : THE RESULTS BY PROGRAMMING DOCUMENT ANNEXHI : OBJECTIVE 2 : THE PRINCD?AL RESULTS BY MEMBER STATE THE NEW REGIONAL PROGRAMMES UNDER OBJECTIVES 1 AND 2 OF THE COMMUNITY STRUCTURAL POLICIES A SUMMARY OF THE RESULTS EXPECTED AND OBTAINED FROM THEIR ESTABLISHMENT Communication of the Commission to the Council, the European Parliament, the Economic and Social Committee and the Cqmmitee of the Regions INTRODUCTION In the course of 1994, the Commission approved the new programmes for the regions whose development is lagging behind (Objective 1) and the industrial regions in decline (Objective 2). For Objective 1, these decisions mobilize 94 billion ECU (1994 prices) of Community resources for a six year period running from 1994 to 1999, or 2/3 of the total Structural Funds financial package. For Objective 2, the programmes cover a period of three years (1994-1996) and involve 7 billion ECU of Community resources, or 11% of the total Structural Funds financial package for this triannual period. To these amounts will be added loans from the European Investment Bank; a predominant part of its activities concern the development of the least prosperous regions. In view of the problem of unemployment, which affects the Union more than any other economic grouping in the world, the regional assistance from the Community, thanks to its selective nature, will furnish a valuable and sustainable contribution to growth, competitiveness and employment in the whole of the Community's territory and in particular in the least favoured regions. The new programmes have been established in partnership on the basis of the plans proposed by the Member States. It is appropriate to mention that the adoption of these documents by the Commission has taken somewhat longer than the 6 month period provided for in the regulation, especially in the case of Objective 1. Indeed, the large volume of credits mobilized made the extension of the period necessary to meet the quality requirements imposed by the new regulation for the programming documents, notably as regards precision in the quantified objectives, prior appraisal of the expected impact, environmental information, and respect of the principle of additionally. It is also appropriate to repeat that the search for more precise definition of the priorities at the level of the Community Support Frameworks has made it posssible to approve the Operational Programmes either at the same time, or within a limited time of the adoption of the Community Supports Frameworks, in all cases where these programmes have been proposed during the preparation of these Frameworks. This Commurtication encompasses the principal elements of Community assistance programmed in favour of the Objective 1 and 2 regions during the new programming period. From a cross-reading of the texts, it summarizes the anticipated impact on the economic development of the beneficiary regions - including in terms of employment - the contribution of the operations selected for the strengthening of Community policies and the progress achieved in order to guarantee increased effectiveness in the use of Community public money. - It is important now to ensure, in partnership, the correct and effective use of Community resources, and their impact on employment. The establishment of effective monitoring and evaluation systems will allow progress to be verified periodically and, if necessary, programmes will be adapted accordingly. Particular attention has to be paid to the strengthening and respect of the priorities of Community policies, in particular in the field of environment. The control of Community expenditure has to be reinforced in order to fight against fraud and irregularities. Finally, it is appropriate to mention that the Community assistance for Objectives 1 and 2 regions will be supplemented by the operations decided in the Community Initiatives. I. PREPARATION OF THE NEW PROGRAMMES A. The main guidelines of the new regulations The revision of the Structural Funds regulation, approved by the Council and the Parliament in July 1993, was intended to achieve greater effectiveness in Community structural assistance while maintaining the basic principles of the 1988 Reform. The most significant innovations reflected in the modified regulations relate to the following aspects : - the adaptation of the priority objectives of the Structural Funds to the actual consequences of current economic changes, as well as the fundamental revision of the European Social Fund. This revision has put a greater emphasis on political orientations and on a strategic approach, including the new Objectives 3 and 4 comprising those excluded from the labour market and the adaptation of workers to industrial changes in production systems. Objective 5 responds to concern for the protection of the rural world and takes into account the adjustments in the fisheries sector; - the enlargement and reinforcement of the partnership, in particular to the economic and social partners. The new regulations enshrine this principle in the context of the provisions offered by the institutional rules and existing practices in each Member State; - the strengthening of the prior appraisal, monitoring and ex post evaluation of the structural operations. The need for a more quantitative analysis of development gaps, and for better precision of the objectives within regional strategies are only a few examples of the requirements of the new regulations in this regard. Furthermore, special attention is attached to the measurement of the effects on employment, indicating the priority attached to the fight against unemployment; - greater attention to respect for the environment in the implementation of Community structural policies. Through the revision of the regulations, the principle of "sustainable development" has been introduced into the context of Community structural policies, and environmental considerations have been fully integrated into the process of programming regional assistance; - a greater guarantee for respect of the principle of additionality. The regulations clarify this principle (SF credits must not normally replace expenditure by the Member States) and the criteria for verifying its respect (a Member State must maintain its structural public spending for all the areas covered by an objective, as a proportion of the global public development effort, at least at the same level, as in the previous programming period); - the adaptation of the procedure for establishing the list of areas eligible under Objective 2, as under Objective 5b : a broader range of eligibility criteria reflecting the increasing complexity of regional conversion and development problems and a decision making process based on a greater partnership; the acceleration and simplification of programming procedures is made concrete by the option of recourse to the technique of Single Programming Documents. Without going into the technical details, this option makes it possible to approve, in a single document, both the priorities of Community assistance and the specific measures granted financial aid by the Commission. During the previous period, these two elements were always decided in two separate documents : first the priorities for assistance in the CSFs, then the specific assistance operations (operational programmes, global grants,..); a greater involvement of the European Parliament in the implementation of Community structural policies. The regulation itself, and especially the code of conduct concluded between Parliament and the Commission, are the concrete result of this. B. The Commission's "frame of reference" for establishing the CSFs in Objective 1 regions In their examination of the development or conversion plans submitted by the Member States, the Commission departments based themselves on the experience acquired during the preceding period, and on a certain number of specific criteria : - full respect of the new regulations; - the quality of the strategies proposed and the relevance of the operations, also in terms of the objectives of "growth, competitiveness and employment" for the regions