Support for Growth > > > Objective 2 aid from the European Union to regions of Denmark with a particular need to strengthen development and growth > > > Authors: National Agency for Enterprise and Housing | National Labour Market Authority | Regional Municipality of Bornholm | Funen County | Storstrøm County | North Jutland County | Ringkjøbing County | South Jutland County | Viborg County | Århus County | Contents 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 > > > 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