Structural Funds of the European Union

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Structural Funds of the European Union

• European Citizen Action Service (ECAS)
• Pavel Kelly-Tychtl

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Overview

• Aim of regional policy
• Four structural funds
• Budget for Structural Funds 2000-2006
• Three objectives of SF
• Cohesion fund
• Community Initiatives
• Development strategies
• Future of structural funds
• Third report on economic and social cohesion
• Implementation of SF in Greece (an example)

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Aim of EU regional policy

• The aim of regional policy is to facilitate the
  harmonious development of the EU by helping to
  bridge the gap between the developed and less
  developed regions.

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Four Structural Funds

• There are four Structural Funds
• European Regional Fund (ERDF)
• European Social Fund (ESF)
• European Agricultural Guidance and Guarantee Fund
  (EAGGF)
• Financial Instrument for Fisheries Guidance
  (FIFG)

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Budget for Structural Funds from 2000 - 2006

• For the period of 2000 2006 there is EUR 213
  billion available.
• This is used to supplement public and private
  expenditure in the Member States to support the
  implementation of economic and social development
  programmes.

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Three objectives of Structural Funds

• Objective 1
• Helping regions whose development is lagging
  behind to catch up with the rest of the EU.
• Objective 2
• Supporting economic and social conversion in
  areas facing structural difficulties.
• Objective 3
• Modernising systems for training and promoting
  employment.

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Cohesion Fund (ISPA in the future Member States)

• Cohesion Fund supplements Structural Funds
  support in the Member States that were deemed to
  be the least prosperous in late 1999. These are
  Greece, Portugal, Spain and Ireland. Cohesion
  Fund supports projects involving environmental
  protection and European transport networks.

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Budget of Cohesion Fund from 2000 to 2006

• There is EUR 18 billion available for Cohesion
  Funds in the period from 2000 to 2006.

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Community Initiatives

• Interreg III (cross-border, transnational and
  interregional cooperation).
• URBAN (economic and social regeneration of cities
  and urban districts in crisis).
• Leader (innovative actions and integrated
  strategies for rural development).
• EQUAL (transnational cooperation to support equal
  access to training and the labour market).

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Development Strategies

• European Commission assists Member States in
  drawing up development strategies that take
  account of Community priorities.
• These strategies are globally defined in
  documents called
• Community support frameworks (CSF)
• Regional operational programmes

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Decentralistaion

• The selection and implementation of specific
  projects is entirely decentralised to the Member
  States. National authorities and the European
  Commission jointly monitor selected projects.

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Future of the Structural Funds

• Next financial period from 2007 to 2013
• (will concern Romania as well when it joins in
  2007)
• In February 2004 European Commission has released
   Third Report on Economic and Social Cohesion 
  to outline priorities for the period from 2007 to
  2013

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Third Report on Economic and Social Cohesion

• Economic growth in the EU has slowed over the
  three years. As a result, unemployment has risen
  again in many parts of the Union with all the
  social implications which this entails.

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Third Report Situation and Trends

• Disparities between existing EU Member States
• Despite the narrowing of disparities between EU
  Member States, large differences remain. In
  Greece and Portugal, GDP per head is still only
  around 70 or less of the EU average.

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Disparities in the enlarged Union

• Average GDP per head in these 10 countries is
  under half the average in the present EU and only
  56 of those of working age are in jobs as
  against 64 in the EU 15.
• (Third Report on Economic and Social Cohesion,
  European Commission, February 2004)

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A substantial widening of regional disparities
in the enlarged Union

• Some 92 of the people in the new Member States
  live in regions with GDP per head below 75 of
  the EU 25 average and over two-thirds in regions
  where it is under half the average.
• (Third Report on Economic and Social Cohesion,
  European Commission, February 2004)

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A substantial widening of regional disparities
in the enlarged Union

• If Bulgaria and Romania, where GDP per head is
  under 30 of the EU25 average, were to join the
  EU, the population living in regions with GDP
  below 75 of the EU average would more than
  double from the present number (from around 73
  million to over 153 million).
• (Third Report on Economic and Social Cohesion,
  European Commission, February 2004)

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Social Cohesion and the risk of poverty

• In 2000, around 55 million people around 15
  of the total population, faced the risk of
  poverty. The proportion was relatively high in
  the countries of southern Europe and Ireland and
  in many of the accession countries.
• (Third Report on Economic and Social Cohesion,
  European Commission, February 2004)

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The ageing population

• According to the latest projections, the number
  of people aged 15 to 64 is projected to be 4
  smaller in the EU15 in 2025 than in 2000 and it
  will be 10 smaller in the accession countries.
• (Third Report on Economic and Social Cohesion,
  European Commission, February 2004)

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Implementation of structural funds in Greece
2000 - 2006

• With the signing of the Community support
  framework (CSF) in November 2000, Greece embarked
  on an ambitious regional development programme.
• The first six priorities, which cover the whole
  of the country, are as follows

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Greece 2000 - 2006

• Development of human resources and employment
  promotion
• Communications
• Enhancing competitiveness for sustainable
  development
• Rural development and fisheries
• Quality of life
• Information Society

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Funding for Greece 2000 - 2006

• Total funding of nearly EUR 25 billion has been
  allocated to Greece under the 2000 2006
  Community Support Framework (compared with EUR
  19.271 billion for the period 1994 to 1996.

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Examples of successful projects in Greece

• Qualitative modernisation of hotels and the
  conversion of traditional buildings into hotels
• Greek hotel infrastructure is still poorly
  developed. The standard of service continues to
  vary greatly and the quality/price ratio is
  uncompetitive in the Mediterranean context.
• To address this issue, the Ministry of the
  Economy and Finance, together with the EU,
  co-financed a project to improve the standard of
  tourist facilities.

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Modernisation of hotels in Greece - continuation

• The measures supported focused on improving the
  quality of basic facilities (bathrooms, air
  conditioning etc.), improving furnishings and
  decoration, installing leisure facilities, such
  as swimming pools and sports areas etc.
• Attention was also paid to the quality of hotel
  architecture, not only aesthetically but also
  from an environmental perspective (energy
  savings, choice of materials etc.).

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Modernisation of hotels in Greece - continuation

• One of the principal reasons for improving hotel
  facilities and services was to extend the tourist
  season to eight months (from the current six).
• The project resulted in the modernisation of 85
  hotels (renewal of 32,481 beds) and in the
  conversion of 28 traditional buildings into
  hotels (684 new beds). 840 temporary jobs were
  created.
• Total eligible cost EUR 175.596 million
• EU funding EUR 32.298 million

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II. Promotion of female entrepreneurship

• Female unemployment in Greece is very high
  compared to that of men (especially in the 21 45
  age bracket). At the same time it is difficult to
  start your own business if you are a woman. Most
  of financial institutions are reluctant to
  provide women with capital and very often friends
  and family are not very supportive.

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II. Promotion of female entrepreneurship -
continued

• This situation encouraged the Ministry of
  Development to establish an initiative to promote
  female entrepreneurship. This included advice on
  economics, financing, taxation, law and
  management. 431 applications for support were
  received out of which 132 enterprise projects
  were successfully completed.

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II. Promotion of female entrepreneurship -
continued

• The majority of businesses supported were in
  publishing and printing industry (21), the food
  and beverage industry (20) and the clothing
  industry (18).
• Selected bussineses were provided with
  equipment, software, product promotin such as
  brochures, videos, participation in exhibitions
  and consultancy.

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II. Promotion of female entrepreneurship -
continued

• 132 businesses were set up or developed and 389
  new jobs created.
• Total eligible cost EUR 11.896 million
• EU funding EUR 5.948 million

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Special care for the deaf and hearing-impaired(a
regional project)

• In western Greece, there was traditionally no
  educational infrastructure geared to the specific
  needs of deaf and hearing-impaired. No
  infrastucture existed that facilitated full
  access to education whilst at the same time
  providing the individual support needed for
  social integration and normal participation in
  family life.

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Special care for the deaf and hearing-impaired-
continued

• This issue has been solved when the Patras
  (western Greece) Section of the National
  Institute for the Deaf was completed and equipped
  with the assistance from Structural Funds.
• The new facility comprises of three building
  school, accommodation and administrative centre.
  There is also an infant consultation centre, a
  nursery school, a primary school, a school of
  lower secondary education and a vocational
  section.

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Special care for the deaf and hearing-impaired-
continued

• The new institute can accommodate 120 persons
  including 80 boarders. It currently has 40
  pupils out of which 18 are boarders.
• Although the institute has been in operation
  since 2000 it is still short of human resources
  such as highly specialised personnel in audilogy,
  logotherapy and sign language interpretation.

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Special care for the deaf and hearing-impaired-
continued

• Total eligible costs 3.991 million
• EU funding 2.993 million

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IV. Day-care centre a regional project

• The town of Schimatari on the Chalkida to Athens
  road is home to many families employed in the
  major industrial zones based alongside this road.
  As there is an increasing number of parents
  working outside of home, there has been an urgent
  need for childcare facilities.

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IV. Day-care centre-continued

• Therefore a nursery was built in Schitamari
  between September 1997 and May 1999.
• The nursery was built on council land with
  funding from Structural Funds and equipment
  financed by the Ministry of Health and Social
  Welfare. The nurseary can accommodate up to 70
  children.

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IV. Day-care centre-continued

• Total eligible costs EUR 470, 250.64
• EU funding EUR 352, 687.98

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Questions ?

• Should you have any questions do not hesitate to
  contact me at
• kelly-tychtl_at_ecas.org