regional policy history

8/9/2019 Regional Policy History

1/32

History of the Community Regional Policy


2/32


3/32


4/32

Giuseppe Caron

Vice-President of theCommission of the European

Economic Communities 1962-

1963, on regional policy (July

1962)(Click below for sound file)


5/32

Since the Rome Treaty of 1957, one of the

main tasks of the Community has been to

promote an harmonious development of

economic activities. The need for a

coordinated community solution to regionalproblems and the correction of regional

imbalances was also recognised in

Commission reports, a first communication

(1964) and a subsequent recommendation

(1969). The Assembly (todays EP) expressed

its support in resolutions during the 1960s. Thefirst enlargement (IRL, DK, UK) and the

objective of an Economic and Monetary Union,

made the Heads of State and Government

decide in October 1972 to create a Regional

Development Fund. Based on art. 235 of the

Treaty (todays art. 308), the Council agreedunanimously on the first ERDF regulation in

December 1974.


6/32

Map of less favorised

regions,

European Community, 1964


7/32

On 18 march 1975, the first ERDF regulation entered into force. Following a

Council debate in Paris in December 1974, a budget of 1.4 billion "units of

accounts" (the then budget's "currency") for the years 1975 to 1977

representing some 4% of the budget's had been split between the then nine

Member States. Three actions were defined as eligible up to 50% of public

expenditure, and preferably to be carried out in national state aid areas: 1)investments in small enterprises creating at least 10 new jobs; 2)

investments in infrastructure related to point 1, and 3) infrastructure

investments in mountainous areas, which had to be eligible to the

agriculture guidance fund, too. Member States had to apply for ERDF

support at project level. Decisions were then taken in a committee of

Member States based on Commission proposals.


8/32

George Thomson,

Regional Policy Commissionerbetween 1973 and 1977

presents the report on the

economic and social

development of the EC regions

in 1973

(Click below for sound file)


9/32

Bruce Millan,

Regional Policy Commissionerbetween 1988 and 1995 on

eligibility under Objective 2

between 1989 and 1993 and

the reform of 1993.(Click below for sound files)

March 1989

March 1993


10/32

History of what ?

- regional disparities?

- regional devolution ? (institutional

framework) - the national regional

policies?- the Community regional means?


11/32

II Enlargement in 1973:Its consequences: creation of ERDF

(European Regional Development Fund), a

specific instrument

I The 1957 Treaty of Rome:

little regional dimension

III The 1986 Single Act:The Internal Market objective and the

accompanying policies, concerning economic

and social cohesion policies serviced by the Structural

Funds


12/32

IV The 1992 Treaty on the European Union

and the pillars of Community constructionconcerning economic and social cohesion.

V The 1999 agreement and the preparation for

enlargement


13/32

I - The Treaty of Rome (1957)

Community Mission (Art 2)

Internal Market Promoting the harmonious development

of economic communities in the

entire CommunityMethods (Art 3)

Elimination ofcustoms laws

Common customs tariff


14/32

(Common transport policy)

To not distort competition

Creation of a European Social Fund (ESF)

Founding of European Investment Bank (EIB)

Association of non-member countries

I - The Treaty of Rome (1957) (continued)


15/32


The accompanying instruments:

1. The ESF - promoting employment possibilities

(art. 123) (the work factor)

by - professional training

- employment support

2. The EIB - the creation of new resources

(art. 130) (the capital factor)

by - the improvement of less developed regions- the modernisation/conversion of enterprises

- common interest projects for moreMember

States


16/32


The accompanying instruments:

3. The framework of STATE AIDS

(art. 92) to not distort competition

- aid with general aim- aid with a sectorial aim

- aid with a regional aim

4. Sectorial (and non-regional) policies

- a success: the CAP and its

financial instrumentEAGGF

- a failure: transport

(harmonious development in the whole

Community)


17/32

II - The 1973 Enlargement & its consequences

* Particular situation of the United Kingdom with regard to the

European budget:

- receipts of the EEC budget side: UK a traditional importerfrom non-member countries

- expenses of the EEC budgetside: UK a minor partner of the

CAP

* Consequence: the creation of

ERDF: European Regional Development Funda budgetaryinstrument of regional policy


18/32


19/32


20/32

III - The 1986 Single Act

* The major objective: THE INTERNAL MARKET

(to be completed by 1993)

- abolition of obstacles to the free circulation ofy goods

y people

y services

y capital

(c.f. obstacles: regulations and norms: technical: fiscal)


21/32

III - The 1986 Single Act (continued)

* The accompanying policies

- Monetary capacity

- Social Policy

- Economic and social cohesion

...in order to promote a harmonious development in

the whole of the Community!

- Research and technical development

- Environment


22/32

III - The 1986 Single Act (continued)

A - An accompanying policy =

Economic and social cohesion policy

Aim - Reduce the gap between different regions and the (art.

130a) lagging behind of less prosperous regions

Methods - Funds with a structural aim or

p Structural Funds

- EAGGF - Guidance

- ESF- ERDF

p the EIB and other existing instruments


23/32

III - The 1986 Single Act

(continued)

B - The Reform of the Structural

Funds

To help the cohesion policy

* Four basic principles:

1 Concentration

- priority objectives (*)- geographical

2 Partnership

3 Programming

4 Additionality


24/32

IV - The 1992 European Union Treaty

Mission (Art. 2)

- Promotion of balanced and harmonious development of

activities in the whole of the Community, of durable growth

etcof economic and social cohesion and solidarity betweenthe member states.

Methods (Art.3)

- CommonMarket

- Economic andMonetary Union

- Common policies and actions

- of which, the reinforcement of economic and

social cohesion


25/32

IV - The 1992 European Union Treaty (continued)

Accompanying specific instruments

p Funds with a structural purpose

p

a new Fund: the Cohesion Fundp a new institution: the Committee of the Regions

p a monitor : the triennial cohesion report


26/32


1 - The financial perspectives: 1993 - 1999 (Edinburgh Council)

y Structural Funds 1994 - 1999:

- 141 billion ECUs of which 96.35 billion Ecus

(Obj. 1) 1/3 of the EEC budget

y Cohesion Funds 1993 - 1999

- 15.15 billion Ecus


27/32


2 - The putting in place of the instruments

y The Cohesion Fund

- transport infrastructure projects

- environmental projects

y The revised Structural Funds

1993 - the six revised regulations


28/32

V - The 1999 reform and the preparation

for Enlargement

1- The financial perspectives: 2000-2006

(Berlin Council)

yStructural Funds: 195 billion EuroyCohesion Fund: 18 billion Euro

yPreaccession instruments


29/32

1989 - 1993

Integration of the structural

funds

5 common objectives

Standardised administration

rules

Decentralised management

Increase of the structural funds'

budget up to 14 bn ECU p.a.(ca. 20% of EU-Budget)


30/32

1994 - 1999

Introduction of a newobjective 4

Simplification of

procedures

New: Cohesion Fund andfisheries instruments

Increase of the structural

funds' budget up to 32 bn

ECU p.a.

(ca. 30% of EU budget)


31/32

2000 -2006

40% to 49,9% of EU

pouplation (155224 Mio.)

in eligible areas (Obj. 1&2)

phasing-out for someobjective 1,2 and 5b

regions

3 common objectives

Introduction of pre-

accession instruments for

candidates (ISPA)

Increase of the structural

funds' budget up to 38 bn

Euro p.a.

(ca. 33% of EU budget)


32/32

2007 - 2013

3 objectives,Community

initiatives

mainstreamed

All regions

eligible

Budget increase:

about Euro 50 bn

p.a. (ca. 36% of

the EU budget)

Rural

development and

fisheries funds

outside cohesion

policy

regional policy history

Documents