Regional Policy History
Transcript of Regional Policy History
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History of the Community Regional Policy
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Giuseppe Caron
Vice-President of theCommission of the European
Economic Communities 1962-
1963, on regional policy (July
1962)(Click below for sound file)
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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.
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Map of less favorised
regions,
European Community, 1964
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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.
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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)
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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
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History of what ?
- regional disparities?
- regional devolution ? (institutional
framework) - the national regional
policies?- the Community regional means?
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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
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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
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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
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(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)
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I - The Treaty of Rome (1957) (continued)
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
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I - The Treaty of Rome (1957) (continued)
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)
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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
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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)
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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
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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
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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
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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
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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
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IV - The 1992 European Union Treaty (continued)
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
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IV - The 1992 European Union Treaty (continued)
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
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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
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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)
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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)
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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)
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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