Structural actions Greater concentration 2000 2006 1994 1999

Structural actions Greater concentration 2000 -2006 1994 -1999 2000 -2006 7 3 Community Initiatives 13 4 % of EUR 15 population covered by the regional Objectives 50% 41% Objectives EU-Regional Policy and Cohesion Agenda 2000 1

Structural actions 2000 -2006 Objective 1 • for NUTS II regions whose per capita GDP is lower than 75% of EU average (94/96 data) • list decided by the European Commission • 22% of EU population • 69. 7% of the funds (136 billion EURO) • outermost and ex-Objective 6 regions included as Objective 1 regions • transitional period of 6 or 7 years for areas losing eligibility EU-Regional Policy and Cohesion • Objective 1 funds also for PEACE and Swedish coast programmes Agenda 2000 2

Structural actions Objective 2 • total coverage = 18% of EU population 2000 -2006 • 11. 5% of the funds (22. 5 billion EURO) • for areas affected by socio-economic restructuring • indicative coverage of 4 strands at EU level: - industrial and service areas (10%) - rural areas (5%) - urban areas (2%) - fisheries-dependent areas (1%) • transitional period of 6 years for areas losing eligibility EU-Regional Policy and Cohesion Agenda 2000 3

Structural actions 2000 -2006 Objective 2 list: methodology (1) • Total coverage given by population ceiling by Member State according to: -population in regions which meet Community-wide primary criteria -the extent of structural problems at national level (unemployment and longterm unemployment outside Obj. 1). -safety-net: maximum reduction in coverage of 1/3 compared to Obj. 2 and 5 b in 1999 EU-Regional Policy and Cohesion • Community-wide primary statistical criteria are first used for identifying eligible industrial and rural regions Agenda 2000 4

Structural actions 2000 -2006 Objective 2 list: methodology (2) • then Member States submit list of proposed eligible regions using Community-wide and other national criteria • minimum of 50% defined by Community-wide criteria where possible • final list determined after consultation with Member States; final decision by the Commission EU-Regional Policy and Cohesion Agenda 2000 5

Structural actions 2000 -2006 Objective 3 • for regions not covered by Objective 1 • a reference framework for all human resources actions across a Member State • 12. 3% of the funds (24 billion EURO) • adapting and modernising systems of education, training and employment: - accompanying economic and social changes - lifelong education and training systems - active labour market policies to fight unemployment - promoting social inclusion and equal opportunities EU-Regional Policy and Cohesion Agenda 2000 6

Structural actions Transitional arrangements No abrupt cut-off of EU support to the regions Ex-Objective 1: 2000 -2006 • 2000 -2005: gradually reduced funding from ERDF, ESF, EAGGF-Guidance, FIFG • 2006: for parts of regions meeting the Objective 2 criteria: extension of programme for other areas: continuation of ESF, EAGGF-G and FIFG within same programme (not ERDF) Ex-Objectives 2 and 5 b: EU-Regional Policy and Cohesion • 2000 -2005: gradually reduced support from the ERDF only; plus 7 year benefit from horizontal Obj. 3, rural development, and FIFG programmes. Agenda 2000 7

Structural actions 2000 -2006 EU-Regional Policy and Cohesion Community Initiatives Emphasis on Community added value • Four fields of action: - INTERREG: crossborder, transnational and interregional cooperation to encourage balanced development and spatial planning (funding: ERDF) - URBAN: urban regeneration (funding: ERDF) - LEADER: rural development (funding: EAGGF-Guidance) - EQUAL: transnational cooperation on new ways to combat discrimination and inequality in the labour market (funding: ESF) • Total resources = 5. 35% of Structural Funds Agenda 2000 8

Structural actions 2000 -2006 Breakdown of Structural Funds credits • 69. 7% to Objective 1 (incl. phasing out) • 11. 5% to Objective 2 (incl. phasing out) • 12. 3% for Objective 3 • 5. 35% for Community Initiatives • 0. 40% for innovative actions • 0. 25% for technical assistance • 0. 5% for FIFG outside Objective 1 EU-Regional Policy and Cohesion Agenda 2000 9

Structural actions Structural Funds: Breakdown by Member State and Objective for 2000 -2006* Million EURO at 1999 prices 2000 -2006 Total Obj 1 Obj 2 * total includes phasing -out and FIFG outside Obj. 1 Objs. 1 and 2 exclude phasing- out EU-Regional Policy and Cohesion Agenda 2000 10

Structural actions Population eligible for Objective 1 in period 2000 -2006* 2000 -2006 *excluding phasing-out EU-Regional Policy and Cohesion Agenda 2000 11

Structural actions Comparison of average annual support: 1994 -99 and 2000 -2006, by Member State Million EURO at 1999 prices 2000 -2006 Average annual support in 94 -99 Average annual support in 2000 -06 EU-Regional Policy and Cohesion Agenda 2000 12

Structural actions Population ceiling for each Member State under Objective 2 for 2000 -2006* 2000 -2006 *excluding phasing-out EU-Regional Policy and Cohesion Agenda 2000 13

Structural actions 2000 -2006 Comparison of population coverage for Objectives 1 & 2: 1994 -99 and 2000 -2006 % 1994 -1999 2000 -2006 EU-Regional Policy and Cohesion Agenda 2000 14