growing regions, growing europe

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GROWING REGIONS, GROWING GROWING REGIONS, GROWING EUROPE EUROPE Fourth Report on Economic and Social Fourth Report on Economic and Social Cohesion Cohesion By Prof. Danuta Hübner Brussels, 30 May 2007

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Page 1: Growing Regions, Growing Europe

GROWING REGIONS, GROWING REGIONS, GROWING GROWING EUROPEEUROPEFourth Report on Economic and Social Fourth Report on Economic and Social CohesionCohesion

By Prof. Danuta HübnerBrussels, 30 May 2007

Page 2: Growing Regions, Growing Europe

EUROPEAN COMMISSION Regional Policy 2

Situation Situation and and trends: trends: regional regional disparitiesdisparities

In 2004, the top regions (with 10% of the EU population) had a GDP per head that was almost 5 times higher than that in the bottom regions (with 10% of the EU population), while in 2000 it was 6 times higher

Page 3: Growing Regions, Growing Europe

EUROPEAN COMMISSION Regional Policy 3

Situation Situation and trends: and trends: regional regional growthgrowth

Over the period 1995-2004, growth of productivity has been high in the regions of the new Member States.

Yet, in 29 regions (notably in France, Italy and Spain) productivity has decreased.

Page 4: Growing Regions, Growing Europe

EUROPEAN COMMISSION Regional Policy 4

Situation Situation and trends: and trends: employment employment deficitdeficit

Around 24 million additional jobs need to be created to reach the Lisbon target of employment rate

More than a third of these jobs have to be created in only 30 regions in Poland, Spain, Romania and southern Italy

Page 5: Growing Regions, Growing Europe

EUROPEAN COMMISSION Regional Policy 5

Situation Situation and trends: and trends: the the innovation innovation deficitdeficit

Regions in Scandinavia, Germany, the UK, and the Netherlands emerge as the best performers

While in 86 regions home to a third of the EU population, performance is below average

Page 6: Growing Regions, Growing Europe

EUROPEAN COMMISSION Regional Policy 6

Challenge 1: Challenge 1: demographydemography

85 regions (mainly in the new Member States) are already experiencing absolute population decline, and another 76 regions maintain population growth only thanks to migration

Page 7: Growing Regions, Growing Europe

EUROPEAN COMMISSION Regional Policy 7

Challenge 1: Challenge 1: demographydemography

In large parts of Spain, Italy, and Greece there are only 2 people in employment for every person above retirement age compared to an average for the Union of around 3 people

Page 8: Growing Regions, Growing Europe

EUROPEAN COMMISSION Regional Policy 8

Challenge 2: Challenge 2: industrial industrial patterns and patterns and restructuringrestructuring

39 regions have more than 3% of their total employment concentrated in the clothing, textile and leather industry (twice the average of the Union), reaching 13% in the Norte region of Portugal

Page 9: Growing Regions, Growing Europe

EUROPEAN COMMISSION Regional Policy 9

Challenge Challenge 3: 3: climateclimate changechange

7% of the EU population live in areas at high risk of flooding (red and orange colour)

In 45 provinces (NUTS III), over 20% of the population is at risk

Page 10: Growing Regions, Growing Europe

EUROPEAN COMMISSION Regional Policy 10

Policy response in the EU Member Policy response in the EU Member StatesStates

0

10

20

30

40

50

60

70

80

90

100

BE IT IE AT

DE

FR

ES

DK

NL FI

PT

UK

SE

LU EL

CO

H4

EU

-15

0

10

20

30

40

50

60

70

80

90

1001995 2004% of Government capital expenditure

Capital expenditure by regional and local authorities, 1995-2004

Source: Eurostat

Over the past 10 years, there has been an increase in the share of investment under the control of regional and local authorities

Page 11: Growing Regions, Growing Europe

EUROPEAN COMMISSION Regional Policy 11

Cohesion policy supports muchCohesion policy supports much needed investmentneeded investment

0,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

2000 2001 2002 2003 2004 20050,0

0,5

1,0

1,5

2,0

2,5

3,0

3,5

4,0

ERDF and Cohesion Fund

Public investments% of GDP

Public investment and contribution of ERDF and Cohesion Funds (payments) in the Cohesion countries, 2000-2005

Source: Eurostat

Between 2000 and 2005 in the four cohesion countries, public investment has been around 25% higher than without cohesion policy

Page 12: Growing Regions, Growing Europe

EUROPEAN COMMISSION Regional Policy 12

Cohesion policy helps shift the policy Cohesion policy helps shift the policy mix of public investmentmix of public investment

The share of cohesion spending on R&D, innovation and ICTs has more than doubled between 2000-2006 and 2007-2013

Page 13: Growing Regions, Growing Europe

EUROPEAN COMMISSION Regional Policy 13

Cohesion policy reduces social exclusion Cohesion policy reduces social exclusion and povertyand poverty

• Cohesion policy co-finances the training of 9 million people annually, more than half of them women;

• Over 450,000 jobs were generated between 2000 and 2005 in six countries, representing 2/3 of Objective 2 funding;

• Estimates suggest that around 1.4 million additional jobs will be created in Convergence regions between 2007 and 2013

Page 14: Growing Regions, Growing Europe

EUROPEAN COMMISSION Regional Policy 14

Cohesion policy contributes to the Cohesion policy contributes to the growth of GDPgrowth of GDP

Preliminary estimates for the period 2000-2013 (2004-2013 for the new Member States) suggest an increase in GDP compared to a baseline scenario without cohesion policy by:

• Around 9.0% in the Czech Republic Latvia• Around 8.5% in Lithuania, and Estonia• Around 7.5% in Romania• Around 6.0% in Bulgaria and Slovakia• Around 5.5% in Poland• Around 3.5% in Greece and 3.1% in Portugal

Page 15: Growing Regions, Growing Europe

EUROPEAN COMMISSION Regional Policy 15

Next steps…Next steps…

1. Questions on the future in the 4th Cohesion Report

2. 27+28 September 2007: 4th Cohesion Forum launches public consultation

3. Spring 2008: Fifth Progress Report on Economic and Social Cohesion, including a report on the public consultation

4. Autumn 2008: Follow-up conference to the 4th Cohesion Forum (tbc)

Page 16: Growing Regions, Growing Europe

EUROPEAN COMMISSION Regional Policy 16

http://ec.europa.eu/regional_policy/sources/docoffic/official/reports/cohesion4/index_en.htm

More information: More information: