Brussels, 17/05/2005 (Agence Europe) - On 17 May, Danuta Hübner, Commissioner for regional policy, presented to the press in Brussels the “Third Progress Report on Cohesion” for a new partnership for growth, employment and cohesion. The report describes the state of the EU regions and trends since the publication of the report on economic and social cohesion in February 2004. It also covers a number of key themes for regional policy and cohesion that have emerged in the context of mid-term review of Structural Funds, thus taking stock of: - economic and social differences in the enlarged EU, - EU cohesion policy and the Lisbon agenda during the period 2000-2006, - and the future of cohesion policy and the aims of growth and employment objectives.
“The report confirms the need for an ambitious cohesion policy and adequate resources from 2007. There are wide gaps in prosperity and employment in the enlarged Union”, Commissioner Hübner told the press, stressing that around 140 million people live in the regions below or close to 75% of the EU average GDP. “Here, the Community has a clear task in promoting faster growth in line with the objectives of the renewed Lisbon strategy for growth and jobs”, she added.
As far as the economic and social differences in the enlarged EU are concerned, Danuta Hübner notes that, in 2002, the last year for which regional data is available, the levels of GDP per capita ranged from 189% of the EU25 average in the ten most prosperous regions to 36% in the ten least prosperous regions. “I am quite sad to note that a large part of the latter regions are in my own country”, the Commissioner commented, adding that over one quarter of the population of the EU in 64 regions have GDP per head below 75% of the EU average. In the new Member States, this concerns 90% of the total population, except for Prague, Bratislava, Budapest, Cyprus and Slovenia. In the EU15, only 13% of the population are in low income regions and these are concentrated in southern Greece, Spain, Italy and Portugal and in the eastern Länder of Germany. “It is encouraging that the report confirms it is in the poorest regions of European that growth is the greatest”, Ms Hübner said.
When it comes to employment rates, the progress report stresses that major progress remains to be made as, generally speaking, these rates, which were on average 62.9% for the EU25 in 2003, remain clearly below the 70% target set in the Lisbon agenda for 2010 (or 67% for 2005). In four Member States (Denmark, Sweden, Netherlands and United Kingdom) these rates reach 70% whereas it stands at only 51.2% in Poland. In the new Member States, employment is expected to increase by 25% to reach the 70% goal, Ms Hübner added, noting that 200 regions out of 254 are below this target. This is also true for productivity, research and development where regional differences are considerable, Danuta Hübner noted. The report also highlights the clear link between the objectives of the renewed Lisbon Strategy for growth and jobs and cohesion policy expenditure priorities. This policy is important for Lisbon, not only from the financing point of view but also from the point of view of governance which involves partnerships with towns and regions, allowing Member States to take on board the Lisbon strategy at this level and to govern the complex development tasks according to the different conditions on the ground, Ms Hübner stressed.
By way of conclusion, the Commissioner recalled that, on 20 May, in Luxembourg, the ministers are to discuss in an informal manner on the strategic guidelines of the EC for cohesion. An ambitious policy with adequate financial resources is needed in 2007, she said by way of conclusion, calling on the Council and Parliament to “do everything possible to reach an agreement on the next financial perspectives under the Luxembourg Presidency in a way that allows the challenge of cohesion to be addressed at an adequate level in the light of the analysis set out in this report” in order to contribute to growth and employment.
In response to journalists, Ms Hübner specified, on the subject of the situation in Spain: 1) Spain/phasing out: “The stance taken by the Commission's legal service is that a phasing out mechanism for aid is not the easiest to achieve. We shall seek the most appropriate solutions for the regions that need it”. 2) Cohesion Funds/Commission refusal of Presidency proposal: “We are not refusing anything at all (…). If there is a decision by Member States allowing a solution to the Spanish problem, the Commission will do everything possible to provide unsparing aid and set up an instrument that will meet the Spanish plan”.