Analysis of the impact of Community Policies on Regional...

Analysis of the impact of Community Policies on Regional Cohesion

Contract Number: 2002 CE 16 0 AT 171

FINAL REPORT

ANNEX I REGIONAL CASE STUDIES

VOLUME 2

EUROPEAN COMMISSION

DG Regional Policy

October, 2003

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FINAL REPORT (ANNEX I)

INDEX VOLUME II

FR - FRANCE 242 Nord-Pas-de-Calais 242 Bretagne 280 Limousin 338

IE – IRELAND 384 Border, Midland and Western 384 Southern and eastern 418

IT – ITALIA / ITALY 450 Toscana 450 Campania 496 Sardegna 523

Analysis of the impact of community policies on regional cohesion Final Report. DG REGIO EC. REGIONAL CASE STUDIES

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FRANCE:

REGION: NORD-PAS-DE-CALAIS

ELABORATION:

Jos Janssens

PRIMULA S.A.R.L. FRANCE.


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ANALYSIS OF THE IMPACT OF COMMUNITY POLICIES ON

REGIONAL COHESION: THE CASE STUDY OF NORD-PAS-DE-CALAIS. FRANCE

EXECUTIVE SUMMARY

Context

The region Nord Pas-de-Calais is composed by the Départements Nord and Pas-de-Calais. Most of the four million habitants live in many small rural municipalities, or in small densely populated industrial cities. The metropolis Lille has a growing influence in its economic hinterland, including over the Belgian border. Industries are declining since the seventies, a process marked by the loss of over 50 % of jobs in mining, steel, textile and other industries. Growth in services was relatively low, investments weak, closing industries left polluted sites, urban centres were declining and constituted pockets of bad housing, poverty and unemployment. GDP was below EU and national average, unemployment growing above average, so the region was granted in 1994 the objective one status for Maubeuge, Douai and Avesnes areas, whereas most of the rest of the region benefited from the objective 2 programme.

Up to 1997-1998, declining industries were prioritised: it took quite some time before authorities acknowledged, that support to industries which have to compete with low income countries (e.g. textile) is not that effective. The end of the 1994-1999 programmes and the new 2000-2006 programmes is taking into account the strengths of the region: the excellent maritime connections, well-developed roads, and fair railway infrastructure. Upcoming services industry is now prioritised, with prevailing clusters distribution, logistics and finances; the strategy builds also on the strong potential in emerging industries: tourism, health, environment and ICTs.

Data collection

Data collection on results and outcomes of programmes in Nord-Pas-de-Calais is not very straightforward. The complicated, centralised and extremely hierarchic French administrative system is certainly one of the underlying causes, and competition between various administrations add some flavour to the quest for information. Most policies in France are still managed on national level (agriculture, transports, infrastructure, state aids); on the level of the départment (NUTS 3) policies are implemented, but administrations at this level do not have information about financial amounts, results or impact of these policies. The decentralisation, staged since a few years, has introduced the level of the Région (NUTS 2 level) and regional development plans (Contrat de Plan Etat-Région, CPER). The ‘decentralised state services’ (Secrétariat Générale aux Affaires Régionales, SGAR) are increasingly involved in the preparation and monitoring of regional affairs on behalf of the central state, whereas the Conseil Régional is the democratic expression of the region. Both administrations compete to some extent; however, the SGAR


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remains the main source of information for regional development. New administrative divisions are actually in the phase of creation: ‘communautés de communes’, grouping a number of municipalities in order to facilitate investments in infrastructure, and the ‘pays’, which can group a number of municipalities, even over the border of a single Département (often based upon historical roots): both new structures play a role in regional development. The municipalities have also a small responsibility in development affairs, but they seldom are able to inform the public about this.

The scheme above represents the general system. For many policy issues, separate administrations are responsible, without any link to other administrations at the same level. The coordination – if any- is the responsibility of the central administrations in Paris. For example, in NPDC there is no coordination or exchange of information between the regional innovation service ANVAR (depending from its hierarchy in Paris) and the initiatives aiming at developing the information society at local level (Digipole). Further, the absence of tradition of independent evaluation in France, combined with archiving problems give the impression that some officers are reluctant to inform about the use of public money or European funding. Further, few electronic documents exist from the period before 1997-1998, which makes it necessary for public services to unearth old documents and to photocopy these. These facts make it rather difficult to obtain information on policies, programmes or projects, save from the last five years.

Basically data received are of good quality. Reports and evaluations formulate results as outcomes of projects, not as structural results or impacts on cohesions. Moreover, no direct causality can be constituted between European policies or funding and effects on cohesion.

Structural Funds Programmes

The region has benefited as a whole from structural funds programmes. Programmes covered almost the entire region, and the investing in infrastructure on all levels will pay off in future. However, the conclusion for NPDC is quite similar to the overall assessment of the community programmes in France, as reported by national Parliament:

- Structural support has little effect on national or regional GDP

- Supports had no structuring effects on regional development

- Mostly it concerned small projects, complementary to regional development plans or in compensation for lacking national investments

NPDC received 34.77 % of total French support from community programmes – CAP excluded. Community programmes have contributed much to social and economic cohesion, but the region converged little towards EU average on the level of GDP or unemployment figures. The short-term results of the objective one and two programmes remain below expectations: the results for GDP growth and income were generally modest. Employment improved, but generally the gap of 3 to 4 points to national average remained. Urban and rural renewal has been concrete, and contributed to cohesion.


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The weaker municipalities have received more support than the stronger communes, but their financial situation continues to limit their policy choices. For the new programming period, the objective one area has become a ‘phasing out’ area, whereas objective 2 zones remain important. Programme management, monitoring and coherence between EU programmes and state/region planning have improved for the 2000-2006 period.

Transports

The Chunnel shows its first results: traffic and British tourism have grown strongly, which has contributed in the coast area to the employment situation. The new highways, improving the links from NPDC to Paris, to Belgium and to the coast area have increased transport, especially to the Chunnel. Transport has become a dynamic industry in the region, with a relative weight slightly above the national average, and an increase in employment. However, added value of the transport sector is not in line with the increase in volumes, and is paired to environmental by-effects. International transport of persons via railroad has increased considerably the last few years (Thalys, Eurostar), leaving regional railroad insufficiently developed. The regional development plan 2000-2006 seems to reorient the approach, and prioritises the development of ports and channels.

Agriculture

Regional agriculture has evolved rapidly, in line with CAP. The number of exploitations continues to shrink (since 1988 2/5 of all farms has disappeared), the average area per exploitation increases. NPDC is more urbanised and more industrialised than other regions, which confronts: exploitations in near-urban zones with growing difficulties to cope with environmental rules and neighbourhood committees, especially in cases of extension. Communitarian agricultural policies have improved incomes, businesses and working conditions of farmers, without laying foundations for diversification or sustainable farms. NPDC has not been able to plan or carry out agricultural policies focusing on regional needs, for example concerning marketing and distribution of the Maroilles cheese, the only regional agricultural product benefiting from ‘appellation contrôlée’ status. Environmental policies have not been integrated in the CAP.

Fisheries

Community policies have contributed much to the development of fisheries in NPDC. Community policies and direct support have enabled the modernisation of the fleet and the infrastructure on the shore, including the fish processing industries. They accompanied the industrial change and economic problems of this sector. However, some challenges remain: the average age of the ships is too high, recruitment and qualification problems have emerged.

State aids

State aids are a substantial part of the regional development programme (CPER), which since 1994-1999 programming period integrates European and national support. The influence of EU programmes on this policy is thus substantial.


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However, programme focused industries in decline, instead of promising service sectors. Up to the end of the period, anticipation was nearly absent and strategy was defensive, whereas local policy makers and civil society were not involved in preparation and implementation. In Lille some new industries (e.g. ICTs) or services were attracted, whereas Valenciennes received strong impulses in the car assembly industry. However, it is not quite possible to relate these results to the regional development plan or community policies.

R & D

Results from R&D policies can’t be measured in the short run. R&D effort in France is not among the strongest in the EU and NPDC remains even below national average. Since 1997, R&D focuses industries with growth potential instead of declining industries (e.g. biotechnology). The link to Community policies remains weak, save for participation in regional innovation and information society programmes (RITTS and IRISI). Innovation transfer to industry remains weak, and cooperation between different structures and administrations remains a problem. Lille has the ambition to become one of Europe’s leading digital cities.

Environment

Environment is still under siege in NPDC, probably because environmental effects for policy measures in other domains (infrastructure, transport, incentives to industry) have not been appreciated. Structural funds programmes have contributed to improve environment. Regional parks and nature trails have been created, rivers and canals restored, however, without tangible effects for tourism. Industrial wastelands have been cleaned, enabling new investments, and industry zones have been renewed thanks to EU money. Awareness of environmental problems and their effects for population and attractiveness of the region has increased, and recently an Agenda 21 strategy for the NPDC region has been adopted.

Interregional cooperation

The ambitions of the Interreg programme have contributed to a more coherent transborder approach and seem to be promising for the evolution of Lille as metropolis. However, barriers to mobility remain in place. Interregional cooperation between administrations has improved between NPDC and Belgium, but remains still superficial, whereas cooperation with British partners has not left the virtual stage.

Coordination

Some policies from the past might have reverse results, although probably this will remain within reasonable limits. Transport has increased as a by-product from road infrastructure, and has undeniable negative environmental effects. Even in the actual programming period, negative environmental results can’t be excluded, as the effects between all measures and environment have not sufficiently been analysed. R&D policies had partly negative results for employment. Agricultural policy has not been marked by investment in future-oriented,


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diversified and sustainable agriculture. Some distortions on competitiveness are the results of unfocused project selection. EU policy has created also distortions in competitiveness: massive aid for objective one zones in Hainaut (Belgium) and the objective one area inside of NPDC have influenced investment plans of private industries.

Governance

Community policies in NPDC are very dispersed, which has lead to the rather modest results. In order to improve implementation of community policies, a better coordination would be needed. However, as long as the French administrative structure keeps it complexity and centralisation, cooperation between administrations on regional level will not be able to overcome deficiencies of the structure. It is unlikely that without dramatic changes, centralised programmes will be flexible enough to focus on regional and local needs. Moreover, it is unlikely that these programmes will be able to create and activate partnerships with local constituencies, social partners or voluntary organisations. The progress in the management and monitoring of community programmes alone will prove not sufficiently enough to overcome these deficiencies.

Results

To conclude: community programmes have contributed much to social and economic cohesion, but the region converged little towards EU average. There was a growing effort to align EU policies to regional policies, especially in the framework of the Contrat de Plan État –Région. However, measures were not focused enough on regional priorities, continued to focus on industries in decline instead of new promising industries or services, and were not always coherent one with the others.


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INDEX 1 COMMENTS ON THE ACTIVITIES

2 CONTEXT AND BACKGROUND GEOGRAPHICAL AND SOCIO-ECONOMIC CHARACTERISTICS COMPETITIVE POSITION OF THE REGION

3 COMMUNITY POLICIES REGIONAL DEVELOPMENT PROGRAMMES AND COMMUNITY PROGRAMMES AGRICULTURAL POLICY FISHERIES TOURISM ENVIRONMENT TRANSPORT RESEARCH AND DEVELOPMENT URBAN RENEWAL EMPLOYMENT INTERREGIONAL ASPECTS ROLE OF STATE AIDS

4 ASSESSMENT OF THE IMPACT: MAIN RESULTS REGIONAL DEVELOPMENT & CONVERGENCE AGRICULTURE FISHERIES TOURISM ENVIRONMENT TRANSPORT R & D URBAN RENEWAL EMPLOYMENT INTERREGIONAL ASPECTS STATE AIDS

5 COORDINATION

6 CONCLUSIONS

7 GOVERNANCE

8 RECOMMENDATIONS


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APPENDIX

List of inteviewed key informants:

Index of tables

Table 1: Regional development plan & structural funds 1994-1999

Table 2: Regional development plan 2000-2006: financing

Table 3: Regional development plan 2000-2006: priorities

Table 4: Fisheries: IFOP 1994-1999

Table 5: Fisheries: CI PESCA 1994-1999

Table 6: State Aid per habitant 1994-1999

Table 7: public support to enterprises

Table 8: Comparison state aid/EU support 1994-1999


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1 COMMENTS ON THE ACTIVITIES

Data collection on results and outcomes of programmes in Nord-Pas-de-Calais is not very straightforward. The complicated, centralised and extremely hierarchic French administrative system is certainly one of the underlying causes, and competition between various administrations add some flavour to the quest for information. Most policies in France are still managed on national level (agriculture, transports, infrastructure, state aids); on the level of the départment (NUTS 3) policies are implemented, but administrations at this level do not have information about financial amounts, results or impact of these policies. The decentralisation, staged since a few years, has introduced the level of the Région (NUTS 2 level) and regional development plans (Contrat de Plan Etat-Région, CPER). The ‘decentralised state services’ (Secrétariat Générale aux Affaires Régionales, SGAR) are increasingly involved in the preparation and monitoring of regional affairs on behalf of the central state, whereas the Conseil Régional is the democratic expression of the region. Both administrations compete to some extent; however, the SGAR remains the main source of information for regional development.

New administrative divisions are actually in the phase of creation: ‘communautés de communes’, grouping a number of municipalities in order to facilitate investments in infrastructure, and the ‘pays’, which can group a number of municipalities, even over the border of a single Département (often based upon historical roots): both new structures play a role in regional development. The municipalities have also a small responsibility in development affairs, but they seldom are able to inform the public about this.

The scheme above represents the general system. For many policy issues, separate administrations are responsible, without any link to other administrations at the same level. The coordination – if any- is the responsibility of the central administrations in Paris. For example, in NPDC there is no coordination or exchange of information between the regional innovation service ANVAR (depending from its hierarchy in Paris) and the initiatives aiming at developing the information society at local level (Digipole). Fisheries and maritime affairs policy depend on interdepartmental services: the service in Boulogne (DRAM/DIDAM) is responsible for NPDC and Picardie. State aids depends on DRIRE, which implements mainly policy decide in Paris. The same accounts for employment policy: the regional DRTEFP (region) and DDTEFP (department) depend from the employment ministry in Paris, and have little responsibilities in policy shaping.

The absence of tradition of independent evaluation in France, combined with archiving problems give the impression that some officers are reluctant to inform about the use of national public money or European funding. In a number of cases, administrations were not aware of the authority where information could possibly be found. Nearly no reports or studies seem to exist before the 1994-1999 period, save for the implementation of EU programmes. Further, few electronic documents exist from the period before 1997-1998, which makes it necessary for public services to unearth old documents and to photocopy these. These facts make it rather difficult to obtain information on policies, programmes or projects, save from the last five years.

Basically, data seem of good quality. However, some statistics stemming from different services might differ in absolute numbers, although they seem to agree on tendencies. The bases of these statistics are not always transparent, documentation might be not comprehensive, and series of data are not always comparable with one another, or with EU and national data, for example because they use different time scales. We have prioritised the use of statistics from INSEE, the regional dependency from the French national statistical office.


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Final reports and evaluations of community policy formulate the results under form of direct outcomes, but seldom give indications on effects or impact on social cohesion and regional development. Leverage effect of community and national investments is not always estimated.

In the framework of this study on the contribution of Community policies towards social and economic cohesion, another methodological problem arises. In most cases, no direct causality can be constituted between European funding and effects on cohesion. One has to assume that if policy measures were clearly focusing a situation, and this situation improved over time, that policy measures and funding were at the origin of the change. However, gross effects are mostly polluted with displacement, deadweight effects, or simply the results of causes that were not or could not have been observed. For example employment growth: to what effect this is the result of policy measures, or simply of conjuncture and market effects? Within this restriction, we have tried to explain as much phenomena on basis of available data, and with the friendly help of many officials. However, we have listed only those persons which granted us a full interview, or with whom we have worked in a work session.

2 CONTEXT AND BACKGROUND

GEOGRAPHICAL AND SOCIO-ECONOMIC CHARACTERISTICS

The region Nord Pas-de-Calais is composed by two Départements : Nord (653 municipalities) and Pas-de-Calais (895 municipalities). Regions are rather newly policy levels in French policy (NUTS level 2), whereas Départements (on NUTS level 3) are the traditional administrative level. On regional level, two competing administrative systems co-exist: the Conseil Régional – result of the decentralisation since the eighties – and the Secretariat Général aux Affaires Régionales – an expression of the deconcentrated services of the central state. The latter is the main instrument of the Préfet de Région and remains the main body for administration, policy design and implementation.

The region comprises slightly over four million habitants. Population density is relatively high: 322 habitants per square kilometre. However, this is distributed unequally: many small rural municipalities with few habitants are surrounding densely populated industrial cities, that are relicts from the glorious industrial past from 19 and first half of the 20 th century. Lille is a metropolis, with 200.000 habitants smaller in scale than some of it competitors, but with a growing influence in its economic hinterland, including over the Belgian border. The coast region has lost many industries, but bets now on tourism and the Chunnel effect.

The structural crisis in textile and mining industries resulted in the loss of more than 50 % of the jobs in industrial sectors between 1973 and 1998.1 The last ten years, the decline in industry continued at a rate above the national average. Industry counts now for about 26 % in regional GDP and 21.3 % of regional jobs. The relative weight of industry sectors has changed: now food processing industry, which counts for 13.4 % of regional employment has become the most important sector, followed by metal and engineering, textile and automobile sectors. Upcoming industries are the chemical and environmental industries.

1 Conseil Régional du Nord-Pas-de-Calais: Schéma Régional d’Aménagement et de Développement du Territoire, Objectif 2020 – Phase prospective, juillet 2002


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Agriculture counts for 2% of GDP; it covers 68 % of territory, and remains an important factor in the development. Construction industry equals 5.6 % in regional GDP.

Services in NPDC have a growing importance. However, whereas they account for more than 75 % in the French overall employment, this is only 70.6 %. Services are concentrated in the Lille area (including consultancy services to companies, R& D).

Commerce is well developed, with 178.000 jobs, from which 70 % of French jobs in post order industry. Regional export is 8.8 % of national export, which places NPDC as third region in France. Transport and logistics sectors have fairly developed over the last 30 years, with a strong transborder component. The Chunnel, the TGV and new highways enable quick links between Lille and main French and foreign destinations.

Growth has been important: the regional GDP growth was 30 % between 1990 and 1998, or 13.5 % in constant francs (that means, rectified for inflation effects), which is slightly above national average. However, nearly no growth at all occurred between 1990 and 1994.2 In the period from 1990 to 1998, regional GDP growth has been about 1.5 points above French GDP growth. However, the region is only the 20 th region in France for GDP per habitant.3 This is related to the high proportion of inactive persons (pensioners and unemployed youth and women).

The loss of 200.000 jobs has been compensated partly by employment in public services (+105.000 between 1975 and 1990), and a number of subsidised jobs (50.000). Unemployment remains rather strong in the former steel and metal industry areas (Lens Hénin, Douai, Valenciennes, Sambre-Avesnois. Education levels of unemployed are relatively weak. Young professionals leave the region –excepted for Lille - because it is difficult to get qualified jobs. For example, although the region is still the second centre for textile in France, no research and development is based here.

The industrial past has left many abandoned sites, often heavily polluted. This environment will not attract many people living outside of the region, and is a barrier for a number of industries to invest. Quality of life is among the worst in France, which is documented by the high mortality rate. The brain drain to Paris and Île-de-France continues, especially for well-educated young people.

COMPETITIVE POSITION OF THE REGION

NPDC region can be considered as a region in decline: part of the region is the sole objective 1 area in the French mainland, and a number of areas are classified objective 2.

In the last decades, many efforts were aiming at the development of Lille, the regional capital, as a metropolitan centre, equal to other cities, e.g. Brussels. However, market evolution decided otherwise. For example Eurallille, the new business zone near the international railway stations, does not attract multinational companies as was expected, but develops albeit to an important centre of service companies based upon the regional market. This in turn fosters the creation of many new services to business companies, based upon knowledge economy.4

The region has many trumps for becoming competitive with other regions, but weaknesses are impeding their development.

2 INSEE Nord-Pas-de-Calais : PIB par emploi et PIB par habitant, août 2001 3 INSEE Nord-Pas-de-Calais : PIB par emploi et PIB par habitant, août 2001 4 Wim Van Haverbeke : Economische ontwikkelingsstrategie voor de ‘Aire Métropolitaine Lille’, p 14


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2.1.1 Strengths

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Upcoming services industry, with prevailing clusters: distribution, logistics

and finances

Important potential in emerging industries: tourism, health, environment

and ICTs

Intellectual centre: 100.000 students, 6.500 researchers

Dynamism of SMEs

Excellent maritime connections, well-developed roads, fair railway

infrastructure

Weaknesses

Technology transfer and R&D delayed

Creation of new businesses remains insufficient

No important airport

Skills level for large parts of workforce too low

Some industries have to compete with low income countries (e.g. textile)

2.1.2 Competitiveness

The region NPDC has a fair potential, which needs to be valorised. The new regional plan for 2000-2006 focuses transport infrastructure, development of the information society, environment and social projects, which will certainly contribute to this valorisation. The interregional dynamic towards its partners in West-Flanders (Belgium), Hainaut (Belgium), Kent (Great Britain) exists, but the inter-region remains still a virtual concept5

3 COMMUNITY POLICIES

Community programmes covered most of the region.

Objective 1 area covered 840.000 habitants (21 % of region), with an average income between 25 and 30 % below EU average, depending on the arrondissement (= administrative conscription)

Objective 2 area (declining industries) covered 2.580.000 habitants (65 % of the region)

REGIONAL DEVELOPMENT PROGRAMMES AND COMMUNITY PROGRAMMES

Since 1994, the regional development plans (CPER6) and the structural funds support are to a large extent coordinated. The cover the same periods, and a number of priorities

5 André Delpont : Concurrence et complémentarité dans l’Eurométropole, p 63 6 CPER: Contrat de Plan Etat-Région


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are the same. Of course, the national co-finances for the operational programmes are represented in this CPER. However, this CPER is financed by different sources: the central state, the region, and the departments.

3.1.1 1994-1999

Structural funds interventions in NPDC were highly localised and geographically dispersed. Assistance focused on areas with high dependence on declining coal and steel industries. NPDC received 34.77 % of total French support from community programmes – CAP excluded. This left 2/3 of Community support to be distributed over 17 programmes elsewhere in France.

Table 1: Regional development plan & structural funds 1994-1999

1994-1999 Source: programme sheets

Amount Amount Contribution of funds

programme EC-contrib. EC-contrib. ERDF ESF EAGGF

meuro % meuro % % %

Objective 1 1.341,08 32,84 440,41 70 18,7 11,24

Objective 2 923,10 34,46 318,1 83,4 16,5

Urban Valenciennes 9,72 50 4,86 92 8

Urban Tourcoing 17,95 39 7 77,3 22,6

Rechar II 39,26 43 16,88 100

Resider II 45,74 31,37 14,35 100

Konver II 2,22 50 1,11 100

SME 100,56 25 25,14 100

TOTAL 2.479,63 827,85

3.1.2 CPER 2000-2006

The budget of the programme totalises 4.298 millions of euros, from which 1.235 meuro (29 %) is supported by structural funds. The contributions of the central state to regional development occurs partly outside of this framework: 229 million euro are scheduled additionally for the development of the 6 most important cities and the renewal of 2 other towns, the support of ‘Lille 2004, European capital of culture’ and some environmental measures. The effort ‘post mines’ focusing the development of the former mine area is about 105 million euros, and is included in the 3 axes of the programme.

The ambition of the first axis (making the region to one of a performing European region) totalises 25 % of national support, development of solidarity 23 % (second axis), and the transport/networking (3 axis) stand for 52 %. Transport remains the most important priority for the CPER, with 31 %, the second priority is economic infrastructure (11 %), environment the third (10.5 %). Innovation (R&D) and Information Society share 8 %, urban policy counts for less than 9 %. Tourism and social economy remain below 1 %.


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Table 2: Regional development plan 2000-2006: financing

CPER 2000-2006

Contributions meuro

State 1.597,21

Region NPDC 1.069,58

Departments Nord and PDC 396,37

European funding 1.234,84

TOTAL 4.298,00

Table 3: Regional development plan 2000-2006: priorities

CPER 2000-2006

Contributions state + region meuro

Axis 1 Development of a European economic region 667,42

R&D 108,24

Economic infrastructure 296,67

Tourism 21,34

Agriculture and fisheries 111,29

Lifelong learning 129,89

Axis 2 Development of solidarity 612,85

Urban policy against exclusion 235,99

Social and solidarity economy 12,20

Improvement of health 80,65

Sports and cultural education 284,01

Axis 3 Creating and developing networks 1.386,22

Information society 100,31

Transport: developing accessibility and equilibrium 822,16

Environment 279,44

Structuring territorial projects 184,31

AGRICULTURAL POLICY

In France, agrarian policy and intervention is very centralised: regional and departmental services have neither autonomy nor means to do something more than implement decisions coming from Paris, and have no means to measure effects. ‘Our sole evaluation source is the fact that farmers have been paid.’7. The communication is one-way: no consultation of the regions for making the plans, no involvement of local actors. The existing departmental commissions, which group a number of partners, are restricted to the implementation of the support for young farmers budget line. In the Nord, institutional partners - including the chambers - reflected about the definition of the zones in which environmental measures should be implemented; this lead to some results, however, always via Paris.

7 Interviews with Mr Buron (DDA head Pas-de-Calais) and Mr Fardelle (DDA head Nord)


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Agricultural measures seem to be rather dispersed, and not flexible enough to adapt to new situations during programming period. For example, the measure for supporting young farmers became less encouraging, when interest rates on the free market dropped 8. Modernisation of agro-food industry has benefited to the meat sector, but has not given room to initiatives concerning the Maroilles-cheese, which has an ‘appellation contrôlée’ status, and continues to lack modernisation and marketing support. Further a number of very small projects have taken place in forestry, in diversification of rural activities, in rising dairy quality, in adaptation of farms to environmental norms or in environmental impact studies. These actions have certainly improved economic situation and quality of life for the direct beneficiaries, but one wonders what could be visibility of the measures, the direct results or the strategic impact for the region.

Nevertheless, regional agriculture has evolved rapidly, according to the 2000 national agriculture census9 Agriculture represents about 2 % of regional GDP, which is 1 point less than the national average. However, still 68 % of the ground use is for agriculture. The number of exploitations has been shrinking: since 1988 2/5 of all farms has disappeared: 4.5 % yearly against 3.5 % for France as a whole, whereas loss of exploitations between 1970 and 1988 was comparable at 20,5 % yearly. According to the Agricultural Chamber10 this is related to the fact that the region is more urbanised and more industrialised than other regions: exploitations in near-urban zones have growing difficulties to cope with environmental rules and neighbourhood committees, especially in cases of extension. Moreover, a number of exploitations were confronted with difficulties related to pollution from Seveso type industries.

The average exploitation counts 46 hectares against 28 in 1988, whereas farms over 100 hectares exploit 35 % of the surfaces; this is lower than the French average, which in turn is influenced by the extremely large exploitations in the Paris basin. Most farms are individual and 90 % continue to have a family character. The sector employs 38.400 persons, which means a loss of 4.2 % yearly since 1988, which is 1 point above national average. Apparently, the major cause is the fact that the number of spouses working in the farm is regressing far more (6.7 % yearly) than their husbands. The number of part-time family workers has risen dramatically, to 36 % for the spouses and 66 % for other family members. 11This indicates that the exploitations do not allow producing an income for farmers to live on, and other sources of income have to be sought for. This has become possible, because spouses and children have benefited from better education as former generations, and they might be inclined/forced to take up a job in industry or services.

In 2000, 29.1 % of the farmers were below 40 years old, which is an improvement against the 25.4 % in 1988. Many farmers have retired: 13.2 % are 60 of age or above, against 20.4 % on national level. However, according to the Chamber of Agriculture 12, this is more a result of the fact that NPDC is the youngest region in France, and no indicator that the succession problem would be less stringent in NPDC than in the rest of France. About one in two farmers has received vocational education, against one in five twelve years ago. The skills level is about 10 points higher than in the rest of France: this might indicate the importance of vocational education for agriculture in NPDC, which counts many collèges agriculturelles and an engineer’s faculty in Lille.

Between 1988 and 2000, the agricultural area has been reduced with about 39.500 hectares, or 4.5 %. The PAC implementation however means that in 2000 about 41.000 hectares have to remain fallow. However, in the border zone real estate prices are under

8 Final report Objective 1 EAGGF, p 15 9 INSEE Nord-Pas-de-Calais : Le recensement agricole 2000, août 2002 10 Interview with Mr Alix, Regional Chamber Agriculture of NPDC 11 INSEE Nord-Pas-de-Calais : Le recensement agricole 2000, août 2002 12 Interview with Mr Alix, Regional Chamber Agriculture of NPDC


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pressure, since more and more Belgian farmers try to enlarge by buying in France, however, without moving their exploitation centre to France.13

Cereals have regressed somewhat, and for the remainder, the link with agro-industry remains obvious: NPDC account for 13.4 % of national industry cultures and 27.8 % of potatoes. Fresh vegetables have progressed with 15 % and represent now 4.500 hectares: again the link with food processing industries is obvious. Cattle breeding have regressed by 10 %, which reduced also the grasslands surface. However, this represents one farm in two from 1988 up to 2000, or seven in ten in a period from 1979 up to 2000. The average number of cattle per farm is now 33, which is about the double of the 1979 figure. Pig raising accounts also for a disappearance of 75 % of the exploitations, but only for 22 % of the animals: the scale of exploitations has considerably grown 14. This does not necessarily mean that the larger scale of exploitations produce now sufficient income: by falling prices, most farmers revert to enlarging capacities, instead of adopting strategies for intensification or product diversification15.

Organic food growing remains rather restricted with 105 farms; the number is rising, but not significantly. One explanation is that consumers prefer biologic, but do not want to pay a price sufficiently high to compensate the farmer for the work involved. A second reason is that some farmers and producers’ cooperative are in difficulty: the early adopters have invested, but had to conform to French norms, which were more sever than in other countries. Distribution however looks for competitive prices, which were abroad. The measures adopted by the EU Commission 2 years ago have levelled the playing field, but after this experience it will be hard to convince NPDC farmers to revert to biological agriculture, even if the prospects in an urbanised region are theoretically rather good.

FISHERIES

As for other Community Policies, again data are lacking. No reports ore studies were made before 1994-1999 period. Moreover, fisheries policies were heavily centralised, and regional authorities were only in charge for consumption of the credits. The ‘Direction interrégionale des affaires maritimes’ of NPDC is also in charge for the Somme departement (Picardie) and is situated in Boulogne, the main fisheries port.

The fisheries sector remains of relative importance for NPDC16. End of 1998, about 200 ships (all segments of the sector) and about 1000 jobs are responsible for bringing ashore 60.000 tons, or about 100 millions of euros in valour. However, fish-processing industry is transforming 250.000 tons: Boulogne has become an important centre for the processing industry and commerce.

The evolution and the challenges of the fisheries sector are the same as elsewhere in Europe, and European fisheries policies have marked strongly the sector. High sea fishery has declined over the last 30 years, whereas coastal fisheries are marked by modernisation, diversification and improved quality. The modernisation of ships is the main reason for raising quality and added value, paired to the reduced quantities set ashore.

Over the last 10 years, the Boulogne fleet was reduced with 100 ships, the bulk of them between 1988 and 1991. High sea fishery was reduced with 30 %, coastal fishery lost about 50 % of its ships. Actual, the fleet is composed of following segments:

13 Interview with Mr Alix, Regional Chamber Agriculture of NPDC 14 INSEE Nord-Pas-de-Calais : Le recensement agricole 2000, août 2002 15 Interview with Mr Alix, Regional Chamber Agriculture of NPDC 16 Monography Boulogne


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- la grande pêche (2 ships, transformation and deep-freezing on board)

- la pêche hauturière fraîche (12 ships, high sea, fresh fish)

- la petite pêche (60 ships, coastal fishery)

The IFOP interventions were – as for other policies – planned and implemented in the framework of the regional development plan (CPER). It focused port infrastructure, investment on behalf of the processing industry, and sanitary measures aboard of the ships.

The C.I. PESCA did not meet much interest in NPDC. The main reason was the fact that the regional development plan (CPER) and sanitary measures in the food processing industry consumed almost the entire investment capacity if the fisheries sector. For Pas-de-Calais, the action was focusing the port of Boulogne, and comprised promotion, development of the market infrastructure (ICTs), training and quality development. In the department du Nord, no projects occurred.17 Studies (axis 6) and collective infrastructure (axis 3) were at the centre of the PESCA programme, followed by transformation and commercialisation (axis 1).

Table 4: Fisheries: IFOP 1994-1999

IFOP

Source: closure report

Euros

1994-1999 INVESTMENTS

Land Fleet Total %

IFOP 4.677.534 6.659.046 11.336.580 18%

National co-financing 8.335.869 4.638.004 12.973.873 21%

Total investments 37.882.580 24.558.557 62.441.137 100%

Table 5: Fisheries: CI PESCA 1994-1999

PESCA

Source: closure report

Euros

1994-1999 Expenditure Not consumed

Axis 1 IFOP 483.620 638.557

Axis 2 ERDF 0 0

Axis 3 ERDF 807.312 11.113

Axis 4 ERDF 149.747 177.833

Axis 5 ESF 431.569 3.988

Axis 6 ERDF 1.833.853 107.361

3.706.101 938.852

17 PIC PESCA NPDC, Bilan


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TOURISM

In the past, some development chances have insufficiently been taken up: for example the tourism potential was neglected until the last decade. It is now recovering, especially in Lille and on the coast-side (Chunnel effect); however, regional parks have not yet been successful.

Community Programmes seem to have limited results for jobs in tourism: whereas the number of sectoral jobs in tourism (hotels, cafés, travel offices) was diminishing between 1990 and 1994, the decline has halted. Average employment in the tourist sector is now between 12 and 21 per thousand habitants in the coast region, 13 per thousand in Lille, against 9.89 on average for NPDC. However, the 3 objective 1 areas remain all 1 to 1.60 jobs per thousand below the regional average, although job growth is about 1 point above the regional average18. The job increase in objective one area remains a modest growth of 1450 jobs between 1990 and 1998, or 26 % over 9 years. Especially the Avesnois seem to have regained jobs, which might result from prioritising this sub-region (82 % of the aid.)19

ENVIRONMENT

Considerable resources were channelled into cleaning up industrial areas, as well as developing new business infrastructure in those areas worst affected by industrial wasteland (12 % resources of SPD objective 2). 20 1.200 hectares of former wastelands out of 4.000 hectares of disused land, at a reconverting cost of 31.600 € per hectare. Redevelopment of these areas was seen as an essential precondition to improve regional competitiveness. To date, there are few tangible results in job creation. It is expected that the cleaning up will improve attractiveness of the area, and have an impact on competitiveness.

NPDC has developed environmental priorities, in order to receive support from national authorities and the EU. The programme has now a more preventive character than before. It prioritises clearly issues related to the regional situation: pollution and industrial wastelands, water management and prevention of flooding, protection of coast area, national parks and biodiversity, prevention measures and education. 21 The new Structural Funds programming period foresees for both objective 1 and 2 three priorities: prevention of industrial risks, biodiversity and water quality, and local agenda 21, together for 79.12 Meuro22

Is environmental policy straightforward, and does it contribute to cohesion? The programming period 1994-1999 was marked by a huge effort: 17 environmental studies have been realised, 365 hectares have been redressed as natural spaces, 204 km river have been restored, 76 km natural trails been put in place23. However, economic development has often drawbacks. For example, agricultural development in the zones of Mormal and Avesnes, destroys the hedges, which in turn develops erosion and the loss of biodiversity, and attractiveness for tourism.24

DIREN25 has analysed both the new regional development plan (CPER) and the DOCUP of the structural funds for the period 2000-200626. All different measures are evaluated ex-

18 Final evaluation objective 2, ERDF part, p 26 19 Final report objective 1, p 22 20 CSES, ex-post evaluation of 1994-1999 objective 2 programmes, draft synthesis 21 DIREN NPDC : Profil environnemental - Synthèse 22 DIREN NPDC : Financement dans le cadre de la révision des DOCUP Objectifs 1 et 2, mars 2003 23 Final report objective 1, p 50 24 Final report objective 1, p 7 25 DIREN : Direction Régionale de l’Environnement 26 DIREN NPDC : Évaluation environnementale à mi-parcours du CPER, DOCUP 1 et DOCUP 2


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ante on their potential effects for environment. We learn that only 40 % of both programmes have no or insignificant impact on environment. However, a few measures have probably a negative impact, mostly on transport and enterprise creation. And the document – which still has the status of document de travail – comes to the following paradox: programmes with negative results receive most support from CPER and DOCUP. This fact is in contradiction with the original contractual basis of NPDC to subscribe a sustainable development. Environmental evaluators conclude, that integrating environmental criteria in all non-environmental programmes and measures would have more impact than that from the environmental measures foreseen in CPER and DOCUP 27.

TRANSPORT

Transport has become a dynamic industry in the region. In January 2000, it accounts for 3.1 % of GDP of NPDC, which is slightly above the national average. Sectoral employment growth between 1994 and 1998 is remarkable with 2.3 %, against 1.3 % for all sectors. Transport by road is the prevailing mode: 88.7 %, against 9.7 % by rail and 1.6 % by water for the internal traffic. Intra-European exchange also chooses the road (70 %), whereas international transport prefers the sea (50 %) above road (34 %). Nevertheless, whereas the sector is responsible for 19.2 % of the foreign exchanges in volume, this stands for only 7.5 % in values (4.330 million €) 28.

International transport of persons via railroad has increased considerably the last few years: the Thalys network links Belgium, Germany and the Netherlands to the French TGV network, and has transported 309 million passengers in 1999, whereas the Eurostar has transported 530 million passengers between Lille and London. However, regional railroad remains insufficiently developed. Railroad, port infrastructure and channels are the main targets for the regional development plan 2000-200629

The Chunnel shows its first results: traffic and British tourism have grown strongly, which has contributed locally to the employment situation. Whereas unemployment was about 2.5% over the regional average in 1986 in the NPDC coast zones (Calais, Boulogne-sur-Mer and Dunkerque), difference is now only 0.3 %. 30. For example, between 1994 and 1997 only 1000 jobs were created in Calais, mainly in commerce an in business services.

RESEARCH AND DEVELOPMENT

3.1.3 Technological innovation and transfer

NPDC is relatively weak in transfer of technologies. The number of enterprises created in the last decade remained about 1.5 point under national average31. Apparently, the areas continuing to build upon textile industry have more difficulties, than those where a more diversified economy is prevailing. The bulk of business creation is in services. Yearly between 3.500 and 4.500 new jobs are the result: this figures does not vary with economic conjuncture.

Industrial companies in NPDC counted for only 1.5 % of total number of researchers in France. The main resources for attempting to reverse the situation were the objective 2

27 idem, page 39 28 INSEE Nord-Pas-de-Calais : Le transport de marchandises dans le Nord-Pas-de-Calais, novembre 2000 29 Contrat de plan État – Région 2000-2006 30 INSEE Nord-Pas-de-Calais : Le littoral à l’heure du transmanche, septembre 1999 31 INSEE Nord-Pas-de-Calais : Création d’entreprises, territoires et emploi, octobre 2002


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programmes 1989-1993 and 1994-1999. These programmes invested in networks, sectorial clusters, ‘pôles technologiques’ and capacity building. One of the most successful projects focused the development of an advisory network for SMEs, which was successfully mainstreamed in the rest of France, SMEs now paying for the services. 32

Technological innovation seems to have jumped forward in 1997. Before that year, a rather defensive policy focused on declining industries (e.g. textile, steel). Now technological development focuses on industries with growth potential (agro-food processing industry, biotechnology, NTIC...).

R & D support is organised as most French policies: policy is developed at central level, and the regional administrations are only executers of the national programme. In NPDC the current programming period has introduced an awareness raising programme, and local technological incubators. This programme involves all public administrations and partners from industry (Chambers of Commerce). 33However, the programme has not foreseen concrete objective indicators, no links are build with existing regional programmes on ICTs (DiGDPort). Apparently, cooperation between different administrations constitutes already an important step forward, and policy makers seem to understand that awareness raising actions and guidance for companies are a necessary component for technology transfer to become operational. Nevertheless, administrations and actors seem to remain rather compartmented: no operational links are build between technology transfer, support for adaptation of work organisation, and training of management and staff. However, companies need adapted and holistic solutions comprising technology, work organisation and human resources.

Employment results were not always guaranteed. The average employment from a sample of 74 monitored companies, beneficiaries of technological support measures, decreased with 6 % between 1994 and 1998 after receiving the support. In fact, half of these companies reduced the employment level, the other half increased. 34

3.1.4 ICTs

NPDC fosters the ambition to become a leading region in ICTs. Thanks to the efforts in the second half of the nineties, Lille has now over 20.000 jobs in the ICT sector, about 50 % sectoral employment in the region, and is thus now among the best placed in France (where Paris constitutes an exceptional stronghold of ICT firms)35.

European funding has played a dominant role in this evolution: NPDC was one of the first regions to participate in the EU-funded IRISI programme (Regional Information Society Initiative). Final report remarks an absence of synchronisation between the EU measures and regional/national funding. The regional development plan continues to prioritise ICTs up to 2006: the IRISI experience and methodology is now used for the development of the DiGDPort project in Lille, with the ambition to become a leader in electronic commerce and electronic imaging, based upon the actual industry of post order distribution and direct marketing, and to create 10.000 additional jobs. 36 In 2000, Time magazine classified Lille as one of the 20 Internet important centres. The programme pursues 4 priorities: supporting the development of ICT-companies, supporting the take-up of e-government for municipalities, developing of networks, and fostering the attractivity of Lille37. The yearly

32 CSES, ex-post evaluation of 1994-1999 objective 2 programmes, draft synthesis 33 Interview with Mr Pruvot, Agence Régionale de Développement 34 Final evaluation objective 2, ERDF part, p 11 35 L’observatoire: L’analyse des TICS de Lille Métropole, novembre 2002 36 l’Agence de développement Lille Métropole: DiGDPort, programme de développement économique sur les TICS, décembre 2000 37 Pierre de Saintignon: 22 mesures pour 2000-2003 -Livre Blanc sur la Stratégie de Lille Métropole sur les TICS, décembre 2002


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budget for the starting phase is about half a million €, from which 50 % are supported by ERDF38.

URBAN RENEWAL

Structural measures have benefited most to poorer municipalities, with one exception: the cleaning of industrial wastelands. These were supported entirely by EU and national funding, whereas for urban regeneration, a participation of municipalities was required. These actions have benefited to 84 communes, totalling 67 % of objective 1-area habitants. The objective seems to be reached; however, small rural municipalities were not included.

A number of operations on infrastructure depend from the municipality’s co-financing capacity: urban renewal, industry zones. For urban renewal, beneficiaries are ‘relatively rich’: their fiscal potential is 1981 FF against an average potential of 1782 FF for the eligible area.39

EMPLOYMENT

From 1990 up to 1994, parallel with slacking conjuncture and high interest rates, business in the region adopted a wait-and-see policy, reducing the numbers of permanent jobs and relaying on low quality contracts, including the temporary lay off of their workforce. The number of unemployed progressed with 65.000 persons, a progress from 3.8 points between December 1990 and March 1994, unequally distributed: old industrial sites (Valenciennes, Sambre-Avesnois, Roubaix-Tourcoing and Lens) were hit harder than the rest of the region where services were relatively important. The 1992 social measures created a number of job placements supported by national government, which contributed to maintain somewhat rising unemployment40

The general economic recovery 1994-1997 has only affected slightly NPDC: this growth was located mostly in services – which are not so well developed in NPDC - not in industry. Moreover, end of 1997 more than 40 % of unemployed have become long-term unemployed. From early 1997 up to the end of 2002 unemployment is reduced with about 60.000 persons, and the regional unemployment rate has decreased from 16.6 % to 11.9 %, which is still 3 to 4 points above national figures. This evolution is marked by disparities, as a consequence of the fact that new industries and above all new services hire well-trained and young workforce, whereas for the less-qualified persons, no jobs are available any more. Probably this effect was even reinforced in Lille by the large immigration of young people from elsewhere in the region. Against the number of 66.000 unemployed, only 12.500 vacancies are declared41

The Objective 1 Programme focused three zones: Douai, Sambre-Avesnois and Valenciennes. In 1990 employment rate was 4.55 below regional average; 1990-1994 the gap increased to 5 %, and remains 4 points below regional average in 1998. 42 Unemployment rate has gone up and down, but remains about 4 % above regional average in 1998.

38 DiGDPort: Rapport d’activités n° 1 39 Final evaluation objective 2, ERDF part, p 30 40 INSEE Nord-Pas-de-Calais : Douze ans de chômage, mars 2003 41 ANPE, février 23003 42 Final evaluation report objective 1 ESF, p 68


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In the objective one area, ESF component has largely prioritised unemployed people (70 %). This is coherent with the needs of the objective one area and synergy with ERDF is high. Training demand is higher than can be offered financially, and nearly 90 % of objectives are reached. Concrete results from these efforts in maintaining people in employment can’t possibly be measured. Further, few SMEs seem to benefit from training measures: only 90 Companies participated. This is a penetration degree of less than 4 %: most companies that benefited were already involved in training programmes.

The situation in Valenciennes has relatively improved, probably influenced by public initiatives in the sector of automotive supply chain. On the contrary in Sambre-Avesnois the situation seems to become hopeless: emigration to Valenciennes and Lille becomes a valid strategy for a part of the active population, whereas the least qualified seem to redraw from the labour market43

Local insertion plans (PLIE) are unequal in performance: PLIE Valenciennes seems very active, and totalises 50 % of means, whereas the other 4 PLIE share the remainder. The insertion rate of the different PLIE is rather low: between 12 and 19 % of final beneficiaries are positively inserted at the end of their trajectory!

In objective two areas, nearly two thirds of ESF-sponsored training activities focused employees; the remaining third was aimed at insertion of unemployed. About 14 % of means were used for training on company initiative. 44 Leverage effect for training support to 95 % of SMEs confronted with modernisation challenges was rather low: 20 cents private investment for each euro public aid. The exception were the relatively small numbers of ‘high tech’ training programmes for companies having a sound financial basis: 1.15 euro investment for each euro public aid. 45

Lille is the main beneficiary of training actions - tendency growing - whereas the supply in the sub-regions where people are most in need is decreasing. Geographical distribution is thus increasing unequal access to training. This tendency is growing both for objective 2 and objective three actions.46 At the end of the programming period, the excessive weight of unskilled manual workers, and the deficit in highly qualified staff are an important barrier to the development and to cohesion for the region. Particularly the increasing rate of long-term unemployed is a result of the market logics, which bashes out unskilled labour to replace it by highly qualified jobs.

Objective 2 programme 94-96 has set targets: employment growth rate of 0.3 points above national average, which would require the creation of 31.000 net jobs. This target was not realised: in fact economic recovery for France has not lead directly to employment creation in NPDC in the short run47. It remains to be seen if long-term results can be allocated to the community support, or to economic fluctuations. According to the evaluators’ estimations48, Objective 2 in France had the effect of reducing unemployment by an average 0.3 – 0.6 % for the period 1989-1993. NPDC was above average: the unemployment rate in of 14.3 % in 1993 would have been 17.1 % without the objective 2 funding. About 36.380 jobs were created or saved, this is 44.23 % of total jobs created or saved by objective 2 programmes in France.

The new objective 2 programming period is focusing the creation of jobs (in technology, SMEs, tourism), lifelong learning and environmental quality, urban cohesion and local development. The investment for training of employees is nearly twice the weight it

43 Final evaluation report objective 1 ESF, p 73 44 Final evaluation objective 2, ESF part, p 7 45 Final evaluation objective 2, p 8 46 Final evaluation objective 2, ESF part, p 16 47 INSEE Nord-Pas-de-Calais : Douze ans de chômage, mars 2003 48 E&Y, Ex-post 1989-93, objective 2


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received in 1994-1999 period, whereas the importances of integration and activation policies are reduced with 12 %. 49This change in focus demonstrates a more offensive policy towards quality in employment and investment in the future.

INTERREGIONAL ASPECTS

Economics and personal dynamics over the frontiers are alive, especially between the French and Belgian regions, but the reality of an inter-region remains virtual. Economic complementarity has a large potential, people are used to go frequently over the borders, there is some cultural and tourist exchange. However, this potential for cooperation of local economies is still underestimated, labour markets are not integrated and language remains a barrier for many people. 50.

The regular exchanges between policy makers have lead to a few projects in the framework of Interreg, with direct impact on the quality of life of the population, in the framework of environment, culture, and health (for example a medical transborder pass). Further the project of Lille as metropolis for both the sides of the border seems attractive, but the different structures and competencies of administrations delay many actions. Changes in mentality for administrations and population seem to be the main benefit.

Programme managers have stressed the fact that this only counts for the cooperation between French and Belgian partners: cooperation with the British partners remains very weak, the channel being not only a physical barrier.

ROLE OF STATE AIDS

The level of State aids (national and regional, in the framework of the Contrat de Plan) has been considerably more important in the objective 1 zones. Leverage effect was nearly double in objective 1 area: each Franc public aid generated a 12.72 FF investment in objective 1 area, against 9.48 FF in Objective 2 area and 6.82 FF outside of eligible zones.51

Table 6: State Aid per habitant 1994-1999

State aid per habitant according to regional plan (CPER)

1994-1999 In €

Source: final evaluation

Objective 1 area 31,55

Objective 2 area 17,38

Outside EU areas 4,73

49 Commission européenne, Résumé du DOCUP Nord Pas de Calais – Objectif 2 50 André Delpont : Concurrence et complémentarité dans l’Eurométropole, p 69 51 Final evaluation report objective 1, p 5


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Table 7: public support to enterprises

Public aides to enterprises

Period 1994-1999

Source: final reports

Investments Outside of objective 1 Area objective 1

€ €

Immaterial Total cost 219.636,59 6.762.062,04

per habitant (active) 3,59 21,72

per project 31.376,68 32.509,91

Material Total cost 3.498.170,73 804.155.640,09

per habitant (active) 57,25 2.583,08

per project 1.166.056,86 4.232,47

Technological total cost 82.378,05 9.577.258,38

per habitant (active) 1,35 30,76

per project 82.378,05 114.014,94

TOTAL 3.800.185,37 820.494.960,52

per habitant (active) 62,20 2.635,44

per project 345.471,34 1.702.271,65

State aid focused economic development, via direct support to companies (material and immaterial, technological investment), indirect support to companies (e.g. infrastructure of industrial areas) and technological development for both private and public operators.

Support for eligible areas was much higher than for non-eligible areas.

Implementation of technological development via universities has been prioritised (70 % of support). This has created a wealth of partnerships between companies from the eligible areas and centres for technological development/universities, which seems a good future-oriented investment in the all-over strategy of conversion.

Contact with the DRIRE has learned that direct support to companies remains confidential. The only public information source on this policy is found in the reports on EU objective 1 and objective 2 programmes. Direct support in objective 1 area is given to 159 beneficiaries, totalling about 10500 jobs. However, these companies belonged to 74 different sectors, which seems to point to an unfocused operation. Final report estimates that this measure has created 3256 jobs, and saved another 8275. The decrease in unemployment in objective 1 area is a fact, however, unemployment rate, which was 4 points above national average at the start of the 1994-1999 period, is still between 3 and 4 % above national average. It is not possible to establish what could have been the situation without massive European and National funding.

The measure related to indirect support to companies comprised the creation or the development of existing industry zones. About 20 projects were implemented, however, results varied according to the sub-region: new zones in Douai, in Valenciennes, a marked extension for the TOYOTA plant, dispersed support in the Sambre-Avesnois. Demand for support stemming from companies in some of the eligible zones was rather weak, especially in Douai and the Sambre valley. In Valenciennes demand was higher: probably this is due to an effect of the investments started in the early nineties, combined with better road infrastructure, urban renewal and the influence of expansion of the universities.


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The second half of Objective 2 programme has been marked by a qualitative jump forward. Most projects were supported by companies with an offensive strategy, and were expected to have positive employment effects. However, indicators do not allow estimating indirect employment effects. 52 Indirect support was important, with € 82.32 per active habitant. State aid was restricted to 43 % for industry zones; municipalities pay for the counterpart. Real estate: 1 € public aid (State, region, EU) has a leverage effect of € 7 private investments. Port zones received 61 % public aid. The effects of this kind of investments can only be measured in the long run.

During the first years of the objective 2 programme implementation, about 7000 jobs in industry were lost (-3.5 %), which corresponds to a rhythm three times national average, and twice regional average53, mainly in textile and clothing industries in the Cambrai area, and metal industries in Dunkerque and Boulogne areas. Employment in services increased at 4.1 %, about one point above national and slightly below regional growth level.

Direct support for industry was rather weak. Between 1994 and 1996, only feasibility studies and prototypes for SMEs were sponsored; direct support for SMEs took off only in 1997. Project selectivity was low: 691 companies received on average 1.83 support measures, which might lead to a distortion of competitiveness.

The single programming document (DOCUP) and the Regional Development Plan (Contrat de Plan Etat-Région, CPER) have become relatively more coherent compared to earlier programming phases54. The DOCUP (objective 1 phasing out, objective 2 and objective 2 phasing out concerns 86.7 % of NPDC population, against 100 % for the CPER.

Table 8: Comparison state aid/EU support 1994-1999

PLANNED EXPENDITURES DOCUP CPER

Expenditure in €/habitant in NPDC 992 848

Expenditure in €/habitant national average 933 697

FINANCING in % of total budget DOCUP CPER

European Union 29

National contribution 39 47

Private contribution 32

Regional contribution 32

Both CPER and DOCUP prioritise following objectives:

- Business development

- Infrastructure and transport

- R&D& higher education

- Environment

However, the DOCUP foresees 104 €/habitant against 64 €/habitant for R&D, whereas the region prioritises infrastructure. Further, the support for business prioritises industry,

52 Final evaluation objective 2, p 8 53 Final report objective 2, synthesis, p 4 54 DATAR: Étude sur les objectifs comparés des DOCUP et des CPER- Période 2000-2006 – Tome 2 Résultats régionaux


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whereas support for agriculture, commerce and tourism is much weaker than national average. Insertion, development of social services and training receive more attention than national average (40 € against 24).

4 ASSESSMENT OF THE IMPACT: MAIN RESULTS

REGIONAL DEVELOPMENT & CONVERGENCE

‘The massive community aid in the framework of objective one has given the region a strong dose of oxygen, needed for a new start. All policy levels benefited from it: region, department, and municipalities. It had a windfall effect on almost all infrastructural issues: roads, real estate, culture. It triggered new actions in all policy fields, but unfortunately, it did have little effect on employment’: thus summarised Mr. Dehoux, Member of Parliament the impact of the objective 1 programme. We believe this a fair statement, which could to some extent also be valid for the other community policies in NPDC.

Evaluation reports from community programmes do not give comparable indicators, supporting a conclusion in terms of reverse tendencies for areas in decline. Programmes and policies have been carried out successfully, and in coherence with the programmes and policies. Outcomes are clearly indicated, but only few indications on tangible results and impacts are given. Of course, some investments will only pay in medium or long term. Statistical data however allow us to conclude that GDP, income and employment levels are still below national average, whereas unemployment remains clearly above national level. Improvements in objective one area are clear, but they remain relatively much weaker that the remainder of the already weak NPDC region. Further, it is quite impossible to conclude on proven causality between policy measures and outcomes.

However, some of these positive effects might have been mitigated because effects were not analysed ex-ante (e.g. R&D policies resulted in decreasing employment), were not well focused (e.g. training measures for SMEs did not reach those most in need), or were not flexible enough to focus local possibilities for sustainable development (e.g. agricultural measures).

Taking into account these factors, we would be inclined to conclude that community programmes have contributed much to social and economic cohesion, but that the region converged little towards EU average.

AGRICULTURE

The structure of the programme implementation, does not allow measuring directly the impact of EU agricultural policy on the income of farmers. However, both administration and representatives from the chambers, appreciate the contribution in the income via the PAC guarantees for about 30 to 35 % in NPDC. This seems coherent with the figures given by the French ministry: in the last decade, real income growth has been on average 3 % yearly. 55 In any case, average results per person in the agriculture have progressed constantly: from 18.200 € in 1990 to 30.400 € in 2000. Making abstraction from inflation, this is a progress from 43.2 % in the period 1990-2000.56

55 Ministère de l’Agriculture, BIMA, janvier 2003 56 AGRESTE: comptes régionaux de l’agriculture


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Agricultural policy can be said to have a strong effect on regional cohesion, from a viewpoint of mainstream agriculture: the income of farmers increased, farms have been modernised and their scale has improved, skills level and training have been upgraded, commercialisation infrastructure has been reinforced. However, one could question these results from a viewpoint of sustainability: the number of people living from agriculture declined, farmers try to solve the viability of their farms via increasing of scale, instead of looking for diversification (e.g. organic farming, rural tourism…) of activities and the search for new marketing channels.

FISHERIES

Community policies have contributed much to the development of fisheries in NPDC. Community policies and direct support have enabled the modernisation of the fleet and the infrastructure on the shore, including the fish processing industries. They accompanied the industrial change and economic problems of this sector.

Fisheries in NPDC are still confronted with a number of challenges. Firstly, the average age of ships is rising. Further, the over-exploitation of the resources will presumably force the fleet to stay ashore for a larger number of days. The decline in employment, paired to the decline in number of ships has made invisible the difficulties in recruitment of staff. Unemployment in the sector remains insignificant. Salary levels are above the average for the other industries, but the work of a fisherman continues to be difficult, hard and dangerous. Training needs are growing, as an effect of evolution in regulations; waiting list in the regional ‘lycée maritime’ is about 2 years. However, the sector criticises the qualification courses: too long before getting the qualification, and the courses not enough practice-oriented.

TOURISM

Support for tourism seems to have benefited mostly to Lille (43 %) and the coast area (19 %). There is a large synergy between support for tourism, urban renewal and environmental measures. Yearly about 680 jobs are created in the tourist sector, but sectoral employment rate remains below national average, excepted for Lille and the Avesnois sub-region. Phasing-out prioritises the organisation of the sector and professional development of its workforce.

The CPER invested also in the development and renewal of museums in the poorer cities: la Piscine in Roubaix, the Matisse museum in Le Cateau, the Ecomusée in Fourmies-Trélon. However, this seems to remain stand-alone activities, so far without results for regional development.

In the coast area, a ‘syndicat mixte’ brings together all actors in the tourist business, enabling for joint promotion and development of the ‘Côte Opale’. The circuit of fortified cities links French and Belgian cities, and is supported by Interreg.The promotion for ‘Lille , cultural capital 2004’ is expected to reinforce the tourist boom in the metropolis.

ENVIRONMENT

Efforts in cleaning industrial wasteland, in re-affecting rivers and canals, in creating natural parks, protected zones and nature trails are impressive. However, environment is still


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under siege in NPDC, probably because environmental effects for policy measures in other domains (infrastructure, transport, incentives to industry) have not been appreciated. Further industrialisation of agriculture in the rural Objective 1 zones, increases erosion, endangers biodiversity and affects tourism potential.

Ex-ante environmental assessment for the phasing out objective one programme learns that a better internal coherence between structural policy measures and environmental measures would give more positive results for the environment than the specific environmental measures foreseen in the programme. After 3 years of preparation, the regional Agenda 21 for NPDC is finalised, which is the first tangible effect of building a strategy for sustainable development, with own instruments for implementing, monitoring and evaluating the strategy and most of all: the ambition to change practices in all other policy domains in a long term perspective. 57

TRANSPORT

Structural investments (ports, Chunnel, highways, international railroad…), direct and indirect measures for supporting industry have laid foundations for future development, rather than contributed directly to cohesion. Infrastructure development has generated a transport increase. International transport has been privileged, leaving regional public transport largely aside. The increase in transport volume had not comparable effects on the GDP, and resulted in a relatively small employment increase.

Highways in NPDC are free, contrary to the highways in other regions. The participation of the central state is more important, taking into account the limited financial capacities of the region, its industries and habitants. However, interregional and international transport seems to benefit more from this measure than regional economy.

Another sign of contribution to cohesion is the fact that school transport in the department du Nord is supported by the conseil general: the ‘Arc en Ciel’ buses carry 130.000 school kids daily.

The CPER 2000-2006 seems to take better into account environmental aspects. The planned multi-modal platform of Dourges will improve the coordination between canals, railroad and road. The renewal of the canal Dunquerque – Valenciennes will enable container ships to use the canal, whereas the development of the Dunquerque port will strengthen the east-west axis (stretching to Lorraine).

R & D

Research and development have progressed in a structured way, but have not created a drive for private industry. Transfer of new technologies has improved, but remains unfocused and uncoordinated. The renewed focus on growth industries has replaced in 1997 the old strategy targeting declining industries, which created positive effects. The participation in EU-sponsored programmes on innovation and ICTs has been relatively important, but dissemination and mainstreaming remain rather weak. Many barriers for cooperation among different administrations, and with industry and research continue to exist. A holistic support for companies (R & D, work organisation and training) remains beyond reach.

57 L’agenda 21 régional, mai 2003


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URBAN RENEWAL

Quality of rural and urban environment has progressed much over the last decade, and the contribution of community policies can’t be denied. For example the city centres and poorer areas of Lille, Valenciennes, Avesnes have visibly been renewed over the last decade. This contributes certainly to the well-being of the population, and is a prerequisite for development of tourist industry.

EMPLOYMENT

The effects of community policies and structural funds on employment are difficult to assess. Without any doubt they raised skills level of employees and unemployed, they supported the insertion of many unemployed, they retained many people in employment: it is quite understandable, that without this massive support in both objective 1 and objective 2 areas, which cover 86 % of NPDC population, the situation could have become dramatic. Apparently, it took some time before attention was diverted from declining industries to more promising service sectors.

Community policies have thus substantially contributed to the improvement of incomes, wealth creation and well being of the population of NPDC. The impact would have been more important, if all policy measures would have been coherent.

Development is marked by a series of disparities. For example, geographical distribution of training is prioritising Lille, the regional capital, and penalising industries and people that are most in need of up-skilling. Other phenomena are a result from market effects: new services and industries prefer young and well trained staff, whereas for older and low-skilled workers, little or no jobs are available at all.

INTERREGIONAL ASPECTS

Thematic meetings between French and Belgian authorities try to put aside a number of the barriers. However, legislation is totally different, and the border zones are not a contiguous economic zone: as a result, important barriers will remain for some time. For example, it is still not possible for police forces on both sides of the border to transgress the frontier in pursuing gangsters, which allows gangs to attack and rob shops, before fleeing over the border. A new treaty between Belgium and France will enable the creation of groups of economic interest. The COPIT (Commission permanente intercommunale transfrontalière) is a new instrument bringing together the main actors of Lille and its partners in West-Flanders on practical basis.

A number of cultural events are happening transborder: the festival of Maubeuge involves Charleroi (Belgian Hainaut) and the festival of the St Michel en Thiérache abbey involves Chimay (Belgian Hainaut). However, these cultural infrastructure and festivals are stand-alone activities, without visible links to regional development or coherent touristic actions. The new CPER does not foresee a joint over-arching project for the former objective 1 area.

The 1994-1999 Interreg programme has enabled the launch of a number of interesting projects, however, without direct visible effects on interregional reality. The new phase has drawn in different administrations, and especially between Nord-Pas-de-Calais and the border regions in Belgium (Wets-Vlaanderen and Hainaut) cooperation has improved. This is


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expected to have an effect on the development of the Lille metropolis area (project GROOTSTAD), and facilitate interregional cooperation and mobility.

Modernisation of railroad infrastructure and the overwhelming profitability criterion brought some negative effects for transborder transport. For example, since the opening of the Thalys between Brussels and Paris, no longer any direct train connects Mons (Belgium) and the nearby Aulnoy (NPDC). No other regular public transport remains between this two stations, both in objective one areas (now phasing out).

STATE AIDS

The regional development programme, drawn up jointly by the decentralised state services and regional authorities and the community programmes are to a large degree coherent. They prioritise following objectives: support for business development, better infrastructure and transport, R&D & higher education, and environment.

Evaluation showed that support for SMEs might lead to a distortion of competitiveness, due to the weak selectivity of projects, allocating on average 1.83 measure per company.

Also European support might have negative effects for neighbouring areas. It is believed that the support for the 2 objective 1 areas 58 has distorted competition for the objective two areas. The relatively important European support constituted a strong competition for the attraction of new industries. It was also observed that industrial SMEs in objective 2 areas hardly renewed investments, although their financial capacities would have allowed it.59

5 COORDINATION

The compartmentalisation of different administrations on regional level is rather rigid. Apparently, consulting procedures have improved over the last few years (‘concertation’), which is not the same as ‘coordination’: administrations tend to underline their autonomy one from each other. It appears also to be difficult creating equilibrated public –private partnerships. For example, it took a few years in NPDC to set up a stronger coordination on the transfer of R&D to industry, and to allow business representatives to participate. The former programme periods were prepared rather centrally and did not foresee consultation and participation of regional key actors and private organisations in the programming of Community programmes. This –inter alia - accounted for the high allocation to public infrastructure 60. According to regional programme officers, the institutional reforms over the last few years, and the new reforms announced by government could add to the confusion of public officers, and increase opaqueness.

The departments have their own means for supporting regional and local development. The Conseil Général of the Nord department has created a regional development funds (Fonds pour l’Aménagement du Nord, FAN), supporting local and intercommunal authorities. It subsidises feasibility studies and the development of industry zones and infrastructure for new businesses (incubators an similar), taking into account the own financial capacity of the municipality for fixing the support rate. Further it subsidises infrastructure for small municipalities, prioritising environmental investments and attractiveness of the commune.

58 Belgian Hainaut and secondary the French Hainaut in the east of NPDC 59 Final report objective 2, synthesis, p 5 60 Ex-post evaluation of the 1989-1993 objective 2 programmes, p 24


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For projects already sponsored by rural development programmes or city contracts, the ‘normal’ rate can be raised by 25 %.

These support mechanisms are a necessary complement for municipalities, especially those with low income from taxes. However, the complex administrative structures make it rather difficult for small municipalities to prepare dossiers for support: often they have to file different dossiers for the same project, which is stressing their administrative capacity above the limits. The creation of new over-arching sub-regional administrative entities (communauté de communes, pays) enables municipalities to share this administrative burden, but does not simplify procedures. This can be seen as a factor reverse to regional and local development.

Discussions with programme responsibles revealed that in the past programming period (both for the structural funds as for the regional/national actions) the drive for consumption of the budget was one of the major policy rationales. Moreover, for objective 1 programmes, local deputies had successfully lobbied to allocate a ‘rightful share’ for the projects in their constituency. Project selectivity was therefore rather weak.

Management of programmes encountered a number of difficulties. During 1994-1999 period monitoring tools allowed only for financial monitoring, not for checking quality and quantity of the outputs and results. 61 A second problem is the fact that the large infrastructure projects can’t be planned, prepared and implemented in one single programming period: administrative procedures are far too complex.

The dispersion of the aid over many different measures, made it rather difficult for local policy makers, business people or associations to find the clear lines along which they can receive funding for their projects. The link with the overall policy aims became blurred and the complex system allowed very little flexibility for policy makers to adjust programmes to upcoming needs. Unfortunately, no progress was made in the new programming period: for example the objective 2 programme counts 29 different measures! According to programme administrators, this profusion of measures was the answer to demands of Commission rapporteurs to construct measures as detailed as possible.

For the new programming period strategic objectives are not quite clear on the expected effects62. Direct state support in the new program period is still prioritising industry, whereas the potential in services seems to be more promising. Further, policy instruments on the level of agglomerations and rural sub-regions (‘pays’) are not sufficiently developed, which allows the ex-ante evaluation for objective 2, 2000-2006 to question some of the operational aspects of the area and the four employment zones described.

Institutional capacity for management has improved: programme officers eluded the learning effect of programming procedures and the resulted improvement for regional procedures and the introduction of mid-term strategies. Evaluation and monitoring measures were very sparse before community programmes were put in place. Moreover, whereas the former monitoring instruments were only focusing consumption of budgets, result indicators have been created, and monitoring tools are gradually developed into management tools, enabling quicker intervention in case something goes wrong in a measure or project.

61 Final evaluation report objective 2, p 30 62 Ex-ante evaluation objective 2, p 8


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6 GOVERNANCE

French administration remains centralised to a very large extent. This results in the classical problem: programmes do no take into account sufficiently the priorities of the regional and local administrations. The decentralisation policy from the last few years has not added much to transparency and coherence in the approaches. The Régions have received new prerogatives, but the Départements are still the main administrative level. Further a dichotomy continues to exist between the representatives of the administration of the central state (Préfecture du Département, and the Sécretariat Générale pour les Affaires Régonales, SGAR - also called Préfecture de Région) and the Conseil Régional or Conseil Général. For example, although departemental services for agriculture are in place, these are mainly administrative bodies carrying out the instructions and regulations from above. They do not appear to benefit from a sufficient autonomy; they can’t even measure the results and impact of EU policy on regional level.

A few years ago, the city of Lille applied as location for the Olympic Games. This was the turnkey for the changing image of the city, which triggered involvement of civil society. It changed also the image of Lille: people in France and abroad no longer saw the city as a poverty-stricken industrial and social wasteland, but as charming, young, attractive and above all: a crossroads of Europe.63 This also attracted new investments, for example in ICT sector. On regional level, no comparable all-over project exists, nor on level of the sub-regions.

The 2000-2006 programmes (both structural funds and state/regional development plan) have involved all regional administrations, business representatives and even local policy makers in the preparation, contrary to former periods. This should allow for a more coherent approach, a better visibility, and avoid lobbying from local policy makers. Of course this has a drawback: the new programmes have similarity with catalogues, from which one can choose. It might be questioned if programme impact can be expected to improve.

7 CONCLUSIONS

The conclusion for NPDC is quite similar to the overall assessment of the community programmes in France, as reported by national Parliament: 64

- Structural support has little effect on national or regional GDP

- Supports had no structuring effects on regional development

- Mostly it concerned small projects, complementary to regional development plans or in compensation for lacking national investments

The region has benefited as a whole from community policies. Programmes covered almost the entire region, and the investing in infrastructure on all levels will pay off in future.

Communitarian agricultural policies have improved incomes, businesses and working conditions of farmers, without laying foundations for a sustainable agriculture and sustainable farms.

63 Interview with Mr Alix, Regional Chamber Agriculture of NPDC 64 Rapport d’information sur les conséquences des politiques européennes sur l’aménagement du territoire, 19/03/2003


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- Regional parks and nature trails have been created, rivers and canals restored, however, without tangible effects for tourism.

- Industrial wastelands have been cleaned, enabling new investments, and industry zones have been renewed thanks to EU money.

- In Lille some new industries (e.g. ICTs) or services were attracted, whereas Valenciennes received strong impulses in the car assembly industry.

- Transport infrastructure has been developed, and in the Calais area, some secondary effects from Chunnel and new highways can be measured.

- Urban and rural renewal has been concrete, and contributed to cohesion.

- Results from R&D policies can’t be measured in the short run, but innovation transfer to industry remains weak.

- Interregional cooperation has improved between NPDC and Belgium, but remains still superficial, whereas cooperation with British partners has not left the virtual stage.

The short-term results of the programme remain below expectations: the results for GDP growth and income were generally modest. Unemployment improved, but generally the gap of 3 to 4 points remained. The weaker municipalities have received more support than the stronger communes, but financial situation continues to limit their policy choices. The objective one area has become a ‘phasing out’ area, whereas objective 2 zones remain important.

Outcomes might have been more tangible and resulted in better impact if programmes would have been prepared and implemented in a flexible and open concept. Ex-ante analysis was weak, and a clear programme concept was missing: measures were focusing quantitative development rather than a qualitative. State aid was up to the end of the 1994-1999 programming period focusing industries in decline, instead of promising service sectors. Up to the end of the period, anticipation was nearly absent and strategy was defensive, whereas local policy makers and civil society were not involved in preparation and implementation. Programme management, monitoring and coherence between EU programmes and state/region planning have improved for the 2000-2006 period.

Some policies from the past might have reverse results, although probably this will remain within reasonable limits. Transport has increased as a by-product from road infrastructure, and has undeniable negative environmental effects. Even in the actual programming period, negative environmental results can’t be excluded, as the effects between all measures and environment have not sufficiently been analysed. R&D policies had partly negative results for employment. Agricultural policy has not been marked by investment in future-oriented, diversified and sustainable agriculture. Some distortions on competitiveness are the results of unfocused project selection. EU policy has created also distortions in competitiveness: massive aid for objective one zones in Hainaut (Belgium) and the objective one area inside of NPDC have influenced investment plans of private industries.


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8 RECOMMENDATIONS

Programmes and measures seem to be too dispersed and too inflexible to have clear impacts. A concentration of community policies on fewer measures, carried out in a flexible framework, allowing for adjustment on changing needs, would probably enable regional administrations to focus more on impact of policies than on consumption of programme budgets.

Coherence between community policies and regional policies seem to have improved throughout the last programming period. However, each policy is still seen to much as a stand-alone policy, and the internal coherence, nor the sustainability of policies is guaranteed. Environmental and employment effects of each measure should be appreciated ex-ante and during programme implementation. If a programme measure would not perform against employment or environmental indicators, it should not be receivable.

In depth cooperation between different administrations and public-private partnerships should be a condition for European funding. Bureaucratic deadweight should be reduced to a minimum.

The preparation process of a new programme, should involve local constituencies and private partners to a larger degree. The programme should have a clear, coherent and anticipative development concept, enabling active participation form civil society in implementation, monitoring and evaluation.


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Commission européenne, Résumé du DOCUP Nord Pas de Calais – Objectif 2

Conseil Régional du Nord-Pas-de-Calais: Schéma Régional d’Aménagement et de Développement du Territoire, Objectif 2020 – Phase prospective, juillet 2002

Contrat de Plan État -Région 2000/2006

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Délégation interministérielle de la Ville : Le programme Français de rénovation urbaine, 2000-2006

DIREN NPDC : Financement dans le cadre de la révision des DOCUP Objectifs 1 et 2, mars 2003

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DRAM/DIDAM Boulogne : Intervention de l’IFOP et du PIC PESCA NPDC, Rapport de clôture 1994-1999

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INSEE Nord-Pas-de-Calais : Création d’entreprises, territoires et emploi, octobre 2002

INSEE Nord-Pas-de-Calais : Douze ans de chômage, mars 2003

INSEE Nord-Pas-de-Calais : Le littoral à l’heure du transmanche, septembre 1999

INSEE Nord-Pas-de-Calais : Le recensement agricole 2000, août 2002

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Préfecture de la Région Nord-¨Pas-de-Calais (SGAR) – Programme Objectif 1 – Période 1994-1999 – Rapport de clôture, 02/2003

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List of inteviewed key informants

- M. Bloc – Secrétariat général pour les affaires régionales – Aménagement du territoire

- M. Dehoux, member of national Parliament (representing Fourmies – Trélon, part of the objective 1 area

- M Lahousse- Secrétariat général pour les affaires régionales- Infrastructures, transports, ports

- Mme Devulder -Secrétariat général pour les affaires régionales – programmation et suivi des programmes régionaux

- M. Flament - Secrétariat général pour les affaires régionales – Directeur des études et de l’évaluation

- Mme Tacquet - Secrétariat général pour les affaires régionales – Chef du bureau des affaires européennes

- M. Buron - Direction Départementale de l’Agriculture du Département Pas-de-Calais

- M. Fardelle Direction Départementale de l’Agriculture du Département du Nord

- M Alix, Chambre régionale de l’Agriculture du NPDC – service d’études


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FRANCE:

REGION: BRETAGNE

ELABORATION: AUTEURS : Vincent LAMANDE (Dir.), Alain LAURENT, Corinne MIGNON, Olivia THOMAS DU:

Centre de Droit et d’Economie de la Mer (CEDEM) Université de Bretagne Occidentale FRANCE


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ANALYSE DE L’IMPACT DES POLITIQUES COMMUNAUTAIRES

SUR LA COHESION REGIONALE ETUDE DE CAS REGIONAL DU BRETAGNE. FRANCE

RÉSUMÉ DE L’ETUDE

Contexte socio-economique de la Bretagne

La Bretagne est une région périphérique dont la population est en augmentation régulière mais vieillissante. La région possède une forte spécialisation dans un nombre limité de secteurs, souvent en crise ou en déclin. Elle connaît des problèmes de reconversion industrielle et pourrait être confrontée à la reconversion d’une partie des effectifs employés dans l’agriculture et les industries agro-alimentaires. La Bretagne possède néanmoins un potentiel de croissance de long terme malgré un certain exode des jeunes, grâce à la qualité de la formation de la main d’œuvre, à l’importance des activités de recherche et développement, et à la présence de pôles d’excellence dans des secteurs de haute technologie (biotechnologies, télécommunications, pôle mer). Au total, on observe une convergence de la région vers la moyenne nationale qui ne doit cependant pas masquer la permanence d’une divergence au niveau infra-régional.

Politiques Communataires en Bretagne

La Bretagne reçoit l’équivalent de 1% du PIB régional grâce aux transferts communautaires (fonds structurels et PAC). Les actions structurelles bénéficient aux trois-quarts du territoire breton (nouvel Objectif 2). Leur pérennité dépend des conséquences de l’élargissement aux dix pays candidats sur la politique régionale. De même, la Bretagne, première région agricole française en termes de production agricole et de pêche débarquée, et qui abrite un réseau dense d’industries agro-alimentaires, est fortement dépendante de l’avenir de la politique agricole commune et de la politique commune de la pêche.

Strategie developpees dans le cadre des politiques communautaires

Les vingt dernières années ont connu une intensification des interventions en terme d’aménagement du territoire. Les thématiques et le choix des actions se sont dans l’ensemble étendus, ainsi que le nombre et la diversité des acteurs.

Les actions stratégiques pour préparer à la déclinaison des programmes communautaires ont été conduites dans les régions en impliquant de nombreux partenaires. Cela a permis:

- Des démarches concertées accrues dans la définition des objectifs qui ont débouché sur des priorités mieux partagées;


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- De tirer parti des nouvelles définitions du zonage pour rendre la majeure partie de la Bretagne éligible en profitant du dispositif de soutien transitoire;

- D’impliquer certains organismes instructeurs dans un véritable accompagnement de projet.

La règle du dégagement d’office transforme profondément le fonctionnement des fonds structurels, mais aussi leur objectif. D’un objectif de développement on passe à un objectif de consommation.

Coordination des politiques communautaires

On ne voit pas en quoi les politiques communautaires sont articulées les unes aux autres malgré les efforts de mise en relation de la stratégie régionale de développement énoncée par le DOCUP et les instruments de planification nationaux (contrat de Plan Etat-Région, Plans de Développement Rural National et Régional, Plan d’action nationale pour l’emploi) ou communautaire (lignes directrices de l’action structurelle énoncées par la Commission, Stratégie européenne pour l’emploi). Il semble que l’on conserve une approche verticale des problèmes, malgré les incantations communautaires : l’approche transversale passe par des mesures qui ne sont pas à la hauteur des enjeux (mesures agri environnementales de la PAC) ou dont l’application rencontre une certaine résistance sur le terrain (programmes «Bretagne eau pure»). Ainsi les politiques sectorielles n’ont pas une préoccupation suffisante d’enjeux plus globaux et, à l’occasion, elles s’appuient sur les politiques horizontales pour pallier leurs carences, voire leurs conséquences négatives.

Gouvernance

La Commission Européenne impose l’évaluation des projets (ex-ante, ex-post, comité régional d’évaluation, etc). La Bretagne était à ce niveau également précurseur puisqu’elle avait déjà mis en place de telles pratiques dans les années 90. Dans les faits cependant, le fonctionnement de l’évaluation est difficile à mettre en œuvre, largement du fait de la réticence des acteurs à se faire évaluer.

La Commission Européenne a poussé à un partenariat plus fort entre les collectivités. C’est un élément positif. En Bretagne, celui-ci existait déjà, mais il est aujourd’hui plus formalisé notamment par l’intermédiaire des comités de suivi.

La multiplicité des acteurs souhaitant intervenir sur un dossier correspond à une volonté légitime d’être présents sur le terrain. Cependant, de nombreux acteurs reprochent l’affichage politique qui prévaut sur les décisions stratégiques de développement. De plus, le co-financement rallonge les temps d’instruction d’un dossier et alourdit son suivi.

Une grande innovation en matière de simplification, sous certaines réserves, semble être la subvention globale confiant à une agence nationale ou une Collectivité Territoriale la gestion d’une partie des fonds structurels utilisés dans son


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domaine d’intervention et permettant ainsi de mieux distinguer concertation politique et répartition des tâches opérationnelles.

Mise en Ceuvre

Dans leur mise en oeuvre, les générations successives de fonds structurels ont été perçues comme des mesures complexes à solliciter de la part des acteurs de terrain. Cette lourdeur entraîne selon les fonds une désaffection de leur part.

Cette lourdeur est renforcée par une faible articulation opérationnelle entre le CPER et le DOCUP (procédures et délais de mise en œuvre, contrôle financier supplémentaire, dysfonctionnements).

Les fonds structurels sont souvent perçus comme des mesures de saupoudrage. De nombreux projets financés au titre du DOCUP sont modestes en coût moyen et souvent qualifiés de «peu structurants et très consommateurs de temps» dans la phase d’instruction.

La nouvelle programmation des fonds structurels 2000-2006 a été accompagnée d’une modification des règles de suivi des dossiers et d’une recentralisation au niveau régional des enveloppes budgétaires et de la sélection des dossiers. Ceci participe au sentiment de déconnexion entre les stratégies énoncées et leur mise en œuvre. Sous couvert d'une recherche d’efficacité accrue, il y a eu concentration des moyens afin de raccourcir les délais de mise en œuvre. Cependant, la capacité des services à gérer les dossiers a été surestimée et dans les faits n’a pas été accompagnée de moyens supplémentaires. Ceci a contribué au retard et accru le risque de dégagement d’office. La tendance d’une logique d’appels à projet que l’on essaye de faire correspondre à une mesure d’intervention communautaire s’est en conséquence accrue.

Depuis le cheminement de Berlin, les Etats sont confrontés au risque de dégagement d’office des crédits non consommés. Le Gouvernement français a pris en 2002 des mesures de simplification de la gestion des fonds structurels. Cela semble cependant entraîner un changement notable de logique de consommation des fonds structurels. La volonté d’éviter le dégagement d’office est souvent traduite dans les faits par une nécessité de consommation «à tout prix».

Impact

Malgré une couverture relativement large, l’impact des fonds structurels est mitigé : ils jouent le rôle d’amortisseur de crise sans parvenir à susciter d’effets de rattrapage. La PAC a conforté le modèle productiviste breton, lequel pourrait bien être victime des adaptations successives de cette politique. L’agriculture intensive a des effets négatifs sur d’autres secteurs d’activité, comme le tourisme, l’aquaculture, voire la pêche.

Bien que difficile à mesurer, l’impact des fonds structurels semble indéniable sur la richesse d’une région et/ou les revenus de sa population.


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L’impact varie fortement d’une programmation à l’autre d’une zone géographique à l’autre (zonage différent, mesures ciblées versus saupoudrage), mais dans l’ensemble certains bassins d’emploi ont plus largement bénéficié des fonds que d’autres (Lorient, Brest par exemple), grâce à une plus grande concentration ou à la mise en œuvre d’investissements structurants.

La culture de l’évaluation au sein des administrations françaises est en émergence. Le système d’évaluation des impacts est donc largement défaillant. S’il apparaît possible de mesurer l’impact d’un projet individuel, se pose la question des possibilités d’agrégation et de méthodologie d’étude de l’impact.

La difficulté de travail en réseau des différents acteurs limite la capacité d’évaluation des politiques communautaires, même si la gestion des fonds structurels conduit progressivement à des transformations des pratiques de travail et à l’amélioration de la transversalité.


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INDEX

1 CONDITIONS D’EXERCICE DE L’ETUDE LE CHOIX DE LA MÉTHODE ORGANISATION DU TRAVAIL

2 CONTEXTE ÉCONOMIQUE ET SOCIAL DE LA BRETAGNE CARACTÉRISTIQUES SOCIO-ÉCONOMIQUES: LA BRETAGNE QUI GAGNE DÉVELOPPEMENT INFRARÉGIONAL HÉTÉRONGÈNE PRINCIPAUX FACTEURS COMPÉTITIFS DE LA BRETAGNE PRINCIPAUX ENJEUX POUR LA BRETAGNE

3 LES POLITIQUES COMMUNAUTAIRES EN BRETAGNE LA POLITIQUE RÉGIONALE LA POLITIQUE RÉGIONALE LA POLITIQUE AGRICOLE COMMUNE (PAC) CONCLUSION

4 IMPACT DES POLITIQUES COMMUNAUTAIRES EN BRETAGNE RÉSULTAT DES PRINCIPALES POLITIQUES COMMUNAUTAIRES EN BRETAGNE RÉCAPITULATIF DE L’IMPACT DES PRINCIPALES POLITIQUES COMMUNAUTAIRES EN BRETAGNE

5 COOORDINATION DES POLITIQUES COMMUNAUTAIRES EN BRETAGNE

LA POLITIQUE DES TRANSPORTS LA POLITIQUE DE L’ENVIRONNEMENT LA POLITIQUE COMMUNE DE LA PÊCHE (PCP) LA POLITIQUE AGRICOLE COMMUNE (PAC) CONCLUSION

6 GOUVERNANCE DES POLITIQUES COMMUNAUTAIRES EN BRETAGNE

PARTENARIAT ET DÉMARCHE STRATÉGIQUE DÉCENTRALISATION TRANSPARENCE

7 RECOMMANDATIONS POUR L’ACTION COMMUNAUTAIRE

BIBLIOGRAPHIE

APPENDICE

Liste des personnes inteviewées


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Liste des tableaux, encadres et graphiques dans ANNEXE II

Liste des tableaux et graphiques

L'économie bretonne en quelques chiffres

Produit intérieur brut par région (PIB) à prix courants

Produits Intérieurs Bruts Régionaux (PIBR) en valeur en millions d'euros

Valeur ajoutée brute par secteur d'activité à prix courants 2001 (et %)

Tableau d'honneur

Fonds structurels en Bretagne 1994-1999: répartition (en millions d’€)

Objectif 2 & dispositif transitoire 2000-2006: répartition (en millions d’€)

Objectif 2 & dispositif transitoire 2000-2006: répartition zone nominale & transitoire (en millions d’€)

Fonds structurels: Comparaisons 1994-2006 (en millions d’euros)

Tableau financier général indicatif FEOGA-garantie

Maquette finacière par axe


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1 CONDITIONS D’EXERCICE DE L’ETUDE

La Commission Européenne doit produire à la fin de l’année son troisième rapport de cohésion sociale. Un élément important consiste en l’analyse de l’impact des politiques communautaires sur la cohésion économique et sociale des régions.

Dans ce cadre, un projet vient d’être lancé par la Commission, sur l’analyse de l’impact des politiques communautaires sur la cohésion « An analysis of the impact of community policies on regional cohesion » (2002/S 132-102931). Celui-ci a pour objectif l’analyse de 28 régions européennes dont la Bretagne fait partie.

Vincent Lamande a été désigné expert pour la Bretagne sous le contrôle de LABOUR ASOCIADOS SLL Consultoria Social, Laboral e Internacional Madrid, société en charge de toute l’étude. Celui-ci est Directeur du service valorisation de la recherche à l’UBO de Brest et également économiste, intervenant notamment dans le champ du développement régional. Il mène l’étude en binôme avec Alain Laurent, expert sur les questions européennes, enseignant chercheur à l’Université Pierre Mendès France de Grenoble et Responsable du 1er cycle économie gestion de l’UFR Sciences économiques. Deux étudiantes de la Maîtrise de Sciences et Techniques, juristes et économistes trilingue, de l’Université de Grenoble ont été associées à la production de cette étude dans le cadre de leur formation. Elles ont été accueillies au CEDEM, Centre de Droit et d’Economie de la Mer. Que Denis Bailly, enseignant chercheur qui a permis que leur accueil puisse se dérouler dans les meilleures conditions, en soit remercié. Celle-ci aura été l’occasion d’une convention de stage et le lieu d’une collaboration entre l’université de Bretagne Occidentale et l’Université Pierre Mendès France.

L’objectif principal de cette étude est de rendre plus claires les politiques et leurs interactions, dans le but d’améliorer l’efficacité des interventions à l’échelle communautaire, en s’appuyant sur l’approche et les résultats des rapports précédents (Premier et Second rapports sur la cohésion économique et sociale), et en les élargissant afin de prendre en compte les récentes évolutions de ces politiques.

En résumé, le but de cette étude est d’analyser la contribution des politiques communautaires à la cohésion en terme :

a) D’impact sur:

La richesse créée dans la région, le revenu, et en général, la convergence (s’il y en a une);

La cohésion sociale et l’amélioration de la qualité de vie, comme d’autres effets créés par l’application des politiques communautaires qui ne sont pas directement liées à la convergence.

b) La coordination dans la mise en œuvre des politiques communautaires et, en particulier, entre celles-ci et la politique structurelle.

c) La dimension de gouvernance.

LE CHOIX DE LA MÉTHODE

Une partie de l’étude est axée sur l’analyse qualitative et quantitative des informations existantes. Au-delà, une large part est laissée à la consultation des acteurs socio-économiques concernés par les fonds structurels.


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Les entretiens sont organisés selon trois aspects intimement liés mais néanmoins distincts pour la structuration des interviews:

- La mise en œuvre des politiques structurelles et les aspects liés à leur coordination.

- La gouvernance et en particulier les bonnes pratiques mises en œuvre.

- L’impact des politiques sur la cohésion.

Les entretiens ont été non directifs. Etant donné l’ampleur des questions à couvrir, il a été intéressant de disposer de supports écrits (documents de travail, évaluations, etc.…) et d’organiser une restitution la plus fidèle des propos qui ont été tenus. Une heure trente d’entretien ont dans l’ensemble été nécessaires, mais la durée de l’entretien a bien évidemment varié selon les disponibilités des interviewés.

ORGANISATION DU TRAVAIL

Le principal du travail a consisté à rassembler la plupart des travaux existant quant à l’évaluation des politiques communautaires. Des entretiens ont également été organisés afin recueillir l’opinion des acteurs économiques et institutionnels sur ce sujet. Le Secrétariat Général pour les Affaires Régionales, organe de la Préfecture de Région en charge de la gestion des Fonds structurels a d’ailleurs joué un rôle central pour la mise en œuvre de la démarche.

Les délais extrêmement brefs (3 mois) dans lesquels il a fallu réaliser l’étude ont sans aucun doute limité la capacité de traitement d’un tel sujet.

Le travail a une double difficulté:

- Il essaye de s’inscrire dans le temps long, c’est-à-dire depuis 1989 jusqu’à nos jours. Balayer une telle période est déjà une gageure en soi.

- La difficulté est encore accrue par le champ d’investigation, puisqu’il ne concerne pas uniquement les politiques structurelles en Bretagne, pourtant un sujet en tant que tel. Il s’intéresse à toutes les formes de politiques communautaires d’importance pour la région Bretagne.

Nous avons fait face à de nombreuses difficultés que nous ne listerons pas toutes. Les plus importantes sont:

- L’absence de coordination du travail avec les autres experts nationaux, en particulier français (2 autres régions étaient concernées, i.e. le Limousin et le Nord Pas de Calais) afin de confronter nos méthodes, nos conclusions, voire de nos interrogations pour lesquelles une confrontation eut été nécessaire et des itérations eurent été fructueuses.

- La période était peu propice à la rencontre d’interlocuteurs concernant les fonds structurels du fait d’un calendrier chargé (évaluation à mi-parcours),

- La multitude des sources d’informations à collecter dans les institutions en charge de l’instruction des données. Aucun organisme ne dispose de l’ensemble des informations nécessaires au traitement d’un tel sujet, ni sur la période recherchée, ni dans tous les champs.

- D’un point de vue méthodologique, il n’existe pas de méthode univoque permettant d’objectiver le ou les impacts possibles des politiques mises en œuvre,

- En admettant qu’il soit possible d’évaluer l’impact de telle ou telle mesure, il est difficile de déterminer la part européenne puisque dans la plupart des


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interventions, l’Europe n’intervient qu’au titre de co-financeur. De plus, il est impossible à priori de déterminer si, sans fonds européens, un autre plan de financement n’aurait pas pu être monté, mobilisant d’autres crédits.

- Il existe également une véritable difficulté de construire des ponts entre le niveau d’analyse micro (celui du projet) et des dynamiques plus large (macroéconomiques). La question des possibilités d’agrégation se pose tout autant que celle de la méthodologie d’étude de l’impact, mais aussi celle des différences entre les indicateurs pertinents selon les échelles d’observation (temporelle et géographique).

- Dernière observation, et non des moindres, il est illusoire de croire que les évaluateurs nationaux puissent combler, sans moyens adaptés, les lacunes d’un système d’évaluation des projets encore en émergence dans la plupart des régions françaises, sinon européennes.

En résumé, il y a un réel besoin de mener une évaluation approfondie bien au delà de cette première approche utile, mais cependant limitée.

2 CONTEXTE ÉCONOMIQUE ET SOCIAL DE LA BRETAGNE

Cette partie est composée de cinq sections qui retracent l’évolution économique et sociale de la Bretagne au cours des vingt dernières années : Caractéristiques socio-économiques, aspects démographiques, organisation du territoire, éducation et marché du travail, et enfin les disparités infra-régionales. Cette analyse est complétée par une analyse expliquant les principaux facteurs de compétitivité de la Bretagne. Cette partie se conclut par un traitement des enjeux à venir et des défis à relever.

CARACTÉRISTIQUES SOCIO-ÉCONOMIQUES: LA BRETAGNE QUI GAGNE

De 1982 à 1996, la croissance annuelle moyenne du PIB breton a été de 2,1% contre 1, 9% au niveau national. Cette évolution résulte en particulier de la hausse soutenue de la valeur ajoutée dans l'industrie, mais aussi de celle des services marchands et non marchands. La Bretagne possède une forte spécificité agro-alimentaire. En effet, l'agriculture contribue pour 9,3% à la valeur ajoutée régionale (4,3 pour l'ensemble national), tandis que les industries agro-alimentaires représentent plus de 30% de la valeur ajoutée industrielle bretonne (1,7% au niveau de la France).


2,9 millions d'habitants - 5% de la population française

27 200 km2 - 18 zones d'emploi - 5% du territoire français

10 560 entreprises de 10 salariés et plus

14ème région pour le PIB par habitant

2,4% des exportations françaises

production annuelle de 130 000 tonnes de poissons et crustacés

1,24 million de personnes travaillent en Bretagne

Source: Conseil Régional


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Produit intérieur brut par région (PIB) à prix courants

Par habitant (euro) Par emploi 2001

Total

(millions d'euro)

Bretagne 20 779 51 890 61 213

Limousin 19 630 49 026 13 942

Nord-Pas-de-Calais 19 278 54 354 77 264

France 24 032 59 470 1 463 722

Sources : INSEE - Comptes régionaux

Depuis 1990, la Bretagne bénéficie d’une croissance légèrement supérieur au niveau national. En 2002, le Produit Intérieur Brut de la Bretagne représente 4,2% de celui de la France entière, la Bretagne se place ainsi au 6ème rang des régions françaises. Même si la Bretagne a connu une croissance plus soutenue que la moyenne des régions françaises, cette amélioration ne semble en aucune manière suffisante pour renforcer la position de la Bretagne vis-à-vis des régions françaises les plus dynamiques.

En ce qui concerne la position de la Bretagne par rapport à la moyenne des régions européennes, non seulement la Bretagne est en deçà de la moyenne européenne, mais l’écart n’a cessé de croître depuis les années 1980. La Bretagne a ainsi vu chuter son PIB/habitant en SPA de 88% à 83% de la moyenne européenne, tendance qu’elle partage d’ailleurs avec les autres régions françaises.


35.000

40.000

45.000

50.000

55.000

60.000

65.000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

PIB

Bre

tagn

e M

€

900.000

1.000.000

1.100.000

1.200.000

1.300.000

1.400.000

1.500.000

1.600.000PI

B M

étro

pole

M e

uros

Bretagne

Métropole

Source : INSEE – délégation régionale


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Valeur ajoutée brute par secteur d'activité à prix courants 2001 (et %)

Bretagne France métropolitaine

Agriculture (en %) 6,0 2,8

Industrie (en %) 18,8 20,3

Construction (en %) 6,2 4,6

Services principalement marchands (en %) 45,7 52,4

Services administrés (en %) 23,3 19,9

Valeur ajoutée brute totale (millions d'euro) 56 450 1 328 827

Source : INSEE - Comptes régionaux

L'économie bretonne compte 6 secteurs clés :

- Agro-alimentaire : premier secteur industriel breton, l'agro-alimentaire représente 33,6% des emplois en Bretagne (61700). Les activités dominantes sont la transformation de viande et la salaison, mais aussi la biscuiterie, les conserves de poisson, les plats cuisinés.

- Industrie automobile : ce secteur emploie 23200 personnes. Dans le sillage de Citroën, premier employeur breton (10680 salariés), équipementiers et sous-traitants se sont développés.

- Télécoms : la Bretagne est la première région française à se doter d'un réseau de services à haut débit. Cette autoroute de l'information entraîne, dans la révolution technologique, sept communautés d'intérêt général : l'enseignement supérieur et la recherche, la médecine hospitalière, la formation continue, le tourisme, l'enseignement scolaire, les collectivités locales et la culture. Ces communautés ont accès, pour la première fois, aux meilleurs prix, à des moyens d'information, de communication et de formation révolutionnaires par leur rapidité et leur qualité.

- Industrie navale : avec la présence à Brest (4620 emplois) et Lorient (2360 emplois) de la Direction des Constructions Navales, la Bretagne est la région française la plus étroitement liée à l'industrie de l'armement, secteur confronté aujourd'hui à de profondes mutations.

- Pêche : avec une production annuelle de 130000 tonnes de poissons frais et crustacés, la Bretagne est la première région française pour la valeur des produits débarqués. Les quartiers de Lorient, Concarneau et le Guilvinec occupent les premiers rangs des ports de pêche derrière Boulogne sur Mer. La Bretagne assure, avec 22000 tonnes de moules, plus du quart de la production nationale, et avec 42400 tonnes d'huîtres creuses et 1300 tonnes d'huîtres plates respectivement 29% et 98% de la production nationale. Les 50000 tonnes d'algues récoltées le long des côtes bretonnes pour l'industrie des engrais, l'agro-alimentaire et la cosmétique, représentent 97% de la production française.

- Agriculture : dans ce secteur, la Bretagne est la première région française pour la production : 57% de la production porcine, 40% de la production de volailles, 20% de la production laitière, 15% de la production bovine, 72% de la production de choux-fleurs et 75% de la production d'artichauts.


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Tableau d'honneur

La Bretagne est la :

1ère région française pour la production agricole,

1ère région française pour la pêche (valeur des produits débarqués),

1ère région française pour le taux de réussite aux baccalauréats général

2ème région française pour le niveau de qualification des jeunes sortant dusystème éducatif,

2ème région touristique française, la Bretagne accueille chaque année 12millions de touristes,

La Bretagne est un des principaux pôles français dans le secteur destélécommunications, de l'automobile et de la construction navale.

Source: Conseil Régional

DÉVELOPPEMENT INFRARÉGIONAL HÉTÉRONGÈNE

La région Bretagne connaît depuis plusieurs années un développement hétérogène qui profite plus à la côte Sud qu'à la côte Nord, plus aux zones urbaines qu'aux zones rurales, et enfin plus à l'Est qu'à la Bretagne occidentale. Le croisement de ces trois critères fait apparaître deux axes de forte croissance. Le premier à l'Est regroupe les zones d'emploi de Saint-Malo, Rennes et Vitré et le second, situé au Sud-Est, est constitué des zones d'emploi de Vannes et d'Auray. Le dynamisme de ces deux pôles explique que la partie la plus orientale (Est et Sud-Est) de la Bretagne a été exclue du zonage Objectif 2.

- La côte Nord (de Dinan à Brest) est confrontée à la fois à une érosion démographique et aux difficultés d'industries ou de secteurs d'activité dépendant d'évolutions économiques rapides nationales ou internationales (Industries de Défense, Industries agroalimentaires, Pêche, Agriculture, etc.). Les activités alternatives amenées grâce à un travail de transposition des métiers de la défense demeurent des solutions fragiles.

- Au Sud, la Cornouaille subit encore les conséquences de la crise des activités liées à la pêche et la zone de Lorient pâtit de l'important recul de la construction navale et des industries militaires.

- La Bretagne intérieure, traditionnellement axée sur la valorisation des produits agricoles, ne se remet pas des conséquences des crises agricoles dues à l'ouverture des marchés et les crises de surproduction. Les emplois perdus dans ce secteur d'activité ne sont pas compensés par le développement d'autres domaines : la population active choisit souvent d'émigrer et la zone tend encore à se dépeupler et à vieillir

- Enfin les bassins d'emploi de Quimper au sud-ouest, de Dinan au centre-nord et de Fougères au nord-est souffrent, pour des raisons différentes, d'une atonie du développement qui interpelle leur capacité à se renouveler. Ainsi si la Cornouailles et le Cap pâtissent des effets de la crise de la pêche, Fougères et Dinan doivent faire face à un enjeu d'adaptation d'un tissu industriel composé de petites unités en tenant compte d'un secteur tertiaire structurellement sous densitaire.


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La Bretagne ne connaît pas un développement univoque à l'ensemble de son territoire. Si des pôles de forte croissance peuvent être détectés dans le bassin de Rennes ou de Vannes par exemple, une telle situation ne peut être généralisée à l'ensemble de la région. Ces différences recouvrent une opposition entre l'intérieur de la région et son littoral, entre sa partie occidentale et sa partie orientale située sur des flux d'échanges plus porteurs.

PRINCIPAUX FACTEURS COMPÉTITIFS DE LA BRETAGNE

Au sortir de la seconde guerre mondiale, la Bretagne souffrait d’un retard industriel, caractérisé par une prédominance du secteur agricole qui représentait 58,8% des actifs, alors que la moyenne française s’élevait à 36,5%. Si la Bretagne a atteint son niveau de développement actuel, cela a été grâce à une mobilisation globale des acteurs : une volonté régionale collective, un fort soutien de l’Etat et le rôle déterminant des politiques structurelles européennes.

Au 21ème siècle, le développement de la Bretagne se trouve dans un nouveau contexte : la globalisation des économies est croissante, la transformation des processus de production est continue, les produits sont sans cesse renouvelés, les normes et habitudes de consommation évoluent, à mesure que se posent de nouveaux problèmes environnementaux.

Le développement régional est centré autour de trois éléments que sont le niveau d’ouverture internationale, le renforcement de la compétitivité et l’accroissement de l’attractivité.

L’Europe demeure le principal partenaire de la Bretagne en absorbant plus des trois quarts des exports régionaux. Son premier client est le Royaume-Uni qui représente 16,4% des ventes bretonnes, devant l’Allemagne et l’Espagne. A noter également qu’en 1998, la Bretagne faisait partie des 9 régions françaises dont plus de 1,5% du total des échanges se faisait avec les pays d’Europe centrale et orientale. La majorité des importations de la Bretagne viennent également d’Europe, à hauteur de 60,7% des imports régionaux pour 2002.

La compétitivité d’une région se mesure en fonction d’indicateurs, révélateurs du potentiel de développement régional. Parmi eux peuvent être cités l’état de la recherche et de l’innovation, le nombre de créations d’entreprises, le niveau de formation de la population ainsi que la compétitivité des secteurs les plus présents au niveau régional.

En ce qui concerne la recherche et l’innovation, la Bretagne dispose d’un bon réseau qui n’est pas récent puisque dès 1974, la région a été l’une des premières collectivités de l’ouest à se préoccuper de recherche. Cette avance explique pourquoi la Bretagne dispose d’un réseau de technopoles parmi les plus denses de France. Elle est la sixième région française pour la recherche publique et la cinquième pour la recherche privée. Les dépenses de recherche et développement s’orientent surtout vers l’électronique, le secteur médical et l’agro-alimentaire, mais aussi les télécommunications, les biotechnologies et le secteur maritime. Si de nombreux secteurs de recherche sont présents, seuls les domaines des télécommunications et de la mer occupent une place privilégiée au plan européen.

La Bretagne se situe au huitième rang des régions françaises pour le total des entreprises créées, au quatrième pour les créations par reprise. Sur longue période, la


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Bretagne n’échappe cependant pas à la tendance nationale de stagnation voire de diminution du nombre de créations d’entreprises.

Outre les indicateurs de compétitivité, le développement d’une région s’analyse également en terme d’attractivité, c’est à dire son aptitude à retenir, fixer et développer ses activités, que ce soit les entreprises ou les populations. L’attractivité actuelle de la Bretagne s’inscrit dans un nouveau contexte marqué par la considération croissante de l’environnement et de possibles désengagements des aides européennes, consécutifs à l’élargissement à l’est.

Globalement, l’image de la Bretagne est diversifiée. Elle est assez bonne à l’étranger mais souvent plus contrastée en France car la région est marquée par une forte identité culturelle et maritime qui peut être considérée comme un attrait ou comme un poids si elle est vue comme traditionaliste, entachée par la régression de ses activités militaires et les pollutions auxquelles elle doit faire face. Elle est également contrastée géographiquement puisque Rennes jouit d’une forte attractivité alors que le centre de la Bretagne doit lutter contre son enclavement.

PRINCIPAUX ENJEUX POUR LA BRETAGNE65

Dans une perspective de long terme, le paysage européen sera marqué par de nombreuses évolutions qui auront des conséquences irréversibles sur la Bretagne.

Premièrement, du point de vue géopolitique, l’Union européenne aura procédé à son élargissement. Deuxièmement, du point de vue social, elle sera caractérisée par une importante génération de retraités avec, là aussi, des impacts sociaux, géographiques et économiques considérables. Dans ce cadre, l’enjeu pour la Bretagne est de réagir efficacement à ces défis afin de surmonter ses handicaps et d’optimiser ses atouts.

Les enjeux bretons s’inscrivent autour de quatre grands défis:

- la mondialisation, qui renforce la concurrence entre les territoires. Cette ouverture internationale est caractérisée au niveau européen par l’élargissement à l’Est qui éloignera encore un peu plus le centre de gravité de l’Union, dont la Bretagne est déjà en partie exclue.

- Les mutations technologiques représentent le second défi. Elles incitent la Bretagne à être et à rester compétitive.

- Ensuite, la démographie et les évolutions sociales laissent entrevoir une population bretonne vieillissante avec des conséquences importantes sur sa répartition géographique.

- Enfin, le quatrième défi est celui du développement durable, qui impose un effort en matière de qualité de l’environnement et de vie en général.

C’est en réponse à ces défis que quatre grandes problématiques se posent pour la Bretagne. La première est celle du positionnement de la région, de son ouverture et de son accessibilité.

La Bretagne n’est pas encore trop marquée par des tendances observées ailleurs : polarisation urbaine, désertification rurale. Toutefois, elle doit répondre à plusieurs objectifs :

65 Pour plus de détails, Conseil régional de Bretagne. «Schéma régional d’aménagement et de développement du territoire :les enjeux pour la Bretagne en 2015 ». Octobre 2002.


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- Un objectif social : permettre à chacun de vivre avec des chances équivalentes, quel que soit son lieu de vie, éviter les effets néfastes des concentrations urbaines ou de la désertification rurale;

- Un objectif économique : assurer une organisation efficace de l’espace, c’est-à-dire tirer parti au mieux des atouts des territoires, permettre aux potentialités locales de s’exprimer ;

- Un objectif environnemental : répondre aux exigences du développement durable sur l’ensemble des territoires.

En d’autres termes, l’enjeu pour elle est de déployer une capacité d’attractivité et de développement endogène qui lui permette de faire face à la concurrence entre territoires. Il s’agit donc de mieux s’insérer dans les échanges internationaux, en particulier dans les réseaux européens, au plan de la production, de la recherche, de l’enseignement, de la formation. De plus, l’accessibilité de la Bretagne dépend non seulement de la qualité de ses moyens de transport, mais aussi de plus en plus du développement des nouvelles technologies de l’information et de la communication, qui contribuent à rapprocher les territoires et ouvrent de nouvelles perspectives de développement.

En matière de transport, les enjeux pour la Bretagne sont nombreux et urgents, avec par exemple la réalisation de la Ligne TGV ouest et de l’interconnexion en Ile-de-France ou encore la mise en œuvre d’alternatives au «tout routier» comme différents modes de transport maritime ou la mise en place d’une stratégie régionale de développement des transports aériens.

Un second défi concerne la compétitivité et la performance régionale face à la mondialisation. En effet, le système économique breton reste peu internationalisé malgré une relative indépendance vis-à-vis de l’extérieur. Afin de mieux l’insérer dans la concurrence internationale, il conviendrait de développer la capacité d’innovation des entreprises et de renforcer le lien entre formation, recherche et production. Le développement de la Bretagne dans ce domaine bénéficierait d’ailleurs d’une coopération interrégionale renforcée. En effet, la recherche et l’innovation sont le fondement de la compétitivité à venir et la Bretagne devra mettre l’accent sur ce domaine qui conditionne son développement économique. Elle vise en outre à recentrer ses industries vers davantage de valeur ajoutée via notamment les services stratégiques haut de gamme aux entreprises.

En matière d’emploi et de ressources humaines, un des enjeux est de préserver la performance actuelle du système scolaire breton grâce à une adaptation permanente de l’offre de formation aux besoins de l’économie.

En ce qui concerne ses compétences sectorielles, l’enjeu pour la Bretagne est de détecter de nouvelles «niches» en se repositionnant de manière plus compétitive dans ses secteurs privilégiés: les télécoms, l’agro-alimentaire et les biotechnologies. Quant aux secteurs «traditionnels» que sont l’agriculture et la pêche, ils doivent s’adapter d’une part aux contraintes réglementaires européennes et d’autre part aux exigences du marché (rôle de la grande distribution, rapport qualité/prix…) tout en restant attractifs auprès des jeunes afin d’assurer l’avenir de la profession. Enfin, un dernier secteur revêt une importance particulière pour la Bretagne: celui du tourisme. L’enjeu consiste en sa valorisation, conciliée avec le développement durable.

D’autres enjeux se présentent à la région en terme d’organisation et d’aménagement du territoire. La position géographique de la Bretagne, en particulier sa pointe occidentale, induit un certain déterminisme qu’il faut sans cesse combattre surtout dans la perspective d’un glissement vers l’Est du centre de gravité de l’Europe. Il s’agit surtout de poursuivre les efforts en matière de communication et de transports afin d’assurer la cohésion de l’espace breton et offrir à tous les territoires les mêmes possibilités de


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développement économique. Territorialement, la Bretagne est marquée par certains déséquilibres, tant entre l’Est et l’Ouest qu’entre le Nord et le Sud ou entre pôles urbains et secteurs ruraux. L’enjeu est donc de préserver l’équilibre face à la polarisation des hommes et des activités, tout en exploitant les avantages des villes. En ce qui concerne la gestion du territoire, la Bretagne dispose d’une avance déterminante dans son organisation en structures intercommunales et en pays.

La dernière problématique renvoie aux enjeux de la solidarité et de la qualité de la vie. Ils sont liés à la démographie et aux tendances lourdes à venir. La Bretagne devra s’adapter au vieillissement de la population en offrant de nouveaux services et plus globalement elle devra répondre à la transformation des modes de vie (augmentation du temps de loisirs…). Ceci induit des enjeux dans le domaine de la santé et du secteur social : la nécessité d’assurer un accès aux soins géographiquement équitable en conciliant pôles de compétence médicale et offre de santé de proximité. De plus, la baisse de la population active forcera la Bretagne à développer sa productivité et à renforcer son attractivité.

La notion de qualité de la vie est un facteur essentiel pour l’attractivité régionale. Il apparaît donc capital que la Bretagne valorise son patrimoine et sa culture en conciliant tradition et modernité. De plus, il existe dans ce domaine de nombreux enjeux liés à l’environnement et aux espaces naturels. Un des objectifs majeurs en Bretagne concerne la reconquête de la qualité de l’eau et la promotion de l’ «éco-développement» à travers, entre autres, la gestion des déchets, la maîtrise de l’énergie ou la promotion des énergies renouvelables. Dans ce cadre, la prévention des pollutions et des catastrophes naturelles, en particulier maritimes, s’inscrit comme un enjeu régional capital, qui nécessiterait d’être mené en collaboration avec le niveau européen.

Tous ces enjeux constituent des orientations possibles pour les politiques communautaires. La section suivante y est consacrée.

3 LES POLITIQUES COMMUNAUTAIRES EN BRETAGNE

Cette section fait le tour des grandes politiques communautaires, en rappelle brièvement les principes constitutifs et les principaux moyens d’action. Pour chacune des politiques, on souligne les champs d’application propres à la Bretagne. Les masses financières en jeu sont sommairement évoquées. Le détail en est donné dans la section 4 de ce rapport, en particulier dans ses aspects financiers.

LA POLITIQUE RÉGIONALE

Le Traité de Rome ne prévoyait pas explicitement de politique régionale à l’échelle de la Communauté. L’action communautaire s’est bornée à une simple coordination des politiques régionales nationales, de façon à éviter la concurrence entre régions, notamment dans l’attraction des investissements directs étrangers. Ce n’est qu’après le premier élargissement que naît une véritable politique régionale communautaire. Sous l’effet de l’approfondissement de la construction européenne, celle-ci s’est peu à peu développée, avant de se transformer radicalement suite à la réforme des fonds structurels de 1988.


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3.1.1 Les grands principes

De la naissance à la Maturité (1975-1999)

La création du Comité des régions et du FEDER en 1975 répond prioritairement au souci de rééquilibrer les dépenses communautaires au bénéfice d’un nouvel Etat membre, la Grande-Bretagne, qui ne tire guère profit des dépenses agricoles, alors que celles-ci représentent les trois-quarts du budget communautaire.

Une nouvelle étape sera franchie avec l’Acte Unique (1987) et la réforme des fonds structurels de 1988. Sous l’effet de la crise économique, qui creuse les disparités régionales, des élargissements aux pays du Sud de l’Europe, qui créent d’importantes disparités de développement entre Etats membres et de l’achèvement du Marché Unique, qui accentue les risques de croissance polarisée, il est décidé une réforme de grande ampleur. Dans le cadre d’une nouvelle politique commune de Cohésion Economique et Sociale, la politique régionale est bouleversée: la redéfinition des objectifs de la politique structurelle s’accompagne d’un effort financier sans précédent (multiplication par deux des dotations structurelles entre 1988 et 1993). De surcroît, la philosophie change également: on passe d’une logique d’aménagement du territoire pour éviter la concentration excessive des activités à la promotion du développement régional, par la valorisation du potentiel de développement des régions. On part de leurs besoins concrets, de leurs capacités propres pour remédier à leurs handicaps spécifiques.

Ensuite, la perspective de l’Union Monétaire et l’accroissement de la concurrence intra-européenne qu’elle suppose, associée à la volonté de faire contrepoids à l’image de «l’Europe des marchands», entraîne un nouveau développement de la politique régionale: les dotations structurelles sont à nouveau doublées sur la période 1994-99 et le Fonds de Cohésion à destination des pays les moins développés de l’UE est créé, afin de renforcer la concentration de l’action structurelle communautaire.

C’est ainsi que la politique régionale en est venue à représenter 35% du budget communautaire en 1999 (contre 6,5% en 1975 et 20% en moyenne entre 1988 et 1993). Cela représente 0,45% du PIB des Quinze. Ce dernier chiffre est la référence qui s’est imposée comme plafond de dépenses au cours de la période de programmation 2000-06.

La Réforme de 1999: Cadre général

De nouveaux objectifs

La période de programmation 2000-2006 est marquée par la réforme des Fonds structurels, avec une simplification de l’architecture réglementaire (un règlement général couvre tous les principes communs des Fonds, des règlements spécifiques portent sur leurs champs d’intervention respectifs) et des objectifs réactualisés (promotion d’une croissance créatrice d’emplois et durable; renforcement de la capacité d’adaptation et d’innovation des régions; lutte contre le chômage par mobilisation de potentiels de croissance supplémentaires et redéploiement des ressources humaines).

Les sept objectifs de la période 1994-97 sont fondus en trois nouveaux objectifs:

- le nouvel Objectif 1 («promouvoir le développement et l’ajustement structurel des régions en retard de développement») regroupe les anciens objectifs 1 et 6.

- le nouvel Objectif 2, qui vise à soutenir la reconversion économique et sociale des zones en difficulté structurelle, regroupe les anciens objectifs 2 et 5b


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- le nouvel Objectif 3 («soutenir l’adaptation et la modernisation des politiques et systèmes d’éducation, de formation et d’emploi») regroupe les anciens objectifs 3 et

La Bretagne n’est pas éligible au nouvel Objectif 1, ne remplissant pas le critère de PIB par tête inférieur à 75% de la moyenne communautaire. Le nouvel Objectif 2, objectif territorialisé, s’appliquera dans certains bassins d’emploi bretons. Le nouvel Objectif 3 s’inscrit dans un cadre national de référence. Les Etats membres doivent prouver l’articulation des actions locales et nationales au titre des objectifs 2 et 3.

La Commission a choisi de concentrer l’essentiel des moyens disponibles (67,7%), tandis que les dotations de l’Objectif 2 représentent 11,5% de l’enveloppe globale, et celles de l’Objectif 3, 20,8%.

Le FEDER et le FSE sont mobilisés dans l’Objectif 2. On retrouve également les contributions de l’IFOP (mesures d’accompagnement de la politique commune de la pêche) et du FEOGA-Garantie (actions structurelles de développement rural). L’Objectif 3 relève pour sa part du financement du FSE.

De nouveaux principes de gestion

La mise en œuvre des Fonds structurels répond à un double souci de simplification et de décentralisation. Pour les objectifs 1 et 2, la Commission Européenne recommande la rédaction d’un seul DOCUP par région NUTS II. Pour l’objectif 3, elle préconise un DOCUP par Etat membre. La Commission Européenne reste garante des priorités stratégiques (détermination des grandes lignes directrices des programmes, approbation des DOCUP), mais la gestion des programmes relève des Etats à travers un partenariat élargi aux autorités régionales et locales, aux partenaires économiques et sociaux et aux autres organismes compétents. Pour chaque programme, les Etats membres désignent une seule autorité de gestion (la Préfecture de Région en Bretagne), qui travaille en collaboration avec le Comité de suivi, responsable de la stratégie régionale et de sa révision éventuelle.

La Réforme de 1999: Le nouvel Objectif 2

De nouvellex directrices

Dans le cadre défini par la réforme de 1999, l’élaboration des programmes pour les régions de l’Objectif 2 ne devra plus être axée, comme dans la programmation précédente, sur l’origine du problème structurel, mais sur les perspectives futures de développement (surmonter la restructuration et promouvoir des structures économiques viables et des emplois concurrentiels à long terme).

Si, dans le choix des investissements, la décentralisation de la gestion des

programmes (voir infra) permet d’envisager une plus grande autonomie des instances locales, les axes généraux de développement des DOCUP devront néanmoins suivre les lignes directrices énoncées par la Commission dans son document d’orientation pour la période de programmation 2000-06. Ces lignes directrices sont les suivantes:

- la création d’emplois, principal défi structurel pour l’Union

- le développement durable et l’égalité des chances (principes horizontaux repris de la programmation précédente)

- la promotion des conditions de base pour la compétitivité des territoires (en dehors des infrastructures de transport de base et du secteur énergétique, pour lesquels la plupart des régions éligibles à l’objectif 2 sont bien équipées, il s’agit de promouvoir l’utilisation du potentiel de la société de l’information, la


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recherche et développement technologique et l’innovation, et, en matière d’environnement, les écoproduits).

- le développement d’entreprises compétitives pour assurer la création d’emplois (soutenir le tissu de PME-PMI locales, les projets des grands groupes à fortes retombées locales).

- la promotion des domaines possédant un potentiel particulier: l’environnement, le tourisme, la culture et l’économie sociale.

De nouveaux critères d’éligibilité

Pour la période 2000-2006, les zones en difficultés structurelles, éligibles à l’objectif 2, sont de quatre types:

- zones industrielles: de niveau NUTS III, elles connaissant un taux de chômage supérieur à la moyenne communautaire; un pourcentage d’emplois industriels supérieurs à la moyenne communautaire; un déclin dans cette catégorie d’emplois.

- zones rurales: elles connaissent alternativement:

- une densité de population inférieure à 100 habitants au km2 ou un taux d’emploi agricole égal ou supérieur au double de la moyenne communautaire

- ou un taux de chômage supérieur à la moyenne communautaire ou une population en diminution

- zones urbaines: elles connaissent alternativement:

un taux de chômage de longue durée supérieur à la moyenne communautaire

un niveau élevé de pauvreté

une situation environnementale particulièrement dégradée

un taux de criminalité élevé

un faible niveau d’éducation de la population

- zones dépendantes de la pêche: dont le taux d’emploi est significatif dans le secteur de la pêche et avec des problèmes de restructuration ayant comme conséquence une baisse significative des emplois dans ce secteur.

- autres zones: l’éligibilité peut s’étendre à d’autres zones, essentiellement à des zones contiguës à celles éligibles à l’Objectif 1 ou aux zones industrielles ou rurales de l’Objectif 2, ou à des zones rurales frappées par le vieillissement ou la diminution de la populations active agricole, ou encore des zones confrontées ou menacées par des problèmes structurels graves ou un chômage élevé suite à la restructuration d’une ou plusieurs activités déterminantes dans les secteurs agricoles, industriels ou des services.

3.1.2 Le champ d’application en Bretagne: L’Objectif 2, Programmation 2000-2006

La Bretagne bénéficie des fonds structurels depuis 1989 au titre du programme européen Morgane I, application spécifique à la Bretagne de l’ex-Objectif 5b. Cette intervention des fonds structurels a été renforcée par une première programmation Objectif 2 (1992-93) qui concernait la zone Tregor - Saint Brieuc.

Ces deux programmes ont été maintenus de façon distincte sur la période 1994-99 :

- le programme Objectif 2 a été étendu aux zones de Lorient et de Brest pour concerner 762000 habitants. Il a mobilisé 564 millions d’euros de dépenses publiques dont 200 au titre des fonds structurels.

- le programme Morgane II (objectif 5b) a concerné 885000 habitants et a mobilisé 637 millions d’€ de dépenses publiques.


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Sur la période 2000-2006, la Bretagne (ou plutôt quelques-uns de ses bassins d’emploi) n’est éligible qu’au nouvel Objectif 2 et bénéficie des dispositions de l’Objectif 3 dans le cadre du plan national qui le gouverne. On présentera la zone éligible bretonne puis un bref descriptif des axes retenus dans la stratégie bretonne, telle qu’exposée dans le DOCUP de la région Bretagne.

La zone éligible en Bretagne

Le zonage objectif 2 et Programme de sorite transitoire, établi en 1999 sur la base des disparités géographiques, démographiques et économiques du territoire breton couvre:

- la zone d’emploi de Fougères

- le littoral des Côtes d’Armor et du Finistère, confronté à une érosion démographique et aux difficultés de ses industries (industries de défense, agroalimentaires)

- la Bretagne intérieure qui souffre des conséquences de la crise agricole (dépeuplement, vieillissement, etc.)

- les îles du Ponant, qui souffrent de leur périphicité

- la Cornouaille qui subit la crise des activités liées à la pêche

- la zone d’emploi de Lorient confrontée au recul de la construction navale et des industries militaires

Ainsi la zone éligible comptait près de 1,86 million d’habitants en 1999, soit 64% de la population bretonne. Elle couvre une surface équivalente à 77% de la région Bretagne. Le montant total des subventions communautaires prévues dans la maquette financière du DOCUP est de 456,7 millions d’€ sur l’ensemble de la période (pour un budget total estimé à 1400,9 millions d’€, concours communautaires, contribution publique nationale et fonds privés confondus).

La Stragégie de Développement retenue en Bretagne

La stratégie bretonne est décrite dans le DOCUP de la région bretagne. Elle se structure en quatre axes (voir annexe à la fin de cette section), qui s’articulent autour:

- des lignes directrices énoncées par la Commission

- du Contrat de Plan Etat-Région (CPER)

- du Plan National d’Action pour l’Emploi, déclinaison française de la Stratégie Européenne pour l’Emploi (Conseil Européen de Luxembourg, 1997)

- du Plan de Développement Rural Régional

- du plan IFOP national

- de la politique environnementale communautaire

Les thématiques retenues en Bretagne sont les suivantes:

- développement économique: accompagnement des secteurs en mutation (agro-alimentaire, électronique, télécommunication et aide à la diversification (diversification des filières agricoles, développement des capacités de recherche et développement).

- développement du tourisme, atout potentiel de la région

- amélioration des infrastructures de transport: on recherche la réduction des temps de transport, l’amélioration de la qualité des dessertes et un maillage territorial plus serré.


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- favoriser la mutation du secteur de la Défense, par un appui aux PME sous-traitantes, un soutien à l’adaptation des personnels, un accompagnement de la réhabilitation des emprises militaires.

- la problématique environnementale concerne les déchetteries et les stations d’épuration, la préservation du patrimoine naturel et surtout la qualité de l’eau

- le développement rural

La stratégie bretonne comporte également un volet territorial (mesure 2.4) qui recouvre l’ensemble des thématiques que l’on vient d’évoquer. Notons enfin que les préoccupations de développement durable et d’égalité des chances sont transversales à l’ensemble des axes d’action retenus dans le DOCUP.

LA POLITIQUE RÉGIONALE

3.1.3 Les grands principes

L’action communautaire a débuté en 1972, avec le premier des quatre Programmes d’Action, marqués par une approche à la fois verticale et sectorielle. Pendant les vingt ans qui ont suivi, la Communauté Européenne a adopté plus de 200 textes réglementaires dont l’objet principal était de limiter la pollution en introduisant des normes minimales en matière de gestion des déchets, de pollution de l’air et de l’eau.

Cette période est marquée par l’entrée en vigueur de l’Acte Unique (1987) qui ajoute un Titre «Environnement» au Traité CEE. La Communauté dispose désormais d’objectifs et de grandes orientations définis sur une base légale. Les grands objectifs sont la protection de l’environnement, la santé humaine et l’utilisation rationnelle des ressources humaines.

La politique de l’environnement devient une politique commune avec le Traité de Maastricht (1992). Le 5ème Programme d’Action pour l’environnement («Vers un développement durable») pose les principes d’une stratégie volontariste pour la période 1992-2000 et marque le début d’une approche horizontale. Il s’agit de prendre en compte toutes les causes de la pollution (industrie, énergie, tourisme, transport, agriculture, etc.) dans l’ensemble des politiques communautaires.

Enfin, l’UE a adopté, en mai 2001, une stratégie de développement durable. Le 6ème Programme d’Action pour l’environnement énonce les priorités de l’UE jusqu’en 2010: le changement climatique, la forêt et la biodiversité, l’environnement et la santé, la gestion des ressources naturelles et des déchets.

Les moyens d’action sont de nature réglementaire (du type directives «eau résiduaires», «oiseaux» ou «nitrates»), technique (e.g. Label écologique, Système communautaire de management environnemental et d’audit) et financière.

En Bretagne, l’effort financier provient essentiellement des fonds FEDER (actions ayant une dimension environnementale au titre du nouvel Objectif 2). L’UE offre des moyens complémentaires comme le programme LIFE, les actions financées par l’Instrument de pré-adhésion (ISPA) dans les pays candidats, et celles financées par le Fonds de Cohésion dans les quatre actuels pays bénéficiaires.


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3.1.4 La politique de l’environnement en Bretagne

Comme partout dans l’UE, le principe de développement durable a été instauré comme logique transversale à toutes les actions menées dans le cadre de la politique régionale.

La qualité de l’environnement en Bretagne est fortement liée aux répercussions négatives des pollutions d’origine agricole, notamment la qualité des eaux. Depuis 1994, l’UE participe au financement du programme «Bretagne eau pure II» visant à réduire la pollution des sols et des rivières par les nitrates. En août 2001, la deuxième directive «nitrates d’origine agricole » entre en application en Bretagne. Le monde professionnel est étroitement associé à ces actions, en particulier depuis la signature, en mai 2001, de la «Charte pour un développement pérenne de l’agriculture, de l’agro-alimentaire en Bretagne, incluant la reconquête de la qualité de l’eau».

Enfin, en décembre 2000, un an après le naufrage de l’Erika, l’UE adopte une série de mesures sur la sécurité maritime (remplacement des pétroliers à simple coque d’ici 2015, création d’une Agence européenne pour la sécurité maritime, etc.).

On voit que la préoccupation environnementale des politiques communautaires est relativement récente (et l’Etat français n’a pas fait preuve d’un zèle excessif lorsqu’il s’est agi de transposer en droit interne les directives «nitrates», «eaux residuaires» ou «déchets»). La période de programmation 1994-99 comportait pourtant déjà, en Bretagne, des volets spécifiquement environnementaux (objectif 5b, mesures 3 et surtout 5 «Préserver le cadre et la qualité de vie») dont le succès a été patent (en termes de programmation), ce qui a conduit à leur reconduction dans le nouvel objectif 2, sur la période 2000-06, sur financement FEOGA-Garantie.

Entre 2000 et 2006, le DOCUP ambitionne d’allouer plus de 10% des crédits européens disponibles en Bretagne à des actions dédiées à la protection de l’environnement. Les mesures les plus importantes prévues par le DOCUP concernent spécifiquement la protection et l’amélioration de l’environnement (axe 2, mesure 2.1), initialement dotée de 16,5 millions d’€ et, compte tenu des résultats insuffisants obtenus dans la période de programmation précédente, l’amélioration de la qualité de l’eau, mesure prioritaire au sein de l’axe 4 («Plan de Développement Rural Régional»), avec plus du tiers des crédits du FEOGA. Il faut ajouter que la CRPE du 3 juillet 2003 a convenu d’abonder davantage les mesures en faveur de l’environnement, étant donné leur succès en termes de programmation.

LA POLITIQUE AGRICOLE COMMUNE (PAC)

La PAC, lancée en 1962, repose sur trois grands piliers:

- l’unicité de marché

- la préférence communautaire

- la solidarité financière (dont l’instrument, le FEOGA sera créé en 1964)

Le système de prix garantis et la protection du marché intérieur portent très vite leurs fruits: on observe une modernisation de l’agriculture européenne, un rattrapage du revenu des agriculteurs et l’apparition des premiers excédents dès la fin des années 60. Depuis, et malgré les correctifs opérés, la PAC est porteuse d’effets pervers:

- le système de prix garantis est très incitatif à la production et conduit à l’apparition d’excédents qui coûtent très cher (garantie des prix, stockage, aides à l’exportation).

- le productivisme est en outre à l’origine de fortes nuisances environnementales


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- la répartition des aides communautaires est très inégalitaire et favorise certaines exploitations (les plus grandes) et certaines régions (vers le Nord de l’Europe communautaire).

- le subventionnement des exportations est source de litiges commerciaux avec les pays tiers dans le cadre du GATT puis de l’OMC et freine le développement de l’agriculture des pays en développement.

Pour contenir la surproduction et la dérive budgétaire, sont progressivement introduits des mécanismes de co-responsabilité impliquant les producteurs, des quotas de production (lait) ou encore un plafonnement de l’évolution des dépenses agricoles.

Il faut attendre 1992 pour assister à une réforme de grande ampleur de la PAC dont la mesure phare est la baisse des prix garantis pour les productions les plus budgétivores, compensée par des aides directes. En 1999, la baisse des prix garantis se poursuit et n’est plus entièrement compensée par les aides directes. En 2003, il est envisagé un plus large découplage des aides directes de la production.

La réforme de 1992 consacre également le développement rural comme l’un des piliers de la PAC. Celle-ci conditionne également le versement des aides directes au respect de pratiques agri-environnementales.

Dans le domaine agricole, la Bretagne est la première région française et elle a développé des filières très productives (porc, lait, aviculture, viande bovine, légumes). L’agriculture et l’industrie agro-alimentaire ont un poids important dans l’économie de la région. L’agriculture emploie 7,7% de la population active bretonne et les IAA représentent un tiers de l’emploi industriel.

La PAC a apporté la modernisation agricole en Bretagne ainsi qu’un afflux de revenus, via le mécanisme des prix garantis, et plus indirectement par les débouchés à l’intérieur du Marché Commun et dans les pays tiers. Aujourd’hui, la PAC constitue une injection de revenu non négligeable dans la région, avec un total d’environ 400 millions € par an.

En Bretagne, les effets négatifs de la PAC semblent exacerbés, en raison des techniques de production dominantes dans la région. Le productivisme se manifeste particulièrement dans la dégradation de la qualité des eaux qui pose des problèmes environnementaux, économiques et sociaux. Ce problème sera traité de manière plus approfondie dans la Section 5 de ce rapport, lorsqu’il sera question des interactions des politiques communautaires en Bretagne.

CONCLUSION

La Bretagne reçoit l’équivalent de 1% du PIB régional grâce aux transferts communautaires (fonds structurels et PAC). Les actions structurelles bénéficient aux trois-quarts du territoire breton (nouvel Objectif 2). Leur pérennité dépend des conséquences de l’élargissement aux dix pays candidats sur la politique régionale. De même, la Bretagne, première région agricole française en termes de production agricole et de pêche débarquée, et qui abrite un réseau dense d’industries agro-alimentaires, est fortement dépendante de l’avenir de la politique agricole commune et de la politique commune de la pêche.


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4 IMPACT DES POLITIQUES COMMUNAUTAIRES EN BRETAGNE

Depuis leur création, les politiques communautaires, notamment les Fonds structurels et le Fonds de cohésion constituent les instruments privilégiés de la politique de cohésion économique et sociale, qui est une priorité de l’Union. Conformément au traité d’Amsterdam, les instruments financiers de l’UE doivent viser simultanément la croissance économique, la cohésion sociale et la protection de l’environnement. Ces politiques visent à renforcer les facteurs structurels qui déterminent la compétitivité et de ce fait le potentiel de croissance des régions moins favorisées. Tentative est faite ici de répondre aux effets qu’ils ont produit sur la région de Bretagne depuis la réforme de fonds structurels de 1988.

La tâche est en fait extrêmement complexe pour plusieurs raisons:

- D’un point de vue méthodologique, il n’existe pas de méthode univoque permettant d’objectiver le ou les impacts possibles des politiques mises en œuvre,

- En admettant qu’il soit possible d’évaluer l’impact de telle ou telle mesure, il est difficile de déterminer la part européenne puisque dans la plupart des interventions, l’Europe n’intervient qu’au titre de co-financeur. De plus, il est impossible à priori de déterminer si, sans fonds européens, un autre plan de financement n’aurait pas pu être monté, mobilisant d’autres crédits.

- Il existe également une véritable difficulté de construire des ponts entre le niveau d’analyse micro (celui du projet) et des dynamiques plus large (macroéconomiques). La question des possibilités d’agrégation se pose tout autant que celle de la méthodologie d’étude de l’impact, mais aussi celle des différences entre les indicateurs pertinents selon les échelles d’observation (temporelle et géographique).

- Dernière observation, et non des moindres, il est illusoire de croire que les évaluateurs nationaux puissent combler, sans moyens adaptés, les lacunes d’un système d’évaluation des projets encore en émergence dans la plupart des régions françaises, sinon européennes.

Principalement, notre analyse souffre du manque de données quantitatives. La mesure des impacts directs et indirects suppose une disponibilité importante des données régionales et de très grandes précautions méthodologiques impliquées par leur utilisation. A l'heure actuelle, la représentation quantitative de la réalité socio-économique des régions ou l'analyse des indicateurs de programmes comme outils de mesure de l'impact de développement est trop aléatoire. En effet, la plupart des programmes à vocation structurelle, au premier rang desquels les politiques communautaires, ne font pas l’objet d’un suivi de gestion permanent permettant de fournir les données nécessaires à une appréciation rapide de leurs impacts, malgré l’existence de la base de données Présage. La culture de l’évaluation au sein des administrations françaises est en émergence. Le système d’évaluation des impacts est donc largement défaillant. S’il apparaît possible de mesurer l’impact d’un projet individuel, se pose la question des possibilités d’agrégation et de méthodologie d’étude de l’impact.

Cette quatrième partie se compose de deux modules:

- Une mise en perspective historique des objectifs et des impacts des politiques communautaires en Bretagne

- Un approfondissement des analyses d'impact territorial de certaines politiques communautaires par rapport à l'objectif de cohésion économique et sociale par le biais d'analyses plus poussées sur plusieurs programmations


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RÉSULTAT DES PRINCIPALES POLITIQUES COMMUNAUTAIRES EN BRETAGNE

La démarche entreprise consiste à agréger les évaluations existantes et dans la mesure du possible rendre les comparaisons compatibles selon les périodes et les différents zonages. Cette démarche a largement été complétée par une série d’entretiens non directifs ayant pour objet de donner un point de vue «subjectif» de l’impact des politiques communautaires de la part des acteurs mêmes du développement, conformément d’ailleurs au termes de référence du présent projet. Dans un premier temps, nous proposons de faire le point sur les aspects financiers des politiques structurelles, puis nous détaillerons les objectifs des différents programmes, pour donner une évaluation générale de l’impact économique et social des politiques communautaires.

4.1.1 Fonds Européens en Bretagne: une grande tradition de soutien financier Européen

Depuis près de trente ans, la Bretagne bénéficie des politiques communautaires de soutien au développement des territoires. Depuis 1975, la région a perçu plus de 1.2 milliards d’euros au titre des fonds structurels et les niveaux sont bien supérieurs si l’on y ajoute les contributions nationales et infranationales, ainsi que les fonds privés mobilisés par ces programmes européens.

D’ailleurs, sur la période 1975-1988, la Bretagne apparaît comme la première région française bénéficiaire à bénéficier des concours européens pour un montant de 308 millions d’euros dont 276 consacrés aux infrastructures. Par la suite, elle devient une région moyenne en termes d’aides européennes, notamment parce qu’elle n’est pas considérée comme une région en retard de développement, elle ne bénéficie donc pas des programmes structurels au nom de l’objectif 1; en effet, en 1988, avec un PIB/hab. de 88.2% de la moyenne communautaire, elle dépasse le seuil d’éligibilité de 75%. Toutefois, dans les années 90, la Bretagne doit faire face à des restructurations industrielles fortes, compte des zones rurales vulnérables, et connaît des problèmes de chômage et d’emploi. Pour la période 1989/1993, la Bretagne aura perçu 200 millions d’euros, montant qui est passé à plus de 700 millions d’euros pour la période 1994-1999. Au-delà des fonds structurels, la Bretagne est également une grande bénéficiaire de la Politique Agricole Commune.

A titre de comparaison, l’aide structurelle de l’Union européenne en Bretagne d’un montant de 700 millions d’euros sur la période 1994-199 représente:

- 0.22% du PIB breton (1998) ;

- le quart du budget de la Région (2000) ;

- 5% du budget de la Région et des quatre départements (2000) ;

- l’intervention de l’Etat en Bretagne (1999) était de 90 fois les Fonds structurels annuels;

Cependant, il faut ajouter les aides provenant de la PAC, ce qui représente alors entre 0.8 et 0.9 point de PIB de dépenses communautaires : le concours est donc significatif. Les aides européennes sont de l’ordre d’un montant annuel de 400 millions d’euros (FEOGA garantie).

Cette aide joue un rôle important pour deux raisons:

- Le principe de partenariat permet de multiplier les interventions structurelles par trois du fait des contreparties nationales et infranationales et des fonds procurés par le secteur public.

- Il y a concentration spatiale des interventions, notamment dans le cas des investissements structurels (environ 60% des fonds concernés).


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Fonds structurels en Bretagne 1994-1999: répartition (en millions d’€)

Coût total

Dont dépense publique nationale

Dont UE Dont privé

Objectif 2 592,5 265,7 208,2 118,6

Objectif 5a 183,3 n.d. 183,3 n.d.

Objectif 5b 505,9 184,6 184,6 136,7

Objectif 3 38,4 n.d. 38,4 0,0

Objectif 4 23,3 n.d. 23,3 0,0

PIC 50,3 18,5 25,6 6,1

dont Leader II 30 14,7 12,9 2,4

dont Konver 13,8 6,3 6,1 1,4

dont Pesca* n.d. n.d. 12,8 2,3

TOTAL 1 393,7

*: Evaluation

n.d.: non déterminé

Source: DOCUP, CESR.

Objectif 2 & dispositif transitoire 2000-2006: répartition (en millions d’€)

Coût total


Dont UE Dont privé

FEDER 1 025,1 432,6 367,0 230,8

FSE 88,1 42,0 42,0 4,1

FEOGA Garantie 277,0 104,0 56,7 116,4

Total 1 390,2 578,6 465,7 351,3

Source: DOCUP, SGAR (données actualisées pour FEDER)

Objectif 2 & dispositif transitoire 2000-2006: répartition zone nominale & transitoire (en millions d’€)

Coût total


Dont UE Dont privé

Objectif 2 953,8 417,4 351,4 184,9

Zone transitoire 159,3 57,2 52,2 50,0

Source: DOCUP

Fonds structurels: Comparaisons 1994-2006 (en millions d’euros)

1994-1999 2000-2006

Zone nominale

Zone nominale

Zone transitoire

Total

FEDER 367 314,8 52,1 366,9

FSE 60 42,0 0 42,0

FEOGA n.d. 56,7 0 56,7

TOTAL 427 465,6

Source: DOCUP, SGAR

Le tableau ci-après de programmation financière indique la répartition prévisionnelle, de 2000 à 2006, des contributions de 56 707 K Euros au titre du FEOGA-Garantie, ainsi que des coûts totaux éligibles à hauteur de 277 043 K Euros.


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Tableau financier général indicatif FEOGA-garantie

PDRR: Plan de développement Rural Régional PDR : Plan de développement Rural DPN: dépense publique nationale

La stratégie retenue par le DOCUP Objectif 2 Bretagne pour la période 2000-2006 s’articule autour des quatre axes suivants:

- Axe 1 : Développer et adapter les compétences des femmes et des hommes (FEDER et FSE)

- Axe 2 : Aménager un territoire équilibré et attractif (FEDER)

- Ase 3 : Améliorer la compétitivité des entreprises et adapter l’économie régionale au contexte économique mondial (FEDER)

- Axe 4 : Plan de Développement Rural Régional (FEOGA-G)

Le montant total de subventions communautaires (FEDER, FSE et FEOGA-Garantie) prévu dans la maquette financière du DOCUP, au titre du Programme Objectif 2 et du


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Programme transitoire de sortie, s’élève, pour la période 2000/2006, à 465,7 millions d’euros (pour un budget total de 1400,9 millions d’euros66) qui se répartissent, par axes et mesures, de façon équilibrée, comparativement aux enjeux régionaux. L’effet de levier des fonds structurels diffère selon les axes: tandis que sur l’axe 1, ils représentent près de 48% de la maquette, pour une part faible des fonds privés, soit 5%, la part des subventions communautaires et des fonds privés s’équilibre sur l’axe 3 (33%), notamment du fait d’une part privée importante sur la mesure 31.

Source: Ernst & Young France (BFA) - 2003

4.1.2 Comparaisons d’objectifs sur les deux dernières programmations

Pour comparer la période qui vient de s’achever, à savoir 1994-1999, à celle qui a commencé, 2000-2006 en Bretagne, il est possible de regrouper les différents programmes européens en trois groupes: le marché du travail, l’adaptation des structures agricoles et de pêche, les zones en difficultés économiques.67

Education, formation et emploi

Le premier groupe concerne principalement le marché du travail : lutte contre le chômage de longue durée, insertion professionnelle des jeunes, intégration des personnes menacées d’exclusion du marché du travail, adaptation des travailleurs. Le volume financier est de 90 millions, soit 13% des interventions européennes en Bretagne sur la période 1994/1999. Pour la période 2000/2006, la dotation annuelle croître d’environ 12% pour la France, donc l’effort national est renforcé.

66 Subventions communautaires, Contribution Publique Nationale et Fonds privés 67 Il n’a pas été possible de prolonger la comparaison sur la période 1989-1993 dans la mesure où le zonage était différent puisque seule la zone de Saint Brieuc était bénéficiaire des fonds structurels.


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Pêche et développement rural

Le second groupe s’attache à l’adaptation des structures agricoles et de la pêche (objectif 5a, Pesca). Ce second groupe mobilise presque 200 millions d’euros, soit environ 28% des interventions totales. Cet objectif est aujourd’hui intégré à la PAC et à la PCP.

Zones Bretonnes en reconversion

Le troisième groupe privilégie la reconversion industrielle et sociale des zones en déclin industriel (objectif 2, Konver pour les industries de défense). Trois zones ont été largement bénéficiaires de cette aide : Trégor-Saint-Brieuc, Brest et Lorient. D’autre part, des actions ont été conduites en vue d’aider à la diversification économique des zones rurales fragiles (objectif 5b et Leader pour le développement rural et du littoral). Les territoires concernés étaient ceux de la Bretagne intérieure et des côtes finistériennes. Ces thématiques ont représenté 415 millions d’euros soit environ 60% des interventions européennes en Bretagne sur la période 1994/1999. Quant au nouveau programme il représente une aide européenne de 460 M d’euros, sans compter Leader + également reconduit.

Ce volet fait l'objet d'un zonage et il ne couvre donc pas toute la région. De 1994 à 1999, les zones objectif 2 et objectif 5b regroupaient ainsi 1,6 millions d’habitants, soit presque les deux tiers de la population régionale. Quant à la nouvelle zone objectif 2, elle compte 1,2 millions d’habitants. Cependant, les zones anciennement éligibles et non retenues bénéficient d’un soutien transitoire et dégressif.

L’aide européenne ne se résume pas uniquement à une masse financière. Il s’agit aussi d’une logique européenne d’organisation, qui engendre des effets non négligeables, notamment par le principe de partenariat qui pousse à la coopération entre les différents acteurs économiques de la Bretagne et une meilleure complémentarité avec les autres politiques publiques en région. Cette logique est approfondie pour la période 2000/2006.

4.1.3 Impact des politiques communautaires: premier inventaire

La Bretagne connaît depuis plusieurs années un développement hétérogène qui bénéficie plus à la côte Sud qu’à la côte Nord, plus aux zones urbaines que rurales, mais aussi plus à l’Est qu’à l’Ouest. Dans ce contexte, les fonds structurels en Bretagne visent à réduire les disparités intra-régionales dans l’objectif d’un rattrapage de la région dans son ensemble.

Les objectifs affichés dans les différentes mesures, en phase avec ceux de l’Union Européenne, sont la croissance et le développement des régions en difficulté, en vue de converger vers la moyenne européenne. Toutes les régions ne possèdent cependant pas les mêmes atouts pour y parvenir. Les facteurs qui font la différence sont en particulier la recherche, la formation, les technologies. Certaines régions dont fait partie la Bretagne sont moins bien dotées, parfois périphériques, avec des pans entiers d’économie à convertir (défense notamment). Ceci ne doit pas cependant masquer d’autres actifs spécifiques sur lesquels on peut appuyer sont développement ou son redéploiement. Le territoire n’est pas homogène, mais il peut se recomposer si on lui en donne les moyens.

D’une manière très générale, bien que difficiles à mesurer, les effets des Fonds structurels en Bretagne sont perceptibles au regard de la création d’entreprises, du maintien ou création d’emplois, du soutien à la R&D et à l’éducation notamment l’enseignement supérieur. Ils sont cependant, d’effets inégaux. Le Finistère s’est par exemple avéré fort dynamique dans la R&D. De même que Lorient a entrepris une reconversion extrêmement rapide de sa reconversion militaire.


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En résumé, il s’agit surtout :

- D'effets de rattrapage entre les zones éligibles et le reste de la région dynamique,

- D'effets de compensation de budgets moindres dans les zones éligibles par comparaison au reste de la région plus « riche »,

- Plus que d'une simple mise à niveau puisqu’ils préparent et soutiennent également le développement de demain de ces zones, en investissant de manière massive dans la recherche et développement, la création d’entreprises, le développement à l’international, la modernisation de l’appareil productif, l’ingénierie financière, les investissements immatériels; Les Fonds structurels soutiennent les PME-PMI dans leur adaptation à la compétition mondiale par la qualité et la matière grise. Evolution qui a été notable par rapport à la période 1989/1993 et qui est encore approfondie pour la période 2000/2006.

Dans les nouveaux programmes, l'effort a été concentré sur les zones les plus en difficultés (concentration en termes de population éligible), et quelques points d’ancrage. Les «logiques» transversales sont ainsi privilégiées pour 2000/2006.

Tous les projets financés doivent prendre en considération trois thèmes transversaux pour la nouvelle période, et c’est une amélioration intéressante par rapport à la période précédente :

- L’égalité hommes/femmes pour aller encore plus loin dans l’objectif de cohésion sociale,

- L’environnement et le patrimoine naturel, thème fondamental pour l’avenir de la Bretagne qui doit faire face à de nombreuses difficultés environnementales pour préserver et améliorer son attrait. Il s’agit également d’un sujet important par rapport à la période précédente puisque l’évaluation s’est avérée difficile malgré des effets notables.

- La société de l’information et de la communication (SIC) en vue de pousser les PME-PMI à investir dans l'immatériel plus que sur la période précédente qui a vu la majeure partie des aides aux entreprises se diriger vers les aides matériels.

Ajoutons également que l’aide européenne ne se résume pas uniquement à une masse financière, mais que c’est bien plus : une logique européenne d’organisation, logique qui engendre des effets non négligeables, notamment par le principe de partenariat qui pousse à la coopération entre les différents acteurs économiques de la Bretagne et une meilleure complémentarité avec les autres politiques publiques en région. Cette logique est approfondie pour la période 2000/2006.

Il convient aussi de souligner le caractère transversal de la logique européenne qui intervient sur des champs médians tels que l’emploi, le développement régional ou bien l’environnement. C’est une rupture par rapport à la logique plus sectorielle de l’Etat.

Un autre élément qu’il convient de souligner est le lien existant et croissant qu’il y a avec le CPER. L’élaboration du DOCUP s’insère par construction dans le CPER en vertu du principe d’additionnalité. Ainsi, l’épineux problème de la recherche des contreparties publiques ne s’est pas posé en Bretagne. L’inconvénient est que la lisibilité des programmes européens est moindre. Ils apparaissent en quelque sorte comme un satellite du contrat de plan.

Le fait que 60% de la population bretonne soit éligible aux programmes européens aura également limité la vision de ces politiques comme étant des outils au service de stratégies territoriales. Ceci s’est en plus accru pour la dernière programmation dans la


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mesure ou la quasi-totalité du territoire est concerné étant donné la couverture permise par un jeu sur les zones nominales et transitoires. Le saupoudrage des mesures sur un territoire plus large aura sans doute contribué à brouiller l’image d’efficacité des Fonds structurels.

Ceci repose de manière encore plus cruciale la question d’une ambition régionale au sein d’un espace européen, surtout au regard de l’élargissement futur et de l’exacerbation de la concurrence internationale y compris au sein de l’espace économique européen. Cette question est d’autant plus essentielle qu’il devient urgent de:

- combattre une situation périphérique qui s’aggrave du fait d’un glissement à l’est du centre de gravité européen,

- Prévenir une dualisation démographique entre des zones d’emploi attractives qui voient leur population augmenter et le reste du territoire qui subit un effet de captage. Par ailleurs, la polarisation urbaine se poursuit ainsi qu’une concentration sur le littoral,

- Diversifier une industrie reposant principalement sur l’agroalimentaire, l’automobile, l’électronique et la construction navale.

RÉCAPITULATIF DE L’IMPACT DES PRINCIPALES POLITIQUES COMMUNAUTAIRES EN BRETAGNE

La Bretagne bénéficie des fonds structurels depuis 1989 au titre du programme

européen Morgane I, application spécifique à la Bretagne de l’Objectif 5b (« Plan de développement rural et littoral »). Cette intervention des fonds structurels a été renforcée par une première programmation Objectif 2 (1992-1993) qui concernait la zone Trégor-Saint-Brieuc.

Ces deux programmes ont été maintenus de façon distincte sur la période 1994-1999 :

- le programme Objectif 2 a été étendu aux zones de Lorient et de Brest pour concerner 762 000 habitants. Il a mobilisé 564 millions d’euros de dépenses publiques dont 200 millions au titre des fonds structurels,

- le programme Morgane II (Objectif 5b) a concerné 885 000 habitants et a mobilisé 637 millions d’euros de dépenses publiques. En outre, en raison des catastrophes naturelles qui l’ont frappée, la Bretagne a bénéficié d’un report de 6 mois de la date de clôture de ces deux programmations.

Il est impossible dans le cadre de la mission qui nous est confiée de dresser un tableau exhaustif et détaillé de l’impact des politiques communautaires. Aussi, la méthode proposée est de passer en revue:

- Le plan de reconversion industrielle et sociale pour la période de 1899-1993, du Tregor Nord Bretagne

- L’évaluation de l’impact du programme Objectif 2 en région Bretagne, période 1994-1999

- L’évaluation de l’impact du programme Objectif 5b en Bretagne: diversification économique des zones rurales vulnérables

- Les premiers enseignements que l’on peut tirer de l’évaluation à mi-parcours du programme européen Objectif 2 (2000-2006) en Bretagne

Bien entendu la Bretagne bénéficie d’autres politiques communautaires, au premier rang desquelles la politique agricole commune (PAC) et les politiques environnementales ou bien les politiques en matière de transport telles que Interreg. Cependant, la Bretagne n’est éligible qu’à l’interreg III qui n’est, au dire des personnes interrogées, par un outil


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structurant ni développant pour la région dans la mesure où les aides ne financent pratiquement aucun des besoins structurels en matière d’infrastructures.

Concernant la PAC et les mesures environnementales, le choix a été fait de les aborder de manière approfondie dans la partie traitant de la coordination des politiques entre elle. D’un strict point de vue méthodologique il est en effet difficile de dissocier l’articulation de ces politiques avec les politiques structurelles de leurs effets. Concernant les effets de la PAC et des politiques de l’environnement le lecteur pourra se référer à la partie cinq du présent rapport.

4.1.4 Plan de reconversion industrielle et sociale Objectif 2, Treguor Nord Bretagne, 1899-1993

Lors de la période 1989-1993, la Bretagne a perçu environ 200 millions d’euros, toutes aides communautaires. Seule une partie de la Bretagne avait été éligible aux fonds structurels. Elle était constitué des trois zones d’emplois de Lannion, Guingamp et Saint-Brieuc. Elle avait bénéficié au titre des fonds structurels de 44,8 millions d’euros répartis sur 4 ans.

Les fonds européens ont déclenché le lancement d’opérations qui ne se seraient pas faites ou auraient eu des délais de réalisation beaucoup plus longs sans l’apport du FEDER. C’est particulièrement vrai des investissements en matière de formation (Ecole nationale des Sciences Appliquées et des Technologies –ENSSAT- de Lannion, Institut Supérieur des Technologies Automobiles de la Chambre des Métiers de Saint-Brieuc, Institut Supérieur de la Promotion en Agriculture et Industrie Agro-alimentaire -ISPAIA), mais c’est aussi le cas en matière de tourisme (forum de la mer, hippodrome de la Baie) ou en ce qui concerne les investissements dans les pôles technologiques (ENSSAT, Centre d’Etude et de Valorisation des Algues)

Le plan a eu un effet de mobilisation des acteurs économiques et institutionnels sur un projet partagé. Il a également permis d’amplifier et d’accélérer le développement des entreprises, déclenché des créations d’emplois. Il a également permis de modifier le positionnement d’image de la région qui s’était fortement dégradé en valorisant ses atouts technologiques et touristiques. Cependant, dans l’ensemble des trois zones concernées, l’emploi salarié a progressé à un rythme inférieur à celui de la Bretagne. Au cours de cette période, l’industrie du Trégor Nord Bretagne est difficilement parvenue à contenir la récession. La remontée économique a été plus lente qu’au niveau régional. Le secteur des services marchands montre un dynamisme moindre dans le Trégor Nord Bretagne qu’au niveau régional. Cela reflète le manque de diversification de l’industrie et les difficultés d’adaptation de l’économie locale à la nouvelle donne économique.


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Un project remarquable depues 1992 Dossier

“ECOLE NATIONALE DES SCIENCES APPLIQUEES ET DES TECHNOLOGIES”

Historique des fonds européens octroyés à 1'ENSSAT depuis 1992 L'ENSSAT a commencé ses activités en 1986 et forme des ingénieurs depuis lors selon trois profils (Ingénieurs informaticiens/électroniciens et informaticiens/enfin ingénieurs optroniciens). Effectif : 360 élèves ingénieurs (40 professeurs). L'ENSSATa été financée dans le premier programme européen objectif 2 de la reconversion industrielle et sociale du Trégor Nord Bretagne pour la période 1989-1993.

A- Opérations financées sur le Programme 1989-1993

1ère phase: (1989/1992)

Recherche : Financement par l'Europe d'un programme de « développement des équipements de recherche ». (acquisition de logiciels/de matériel de bureautique de Laser). FEDER : 152 449 euros (19,34% du coût total)

Formation : réalisation de bâtiments et acquisition d'équipements permettant à l'ENSSA T de doubler ses effectifs d'élèves ingénieurs Maîtrise d'ouvrage: ville de Lannion. FEDER : 823 224 euros (soit 36%du coût total)

2ème phase: (1992/1993)

Recherche : accueil de jeunes chercheurs et création d'un centre de documentation scientifique

FEDER : 195134 euros (31,0% du coût total)

Formation: Extension des capacités d'accueils des salles de cours. Maîtrise d'ouvrage: ville de Lannion.

FEDER : 533 571 euros (33,33% du coût total)

Total FEDER sur le programme européen: 1989/1992 : 1 631 204 euros

B- Opérations financées sur le programme de reconversion industrielle et sociale Objectif 2 1994-1996

Recherche : Programme immobilier/équipements/Recherche du GISO (Groupement d'intérêt scientifique en optique et optronique)

FEDER : 762245 euros (avec deux maîtres d'ouvrage: la ville de Lannion pour le programme immobilier et l'ENSSAT pour les équipements et la recherche).

- création et animation du club architecture (ENSSA T) : FEDER : 62 504 euros

- Groupement scientifique de télédection : FEDER (280 506 euros)

- Pôle technologique et électrionique embarquée: FEDER : 533 571 euros)

Formation :

- Pôle scientifique multimédia : FEDER : 137 204 euros

- Pôle de formation électronique embarquée: FEDER : 228 673 euros.

Total FEDER sur le programme objectif 2 :1994/1996 : 2004704 euros

C- opérations financées sur le proqramme Objectif 2 -1997-1999

Recherche:

- Pôle de compétence en architecture (ENSSA T) : FEDER : 100 006 euros

- Mise au point d'un projet du Groupement scientifique de télédétection: FEDER (145900 euros)

- Groupement scientifique de télédétection: FEDER (95 518 euros)

- Développement du site en recherche publique-télécom: FEDER : 137 204 euros)

Formation:

- Création d'un pôle linguistique multimédia : FEDER : 45 735 euros

- Acquisitions de matériels /filière ingénieurs: FEDER : 91469 euros.

Total FEDER sur le programme objectif 2 :1997/1999 :614 833 euros


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D- Opération en cours financée sur le programme objectif 2- 2000/2006

Il s'agit de l'acquisition de l'ancienne clinique sainte-thérèse située près de l'ENSSAT pour accueillir un centre commun lannionnais d'optique afin de développer la recherche fédérative en optique.

Ce projet est complémentaire du projet CPER-FOTON dédié à la recherche, labellisé en septembre 2001 par le Ministère de la recherche. Au titre du FEDER cette opération est engagée depuis octobre 2002.

Le programme immobilier a été conçu en 2001, dans une perspective intégrant trois objectifs :

- le regroupement des activités de recherche en optique pour les télécommunications et le Centre commun Lannionnais d'Optique (Ca-O), incluant une salle blanche,

- le regroupement des activités de recherche en informatique, notamment dans la perspective de l'installation du laboratoire Lannionnais de I'IRISA,

- la mise en reuvre d'une plate-forme d'innovation industrielle, support de projets d'innovation coopératifs et dont le concept se décline aujourd'hui sous l'appellation « Institut des innovations Industrielles ».

Les éléments de cadrage du projet sont les suivants :

Le maître d'ouvrage est la communauté d'Agglomération Lannion-trégor. Le projet se décompose en deux tranches. Le coût total du projet (1ère tranche) qui intègre la restructuration du rez-de-chaussée et la réalisation de la salle blanche s'est élevé à: 1 981 837 euros avec les cofinancements suivants :

Conseil Général: 304 898 euros (15,38%)

Conseil Régional: 228 674 euros (11,54%)

FEDER: 990 918 euros (50%)

Cté Agglomération Lannion Trégor : 457347 euros (23,8%)

L'emménagement dans les locaux est prévu en septembre 2003. La deuxième tranche (1,3 million d'euros) n'est pas encore commencée (elle comprendra la restructuration des niveaux supérieurs).

4.1.5 Evaluation finale de l'objectif 2 en région Bretagne, période 1994-1999

En Bretagne, la période 1994_1999 a vu la multiplication des interventions en faveur

de la reconversion des sites industriels : 700 millions d’euros dont 168 million d’euros de fonds structurels européens. Trois zones ont fait l’objet d’un traitement: le Trégor, Brest et Lorient.

Les objectifs visés ont été de renforcer le tissu industriel, favoriser la création d'emplois, organiser le transfert de technologie et renforcer la recherche, améliorer la qualification et l'offre de formation, moderniser les sites portuaires, développer et professionnaliser le secteur touristique, soutenir les équipements structurants et prévenir les pollutions. Au cours de la période 1994-96, la majorité des crédits (41%) a été consacrée au développement de la recherche et de la formation. Tandis que pour la période 1997-99, 31% des crédits seront affectés aux entreprises et au traitement des questions liées à l'emploi.

La gestion déconcentrée du programme (au niveau départemental) s’est en fait traduite par une double instruction des dossiers, au niveau départemental puis au niveau régional. Dans l’ensemble, la programmation n'a pas été très sélective, la volonté d'apporter des projets ayant primé. De plus, l’attention portée sur la programmation de crédits, s’est traduite par une sélection de dossiers sur des critères d'éligibilité administratifs plus que stratégiques. D’autre part, les actions d'information et d'accompagnement ont été modestes. Un manque de personnel aura aussi conduit à des difficultés de remplir les obligations de suivi et de contrôles réglementaires On retiendra aussi un faible nombre de projets programmés sur certaines mesures. Un retard important des réalisations observées à


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ce jour se traduit financièrement par une faiblesse «visible» mais non réelle du taux de réalisation. Opérationnellement, il a été impossible d’évaluer un impact (opérations non terminées).

En matière de recherche de développement technologique, deux mesures (sur quatre) se sont révélées très efficaces pour le développement de l’appareil de formation et d’enseignement, le soutien à la recherche, le nombre d’entreprises associées à ces démarches est important: il s’agit des mesures de développement de la formation et de l’enseignement et de développement des pôles de compétence, avec un impact moindre sur les entreprises. Celles-ci se sont moins mobilisées que pour qu’autres mesures, leur niveau d’intervention étant moitié moindre que dans d’autres mesures (environ 20% contre 40%). Cependant, l’objectif 2 a largement contribué à renforcer la recherche technologique dans les entreprises et la formation sur le terrain des doctorants et des autres stagiaires de longue durée.

En matière de soutien aux infrastructures, la majeure partie des montants programmés a bénéficié aux ports de Brest et Lorient. Le retard important de programmation et de réalisation des projets ne permet pas d’évaluer l’efficacité de cet axe à terme. L’impact réel des investissements sur la compétitivité des ports sera évaluable à plus long terme. Il ressort cependant dès aujourd’hui que le port de Lorient a vu son activité se développer (trafic, chiffre d’affaires), les impacts sur le port de Brest sont à ce jour plus ténus.

Deux exemples de projets ayant fait appel a d’important montants a Brest

Création de l' Institut Supérieur d'électronique de Bretagne - ISEB (102 MF)

L'ISEB, membre du Groupe ISEN de Lille, assure une formation en liaison avec l'économie locale ( agro-alimentaire, acoustique, mer. ..) complétée par un programme de recherche sur ces spécialités au profit et en partenariat avec le tissu économique local. La création récente de cet organisme à Brest a eu des répercussions sur la structuration des équipes de recherche locales ( constitution d'un "programme fédérateur" ) et plus largement sur les perspectives de développement de l'entreprise Thomson dans le domaine agro-alimentaire.

Construction de l'Institut Universitaire Européen de la Merc - IUEM (54 MF)

La construction de l'IUEM à Brest vise à fédérer les formations (deuxième et troisième cycles) et les laboratoires de recherche liés à la thématique de la mer. A travers le regroupement des chercheurs en sciences et technologies marines, en sciences humaines et juridiques, cet institut sera susceptible de développer une coopération scientifique internationale et européenne. Il est difficile, en l'état actuel, de juger des retombées de l'opération, encore en cours de réalisation.

Source: Rapport final, Evaluation intermédiaire -Programme Objectif 2 Bretagne .1994-1996, p. 164.

Pour l’accroissement de l’attractivité des territoires, quelques disparités de zones sont à relever. Le programme est intervenu en temps voulu pour accompagner la restructuration de la zone de Lorient et celle du Trégor. Par contre celle de Brest a été différée et demande un effort important sur prochaines programmation. A ce jour, la complexité du dossier brestois et la multitude d’acteurs retardent encore la programmation des actions. D’autres zones comme Lorient, continuent de bénéficier pleinement des mesures d’accompagnement européenes et voient leur transofrmation s’accélérer sous l’impulsion de cette manne financière. Le Trégor recense 45% des emplois créés, Brest et Lorient représentent un quart des emplois créés restants.L’avancement des projets ne semble cependant pas suffisant pour avoir contribué de manière significative à l’accroissement de l’attractivité des territoires (en moyenne 6% des crédits programmés sont mandatés au 29 avril 1999). De plus, les mesures consacrées à la protection de l’environnement sont très insatisfaisantes dans leur programmation. Les problèmes environnementaux identifiés en début de programmation


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restent entiers. Les projets de politique de la ville et de nouvelles expérimentations semblent très académiques et peu innovants.L’apport spécifique des crédits européens dans le cadre de l’attractivité des territoires est limité.

Enfin, en ce qui concerne les aides apportées à la restructuration des industries de Défense, les résultats des mesures sont ponctuels, la programmation a été difficile et des montants importants ont été reprogrammés au profit de l’axe A (emploi) notamment. Il semble en effet que les bénéficiaires principaux visés par cet axe (les sous-traitants du secteur de la défense) aient été insuffisamment structurés pour garantir la programmation de l’ensemble des crédits prévus. Les sous-mesures présentant une programmation satisfaisante portaient sur des actions individuelles, des aides aux organismes de formation ou aux collectivités territoriales. Cet axe a très peu contribué à atténuer l’impact des restructurations.

Dans l’ensemble, les enquêtes menées auprès des bénéficiaires a révélé une perception des aides positive:

- 52% se déclarent plutôt satisfaits et 33% très satisfaits

- 84% souhaitent la reconduction de l'aide

La région Bretagne enregistre des résultats satisfaisants, comparativement à d’autres régions comme l’Aquitaine, le Centre et les Pays de la Loire (également bénéficiaires des crédits objectif 2). La région Aquitaine, sur un niveau de dépenses européennes comparable à la Bretagne, voit son taux de chômage augmenter. A l’inverse, la Bretagne a eu plus d‘efficacité dans le traitement des ses problèmes structurels : le taux de chômage a baissé de 11,2 à 10,7%, le PIB régional a progressé de 6% entre 94-99 et les ratios d'efficience pour l'impact des aides sont supérieurs.

4.1.6 Evaluation finale du programme Objectif 5b en Bretagne : diversification économique des zones rurales vulnérables

Les instruments financiers affectés à cet objectif sont le FEDER, le FSE et le FEOGA. L’objectif de développement et d’ajustement structurel des zones rurales en déclin est séparé en cinq mesures principales:

1. Développer et adapter la compétence des hommes

2. Améliorer la compétitivité des entreprises

3. Adapter les entreprises agricoles et forestières au nouveau contexte économique mondial

4. Structurer l'espace rural et littoral, promouvoir et valoriser son patrimoine touristique et culturel

5. Préserver le cadre et la qualité de la vie

6. Nous présentation une évaluation de chacune d’entre elles sur la base de l’évaluation ex-post.

Evaluation de la mesure 1 : Développer et adapter la compétence des hommes (FSE)

Quatre objectifs ont été déclinés au sein de cette mesure qui concerne les zones rurales vulnérables:

- Soutenir la liaison emploi-formation

- Développer la compétence des hommes dans les entreprises

- Adapter la compétence des demandeurs d'emploi au marché du travail

- Soutenir l'emploi dans les très petites entreprises


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- Dans l’ensemble, la consommation des Fonds a été contrasté. La consommation constatée de la majorité des actions financées par le FSE a été faible du fait d’une méconnaissance du fonds FSE et de sa faible promotion. Il y a également eu des difficultés à s'approprier le mode de financement de ce fonds du fait de son originalité et de la complexité de sa gestion en France). A l’inverse, on note une importante consommation finale du FSE suite aux efforts d'animation consentis en milieu de programme (1996) et les modifications apportées sur certaines actions en cours de programme élargissant le champ des projets finançables. De manière générale, la part importante du taux de financement des fonds européens des projets financés par le FSE laisse présumer un effet de levier non négligeable. L'effet sur l'emploi est plus difficile à déterminer pour les actions de formation. En termes de consommation, le bilan global est satisfaisant mais cela n'est dû qu'à quelques actions ou sous-actions, la majorité des actions ayant peu été consommées. Pour ces quelques actions, des effets ont pu être appréciés sur la structuration et le renforcement des réseaux, sur l'emploi et sur un rattrapage de la zone 5b par rapport au reste de la Bretagne. Pour les autres actions, pour lesquelles les fonds européens ont été peu consommés, les indicateurs de réalisation indiquent que le taux de réalisation n'atteint pas les objectifs.

Projet : "Espace Sainte-Anne" à Merdrignac en Côtes d'Armor (Fonds FSE)

Constats: Conjoncture économique défavorable, éloignement des services liés à l'emploi (un demandeur d'emploi obligé d'aller à 50 Km pour les services de base), manque de référent pour les jeunes, locaux obsolètes pour la petite enfance.

Réalisation du projet : Le FSE est intervenu sur le financement du fonctionnement de l'Espace Ste Anne entre 1996 et 99. Les pôles de l'Espace Saint Anne à Merdrignac ont pu développer :

- l’intercommunalité, avec un poste concernant l'accueil des entreprises

- un Espace Relais Emploi Formation

- une permanence de la mission locale

- l’accueil des jeunes, avec un pose d'animateur socioculturel

- un Point Cyber-commune et télé services

Effet de levier : exprimé de manière évidente ("le FSE est vital [..]")

Effet sur l'emploi direct :création de 3 postes (cités au dessus), et effets indirects : Embauche induite de 60 demandeurs d'emploi, pas forcément localement. Meilleure connaissance des postes qualifiés dans les entreprises locales (qui sont alors mis en relation avec les jeunes diplômés qualifiés locaux).

Effet de synergie : Cette maison de développement peut être un lieu de synergie entre diverses compétences (réunir à l'Espace Ste Anne des pôles divers amène à un brassage des gens, qui peut briser l'isolement de publics en difficultés).

Evaluation de la mesure 2 : Améliorer la compétitivité des entreprises (FEDER)

Trois sous mesures étaient attachées à la recherche d’amélioration de la compétitivité de la Bretagne:

- Renforcer l'environnement des entreprises

- Renforcer la compétitivité du tissu industriel

- Développer le tissu artisanal et commercial

La consommation des fonds s’est répartie entre les actions dites classiques et des actions plus innovantes. La forte mobilisation locale a été déterminante dans l'émergence des projets. Les régions les plus mobilisées, comme le Finistère, ont largement consommé


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les fonds en particulier pour l'action 221. Le poids de l'animation et surtout des réseaux préexistants constituent les principaux facteurs explicatifs de la consommation des fonds.

En ce qui concerne les effets, sur le plan territorial, malgré une incitation plus forte sur une partie du territoire 5b, le programme européen n'a pas permis de rééquilibrer les dynamiques internes. Ce sont en effet les pôles déjà les moins défavorisés qui ont drainé le plus de fonds européens q'ils soient en zone sensible ou pas. Par contre, l’effet sur l'emploi a été jugé assez satisfaisant. A titre d’exemple l'action 224 (aide à l'immobilier industriel) a permis de créer 2447 emplois entre 1996 et 1999, pour 160 opérations, soit 15 emplois par opération.

Evaluation de la mesure 3 : Adapter les entreprises agricoles et forestières au nouveau contexte économique mondial (FEOGA)

Cette mesure a été déclinée en trois sous mesures:

- Qualité et diversification

- Installation des jeunes et transmission des exploitations

- Mise en valeur de la forêt

Initialement dotée de 306,5 millions de francs de fonds européens, la dépense finale s’est cependant limitée à 258 millions. Cinq actions ou sous actions ont connu d'importants succès en termes de consommation.

Projet : Filière AOC Cidre de Cornouailles (Fonds: FEOGA)

Exemple d'une filière dans le Finistère Sud, déjà existante, qui a bénéficié d'aides européennes. La filière cidricole a été impulsée par le niveau régional et se retrouve dans tous les départements, excepté le Morbihan. Concernant le Finistère : 9 projets (chiffrés en 2001)

Part des fonds européens du département Finistère pour cette filière cidre AOC : 16,7%.

AOC cidre de Cornouaille : premier dossier d'AOC cidre en France (lancé en 1986, abouti en 1996). Sur les 50 producteurs de pommes en zone AOC (zone regroupant 38 communes), une dizaine se situe en zone 5b, 12 d'entre eux transforment le cidre dont 5 en zone 5b.

Effet accélérateur des fonds européens : ces aides européennes ont permis de relancer la dynamique de la filière en facilitant et accélérant les investissements des producteurs situés en zone 5b (or les producteurs de pommes devaient se lancer dans les investissements nécessaires pour la production de cidre respectant le cahier des charges de l’AOC), c'est-à-dire redonner un nouveau souffle à un moment clé, la réalisation des investissements.

Effet d'additionnalité : le programme européen a permis d'obtenir des subventions à hauteur de 50% des investissements en zone 5b au lieu de 20% accordés par la région hors zone 5b.

Résultats : Le classement AOC a entraîné une hausse de 35% du prix du cidre (gain de 25% du prix de l'AOC par rapport au cidre classique). Mais la production de cidre AOC impose plus de travail (ramassage à la main, procédés traditionnels…).

Le chiffre d’affaire de la filière : 5,4 MF pour 12 producteurs et une production de 2250 hl. Les ventes à la ferme représentent 50% des débouchés, complétées par les ventes aux crêperies et un début de ventes aux grandes et moyennes surfaces.

L’effet sur l’emploi indirect : apport de revenus complémentaires, difficilement quantifiables mais non négligeables. La filière s’est basée sur une production à plus forte valeur ajoutée et à la dynamique réelle.


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Toutes appartiennent à la sous mesure «Qualité et diversification», les autres sous mesures ayant connu des consommations nettement plus faibles. Le peu de dispositifs particuliers pour l'animation du programme ont été mis en place explique les différences de consommation. Ici encore, l’animation et les réseaux existants ont été essentiel dans la programmation et l’exécution du programme. La multiplication des mesures du DOCUP ont eu un effet d’éviction, certaines actions étant financées sur une autre ligne du programme ou bien par la concurrence de certains financements nationaux. L’effet de levier a été particulièrement important pour des dossiers qui soutenaient le lancement de filière (coucou de Rennes –race locale de volaille, lapin label rouge, blé planifiable, foie gras). Au delà, plusieurs opérations reflètent bien le rôle que peuvent avoir les fonds européens dans la mise en place ou le maintien d'une dynamique collective, source potentielle de nouveaux développement. L’efficacité globale reste cependant faible au regard de l'objectif d'amélioration de valeur ajoutée de l'agriculture des zones éligibles. La majorité des financements est allée à des actions permettant aux exploitations de se maintenir dans les standards de qualité exigés par les industriels, sans véritablement que cela change la logique économique des systèmes de production.

Evaluation de la mesure 4 : Structurer l'espace rural et littoral, promouvoir et valoriser son patrimoine touristique et culturel (FEDER)

Cette mesure a été déclinée en trois sous mesures:

- Structurer l'espace rural et littoral

- Renforcer l'attractivité touristique et culturelle

- Limiter les problèmes de périphéricité des îles

Sur cette mesure la consommation des fonds est très satisfaisante. La maquette initiale a augmenté de 21% pour atteindre en fin de programme 43 millions d’euros (soit une augmanetation de 7,7millions d’euros). La valorisation des pôles culturels et l’aménagement des voies d'eau bretonnes ont constitué les deux actions particulièrement consommatrices.

Cette forte consommation s'explique surtout par la participation élevée du FEDER pour des projets présentant un coût total très important, le taux de participation du FEDER pouvant aller de 30 à 50%.

Concernant la structuration de l'espace rural et littoral, l’effet de levier a été peu important et l’effet sur l'emploi reste difficile à évaluer car la plupart des projets agissent sur l'attractivité ou structuration du territoire mais pas directement sur l'emploi. Concernant le renforcement de l'attractivité touristique et culturelle, les fonds européens semblent nécessaires pour la réalisation des projets portés par certains privés et les petites collectivités, a fortiori en Bretagne intérieure (maison du patrimoine à Locarn, centre d'initiation à la rivière à Belle-Isle-en-Terre). Néanmoins l’effet de levier est modéré du fait d’une participation moyenne de seulement 14%. La lourdeur de montage de dossiers constitue également un frein. La répartition territoriale des fonds européens reste globalement déséquilibrée. La concentration des fonds dans le Finistère Sud confirme la difficulté de développer un tourisme en dehors des zones classiques d'attractivité du littoral. Concernant les mesures d’accompagnent du développement des îles, malgré un fort taux de participation du FEDER dans les projets financés, l’efficacité reste faible. L’assistance européenne ne suffit pas à endiguer la diminution de la population des îles (-6% entre les 2 derniers recensements).


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Evaluation de la mesure 5 : Préserver le cadre et la qualité de la vie (FEOGA)

Cette mesure a pour objet de :

- Protéger et mettre en valeur la nature et l'espace

- Mettre en valeur les villages

On a observé une très forte consommation des fonds, à l'issue du programme ce sont 27,8 millions d’euros engagés au lieu des 25 millions d’euros prévus. Le dispositif de l’interlocuteur unique aura aidé à simplifier les démarches.

Les effets sont difficiles à évaluer notamment du fait d’une quasi absence d'objectifs quantifiés. L’insuffisance des moyens de suivi de la mise en œuvre dans le cadre du programme. En terme d’effet d'additionnalité, le peu d’informations disponible ne montre pas de véritable rattrapage de la zone 5b par rapport aux évolutions que connaît le reste de la Bretagne. Cependant sans aide, la situation sur la zone éligible aurait été encore moins florissante. La pertinence des objectifs des programmes concernés est très forte pour la Bretagne qui fait face à une crise environnementale liée aux impacts de l'agriculture.

4.1.7 Enseignement tirés dans le cadre de l’évaluation à mi-parcours du programme européen Objectif 2 (2000-2006) en Bretagne

Le rapport intermédiaire de l’évaluation à mi-parcours du programme européen Objectif 2 (2000-2006) en région Bretagne souligne les premiers enseignements issus des travaux menés, dans une première phase, sur l’adéquation de la stratégie du programme. Ceux-ci seront complétés, dans une seconde phase, par des travaux portant sur sa mise en œuvre et l’analyse des premiers résultats et réalisations à mi-parcours.

Il apparaît à ce stade que la programmation Objectif 2 2000-2006 se caractérise en région Bretagne par un niveau de programmation avancé : au 15 mai 2003, 53% du coût total de la maquette initiale a été programmé, soit 39% des subventions communautaires, tous fonds confondus. Un tel niveau de consommation, spécifique à la région Bretagne, dans un contexte général de sous-consommation des fonds structurels en France sur la période 2000-2003, peut s’expliquer par la mobilisation effective des partenaires, mais aussi par un ensemble de dispositions prises en avril 2001 par le Comité de Suivi, visant à permettre une utilisation optimale et rapide des crédits européens.

Sur la période 2000-2003, cette logique de consommation a notamment profité aux interventions dans les domaines de l’environnement (déchèteries, stations d’épuration), du tourisme (hébergement, équipements touristiques et culturels), et des services à la population. Dans le même temps, l’intervention du programme est restée limitée sur certains champs parmi lesquels le développement rural, le volet territorial, le soutien à la modernisation des infrastructures portuaires ou encore l’appui au programme Bretagne Eau Pure, alors que chacun d’entre eux apporte une réponse effective à des enjeux de développement de la région.

Etant donné le niveau de programmation atteint en région Bretagne, ce point à mi-parcours peut donc être l’occasion de recaler ou préciser la stratégie poursuivie par la programmation afin de passer d’une logique de développement peu ciblé et de consommation des crédits qui a prévalu sur la période 2000-2003, à une logique de concentration sur des opérations structurantes porteuses de développement régional pour la période 2003-2006, qu’il s’agisse des priorités nationales et communautaires ou d’opérations à forte valeur ajoutée (notamment les « gros » projets qui ne pourraient se faire sans appui des fonds structurels, et qui entraînent, par ricochet, le développement d’autres champs ou secteurs par ailleurs appréhendés par le DOCUP).


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Globalement, les enjeux qui avaient été identifiés pour la région, lors de l’élaboration du Contrat de Plan Etat-Région et du Document Unique de Programmation Objectif 2, restent valides à ce stade. La fragilisation des piliers de l’économie bretonne que sont l’industrie agroalimentaire d’une part et le secteur de l’électronique et des télécommunications d’autre part, constitue l’évolution la plus significative intervenue depuis l’année 2000.

La stratégie à retenir pour la période 2003-2006 ne nécessite donc pas de bouleversement majeur, mais plutôt des adaptations de la maquette, accompagnées d’une mobilisation accrue des services instructeurs et des partenaires sur l’animation et l’aide au montage des projets, afin de maintenir le rythme de programmation tout en gagnant en sélectivité. Ainsi,

- la stratégie retenue en matière de développement économique, assez large, semble prendre en compte, de façon pertinente, les besoins du territoire. Ce dispositif peut notamment être suffisant pour accompagner les secteurs en mutation tels les industries agroalimentaires (pour lesquels les aides sont cependant étroitement réglementées) et les industries d’électronique et de télécommunications. Cet accompagnement passe aussi par une priorité donnée aux actions visant la diversification des activités (diversification des filières agricoles, développement des capacités de recherche et de développement),

- le développement du tourisme, axe fort du développement breton pleinement pris en compte par la programmation, pourrait être davantage concentré d’une part sur les opérations qui permettent de différencier l’offre touristique de la Bretagne par rapport à celle des autres régions (notamment le développement du nautisme et du tourisme de week-end…) ou d’autre part de développer les opportunités de tourisme vert qui existent en Centre Bretagne, et éviter ainsi de laisser s’accentuer un déséquilibre intra régional,

- les besoins en infrastructures de transport restent forts en région Bretagne, notamment en vue de renforcer l’attractivité économique régionale, par une réduction des temps de transport et une amélioration de la qualité des dessertes et du maillage territorial, et d’éviter la marginalisation de la région dans un contexte d’ouverture de l’Europe vers l’Est. Or, malgré l’effet structurant de ces opérations, la Commission Européenne a, sur cette programmation, limité les possibilités d’intervention sur ce champ. Dans un contexte de réduction budgétaire de l’intervention de l’Etat et des collectivités, une intervention accrue des fonds structurels sur ces projets semblerait pertinente, quitte à renégocier avec la Commission l’éligibilité de dépenses essentielles à l’appréhension de besoins régionaux spécifiques,

- la démarche pertinente retenue pour accompagner les mutations du secteur de la Défense, en associant un appui aux PME sous-traitantes, un soutien à l’adaptation des ressources humaines, et un accompagnement de la réhabilitation des emprises militaires, semble avoir été efficace sur les deux premiers aspects. En revanche, la mesure « 32 - Réhabiliter les sites militaires », fortement dotée, apparaît à ce stade sous programmée, alors même que la valeur ajoutée de l’intervention des fonds structurels apparaît forte. Il convient donc de mobiliser l’ensemble des acteurs (services instructeurs, bénéficiaires et partenaires) pour gagner en rapidité,

- concernant la problématique environnementale, la période 2000-2003 a davantage profité aux déchèteries et stations d’épuration qu’à la problématique de l’eau, pourtant affichée comme la « priorité des priorités », et la préservation du patrimoine naturel, facteur d’attractivité de la région menacé par la pression du tourisme et les pollutions accidentelles. La mesure « 21 – Protéger et améliorer l’environnement » a déjà fait l’objet d’un abondement décidé par le Comité de Suivi du 19 décembre 2002. Il semble maintenant opportun, sur la période 2003-206, de donner une priorité (notamment en termes d’animation et d’aide au montage) aux projets liés à la préservation du patrimoine naturel, en s’appuyant éventuellement sur


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la mesure « t - protection de l'environnement en ce qui concerne l'agriculture, la sylviculture et la gestion de l'espace naturel » du PDRR. De la même manière, il conviendrait de débloquer et accélérer le programme Bretagne Eau Pure,

- le volet territorial (mesure 24), doté initialement de façon importante, souffre de redondances avec les autres interventions de la programmation (tourisme, services à la population, développement économique…) et de l’absence d’une stratégie claire. L’intervention de la programmation sur les services à la population pourrait être concentrée sur ce seul volet territorial. Dans le même temps, une réduction de la dotation financière qui lui est attribuée peut être envisagée,

- l’animation et l’aide au montage de projets doivent être renforcées sur le volet développement rural (axe 4, PDRR), en retard de programmation du fait d’un temps d’adaptation des acteurs à une intervention jugée différente de celle du précédent programme Morgane II (Objectif 5b). Le PDRR souffre aussi d’un manque de lisibilité de la stratégie.

- Enfin, même si la programmation apparaît avancée à ce stade et nécessite dès maintenant des réorientations stratégiques pour la période 2003-2006, et même si les services instructeurs sont fortement mobilisés sur la remontée des factures face au risque de dégagement d’office, il ne s’agit pas non plus de ralentir immédiatement le rythme d’identification des projets.

5 COOORDINATION DES POLITIQUES COMMUNAUTAIRES EN BRETAGNE

Cette section vise à étudier les interactions des différentes politiques communautaires menées en Bretagne. On étudiera successivement la politique de transports, la politique de l’environnement, la politique commune de la pêche et la politique agricole. De manière générale, on s’attachera à en montrer les effets sur l’aménagement du territoire breton. Lorsque cela sera possible, on étudiera les conséquences en retour sur la politique régionale. Enfin, chaque fois que cela sera pertinent, on mentionnera les effets contradictoires qu’exercent les politiques communautaires les unes sur les autres.

LA POLITIQUE DES TRANSPORTS

L’impact le plus évident de la politique des transports concerne l’aménagement du territoire, et les conditions d’exercice de toute activité économique. La politique des transports influe donc sur le développement local.

5.1.1 L’état des réseaux en Bretagne

Le réseau routier est de bonne qualité en Bretagne. Des voies rapides relient les grandes agglomérations de la région, c’est-à-dire principalement les villes côtières, où se concentrent la population et les activités. L’achèvement du tronçon d’autoroute Nantes – Niort a également permis un bon accès au sud ouest atlantique. En revanche, le réseau routier du centre Bretagne est beaucoup moins satisfaisant.

Le réseau ferré suit la même logique que le réseau routier et la concurrence entre ces deux modes de transport est intense. La SNCF ne prévoit d’ailleurs, à l’horizon 2010, que le maintien de sa part de marché dans le frêt (essentiellement intra-régional pour l’instant) et le réseau de TER est assuré pour moitié par autocar.


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Le transport ferroviaire de passagers souffre de l’absence de lignes à grande vitesse, en particulier vers Paris, alors que les grandes villes de l’Ouest (Nantes, Bordeaux et Caen) sont particulièrement mal desservies.

Le réseau aérien est dispersé. La région possède de très nombreux aéroports de petite ou très petite taille, accueillant tous moins d’un million de passagers par an, ce qui les rend tous déficitaires sur le plan comptable à l’exception de Brest (1,7 millions de passagers) mais en limite de capacité. Ils sont néanmoins importants sur le plan économique, puisqu’ils permettent de réduire les temps de transport à destination d’une région périphérique ou de zones enclavées.

5.1.2 Politique des transports et activité économique

La politique des transports européenne, orientée vers les réseaux trans-européens, concerne peu la région. La Bretagne, de par sa position périphérique, ne rentre pas dans le schéma qui privilégie les liaisons entre grandes métropoles européennes. Signalons cependant que tous les problèmes liés au transport en Bretagne (accessibilité de l’Ouest de la région, liaisons calamiteuses vers le sud-ouest atlantique) ne sont pas imputables à l’action communautaire, la politique française des transports étant assez largement inspirée par la même philosophie que son alter ego européenne. On peut malgré tout regretter que le TGV ouest-atlantique ait disparu des priorités de la Commission.

En revanche, la libéralisation du transport aérien peut être favorable à une région excentrée comme la Bretagne, si des compagnies privées investissent les niches que représentent les liaisons inter-régionales en France, ou les liaisons internationales. De la même façon, l’autorisation du cabotage peut représenter une opportunité pour les ports bretons (qui ne représentent à l’heure actuelle que 2,9% du trafic français), à condition de pratiquer une forte collaboration avec Nantes, d’organiser en conséquence les réseaux ferroviaires, d’améliorer plus généralement l’organisation logistique, et de rendre les infrastructures compétitives vis-à-vis de la concurrence de l’Europe du Nord, britannique en particulier. Dans ce domaine, la modernisation des installations portuaires de Lorient et Brest représente un pas dans la bonne direction.

5.1.3 Politique des transports, environnement et tourisme

Tout développement des transports (à des degrés divers cependant selon les modes) est l’origine de nuisances environnementales accrues. La Bretagne est particulièrement concernée par la libéralisation du transport maritime et le laxisme des réglementations communautaire et nationale dans ce domaine (ou le manque de moyen ou de volonté pour les faire appliquer). Les catastrophes écologiques majeures dont ont été victimes les côtes bretonnes ont mobilisé beaucoup d’énergie et parfois des fonds FEDER (par exemple, pour financer des campagnes promotionnelles dans les medias) pour éviter de trop sévères retombées sur l’économie touristique régionale.

LA POLITIQUE DE L’ENVIRONNEMENT

Le volet financier provient d’un financement FEDER, au titre de diverses mesures programmées depuis 1994, au nom du caractère horizontal des actions en faveur de l’environnement dans les politiques communautaires, en l’occurrence ici dans la politique structurelle.


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En Bretagne, il a été consenti un gros effort sur les stations d’épuration et les déchetteries, qui comptaient parmi les équipements en trop faible nombre ou saturés. En revanche, il a été porté trop peu d’attention aux projets liés à la préservation du patrimoine naturel pourtant menacé par la pression touristique.

Si de nombreuses actions en faveur de l’environnement ont donc donné des résultats favorables, on ne peut pas en dire autant à propos de la reconquête de la qualité des eaux. Il s’agit d’un travail de longue haleine (modification du régime alimentaire des porcs, des techniques d’épandage, etc.), nécessitant la participation des agriculteurs. Ceux-ci se sont certes mobilisés, grâce à l’action des chambres d’agriculture, derrière l’action des pouvoirs publics (différents programmes «Bretagne eau pure», «Charte pour un développement pérenne de l’agriculture et de l’agro-alimentaire en Bretagne, incluant la reconquête de la qualité de l’eau» de mai 2001), mais les logiques productivistes restent les plus fortes et menacent de le rester, étant donné les évolutions de la PAC (voir infra). De surcroît, la Charte reste pour l’instant un simple plan d’action et tarde ainsi à donner des résultats concrets.

La pollution de l’eau est un énorme handicap pour la Bretagne. C’est évident sur le plan écologique (d’autant que l’eau potable n’est disponible qu’en surface, étant donné la nature granitique du sous-sol). Mais cela l’est tout autant sur le plan économique. La pollution envahit peu à peu le milieu marin (algues vertes ulca lactica, odeurs nauséabondes), au moins en quelques points du littoral, et menace potentiellement l’activité touristique comme l’aquaculture, l’élevage des coquillages, voire la pêche.

LA POLITIQUE COMMUNE DE LA PÊCHE (PCP)

La PCP a un impact majeur sur l’environnement (gestion de la ressource halieutique), mais aussi sur le tissu économique et social, en particulier sur le littoral et de manière plus accentuée sur le Sud Bretagne que sur le Nord.

5.1.4 La PCP, une politique sans fondement solide

La PCP souffre d’une grave absence de lisibilité. On peut regretter que la PCP soit un assemblage de mesures techniques dans un cadre général d'adaptation de l'effort de pêche à la ressource halieutique. La PCP ne se donne pas d'orientation de long terme et n'a pas tranché entre deux modèles économiques polaires: promouvoir la performance (nombre réduit de bateaux à forte rentabilité) ou stratégie de maintien de l'emploi et d'aménagement du territoire (flottille plus étendue orientée vers une pêche durable). De même, la PCP n'offre pas de vision globale du secteur: elle ne parvient pas à combiner l'ensemble des dimensions techniques, économiques, sociales et écologiques du secteur.

Du coup, l'impulsion vient du niveau local ou régional: ce sont les comités locaux ou régionaux des pêches qui sont la véritable force de proposition. Cela s'explique sans doute en partie par un cloisonnement trop important entre les acteurs : d'une part, les pêcheurs eux-mêmes délivrent des messages contradictoires; d'autre part, les autorités communautaires, mais aussi nationales, se trouvent en position d'attente. Elles interviennent dans le court terme et l'urgence, attitude qui se retrouve dans l'utilisation des fonds communautaires. Cela a été manifeste dans la gestion des fonds PESCA: absence de véritable réflexion quant aux axes de ce programme, absence de politique cadre, obstacles administratifs et bureaucratiques dressés par l'Etat français.

En Bretagne, l’absence de stratégie globale en matière de pêche se retrouve clairement dans le contrat de plan Etat-Région 2000-2006. Alors que le document préparatoire présenté par la Préfecture de Région mettait l’accent sur:


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- la conservation des ressources et l’amélioration de la qualité

- la protection de l’environnement littoral et marin

- l’intégration de la pêche avec les autres activités économiques littorales et marines

- le renforcement de la vocation maritime des villes portuaires

- la version définitive du contrat de plan Etat-Région détruit la cohérence de cette construction. Cela tient à la relative faiblesse de l’engagement financier de l’Etat, qui conduira à mener un ensemble d’actions ponctuelles. Pour remédier à cet état de fait, les porteurs de projet devront tenter de rendre éligibles leurs actions dans le cadre d’autres mesures (environnement, recherche et formation, intégration des différentes activités économiques).

5.1.5 PCP, environnement et activité économique

Notons encore que, même si les aides communautaires ont des effets ambigus, elles demeurent indispensables à la structuration de la filière pêche.

L'ambiguïté des aides peut être illustrée à travers un exemple: la répartition des puissances des bateaux étant contingentée, un jeune voulant s'installer doit racheter un bateau. On estime qu'un bateau de 10 ans se négocie au prix du neuf. Mais, dans les quatre à cinq ans qui suivent, l'équipement devra être mis à la casse ou modernisé, dans une logique de rentabilité. La perception des aides va donc ici amener à l'accroissement du potentiel de pêche du bateau, ce qui est contradictoire avec le souci de gestion de la ressource halieutique.

Malgré tout, les aides restent indispensables. Les demandes de financement permettent aux décideurs publics d'influer sur les caractéristiques du bateau (le bénéficiaire étant tenu de rembourser si l'équipement installé ne correspond pas à ce qui avait été prévu). En l'absence d'aides, on peut craindre que les pêcheurs se lancent dans la course à l'accroissement incontrôlé de l'effort de pêche, dans l'optique d'une rentabilisation à court terme des investissements, mais avec des effets désastreux sur les stocks de poissons. En d'autres termes, le circuit des aides permet un contrôle indirect de l'effort de pêche. Elles peuvent impulser une politique de la ressource halieutique; mais, à l'heure actuelle, il n'y a pas une discrimination suffisante entre les dossiers étudiés, sur la base de ce critère.

Enfin, les choix (ou les conséquences de l’absence de choix) effectués en matière de politique de la pêche auront une influence marquée sur les territoires. Première région halieutique de France (en 1999, les produits de la mer y ont représenté 40% de la valeur des pêches débarquées sous criées en France), la Bretagne est marquée par les difficultés de cette activité. Si le volume de l’emploi y est relativement modeste, ce critère est insuffisant pour apprécier l’impact du secteur. En effet, la pêche est un élément structurant essentiel du littoral breton et contribue de façon décisive à sa vitalité. Le maintien d’une activité productive littorale est donc un enjeu majeur. Compte tenu des inquiétudes relatives à l’évolution de la ressource halieutique, la profession, pour sa survie et celle de l’économie littorale, serait bien inspirée d’explorer les voies ouvertes par le développement d’une pêche durable. La Commission, quant à elle, ne saurait réduire ce concept à la limitation de l’effort de pêche. En effet, une réflexion sur un modèle de pêche durable doit prendre en compte les différents aspects de l’économie littorale, par exemple les conditions de la coexistence du tourisme et de l’aquaculture.

LA POLITIQUE AGRICOLE COMMUNE (PAC)

Comme on l’a déjà vu (section 3), l’agriculture et l’industrie agro-alimentaires sont des secteurs très importants de l’économie bretonne. Facteurs d’activité dans la région, ils


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semblent au bord d’un accroissement de la crise qu’ils connaissent déjà, menaçant les équilibres régionaux. D’un autre point de vue, les conséquences productivistes de la PAC ont infligé de graves blessures à la Bretagne.

5.1.6 Contradictions internes

Du point de vue de la cohésion économique et sociale, les soutiens agricoles sont une manne importante pour la région (plus d’un demi-point de PIB), mais en l’absence de données sur la répartition des aides entre exploitations et entre sous-régions agricoles, on ne peut guère se prononcer sur les vertus de la PAC en termes de cohésion territoriale.

Pourtant l’avenir est sombre: les réformes successives de la PAC depuis 1992 reposent sur la baisse des prix garantis dans les secteurs les plus budgétivores (grandes cultures, lait, bovins) et le développement d’aides directes au revenu, que l’on tend de plus en plus à découpler des volumes de production. La baisse des prix garantis, malgré le maintien des quotas laitiers, est une menace directe pour le secteur laitier en Bretagne. Or la Bretagne assure 21% des livraisons en France et abrite de nombreux établissements de transformation (beurre, poudre de lait, emmenthal, produits frais). La baisse des prix garantis peut tout d’abord inciter les exploitants aidés à la diversification vers les activités non aidées (fruits et légumes, porc, etc.). Cela peut créer une concurrence à même de déséquilibrer les marchés et de paupériser les producteurs.

La baisse des prix garantis expose en outre les producteurs à d’amples variations de prix. Dans ces conditions, l’existence d’un système d’aides découplées, en réduisant le risque supporté par l’agriculteur, l’incite à surproduire, ce qui favorise les investissements des exploitations et affecte la production à long terme. Une telle évolution entraînerait vraisemblablement la poursuite de la baisse des effectifs agricoles et une plus grande concentration des terres et des cheptels.

5.1.7 PAC et cohésion économique et sociale

Dans ces conditions, on pressent des effets potentiellement dommageables pour l’occupation du territoire et pour l’environnement. Le danger est grand de voir disparaître la synergie entre les activités de production et la fourniture de biens publics, comme par exemple entre l’élevage des herbivores, la préservation des paysages et le maintien d’une activité économique dans les régions défavorisées, car il n’est pas sur que les aides agro-environnementales prévues par la PAC soient à la hauteur des enjeux. De plus, la délocalisation des productions vers les zones les plus productives, favorisée par le découplage des aides, risque d’entraîner des pollutions accrues dans les zones de concentration des cultures et des élevages.

En termes de cohésion économique et sociale, il ne faut pas négliger le fait que le découplage des aides menace leur légitimité: la société peut-elle octroyer durablement des aides spécifiques aux exploitants agricoles si, dans certaines régions, beaucoup d’entre eux ont une production limitée et si, dans d’autres, la concentration des productions entraîne des nuisances écologiques? Que penser alors du second pilier de la PAC qui repose sur le développement rural? La crainte est forte de voir ce volet de l’intervention communautaire rater sa cible et privilégier le milieu plutôt que les hommes, dont les besoins de reconversion professionnelle risquent de s’accroître.

Si on imagine maintenant que les négociations internationales dans le cadre de l’OMC conduisent l’UE à abaisser significativement les volumes d’exportations subventionnées et les mécanismes de protection aux frontières dont bénéficient les productions non aidées comme le porc, on voit la crise dans laquelle risque de basculer les principales filières agricoles bretonnes. On est alors conduit à s’interroger sur la capacité de la Bretagne à assurer le


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maintien d’une agriculture rémunératrice et durable. Par ricochet, la très forte intégration de l’agriculture et des IAA dans la région peut avoir des effets cumulatifs en cas de crise et fragiliser les petits bassins d’emploi très dépendants de l’agro-industrie. En Bretagne, cela aurait des conséquences très négatives compte tenu des caractéristiques de la main d’œuvre employée dans ce secteur, qui obèrent ses capacités de reconversion: personnel peu formé, très féminisé, en milieu rural.

5.1.8 PAC et environnement

Dans le domaine de l’environnement, les répercussions négatives des pollutions d’origine agricole sur l’environnement sont fortes en Bretagne et elles menacent de s’aggraver si le scénario décrit ci-dessus devait se dérouler. Il y a un paradoxe à constater que, depuis 1994, l’UE, promotrice de la PAC, participe financièrement au programme «Bretagne eau pure II», visant à réduire la pollution des sols et des rivières par des nitrates d’origine agricole. Par ailleurs, l’intervention communautaire se traduit par l’adoption des directives «nitrates» (la première, en 1991, tardivement appliquée en Bretagne à partir de 1996-97, et la seconde, appliquée à partir d’août 2001).

Dans le même ordre d’idées, l’impact environnemental des mesures inscrites au titre nouvel Objectif 2 dans le DOCUP de la région Bretagne, pour la période 2000-06, est ambivalent: l’axe 2 («Aménager un territoire équilibré et attractif») recouvre les actions relevant directement de la problématique environnementale. Si, d’un côté, l’aménagement des sites portuaires tend à réduire les émissions polluantes (limitation des rejets liés à l’activité économique dans les zones littorales), d’un autre côté , ces effets positifs peuvent être contrebalancés à long terme par une intensification du trafic grâce aux améliorations obtenues; l’axe 3, dont l’une des mesures consiste à «valoriser les atouts en matière de tourisme et de culture» peut exercer des effets positifs par la valorisation des espaces naturels ou la mise aux normes de certains équipements, mais aussi des effets négatifs du fait de l’intensification de la fréquentation touristique qui constitue une pression sur l’environnement.

Enfin, et c’est là sans doute le plus important, l’orientation environnementaliste de la PAC depuis 1992 n’est pas à la hauteur des enjeux. Le découplage des aides directes, en coupant le lien entre volumes produits et revenus, est censée inciter à une production plus raisonnée et moins polluante. On a vu plus haut que l’effet inverse est tout à fait envisageable. La conditionnalité agro-environnementale des aides reste pour partie à la discrétion des Etats membres qui ont vu là le moyen de verser des aides supplémentaires en échange d’une contrepartie formulée parfois dans des termes suffisamment vagues pour ne pas être trop contraignantes. En tout cas, tout cela n’a pas enrayé le productivisme et ses conséquences négatives. La dégradation continue de la qualité de l’eau et la difficulté de contraindre le milieu agricole en Bretagne est là pour l’attester.

CONCLUSION

Il n’y a pas de recommandation simple à apporter dans le cas de la Bretagne, tant l’ensemble des apports et des contradictions des politiques communautaires ont une nature systémique.

De surcroît, nombre des problèmes soulevés ont certes une dimension locale mais trouvent fondamentalement leur origine dans des facteurs qui dépassent le cadre de la Bretagne. Il en va ainsi des modèles de développement qui sous-tendent les politiques en matière d’agriculture ou de pêche, avec tous leurs effets induits en termes économiques, sociaux et environnementaux.


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La formulation de recommandations visant à améliorer la coordination des politiques communautaires dépasse donc largement le cadre d’une étude régionale. Elles n’auraient même de sens que si le raisonnement se situait au niveau européen.

6 GOUVERNANCE DES POLITIQUES COMMUNAUTAIRES EN BRETAGNE

Les propos qui suivent, et qui concernent les procédures de pilotage d’actions complexes, sont pour l’essentiel issus d’entretiens réalisés avec les acteurs impliqués sur le terrain.

PARTENARIAT ET DÉMARCHE STRATÉGIQUE

La Bretagne se distingue par une forte implication des acteurs locaux dans la définition de la stratégie régionale de développement. La démarche concertée permet un meilleur partage des priorités. Même si le partenariat est une pratique ancienne dans la région, la perspective des concours communautaires l’a donc institutionnalisé, que ce soit entre administrations et collectivités locales ou entre le public et le privé. Les réunions périodiques du Comité de Suivi, sous l’égide de la Préfecture de Région, permettent de nouer le dialogue, les acteurs se sentant, de leur propre aveu, écoutés.

En parallèle, la stratégie de développement régional est devenue plus globale, grâce à une meilleure articulation entre les instruments de planification. Alors que, jusque dans les années 90, le DOCUP et les autres instruments (Contrats de Plan Etat-Région, Plan de développement rural national) étaient totalement séparés, la période de programmation 2000/06 a été marquée par la mise en concordance du DOCUP et du CEPR, tant du point de vue de la période couverte que des actions prévues. Dans la pratique, on constate cependant les limites de l’exercice: le retard avec lequel a été signé le DOCUP (mars 2001) a, par exemple, beaucoup nui a l’émergence de synergies. L’expérience mérite cependant d’être renouvelée, en tenant compte des dysfonctionnements constatés à l’heure actuelle. Il est d’ailleurs question, pour la période de programmation post 2006 de fondre le DOCUP et le CPER en un seul document contractuel qui impliquerait un engagement tripartite entre l’Etat, la Région et la Commission Européenne.

Plus généralement, la traduction sur le terrain de la stratégie globale, telle qu’exposée dans le DOCUP, n’est pas toujours très claire. On relève certes la réalisation de quelques grands projets structurants (modernisation des infrastructures portuaires à Brest et Lorient, reconversion de l’Arsenal à Brest ou de la base sous-marine de Lorient), qui sont de réels succès. Ces deux projets absorbent à eux seuls une part substantielle des concours communautaires. En revanche, l’adéquation aux objectifs globaux de la myriade de petits projets est moins claire et la cohérence de l’ensemble problématique, quand bien même ces modestes réalisations ont un impact significatif à leur échelle, sur le tissu économique ou le cadre de vie local. Cette impression devient manifeste lorsque les actions co-financées par les fonds communautaires ne s’inscrivent pas dans une politique cadre bien définie. C’est le cas dans le secteur de la pêche : la PCC est beaucoup plus un ensemble de mesures techniques visant à gérer des problématiques de court terme qu’une vision à long terme du secteur et du modèle économique visé.

Sur un plan plus technique, l’objectif d’articulation du DOCUP et du CPER a été fixé indépendamment de l’organisation des services administratifs. L’organisation du partenariat


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qui devrait s’occuper de la mise en œuvre et de la gestion des cofinancements semble donc inadaptée sur le plan fonctionnel.

Dans le même ordre d’idées, le zonage tel que pratiqué en Bretagne a certes permis de rendre la majeure partie de la région éligible au nouvel Objectif 2. Si cela conduit à n’oublier aucun des territoires méritant un soutien, on comprend également que la dilution des moyens produit les effets précédemment décrits : perte de vue des objectifs globaux de développement et faibles effets d’entraînement à l’échelle régionale.

Ce constat est encore étayé par les conséquences de la complexité procédurale dans l’accès aux concours communautaires. Au renforcement des règles de contrôle européennes s’est rajouté l’amas des procédures proprement françaises, la pluralité des co-financeurs entraînant la pluralité des procédures de montage des dossiers et des règlements financiers. De ce fait, les promoteurs et les administrations se trouvent accaparés par les aspects juridiques. Il est frappant de constater que le travail de l’administration porte essentiellement sur la recevabilité et la complétude des dossiers plutôt que sur leur intérêt économique. De même, les procédures d’évaluation menées par le SGAR sont plus préoccupées par le contrôle de conformité des dépenses que par la mesure de l’impact des projets menés à bien. En définitive, que le projet s’inscrive dans l’objectif global de développement énoncé par le DOCUP est quasiment fortuit.

DÉCENTRALISATION

Au cours de la période 94-99, les procédures de gestion des concours communautaires étaient décentralisées au niveau des départements. L’actuelle période de programmation a changé la donne, l’échelon régional étant devenu prépondérant. Ce changement a plusieurs explications:

- la création d’une enveloppe budgétaire unique au niveau de la région est, du point de vue de l’autorité de gestion, un moyen efficace de hiérarchisation des priorités, plus efficace en tout cas que les enveloppes allouées département par département, sur la base d’un partage équitable plus qu’en fonction de besoins clairement identifiés. Le «guichet unique» à l’échelon régional, qui accompagne le volet strictement budgétaire, a également permis un appréciable raccourcissement, à trois ou quatre mois en moyenne, du délai d’instruction des dossiers avant leur examen par la CRPE Cela contribue également au renforcement des pouvoirs de l’autorité de gestion, la Préfecture de Région.

- dès lors que le report des crédits d’une année sur l’autre n’était plus possible, la départementalisation des programmes n’était plus opportune. Avec la règle du dégagement d’office, des sommes importantes risquaient d’être perdues faute d’un vivier suffisamment large de projet au niveau départemental. La mutualisation permise par l’enveloppe régionale unique élimine en partie cet effet pervers. Mais lorsque sur telle mesure, les crédits disponibles sont épuisés, certaines zones éligibles risquent la disette. C’est le cas des restructurations militaires: la zone de Lorient a absorbé la quasi-totalité des ressources disponibles, mettant à profit les atermoiements des autorités locales dans la zone de Brest et l’impréparation de la zone de Dinan, éligible depuis seulement 2000.

La recentralisation au niveau régional a permis de lutter efficacement contre la sous-programmation chronique qui a marqué le début de l’actuelle période de programmation, dont la cause se trouve principalement dans le retard pris dans la signature du DOCUP. A partir de l’été 2002, la Préfecture de Région a multiplié les appels à projet et apporté une aide conséquente au montage des dossiers. Aujourd’hui, le retard dans la programmation a


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été résorbé (même si l’on ne pourra éviter le dégagement d’office de fortes sommes à la fin de cette année). Si, à court terme, cela s’est traduit par une course effrénée à la consommation des crédits européens, par la sous-estimation des difficultés de mise en œuvre des projets et un retard dans leur exécution (d’où une course effrénée aux factures), cela permettra à l’avenir une meilleure sélectivité dans le choix des projets, surtout si la Préfecture de Région entend privilégier les projets structurants.

La recentralisation au niveau régional introduit également un élément de souplesse dans le dispositif. Lorsque les crédits affectés à une mesure sont épuisés, il est plus facile à l’autorité de gestion de modifier la maquette et de transférer des crédits d’une mesure peu utilisée vers une mesure plus prisée. C’est le cas en Bretagne des actions en faveur de l’environnement, que la CRPE du 3 juillet dernier entend encourager.

La recentralisation est un instrument de rationalisation des interventions publiques. La Préfecture de Région peut faire plus efficacement pression sur les collectivités locales de façon à éviter la multiplication des co-financeurs à la recherche de tribune leur permettant d’exposer leur action auprès de leurs administrés. En premier lieu, certains projets pourraient trouver des sources de financement alternatives, permettant une plus grande concentration des fonds communautaires. En second lieu, les volumes de co-financement sont parfois tels qu’ils conduisent à une sous-utilisation des concours communautaires, et à un décalage fâcheux avec les besoins exprimés dans le DOCUP.

La recentralisation au niveau régional présente cependant des inconvénients. Le premier est le sentiment de désappropriation des acteurs locaux. La perte de la partie programmation a été durement ressentie par les services départementaux, même si leur pouvoir reste entier dans le domaine stratégique des contrôles de complétude et de recevabilité des dossiers. Du coup, les services administratifs départementaux ont eu tendance à se transformer en avocat des projets transmis à la CRPE. Si l’intention d’accroître l’efficacité du système est louable, force est de constater que la capacité et la volonté des services régionaux à gérer les dossiers a été surestimée, d’autant qu’ils n’ont reçu aucuns moyens supplémentaires. Le volontarisme dont fait preuve la Préfecture de Région comporte le risque de basculement dans une logique d’appels à projets que l’on s’emploie à toute force à faire correspondre à une mesure d’intervention communautaire.

TRANSPARENCE

Sous cette rubrique, nous traitons des règles d’utilisation des fonds communautaires, les règles a priori qui déterminent l’accès aux concours communautaires et les règles a posteriori qui relèvent de l’évaluation de l’utilisation des fonds publics.

Pour ce qui est des règles a priori, les changements intervenus en 1999 ont déstabilisé les maîtres d’ouvrage. Les implications de la règle du dégagement d’office n’ont pas été d’emblée clairement perçues et les opérateurs n’ont peut être pas mis tout le zèle nécessaire à la programmation et à l’exécution de projets éligibles. Cela se traduit toujours par une certaine incompréhension au niveau local et à des malentendus avec l’autorité de gestion régionale.

Les techniques de contrôle et d’évaluation de l’utilisation des fonds communautaires sont perçues comme très procédurières et très complexes.

Sans revenir sur le premier aspect, notons cependant que cela tient sans doute à l’absence de la culture de l’évaluation dans l’Administration française. Il ne faut pas négliger non plus les difficultés méthodologiques de construction des outils de l’évaluation, aux niveaux microéconomique et microsocial, et plus encore aux niveaux macro-économique et


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macro-social, dans le domaine des études d’impact. Sous la pression communautaire, mais pas seulement, les choses sont cependant en train de changer. Les mentalités évoluent et la notion d’objectif prend peu à peu sa place dans les services administratifs. En attendant l’évolution des pratiques, il faut reconnaître l’absence d’instruments d’appréciation globale, au niveau régional, de l’impact des interventions publiques sur le tissu économique et social.

Quant à la complexité, on s’attachera à un point particulier qui est l’empilement des procédures de contrôle, chaque co-financeur vérifiant l’utilisation de sa contribution. Les collectivités locales font preuve d’une certaine inertie. Elles n’ont jamais tenté de standardiser leurs règlements financiers, obligeant ainsi les porteurs de projet à adapter leur dossier à chaque co-financeur. Elles ne sont pas très incitées à le faire si les règles qui gouvernent la distribution des fonds communautaires sont fluctuantes (par exemple, le renforcement des procédures de contrôle européennes depuis 2000) et tant que les financements communautaires conservent un rôle d’appoint dans la réalisation des projets.

Enfin, si la rigueur de gestion est louable, il ne faut pas qu’elle devienne contre-productive: la règle obligeant le maître d’ouvrage à financer totalement son projet avant d’obtenir le remboursement communautaire sur présentation de factures conduit à une sous-utilisation des fonds communautaires. Les petites structures ont vite épuisé leur trésorerie disponible ou leur capacité d’emprunt (dont les charges ne sont pas éligibles aux concours communautaires) et sont freinées dans leur dynamisme, car elles ne tiennent pas à se fragiliser à l’excès sur le plan financier.

7 RECOMMANDATIONS POUR L’ACTION COMMUNAUTAIRE

Comme demandé dans le cadre du contrat, nous présentons en une demi page, quelques recommandations pour l’action communautaire. Ces idées requièrent pour la plupart une volonté de changement important. Nous sommes conscients que la « nouveauté » peut mettre en cause certains mécanismes établis et ainsi nécessiter un certain temps d’adaptation et de dialogue. Ce travail d’élaboration des «recommandations» ne peut se faire qu’au travers d’une démarche participative très poussée, non seulement pour retenir les préconisations les plus effectives mais aussi envisager leur mise en œuvre concrète sur le terrain. Ces recommandations n’ont été discutées à aucun niveau et n’engagent que les auteurs de ce rapport. De plus, elles ne sauraient impliquer en aucune manière que ce soit les personnes interrogées dans le cadre de cette étude. Elles se veulent une simple réflexion des auteurs qui tentent par là même d’apporter une modeste contribution au large et riche débat qui a lieu quant à l’avenir des politiques communautaires dans une Europe qui grandit.

Premièrement, dans un contexte d’élargissement, il parait nécessaire de redéfinir les outils d’intervention communautaires en fonction d’une perspective stratégique en cohérence des politiques mises en œuvre au niveau international, communautaire et national.

Deuxièmement, la transversalité entre politiques communautaires est un élément central dans la recherche d’une meilleure cohésion économique et sociale. Elle doit être pensée ex-ante tant pour l’articulation des politiques entre elles que pour leur mise en œuvre opérationnelle.

Troisièmement, le principe de simplification doit prévaloir sur les autres depuis la définition stratégique des actions à mener jusqu’à leur contrôle, en passant par leur mise en ouvre et leur evaluation.


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Quatrièmement, le principe de partenariat doit être renforcé entre l’Etat, la région et la Commission Européenne. Celui-ci doit également s’étendre dans ses formes opérationnelles à la société civile et promouvoir le liens local-régional en vue de renforcer les dynamiques collectives.

Cinquièmement, L’approche stratégique top-down impulsée par le contrat de plan ou bien les programmes communautaires pourrait utilement être complétée par des démarches bottom-up sous forme d’appel à projets qui pourraient être soumis à proposition.

Enfin, Le principe de concentration des moyens devrait largement prévaloir dans le cas du traitement des impacts négatifs des zones en déclin ou en crise.


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BIBLIOGRAPHIE

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CARIOU C., «Les fonds structurels européens en Bretagne sur la période 1994-1999 : reconversion économique et sociale des territoires en difficulté structurelle», Cahiers économiques de Bretagne, Numéro spécial, mars 2001, n°1.

CESR BRETAGNE, "Prospective des facteurs d'attractivité des régions atlantiques", Rapport des Conseils Economiques et Sociaux Régionaux de l'Atlantique, Octobre 2001.

CESR BRETAGNE, "Prospective des facteurs d'attractivité en Bretagne", Rapport du Conseil Economique et Social Région Bretagne, Co-rapporteurs de la contribution, Mme Françoise HURSON L'HOTELIER et M. Jacques COLIN, Juin 2002.

COMMISSARIAT GENERAL AU PLAN, Instance nationale d’évaluation des fonds structurels et des politiques régionales, «Les fonds structurels européens dans le paysage régional français», rapport réalisé par le Cabinet Mazars, 2 juin 2003.

CONSEIL DE PROSPECTIVE EUROPENNE ET INTERNATIONALE POUR L’AGRICULTURE ET L’ALIMENTATION, « Réflexions pour l’avenir de la politique agricole commune », synthèse des travaux remis à M. Hervé Gaymard, Ministre de l’Agriculture, de l’alimentation, de la pêche et des Affaires rurales, mai 2003.

CONSEIL ECONOMIQUE ET SOCIAL DE BRETAGNE, Les fonds structurels en Bretagne dans un Europe élargie, Octobre 1998, pp.158.

CONSEIL ECONOMIQUE ET SOCIAL DE BRETAGNE, Prospective des facteurs d’attractivité des régions atlantiques, Octobre 2001, pp.169.

CONSEIL ECONOMIQUE ET SOCIAL DE BRETAGNE, Prospective des facteurs d’attractivité en Bretagne, juin 2002, pp.127.

CONSEIL REGIONAL DE BRETAGNE, «Diagnostic SRADT / Région Bretagne», Rennes : Conseil Régional, sept. 2002.

CONSEIL REGIONAL DE BRETAGNE. «Schéma régional d’aménagement et de développement du territoire :les enjeux pour la Bretagne en 2015 ». Octobre 2002.

ERNST & YOUNG, Projet de rapport intermédiaire phase 1, Évaluation à mi-parcours du programme européen Objectif 2 (2000-2006) en Bretagne, pour le compte de la Préfecture de la Région Bretagne, Secrétariat Général aux Affaires Régionales, Mai 2003.

EVEN A., «La Bretagne en devenir», Octant n° 94, juin 2003.

IREQ, «Evaluation intermédiaire programme objectif 2 Bretagne 1994-1996», Rapport final, pour le compte du Comité de suivi du programme Objectif 2 Bretagne.

PREFECTURE DE REGION BRETAGNE, « Plan de reconversion économique et sociale des régions en difficulté structurelles de la Bretagne, Objectif 2, Période 2000-2006 », rapport du comité de Suivi du 25 juin 2003.


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PREFECTURE DE REGION BRETAGNE, « Plan de reconversion économique et sociale des régions en difficulté structurelles de la Bretagne, Objectif 2, Période 2000-2006 », rapport du comité de Suivi du 25 juin 2003, annexe 1 : bilan par axes et mesures.

PREFECTURE DE REGION BRETAGNE, « rapport annuel d’exécution du programme objectif 2 Bretagne », 2002.

PREFECTURE DE REGION BRETAGNE, Plan de reconversion industrielle et sociale, FEDER Objectif II, 1ème phase (1989-1992), Comité de suivi du 6 novembre 1992.

PREFECTURE DE REGION BRETAGNE, Plan de reconversion industrielle et sociale, FEDER Objectif II, 2ème phase (1992-1993), Bilan technique et financier final.

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PREFECTURE DE REGION BRETAGNE, SGAR, DOCUP Objectif 2 2000-2006.

PREFECTURE DE REGION BRETAGNE, SGAR, Evaluation finale du programme européen Objectif 5b, rapport d’annexes, Juin 2001, pp.138.

PREFECTURE DE REGION BRETAGNE, SGAR, Evaluation finale du programme européen Objectif 5b, Annexe : instruction des indicateurs, mai 2001, pp.29.

PREFECTURE DE REGION BRETAGNE, SGAR, Evaluation finale du programme européen Objectif 5b, rapport de synthèse, Juin 2001, pp.101.

SITES INTERNET CONSULTÉS

- Site de Chambre Régionale de Commerce et d'Industrie. www.bretagne.cci.fr

- Site de la région Bretagne. www.region-bretagne.fr

- Site de l'INSEE Bretagne. http://www.insee.fr/fr/insee_regions/bretagne/home/home_page.asp

- Site de la Préfecture de Bretagne et d'Ille-et-Vilaine. http://www.bretagne.pref.gouv.fr


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http://www.bretagne.cci.fr/

http://www.region-bretagne.fr/

http://www.insee.fr/fr/insee_regions/bretagne/home/home_page.asp

http://www.bretagne.pref.gouv.fr/


APPENDICE

Liste des personnes inteviewées

PROJECT: An analysis of the impact of community policies on regional cohesion"

REGION: Bretagne - France

Object: INTERVIEWS

Expert: Vincent LAMANDE

NAME &

Surname

INSTITUTION &

Function

ADRESSE

ORVEILLON

Jean Charles

Pays de Saint Brieuc

Directeur

ELEUSIS

1 rue Pierre et Marie Curie

22190 Peyrin

ELAIN

Yves

Conseil Régional de Bretagne

Directeur Général Adjoint

283, avenue Patton BP 3166 35031 RENNES Cédex

DUSSUD

François Xavier

INSEE (Institut National de la Statistique et Etudes Economiques)

Responsable études

INSEE

36 pl. Colombier

35000 RENNES

FLEJO

Janick

Conseil économique et social de Bretagne

Conseillère Technique

7 rue du Général Guillaudot 35069 RENNES Cedex

MERCIER

Michèle

Secrétariat Général pour les Affaires Régionales - SGAR

Chef du bureau des Affaires Européennes

SGAR - Préfecture de région

3 rue Martenot

35031 RENNES Cédex

KERAVAL

François

Communauté Urbaine de Brest

Responsable Aménagement du territoire

Hôtel de la CUB

24, rue Coat-ar-Guéven

BP 92242

29222 BREST CEDEX 2

BERNEZ

François

Communauté Urbaine de Brest

Direction de l’économie

Hôtel de la CUB

24, rue Coat-ar-Guéven

BP 92242

MALGORN

Bernadette

Préfecture de la région Bretagne

Préfète

3 avenue de la Préfecture 35026 RENNES CEDEX 9

BROUSTAIL

Yvon

Sous-préfecture de Brest

Responsable du service économique de Brest

3 rue Parmentier

29200 Brest

LE FOLL

Pierre

Conseil économique et social de Bretagne

Chargée des projets européens

7 rue du Général Guillaudot 35069 RENNES Cedex

BERTEL

Louis

Mission Recherche et Technologie du Ministère de l’Education Nationale, de la Jeunesse et de la Recherche , Paris

Délégué Régional à la Recherche et à la Technologie

Direction Régionale de l'Industrie, de la Recherche et de l'Environnement de Bretagne

9,rue du Clos Courtel - CS 34308 -

35043 RENNES Cedex

LLOLIER

Jean Charles

Centre National pour l’Aménagement des Structures des Exploitations Agricoles (CNASEA)

Paris & Bruxelles


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Représentant français à Bruxelles

CHARRETON

Philippe

Direction Régional de l'Agriculture et de la Forêt – DRAF

Directeur adjoint

15, avenue du Cucillé ZAC de Beauregard 35047 RENNES Cedex

LE BERRE

André

Comité Régional des Pêches Maritimes et des Elevages Marins de Bretagne

Président

1 square René Cassin

DOUDET

André

Comité Régional des Pêches Maritimes et des Elevages Marins de Bretagne

Chargé de mission

1 square René Cassin

LE VAGUERESSE Jacques

Chambre Régionale de Commerce et d’Industrie de Bretagne Responsable Aménagement du Territoire

CRCI

1 rue Général Guillaudot - CS 14422 35044 Rennes Cedex


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LISTE DES TABLEAUX (ANNEXE II)

Produit Intérieur Brut par région (PIB) à prix courants

Valeur ajoutée brute par secteur d'activité à prix courants 2001

Fonds structurels en Bretagne 1994-1999 : répartition (en millions d'euros)

Objectif 2 : Dispositif transitoire 2000-2006 : répartition (en millions d'euros)

Objectif 2 : Dispositif transitoire 2000-2006 : répartition zone nominale et transitoire

Fonds structurels : comparaisons 1994-2006 (en millions d'euros)

Tableau financier général indicatif FEOGA-Garantie

LISTE DES ENCADRES (ANNEXE II)


Tableau d'honneur de la Bretagne

Exemple d'un projet remarquable depuis 1992 : Ecole Nationale des Sciences Appliquées et des Technologies

Deux exemples de projets ayant fait appel à d'important montants à Brest : création de l'Institut Supérieur d'Electronique de Bretagne et construction de l'Institut Universitaire Européen de la Mer

Projet : "Espace Sainte-Anne" à Merdrignac en Côtes d'Armor (Fonds FSE)

Projet : Filière AOC Cidre de Cornouailles (Fonds : FEOGA)

LISTE DES GRAPHIQUES (ANNEXE II)


Profil migratoire de la Bretagne

Carte des pays de Bretagne

Densité de population en 1999 (données lissées)

Taux de chômage en Bretagne et en France 1998-2003

Emploi total en Bretagne dans quatre secteurs (nombre)

Dépenses intérieures en recherche et développement en 2000

Les types de créations d'entreprises sur 10 ans

Maquette financière par axe


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FRANCE:

REGION: LIMOUSIN

ELABORATION: AUTHOR: MS. PASCALE TORRE Collaborator :Ms. Sophie Chouzenoux Assistants : Ms. M Somdecoste, Ms. M.A. Roddier, M. S. Dubois From: LAPE UNIVERSITÉ DE LIMOGES. FRANCE


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INDEX

1 METHODOLOGICAL ISSUES, ACTIVITIES AND OTHER COMMENTS

METHODOLOGY TIME SCHEDULE MAIN ISSUES

2 CONTEXT AND BACKGROUND GEOGRAPHICAL AND SOCIO-ECONOMIC CHARACTERISTICS (POPULATION, MAIN SETTLEMENTS, PRODUCTIVE STRUCTURE, ETC.) BRIEF ANALYSIS OF THE REGION IN TERMS OF DEVELOPMENT AND COMPETITIVE FACTORS

3 COMMUNITY POLICIES DESCRIPTION OF THE MOST RELEVANT POLICIES OPERATING ON THE REGION, INCLUDING FINANCIAL ISSUES (COMMUNITY, NATIONAL AND REGIONAL EXPENDITURE) WHETHER SIGNIFICANT, THE ROLE OF THE STATE AIDS

4 ASSESSMENT OF THE IMPACT OF THE COMMUNITY POLICIES RELATED TO THE SOCIAL AND ECONOMIC COHESION: MAIN RESULTS

IMPACT OF CAP ON ECONOMIC AND SOCIAL COHESION ENVIRONMENT IMPACTS ON ECONOMIC AND SOCIAL COHESION STRUCTURAL POLICY IMPACT ON ECONOMIC AND SOCIAL COHESION IMPACT OF LEADER ON ECONOMIC AND SOCIAL COHESION CONCLUSION:

5 ANALISING THE COORDINATION AMONG THE SET OF COMMUNITY POLICIES

ACCORDING TO LEVELS OF ADMINISTRATION ACCORDING TO THE SECTORIAL POLICIES AMONG THE MOST RELEVANT POLICIES

6 GOVERNANCE ISSUES DECENTRALISATION TRANSPARENCY IMPLICATION OF PRIVATE PARTNERSHIP OTHER ASPECTS OF GOVERNANCE

7 CONCLUSIONS


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8 GUIDELINES FOR THE COMMUNITY ACTION

BIBLIOGRAPHY AND DATA SOURCES

APPENDIX

Method of making interviews and collecting data

Index of tables

Synthesis of the principal community interventions in Limousin (1994-1999)

Programming of projects by years

Repartition by district

Evolution of the share of each supported field between the 2 objective 5b programmes

Programming of LEADER II programme in Limousin at 17/01/2002

Advancement of Engagement and payment in Leader II programme of Limousin

LEADER II programmed action on the 94-99 period by the limousin LAG

Co-ordination among the most relevant policies in Limousin

Co-ordination among the most relevant policies and structural policy in Limousin


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REGIONAL COHESION: THE CASE STUDY OF LIMOUSIN. FRANCE

1 METHODOLOGICAL ISSUES, ACTIVITIES AND OTHER COMMENTS

METHODOLOGY

The study tried to fulfil the impact of Community Policies on regional development of the Limousin. The value of this study is limited due to the fact that it is not possible to separate quantitatively the own CP impacts from the effects of national and regional policies and exogenous context.

In conducting the study, we have based our examination on:

Desk research to examine all relevant documentation such as budget overviews, work-plan, public and internal documents, statistical indicators (e.g. studies, calls for proposals, evaluation reports, ...) (cf Limousin Annex Bibliography).

Interviews with officials, opinion leaders and managing actors such as those who have responsibilities in the implementation of the programme, to complement the information available from desk research (Conseil Regional du Limousin, SGAR of Prefecture du Limousin, Direction Régionale de l'Environnement (DIREN), Direction de la Recherche et Technologie (DRT), , University of Limoges, Conseil Général de la Haute Vienne, Direction Régionale de l'Agriculture et de la Forêt (DRAF), Chambre Regional d'Agriculture (CRA), Conservation Regional des Espaces Naturels (CREN)). The main objectives of the interviews were to obtain additional factual material, including future plans, and to collect opinions and ideas about the CP's implementations and impacts.

TIME SCHEDULE

The study on the impact of CP on Limousin development is carried out in the 12th of June and the 28th of July of 2003 and the study period is on 1990-2001.

We have provided:

a preliminary report within 3 weeks of the commencement of work and describing the main elements of the report;

a final report within 6 weeks of the commencement of work providing the full study for discussion and opinion;


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MAIN ISSUES

- Difficulties to collect data over all the period, we often have data since 1990 about population indicators (French population censuses are carried out at 1990 and at 1999) and since 1993 for others indicators

- Difficulty to obtain meeting

- Scattered, absent or incomplete information

- Impossibility of providing coherent financial indicators, data between european, national and regional sources are not always similar, because of lack of homogenous account process

- On the 1990-2001 period, data are not measured on the same monetary unit (francs, ecu, euro), that does not make easier comparisons between data and evaluation of the impacts.

2 CONTEXT AND BACKGROUND

GEOGRAPHICAL AND SOCIO-ECONOMIC CHARACTERISTICS (POPULATION, MAIN SETTLEMENTS, PRODUCTIVE STRUCTURE, ETC.)

The Region Limousin (NUTS level II) is formed by three "Départements" (districts) - Corrèze, Creuse and Haute-Vienne (NUTS level III)– and is divided in 8 employment areas : Brive, Tulle and Ussel (Corrèze), Aubusson and Gueret (Creuse) and Bellac, Limoges and Rochechouart (Haute Vienne). Limousin, except urban areas of Limoges and Brive, is eligible to the new Objective 2 of the Structural Funds for 2000-06 as declining rural areas and was eligible from 1994-99to the Objective 5(b) (development of rural areas).

2.1.1 Population (cf Limousin annex Population)

At 1999 census, total population was about 710 000 inhabitants. The total density of population is low (42 inhabitants per km²) and if we consider "objective 2" area, there are only 28 inhabitants per km², and in Creuse only 22 inhabitants per km².

Most of the population in Limousin are old (23 % of the population is older than 65 years). The population decreases, despite a positive net migration, particularly in rural area.

The region Limousin is mainly rural, even if the share of urban population (56 %) is higher than rural (44%), it is lower than the national average % of urban population (76 %).

But there is strong imbalance within the Region : population of Haute Vienne is more urban (70 %) than others districts (55% in Corrèze and only 30 % in Creuse).

So the West and the East of the Limousin are unbalanced : the West, with Limoges and Brive, is more urban, more dynamic and younger, the East is more rural and agricultural, enclosed and older with low density of population.


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2.1.2 Economics features (cf Limousin annex Employment, annex GDP, annex Agriculture)

Active population is about 305800 at 1999. It went down since 1990 by 1.3%. Only Haute Vienne maintains its active population between 90 and 99, those of Creuse and of Corrèze went down by 6% and 1.3 % respectively.

Among the active population of Limousin, in 1999, 88.8% are employed, 10.8% are unemployed and 0.5% are soldiers .

In 99, Limousin accounts 271832 jobs. Between 90 and 99, total number of jobs has decreases by 1.91%. Employment is about 85% of jobs of Limousin. Self-employment is 15%.

Employment qualification is weak, managerial staff rate is weaker (9,1%) than national rate (13,1%) , most employment (56,2%) are workers and employees.

Female employment in Limousin is 45,8%, and is 57,4% in services sector, 3 point higher than national %.

Public employment is 22% of total employment and 40% of services sector en 99.

The unemployment rate is lower than the average French rate. This could be explained by the stagnation of active population since the middle of 80s.

In 2001, GDB per capita of Limousin (19643€) is lower than national average.

In 1999, the average net income of Limousin is 15910 € against 17950 € for France. The imbalance is high inside the region. Net income of Haute Vienne is 3,4% higher than those of Limousin, those of Creuse is 9,7% lower. The income gap between male and female is 3067€, (17.8%), but it is less than the national gap (24.5%) (without Ile de France).

Agriculture is an important sector (4,1% of Limousin added value against 2,8% for France). The region has a still important holder rate in total employment, (8,7%), it is higher than the European one (4.1%) and french one (3%). Agricultural employment rate decreases. But the average agricultural income per employee is the lowest of France. 20% of holders declare lower disposable income than the French GMW (guaranteed minimum wage). Limousin holdings obtain a 508€ Standard Gross Margin per ha (940€ French average SGM per ha).

Many holding have small used agricultural area (UAA) and the number of holding decreases. Since 10 years, many individual holdings have been gathering in co-operatives, so that improves competitiveness of the regional agriculture product.

Among 12 000 holding which represent 92% of the utilised agricultural area (UAA), 8 000 farms are specialised in extensive "bovine animals" rearing (66.5% of the UAA).

Forest area is important and preserved. The forestry sector, one of Limousin strengths, was hit hard by the storm in late 1999.

Industrial and services activities are essentially constituted by well-diversified small and medium-sized enterprises. 78% of them have less than 50 employers. They employ 32% of the total workforce. Only 52 establishments have more than 200 employees.


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Almost all sectors are represented in Limousin. The economic evolution since 10 years is different according to the economic activities.

In 1999, service sector employs 55% of total employment of Limousin with a high rate of female employment (57,4%), but this sector expands mainly in service activities for household.

2.1.3 Formation, Research and Technology

Limousin supplies education system of good quality. For the second degree, one accounts 85 teachers for 1000 pupils against 79 of the national average.

Further education covers a wide range of fundamental, applied and technological courses – not forgetting on-going professional training courses. The University boasts some 20,000 students each year. The ratio of acceptance for entry into the major further educational establishments is one of the highest in France.

The technical and scientific resources of Limousin are undersized with regard to the weight of the region into the French economy.

R&D in Limousin is mainly public (75% of total number of researchers). The budget of public research is low, only 0.1% of national budget allocated to public technology and science. The number of researchers is 9 per 10 000 jobs, that is the lowest of French Regions. Average number of researchers per laboratory is 2.4 against 5.5 national average. Private and public R&D are slightly related. Limousin R&D is present on leadind-edge domains as industrial ceramic, material and surface treatment, microwaves, electromagnetism, waste and water treatment, genomic research. Patents per inhabitants are low, but there is in average 0,4 patent per year and by researcher, slightly upper than national average. Limousin has a wide variety of regional, national and international collaborative research projects, which further contribute to the reputation of the region. The advanced materials laboratory (composites and aluminium) holds one of the first positions in Europe.

There are deficiencies of ICT supply (high debit and mobile telephony) in Limousin and weak implication of the operators. High debit is present around Limoges and Brive (and in few areas where secondary and university schools exist) but rarely beyond. For mobile telephony, many limousine areas are not all covered (in 75 villages on 747 we can not use mobile telephone), that corresponds to 12,7% of Limousin area and 2,9% of its population. French average rates are 8,4% and 0,66% respectively.


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BRIEF ANALYSIS OF THE REGION IN TERMS OF DEVELOPMENT AND COMPETITIVE FACTORS

This part focuses on strengths and weaknesses of Limousin with regard to social spatial and economic cohesion

Strengths Weaknesses

Social and Spatial cohesion

Positive net migration, particularly in rural areas

Low income gap between men and women

Higher graduate levels for women than men

Improvement of transport infrastructure

Privileged quality of life, patrimonial wealth and preserved environment :

rich traditions

abundant and good quality water resources

good air quality,

reliable waste collect and treatment

Depopulation

Imbalance of the numbers and the age of population between the West and the East of the region

Decrease of total employment

Risks of enforestion, difficulties to keep up landscape and maintain to bio-diversity

Few areas with environmental protection statutes.

Economic cohesion

Forest areas characterised by bio-diversity and accessibility

Extensive holding which is propitious to environment preservation.

High quality of ovine and bovine production.

Many small and craft firms creating employment

Dynamic and leading-edge R&D sector

High localisation of employment in the west of the region

Imbalance of GDP per inhabitant between the West and the East of Limousin

Decrease of holders and weak diversification of agricultural production

Few setting-up of businesses in rural areas and difficulties on takeover of businesses

Weak valorisation of tourism products

Few activities linked to environment


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3 COMMUNITY POLICIES

DESCRIPTION OF THE MOST RELEVANT POLICIES OPERATING ON THE REGION, INCLUDING FINANCIAL ISSUES (COMMUNITY, NATIONAL AND REGIONAL EXPENDITURE)

3.1.1 CAP

Methodological issues regarding to the collect of CAP information:

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The CAP objectives are not clearly specified. No document describes the way CAP orientations are applied in Limousin.

No financing plan is arranged and the implementation is not properly explained. So, except the amount of subsidies, no information is available on the name of the ones who finance and manage the politics as well as their respective part in the financing.

The precise and estimated effects are also very intricate to establish. No evaluations of CAP effects on Limousin development exist.

Features of agriculture in Limousin : (Cf Annex Agriculture)

Over the 1991-2001 period, Limousin agriculture is characterised by various tendencies.

The Limousin agricultural income (net added value at factor cost) corresponds to 1.27% of the national one in 1990 and to 1.38% in 2001. So the convergence is weak. But as the agricultural employment has decreased, the product per worker grows more strongly than french average one. Limousin agricultural income per worker increases in average by 4,9% per year, it is only 2,6% in France, Creuse, the more rural district, has a even higher growth rate (7%) (cf Annex Agri). Furthermore, agricultural investment increased between 1991 and 1999, this 3 % increase on the whole FBCF is better than national %. However, it is even higher on other non-agricultural products but much less on the buildings. These features contribute to the dynamism of the agriculture in Limousin.

Another feature is the decline of holders and holdings numbers, both imply the increase of the holdings size. Between 1988 and 2000, the holders number is spent from 24331 to 16668, the number of holdings decreased from 29431 to 18799, the holdings of more 50 ha Used Agricultural Area are 39% in 2000, they are 19% in 1988.

The other issue is the take-over of holdings. Indeed, more than a half of the holders are more than 50 years old and most of them could not find purchasers for their holding. In the long term, the supply of holding sales can lead the fall of their price. So to protect economic activities in rural area, State and regional governments offer allowance for the setting-up of young farmers (Dotation à l'installation de Jeunes Agriculteurs (DJA)).

The Limousin agriculture is weakly diversified, it concentrates especially around the bovine breeding. However, this specialisation is compensated with the quality of meat production, certified by origin and quality labels: blazon prestige, veal under the mother, veal from Limousin…. High quality of limousine breeding fulfils the market demand. Extensive breeding is particularly fit to increased size of holding. It allows a wide occupation of


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landscape that must be preserved. This agricultural evolution constitutes a major issue in the regional development. So, even if the specialisation of bovine breeding is important, limousine agriculture is also diversified in cereal and fruit products. More recently, the agro-tourism has begun to develop, giving new source of income.

The limousine agriculture moves toward a professionalism of the holders linked both to the increase of the holding size and investment. Moreover, a evolution between 1988 and 2000 appears also in juridical statute. Even if 86% of the holdings have still individual farms statute, 2% of co-operative (GEAC) and company (EARL) statute in 1988 has became 9% in 2000. The less domestic holding has been gone with an increased mechanisation. New holders are more and more qualified.

The improvement of mainly extensive agricultural production in Limousin fulfils the sustainable development conditions.

Besides, the forest massif of Limousin is one of the main French forestry areas. With a better management, its exploitation might generate employment. With 11 000 created jobs, the forest industry is the secondly dynamic industrial activity of Limousine after food processing sector.

The forest exploitation is a strategic question for the region.

CAP in Limousin

In Limousin, as in all other French regions, there is a procedure of cooperation between different authorities to implement the CAP objectives. So, the Chambre Régionale d’Agriculture (deconcentrated department of French Ministry of Agriculture and Environment) and the Conseil Régional du Limousin decide the actions which can be financed by the CAP. Afterward, the Direction Regionale de l' Agriculture et de la Forêt (DRAF) and the DIrection Regional de l'ENvironment (DIREN) receive the submitted projects and, after their examination, follow their implementation.

The subsidies received by the holdings, (cf Annex Agriculture), could be united around two pillars: subsidies on products and subsidies for holding. All these subsidies heavily weight in the limousine economy as far as they are the lowest in 1991 (199,4 million euros), and the highest in 2001, with 290,8 million euros. They regularly increase since 10 years. Note that the data given in annex don't include the CPER and objective 5b programme supports. Even if these latter are insignificant regarding the amounts engaged by the CAP, it means that total subsidies in Limousin are even higher.

The subsidies on product are divided in four parts :

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The first is the subsidy in the crowd preservation of suckling cows (PMTVA). It constitutes the main part of all subsidies on products. The amount of PMTVA knows a very net rising trend and it is spent from 32,8 million euros in 1990 to 126,2 millions in 2001.

The second part corresponds to a subsidy on the cattle male (PSBM). This subsidy, almost insignificant at the beginning of the 90s (2 million euros in 1990), supplanted the caprine-ovine subsidy (PCO) since 2000 and reaches 44,7 million euros in 2002.

The third part corresponds to a subsidy in areas devoted to the oil and protein cereal crop. Over the 1990-2001 period, its amounts sharply


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increases from 0 to 31,6 million euros. This growth shows the important of the agricultural diversification begun in Limousin.

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The last part of subsidies on product is a caprine-ovine subsidy (PCO), based on a will of diversification. As far as other subsidies on product, more adapted to the regional goal for agriculture, have had increasing shares, the PCO knows a decline from 22,6 million euro amount in 1991 to 9,2 million euros in 2001).

On the whole, the subsidies on products have been strongly increased between 1990 and 2001 from 56,3 million euros to 202,8 million euros.

The subsidies for holding are especially connected to the protection of a natural space regarding the pollution. These supports (notably the agro-environmental measures) exist to compensate for the development of an extensive agriculture, very profitable at the ecological level but weakly profitable at the economic level. There are 3 main types of subsidies for holding.

The first is an allowance to fight against the natural handicaps (ICHN). This support knows, over the period, wide variations (from 26,1 to 44,3 million euros), however it stays always the highest of the 4 subsidies for holding.

The second subsidy for the holding, the herb subsidy, is devoted to develop extensive agriculture. It did not exist at the beginning of the 90s and its amount is, in 2001, rather consequent (18 million euros), but its amount was higher in the middle of the 90s.

The third one, the compensations for agricultural disasters, varies too much over the period. As they depend strongly on unpredictable meteorological phenomena, their amounts go from 0 in 1995 or 0,6 in 2002 to 24,7 million euros in 1990.

The CAP supports are fundamental to maintain agricultural activities and environmental quality. The Limousin agriculture is not very productive but its extensive production and its quality of products ensure its economic development and the keep-up of landscape.

However, in addition to CAP supports, it is interesting to study an primordial support in Limousin : Dotation à l'installation de Jeunes Agriculteurs (DJA).

To stimulate the setting-up of new holders and improve the take-over of holding, the French government and the Conseil Régional du Limousin offer a subsidy for setting-up the young farmer subsidy (DJA) by means of the CPER and the regional policy of Structural Funds (1994-1999 and 2000-2006). This aid was created to improve the transmission of farms and the setting up of the young farmers. So, the EGGAF-GUIDANCE of the regional policy devoted 3,25 million euros to the DJA while the regional budget foresaw a 7,2 million euros subsidy as such. On the whole, the subsidy "young farmers " reached 28,7 million euros and became the most important support of the policy of setting-up of holders (56 %). Several studies and evaluations were carried out to assess the situation of young holders, ten years after their setting-up. Among the setting-up obstacles, the main one is the increasing size of holdings, which implies more management and equipment. So it is very difficult for holders to obtain a positive net added value at factor cost without subsidies.


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3.1.2 Environment

Methodological issues

Financial data of LEADER programme are not available for environmental measures. The interviews of environmental experts have been difficult to obtain (holidays, busy time or unavailability). The environmental questions are too recent and were not yet subject of evaluations.

Environmental features in Limousin (Cf Annex Environment)

Biodiversity and natural heritage

The region is endowed with a natural preserved and diversified patrimony (cliffs, moors, peat bogs, streams and valleys, ponds and lakes,…). Limousin is characterised by the high density of its fauna and its flora. The total regional area is 1 694 234 ha, that is 3 % of whole France. In 2003, the main features are the following as :

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643 100 ha of forests area. The afforestation rate of the region is 38 % against 27 % in France,

one Regional Natural reserve (Périgord - Limousin) and an other one at the planning stage (Millevaches),

voluntary nature reserves (291 ha),

15 orders of biotopes (944 ha and 70 km of rivers),

378 Natural areas of Fauna and Flora Interest cover 115537 ha (that is 6,8 % of the whole regional area),

39 classified sites (on 1609 ha) and 192 registered sites (47724 ha) in the inventory drawn up by The National Natural History Museum

2 wetlands of national interest (Millevaches and the Pond of Landes),

27 sites of community interest (NATURA 2000), covering 17236 ha (that is 1% of the regional surface) and 449 km of stream. Besides, they accommodate around thirty botanical and animal species registered on the Directive "Environments". The site "Landes and peat bogs of the Limousine Mountain", in Corrèze, was subject of an experimental method within the framework of the Program LIFE-NATURA 2000.

Air quality and climate

In 2002, the Regional Air Quality Plan of Limousin, indicates that the climate of the region does not seem to present an important risk regarding the production and the emissions of atmospheric pollutants. In 1998, the emission of atmospheric pollutants (notably of industrial origin) is the weakest of France : weak number of industrial plants in Limousin could explain it. Furthermore, in 2000, the emissions of atmospheric pollutants decrease, except for the dioxide of carbon (CO2) which increases by a small amount. These emissions mainly emanate from the road transport (NOx and CO), the waste treatment industry (SO2 and CO2) and the agriculture (NH3 and COVNM). On the other hand, the emission of ammonia (NH3) in Limousin is relatively important : 2,5 % of total France. This rate is explained by the high weight of the farming sector.

Water quality

With an impervious substratum and a wide pluviometry (between 800 and 1700 mm of the annual accumulated heights of precipitation), the surface water resources are important


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in Limousin. The region counts about 9000 km of rivers forming a very dense river system (7 river bassins: the Charente, the Cher, the Creuse, the Dordogne, the Gartempe, the Vézère and the Vienne) as well as of multiple lakes and artificial ponds (about 4000 by district).

Besides, in 1997, the stream water quality is higher than the national average. So, the water quality is globally good because of the weak industrial sector, of the little polluting agriculture and of the efforts of local governments and company managers to endow of water-treatment plants. Moreover, the region is independent on its drinkable water supply, it uses its own treated and stored superficial water resources.

Land quality

In the region, the contagion of grounds by heavy metals and other toxins on the industrial fallow lands is today weak. In 1996, the national inventory of grounds listed 8 polluted sites in Limousin (old mines, discharges or factories). These sites have been cleaned up.

With regard to the agriculture, the nitrogenous pressure on agriculture grounds is increasing over the 1990-1997 period because of a stronger use of fertilisers.

Radioactivity

Limousin has a higher natural radioactivity rate than the French average. This is due to its geologic features. Furthermore, during about fifty years, two companies (COGEMA and SMJ) have exploited about thirty mines of uranium. COGEMA in 1993 and SMJ, in 2001 have stopped exploiting the mines but are refitting the exploited sites.

Wastes

In 1997, a strong quantity of household and similar waste are still landfilled. It increases since 1993. On the other hand, the rate of thermic valuation is the higher in France. About 2/3 of the incinerated quantities give place to recoveries of energy against hardly 1/3 for the national level). However, the rate of biologic valuation is lower than the national average.

Main environmental community policies

From an environmental point of view, the regional development in Limousin is based on 5 axes:

The European Directives and their continuation at the national and regional levels,

the structural policies: LEADER II programme, the Objective 5b programme over the1994-1999 period and the Objective 2 programme over the 2000-2006 period,

the community program: LIFE,

the national policy concerning to risks conservation, water management and sustainable development,

the regional and local actions, as the CPERs, the constitution of environmental inventories and atlas of Limousin, the PNRs (regional natural reserves), the municipal wastewater treatment …


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The regional development in terms of environment, since ten years, results from the combination of these five political axes. Within the framework of the study, we are only interested in the first three ones.

European Directives and their national and regional implications

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The policy on the protection of the natural environment

The Directive 79/409/EEC on the conservation of wild birds, Birds Directive, is subject of a national inventory of ZICO (Important Areas for the Conservation of Birds). Three ZICO are listed in Limousin as Special Protection Areas (SPAs) and belong to Natura 2000 network.

The Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora, ( Habitats Directive), allowed, at the national level, the proposition of sites classified in Special Areas of Conservation (SACs). In Limousin, 13 SACs have been approved and are members of Natura 2000 network, 11 SACs in the process of implementation.

Air policy

The Directive 96/62/EC of 27 September 1996 on ambient air quality assessment and management, led to the adoption of the Air Quality and Efficient Use of Energy Act (n°96-1236) of 30 December 1996 at the national level. Under the 1996 Air Quality Act, Regional Air Quality Plans (PRQA) have to be drawn up and adopted. It has allowed the creation of a Regional Association for the Quality of the Air in Limousin (ARQAL). In Limousin, the LIMAIR association measures the Index ATMO (air quality index consisted of four pollutants: SO2 , O3 , NO2 and PM 10 : suspended particulate matter).

Water policy

The Directive 91/271/ EEC of 21 May 1991 on urban wastewater treatment, amended by the Directive 98/15/ CE of 27 February 1998, led to a Water Act of 3 January 1992 at the national level. This Act notably established, within every river bassins, a new system of global economic planning of the water resources. This planning is constituted by the SDAGE (Water Development and Management Master Plans), the SAGE (Water Development and Management Plans) and the contracts of rivers covering 180 km of Limousin rivers.

Waste policy

The implementation of the Directive 91/156/EEC led to a more ambitious national policy focusing, in particular, on developing prevention and recovery. So, French waste management policy has been revitalised with the adoption of Act n°92-646 of 13 July 1992. Since 1992, in Limousin, a District Household and Similar Waste Disposal Plans is implemented with the aim of coordinating all the actions.

Another policies

Concerning the natural and technological risks management, the Directive SEVESO identified only 4 establishments in the region Limousin.


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Concerning the agriculture, the Directive 91/676/EEC, on the protection of water resources against the pollution by nitrates, has allowed, on the national plan, to draw up balance sheet of nitrogen surpluses on the agricultural lands. The Agricultural Pollution Control Program (PMPOA) of Limousin has been elaborated in 1993. Furthermore, the new french Agricultural Policy Act of 9 July 1999, supports a more respectful agriculture of the environment notably by promoting the organic farming.

Structural funds

Since 1989, the environmental questions are increasing in the structural policies implemented in Limousin. The European and regional authorities support more and more actions related to environment issues and their financial efforts are too higher.

The structural policy (ERDF, ESF) grants specific projects in Limousin, as « Aquapôle ». This project allowed the creation of Centre de Formation National aux Métiers de l'Eau, (national training centre of water professions). The training of water is open to national and international public, mainly from emerging countries (Algeria, Lebanon, Mexico,…) which need infrastructures, engineers and know-how.

Besides, the environmental actions have benefited from LEADER II financing.

• LIFE-Nature

Three LIFE-Nature programs in Limousin, were relatively significant:

LIFE " Pelouses sèches" (dry lawns) is financed by the European Union and is coordinated by the National Union of the Regional Conservation for Natural Areas. In Limousin, the CREN (Regional Conservation Agencies for Natural Areas) attempts particularly to develop a pastoral management on two areas in the South of Haute-Vienne.

LIFE Natura 2000 " Landes et Tourbières de la Montagne limousine" (Dry moors and peat bogs of the Mountain limousine) is a nature reverse of dry moors and peat bogs (4500 ha on Millevaches area of the Corrèze). During the programming 1996-1997 period, the foreseen actions aim at the preservation and expansion of the extensive meadow. Without this programme, the 3/4 of the dry moors and peat bogs would have lost their environmental specific wealth.

LIFE " Landes et zones humides de Haute-Vézère", (Dry moors and wetlands in the Haute-Vézère in the Corrèze), since 1998, is a experimental and innovative programme. Its actions are aimed at maintaining and restoring the extensive meadow in a site of Community Importance. So they are aimed at elaborating needed tools to build a contract of protection for Community Importance forest habitat. It is one of the first experiences of this type in France, before the official implementation of the network Natura 2000.


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Programme Objectives Amount in euros

Objective 5b

1994-1999

Axis 1: Preservation of public services and community equipments in rural areas

�Europe : 30.339.921

�Public : 87.996.333

�Private : 37.692.905

Objective 5b

1994-1999

�Measure 1.5 : Rural waste water treatment �Europe : 7.625.652

�Public :33.529.320

�Private : 100.688

Objective 5b

1994-1999

�Measure 1.6 : Industrial waste �Europe : 3.438.754

�Public : 8.386.522

�Private : 9.087.410

Objective 5b

1994-1999

Axis 3 : Rural development �Europe : 14.949.766

�Public: 43.453.499

�Private : 20.347.200

Objective 5b

1994-1999

�Measure 3.2 : Protection and development of the nature, of rural space and of built natural patrimony

�Europe : 8.019.066

�Public: 21.163.402

�Private: 10.258.988

LEADER II

1994-1999

Living environment :

�Habitat

�Patrimonial and environmental promotion

??

AQUAPOLE PROJECT

Since 1995

Creation of a National Centre of Forming the Professions by the Water (CFNME)+ others actions

�ERDF : 609.796

�ESF: 152.449

�Others :1.905.613

Objective2

2000-2006

Axis 1: Strengthen the basic conditions of the regional development

�ERDF :42.985.263

�State :27.898.171

�Region :15.183.852

�Other State department : 62.649.544

�Private :593.071

Objective2

2000-2006

�Measure 1.3: Favour the preservation of a environmental quality

??

Objective2

2000-2006

�Measure 1.4: Ease the effects of the storm and pull(fire) the consequences

Objective2

2000-2006

Axis 2: Improve the businesses competitiveness and favour the creation of activities and employment

�ERDF :48.783.685

�State :26.678.580

�Région :36.237.131

�Local :0

�Other State department : 11.753.820 �Private :190.530.781


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Programme Objectives Amount in euros

Objective2

2000-2006

�Measure 2.1.6 :: Environnemental management

??

Objective2

2000-2006

�Measure 2.3.4 : Educate actors in the environmental and sustainable development domains

??

Objective2

2000-2006

Axis 3: Facilitate territories development and promote cooperation local steps

�Measure 3.21 : Protect, improve and value the living environment

�ERDF :22.562.454

�State :12.699.001

�Region :9.390.858

� Other State department : 31.892.331 �Private :23.782.045

Objective2

2000-2006

Axis 5: Accompany agricultural and rural activities development

�FEOGA-Guarantee : 47.689.000

�State :17.062.000

�Region :21.538.000


Objective2

2000-2006

�Measure 5.3: Environmental protection as regards agriculture, forestry and space management

�FEOGA-Guarantee : 7.622.000

�State :3.113.000

�Region :6.818.000


LIFE-NATURE Global objectives of these three programs: ensure the protection, conservation and management of natural areas of high ecological value, and especially rare or particularly vulnerable areas.

LIFE-NATURE � LIFE " dry Lawns "

�Europe: 44.153

�State : 22.077

�Region : 8.831

�Haute-Vienne District : 8.831

�CREN: 4.415

LIFE-NATURE

1996-1997

�LIFE-" Natura 2000 " - " Dry moors and peat bogs of the limousine Mountain ":

�Europe: 27.102

�State :13.551

�Region : 7.589

�Corrèze District: 2.168

�CREN: 542

� Other: 3.252

LIFE-NATURE

�LIFE-" Haute-Vézère " �Europe: 183.533

�State : 101.963

�Région : 40.785

�Adour-Garonne Agency: 61.177

�Corrèze District: 8.157

�CREN: 12.235


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3.1.3 Structural policy

Regional policy of Structural Funds :

The Single Programming Document (SPD) established between French State and EC defines the EU structural policy. For Limousin, there were 3 SPD : one over the period 89-93, one over the period 94-99 period, one over the 00-06 period. During these periods, the Conseil Regional du Limousin (Local Government) has been designed to put them into practice in collaboration with SGAR of Prefecture of Limousin (Decentralized Government Department). The priorities, which are the continuity of the last SPD, are the followings:

- strengthen the basic conditions for regional development,

- encourage activities and jobs creation and improve business competitiveness,

- facilitate territorial development and promote local partnership initiatives,

- support development of agricultural and rural activities.

Comparison between 89-93 and 94-99 programmes

The main goal of Objective 5b programme, over the 1994-1999 period, is to develop employment in rural zone and to maintain the population. This programme had three priority axis: preservation of public services and equipment in rural areas (axis 1), economic development (axis 2) and local development (axis 3). These axes are divided themselves into 17 measures.

- Axis 1: preservation of public services and equipment in rural areas

Local governments, arranging only limited resources, cannot face any more the increasing demands of less and less numerous users: rural electrification in the Creuse, the sideboard in drinking water and in gas, evacuation of the household waste… .

- Axis 2: economic development

This axis constitutes the main programme with 69% of the total budget of the Objective 5b programm, among which 49% are allocated to the preservation of the agricultural employment and the quality fields, the development of industrial sector and the transfers of technology.

- Axis 3: local development

This axis concerns the development of the patrimony and the cultural development.

Limousin received a financial allocation of 1 091,6 millions of francs over the 1994-1999 period. The credit amount programmed on December 31 1999 was 1 081,7 millions of francs, that implies a programming rate of 99,1%. The difference could essentially be explained by a belated notification of a supplementary allocation of 44,3 millions of francs for the RETEX program. It did not be possible to program entirety of these credits in satisfactory conditions.

12 831 operations were programmed during the 94-99 period, of which 10 831 were in Objective 5b programme. An analysis of the localisation of grant-funds actions in Limousin on this period indicates that the whole region benefited from the community credits. The idea, according to which there would be territories without projects, does not seem verified.


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But this good coverage of the region is mainly due to EAGGF-Guidance. It is explained by the nature of the measures financed by these funds (structures and forest road, collective equipment, maintenance of employment in rural area, quality process in farming, forest production, natural and built heritage). The ERDF intervention is more concentrating both geographically (transport infrastructure (A20, A89, RCEA)) and financially, the projects financed by the ERDF are generally higher than 600 000 francs.

Synthesis of the principal community interventions in Limousin (1994-1999)

(in francs) Final Allocation Dotation finale

Programming

EAGGF 440 172 460 440 009 347

Objectif 5b ERDF 300 440 000 300 426 520

ESF 139 801 374 139 181 322

Total 880 413 834 879 617 189

EAGGF 57 452 373 57 445 115

Leader ERDF 68 331 524 68 229 745

ESF 5 312 649 3 707 240

Total 131 096 546 129 382 100

4 272 895

Retex ERDF 46 069 150 39 574 434

ESF 985 320 985 320

Total 47 054 470 40 559 754

Konver ERDF 33 050 401 32 150 401

EAGGF 497 624 833 497 454 462

TOTAL ERDF 447 891 075 440 381 100

AMOUNT ESF 146 099 343 143 873 882

Total 1 091 615 251 1 081 709 444


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A global analysis of the actions by axis confirms these remarks. Note nevertheless that at the local level, there is a concentration of axis 3 (local development) funds on the area of the "plateau of Millevaches" (East of Limousin, in the Massif Central). This concentration is explained essentially by the weight of measures linked to the improvement of housing on this area. (cf Annex Structural Funds)

Programming of projects by years:

Number of projects Programmed amounts

1994 48 6.1 M€

1995 1516 121.2 M€

1996 2031 150.3 M€

1997 1755 132 M€

1998 1738 126.1 M€

1999 3119 293.8 M€

Total = 10207 829.5 ME

Repartition by district :

% of projects % of total budget

Corrèze 37% 39%

Haute-Vienne 33% 36%

Creuse 30% 25%

The programming rate is quite significant : Axis1 : 119 %, Axis 2 : 145 %, Axis 3 : 131 %. The programmed amounts were so increased by 9% (+48.3 M€), essentially thanks to better mobilisation of private funds (18.6 M€) and of public funds others than those of State (+ 19.4 M€).

In 1994, the number and the amount of programmed projects are very low because the SPD had been signed and approved only in December 1994. From 1995 to 1998, the number of projects by year is stable, between 1500 and 2000. In 1999, the last year of programme, this number doubles.

The submitters of projects are very diversified : associations, public local structures, public cooperative establishments, organisations and union professions, formation organisms, region and districts, corporations and businesses, State, and many private entities.

The introduction of the European structural funds clearly strengthens the political actions to the heart of policies of the region since 10 years. Between the 89-93 and 94-99 periods, there were real modulations in the political choices.


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Evolution of the share of each supported field between the 2 objective 5b programmes

0

10

20

30

40

Indus trial s

ector

craft i

ndus try

Agricultu

re

fores t in

dus try

Tourism

Training

Trans fert d

e tech

nologie

Road infra

s tructu

re

regional a

nd s patial d

evelopm

ent

cultu

ral a

ction in

touris

m secto

r

Environm

ent

objective 5b (89-93)

objective 5b (94-99)

Comparison between 1994-1999 and 2000-2006 programmes

The 94-99 Objective 5b programme was characterized by a rather large dispersion of the subsidies (10 831 operations). For the period 2000-2006, the European funds will be more concentrating on likely significant operations to have a lever effect on the economical development of the Limousin. The definition of the zoning in Limousin for the period 2000-2006 expresses notably this strategic choice to concentrate the structural funds on major operations for the development of the region. For example, Limoges-Le Palais, commune in that is localised "Technopôle ESTER" technological area, and Ussac and Saint Viance, communes nearby Brive on which structuring activities area between A20 and A89 highways develops, are included in the eligible Objectif 2 area.

The general goals of the Objective 2 programme are the continuity and the expansion of the previous programme. Number of problems of Limousin development (improvement of communication infrastructures, territorial cohesion, reception of new population and activities...) have not disappeared at the end of 1999. The definition of global aims, for the period 2000-2006, must take account of this permanence. The upheavals linked to the evolution of the economic context imply nevertheless to add thereto supplementary aims. Three first principal aims ensure continuity in applying the objective 5b programme :

1. Fight against the unemployment and development of the employment: in 1999, 8% of the active population is yet unemployed and the total employment continues to diminish. Even if many dynamism factors exist and few sectors progress, the activities of the Limousin must again be supported. A special effort should have therefore to be done to stimulate the business start-up and develop new activities in Limousin.

2. The regional development by improving the appeal of the rural areas: this aim remains a priority of the Objective2 programme. Imbalance is enough important


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between the West of the region, which concentrates population, activities and services, and the East of the region, characterised by a weak density and an important ageing population. The non-agricultural activities have to be developed in order to compensate the decrease of the agricultural employment. Even if the highways (A20, A89 or RCEA) might empty some territories of their activities, they constitute also an opportunity in terms of opening-up and local development. Receipting new population, working in the urban area but living in the rural area is a way to maintain economic activities in this rural area. This aim goes also in the direction of a governmental will to promote the cooperation between urban and rural areas.

3. The reception of new population to foil the population loss: this aim had also been identified in Objective 5b programme, as a specific goal of Limousin. In fact, the net migration is positive. The new migrants constitute a resource for the region, bringing often a know-how, capitals and projects.

These three aims have to be completed by complementary aims, given the improvement of Limousin already accomplished, the evolution of economical context and the implementation of cross policy. In the information society, a main aim is to reinforce the human and immaterial resources of the Limousin, so it constitutes a first supplementary aim.

The social cohesion, the preservation of environment and the sustainable development constitute the cross thematic policies on the whole European Union. Limousin contributes them according to its difficulties in these issues. The operational aims of Objective2 programme are therefore defined according to the specific issues of the Limousin. The environmental profile of the Limousin does not reveal special black point but punctual difficulties (closing of the landscapes by the enforestation, scattered habitat in the peri-urban areas, pollution broadcast sources). The environment has to be looked upon as a natural wealth to preserve and to promote. So Natura 2000 network constitutes a priority for Limousin. About social cohesion, the male/female equality is contrasted in Limousin. The female activity rate is higher than the French average. The growth of female employment seems better than male employment growth. But women have less qualified jobs with more precarious contracts. A other issue of social cohesion is the urban/rural equality. Activities, services and populations is concentrated in urban area (particularly Limoges and Brive). Thus, the Objective 2 programme underlines the necessity to promote an aim of social and territorial cohesion.

LEADER Programme

The LEADER II programme declines itself in two major axes : create both the conditions of self-development and the good reception conditions.

After the relative success of the LEADER I program in Limousin on the period 1989-1993, this experimentation was continued by LEADER II for the 1994-1999 period. LEADER I had essentially allowed the implementation of two local action groups (LAG), one in Creuse and one on "Millevaches" area. The main goal is to fight against worsened population decrease. In a general way, the actions of LEADER I seem positive: they had strengthened the quality of local activities and the partnerships on the territory of each LAG.

The general objective of LEADER II consists in fighting against the depopulation of the LAG area and against the abandoned lands. This strategy declines itself in two major axes:


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1) Create the conditions of self-development by the restoration of a own identity, the maintenance of personal and business services, and the advising to implement the projects,

2) Create a reception facilities of tourists and working people and strengthen economic development by implicating the citizens, promoting inside and outside the picture of area (quality environment), revitalising the associative activity.

Programming of LEADER II programme in Limousin at 17/01/2002

Leader II Programme Foreseen Amount

Programmed Amount Paid Amount

Thousand of Euros

Thousand of Euros

% of foreseen Thousand of Euros

% of foreseen

ERDF 10417.15 10401.7 100% 7177.1 69%

EGGAF - Guidance 8758.5 8757.4 100% 6099.3 70%

ESF 810 565.1 70% 381 47%

Total E.C. 19985.6 19724.2 99% 13657.5 68%

State 0 5973 0% 2402.7 0%

Others 22807.4 21591.4 95% 16507.2 72%

Total Public allocation 22807.4 27564.2 121% 18909.9 83%

Total Private Investment 12811.2 34496.9 269% 29851.7 233%

GENERAL AMOUNT 55904.3 81785.5 146% 76076.6 136%

Advancement of Engagement and payment in Leader II programme of Limousin:

Total cost

Structural Funds

(1)

Engagement

during theyear

Engagement

since 1994

(2)

% of

engagement

(2)/(1)

Payment during the year

Payment Since 1994

(3)

% of

Payment

(3)/(1)

1997 Million of ECU

50.1 18.2 3 18 99% 2.8 7.5 41%

1998

Million of €uro

50.1 18.2 0 18 99% 7 13.1 75%

1999

Million of €uro

55.7 20 2 20 100% 0 14.2 71%


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The advancement of the financial plan shows that the foreseen programming has been correctly implemented because 99%-programmed funds already had been engaged in 1997.

The LEADER II actions are put places by the LAG. In Limousin, 5 LAG exist : - LAG Millevaches,- LAG Châtaigneraie limousine, - LAG Nord Haute-Vienne, - LAG Dordogne Corrézienne, - LAG Creuse.

LEADER II programmed action on the 94-99 period by the limousin LAG

Area Objectives Financing

(%)

Programmed Financing

(thousands of euros)

LAG Millevaches

-create new reception conditions and promote the built heritage

-favour the business start-up and the promotion events

-U.E : 28.92%

- public : 29.04%

- private : 42.04%

-U.E : 3580

-Public : 3595

-Private : 5205

LAG Châtaigneraie limousine

-development

of the traditional fields of the chestnut

-rural and cultural tourism

-revitalisation of local craft industry

- UE : 28.62%

- public : 47.27%

- private : 24.1%

-UE : 2406

-Public : 3974

-Private : 2026

LAG Nord Haute-Vienne

-development of the built heritage

-reception of the news farmers

- improvement of both rural life quality and public services to revitalise rural area

LAG Dordogne Corrézienne

-development of rural and cultural tourism

-promotion of the local products

-U.E : 34.8%

-Public : 36.9%

-Private : 28.3%

-U.E : 2542

-Public : 2696

-Private : 2068

LAG Creuse

- enhanced value of the products

- development of local reception facilities

-Creation of promotion events

- U.E : 35.4%

- Public : 38.6%

- Private : 26%

-UE : 6173

-Public :6735

-Private : 4528

TOTAL

LEADER II

- UE : 24.1%

FEDER : 12.7%

FEOGA : 10.7%

FSE : 0.7%

- Public : 33.7%

- Private : 42.2%

- UE : 19724.1

-Public: 27564.1

-Private : 34496.9


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For each LAG, actions are very different. For example, on the 94-99 period :

GAL Leader Millevaches

- Organisation of Annual Meeting Millevaches

- -Grouping of tourism actors of Millevaches

- -Creation of welcome farms

GAL Châtaigneraie limousine (limousine chestnut grove)

- Recruitment of an employee by the federation of the Châtaigneraie limousine

- Creation of a collective butcher shop to sale direct local holding products

- Better use of local know-how, "the earth and the chestnut"

- Make-up of a network of rural territories, organisation of meeting

GAL Nord Haute-Vienne

- -Creation of a unique reception and start-up office for new holders

- -Operations of revitalisation of economic activities in the area

- -Make-up of a Resources and Information Centre for Associations on the whole LEADER area

- Promotion of tourism, history and culture and of the Road of the High Limousin

GAL Dordogne Corrézienne

- Experimentation of an workshop on the multimedia techniques

- Revaluation of the straw wine

- Guides paths of interregional hike on the Valley of the Dordogne

- Network coffees in the rural area of the Dordogne Corrézienne

GAL Creuse

- Collective Workshop "street of the craftsmen"

- Cyber network "Creuse education"

3.1.4 Another significant policies as transports, etc…

Except the CAP and structural policy, other European policies are not significant in the Limousin development. The few carried out actions did not be subjet of financial synthesis and impact studies. The most were financed by many different funds and the European total amount, often coming from the FSE, is weak. These actions essentially are linked to the regional policies of transport and of R&D (see 3.2 State aids)

WHETHER SIGNIFICANT, THE ROLE OF THE STATE AIDS

French State Aids in the regional development take place by three main ways : as a part of CPER financing, as a compensation of structural funds or as a direct allocation to a specific regional action in a national programme, mainly towards improvement of road infrastructure.

So, the State aids can not be distinguished in their implication on regional policy of structural funds and CPER.


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Since 16 years, Limousin Region and French State develop a five-years or six-years contractual policy (CPER) based on different prospective and evaluative studies (Limousin 2007, Limousin 2017, evaluations of specific action,…). The objective is the long term development of the region. The last contract is CPER 1994-1999 and the current one is CPER 2000-2006. The CPERs are co-financed by the State and the region. Since 10 years, they constitute regional development model. The main axes of these policies are:

•

•

•

human and immaterial resources (education, research and technological development, communication and information technology);

Note that European Social Funds also support this first axis by granting some Ph-D students of the University of Limoges, working on European or regional questions.

(ii) economic growth (agriculture (quality, employment, rural development), sustainable development, forest activities, industrial sector (investment, creation and take-over of enterprises, international integration), service, tourism and commercial activities),

(iii) social and spatial cohesion (transport and communication infrastructure, environment (management of natural areas and water resources, pollution control), reception policy, cultural and sports development, partnership of local authorities, inter-regional co-operation.

3.1.5 Transport policy in Limousin

Since 1987, a national programme towards road infrastructure in the central France are going to aim at transforming national roads in highways. It concerns the Paris-Limoges-Toulouse road (A20), the Clermond-Brive-Bordeaux one (A89) and the Lyon-Poitiers-Bordeaux one (RCEA, Road from Central Europe to Atlantic).

The amount of CPER on 1984-1988, devoted to road infrastructures, was 125 MF (50% State, 50% Region). The 89-93 CPER has financed a total amount of 590 MF decomposed as follows : 150 MF from State and 150 MF from Region in the programming of CPER and 290 MF of direct State Aids in the framework of national programme to make up for Massif Central road infrastructure. In 1993, only A20 highway is begun. So the CPER on the 1994-1999 period increase the programming amount to 852 MF, 75 % from French State (639 MF) and 25 % from Region (213 MF). In 1995, the weak improvement of road network has brought State Government to give 190MF supplementary allocation to speed up road work. In 1999, at the end of the third CPER, the A20 highway is open, the RCEA and A89 ones are always working in progress.

3.1.6 R&D and technology policies in Limousin

R&D and technology sector of Limousin in comparison with the other French regions is slow developed both on jobs and means. Thus it is an essential competitiveness factor for regional economic development. The regional strategy about the development of technology is that : more people could use the information technologies, stronger will be the lever effect on the development of specialised businesses and higher will be the creation of jobs. Globally all the implemented actions have been paid by State aids of the Ministry of Industry, by ones of the Ministry of Research and Technology, by regional subsidies and European Social Funds. Except the participation of structural funds in the financing of few projects, the European contribution in the matter remains limited.

The main succeeded actions are Technopole ESTER, Acti Limousin and Limousin Technologie.


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Technopole ESTER (space of scientific and technological transfers)

Created in 1992, granted by State, Region, European Union and Town of Limoges, Technopôle ESTER constitutes a factor key of efficiency of research in Limousin.

The Technopole ESTER is a business centre which receives many students in the ENSIL, National Superior Engineering School of Limoges and a increasing number of businesses (in 1996 250 students and 120 jobs, in 2000: 390 students and 930 jobs)

It has for vocation to place the businesses to the heart of an international scientific network and to favour development of transfers of technology on four main leading-up fields:

- industrial ceramics and materials coatings

- electromagnetism, microwave and photonics engineering

- genetics for the agro- and bio-technology industries

- water and waste treatment, pollution management.

It develops currently 4 platforms that were supported by the European policy : one on mecatronic, one in Correze on the wood trades, one on the civil engineering and the last in Creuse, that concerns the techniques of building restoration. These platforms aim at constituting networks of together professional, high schools and university laboratories.

ACTI LIMOUSIN, program of concrete applications of the information Technologies

The ACTI Limousin program, proposed to the European Commission in 1996, was kept in the framework of the call to RISI project relating to the integration of the notion of " Society of information ". In 1997 and 1998, the 250 000 ECUS european ERDF supports 50% of the total ACTI Limousin program budget, the other 50% came from State and Region. The Limousin is a member of Eris@, European Regional Information Society Association that counts 32 European regions in 2000. ACTI Limousin has two principal objectives: 1-Stimulate the uses and the good practices of the information technologies; -2 Give to the economic businesses to the possibility to pull out an added value from their own know-how by using technologies of information.

LIMOUSIN Technologie

LIMOUSIN Technologie is an association, financed by the State aids (Ministry of the industry, Research and Technology), by regional subsidies and by European Social Funds. Limousin Technologie has set up in Technopôle ESTER. Its activities allowed develop a wide partnership between businesses, higher schools and organisms of research and technology by organising meeting and workshop opened to researchers, businessmen, teachers…. Limousin Technologie mainly assists SMEs and craftsmen in the building, the financial plan and the implementation of their innovation projects.


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4 ASSESSMENT OF THE IMPACT OF THE COMMUNITY POLICIES RELATED TO THE SOCIAL AND ECONOMIC COHESION: MAIN RESULTS

It is difficult to estimate with precision the contribution of the different European policies on economic and social cohesion because different financial resources are implicated in the actions in favour of the regional development. Besides, all the policies (CAP, regional policy of structural, CPER…) have very near intervention fields. The observed effects are with difficulty attributable to alone policy. At last, we cannot distinguish the effects induced by the policy from effects of exogenous factors.

IMPACT OF CAP ON ECONOMIC AND SOCIAL COHESION

The first economic result of the PAC is to support agricultural income in Limousin. Between 1990 and 2002, the global agricultural income (net added value at factor cost) increases noticeable in Limousin (cf annex AGRI). Between 1991 and 2001, the annual growth rate of agricultural income per worker is 4.9% (4.6% between 1998 and 2001). It is a very good result, on the same periods, the national rates are 2.6% and –0.1% respectively.

The CAP orientations improved productive structures and increased limousine agricultural income by developing extensive product, increasing professionalism of holders and avoiding the decrease of used agricultural area. More and more holdings increase their used technical level. They have better mechanical and computer equipment. The low productivity has slowly grown since 10 years, but the mainly way to improve the competitiveness of Limousin agriculture remains the quality of production.

The CAP measures allow investments toward a better adaptation to the new market conditions and to the expectations of the economic agents. The implementation of CAP in Limousin has increased the diversification of agricultural activity (tourism, fish farming …), and brought about a more respectful production to the natural resources, the landscape, the bio-diversity. There is no direct effect on number of employment.

The subsidies on products have increased the number of bovine animals since 1993, they have maintained other breeding activities by limiting the fall of suckling cows and ovine livestock and increasing the caprine one. The subsidies for holding have developed an extensive and diversified agriculture and in the same time they have allowed improve on protecting environment and developing quality of production.

These CAP effects are accentuated by the effects of State aids (DJA) on setting-up of young holders. The DJA in Limousin, more than in the other French regions, allowed maintain agricultural activity and in the whole, rural employment, population, and economy.

The effects on life quality are rather difficult to estimate, but it nevertheless seems that the life quality is more preserved in many other European regions. The main reason is following as. The low density of population, wide landscape and forest, low urbanisation, which may be economic weaknesses, ensure however the good life quality. As the Limousin agricultural development don't seek the high productivity but seeks the quality of products, it perpetuates the high environmental quality of the Limousin.

The CAP, in coordination with State aids to agriculture, allows the maintenance of more dynamic agricultural sector and therefore a support of rural activities and trade in flimsy economic rural area. But the CAP supports should continue, in a more selectively way,


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to accompany the modernisation of limousine agriculture regarding to ensure agricultural and rural development, which is a source of the Limousin economic and territorial cohesion.

ENVIRONMENT IMPACTS ON ECONOMIC AND SOCIAL COHESION

The European measures in favour of the environment can not be dissociated with the national one. Moreover, the environment is not an alone activity sector, many actions in favour of environment are included in wider projects.

So few data are available to quantitatively estimate the direct impacts on environmental sector. Some jobs have been created in the natural reserves or in the research laboratory on water resources. Further, many implemented actions, particularly wastewater treatment, industrial and household waste treatment, induce direct effects on employment and economic activity. They also have indirect but no quantified effects in long term : better infrastructures favour the setting-up of population and businesses.

Between 1994 and 1999, the impacts of regional environmental policies (CPER, Objective 5b programme) are mainly positive in terms of landscape protection. During this period, some sites were classified as being of community interest. But, paradoxically, this establishment of these protection areas (Natura 2000), has done that it is forbidden to exploit their wealth, notably the forestry one. Finally, the Objective 2 programme integrates the environment into businesses by means of the Program Regional of Environmental Management.

STRUCTURAL POLICY IMPACT ON ECONOMIC AND SOCIAL COHESION

The high coordination between CPER and the policy of Structural Funds can't allow distinguish their own impacts.

Moreover, these impacts can no be precisely estimated because of lack of available indicators of results. But an ex post evaluation on Objectif 5b programme, on the 1994-1999 period, has been carried out. The conclusions on economic and social cohesion are the following as.

The efficiency rate of the programmed measures (paid on programming amounts) are variable in according to the axes : - Axis 1: 58% - Axis 2: 56% - Axis 3: 25% . 72% of projects are judged, on the basis of the invested amount, as having a positive impact on the regional development.

Three general effects on Limousin cohesion could be found : the maintenance of the level of local employment, the improvement of productive investment, the intensification of the local partnership. These effects are strengthened by the coordination with the CPER measures.

Some orientations of regional policy seem have positive impacts on economic and social cohesion.

The choice to support measures of receipt facilities towards population and economics activities has stimulated the setting-up of new people and businesses, mainly in rural area, and so has contributed to reduce imbalance between rural and urban area. The supports of


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craft industry are particularly efficient, many employment have been created in this sector in the whole Limousin.

The regional orientation towards the technology aims at keeping national and international competitiviness of Limousin. The regional policy on R&D and technology, implemented since more than 10 years, is concentrated mainly around Limoges and Brive, where are mainly localised the laboratories of the University and leading-edge businesses. Few projects are granted in rural area. State and regional subsidies do not produce effects on internal cohesion in Limousin, but they are fundamental in regarding to convergence of Limousin in the EU. They allowed increase in technological knowledge (even if it is difficult to measure it). Note that the research productivity per inhabitant in Limousin is higher than in Ile-de-France. The creation of technological centre (Technolopole ESTER) stimulates the local innovation since 1992. Limousin is on the 12th rank of the national competition of the businesses innovating. More recently, the ERDF financed up to 50% of ATCI-Limousin (Acticiel program). This action has allowed the star-up of 43 multimedia public points, the creation of about 30 jobs.

This orientation of regional policy on ICT has both economic and social impacts. It favours the start-up of business. It also had indirect (but no assessable) effects : creation of employment in closely related sector, improvement of inside and outside representation of Limousin, stimulating development services towards SMEs, development of institutional website to provide public facilities by Internet network. The Objective2 programme on the period 2000-2006 will continue to fight the "backwardness in numerical communication" by supporting the high debit setting up in the region.

During the 1990-2000 period, the European Transport policy has been no significant in Limousin (with the exception of the road of wood, 334 km of tracks and forest roads were created or improved but the storm of 1999 has all destroyed). Thus, the improvement of transport infrastructures is mainly due to CEPR, State aids and the structural policy. The major highway liaisons are in way to finish. Structural funds on the period 2000-2006 will participate only to finance the end of conversion work of RCEA into highway.

However the regional priority is very clearly the actions in favour to revitalise agricultural and forestry sector : the agricultural sector was granted by about 38% of programming amount and the forestry sector by 10,5%. The continuous support for forest industry can be allowed a transformation of this sector and a reinforcement of its competitiveness, even if this latter was very weakened by the December storm 1999.

For agriculture, the regional measures are concentrated to the setting-up of young holders and the takeover of holdings. The mainly financial impacts are a better cash flow, an increased investment. Further, few effects can be emphasised on the creation of employment in granted holdings and on the increase of the own investment compared to the initially foreseen one.

Globally, all the agricultural subsidies of structural funds have fewer impacts than DJA (State aids) that yet corresponds to lower amount. The structural subsidies imply one time out of 10 a new employment whereas the DJA creates it one time out of 7.

The lever effect of subsidies on global agricultural income is quite weak. The indirect effects are also very weak : the subsidies constitute chiefly an incentive of improvement of holding.

The main obtained effect is the maintenance of number of holding, which renews generation of holders and allows a diversification of production.


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The State aids (DJA) are the key of impacts on regional agricultural development, other supports to agricultural sector expand them.

IMPACT OF LEADER ON ECONOMIC AND SOCIAL COHESION

The impact of the implemented actions on the Limousin within the Leader II programme is difficult to estimate because they are essentially applied into small specific areas. Even if these actions only had a limited impact on the social and economic cohesion, the positive impact is locally undeniable. In fact, the Leader II actions allowed fight against depopulation in the powerless rural areas. All the interventions do not create employment, as it was the case for the creation of a collective butchery in Chestnut grove limousine. They nevertheless allowed the maintaining of a minimal employment level in the concerned area. The Leader II programme especially plays a role for the social cohesion in the isolated rural territories. They stimulate the partnership between public services, local authorities and private submitters of projects and they bring about the local population to invest in development of its rural territory. The programming % of the private expenditures in Limousin LAGs area reaches in January of 2002 the considerable level of 269%. It is increasing since ten years (147% in 1994).

Globally, the policy of structural funds seems to be a powerful lever effect on the mobilisation of the other public or private financing sources. For each unit of European paid amount, the regional compensation (mainly from private funds) is 5,3 units (the average of the whole french region is 3,8).

CONCLUSION:

The impacts of European policies on Limousin economic and social cohesion are intricate and not clearly established. Thus, without European, national and regional aids, the agricultural sector in Limousin would be surely collapsed. It seems that these policies contribute to support the regional development, mainly in rural area. This conclusion is not surprising because it is the main objective stated by the EU.

The weaknesses of the region are yet too important to considerate that the convergence is carried out. The role of European, national and regional actions in favour of regional development is essential to improve the economic and social cohesion in the long term within the Limousin and beside the others European regions.

5 ANALISING THE COORDINATION AMONG THE SET OF COMMUNITY POLICIES

It seems that, in the Limousin, the relation Europe-State-Region is globally coherent and efficient. The communication between administrative operators and beneficiaries appears important and satisfactory. The transparency and the evaluation of the policies are made in a careful way as far as the Limousin is an experimental region within the framework of the evaluation of public policies. So, if the coordination is quite satisfactory at the level of policies conception, it should be improved in its implementation.


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ACCORDING TO LEVELS OF ADMINISTRATION

5.1.1 At the planning level

Structural funds

The regional policies planning are based on territorial diagnostics, propective studies, like "Limousin 2007" and "Limousin 2017", strategic documents of orientation, meetings, thematic forums (onto three departments) and debates (in all the territorial level).

The aim is to define the political strategies to economic, social but environmental development.

The representatives of the regional and local authorities, the economic and social partners and the representatives of non-governmental organisations participate jointly in the planning of these policies and so the co-ordination is so horizontal as vertical.

•

•

Horizontal: SGAR, Conseil régional du Limousin, deconcentred services of the concerned Ministries (DIREN, DRAF, DDE,…) ;

Vertical: Europe (Representative of the European Commission), State, Region, Chambres consulaires (CRCI, CRA, CRM), Districts, Conseil Economique et Social Régional (CESR) and economic and social partners, associations .

Besides, the coordination appears also into a co-presidency (the Prefect de la Region Limousin and the President of the Conseil Régional du Limousin) of the committee of monitoring and of the committee of steering.

Many local public and private partners were quite well associated to the elaboration of the program but some partners (Districts, CCI) would have wished to be more integrated in the discussion relative to the elaboration of the program.

CAP

Concerning the CAP, the main measures are determined during regional conferences of agricultural orientation (CROA) and by regional conferences by products. These conferences lead then to the steering committee. The coordination is also horizontal and vertical:

•

•

Horizontal: DIREN/DRAF (especially for agro-environment measures)

Vertical: State (SGAR), Region (DRAF and Chambre Regional d'Agriculture), Districts (DDAF), professional organisations (OP) and national inter-professional organisations (ONILAIT, ONIFLHOR et OFIVAL).

The coordination of the planning is globally efficient but seems fail in the program of national Offices (OFIVAL, ONILAIT and ONIFLHOR).


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Environment

The coordination of the environmental regional actions is also horizontal and vertical.

•

•

Horizontal: DIREN / DRAF (notably for the agri-environmental measures), DIREN / DRIRE, DIREN / DDE, and deconcentred services from the other regions for specific measures implicating areas stretching out the Limousin, like the Natural reserve Périgord – Limousin

Vertical: State (SGAR), Region (DIREN), the other State services (water Agencies, air Agencies, ADEME).

The coordination of planning in environmental regional actions is satisfactory even if the environment is too often subjet of measures in other regional policies, mainly in the structural policy.

R&D and Technology

There is no specific regional policy of R&D and technology. A active partnership exists between Conseil regional du Limousin and the University of Limoges. The projects of R&D and Technology are managed by different local or national institutions in according to their nature (industrial, military, university, telecommunication…).

5.1.2 At management level

It is especially the competent services of each institution that take care of the management of the programs. The examination of files is carried out at the same time by the regional and local services of the State in according to their competencies. These services group together in Technical steering committee, to give their views about the submitted projects and to select those that are programmed. The administrative operators manage the implementation of selected projects, and give the technical advising.

The administrative operators of programs seem to find that the community working procedures, particularly management of the European credits, are complex and that they change too quickly. So they think that their work is less efficient.

5.1.3 With regard the transfer of results

The evaluation of the policies is very obvious : many ex-ante evaluations, ex-post evaluations or in middle-term evaluations have been carried out. These evaluations allow to draw up balance sheets and to lead the future policies. So, the ex-post evaluation of the Objective 5b programme and the ex ante evaluation of the Objective 2 programme allowed a better definition of the measures of the latter. But these evaluations only concern the structural policy. And as data are no available, no indicator of impact and of results can be established. So the usefulness of the evaluations is limited. But it is better than no evaluation like in the case of the other policies (CAP).


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However, we note some other problems:

•

•

•

The results of evaluation are no well broadcast and their uses are restricted to the planning of new programmes. There is no transversal use of results in order to improve the efficiency of the management and of the implementation of projects.

Communication should be improved: indeed, there is not an Internet site that allows share the information and the experience of the administrative operators. The web site should allow the beneficiaries to know, on line, the situation of their file. Furthermore, the training could be proposed to the managers and administrative operators in order to keep up to date about the management of European policies.

The advising of the European programs should be more efficient by strengthening the technical support.

The broadcasting of information, the technical advising, the monitoring and the evaluation of the community policies should be improved.

5.1.4 In terms of effects

Only the implementation of structural policy has been subject of effect studies. It seems difficult to clearly estimate the impacts of structural policies because the available indicators are mainly indicators of realisation and there is no indicator of result and of impact. Thus, the indicators of realisation allow calculate efficient rates (ratio between the realisations and the foreseen initial physical objectives).

Furthermore, the difficult coherence between the different measures was sometimes able to compromise the legibility of the programme and to reduce the effects of synergy between the different partners. Globally, the measures were approached by theme and not in a transverse way. So, this lack of internal coherence within the operational program often has favoured many projects in accordance with the planning and monotoring conditions of the detriment to a logic of global regional development.

ACCORDING TO THE SECTORIAL POLICIES

The co-ordination between the different measures of the European policies (the structural policy and the CAP, or the structural policy and the European policy of the environment) is not systematic.The present analyse only takes account of these that present common elements towards the cohesion.

For instance, concerning the CAP, it is very difficult to list the measures of the pillar 2 (rural development) and to appreciate the effects. But globally, these measures are not the same that those expressed in the SPD of structural policy. Thus, we can conclude that the actions of the two policies are often additional. Consequently, the co-ordination between them seems be quite satisfactory.

Also, about the Environment, the measures of the program LIFE are globally different from those of structural policy. Only one axis is common about the nature protection.


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AMONG THE MOST RELEVANT POLICIES

Co-ordination among the most relevant policies in Limousin

E.g. Among the CP’s of greatest impact

Stages of co-ordination CAP and environnement

CAP and State Aids

(CPER)

Environment and State Aids

(CPER)

Global evaluation

Design, conception, planning High High High High

Management High High High High

Implementation, application on the territory

Low Medium Medium Medium

Spreading of results, lessons learnt

Low Low Low Low

Co-ordination among the most relevant policies and structural policy in Limousin

E.g. Among the CP’s of greatest impact

Stages of co-ordination Structural policy and environment

Structural policy and CAP

Structural policy and State Aids (CPER)

Global evaluation

Design, conception, planning High High High High

Management Medium High Medium Medium

Implementation, application on the territory

Low Medium Medium Medium

Spreading of results, lessons learnt

Low Low Low Low

6 GOVERNANCE ISSUES

DECENTRALISATION

The whole local services were quite well integrated in the implementation of the whole community policies (CAP, Environment, structural policy).

The decentralisation of competencies from State to local services attempts to transform the regulation and accounting logic of the projects to a advising and aid logic.

Since few years in France, the Acts of regional development (LOADT 1995, LOADDT 1999) bring about the constitution of new local communities, (communauté de communes, communauté d’agglomérations or groupements intercommaunaux, Pays…). The issue will be therefore to associate these new local authorities in the process decisions and to create adapted methods of implementation. Moreover, at the beginning of 2003, the French


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government has promoted a new plan of decentralisation, which should accelerate the transversal involvement of the whole local authorities in the regional development policy.

If this institutional change comes partly from the EU, the political choice has been done at the national level. So at the local level, it does not appear necessarily as an improvement, mainly in the management. This institutional reform would increase the local competencies, but the local services can not do them without a higher allowance of human and financial means.

About the Environment, since several years, awareness programme of many environmental associations has coming to implement many projects associating different partners, particularly within Haute Vienne and Corrèze.

Since 10 years, the partnership, between the whole authorities in the structural policy, has improved in the implementation of projects. In the objective 5b programme, 7 projects out of 10 were subject of a real common work between beneficiaries, operators and managers of the program.

TRANSPARENCY

The evaluation studies and the carried-out interviews make known many weaknesses relating to the transparency of the actions.

The broadcasting and the legibility of the information towards the public (and therefore the submitters of projects) and the whole partners are not efficient. A communication plan was elaborated ever since 1997, but it remains insufficient.

The communication between the main operators is not perfect. The different State services are yet highly compartmentalised. A common computer network, in order to manage jointly projects by the European funds, is missing. The current processes are so heavy that it seems necessary to limit the number of operators per measure and to use a single form of submitted file. More straightforward administrative processes would notably imply to define specific attributions of regional and local services. Projects linked to each measure would have to be always and only submitted to the same services (from 1 to 3 according to the extent of each measure).

The financial procedures bring about various remarks. The term of payment towards the beneficiaries is too longer. But many beneficiaries do not provide quickly the proofs of the use of receipted subsidies. The check-up authorities have difficulties to obtain bills from beneficiaries and must repeat the request of proof for the use of paid amounts. The beneficiaries feel the monitoring and check-up process required by the EU as an investigation of frauds. This behaviour shows that the information about the European programming method is not correctly broadcast. But the n+2 rule implies a better management of the policies by stimulating the more regular implementation of projects during the programming period.

The monitoring and the evaluation on regional policies can be improved. The evaluation, its indicators and criteria must be more clearly defined ex ante during the elaboration of SPD, in order that useful data could be stored up by the administrative operators during the programming period.

Nevertheless, the European monitoring and evaluation processes, required to the local authorities, implied a better management of public funds. For example, specific services in


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many local administrations «Europe cells » have been created. They monitor the implementation of the programmes, broadcast information about these ones and guide their evaluation.

IMPLICATION OF PRIVATE PARTNERSHIP

No private financing has supported the action of the environmental policy, notably in LIFE program. Moreover, the private partnership is not much developed. Conversely, the LEADER programme mobilises widely the private partners. They finance more than 1/4 of the whole actions, with a 269% programming rate on the 1994-1999 period. It is in this programme that the private partners were most encouraged to increase their own investment. This tendency can be explained by the main objective of LEADER programme, which is to implicate the local population in the development of its own territory. Since the first structural policy (1989-1993), the private financing strongly developed but there remains lower than the public financing.

OTHER ASPECTS OF GOVERNANCE

Important difficulties get in the way of the efficiency and the implementation of the projects. The main one is the French administrative organisation. In fact, the multiplication of the levels (State, regions, districts, communes, local communities..), despite the willingness of coordination, creates a heaviness of running. So, people don't know the competencies of each service and thus they don't know where they can ask information. Otherwise, the examination of the files is rather long and heavy : a same file often is examined by different administrative services before agreement.

But we can underline that in Limousin, a real model of regional development exists. The prospective studies (Limousin 2007 and Limousin 2017) and the carried out evaluations have allowed clearly define the means to develop the regional economy. So the different policies present a quite good coherence of the whole actions, notably in the development of the rural areas. The collaboration of the SGAR and the Conseil regional du Limousin plays a significant part in this result.

7 CONCLUSIONS

The community policies had quite significant impacts on the regional development, on the cohesion, and on the partnership of the Limousin. Thus, they contributed to the reinforcement of the appeal of the rural area, they have notably allowed support the regional employment or increase productive investment. The continuity of the regional politic orientations, during the successive programmes, seems improve the efficiency of these actions. But the lack of quantitative indicator of impacts mitigates the veracity of the conclusions.

The coordination of policies is quite good, even if different policies duplicate some measures. The objectives and means are well identified, but their implementation is not clearly specified between the different administrative services. The submitters of projects are globally satisfied. But the broadcasting of information is not anyway quite good. Moreover the administrative services have not anyway means to provide a technical support during the implementation.


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The partnership develops. The most of local authorities and the main representatives of private sector are implicated in the elaboration of regional policies. The transparency of the implementation of policies must be improved, mainly by better administrative organisation, by standardising the implementation process (single form for submitted files) and by more efficient monitoring.

8 GUIDELINES FOR THE COMMUNITY ACTION

To improve the economic and social cohesion of the Limousin in the EU, few recommendations could be proposed.

•

•

•

•

•

•

•

•

•

•

•

Favour the economical catching up between the West and the East of the Limousin,

Link up the rural development to the urban one (Limoges and Brive, the main economic urban area must be included in the Community policies to have a level effect on the regional development). So develop the territorial aspect of the Community policies.

Reinforce the competitiveness of farming limousine by the development of the quality of agricultural products. Mainly, it seems necessary to continue the efforts on the communication around the label «Limousin» that will be able to take advantage to the whole production of quality of the region.

Improve the internal and external communication around the strengths of the Limousin to stimulate the appeal of the region.

Develop the partnership between the whole local economic and social participants as in the elaboration of the regional policies of development as in its implementation.

Define wider measures about transversal issue in order that more projects can be eligible and finance to promote a global dynamic for the regional development.

Improve the coordination between the European, national and regional programmes in order that the different financing authorities have the same priorities at the same time.

Lighten the administrative heaviness due to the multiplication of the competent regional levels. Define specific attributions of regional and local services. Use a single form of submitted file.

Shorten the delays for the implementation of the projects : longer is this time, less are the number of submitted projects.

Improve the broadcasting of the results and the knowledge of the program in the field and the technical advising towards the beneficiaries.

Improve the monitoring and the evaluation on the regional policies. The evaluation, its indicators and criteria must be more clearly defined ex ante


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during the elaboration of the programmes, in order that useful data could be stored up by the administrative operators during the programming period.

• Simplify the community working procedures, particularly management of the European credits, which are complex and change too quickly.


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BIBLIOGRAPHY AND DATA SOURCES

Bibliography

- 3ème Contrat de Plan entre l’Etat et la Région Limousin 1994-1999, Préfecture du

Limousin et Conseil régional du Limousin, 1994.

- 4ème Contrat de Plan entre l’Etat et la Région Limousin 2000-2006, Préfecture du

Limousin et Conseil régional du Limousin, 2000.

- AGRESTE collection Limousin, collection Cahiers, Collection Chiffres et données

Agriculture

- ARDILLIER Françoise, BALABANIAN Olivier, Etude « Performances et territoires :

l’agriculteur dans son territoire », Rapport d’enquête pour la Chambre Régionale

d’Agriculture du Limousin, Département de Géographie, Université de Limoges,

1998.

- BEAUGENDRE et FOLLIOT, La France sans fonds structurels, Rapport d'information

n°701, Assemblée Nationale 2003.

- Bilan des évaluations en Limousin, Rapport Final, C3E, 2001.

- BONNISSOL, Les fonds structurels comme outils de l'aménagement du territoire,

Conseil Economique et Social, 2003.

- CARRERE Gilbert : Le transport en France, Presses Universitaires de France, 1997.

- Complément de programmation de l’objectif 2 du Limousin (2000-2006),

Préfecture de la région Limousin, Conseil Régional, 2003.

- DATAR, Le schéma de développement de l’espace communautaire, La

Documentation française, 2002.

- DATAR, Etude sur les objectifs comparés des DOCUP et des CPER (2000-2006),

réalisée par SEGESA et MC2,

- Direction générale de l’Information et des Relations publiques, Le Limousin dans

l’Union Européenne, Office des Publications Officielles des Communautés

Européennes, 1999.

- DOCUP de l’objectif 2 des fonds européens, période 2000-2006, Préfecture de la

région Limousin, SGAR, 2001.

- DRIRE, Ministère de l’Ecologie et du Développement Durable, L’environnement

industriel en Limousin, 2002.

- Evaluation de la politique d’aide au développement local, rapport final, CRIDEL,

1993.

- Evaluation ex-ante du DOCUP Objectif 2 du Limousin pour 2000-2006, tomes 1 et

2, Quaternaire Développement, 2000.

- Evaluation ex-post du programme de développement des zones rurales Limousin

1994-1999, Quat'Alyse, 2001.

- Evaluation intermédiaire du CPER et du DOCUP en Région Limousin, rapport final,

MC2 Consultants, 2003.


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- Evaluation intermédiaire du DOCUP Objectif 5b, rapport final, Quaternaire

Développement, 1996.

- GOUGUET Jean-Jacques, ORTIZ Laure : La territorialisation des politiques

environnementales, CRIDEAU-CNRS/INRA, non-daté.

- GUILLAUME Thomas : L’économie française à l’aube du XXIème siècle, Economica,

2000.

- HOUEE Paul : Les politiques de développement rural, 2ème édition, Economica,

1996.

- IFEN-DIREN, Les régions et l’environnement : les données, 2001.

- INSEE Limousin Collection Economie, Collection Revenu.

- LAJUDIE Benoît :Limousin 2017, rapport général, Région Limousin, 2000.

- Le diagnostic territorial du Limousin, RCT, 1998.

- Limousin 2007, tome 1 : rapport général, Editions du Limousin, 1988.

- Limousin 2007, tome 2 : rapport des groupes de travail, Editions du Limousin,

1988.

- Limousin 2017, état d’une prospective 1991-1993, Editions du Limousin, 1993.

- MAYANOBE Julien : Prospective territoriale et développement durable. L’exemple

du Limousin, Mémoire de DESS, Faculté de Droit et Sciences Economiques, Année

Universitaire 1999-2000.

- MOULIN Olivier, PINSON Gaelle, CHAPELET Marie : Les contrats de plan Etat-

Région, La Documentation française-DATAR, 2002.

- NEMERY Jean-Claude : Le renouveau de l’aménagement du territoire, Economica,

1994.

- Plan Régional pour la Qualité de l’Air, 2001.

- Programme d’Actions concertées sur les Technologies de l’Information, de la

Communication et de l’Innovation En Limousin, Conseil Régional et Agence

Régionale de Développement, 2003.

- Programme d’appui interrégional Massif Central (POMAC), Objectif 5b, 1994-1999.

- Programme de développement des zones rurales 1994-1999, DOCUP Objectif 5 b,

1994.

- RDT info N°37, Mai 2003.


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Data sources

- AGESTE comptes régionaux de l'agriculture 2000

- AGRESTE Recensement agricole 2000

- DRAF, SRSA, AGRESTE- Chiffres et données « Agriculture », 2002.

- DRAF, SRSA, AGRESTE- Conjoncture – Tendances Limousin, 2002.

- IFEN-DIREN, Les régions et l’environnement : les données, 2001.

- INSEE Recensement de la population 1999

- INSEE, Tableaux Economiques du Limousin, 1994-1995.



- Observatoire Régional Emploi-Formation du Limousin : La population, les

emplois et les activités en Limousin, juillet 2002

- Plan Régional pour la Qualité de l’Air, 2001.

- RICA Réseau d'Information Comptable Agricole

- SCEES comptse départementaux de l'agriculture 2002


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Method of making interviews and collecting data

The method used to carry out this report is supported by 3 sources of information.

The first one is the analysis of documents and data listed in the bibliography. A part of them were given during the interviews or by specific services in each field (agriculture, environment,…), as statistic departments or research departments of the following office : «Conseil Régional du Limousin » , «Secrétariat Général des Affaires Régionales du Limousin », « Direction Régionale de l’Agriculture et de la Forêt du Limousin », «Direction Régionale de l’Environnement du Limousin » , «Conservatoire Régional des Espaces Naturels du Limousin » and «Délégation Régionale à la Recherche et à la Technologie du Limousin».

The second source of information is made up of individual interviews with departmental head of differents institutions and experts :

o Mr JC. LUC, section head of the "Europe" department in the «Secrétariat Général des Affaires Régionales du Limousin »;

o Mr V. JOLYS, section head of the "Europe" department in the « Conseil Régional of Limousin» ;

o Mr JN. CAPDEVIELLE, ministerial delegate in the « Délégation Régionale de la Recherche et de la Technologie du Limousin»;

o Mr D. CLEMENT, Regional Director of the « Direction Régionale de l’Environnement of Limousin » ;

o Mr G. MOSCA-LINZELER in charge of «European Programmes, Financial Contractualisations and Sustainable Development » in the « Direction Régionale de l’Environnement of Limousin » ;

o Mr REBIERE, Responsible for the Grouping of Economic Interest Fruits and Vegetables, to the « Chambre Régionale d’Agriculture »;

o Mrs H. FAUCHER, in charge of «the Service de la Recherche et de la Valorisation de la recherche» in the University of Limoges.

o Mr J. BOEUFGRAS in charge of specific programme (plan Loire grandeur nature) of the «Conservatoire Régional des Espaces Naturels du Limousin »

The last source consists of informal conversations with regional and local elected members, academics, beneficiaries of European funds and eligible people.


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Index of tables included in ANNEX II

Annex Economy

- GDP per capita in euros (1990, 1995, 2001)

- GDP (1990, 2000) ( Millions of Francs)

- GDP per capita and GDP per employment (2000)

- Share of added value of each sector in 1990 and 2000 - Average taxable net income (francs) in 1986 and 1996

- Craft industry : Number of businesses and employment (2000 and 2001)

- Number of setting-up of businesses since 1993

- Ratio of survive of businesses by date of creation (1990,1993,1996)

Annex Environment

- Number of private environmental jobs in main sectors (1998)

- Evolution of private environnemental employment numbers in main sectors (1993-1998)

- Areas designated by the Birds Directive (ZICO in French) since 1997

- Areas designated by the Habitats Directive in 2003

- Air quality and climate change in Limousin

emission of SO², Nox, NMVOC, CO, CO² NH3 since 1990 in kilotonnes

emissions by sector in 1994 in %

- Treated Quantities in Limousin in kilotonnes (= 1000 tonnes) (1997)

- Evolution of treated quantities in Limousin (1993-1997)

- Recovery rates in Limousin (1997)

- Evolution of recovery rates in Limousin (1993-1997)

- Nitrogen quantities by hectares fertile areas (kg) in 1997

- Evolution in % (1990-1997)

Annex Employment

- Number of employees of private sector (without agriculture) (Limousin 1996-2000)

- Total employment (public ad private) by area (France, NUTS II, NUTSIII, main cities) at 1999 and at 1990


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- Evolution of the number of salaries from 1990 to 2000 (total of activities sector without agriculture and public sector)

Annex Population

- Total population (1999,1990) by area (France, Limousin, NUTSIII, main cities)

- Female population (number and % in 1999) by area (France, Limousin, NUTSIII, main cities)

- Variation between 90 and 99 (absolute, net migration, natural balance, birth, death) by area (France, Limousin, NUTSIII, main cities)

- Birth rate (per 1000) on 90-99 by area (France, Limousin, NUTSIII, main cities)

- Death rate (per 1000) on 90-99 by area (France, Limousin, NUTSIII, main cities) at 1999 and at 1990

- Density (hab/km2 by area (France, Limousin, NUTSIII, main cities) at 1999

- Total Population, 0-14 years old, active population, inactive population, dependance rate in % by area (France, Limousin, NUTSIII) at 1999

- Active population by sector (1999) in % and by area (France, Limousin, NUTSIII)

Annex Structural Policies

- Amounts in the CPER and Objective 5b programme (89-93) and (94-99) by sector

- Amounts by sector (89-93) and (94-99) millions of francs

- Objective 5 b (1994-1999) programme in Limousin by measure in francs

- Objective 2 programme (2000-2006) by measure in francs

- Programmed financing plan for the rural development programme (EGGAF) in Limousin (2000-2006)

Annex Agriculture

- Number of holdings annual growth rate of number of holdings (1988, 2000) by area (France, Limousin, NUTSIII)

- Used agricultural Area (UAA) (ha) annual growth rate of UAA (1988, 2000) by area (France, Limousin, NUTSIII)

- Average UAA (ha) (1988, 2000) by area (France, Limousin, NUTSIII)

- Share of UAA in direct production (1988, 2000) by area (France, Limousin, NUTSIII)

- % of holdings with more than 50 ha of UAA (1988, 2000 by area (France, Limousin, NUTSIII)

- Types of production (Bovins meat breeding, milk and sucking cow breeding, Ovine caprine breeding, multi breeding, breeding and crop, multi cereal crop, vegetable and fruit farming) (1988, 2000) by area (France, Limousin, NUTSIII)


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- Legal Statute of holdings personnal farm cooperative statute (GAEC) agricultural company (EARL) others share of UAA under cooperative or company statute (1988, 2000) by area (France, Limousin, NUTSIII)

- Account of agriculture in Limousin (1990, 1995, 2000)

- Annual agricultural income (Net added value at factor cost) by area (France, Limousin, NUTSIII) since 1990

- Annual agricultural income by worker (Net added value at factor cost per working unit) by area (France, Limousin, NUTSIII) since 1990

- Net entrepreunarial income of agriculture by area (France, Limousin, NUTSIII) since 1990

- Net entrepreunarial income of agriculture per worker by area (France, Limousin, NUTSIII) since 1990

- Gross fixed capital formation of agriculture and its evolution by area (France, Limousin, NUTSIII) since 1990

- Subsidies received by the holdings by area (Limousin, NUTSIII) since 1990 : Subsidies on products and Subsidies for holding


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IRELAND:

REGION: BORDER, MIDLANDS AND WESTERN

ELABORATION:

Author: Michael J. Bannon, MA, PhD From: DEPARTMENT OF REGIONAL AND URBAN PLANNING. UNIVERSITY COLLEGE. DUBLIN.


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REGIONAL COHESION: THE CASE STUDY OF BORDER, MIDLAND AND WESTERN.

IRELAND

EXECUTIVE SUMMARY

The Border, Midlands and Western (BMW) region of the Republic of Ireland accounts for 47.0 percent of the land area of the state, 27.0 per cent of the population and 19.0 per cent of the total GDP. Much of the region has a long and almost unbroken history of out–migration, population loss and economic decline at least up to the 1990’s For the most part, this is a region with a difficult topography, a concentration of small farms, an over dependence on agriculture, low levels of urbanisation and inadequate sources of off-farm employment. At the same time, it is a region of great beauty and with significant tourism potential.

Much of the Region has been the subject of special development incentives and regional aid for more than fifty years, but such assistance has been unable to stem the flow of emigration abroad and the pull and attractions of Dublin within Ireland. The region did share in the economic uplift, which Ireland experienced in the 1990’s but at a rate insufficient to hold or improve on the region’s share of the total state population.

In1999, in preparation for the 2000-2006 National Development Plan and Community Support Framework, it was decided to establish the BMW NUTS II region and to put in place a Regional Assembly to oversee the implementation of the NDP/CSF for the region.

This case study has provided an overview analysis of the demographic, employment and productivity changes, which have taken place in the region, especially since 1991.The general conclusion is that while the region did improve during the 1990’s, its performance lagged behind the national average in many respects. The BMW region “is in 31st place in terms of closeness to the S&E”, the other NUTS II region within the Republic of Ireland. Part of the reason for the relatively good performance of this Objective I region arises from the overspill of the Greater Dublin Area into the eastern parts of the BMW region during the ea of the “Celtic Tiger.”

In meeting the Terms of Reference, it has proved difficult to acquire adequate information on the various EU programmes and to track the distribution of these funds between the regions– both NUTS II and NUTS III. In some instances there has been the absence of some critical information; in other cases, information has been of poor quality and relatively few sources provided consistent data over the ten year horizon requested by the study. While regional statistics have improved in recent years, much remains to be done to enhance their detail. The post evaluation


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of the 1994-1999 CSF is not yet completely finalised, while the mid-term evaluation of the 2000-2006 CSF is still under discussion.

This case study was able to source good data on the CAP and related agricultural policies and on the Cohesion Fund. It proved more difficult to secure good data by region on the CSF programmes prior to 2000, including both the ERDF and the ESF. Data for tourism proved to be better and good information on state aid to companies came from Forfas, the policy body for enterprise and trade etc. Financial data relating to the environment and its distribution between regions is poor, dispersed and hard to assemble.

While it has been estimated that the CSF expenditures contributed between 2.5 and 3.0 percent to national GDP and did help to improve standards of living, the implementation approaches adopted up to the end of 1999 were largely national with limited emphasis on issues of internal intra-regional convergence or divergence. Thus, the mid-term evaluation of the1994-1999 CSF concentrated on administrative changes, economic impacts, human capital development, infrastructural investment and assistance to firms. It is only in the current NDP/CSF that the regional issue has been brought to the fore.

Structures for co-ordination appear to be robust and it is hoped that the operation of the regional assembly will further strengthen such procedures. While there is some evidence of a move from administration to governance, the extent of such an evolution has been limited and central government continues to exercise very tight control. Whatever the financial justification for such control, there is a strongly held view that such tight management by central government hampers the emergence of effective regional or local governance, and that it stifles innovation.

In a European context, where Agenda 2000 is taking effect and where competition for funding will prove increasingly intense, it is advisable that future EU funding should focus much more on strategic developments. In the case of the Republic of Ireland, EU investment decisions should be strongly influenced by the key recommendations of the National Spatial Strategy, 2002 – 2020, a national strategy deriving from the ESDP guidelines prepared by the EU in 1999.


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INDEX 1 THE NATIONAL CONTEXT THE PHYSICAL ENDOWMENT THE HISTORICAL CONTEXT THE POLICY RESPONSES PRINCIPAL CAUSES OF IRELAND’S TRANSFORMATION IN THE 1990S THE NATIONAL DEVELOPMENT PLAN APPROACH PRESSURES FOR A NEW APPROACH TO IRISH REGIONALISM

2 THE BORDER, MIDLAND AND WESTERN REGION OF IRELAND (BMW REGION)

METHODOLOGY FOR THE CASE STUDY OF THE BMW REGION ADMINISTRATIVE STRUCTURES FOR THE REGION ASPECTS OF THE REGION’S DEMOGRAPHY URBAN GROWTH AND RURAL DECLINE THE CHANGING REGIONAL ECONOMY TRENDS IN REGIONAL PRODUCTIVITY REGIONAL INCOME LEVELS IN THE BMW REGION, 1995 – 2000 THE BMW REGIONAL PROFILE: CONCLUDING NOTE

3 COMMUNITY TRANSFERS AND THEIR DISTRIBUTION TO THE BMW REGION

AGRICULTURAL TRANSFERS FROM THE EU TO THE BMW REGION REGIONAL FUNDING FOR THE FISHING INDUSTRY THE COHESION FUND FOR IRELAND STRUCTURAL FUNDS: THE ERDF INVESTMENT IN IRISH REGIONS ESF CONTRIBUTION TO FAS TRAINING INITIATIVES, 2000 – 2002 THE LEADER COMMUNITY INITIATIVE FOR IRELAND OTHER COMMUNITY INITIATIVES AFFECTING THE BMW REGION STATE AID TO INDUSTRY: PAYMENTS BY THE PRINCIPAL AGENCIES, 1992 – 2002 TRANSPORT INFRASTRUCTURE ENERGY INVESTMENTS AND REGIONAL CONVERGENCE TOURISM INVESTMENT AND THE REGIONS ENVIRONMENTAL EXPENDITURES

4 ASSESSMENT OF MAIN IMPACTS

5 COORDINATION


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6 GOVERNANCE

7 CONCLUSIONS

8 GUIDELINES FOR THE COMMISSION

BIBLIOGRAPHY

Index of tables

Table 1: Administrative Structures Within the BMW Region

Table 2: Population Change in the BMW Region, 1991 – 2002

Table 3: population Change in Larger Urban Centres, 1996 – 2002

Table 4: Estimated Persons at Work by Sector, BMW Region 1992 – 2002

Table 5: Gross Value Added per Person at Basic Prices, 1995–2000 in €.

Table 6: Indices of Disposable Income per Person by Region 1995 – 2000. (State =100)

Table 7: EU Agriculture Payments to the BMW Region, € Millions

Table 8: Fishing Fleet Development and Whitefish Renewal Scheme - EU Fisheries Payments 1988-2000

Table 9: Cohesion Fund ‘Commitment Distribution, 1993 – 2002, € Millions

Table 10: Revised Forecast of Structural Fund expenditure in Ireland, 1994 – 1999. Community Participation

Table 11: Indicative Breakdown of NDP Expenditure in the BMW Region. 2000–2006 in € Millions

Table 12: ESF Expenditure Through FAS, 2000 – 2001, € Millions

Table 13: Direct Payments to Companies. All Principal Agencies, 1992 – 2002, € millions

Table 14: Transport investment 2000 – 2006. € Millions

Table 15:Percentage Break Down of Tourism Spend, Measures 1 & 2 of 1994-99 OP

Table 16: Some Key Environmental Elements of the National Development Plan, 2000 – 2006


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1 THE NATIONAL CONTEXT

With a land area of just over 70,000 sq. km and a population of almost four million persons, the Republic of Ireland (henceforth Ireland) is one of the smallest and least densely settled countries of the existing European Union. In terms of land area, population size, density and the distribution of population Ireland has much in common with many to the applicant countries which are about to become Member States of the Union.

THE PHYSICAL ENDOWMENT

Not only is Ireland a small country, it is also isolated from the European landmass and peripheral to the economic heart of the continent. Until recently, the country was considered to have been devoid of significant natural resources and there was only a limited tradition of industrial development or entrepreneurship, mostly in the east and south east of the state. Although the country is small in size, there is a persistent, multidimensional and significant divide within the state running diagonally from the north-east, near Dundalk, towards the south-west and west Cork. To the west of this line economic potential has been traditionally affected adversely by climatic conditions of relatively high rainfall, poor soil quality, high levels of rural population, an older population often unmarried, an over dependence on small uneconomic farming, lack of off-farm employment, little industrial development and isolation from most significant towns or cities and the socio-economic benefits of urbanisation (Freeman, 1950; Buchanan and Partners, 1969). The only major exception to this general pattern lies in the tourism potential of the scenic areas of the west.

The roots of Ireland’s long running regional problems are closely linked to the development capacity of the east/south east and, more recently, the concentration of most of Ireland’s urban opportunities in the cities of the east and south, principally in Dublin and Cork. With the exception of County Louth and areas adjacent to the boundary with the Southern and Eastern region, much of the present BMW region suffers from problems of relative underdevelopment.

THE HISTORICAL CONTEXT

Ireland became an independent state in 1922, largely as a result of a war of independence driven strongly by agitation for land rights. Such origins continue to have significant implications for development policy and procedures within the country. The new state was largely a rural, predominantly agricultural economy where most urban centres were small and where industrial development was limited. By the date of independence, the country had experienced almost one hundred years of continuous population loss through emigration. Between 1841 and 1926 the population of the state declined by 3,556,807 to a 1926 total of only 2,971,992. In the case of the Province of Connacht – now the core of the Border, Midland and Western region – population declined from 1,418,859 in 1841 to 552,907 in 1926 – a loss of over sixty per cent on the 1841 figure.

Post-independence Ireland continued to be characterised by population loss for its first forty years of existence and emigration was running at approximately 50,000 per annum for much of the 1950s. Indeed, some authors saw the population drain as a symbol of the failure of the state itself (O’Brien, 1954). Emigration drastically reduced the population of the relatively poorer West/North West of the country, while the share of population engaged in agriculture declined by over 22 percentage points between 1926 and 1961. Over the same period the “aggregate rural” population declined 24.9 percent, while the ‘aggregate urban’ component increased by 36.3 percent. Ireland was changing but, because of a variety of


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factors, almost all the urban increase occurred in and around Dublin. A new form of regional divergence was developing as the Dublin area came to have over twice the total population of all the next twenty cities/towns taken together.

THE POLICY RESPONSES

Efforts by governments and agencies to deal with the underlying causes of regional under development, congestion and poverty throughout the west of the country go back to at least the 1870s. Initial efforts, focussed on agricultural reforms, small infrastructure projects and the opening up of potential tourist areas through the development of light railways were to generate some limited impacts. In time they led to the establishment of the Congested Districts Board in 1891 with responsibility for harbour construction, agricultural restructuring and project development through its designated area of much of the west of Ireland. Under the Free State government the land restructuring function was continued under the Irish Land Commission.

These initiatives, coupled with a set of restrictive economic policies from 1922 until after World War II did little to offset the serious economic, social or regional problems besetting the new state. Immediate post-war economic policies began the process of dismantling trade barriers and the quota system in favour of free trade and the attraction of foreign capital into the country. The Industrial Development Authority was established to promote Ireland as a good location for foreign industry, while in 1952 the country was divided into Designated and Non Designated areas under the “Undeveloped Areas Act”. This division related closely to the socio-economic divide discussed above and firms setting up in the designated areas were eligible for significant assistance. This was the beginning of the system of regional aid and the Designated/Non Designated divide was somewhat similar to the present division of the country into two Level II regions.

A strong focus on regional policy continued up to the 1970s. But with Ireland’s entry into the EEC and the adverse impact of the 1970s oil crisis on the established industrial areas, Ireland’s “approach to regional policy is now nationwide rather than confined to specific areas” (OECD, 1977). As Ireland successfully pushed to have the entire country designated as a single Objective I region under the ERDF regulations and as it continued to protect that status, any discussion of or emphasis on internal regional disparities was muted in the ‘national interest.’ While nine Regional Development Organisations were set up to coordinate planning investments in the period 1964 to 1986 and eight statutory Regional Authorities (NUTS III) regions were set up in 1994, the focus of development efforts remained national up to 1999 and priority was given to the refinement of the national agencies established to promote national development, foreign investment and foreign trade (National Development Plan, 1989-1993 and 1994-1999).

This approach was to prove particularly effective during the 1990’s, but with the consequence that the continuation of all of Ireland as a single Objective 1 region became untenable. In reality regional disparities had persisted despite national convergence to the EU average and indeed that regionalisation was essential if any parts of the state were to retain Objective I status after 1999.

PRINCIPAL CAUSES OF IRELAND’S TRANSFORMATION IN THE 1990S

While nobody foresaw the boom of the 1990s, likewise few have been able to identify its specific generators. Thus the OECD spoke of “a surprising degree of consensus as to the array of factors that should be included in a comprehensive list of reasons for the growth. It


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is only as to emphasis that the experts begin to disagree” (OECD, 1999). The triggers for the economic upturn included:

• increased labour supply, unusually favourable demographics, the tradition of emigration, rising but still low participation rates, and the release of labour from agriculture

• improved education and skills

• EU Structural funds, notably the 1994-1999 CSF, as agreed at the Edinburgh EU Summit

• increased openness and EU market integration

• the domestic policy environment

• reform of fiscal policy

• changes in attitudes and institutions

• the role of incomes policy

• reform of industrial policy

• the success of the policy of attracting foreign investment, and

the favourable linkages and spin-offs from such a policy.

While reluctant to single out any one single cause of Ireland’s positive transformation, the OECD concluded that “it is the massive inflow of direct investment that has been the major positive shock influencing the economy in the 1990s” (OECD, 1999).

As a consequence, Ireland was converging closer to EU average levels of development. These changes were to have implications for Ireland as an Objective 1 Region, while serious economic and social divergences remained within the state as a whole.

THE NATIONAL DEVELOPMENT PLAN APPROACH

Since 1989 the Government of Ireland has produced three National Development plans, covering the periods 1989 – 1993: 1994 – 1999 and 2000 – 2006.These plans set out the major investment programmes of the Government and embrace all proposed CSF funding and related exchequer and private sector financing of programmes and projects. Since 1988 – 89 there has been increased regional and local participation in the preparation and implementation of these programmes, culminating in the establishment of the Border, Midland and Western and the Southern & Eastern NUTS II regions in 1999.

PRESSURES FOR A NEW APPROACH TO IRISH REGIONALISM

During the 1990s, Ireland’s economy expanded rapidly and growth rates of the order of up to 10 percent per annum were the norm in the later years of the decade, as the so-called ‘Celtic Tiger’ economy surged ahead. After twenty-five years of sluggish and often interrupted growth, the 1990s experienced significant economic expansion – population increased by 9.0 percent between 1991 and 2002 while the numbers employed increased by 50.2 percent. A long history of emigration was replaced by large-scale in-migration from a wide diversity of countries.

By 1999 research for the 2000 – 2006 Community Support Framework demonstrated that Ireland’s position as a single Objective I region was no longer tenable. Ireland’s average Gross Value Added was estimated to have reached 93 per cent of the EU average and that in some Level III regions average GVA was in excess of the EU average for 1996. This situation was examined in depth in a series of reports, most notably in the 1999


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ESRI report on National Investment Priorities for the Period 2000 – 2006 (ESRI, 1999), and in a two volume report prepared in 1999 for the Regional Authorities on The Border, Midlands and Western NUTS II Region and on The Southern and Eastern NUTS II Region (Fitzpatrick Associates, 1999). These reports documented the variations in development levels within and between regions, the investment needs of each of the emerging LEVEL II regions and the development options open to each.

The National Development Plan, 2000 –2006, published by the Irish Government in Autumn 1999,contained a strong commitment to “balanced regional development,” the promotion of “a small number of additional regional Gateways” and a commitment to spread the benefits of growth “to other smaller urban and rural areas in the regions”. The Plan also contained a commitment to positive discrimination in favour of lagging regions “consistent with the new Regional Aid Guidelines.”

The National Development Plan accepted the division of the country for the first time into two LEVEL II regions, the establishment of two Regional Assemblies, and the putting in place of two Operational Programmes targeted at the needs of each of the two regions, (for a general discussion of the regions, see: Callanan, 2003).

While Ireland prospered during 1990s and while there was evidence of convergence to EU norms, there also emerged statutory recognition of the extent of variations in development levels within the country. These matters have been addressed in greater substance in The National Spatial Strategy, 2000 –2020, published in November 2002. The NSS contains proposals to improve the operating efficiency of Dublin and the capital city region, the development of additional Gateways within the Border, Midlands and Western region, the designation of development ‘Hubs,’ the strengthening of the rest of the urban structure of the country and the promotion of ‘vibrant and diversified rural areas’.

In the period post the year 2001 the Irish growth performance has faltered somewhat due to a combination of external factors affecting principally the flows of foreign direct investment and overseas tourists into Ireland. These difficulties have been compounded by a loss of competitiveness at home. In this more difficult climate the recently agreed Social Partnership Agreement for the period 2003 – 2005, Sustaining Progress, indicates that GNP is expected to average 3 per cent growth over the period of the agreement. While such a growth rate would be relatively good in an EU context, it is much less than Ireland achieved in the more buoyant days of the late 1990s.

2 THE BORDER, MIDLAND AND WESTERN REGION OF IRELAND (BMW REGION)

METHODOLOGY FOR THE CASE STUDY OF THE BMW REGION

The approach to this case study involved four related stages of research and investigation. First, there was a need to review the existing literature relating both to the region and to policy approaches being adopted by or for the region, whether local, national or international. Second, a great deal of time was devoted to data sourcing and attempting to overcome the date deficits which exist in almost all areas of analysis relevant to this Case Study. Third, this consultant visited key implementation agencies both in the region and in the national capital, Dublin. Finally, this author consulted with a range of policy makers and researchers familiar with the region, the policies being pursued and the issues of concern for the future. The major difficulty in undertaking this case study has related to data issues. Thus, many of the Operational Programmes under the CSF have limited regional data. This issue is made more difficult by the fact that the post evaluations for many of the CSF


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programmes are not yet finally complete, while the mid-term evaluations of the 2000 – 2006 CSF remain under discussion. In addition, many aspects of information are either not available or not of a sufficient level of detail or quality to aid serious evaluation.

ADMINISTRATIVE STRUCTURES FOR THE REGION

The NUTS II Border, Midland and Western region (henceforth the BMW region) consists of three NUTS III regions and a total of thirteen counties and the city of Galway as set out in Table 1 below. The region covers a land area of 33,276 sq. kms. or 47.4 percent of the land area of the State. The BMW region is approximately twice the size of the average NUTS II EU region (15,684 sq. kms). In addition to the local authorities, Udaras Na Gaeltachta, plays a developmental role in the Irish language speaking parts of Counties Donegal, Galway and Mayo. With the exception of the eastern parts of the region, the BMW region is characterised by a difficult topography, poor quality land, relatively high rainfall levels, an over dependence on small farm agriculture poor physical and information infrastructures, low levels of urbanisation and innovation and a lack of adequate off-farm employment.

Table 1: Administrative Structures Within the BMW Region:

Level (NUTS) II Region Level (NUTS) III Region Local Authorities

Border Region Cavan

Donegal

Leitrim

Louth

Monaghan

Sligo

Midland Region Laois Longford

Offaly Westmeath

Border Midland and Western Region

West Region Galway City & County

Mayo

Roscommon

ASPECTS OF THE REGION’S DEMOGRAPHY

Almost all parts of the region have experienced lengthy and persistent out migration of population, at least up to the 1990’s. Between 1961 and 1991 the region’s population grew by a mere 7.4 per cent (from 883,455 to 948,945 persons) while the region’s share of the total population of the state decreased from 31.3 per cent in 1961 to 26.9 per cent in 1991.Much of the population growth which occurred in the BMW region over the thirty years was confined to the counties of Louth and Galway, counties with significant urban centres. Five of the thirteen counties of the BMW region suffered net population loss during this period.

Between 1991 and 2002 there has been a reversal of the past demographic trends, with the region experiencing considerable population growth especially in the years since 1996 – see Table 2. This table shows that the BMW region had consistent and increasingly vigorous growth in population between 1991 and 2002. From 1991 to 1996 the region


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increased its population by just over one percent, but between 1996 and 2002 the population increased by over 7.0 percent.

Table 2: Population Change in the BMW Region, 1991 – 2002.

NUTS III Regions

1991 1996 2002 Percentage Change 1991 – 2002

Border 402,987 407,295 432,366 +7.3

Midland 202,984 205,542 225,588 +11.1

West 342,974 352,353 380,057 +10.8

Total BMW 948,945 965,190 1,038,011 +9.4

BMW as % of

Total State

26.9 26.6 26.5

Source: Census of Population, 1991 – 2002.

In this latter period growth was both more vigorous and more widespread, affecting many parts of the region. But in terms of its share of the total population of the state, the region’s share continued to decline, even if more slowly – from 26.9 percent of the total in 1991 to 26.5 percent in 2002. Of serious concern must be the failure of the region to retain or to expand its share of total population, even during the high growth period of the mid to late 1990’s. At 31 persons per sq. km. in 2002, the population density of the region was one of the lowest of all NUTS II regions in the EU.

URBAN GROWTH AND RURAL DECLINE

During the 1991 – 2002 period there occurred a significant restructuring of the population of the region. Growth took place in and around the larger towns with a particular tendency ‘to take the town into the countryside, while large tracts of the rural areas lost population. Growth was largely confined to urban areas, particularly Galway, Athlone, Dundalk and Letterkenny – see Table 3.


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Table 3: population Change in Larger Urban Centres, 1996 – 2002.

Population Increase City/Town 1996 2002

Number Percentage

Galway City 57,363 66,163 8,800 15.3

Dundalk 30,195 32,505 2,310 7.7

Drogheda 25,282 31,020 5,738 22.7

Sligo 18,509 19,735 1,226 6.6

Athlone 15,544 15,936 392 2.5

Mullingar 12,492 15,621 3,129 25.0

Letterkenny 11,966 15,231 3,265 27.0

Portlaoise 9,474 12,127 2,653 28.0

Castlebar 8,532 11,371 2,839 33.3

Tullamore 10,039 11,098 1,059 10.5

Source: Census of Population, 1996 and 2002.

Between 1996 and 2002 the ‘aggregate town’ population of the BMW region increased by 48,752 while the ‘aggregate rural population’ also increased by 24,252 or almost double the rural increase. The increases in the ‘aggregate town’ population in the BMW region amounted for 21.5 percent of the total increase in the aggregate urban’ population of the State.

Part of the reason for the population growth lies also in the attractiveness of the eastern parts of the region, particularly counties Laois, Louth and Westmeath, as residential locations for commuters working in the Dublin metropolitan economy, and a high level of “urban generated” housing developed throughout the countryside.

THE CHANGING REGIONAL ECONOMY

A significant restructuring of the regional economy has taken place in the ten years between 1992 and 2002, Table 4. One of the most obvious features of Table 4 is the continued serious decline of employment in agriculture, which lost over one quarter of its labour force between 1992 and 2002. However, the decline in employment in the BMW region should not cloud the fact that the agricultural sector remains hugely important to the productivity of the region and this sector makes a huge contribution to the GVA of the region –see above-.


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Table 4: Estimated Persons at Work by Sector, BMW Region 1992 – 2002.

Change Sector 1992 2002

Number Percentage

Agriculture, Forestry and Fishing:

68,100 49,700 -18,400 -27.1

Production, Building and Construction:

85,800 137,100 +51,300 +59.8

Services: 146,500 252,000 +105,500 +72.0

Total Employed 300,400 438,800 138,400 +46.1

Source: CSO Labour Force Survey, 1992 (adjusted) and 2002 unpublished data from CSO.

Employment in the industrial and construction sectors increased by sixty peer cent, increasing the BMW region’s share of total employment in this sector from 26.6 per cent in 1992 to 28.3 per cent in 2002. Unfortunately, precise information on the locations of these enterprises is not available from the 2002 Census as of now. Employment growth in the service accounted for over three-quarters of all net new job creation between 1992 and 2002. This expansion would have included new jobs in education, health, professional services, local administration and recreation or personal services. Some of these sectors are likely to have concentrated in and around Galway – the largest urban centre in the region with the only university in the BMW, a major tourism focus and an established centre for professional services. The result has been a slight increase in the regional share of total service employment by 2002. But overall, the region’s share of total employment in the State dropped slightly from 25.8 per cent in 1992 to 25.1 per cent in 2002.

The relative performance of the BMW region has to be set against the facts that the region continues to have Objective 1 status at least up to 2006 and that the Regional Aid limit for the BMW is 40.0 percent on eligible investments as compared to 17.5 to 20.0 percent elsewhere in the State – see National Development Plan, 2000 – 2006.

TRENDS IN REGIONAL PRODUCTIVITY

While the interpretation of data on GDP or GVA remains the subject of debate, the available data does assist in determining the trends over time and the comparative regional trends. However, in an extremely open economy such as Ireland, with its concentration of foreign exporting firms, there is increasing concern about the gap between GDP and GNP and the emergence of a “two-speed economy” or the emergence of “twin economies” – (see Irish Times 02–05–03).

Bearing these limitations in mind, Table 5 presents GVA data for the years 1995 to 2000 for the BMW region and its component NUTS III regions. This table shows that per capita GVA for the BMW region in 1995 was at 75.4 percent of that for the State; by 2000 that share had declined to 71.9 per cent of the total.


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Table 5: Gross Value Added per Person at Basic Prices, 1995–2000 in €.

NUTS II Regions 1995 1998 2000

Border Region 10,232 14,738 17,619

Midland 9,501 12,664 16,940

West 9,747 13,444 17,252

Total BMW Region: 9,901 13,817 17,338

Total State: 13,140 18,715 24,108

Source: CSO Regional Accounts for the years 1995 to 2000.

There was little variation at NUTS III level, with the Border region being ahead of the other two regions. The stark contrast for the year 2000 is between the BMW GVA level at 71.9, the Southern and Eastern region at 110.1 and the NUTS III Dublin region with a GVA score of 132.9. The contribution of the ‘Agriculture, Forestry and Fishing’ branch of the economy is especially important in the case of the BMW region and this is the only sector of the economy where the BMW outperforms the State or the other NUTS II region in terms of GVA components.

REGIONAL INCOME LEVELS IN THE BMW REGION, 1995 – 2000

It can be argued that income rather than productivity is a true indicator of the wealth of a region. The Central Statistics Office produces a series of measures of regional incomes, providing actual income data and calculated indices of income levels over time. Table 6 shows both the indicator levels of disposable income and the performance of the regions over time. Measured against the State average of 100, it can be seen that the BMW level of income per person has remained at around 90.0 percent of the State level, while the Southern and Eastern region has had a constant score of almost 104 and the NUTS III Dublin region had a score of 116.8 for 2000. While there was some narrowing of the inter regional gap between 1999 and 2000, the long term shows little evidence of convergence. There does not appear to be any component of total income on which the BMW region performs on a par with the other NUTS II region.

Table 6: Indices of Disposable Income per Person by Region 1995 – 2000. (State =100)

NUTS II Regions 1995 1998 2000

Border 91.9 90.1 89.2

Midland 89.0 86.7 85.8

West 92.0 91.9 92.9

Total BMW Region: 91.3 90.0 89.9

Source: CSO Household Income Data, 1995 – 2000.


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THE BMW REGIONAL PROFILE: CONCLUDING NOTE

Despite EU, National and Regional assistance, the BMW region continues to lag seriously behind the State average and the Dublin region in terms of productivity, wealth and employment diversity and growth. In a study carried out by the Southern and Eastern Regional Assembly it was shown that the BMW “region is in 31st place in terms of closeness to the S&E.” (Southern and Eastern Regional Assembly, 2003).

The principal strengths of the region lie in natural beauty, its potential for tourism development and its potential to benefit from its marine endowment. Eastern parts of the region benefit from having better quality land, closer access to the Dublin labour market and the Dublin metropolitan area in general, while County Louth has the economic advantage of being a key location on the Belfast – Dublin corridor. The designation of the region as an Objective 1 region is a continuing advantage, as is the area’s 40.0 percent limit for regional aid. Particularly in the late 1990s, the eastern periphery of the BMW region benefited greatly from overspill growth from the Greater Dublin Area, the driving force for growth of the economy in general.

The weaknesses of the BMW region stem from its relatively extensive range of indicators of multi-dimensional disadvantage. These arise from the physical environment for development, relative remoteness, poor infrastructures, limited urbanisation and relatively few opportunities for graduates. But perhaps the greatest disadvantage lies in the highly centralised nature of this small state, where the BMW region is seen as a classic peripheral region run by and often for a centralised system based outside the region itself.

In an increasingly globalised world, threats come from the ability to by-pass such regions, particularly in view of their infrastructural inadequacies and their continuing remoteness. There is also a danger that the drive for international advantage will encourage governments to invest in the perceived ‘cumulative advantage’ of the leading region and the dominant city with its established linkages and controls.

For a region like the BMW, opportunities lie in developing its natural resources, capturing the maximum advantage from off-shore oil and gas reserves, exploiting the potential of new technologies, investing in top level university education and research relevant both to the region and the international market place, as well as continuing to develop the region as a tourism destination. The recent designation of five locations within the region as ‘Gateways’ and a further five as ‘Hubs’ for accelerated development should, if actively implemented, lead to a transformation of the BMW region – see: National Spatial Strategy 2002 – 2025.

In the words of the BMW Assembly, the region needs to reverse a situation where the region “consists of 47% of the land are, 27% of the population and 19% of the GDP of the country.” – (Submission to An Taoiseach [Prime Minister] March, 2003).


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3 COMMUNITY TRANSFERS AND THEIR DISTRIBUTION TO THE BMW REGION

This section of the case study deals separately with the more important Community Programmes and Initiatives affecting the BMW region. It also examines the importance of State assistance to firms locating in the region.

AGRICULTURAL TRANSFERS FROM THE EU TO THE BMW REGION

Agriculture represents one of Ireland’s most important export industries and is considered important in terms of both its economic role and as an important component of rural development and protecting the rural way of life. The agriculture sector has been a major beneficiary of transfers from the European Commission under both the Common Agricultural Policy and the EAGGF. Table 7 summarises the principal agriculture related programmes, the levels of payments under each and the share of such transfers going to the BMW region. The table documents a total of €4,241.6 million going to the various schemes in the region, representing 45.1 percent of the total payments to the State. Such a share is broadly commensurate with the 47.0 percent of the State’s land area in the BMW region. Those programmes designed to support the intensification of agriculture as an industry contribute smaller shares to the BMW than programmes designed to assist more marginal agriculture through compensatory measures or environmental initiatives. The time frame for the programmes set out in Table 7 range from 1992, 1994 and 1996 depending on the programme and the date of its initial implementation. Further details are provided in the Annexes.

Table 7: EU Agriculture Payments to the BMW Region, € Millions.

Percentage of State Programme Total Payments BMW 1992 – 2002

Average annual Payment

Expenditure in 2002 1992 –

2002 2002

Suckler Cow Premium

996.7 87.9 125.1 54.1 54.8

Ewe Premium* 387.2 55.3 53.8 54.1 54.9

Special Beef Premium*

622.6 89.0 104.1 37.9 38.8

Slaughter Premium*

131.4 18.8 46.5 35.8 36.9

Compensatory* 766.0 69.7 143.4 62.4 60.1

Arable Aid* 169.9 24.3 26.5 20.3 20.7

Extensification * 346.5 49.5 0.0 48.8 0.0

Early Retirement Scheme**

166.2 18.5 22.0 28.1 27.8

Rural Environment Protection Scheme**

655.1 72.8 101.8 58.6 58.9

Total EU Payments 4241.6 --- 623.2 45.1 47.4

Source: Data supplied by John Fox, Paddy Kelly and William Murphy, Dept. of Agriculture, Food and Rural Development. * Data for1996 to 2002; ** Data for 1994 to 2002.


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REGIONAL FUNDING FOR THE FISHING INDUSTRY

Over the past fifteen years there has been a concerted effort to develop the Irish fishing industry.

This has been undertaken within the framework of the National Development Plans, and involving Irish public and private sector assistance together with EU support from the Fisheries Guidance Fund, the ERDF, the ESF and with contributions from both INTERREG and the PEACE programme. The fishing industry has made an increasing contribution to national development in recent years. Thus, since 1992 the value of the exports of fishery products has increased from €240 million to almost €400 million. Fisheries development is especially important in many of the remoter areas of the BMW region, where alternative sources of employment have been limited.

The PESCA Community Initiative was particularly important for Ireland in the period 1994-1999. The Initiative involved an integrated approach to the industry and it also provided almost €8 million in financial aid for development. PESCA assistance was used to assist diversification, to enhance stocks, to improve quality, to assist in the development of marine tourism and fro research, training and miscellaneous activities.

Under the National Development Plan, 2000-2006, a sum of €64 million was earmarked for the continued development of the marine sector through research, technological development and innovation, with € 18 million or 28.1 percent being designated for the BMW region. In June 1998, the Government launched the Whitefish Renewal Programme to assist in the introduction of new and more modern vessels, the provision of safety equipment and the modernisation of the existing fleet. Under this programme some 700 projects have been assisted around the country and a total of €5,563 million has been paid in grants to the industry under the programme, with 56.0 percent of all the State payments gong to assist developments in the coastal counties of the BMW region, principally in the counties of Donegal, Galway and Louth – see Table 8.


County Total EU Payments (€000s) Percentage Share

Donegal 3,685 66.2

Galway 1,149 20.7

Louth 619 11.1

Mayo 101 2.0

Sligo 9 0.0

Total BMW Region 5,563 100.0

BMW as Percentage of total State 56.0

Source: Based on information supplied by Bridie Cullinane, Dennis Maher and Kevin McDonnell, Department of Communications, Marine and Natural Resources.


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THE COHESION FUND FOR IRELAND

Ireland was one of four Member States to benefit from the Cohesion Fund established at the Edinburgh summit in 1993. The cohesion fund has made an important contribution to the improvement of Ireland’s infrastructure over the past decade, involving a total investment of almost €2 billion since its inception in 1993.

Table 9: Cohesion Fund ‘Commitment Distribution, 1993 – 2002, € Millions.

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

141.9 167.7 190.7 219.6 245.4 258.6 271.9 188.6 127.4 184.9

TOTAL 1,996.8

Source: Data supplied by Liam Hennessy, Department of Finance.

Data on the Cohesion Fund is available on a project basis rather than by region. An examination of the project payments shows that only a small share of the fund’s allocations were invested in the BMW region. Apart from works on the M1 Dublin to Belfast road in Co. Louth, the major road works within the BMW region which received Cohesion funding were the Longford By-Pass (€9.1 million); the Curlews By-Pass on the N4 route to Sligo (€31.3 million); the Collooney – Sligo road (€41.5 million) and the Galway Eastern approach road (€9.9 million). Approximately fifteen water supply and wastewater schemes throughout the region, including the urban centres of Dundalk and Drogheda have a total of €366.4 million in Cohesion funding. There has also been some allocation to the improvement of the Dublin to Galway rail line, some conservation funding and two river catchment studies. In the context of the present study, it must be noted that none of the €561.1 million allocated for the years 2000 to 2003 inclusive has been explicitly allocated to locations within the BMW region.

STRUCTURAL FUNDS: THE ERDF INVESTMENT IN IRISH REGIONS

Under the Community Support Framework Programme, 1993 – 1999, the EU and the Irish Government jointly agreed an investment programme under which a total Structural investment programme of €18,717 million of which €6,630 million, or 34.5 percent, was contributed by the EU Structural Funds, Table 10. Of the total EU Structural Funding, 46.9 percent was derived from the ERDF, while the ESF accounted for 34.8 percent. Of some note in the context of the present study is the small share contributed from the FIFG. The figure of €6,330.5 million in EU funding can be compared with the Government estimate of €8.1 billion expenditure in respect of total co-financed public expenditure under the CSF from 1994 to 1999, (see: National Development Plan, 1994-1999, page 273).


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Year ERDF ESF EAGGF FIFG Total S/Fs.

1994 217.9 313.3 135.1 0 666.3

1995 350.7 300.5 176.7 3.5 831.4

1996 364.7 330.9 215.7 6.5 917.8

1997 481.2 379.4 205.7 10.0 1,076.3

1998 658.8 416.2 170.1 11.8 1,256.9

1999 894.7 462.7 198.8 21.7 1,577.9

2000 3.9 3.9

Total: 2,971.9 2,203.0 1,102.1 53.5 6,330.5

Source: Data supplied by Ms. Orla Kelly, National Development Plan office.

The National Development Plan 2000 –2006, contains a commitment to an investment programme of € 40,588 million, of which it is proposed to spend € 16,904million or 41.7 percent on projects within the BMW region, Table 11. As in the 1994 – 1999 period the BMW region is scheduled to receive a below par share of total investment as set out in the National Development Plan in the buoyant economic climate of 1999.

Table 11: Indicative Breakdown of NDP Expenditure in the BMW Region. 2000–2006 in € Millions

Programme Expenditure in BMW Percentage of Total

Economic & Social Infrastructure 5,958 26.6

Employment & Human Resources 3,598 28.7

Productive Investment 2.098 36.7

BMW Regional Programme 2,646 100.0

CAP Accompanying Measures 2,475 57.2

PEACE Programme 127 100.0

Total All State Programmes: 16,904 32.8

Source: National Development Plan 2000 – 2006, page 11.

The BMW region fares best in terms of the Productive Sector (RTDI, Industry, Agriculture and Fisheries investment) and the Cap Accompanying Measures. The region did least well in terms of Economic and Social infrastructure (Roads and Transport, Housing, Health and Environmental Protection). The Regional Programme has been designed to deal with local infrastructures, micro-enterprises and social inclusion within the region. A study by Forrestal concludes that the current national plan lacks an adequate regional focus, there is insufficient evidence of discrimination in favour of the BMW region and since “the NDP lacks specificity and with such rocky foundations the concept of balanced regional development is only a goal.” (Forrestal, 2002, p.45). Specifically in respect of road and transport investment since 2000, Forrestal’s analysis of progress concludes that “there is no evidence of regional focus or discrimination in the selection criteria and there is no regional dimension in the Measure description. Expenditure in the BMW region for 2000 and 2001 was 58.6 percent of the forecast while expenditure in the S &


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ESF CONTRIBUTION TO FAS TRAINING INITIATIVES, 2000 – 2002

Table 10 above shows that the 1994 – 1999 CSF for Ireland allocated € 2,203 million from the ESF for Human Resource development in Ireland over the six years of the Programme, while the National Development Plan 2000 – 2006 assigned an expenditure of € 12.6 billion for Employment and Human Resource development, of which less than thirty percent was to be allocated to the BMW region. On the other Hand, expenditure in 2000 and 2001 by FAS, the Irish Employment and Training Authority, shows a 34.7 percent share going into the BMW region.

Table 12: ESF Expenditure Through FAS, 2000 – 2001, € Millions.

Region 2000 2001 Total BMW Region Regional Share of National Total

Border 10.266 10.635 20.901 16.4

Midlands 5.157 5.596 10.753 8.4

West 6.044 6.554 12.598 9.9

Total BMW: 21.467 22.785 44.252 34.7

Source: Data supplied by Roger Fox and John Lee, FAS

THE LEADER COMMUNITY INITIATIVE FOR IRELAND

The LEADER programme has been an important contributor to social change and local development across the State since its initiation in 1992. The LEADER I programme operated in Ireland on a pilot basis from 1992 to 1994 in 16 selected areas with a total expenditure of €44 million. In 1994 the LEADER II Community Initiative was extended to all rural areas, and the programme had a total allocation of €123 million, including €36.7 million of Irish public expenditure funding. From 2000 to 2006 the LEADER programme is to be delivered in two ways. The LEADER Plus Initiative with a public contribution of €73.7 million is in place in 22 localities through out the country, of which ten are in the BMW region. Alongside these groups there are some thirteen Area Based National Rural Development Programme Groups, of which seven are in the BMW region. These groups, together with three Collective Bodies, receive a total of €75.6 million as part of the Regional Operational Programmes. The general impression is that the funds are widely distributed and that allocations have more regard for per capita and local needs, rather than strategic considerations.

OTHER COMMUNITY INITIATIVES AFFECTING THE BMW REGION

INTERREG can be regarded as one of the most significant Community Initiatives affecting the BMW region. Under the cross-border INTERREG II programme, which was subdivided into five sub-programmes, a total of €274 million was invested by the EU in the region, particularly under sub-programme 5 where the EU spent €159 million on Environmental Protection measures. The INTERREG IIIA cross-border programme 2000 – 2006 has a total financial allocation of €180 million.

In the case of the PEACE II programme, it is anticipated that this programme will provide approximately €700 million for project development in Northern Ireland and in the Border Region of the Republic and the BMW region. The share of total funding going to the Republic is of the order of 20.0 percent.


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The National University of Ireland Galway, as well as the six Institutes of Technology, were engaged in a variety of EU programmes and initiatives and they benefited from research funding.

STATE AID TO INDUSTRY: PAYMENTS BY THE PRINCIPAL AGENCIES, 1992 – 2002

Table 13 provides an overview of Direct Payments to Companies for the years 1992 to 2002. These figures represent the payments by all the principal development agencies, notably the Industrial Development Agency, Enterprise Ireland, Shannon Development and Udaras Na Gaeltachta. In total a sum of €3,063 million has been distributed to firms locating in the State between 1992 and 2002. In contrast, these same agencies over the same period invested just under €750 million in the BMW region – ie. 24.5 per cent of the overall total. In 1992 the percentage share going in to the BMW region was 25.8 percent and in 2002 it was 204 percent. Of the total of €1,505 million invested by the IDA between 1992 and 2002, approximately €270 million or 17.8 percent went into the BMW region, while in the case of Enterprise Ireland, charged with indigenous development, the total invested in the State was €1,162 million, of which €312 million or 26.9 percent of total assistance went to the BMW region. In 1992 the IDA invested 22.4 percent of its assistance in the BMW region, while in the year 2002 the percentage was down to just under fourteen percent. In the case of Enterprise Ireland, in 1992 the agency (formerly Eolas) invested 26.4 percent of its grants in what is now the BMW region, but in 2002 the share was down to 21.2 percent. Within the BMW region, the Midlands (NUTS III) region performed particularly badly. Finally, Udaras Na Gaeltachta, the development authority for Irish speaking areas, spent a total of €183 million in the years 1992-2002, of which 82.6 percent was allocated to firms in Donegal, Galway and Mayo.

Table 13: Direct Payments to Companies. All Principal Agencies, 1992 – 2002, € millions.

1

992 1

993 1

994 1

995 1

996 1

997 1

998 1

999 2

000 2

001 2

002

All Agencies

Border 2

1,716 2

7,953 2

6,479 2

7,632 2

9,950 3

4,461 3

1,871 3

2,199 4

4,215 1

9,744 2

3,760

Midlands 8

,756 8

,813 8

,680 6

,476 6

,263 8

,790 1

1,122 5

,923 7

,020 8

,451 6

,760

West 1

8,823 1

7,198 2

4,542 2

9,003 3

5,722 4

2,507 3

7,955 3

3,508 4

5,088 3

7,431 1

7,669

Total BMW 4

9295 5

3964 5

9701 6

3111 7

1935 8

5758 8

0948 7

1630 9

6323 6

5626 4

8189

BMW % Share

25.8 2

3.5 3

0.2 2

5.1 2

1.7 2

4.6 2

3.4 2

1.1 3

1.0 2

3.4 2

0.6

Source: Data supplied by Marcus Breathnach, Forfas.


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TRANSPORT INFRASTRUCTURE

One of the key characteristics of the Irish transport system is the very high dependence on road-based systems for all forms of movement – people, raw materials, goods etc. There has been repeated criticism of transport investment plans over the past decades due the perception that inadequate shares of investment has been allocated to alternatives to road transport, or the development of pubic transport, to investment in railways and to the promotion of environmentally friendly, sustainable transport modes. Regional scientists also expressed repeated concern at the demand led nature of investment patterns, thus re-enforcing existing spatial divergences.

Thus in the case of the National Development Plan, 1989-1993 it was proposed to invest a total of IR£ 1,030 million in land transportation improvements. Of this sum only IR£ 45million or 4.36 per cent of the investment was allocated for rail or bus investment, while IR£ 500 million or 48.5 per cent was to be invested in the Greater Dublin Area – (Dublin and the Midlands East sub-regions). A similar share of total investment in access transport also went to the Dublin area. While such investment was sorely required, the issues of regional balance or of convergence were not of paramount importance. The 1989-1993 plan was based on the EC contributing 55.4 percent of total costs of all land based transport investment over the five years.

3.1.1 The National Development Plan and the CSF for Ireland, 1994-1999

The National Development Plan for 1994-1999 proposed an investment of IR£ 2,605 million in transport developments over the period of the plan. Of this amount, a total of IR£1,727 or 66.3 percent of all transport investment would be devoted to roads, mostly the National network. It was proposed that main line rail and the Dublin Transportation Initiative would receive a total of IR£ 635 million or just over one-third of the amount to be invested in roads. Almost forty percent of all transport investment was earmarked for the Greater Dublin Area. The 1994-1999 CSF agreed a somewhat reduced transport investment package of 2,305 ECU million, with the CSF contribution agreed at 888 ECU million with somewhat greater priority being given to non road transport concerns.

This investment has significantly improved the National Primary roads leading into Dublin, bringing many of them up to motorway standards as well as making substantial progress on the development of the M50 C-ring motorway around Dublin. It has also enabled significant advances in the improvement of public transport, especially in Dublin where Quality Bus Corridors, the development of the LUAS light rail network, the construction of the Port Tunnel and the improvement of the rolling stock have all laid the basis for a vastly improved public transport system.

EU funding for transportation was allocated from both the ERDF and the Cohesion Funds.

3.1.2 The National Development Plan, 2000-2006

In the current National Development plan for the period 2000-2006 transportation has been treated as part of the Economic and Social Infrastructure Operational Programme, alongside Energy and Environmental Protection policies.

In respect of transport, the National Plan proposed an investment package of only €2,426 million or 27.6 percent of the total for the Border, Midland and Western region, inclusive of € 250 million for Regional Public Transport.


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Table 14: Transport investment 2000 – 2006. € Millions.

Priority TOTAL INVESTMENT BMW Region

National Roads 6,748 2,479

Public Transport 3,051 477

TOTAL 9,799 2,956

Source: ESIOP, 2000-2006, page 2.

These proposed expenditure figures have been revised and elaborated upon in the Economic and Social Infrastructure Operational Programme, 200-2006. Table 14 shows that the projected expenditure on Transport had increased by 11.3 percent over the expenditure proposed in the NDP, but the allocation to Public Transport has been increased by 37.9 percent. Under the Operational Programme, the share being invested in the BMW region would be 30.2 percent of the total as compared to 27.6 percent under the NDP.

Of the investment package of € 9,799 million, some € 1,026 million would be contributed by the EU with some 72.0 percent coming from the ERDF and 28.0 percent from the Cohesion Fund.

3.1.3 Transportation – Concluding Note

The Irish economy and its spatial arrangement is strongly focussed on the city of Dublin and the Greater Dublin Area. A system of radial routes – road, rail, canal and even air – converge on Dublin and intensify the centrality of the capital city as the ‘control centre’ of the State. This is an historical pattern which has been repeatedly re-enforced by each new wave of transport innovation over centuries. In terms of movement or economic linkage, Dublin is central – contact between regional centres is relatively difficult and it often easier to go from one peripheral centre to another via Dublin than travelling the shorter and direct route between these centres. This issue goes to the heart of regional development for the country; do you enhance accessibility to Dublin from the regions on the basis of demand or do you invest heavily in developing the interconnectedness of regional centres and thereby build up a counter magnet to Dublin. While this debate is mostly focussed on transport infrastructures, it applies also to energy networks and the provision of social infrastructures.

The EC/EU has contributed significantly to the modernisation of the Irish transport network over the past fifteen years. EU involvement has had an important influence on the composition and implementation of these policies. Thus, the data shows a shift of emphasis in favour of public transport and the environmental procedures have sought to protect habitats, heritage and the wider public interest in the face of large-scale construction.

In terms of the current study, the main concern is that investment policies are strongly demand led. There is abundant evidence that improvements in accessibility to a capital or large city tends to benefit those cities at the expense of the periphery. Alternative models favouring the interlinking of centres in the periphery have received a low priority to-date (see: Walsh, 2003). Preliminary findings from the Mid-term evaluation of the Economic and Social Infrastructure Operational Programme indicate that “actual spending on roads in the BMW counties between 2000 and 2002 was only 69.1 percent of projected spending . . . in contrast to overspending in the S&E regions where roads investment between 2000 and 2002 was 138.1 percent” of the projected level. (Sourced in Irish Times, 09-10-03).


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ENERGY INVESTMENTS AND REGIONAL CONVERGENCE

Improvements in energy policies and investment in this sector have featured strongly in the National Development Plans of the past fifteen years. Thus, the National Development Plan, 1988-1993 detailed an investment programme of IR£ 478 million (€ 618 million) to strengthen energy supplies and to reduce costs.

The National Development Plan, 1994-1999 proposed an investment of IR£2,137 million (€ 2,713 million) in energy developments and conservation measures over the period of the plan, with the investments being “ widely dispersed, due primarily to the extent of resources require for the electricity supply network.”

In the National Development Plan, 2000-2006 energy is dealt with as part of the Economic and Social Infrastructure Operational Programme. A budget of €185 million was allocated for the development of the sector, which is almost equally divided between the two NUTS II regions. These funds were for the promotion of energy efficiency, research and development, alternative energies and a focus on improving energy efficiency in the pre-1980 housing stock.

This investment plan was revised downwards in the ESIOP with €223 million being allocated for “sustainable energy” with € 711 million of the total being contributed by the EU from the ERDF. The share of the total funding going to the BMW NUTS II region has been reduced to 35.0 percent.

TOURISM INVESTMENT AND THE REGIONS

A draft of the post evaluation of the Tourism Operational Programme 1994-1999 has just been completed and forwarded to the EU. That evaluation and the audited figures show that €749.4 million was spent under the programme, with the total Co-financed expenditure being €469.8 million or 62.3 percent of the total while the EU participation from the ERDF amounted to €327.3 million, ie. almost 70.0 percent of the total co-financed monies and 43.7 percent of the cost of the Operational Programme. Table 15 gives a regional break-down for the spend of Measures 1 and 2 of the OP over the five years.

The heading ‘several’ refers to investments where projects transcended the boundaries of one or more regions. Altogether, some 32.0 percent of the total budget of the OP was spent in the BMW regions with the West region (including Galway) accounting for almost two-thirds of expenditure in the BMW.


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Table 15:Percentage Break Down of Tourism Spend, Measures 1 & 2 of 1994-99 OP

Several Border Midland West % Share

of BMW

Natural and Cultural Tourism

National Regional Cultural 0 4.86 5.45 16.2 26.51

Monuments and HistoricalProperties

3.14 2.69 1.22 7.11 11.02

Natural Environment 55.62 0.88 1.1 17.34 19.32

Sub Total-Sub-Programme1 11.74 3.53 3.54 14.17 21.24

Product Development

Large Projects 3.78 5.28 13.35 42.36 60.99

Information and Heritage 7.99 1.76 6.8 10.17 18.73

Tourism Angling 10.16 13.06 9.96 38.03 61.05

Special Interest 5.28 16.36 9.6 11.46 37.42

Accommodation 0.79 18.65 4.67 15.63 38.95

Environment 17.57 16.74 0 14.42 31.16

Sub Total-Sub-Programme2 5.79 9.58 8.64 21.87 40.09

TOTAL Sub-Programme 1&2 8.36 6.97 6.44 18.54 31.95

Source: Data supplied by Ger Banville, Dept. of Arts, Sports & Tourism.

ENVIRONMENTAL EXPENDITURES

Any attempt to quantify the total expenditure on environmental issues is fraught with difficulty for a variety of reasons. Firstly, the definition of what is environment is complex and diverse. All sectors have an interest in ‘environmental matters;’ many have obligations in respect of environmental management and some have financial responsibilities in this area. Environmental policies are the responsibility of many Ministries and agencies and of all levels of administration. So too with EU funding for environmental improvements which can be found in almost all programmes and which range from EU assistance of €77 million for the Drogheda sewerage scheme under the Cohesion fund to € 78,000 for a footbridge in Co. Monaghan under the PEACE 11 programme. The National Development Plan, 1994 – 1999, allocated €832 million to fund an Environmental Services OP, some 74.2 percent of the funding being EU aid. In the current National Development Plan, 2000 – 2006 a sum of €3,174 has been allocated for “Water and Waste Water” improvements. Out of this total sum €2,298 million is being provided to the regions, with 27.5 percent, (€870 million), going for environmental protection within the BMW region.

Table16 highlights those parts of the National Development Plan, 2000 – 2006, which have environmentally relevant elements. However, obtaining a comprehensive, reliable regional breakdown of such data or of the actual expenditures since 1999 is beyond the resources of this case study. While much work has gone into the development of environmental indicators, including urban quality of life measures, (see: Pender et. al., 2000; EPA, 2002), relatively little work has been devoted to the measurement of environmental investments by industry.

The exception to this is work by Barry for the year 1998, (see: Barry and Convery, 2002). While much good research is now being undertaken, including research by the Environmental Protection Agency, there is a need for a much stronger regional focus and for


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further investment to derive credible estimates of environmentally focussed abatement expenditure. (see: Clinch, 2001).


Environmentally Relevant Element

Amount of Programme

€ Millions

Main Programme and Environmental Features

National Roads 7,587 Bringing key national routes up to Motorway standard.

Dublin Public Transport 2,555 Light rail, suburban rail, QBCs and rolling stock.

Regional Public Transport

1,048 Improvements to national rail system.

Water and Waste Water

3,168 Meet urban Wastewater Directive in respect of 155 agglomerations, each with population equivalent of 2,00 persons.

Meet Drinking Water Directive requirements.

Invest in water conservation and catchment protection and water quality monitoring.

Coastal Erosion 44 Provide environmentally protection and research

Solid Waste 825 Rationalise municipal waste landfills; create a

network of 20 state of the art facilities;

promote recovery and develop composting.

Energy 185 Promotion of alternative energy and efficiency.

Rural Environmental Protection Scheme

1,905 Conservation, protection of habitats and water courses.

Agri – Waste Management

187 Improved animal housing, and farm waste storage.

Forestry 736 20,000 ha. Per annum to be planted.

Invest in roads and woodland improvements.

Environmental Research

25 Measurement of impacts; develop systems;

Demonstrate best practice and instruments and Techniques to assist policy and decision making

Total: 18,256

Source: National Development Plan, derived by Professor Peter Clinch, UCD, 2001.


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3.1.4 Community transfers to the BMW region – concluding note

This section has examined the detail of the principal sources of EU transfers, as well as into the BMW region. In general, two broad conclusions can be derived from this analysis. For the most part, the region has secured a below par share of what may be described as productive investment over the past decade. It is clear that the region receives a small share of agricultural transfers related to intensive, high quality production. National Development Plan investment for the years 2000 to 2006 was set at 32.8 percent for the region, but appears to be lagging seriously behind that forecast share.

Expenditure by the Cohesion Fund has been shown to be heavily weighted in favour of projects outside the BMW region, while the allocation of State assistance to companies by the major development agencies can be seen to have invested just one quarter of their allocations within the BMW region. There are two particular concerns relating to state aid distribution – the declining share of total going into the region in 2002 as compared to 1992 and the very small share of IDA investment in the region in 2002 with implications for the region in terms of foreign investment and the attraction of modern high technology firms. The second conclusion is that the BMW region attracts a good share of other investments such as agricultural headage payments, compensatory payments and the Rural Environmental Protection Scheme. Such payments make an important contribution to family incomes in the region, but they do little to advance the structural transformation of this lagging region. This is compounded by the widely dispersed nature of such payments within the region and the consequent loss of significant agglomerative effects.


The previous section of this case study has outlined many of the more important aspects of the various Community funded actions. Thus, the “cumulative effect of the CSF is to raise GNP by between 2.5 and 3.0 % by 1998-9” – see: FitzGerald, 1998. While the CSF funding has been an important stimulus to the Irish economy, it could not be expected to counter regional divergent trends even if this had been the focus of the CSF investment. In fact, prior to the year 2000 the Irish State was deemed to be one NUTS II region and internal variations were of secondary concern behind efforts to expand the National economy. In line with this, the Mid –Term evaluation of the 1994 – 1999 CSF was based on the following themes: administrative change, economic impact, human capital, infrastructural investment, and aids to the private sector, (Honohan, 1997). There was little consideration of either regional issues or the impact of the CSF/NDP investment on intra regional divergence or convergence. The issue of regionalism only came to the fore in the preparations for the CSF/NDP for 2000 –2006.The emphasis had been on the delivery of successful projects and programmes, regardless of location and existing deficiencies and needs took priority over strategic concerns.

This is not to minimise the undoubted benefits of local projects, whether as part of the CSF or under Community Initiatives. EU expenditures have contributed to the prosperity of the country, aspects of rural policy have helped to maintain the population in the countryside, badly needed infrastructure projects have been completed and the visual appearance of both town and country has been enhanced for residents and tourists alike. The quality of life has been enhanced. In the case of the BMW region, it is possible to point to a diversity of successful projects including the opening of the Shannon-Erne waterway, the erection of the Ceide Fields interpretative centre, various roads improvements, the Lough Mask water treatment plant, the Clare island community centre, the LEADER funded Arigna museum of mining and the numerous local projects funded under the PEACE programmes in the Border counties of the State within the BMW region.


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The Shannon-Erne Waterway Project

An Example of a Successful EU-Funded Project in the Irish BMW Region.

The Shannon-Erne Waterway project is one of the larger EU funded projects to have been undertaken within the area now covered by the Border, Midland and Western Regional Assembly.

A sixty-three km. long navigation connecting the rivers Shannon and Erne running through the counties of Leitrim, Cavan and Fermanagh in the north-west of Ireland was constructed in the middle of the 19th century. The waterway consisted of a combination of lake, river and still-water canal passing through some of the poorest , most deprived and emigration ravaged parts of the island. The problems of the area were intensified in 1922 with the political division of the island as this area became a frontier region between two countries. While parts of the waterway were intensively used, the canal as a whole was unsuccessful, little used and it had lain derelict for most of the 20th century.

During the 1980’s a strong case had been put forward for the restoration and reopening of the waterway. This case was based on the need to revitalise the local economy through the opening up of the tourism potential of the area. The case was helped by the reality that the waterway connected the two largest rivers on the island, thus creating an even larger waterway of some 380 kms in length. The project also had a cross-border dimension, linking, as it did, the Republic of Ireland and Northern Ireland. The proposal to reopen the waterway had the commitment and strong support of both governments, the EU, and the International Fund for Ireland.

The waterway was restored using a work-force of up to 330 personnel am it was officially reopened in 1994. The total cost of the project was IR£ 34 million or € 43.2 million., with 50.0 percent EU funding via INTERREG and the ERDF.

Traffic on the waterway is continually monitored and the number of boats entering the system is put at 6,500 per annum. The benefits to the area have been obvious since the commencement of the project. The reconstruction provided badly needed employment along the corridor, which in turn provided a cash flow for the local economy. The reopening of the waterway provide the opportunity and gave confidence to local businesses including pubs, restaurants and tourist accommodation providers. The resultant growth in tourist traffic has also led to the establishment of a variety of local craft activities and innovative tourism projects. More significantly, this project has transformed the perception of an area, long peripheral to both the Republic of Ireland and Northern Ireland, into an important link area of central importance to inland navigation and tourism in particular.

Sources: Information provided by Waterways Ireland, Ltd.

For further information see:

Bannon, M.J. and P. Russell, “The Ballinamore - Ballyconnell Canal Project” in EUREG, No. 2 , 1995, pp 70-71. Also please see:

Flanagan, P., The Shannon - Erne Waterway, Wolfhound Press, Dublin, 1994, 128pp.

5 COORDINATION

The matter of co-ordination can be examined at various levels. At the preparatory stage, the National Development Plan prepared by the government in consultation with the EU forms the basis for discussion and ultimate agreement on the CSF. The central implementing body for the CSF/NDP is the Department of Finance, with other Ministries and bodies having devolved responsibility for specific Operational Programmes. The major innovation in the CSF/NDP was the establishment of Regional Assemblies for the delivery of


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the Regional Operational Programmes. Thereafter, co-ordination is the responsibility of the various Monitoring Committees. While these are widely representative, there is a question mark over their effectiveness or their ability to make significant changes. There is some concern that Community Initiatives lie outside the CSF and this can give rise to co-ordination problems. It is hoped that the Regional Assemblies will enhance the extent and quality of co-ordination for their regions, but it has also been suggested that the Regional Assemblies are devoting too much time to the monitoring of national programmes at the expense of the concerns of their own region.

6 GOVERNANCE

Ireland has long been recognised as being one of the most highly centralised of the fifteen Member States of the EU, (Bannon, 1977; Bannon, 1991; Callanan and Keoghan, 2003). This high degree of centralisation can be seen in the extensive role played by central government in almost every aspect of Irish life, a role supported by a large array of uni-functional State Boards and Agencies. This concentration of centralised power is in marked contrast to the insignificance of Regional Authorities and the functionally limited role of Ireland’s local authorities. The concentration of public authority power is paralleled and in many cases exceeded by the concentration of corporate power, higher education, research facilities, the media, the arts and social affairs in the capital city and its region.

The past five years have witnessed some changes in the patterns of administration and some moves towards a limited form of governance. As Dublin has become more expensive and congested, there has been some relocation of private firms to the suburbs or out into the Greater Dublin region. The government has also relocated some government work out of Dublin to dispersed locations across the country, euphemistically titled as “decentralisation.” For the most part the work involved has been routine, and while the receiving locations have benefited from the increased expenditure, the relocations have had little strategic impact. The recently published National Spatial Strategy, 2002 – 2020 provides a blue print for future relocations in the context of developing regional centres with the capacity for agglomeration and urban effects. Centralisation can also be viewed as a geographic concept in which Dublin is allowed to expand, often justified on the dubious basis of enhancing the national competitiveness of the country, (see: Bannon, 2000)

From the viewpoint of this case study, it is possible to identify contrary tendencies at work at the present time. On the one hand, there is a move to downgrade some existing regional institutions and to establish new implementation or co-ordinating bodies at the centre. At the same time, the government is committed to strengthening local government, implementing the White Paper on Better Local Government: A Programme for Change (1996). Efforts are under way to widen the development role of local government and County Development Boards have been established. Drawing on the experience gained under the EU funded partnership programmes in the 1990’s there are serious attempts to make local government more participatory and inclusive.

In terms of regions, these can be described under three headings. Many central agencies have established regional executive arms to deliver their specific services. Such regional bodies may operate within “regions” designed to meet their specific requirements.

In 1994 a set of eight Regional Authorities was established to assist in the co-ordination of development and development plans within their respective regions. Although these Regional Authorities have statutory authority, their resources are limited and their impact largely confined to the co-ordination of public services within their regional area. These are recognised as the NUTS III Regions for Ireland.


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As part of the negotiations for the Community Support Framework 2000 – 2006, it was agreed that the state be divided into two NUTS II regions – the South and East, (S & E) and the Border, Midland and Western (BMW) regions. Each of the two regions would have a Regional Assembly and an executive to implement policy. The principal functions of the Regional Assemblies are to:

• Manage the Regional Operational Programme under the National Development Plan.

• Monitor the general impact of all EU Programmes under the NDP and the CSF in their region.

• Promote the co-ordination of the provision of Public Services in the regions.

• Evolve a role in creating a regional identity.

• Highlight issues of concern for the regions and

• Ensure that national policies take the regional dimension into account.

Within the context of the National Development Plan and the Community Support Programme, two of the important functions of the Regional Assemblies are the implementation of the Regional Operational Programmes (BMW allocation of €4,090 million).

Clearly, the involvement of some elected local representatives in the Regional Assemblies has in effect provided a link between local and national levels through the regions.

One of the benefits of EU involvement at every level has been the requirement for greater openness, transparency and participation in EU funded activities at every level. This can be seen in the agreed structures for the County Council Task Forces established under the PEACE II programme at local level, as in the growing role of all forms of partnerships at national level

7. CONCLUSIONS

This case study has examined the Border, Midland and Western NUTS II region within the Republic of Ireland. While the theme of ‘saving the west’ has been long and vociferous within domestic politics, many of the actions taken to deal with the problems of the west were palliative in nature and too often little attention was paid to strategic approaches to the long-term problems. As a consequence, within a centralised state, the western half of the country continued to decline and to attract relatively small shares of new investment. Even in the relatively prosperous 1990’s, modest population growth was insufficient to maintain the areas share of the state total.

EU funding has been very important and beneficial to the Irish economy, but this investment has been focussed more on raising Ireland’s GDP to the EU level than with tackling internal issues of regional divergence. Only in 1999, in preparation for the 2000 – 2006 CSF/NDP was it agreed to divide the state into two NUTS II regions, each with its own Regional Assembly.

This case study has attempted to track the flow of EU funds and state aids within the state. The general conclusion is that most investment programmes concerned with productive or strategic investment are heavily weighted against the BMW region and the share going into the region often falls well short of even the region’s present share of 27.0


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percent share of population or even the region’s 19.0 percentage share of the state’s total GDP. The case study also outlines the rather faltering steps being taken to move from a centralised administration to a governance for the region.


In a changing Europe, where major changes are taking place in relation to agriculture and where there will be increased competition for EU funds, it is desirable that a much greater percentage of available funds be channelled into strategic investments with long term potential for the structural transformation of lagging regions. It is unrealistic to expect that demand-led policies can significantly ameliorate much less overcome the entrenched problems of regional under development and regional divergence.

Ireland now has committed to implement its National Spatial Strategy, 2002-2020, a document which draws its inspiration from the ESDP reports and agreed agenda. It is reasonable to expect that future EU investment should be used to support such a strategy and to assist in leveraging public exchequer and private funding to do likewise. Such a vigorous strategy could give hope that the structural problems of the BMW region might be tackled and that increasingly scarce resources would not be dispersed or scattered with minimal strategic effect.

Having regard to the limited scope and powers of Irish local government and the rather slow movement towards ‘governance’, coupled with the historical lack of regional administration, it is important that the innovation to establish the two Regional Assemblies is supported and developed into the future, leading towards regional administration and regional government in the medium term.

Finally, there is an urgent need to rationalise the component units and overall shape of the NUTS II subdivisions of the Republic of Ireland. Such a rationalisation needs to have regard to internal coherence, accessibility and urban realities. Ideally, the NUTS II regions should develop into standard regions both for development and for the delivery of services.


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BIBLIOGRAPHY

• Bannon, M J., et. al., 1977, Service–Type employment and Regional Development, National Economic and Social Council Report No 28, Dublin.

• Bannon, M. J., 1990, “The contribution of the Management System to Local and National Development,” in City and County Management 1929-1990 – A Retrospective, I.P.A., Dublin.

• Bannon, M. J. et. al., 2000, Development Restraint and Urban Growth Management, A Research Report prepared for the National Spatial Strategy Team, Department of the Environment and Local Government, Dublin.

• Bannon,M. J., 2003, “Regional Policy: Reality or Myth?”, Paper presented to Governance Conference, Department of Government, NUI Cork.

• Barry, C. and F. J. Convery, 2002, “Bridging the Gap: National Accounting as a Tool for Policy Integration,” in F. Convery and J. Feehan, eds., Achievement and Change: Rio + 10 and Ireland, Environmental Institute, UCD, Dublin.

• Border, Midland and Western Regional Assembly, 2003, Submission to An Taoiseach on “Balanced Regional Development in the BMW Region.” Border, Midland and Western Region, 2000-2003, Monitoring, Progress and various reports.

• Buchanan, C. and Partners, 1969, Regional Studies In Ireland, An Foras Forbartha, Dublin.

• Callanan, M. and J. Keoghan, 2003, Local Government in Ireland: Inside Out, IPA, Dublin.

• Clinch, P., 2001, Reconciling Rapid Economic Growth and Environmental Sustainability in Ireland, Environmental Studies Research series, W.P. 01/01,UCD.

• Department of Environment and Local Government, 2002, The National Spatial Strategy 2002-2020, Stationery Office, Dublin.

• Department of Environment and Local Government, Better Local Government: A Programme for Change, Stationery Office, Dublin.

• Environmental Protection Agency, 2002, Environment in Focus: Key Environmental Indicators for Ireland, EPA Publications, Wexford.

• FitzGerald, J., 1998, “An Irish Perspective on the Structural Funds,” European Planning Studies, Vol. 6, pp. 677 – 694.

• FitzGerald, J. et al., editors, 1999, National Investment Priorities for the Period 2000 2000 – 2006, ESRI, Dublin.

• Fitzpatrick Associates et. al.,1999, Border, Midland and Western Region Development Strategy 2000 – 2006, Prepared for the Regional Authorities. Forrestal, C., 2002, Balanced Regional Development: An Inter-Regional Perspective, M.Econ. Thesis, National University of Ireland, Galway.


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• Government of Ireland,1989, National Development Plan 1989 – 1993, Stationery Office, Dublin.

• Government of Ireland, 1993, National Development Plan 1994 – 1999, Stationery Office, Dublin.


• Honohan, P., ed., 1977, EU Structural Funds in Ireland: A Mid-Term Evaluation of the CSF 1994 – 1999, ESRI, Dublin.

• O’Brien, J. A., 1954, The Vanishing Irish, W.H Allen, London.

• OECD, 1977, Regional Policies: The Current Outlook, Paris.

• OECD, 1999, Economic Surveys: Ireland,: Origins of the Boom, Sustaining High Growth, Paris.

• O’Leary, E., 2002, “Sources of Regional Divergence in the Celtic Tiger: Policy Responses,” Paper delivered to the SSIS of Ireland, ESRI, Dublin.

• Neill, S., A. Leavy and A. Mathews, 2001, Measuring Productivity Change and Efficiency on Irish Farms, Teagasc, Dublin.

• Payne, D., 1999, Policy Making in the European Union: An Analysis of the Impact of the Reform of the Structural Funds in Ireland, Interuniversity Centre for Social Science Theory and Methodology, Groningen, Netherlands.

• Pender, A., et. al., editors, 2000, Environmental Indicators for the Urban Environment, The Environmental Institute, UCD, Dublin.

• Southern and Eastern Regional Assembly, 2003, “ The Southern and Eastern Region - Comparisons with Other NUTS II Regions,” an internal discussion paper, Waterford.

• Southern and Eastern Regional Assembly, 2003, “The Southern and Eastern Region - Comparisons with Other NUTS II Regions,” an internal discussion paper, Waterford.

• Walsh, E., 2003, “An Atlantic Technopolis Needed to Counter the Drift Towards Dublin,” Irish Times, June 6th 2003.


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APPENDIX


- Compensatory – BMW

Early Retirement Scheme – BMW

R.E.P.S. – BMW

Extensification – BMW

Direct Payments to Companies 1992- 2002 – BMW and S & E Regions

NATIONAL DEVELOPMENT PLAN FOR IRELAND 2000-2006. BMW region

Agricultural Tables

- Suckler Cow Premium – BMW

- Ewe Premium – BMW

- Special Beef Premium – BMW

- Slaughter Premium – BMW

- Arable Aid - BMW

OPERATIONAL PROGRAMME FOR TOURISM, 1994-1999


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From: UNIVERSITY COLLEGE. DEPARTMENT OF REGIONAL AND URBAN PLANNING. DUBLIN.

IRELAND:

REGION: SOUTHERN AND EASTERN

ELABORATION:

Author: Michael J. Bannon


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REGIONAL COHESION: THE CASE STUDY OF SOUTHERN AND EASTERN. IRELAND

The Southern and Eastern (S & E) region of the Republic of Ireland accounts for 55.0 per cent of the land area of the state, 73.0 percent of the population and 81.0 percent of the total GDP of the state. The region contains most of the prime agricultural land of the country; it has a relatively mild climate and the countryside has been managed, cared for and intensively used for well over a thousand years. Geographically, the region has been well placed for ready access to British and more recently to EU markets.

A recent analysis has compared the S & E region with other NUTS II regions across the EU. The results show that the S & E region compares very favourably with many of the leading EU regions, ahead of all Objective 1 regions, ahead of most regions that, like the S & E, have the Objective 1 in Transition status. The S & E can be compared to a number of the NUTS regions in the heart of England, to West Flanders, to Denmark, to the Salzburg region and to the Trentino area of Italy.

The S & E region is dominated by Dublin and its expanding hinterland. But in practice, the S & E region is a mosaic of localities with differing track records, differing performances and very different potentials. Many parts of the S & E region have more in common with the BMW region than with the high growth parts of the S & E, especially Dublin.

The driving force of the S & E region is the Dublin metropolitan area and its ever expanding hinterland. Dublin contains a relatively vast array of advantages over any other urban place in the country - the focus of a large mix of interactive advantages which re-enforce each other - the seat of government, the headquarters of all significant aspects of commerce and finance and the dominant centre of the arts, culture and higher education. In addition, Dublin has significant locational advantages, being at the central network of communications within Ireland and a port city with easy access to British and international markets and the location of Ireland’s major airport.

EXECUTIVE SUMMARY

The region has a lengthy and consistent history of settlement and of town building and expansion. Most of the towns and cities of the region have their origins in the first millennium and most were Viking settlements, including Dublin.

Since its foundation Dublin has continuously re-enforced its role – first as a trading centre, then as a colonial capital of the country for British rule and in the 20th century it became the national capital and, more recently, the capital of an EU Member State.


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In terms of assessment, it is clear that EU transfers and state assistance has contributed significantly to the rapid success of the region in the Celtic Tiger era. But in terms of the spatial restructuring of Irish society, or in terms of the promotion or cohesion, little has been achieved. Then, in fairness, the issue of inter-regional cohesion was never on the actual agenda, at least up to the year 2000.

Section 2 of this case study has examined the performance of the S & E region in the context of the state as a whole. Thus the region accounts for 73.5 percent of the total population of the state, an increase since 1991. The region is increasingly urbanised, it has most of the service jobs in the state and in 2002 accounted for 75.0 per cent of all employment in the state and an even greater share of higher order occupations.

Some 79.2 percent of the total GVA in the state is produced in the S & E region, a region where personal income per head is significantly ahead of the state average and where investment in research, science, technology and higher education dominates the national picture.

Section 3 of this case study examined Community transfers into the region and the payment of state assistance to firms within the region. In terms of agriculture payments, cohesion fund investments, structural funds training expenditures, tourism assistance, direct payments to companies on behalf of the state and in terms of investment expenditures, a share of between two-thirds and three quarters of all payments were directed into the S & E region, with the Dublin NUTS III region receiving approximately one third of all payments.

In terms of co-ordination, the Irish approach is robust, embedding as it does the EU inflows, the exchequer funding and private investment into an integrated “National Development Plan.” The array of Monitoring Committees provide another layer of Co-ordination, but their influence is limited.

In terms of evidence of a move towards governance, the rhetoric is positive but the reality is that a highly centralised system of government ensures that effective power is centrally and firmly controlled using arguments of efficiency, effective control and best value for money. Coupled with a lack of regional administration and a weak network of local government, the result is a serious democratic deficit.

The advice of this researcher for the EU Commission would be that in the future funds should be used for the achievement of strategic aims to bring about a more balanced resource base in the country and a more balanced settlement system, broadly in line with the government’s own National Spatial Strategy 2002-2020 and derived in essence from the European Commission’s set of planning principles as set out in the European Spatial Development Perspective of 1999.


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But there is also a need for greater clarity as to the priority to be given to the issues of convergence versus divergence as opposed to other concerns about quality of life concerns.


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INDEX

THE S & E REGIONAL PROFILE: CONCLUDING NOTE

AGRICULTURAL TRANSFERS FROM THE EU TO THE S & E REGION


STATE AID TO INDUSTRY: PAYMENTS BY THE PRINCIPAL AGENCIES, 1992-2002


COMMUNITY TRANSFERS TO THE S & E REGION – CONCLUDING NOTE

6 GOVERNANCE

1 INTRODUCTION THE HISTORICAL CONTEXT THE S & E REGION RELATIVE TO OTHER OBJECTIVE I REGIONS IN TRANSITION: THE CHANGING DOMESTIC POLICY CONTEXT: THE CURRENT PHYSICAL PLANNING CONTEXT FOR THE REGION:

2 THE SOUTHERN AND EASTERN REGION OF IRELAND (S & E REGION)

METHODOLOGY FOR THE CASE STUDY OF THE S & E REGION ADMINISTRATIVE STRUCTURES FOR THE REGION ASPECTS OF THE REGION’S DEMOGRAPHY THE URBANISING OF THE REGION THE CHANGING REGIONAL ECONOMY TRENDS IN REGIONAL PRODUCTIVITY REGIONAL INCOME LEVELS IN THE S & E REGION, 1995 – 2000

3 COMMUNITY TRANSFERS AND THEIR DISTRIBUTION TO THE S&E REGION


OTHER COMMUNITY INITIATIVES STRUCTURAL FUNDS: THE ERDF INVESTMENT IN IRISH REGIONS ESF CONTRIBUTION TO FAS TRAINING INITIATIVES, 2000-2002

TRANSPORT INFRAESTRUCTURE ENERGY INVESTMENTS AND REGIONAL CONVERGENCE



5 COORDINATION

7 CONCLUSIONS


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APPENDIX


Index of tables

Table 1: Administrative Structures Within the S & E Region

Table 2: Population Change in the S & E Region, 1991 – 2002.

Table 3: Large Urban Areas and Centres, 1996 – 2002

Table 4: Estimated Persons at Work by Sector, S & E Region 1992 – 2002.

Table 5: Gross Value Added per Person at Basic Prices, 1995-2000 in €

Table 6: Indices of Disposable Income per Person by Region, 1995-2000.

Table 7: EU Agriculture Payments to the S&E Region, € Millions.


Table 9: Cohesion Fund ‘Commitment Distribution, 1993 – 2002, € Millions


Table 11:Indicative Breakdown of NDP Expenditure in the S&E Region 2000-2006 in € Millions

Table 12: ESF Expenditure Through FAS, 200-2001, €Millions.

Table 13: Direct Payments to Companies - All Principal Agencies, 1992 – 2002, € millions

Table 14: Transport investment 2000 – 2006, € Millions

Table 15: Percentage Break Down of Tourism Spend, Measures 1 & 2 of 1994-99 OP



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1 INTRODUCTION

THE HISTORICAL CONTEXT

The Southern and Eastern NUTS II region (henceforth the S & E region) of the Republic of Ireland is an important, dynamic and rapidly growing European region. The S & E region has a land area of almost 37,000 square kilometres, accounting for 53.0 per cent of the total land area of the State. The region has a close fit with a number of the more prosperous regions of the EU. Within Ireland the region includes all of the historical Province of Munster and most of the Province of Leinster, with economic and social influences extending deep into parts of the contiguous Border, Midland and Western) NUTS II region to the west/north west. This is a highly urbanised and urban centred region containing all but one of the cities of the State, Dublin, Cork, Limerick and Waterford, as well as many of the thriving and important market towns of the country.

The parallel case study on the Border, Midland and Eastern region has provided an overview of the deep divide in economic and social opportunity between the two NUTS II subdivisions of the state. These contrasts derive from the different physical and climatic endowments of each region, from their historical and cultural traditions and from their access to the key drivers of wealth creation, innovation, modernisation and entrepeneurship. Within this framework, the S & E region has the characteristics of a ‘core’ region, whereas the BMW region is beset by too many of the characteristics of a ‘peripheral’ region. However, it must also be pointed out that neither region is homogeneous, both having areas of significant variation from the overall image of the regions.

While the region includes some weaker rural areas and parts that are remote, as well as disadvantaged areas, it is for the most part a prosperous region with a long history of settlement and intensive resettlement. Historically, the roots of the urban fabric of the region go back to the ninth century Viking settlement of the country, if not to even earlier centuries. Each succeeding wave of colonisation and resettlement reinforced the existing cities and towns and developed further settlements. Dublin became established as the centralised capital of the ‘colony’ and the east and south coast ports of the region became established as the principal trading and the important industrial centres of the country. The commercial power of these places has never been challenged within the country and, in the 20th century, Dublin was to re-enforce its dominance as the capital city of a centralised state and, more recently as an EU capital and an increasingly important European and international city, (see: Bannon, 2000a). In short, the S & E region classically illustrates the continuous benefits of ‘cumulative causation’ as each wave of innovation and change has enhanced the role of the region and in particular the size and the dominance of Dublin within both region and the state.

As a consequence of the rapid growth of the Dublin and some other NUTS III regions during the 1990’s, it became necessary to divide the State into two NUTS II regions – the BMW region which retains Objective I status up to 2006 and the S & E region

THE S & E REGION RELATIVE TO OTHER OBJECTIVE I REGIONS IN TRANSITION:

The South and East Regional Assembly carried out a comparative analysis of the S & E region relative to other NUTS II regions across the EU. Using a list of 24 indicator variables, covering output, labour market, economic activity and science and technology, the S & E was compared with all other NUTS II regions. One of the findings is that of the 30 regions closest


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to the S & E none were in the Objective I category and only two others, Northern Ireland and Lisboa e Vale de Tejo, had the status of “ Objective one in transition.”

Of the ten EU regions closest to the S & E, six are from the UK – the Northern Ireland region and five from England; these are regions with “thriving IT and hi-tech sectors and an even spread of urban and rural areas- both features present in the S & E.” (see: S & E 2003). In addition there is one region each from Austria, Belgium, Denmark and Italy. The S & E scores very close to several of these regions on levels of GDP per inhabitant, unemployment and levels of car ownership etc. The Salzburg region compares closest to the S & E in terms of demography, while Trentino-Alto-Adigehas the closest fit under environmental indicators. East Anglia and Denmark have the closest fit to the S & E in respect of transport indicators, while West Flanders and Northern Ireland in terms of agriculture. The S & E fits closest to Leicestershire –Ruthland-Northhampton and Essex in relation to science, technology and higher education indicator scores. Thus, the S & E region fits closely with some of the leading edge regions of the EU and can be seen as a developed, modern and innovative region.

In contrast, the other Irish NUTS II region, the BMW, is placed in 31st position in terms of its closeness to the S & E, a succinct statement of the contrasts between the two regions

THE CHANGING DOMESTIC POLICY CONTEXT:

The parallel case-study report on the Border, Midlands and Western NUTS II region has dealt at some length with recent policy changes and the fact that such changes have proved inadequate to counter the continuing disadvantage of the BMW region. The S & E region, and especially its urban centres, has benefited from its rich, productive hinterland, from relatively easy access to overseas markets, notably in Britain, and from the historical patterns of infrastructural investment, each re-enforcing the dominance of the towns of the region as the commercial, political and social control centres of the island, and the State from 1922 onwards. The colonial dominance of Dublin was to intensify in an increasingly centralised state, where regions did not have an administrative foothold and where the powers and functions were limited and were to be continuously further eroded, at least during the first seventy-five years of the independent state.

The S & E region benefited most from Ireland’s EEC accession; the treatment of the State as a single Objective I region for Structural Fund assistance greatly helped with the improvement of Dublin’s infrastructure and as, the capital city of a Member State of the EU, Dublin’s international standing was recognised. In turn, this status was of significance in ensuring that the Dublin area and other parts of the S & E east region were the principal beneficiaries of the inflow of foreign direct investment in the 1990’s, (see: OECD, 1999). In turn, the importance of Dublin as a location for foreign industrial and service firms became the grounds for intensive investment in information, electronic, airport, higher education, research and other infrastructures within the Dublin area.

The S & E region, particularly Dublin, has benefited greatly from the advent of the “post-industrial economy” in an era of both capital and labour mobility, as Ireland became a prime location for mobile firms in all aspects of the information economy. Other cities in the region had long established, strong industrial traditions. Most of these older industrial enterprises were devastated by the energy and other crises of the 1970’s and the 1980’s. In time, these have been replaced by more modern, high-tech, mostly foreign firms, many working closely with the local universities and institutes of technology across the region. Intensive investment in education and training was one of the important factors in creating


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the skilled and re-skilled work-force for these new enterprises in Dublin, Cork, Limerick, Waterford and elsewhere in the region.

THE CURRENT PHYSICAL PLANNING CONTEXT FOR THE REGION:

Planning is largely the responsibility of the twenty-one principal planning authorities within the region. The five Regional Authorities are charged with co-ordination of development between the various local authorities. In turn both groups often rely on advisory consultancy studies in respect of key strategic issues, the most important of these being the Strategic Planning Guidelines for the Greater Dublin Area, (see: Brady Shipman Martin, 1999). In line with |EU thinking the government undertook and published the National Spatial Strategy, 2000 –2020, in November 2002. The NSS contains proposals to improve the operating efficiency of Dublin and the capital city region and the designation of Gateways and development ‘Hubs’ to counter the dominance of Dublin both within the S & E region and in the state in general. The difficulties of implementing such a strategy in the period post the year 2001, when the Irish growth performance has faltered somewhat, will be considerable, even if the political will is there to take on such a challenge.

2 THE SOUTHERN AND EASTERN REGION OF IRELAND (S & E REGION)

From the mid 1980’s Ireland has successfully operated on the basis of partnership agreements between government, the employers, the trades unions and other social partners. This process had been most successful in the 1990’s; it has been led by central government and government has been seen to be effective. Given the centralised nature of Irish administration and its concentration in Dublin, the partnership process had the added effect of further strengthening the status of Dublin as the control centre of the country.

Building on this successful model, the government with the agreement of the EU assembled their submissions for Structural Funds as National Development Plans, putting together detailed programmes and projects for development using a mix of EU Structural Funds, Irish exchequer funds, private funding and even EIB loans. The result was the series of National Development Plans covering the periods 1988-1993, 1994-1999 and 2000-2006. While these plans were national, they did not give a priority to interregional issues and they had a strong focus on the needs of Dublin as the capital city. While the plans sought to benefit all parts of the country, the S & E region and its cities were to get a major share of the total investment under most programmes and they contributed to the unprecedented growth of the S & E region during the 1990s.

METHODOLOGY FOR THE CASE STUDY OF THE S & E REGION

The approach to this case study involved four related stages of research and investigation. First, there was a need to review the existing literature relating both to the region and to policy approaches being adopted by or for the region, whether local, national or international. Second, a great deal of time was devoted to data sourcing and attempting to overcome the date deficits which exist in almost all areas of analysis relevant to this Case Study. Third, this consultant visited key implementation agencies both in the region and in the national capital, Dublin. Finally, it was necessary to consult with a range of policy makers and researchers familiar with the region, the policies being pursued and the issues of concern for the future. The major difficulty in undertaking this case study has related to data issues. Thus, many of the Operational Programmes under the CSF have limited regional data. This


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issue is made more difficult by the fact that the post evaluations for many of the CSF programmes are not yet complete, while the mid-term evaluations of the 2000 – 2006 CSF will report in July 2003. In addition, many aspects of information are either not available or not of a sufficient level of detail or quality to aid serious evaluation. Finally, the Greater Dublin Area dominates this NUTS II region, but the regional area has little coherence in terms of urban catchments or functional patterns.

Local Authorities (City and County Councils)

ADMINISTRATIVE STRUCTURES FOR THE REGION

The NUTS II S & E region consists of five NUTS III regions, sixteen county councils and four city authorities for Dublin, Cork, Limerick and Waterford – see: Table I. In addition, there is also a complex structure of smaller local authorities. In addition to the regional and local authorities, Shannon Development has a development co-ordination role throughout the Mid West NUTS III region and extending into North County Kerry and into South County Offaly in the BMW region.

Table 1: Administrative Structures Within the S & E Region.

Level (NUTS) II Region Level (NUTS) III Regions

Dublin Dublin City

Dun Laoghaire- Rathdown

Fingal

South Dublin

Mid East Kildare

Meath

Wicklow

Mid West Clare

Limerick City & Co.

Tipperary North

Carlow

Kilkenny

Tipperary South

Waterford City & Co.

Wexford

Southern and Eastern Level II Region

South West Cork City & Co.

Kerry

South East

Udaras Na Gaeltachta plays a development role in the Gaeltacht areas (Irish language speaking) parts of Counties Cork, Kerry, Meath and Waterford. While this may appear as a robust structure for local government, it has more to do with local administration and most decision-making and effective power remains located in central government and the state agencies.

The S & E region is itself a curious amalgam with little geographical or functional coherence. In effect, the S & E region consists of those contiguous NUTS III regions whose level of development in the late 1990s was above the threshold for continuing Objective I status. The region embraces the four strong urban centred regions of Dublin, Cork, Limerick and Waterford. The region contains most of the good agricultural land of the state, most of the industry and virtually all the higher order services. At the same time, the region is far


427


from homogeneous. Dublin and the Dublin economy overshadow the other parts of the region, perhaps less so than in the case of the BMW region, but very significantly, nevertheless.

Table 2: Population Change in the S & E Region, 1991 – 2002.

ASPECTS OF THE REGION’S DEMOGRAPHY

Table 2 provides details of the extent of population change in the region and in the component NUTS III regions between 1991 and 2002. During this period the region increased population by 11.5 per cent or by 302,324 persons. Sixty one percent of the region’s increase took place in the Dublin and the Mid East regions (+ 184,655 persons) and it has to be remembered that Dublin was also over spilling into at least three counties in the BMW region. By 2002 the share of the state’s population residing in the S& E region was 73.5 percent as compared to 73.1 percent in 1991.

Change 1991- 2002 NUTS III Region 1991 1996 2002

Number Percentage

Dublin 1,025,304 1,058,264 1,122,600 + 97,296 + 9.5

Mid East 325,291 347,407 412,650 + 87,359 + 12.9

Mid West 317,069 339,930 + 29,202 + 9.4

South East 383,188 391,517 423,540 + 40,352 + 10.5

South West 532,263 580,605 + 48,342 + 9.1

Total S & E 2,576774 2,660,897 2,879,325 + 302,551 + 11.7

S & E as % of Total State 73.1 73.4 73.5 ---

310,728

546,640

---

Source: Census of Population 1991, 1996 & 2002.

THE URBANISING OF THE REGION

While growth was both vigorous and widespread across the region, especially after 1996, there were large parts of the relatively rural and remoter areas of Cork, Kerry and Limerick, which continued to experience population loss. Growth was either an urban phenomenon or an ‘urban generated’ phenomenon. Between 1996 and 2002 the ‘aggregate rural’ population of the S & E Region increased by 40,573 persons whilst the ‘aggregate town’ population increased by 177,539 persons. Table 3 illustrates the rapid growth of urban centres during the latter half of the 1990s.


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Table 3: Large Urban Areas and Centres, 1996 – 2002

Population Increase City/Town 1996 2002

Number Percentage

Dublin Region* 1,058,264 64,557 1,122,821 6.10

Cork + Suburbs 179,954 186,239 6,285 3.49

Limerick + Suburbs

79,137 86,998 7,861 9.93

Waterford 44,155 46,736 2,581 5.85

Bray 27,923 30,951 3,028 10.84

Ennis 17,726 22,051 4,325 44

Tralee 19,950 21,987 2,037 10.21

Kilkenny 18,696 20,735 2,039 10.91

Navan 12,810 19,417 6,607 51.58

Carlow 14,979 18,487 3,508 23.42

Naas 14,074 18,288 4,214 29.94

Wexford 15,862 17,235 1,373 8.66

Clonmel 16,182 16,910 728 4.5

Droichead Nua 13,363 16,739 25.26 3,376

Celbridge 12,289 16,016 3,727 30.33

* Dublin is defined as Dublin Region including the city and the counties of Dun Laoghaire - Rathdown,

Fingal & South Dublin.

Source: Census of Population 1996 and 2002.

THE CHANGING REGIONAL ECONOMY

While the employment record of the S & E region has traditionally been strong, the performance of the region during the 1990’s was exceptional. The agriculture sector accounted for 10.3 percent of all employment in the region in 1992 but during the 1990s the employment content of the sector declined by 18,300 jobs and in 2002 only 5.4 percent of the workforce are in agriculture, (see: Table 4).

Table 4: Estimated Persons at Work by Sector, S & E Region 1992 – 2002.

Change Sector 1992 2002

Number Percentage

Agriculture, Forestry and Fishing: 89,300 71,000 - 18,300 - 20.5

Production, Building and Construction

236, 346,900 +110,300 + 46.6

Services: 539,000 893,100 + 354,100 + 65.7

Total Employed: 864,900 1,311,000 + 446,100 + 51.6

600

Source: CSO Labour Force Survey, 1992 (adjusted) and 2002 unpublished data from CSO.

During the same period employment in the industrial sector increased by 46.6 percent or by 110,300 jobs – six times more than the number lost to farming and agriculture. The growth of industry in the region arose from the vigorous promotion of Ireland as a prime location for high technology industry, particularly in the ICT and the pharmaceutical sectors. This drive for foreign, high-tech firms was supported by large investments in industrial land


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assembly and servicing, the installation of high-grade communications infrastructure and the skilling of the necessary labour force. Although grant assistance levels in the S & E region are only half that available in the BMW region, firms chose to locate in and around the larger urban centres of the S & E, particularly in the Dublin area. Access to higher education facilities, to research, to the benefit of urban economies and to the supports of a thriving service sector all contributed to the attraction of the region for dramatic industrial expansion.

But most of all, it was the service sector or the economy which most contributed to the region’s outstanding performance in the so-called era of the Celtic Tiger. Overall, employment in the region increased by 51.6 percent or by 446,100 jobs in the decade, a spectacular achievement, see Table 4 above. Some 354,100 of these net new jobs, (ie.79.4 percent) were in services. In 1992 just under two-thirds of all employment in the region was in the services sector but by 2002 that percentage had increased to 68.1 percent of total employment. The reasons for the rapid expansion of services are many and varied. Many of the causes are domestic and relate to increased demands by a young and increasingly affluent population. Others relate to the increasing role of Dublin and the other cities of the region in the life of the country as the attraction of Dublin across the island. There has been the vigorous growth of the international tourism industry and this has benefited much of the S & E region. But an important contributor to the dynamic of the service sector in the region has been the success of policies to attract foreign service firms to locate in Ireland, including financial services, professional firms, design offices and the mobile headquarters of large firms. These initiatives have attracted service firms to urban locations, above all to Dublin where they contributed to a buoyant property market. Ireland also emerged as a popular location for telesales work and providing semi-skilled if routine job opportunities.

In short the economy of the region has been transformed during the 1990’s. While the growth rate has slowed since 2001 and while growth forecasts are now more modest, the indications are for the continued expansion of the region’s economy into the future.

Table 5 shows that the Gross Value Added produced in the region increased by 79.2 percent between 1995 and 2000. BY the year 2000 the GVA of the S & E region was 53.1 percent greater than that of the BMW region! Within the S & E region itself there were considerable variations in the levels of productivity between the NUTS III regions. Thus in the Dublin NUTS III region the index for 2000 was 132.9, which would be comparable to that of the most advanced European regions.

Table 5: Gross Value Added per Person at Basic Prices, 1995-2000 in €

1995

TRENDS IN REGIONAL PRODUCTIVITY

NUTS III Regions 1998 2000

Dublin 17,217 25,140 32,051

Mid East 11,802 14,122 19,432

Mid West 12,283 16,875 22,281

South East 11,199 15,012 19,397

South West 13,670 21,551

14,318 20,474 26,535

28,158

Total S&E Region:

Source: CSO Regional Accounts for the years1995 to 2000.

The South West region, including Cork and its industrial complexes, had a GVA index of 116.8 while in the other thee NUTS III regions the level was between 80.5 and 92.4 Significant differences were evident between the component parts of the region and it must


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be of concern that in a period of unprecedented growth that the gap between the highest level, Dublin at 132.9, and the lowest, the South East at 80.5, has increased between 1995 and 2002.The benefits of growth were unevenly distributed and inter regional variations within the S & E actually widened. In an open, exporting economy like the S & E the level of GVA is not always a reliable indicator of personal of family income.

REGIONAL INCOME LEVELS IN THE S & E REGION, 1995 – 2000

Data on regional income levels has been produced by the Central Statistics Office and the NUTS II and III returns for the region for 1995, 1998 and 2000 are shown in Table 6.While

Table 6: Indices of Disposable Income per Person by Region, 1995-2000.

NUTS 11 Regions 1995 1998 2000

Dublin 115.0 116.6 116.8

Mid East 96.1 96.6 98.5

97.9 99.5 98.4

South East 90.8 89.2

96.9 95.2 94.3

Total S&E Region: 103.2 103.6

Mid West

89.4

South West

103.6

Source: CSO Household Income Data, 1995 – 2000.

However, the S & E region is a mosaic, a patchwork of areas with very different performance levels. The rapid modern growth stands in contrast to the slower performance of many parts of the region and the continued decline of some remote rural areas even in a period of unprecedented high regional growth.

The indices of personal income show relatively little change between 1995 and 2000, actual personal income for the S & E region increased by 62.1 percent as compared to an increase of 59.2 percent in the NMW region. The indices in Table 6 illustrate a widening of the gap between the highest and lowest levels of income within the S & E. Average personal income per person in the South East NUTS II region in 2000 was just 86.2 percent of that in the Dublin NUTS III region.

As with trends in productivity, inter regional divergence appears to have been the pattern not just between the two NUTS II regions within Ireland, but also between the NUTS III regions within the S & E.

THE S & E REGIONAL PROFILE: CONCLUDING NOTE

This overview shows the S & E NUTS II region to be performing as a modern, dynamic, rapidly growing open economy locked into and benefiting from the globalisation of trade and inward foreign investment. The region compares favourably with the leading regions of the EU and the region has been out performing most of the other “Objective I in Transition” regions. While growth has slowed in the last two years, the region continues to perform well and to outpace most other regions of the EU in terms of growth.

The reality is that this is a two-speed region, as indeed is the state as a whole. On the one hand, Dublin has performed akin to a prosperous expanding European capital city,


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supported by the best available infrastructures and a strong message that the ideal location in Ireland is in the vicinity of the capital city. On the other hand, some of the NUTS III regions of the S & E have more in common with the BMW region than they do with Dublin. Dublin dominates the region. The city dominates the country and the urban system. It is a prime high-tech industrial location and it is also a major service location. Given the dominance of central government in the economy and society, coupled with little commitment to regionalism and a weak network of local government, further growth of Dublin relative to other regions appears likely. That is unless the government takes effective action to commence the implementation of The National Spatial Strategy2002-2020.

The accepted fact is that the agricultural transfers did most to assist the stronger farmers to continue to intensify their production and to increase their output and profitability. Since most of the larger farms were in the S & E, as are those with most potential, production supports overwhelmingly benefited the region. The professionalism of farming within this region can be seen in the high take up rates of the Early Retirement Scheme and the ordered transfer of ownership, whereas the environmental and compensatory schemes which are heavily relied upon in the BMW region are less used in the S & E region.

3 COMMUNITY TRANSFERS AND THEIR DISTRIBUTION TO THE S&E REGION

This section of the case study deals with the more important Community Programmes and Initiatives and their impact on and within the S & E region. Community transfers have done much to help enrich the rich, while state transfers to enterprises, albeit at a relatively low rate of 17.5 – 20.0 percent, has added to the locational advantages of the S & E and especially to the desirability of a Dublin business location.

AGRICULTURAL TRANSFERS FROM THE EU TO THE S & E REGION

Table 7 below shows that between 1992 and 2002 a total of €5,1792.9 Million was paid in agricultural subsides to farming in the S & E region. This is considerably more than was paid in the BMW region over the same period of time. The major transfers were made under the Suckler Cow, Ewe and Special Beef Premiums and Arable farming, (see: Table 7).


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Table 7: EU Agriculture Payments to the S&E Region, € Millions.

Total Payments

Percentage of State Programme

S&E 1992 – 2002

Expenditure in 2002

2002

Average annual Payment 1992–

2002

847.3 77.0 103.2 45.9 45.2

Ewe Premium* 102.3 44.2 45.9 45.1

Special Beef Premium*

1,020.9 145.8 164.5 62.1

235.6 33.7 64.2 79.3 63.1

Compensatory* 461.7 66.0 92.7 37.6

668.3 101.3 79.3

Extensification 334.6 49.5 0.0 0.0

Early Retirement Scheme**

425. 47.3 56.9 71.9

462.4 66.1 41.4 70.8 41.1

Total EU Payments 5,1792.9 --- 712.9 52.6

Suckler Cow Premium

716.2

61.2

Slaughter Premium*

39.9

Arable Aid* 95.5 79.7

51.2

9 72.2

Rural Environmental Protection Scheme**

54.9

Source: Data supplied by John Fox, Paddy Kelly and William Murphy, Dept. of Agriculture, Food and Rural Development.

* Data for1996 to 2002;

** Data for 1994 to 2002.


Over the past fifteen years there has been a concerted effort to develop the Irish fishing industry. This has been undertaken within the framework of the National Development Plans, and involving Irish public and private sector assistance together with EU support from the Fisheries Guidance Fund, the ERDF, the ESF and with contributions from both INTERREG and the PEACE programme. The fishing industry has made an increasing contribution to national development in recent years. Thus, since 1992 the value of the exports of fishery products has increased from €240 million to almost €400 million. Fisheries development is especially important in many of the remoter areas of the BMW region, where alternative sources of employment have been limited.

The PESCA Community Initiative was particularly important for Ireland in the period 1994-1999. The Initiative involved an integrated approach to the industry and it also provided almost €8 million in financial aid for development. PESCA assistance was used to assist diversification, to enhance stocks, to improve quality, to assist in the development of marine tourism and fro research, training and miscellaneous activities.

Under the National Development Plan, 2000-2006, a sum of €64 million was earmarked for the continued development of the marine sector through research, technological development and innovation, with € 18 million or 28.1 percent being designated for the BMW region. In June 1998, the Government launched the Whitefish Renewal Programme to assist in the introduction of new and more modern vessels, the provision of safety equipment and the modernisation of the existing fleet. Under this programme some 700 projects have been assisted around the country and a total of €4,697 million has been paid in grants to the industry under the programme, with 44.0 percent gong


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to assist developments in the coastal counties of the Southern and Eastern region, principally in the counties of Cork and Kerry with ready access to the SW coastal waters.– see Table 8.

Table 8: Fishing Fleet Development and Whitefish Renewal Scheme - EU Fisheries Payments. 1988-2000

NUTS III Regions Total EU Payments (€000s) Percentage Share

Dublin 4.1

Mid East 2 0.0

Mid West 15 0.1

South East 467 10.7

South West 3,726 85.1

4,384 100.0

S & E as Percentage of Total State 44.0

174

Total S & E Region

Source: Based on information supplied by Bridie Cullinane, Dennis Maher and Kevin McDonnell, Department of Communications, Marine and Natural Resources.


Ireland was one of four Member states of the EU to benefit from the introduction of the Cohesion Fund which was established in 1993. This fund has made an important contribution to the improvement of Ireland’s infrastructure over the past decade, involving a total investment of almost €2 billion since its inception. Data on the fund is collected on a project basis rather than by region. An examination of the project details shows that the majority of major projects receiving Cohesion monies were located in the S & E region or along the M1 route through Co Louth and forming the spine of ‘the Dublin-Belfast corridor.

Table 9: Cohesion Fund ‘Commitment Distribution, 1993 – 2002, € Millions.

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Total

141.9 167.7 190.7 219.6 245.4 258.6 271.9 188.6 127.4 184.9 1,996.8

Source: Data supplied by Liam Hennessy, Department of Finance.

Major roads project within the S & E funded under the Cohesion fund include the MI route in Fingal (€150 million); part of the M50 Dublin motorway (€87 million) and the Arklow by-pass (€70 million. A total of €88million is currently been invested from the Cohesion fund in up-grading the Heuston rail terminal in Dublin, while main drainage schemes in Cork and Limerick will receive a total of €253 million. A new wastewater treatment plant for Dublin has just been completed with the aid of €237 million from the fund.

In short, the Cohesion fund has invested heavily in major projects, particularly in the cities and the roads of the S & E region.


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The M50 Dublin Motorway – the C Ring Project*

AN EXAMPLE OF A MAJOR EU-FUNDED PROJECT IN THE IRISH SOUTHERN AND EASTERN REGION.

Dublin is a medieval city with a converging pattern of radial streets feeding into the centre from the suburbs, the region and the country as a whole. The 1967 Advisory Regional Plan by Myles Wright put forward the idea of a motorway box around the built-up area, so as to ease access between suburbs and to redistribute road traffic away from the city centre. The Dublin Transportation Study further refined and developed this concept which was subsequently adopted as an integral part of the various Development Plans for the areas affected. Land reservations were made throughout the 1970’s and the 1980’s and the first section, ‘the Western Parkway’ was opened in 1990. Construction of sections continued throughout the 1990’s and the building of ‘the South Eastern Motorway’ section is underway at present.

The M50 project has involved the construction of approximately 45 kms. of carriageway, almost all to motorway standard, together with bridges, interchanges, access roads and ‘free flow slips’. The total estimated cost of the project was of the order of € 970 million, of which €772 million or 79.6 percent was to be contributed by the EU. The EU contributed to most of the elements of the project, with levels of funding being between 71.0 and 85.0 percent of total expenditure. Of the € 772 contributed to the cost of the M50 by the EU, the sum contributed by the Cohesion Fund totalled € 688 million or almost ninety percent of the EU financial input. The remainder of the EU contribution was provided from the European Regional Development Fund.

In addition to the M50 per se, construction of a 4.5 km tunnel linking the Dublin port to the M50 is underway at an estimated cost of €685 million. The planning and design costs of the Dublin Port Tunnel were co-funded by the EU Cohesion Fund. A second West Link Tool bridge on the M50 Liffey crossing is being financed through a Public-Private partnership at a cost of €23 million. Finally, it is planned to upgrade the northern sections of the M50 at an estimated cost of €750 million from Irish exchequer finances.

Thus, the EU has contributed upwards of € 1,000 million towards the costs of the M50 motorway around Dublin, together with access routes including the port tunnel. Without the EU contribution it is unlikely that Ireland would have been able to proceed with the M50 project and, without it, the era of the Celtic Tiger with Dublin at its core would have been unlikely to have happened.

The M50 motorway is central to current and future transport planning for Dublin by the National Roads Authority, the Dublin Transportation Office and the local planning authorities. Approximately, 80,000 vehicles pass through the Blanchardstown toll-booths on the M50 each day.

Sources: Myles Wright, (1967), The Dublin Region: Advisory Report and Final Plan, Dublin: Stationery Office.

The Dublin Transportation Study, (1972), Dublin: An Foras Forbartha.

Steer Davies Gleave, (1994), Dublin Transportation Initiative: Final Report, Dublin: Stationery Office.

Dublin Transportation Office, (1998), Transportation Review and Short-Term Action Plan, Dublin.

* The author acknowledges the assistance of Finbarr Crowley in the provision of data for this paper.

OTHER COMMUNITY INITIATIVES

Several Community Initiatives have contributed to the improvement of the quality of life and the development of improved procedures throughout the region. In terms of the larger cities, the URBAN initiatives have been particularly important in developing techniques and know-how, as well as undertaking important works. The URBAN initiative from 1994 to 1999 did important work in the areas of Tallaght and Ballymun-Darndale in Dublin as well as in neighbourhoods on the north side of Cork city. The current URBAN project is focussed on the Ballyfermot district of Dublin. There is also a large number of positive actions which have


435


helped to improve the urban areas or brought fresh thinking on how to do things, projects under Aricle10 and projects funded under INTERREG II C, as well as the work of ADAPT and various employment and training related actions.

Throughout the region the LEADER programme is of continuing importance for rural and village improvements, while the “East Coast INTERREG” has led to co-operation with local authorities in Wales and to the improvement in communications between the two coastal areas.

ESF FIFG

STRUCTURAL FUNDS: THE ERDF INVESTMENT IN IRISH REGIONS

Under the Community Support Framework Programme, 1993 – 1999, the EU and the Irish Government jointly agreed an investment programme under which a total Structural investment programme of €18,717.0 of which €6,630.5 or 34.5 percent was contributed by the EU Structural Funds, Table 10. Of the total EU Structural Funding, 46.9 percent was derived from the ERDF, while the ESF accounted for 34.8 percent. Of some note in the context of the present study is the small share contributed from the FIFG. The figure of €6,330.5 million in EU funding can be compared with the Government estimate of €8.1 billion expenditure in respect of total co-financed public expenditure under the CSF from 1994 to 1999, (see: National Development Plan, 1994-1999, page 273).

Table 10: Revised Forecast of Structural Fund expenditure in Ireland, 1994 – 1999.

Community Participation

Year ERDF EAGGF Total S/Fs.

1994 217.9 135.1 313.3 0 666.3

1995 350.7 300.5 176.7 3.5 831.4

1996 364.7 330.9 215.7 6.5

481.2 379.4 205.7 10.0 1,076.3

1998 658.8 416.2 170.1 11.8 1,256.9

1999 894.7 462.7 198.8 21.7 1,577.9

2000 3.9 3.9

Total: 2,971.9 2,203.0 1,102.1 53.5 6,330.5

917.8

1997

Source: Data supplied by Ms. Orla Kelly, National development Plan office.

The National Development Plan 2000-2006 contains a commitment to an investment programme of €40,488 million, of which it is intended to spend €34,632 million or 67.3 percent on projects in the S & E region, (see: Table 11). Up to three quarters of the indicative budget for economic and Social Infrastructure and for Employment and Human Resources is to be invested in the S & E, while the Regional Assembly has the responsibility for the management of its own Operational Programme with its budget of €2.6 billion to deal with matters such as local infrastructures including local roads, the promotion of micro enterprises and the enhancement of social inclusion measures throughout the region.


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Table 11:Indicative Breakdown of NDP Expenditure in the S&E Region 2000-2006 in € Millions.

Programme Expenditure in S&E Region Percentage of Total State

Economic & Social Infrastructure

16,401 73.4

Employment & Human Resources

8,957 71.3

Productive Investment 3,632 63.3

S & E Regional Programme 3,791 100.0

CAP Accompanying Measures 1,849 42.8

Total all Programmes: 34,630 67.2

Source: National Development Plan 2000-2006, page 11.

ESF CONTRIBUTION TO FAS TRAINING INITIATIVES, 2000-2002

Table 10 above shows that the 1994-1999 CSF for Ireland allocated €2,203 million from the ESF for Human Resource development over the six years of the Programme. More recently the National Development Plan, 2000-2006 assigned an expenditure of € 12.6 billion for Employment and Human Resource development, of which €9.0 billion or 71.3 per cent was to be invested in programmes within the S & E region. Table 12 shows the inter-regional distribution of expenditure by FAS, the Irish Employment and Training Authority, with over one third of total expenditure going into the Dublin area and 65.3 of all payments going to the S & E region.

Table 12: ESF Expenditure Through FAS, 200-2001, €Millions.

Region 2000 2001 Total S&E Region

Regional Share of National Total

Dublin 22.519 18.164 40.683 31.8

2.323 4.283 3.4

Mid West 7.043 5.596 12.639 9.9

South East 6.946 5.112 12.058 9.5

South West 7.851 5.813 13.664 10.7

Total S&E 46.682 36.645 83.327 65.3

Mid East 1.960

Source: Data supplied by Roger Fox and John Lee, FAS.

STATE AID TO INDUSTRY: PAYMENTS BY THE PRINCIPAL AGENCIES, 1992-2002

Under EU regional aid regulations assistance may be given to private firms up to a maximum of 17.5 percent in the Dublin region, a maximum of 18.0 percent in the Mid East region and 20.0 percent elsewhere in the S & E region. Table 13 provides details of payments to companies over the years 1992 to 2002 by the principal development agencies of the state, the Industrial Development Agency, Enterprise Ireland, Shannon Development and Udaras Na Gaeltachta, Table 13. In total, a sum of €3,063 million has been paid by these agencies to support private firms, mostly in the manufacturing sector of the economy. Of this total figure, some €2,316 million, or 75.6 percent, was paid to firms locating in the S


437


& E region. The total amount of aid paid to firms in the Dublin and Mid East regions was €1,377 million or 59.5

Table 13: Direct Payments to Companies - All Principal Agencies, 1992 – 2002, € millions.

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

All Agencies

Dublin 49,644 51,735 59,176 72,764 118,981 124,149 135,693 103,040 128,874 63,907

Mid East 26,394 38,397 26,051 42,726 60,987 62,146 23,098 21,994 18,746 70,048

32,366 43,031 27,627 45,178 41,510 42,734 30,917 11,448 11,576

South East 13,513 13,498 13,267 23,190 38,829 22,603 18,854 23,915 19,434 16,041 12,278

South West 19,629 32,552 19,628 28,757 41,222 50,733 38,802 28,444

Total S & E 141,546 175,833 138,308 188,728 258,980 262,988 265,422 268,529 214,187 215,579 186,253

74.2 76.5 69.8 74.9 69.0 78.3 75.4 76.6 78.9 76.6 79.4

48,355

30,176

Mid West 34,879 26,093

33,165 43,089 40,470

S & E %Share

Source: Data supplied by Marcus Breathnach, Forfas.

Percent of all payments in the S & E region in total and 45.0 percent of all payments to firms in the state. In 1992 the share of total aid going to the S & E was 74.2 percent; in the year 2000 the percentage in the S & E was at its lowest at 69.0 while in 2002 the share had risen to its highest at 79.4 percent, while the volume of payments experienced a sharp decline. The detailed tables in the Annexes show that €1,245 million or 82.2 percent of all payments made by the IDA between 1992 and 2002 went to the S & E region, while €85 n 0 million or 73.1 percent of all payments by Enterprise Ireland were based in the S & E region. Shannon Development invested € 189 million over the 1992-2002 years, almost all of which was invested in the Mid West region. Finally, Udaras Na Gaeltachta paid out approximately €180 million to firms, of which13.2 percent was invested in firms in the Irish speaking areas of the Mid East, South East and the South West NUTS III region across the S & E.

TRANSPORT INFRAESTRUCTURE

One of the key characteristics of the Irish transport system is the very high dependence on road based systems for all forms of movement – people, raw materials, goods etc. There has been repeated criticism of transport investment plans over the past decades due the perception that inadequate shares of investment has been allocated to alternatives to road transport, or the development of pubic transport, to investment in railways and to the promotion of environmentally friendly, sustainable transport modes. Regional scientists also expressed repeated concern at the demand led nature of investment patterns, thus re-enforcing existing spatial divergences.

Thus in the case of the National Development Plan, 1989-1993 it was proposed to invest a total of IR£ 1,030 million in land transportation improvements. Of this sum only IR£ 45million or 4.36 per cent of the investment was allocated for rail or bus investment, while IR£ 500 million or 48.5 per cent was to be invested in the Greater Dublin Area – (Dublin and the Midlands East sub-regions). A similar share of total investment in access transport also went to the Dublin area. While such investment was sorely required, the issues of regional balance or of convergence were not of paramount importance. The 1989-1993 plan was


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based on the EC contributing 55.4 percent of total costs of all land based transport investment over the five years.

This investment has significantly improved the National Primary roads leading into Dublin, bringing many of them up to motorway standards as well as making substantial progress on the development of the M50 C-ring motorway around Dublin. It has also enabled significant advances in the improvement of public transport, especially in Dublin where Quality Bus Corridors, the development of the LUAS light rail network, the construction of the Port Tunnel and the improvement of the rolling stock have all laid the basis for a vastly improved public transport system.

TOTAL INVESTMENT

3.1.1 The National Development Plan and the CSF for Ireland, 1994-1999.

The National Development Plan for 1994-1999 proposed an investment of IR£ 2,605 million in transport developments over the period of the plan. Of this amount, a total of IR£1,727 or 66.3 percent of all transport investment would be devoted to roads, mostly the National network. It was proposed that main line rail and the Dublin Transportation Initiative would receive a total of IR£ 635 million or just over one-third of the amount to be invested in roads. Almost forty percent of all transport investment was earmarked for the Greater Dublin Area. The 1994-1999 CSF agreed a somewhat reduced transport investment package of 2,305 ECU million, with the CSF contribution agreed at 888 ECU million with somewhat greater priority being given to non road transport concerns.

EU funding for transportation was allocated from both the ERDF and the Cohesion Funds.

3.1.2 The National Development Plan, 2000-2006: In the current National Development plan for the period 2000-2006 transportation has

been treated as part of the Economic and Social Infrastructure Operational Programme, alongside Energy and Environmental Protection policies.

In respect of transport, the National Plan proposed an investment package of € 8,805 million, of which € 6,379 (72.4 percent of the total) would be invested in the Southern & Eastern NUTS II region, including a further € 2,012million on public transport for Dublin.

Table 14: Transport investment 2000 – 2006. € Millions

Priority S & E Region

National Roads 6,748 4,269

Public Transport 3,051 2,574

9,799 6,843 TOTAL

Source: ESIOP 2000-2006, page 2.

These proposed expenditure figures have been revised and elaborated upon in the Economic and Social Infrastructure Operational Programme, 200-2006. Table 14 shows that the projected expenditure on Transport had increased by 11.3 percent over the expenditure proposed in the NDP, but the allocation to Public Transport has been increased by 37.9 percent.

Of the investment package of € 9,799 million, some € 1,026 million would be contributed by the EU with some 72.0 percent coming from the ERDF and 28.0 percent from the Cohesion Fund.


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3.1.3 3.8.3 Transportation - Conclusions

The Irish economy and its spatial arrangement is strongly focussed on the city of Dublin and the Greater Dublin Area. A system of radial routes – road, rail, canal and even air – converge on Dublin and intensify the centrality of the capital city as the ‘control centre’ of the State. This is an historical pattern which has been repeatedly re-enforced by each new wave of transport innovation over centuries. In terms of movement or economic linkage, Dublin is central – contact between regional centres is relatively difficult and it often easier to go from one peripheral centre to another via Dublin than travelling the shorter and direct route between these centres. This issue goes to the heart of regional development for the country; do you enhance accessibility to Dublin from the regions on the basis of demand or do you invest heavily in developing the interconnectedness of regional centres and thereby build up a counter magnet to Dublin. While this debate is mostly focussed on transport infrastructures, it applies also to energy networks and the provision of social infrastructures.

The EC/EU has contributed significantly to the modernisation of the Irish transport network over the past fifteen years. EU involvement has had an important influence on the composition and implementation of these policies. Thus, the data shows a shift of emphasis in favour of public transport and the environmental procedures have sought to protect habitats, heritage and the wider public interest in the face of large scale construction.

In terms of the current study, the main concern is that investment policies are strongly demand led. There is abundant evidence that improvements in accessibility to a capital or large city tends to benefit those cities at the expense of the periphery. Alternative models favouring the interlinking of centres in the periphery have received a low priority to-date (see: Walsh, 2003).

ENERGY INVESTMENTS AND REGIONAL CONVERGENCE

Improvements in energy policies and investment in this sector have featured strongly in the National Development Plans of the past fifteen years. Thus, the National Development Plan, 1988-1993 detailed an investment programme of IR£ 478 million (€ 618 million) to strengthen energy supplies and to reduce costs.

The National Development Plan, 1994-1999 proposed an investment of IR£2,137 million (€ 2,713 million) in energy developments and conservation measures over the period of the plan, with the investments being “ widely dispersed, due primarily to the extent of resources require for the electricity supply network.”

In the National Development Plan, 2000-2006 energy is dealt with as part of the Economic and Social Infrastructure Operational Programme. A budget of €185 million was allocated for the development of the sector, which is almost equally divided between the two NUTS II regions. These funds were for the promotion of energy efficiency, research and development, alternative energies and a focus on improving energy efficiency in the pre-1980 housing stock.

This investment plan was revised downwards in the ESIOP with €223 million being allocated for “sustainable energy” with € 711 million of the total being contributed by the EU from the ERDF.


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A draft of the post evaluation of the Tourism Operational Programme 1994-1999 has been completed and is being considered by the EU. That evaluation shows that €749 million was spent under the programme, with co-financed expenditure being €469.8 million or 62.3 percent of the total. The EU participation through the ERDF amounted to €327.3 million, i.e. almost 70.0 percent of the total co-financed monies and 43.7 percent of the costs of the OP. Table 15 provides a break-down by region for the spend in the S & E region over the five years of the programme in relation to Measures 1 and 2 of the OP. The heading ‘several’ in the table refers to those investments, which transcended the boundaries on one or more regions.

As can be seen from this table some 59.7 percent of expenditure under the OP was invested in the S & E region, with almost thirty percent going to the Dublin and Mid East regions.

Table 15: Percentage Break Down of Tourism Spend, Measures 1 & 2 of 1994-99 OP

Sub-Programme andMeasure

Several Dublin Mid-East Mid-West

South-East

South-West

Natural and CulturalTourism

National RegionalCultural

52.52 1.87 6.13 3.29 9.68 73.49

Monuments andHistorical Properties

3.14 34.14 10.56 14.31 11.87 85.83

Natural Environment 55.62 0 5.94 8.79 10.33 25.06

Sub Total - Sub-Programme1

32.84 9.51 7.19 10.35

Product Development

3.78 5.72 20.37 2.35 35.22

7.99 8.39 27.36 15.81 73.28

Tourism Angling 10.16 12.73 0.94 4.68 1.39 9.04 28.78

Special Interest 5.28 10.9 11.85 7.81 15.24

Accommodation 0.79 9.96 10.9 12.23 6.98 20.2 60.27

Environment 17.57 0 8.65 27.96 5.1 9.07 50.78

5.79 7.29 13.74 11.73 54.14

TOTAL Sub-Programme 1&2

8.36 8.25 9.73 11.55

TOTAL

0

14.95

0

11.74 7.11 67

Large Projects 2.86 3.92

Information and Heritage 8.95 12.77

11.5 57.3

Sub Total- Sub-Programme 2

8.93 12.45

19.25 10.91 59.69

Source: Data supplied by Ger Banville, Dept of Tourism, Sport and Recreation.


Any attempt to quantify the total expenditure on environmental issues is fraught with difficulty for a variety of reasons. Firstly, the definition of what is environment is complex and diverse. All sectors have an interest in ‘environmental matters;’ many have obligations in respect of environmental management and some have financial responsibilities in this area. Environmental policies are the responsibility of many Ministries and agencies and of all


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levels of administration. So too with EU funding for environmental improvements which can be found in almost all programmes and which range from EU assistance of €77 million for the Drogheda sewerage scheme under the Cohesion fund to €78,000 for a footbridge in Co. Monaghan under the PEACE II programme. The National Development Plan,1994 – 1999, allocated €832 million to fund an Environmental Services OP, some 74.2 percent of the funding being EU aid. In the current National Development Plan, 2000 – 2006 a sum of €3,174 has been allocated for “Water and Waste Water” improvements. Out of this total sum €2,298 million is being provided to the regions, with 27.5 percent (€870 million) going for environmental protection within the BMW region.

Table 16 highlights those parts of the National Development Plan, 2000 – 2006, which have environmentally relevant elements. However, obtaining a comprehensive, reliable regional breakdown of such data or of the actual expenditures since 1999 is beyond the resources of this case study. While much work has gone into the development of environmental indicators, including urban quality of life measures, (see: Pender et. al., 2000; EPA, 2002), relatively little work has been devoted to the measurement of environmental investments by industry. The exception to this is work by Barry for the year 1998, (see: Barry and Convery, 2002).


Environmentally Relevant Element

Amount of Programme

€ Millions

Main Programme and Environmental Features

National Roads 7,587 Bringing key national routes up to Motorway standard.

Dublin Public Transport 2,555 Light rail, suburban rail, QBCs and rolling stock.

1,048

Water and Waste Water 3,168

Meet Drinking Water Directive requirements.

Invest in water conservation and catchment protection and water quality monitoring.

Meet urban Wastewater Directive in respect of 155 agglomerations, each with population equivalent of 2,00 persons.

Coastal Erosion 44 Provide environmentally protection and research

Solid Waste 825 Rationalise municipal waste landfills; create a

network of 20 state of the art facilities;

promote recovery and develop composting.

Energy 185 Promotion of alternative energy and efficiency.

Rural Environmental Protection Scheme

1,905 Conservation, protection of habitats and water courses.

Agri – Waste Management

187 Improved animal housing, and farm waste storage.

Forestry 736 20,000 ha. Per annum to be planted.

Invest in roads and woodland improvements.

Environmental Research 25 Measurement of impacts; develop systems;

Demonstrate best practice and instruments and Techniques to assist policy and decision making

Total: 18,256

Regional Public Transport

Improvements to national rail system.

Source: National Development Plan, derived by Professor Peter Cinch, UCD, 2001.


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While much good research is now being undertaken, including research by the Environmental Protection Agency, there is a need for a much stronger regional focus and for further investment to derive credible estimates of environmentally focussed abatement expenditure. (see: Clinch, 2001). That said, EU environmental funds have been put to good use in regenerating areas and in cleaning up both marine and land based causes of dereliction and pollution.

COMMUNITY TRANSFERS TO THE S & E REGION – CONCLUDING NOTE

This section has examined the detail of the principal sources of EU transfers, as well as State aids into the S & E region. In general, two broad conclusions can be derived from this analysis. For the most part, the region has secured a significant share of what may be described as productive investment over the past decade. This share is well ahead of the region’s share of land area or population.

National Development Plan investment for the years 2000 to 2006 for the S & E region was set at 67.2 percent of the total for the state. Expenditure under the Cohesion Fund has been shown to be heavily weighted in favour of projects in or near the S & E region, while the allocation of State assistance to companies by the major development agencies can be seen to have invested just three quarters of their allocations within the S & E region.

The S & E region has proved exceptionally attractive for foreign direct investment and the state agencies have successfully targeted the leading high-tech firms wishing to have a European location and the amenities of a capital city region.

An important factor in this decision making process has been the quality of the region’s labour force and the intensity of higher education and research facilities readily accessible to firms locating in the region, particularly in Dublin. EU transfers have evidently helped to make the S & E region one of the leading regions within the Union in the past decade.


The intuitive conclusion has to be that the EU transfers and the state aids to firms have made a significant contribution to the successful transformation of the S & E region since the early 1990s. At the same time, it is difficult to find hard data that can quantify this assumption and it is also hard to identify a reliable methodology with which to isolate the particular contribution of such transfers. At a national level it is estimated that the “cumulative effect of the CSF is to raise GNP by between 2.5 and 3.0 % by 1998-9,” (see: FitzGerald, 1998). But no such analysis has been attempted at regional level, partly because of a past reluctance to raise inter-regional during the years when Ireland was seen to have benefited from the country’s status as a single Objective 1 region. Regional issues were downplayed in favour of national approaches and all parts of the country were open for foreign investment and assistance. Thus, the Mid-Term evaluation of the 1994–1999 CSF was based on the themes of: administrative change, economic impact, human capital, infrastructural investment, and aids to the private sector, (Honohan, 1997). There was little consideration of either regional issues or the impact of the CSF/NDP investment on intra regional divergence or convergence. The result has been the very rapid growth and transformation of the S & E region, while the other NUTS II region performed modestly well but far behind the S & E.


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The issue of regionalism only came to the fore in the preparations for the CSF/NDP for 2000 –2006. Prior to 1999 the focus had been on the delivery of successful projects and programmes, regardless of location and existing deficiencies and needs took priority over strategic concerns. It must also be emphasised that the S & E NUTS region is far being a homogeneous region. It consists of a number of urban centred regions and a mosaic of localities, each with differing track records and varying potentials. For the most part the success of the success of the S & E region is dominated by the performance of Dublin, which has grown ever larger and which dominates the east of the country, the S & E region and the state as a whole. There are many parts of the S & E which have more with the BMW region than the do with the buoyant metropolitan area that is Dublin.

European policies and funding has done much to transform the S & E region and has helped to make it into an important European region. Funding has contributed to the undertaking of many important capital projects across the region – roads projects, wastewater treatment works, environmental improvements, urban renewal initiatives and community development achievements. Perhaps of even more importance has been the positive impact of the EU on processes and on ways of doing things, as well as through its legislation and Directives.

4 COORDINATION

The matter of co-ordination can be examined at various levels. At the preparatory stage, the National Development Plan prepared by the government in consultation with the EU forms the basis for discussion and ultimate agreement on the CSF. The central implementing body for the CSF/NDP is the Department of Finance, with other Ministries and bodies having devolved responsibility for specific Operational Programmes. The major innovation in the CSF/NDP was the establishment of Regional Assemblies for the delivery of the Regional Operational Programmes. Thereafter, co-ordination is the responsibility of the various Monitoring Committees. While these are widely representative, there is a question mark over their effectiveness or their ability to make significant changes. There is some concern that Community Initiatives lie outside the CSF and this can give rise to co-ordination problems. It is hoped that the Regional Assemblies will enhance the extent and quality of co-ordination for their regions, but it has also been suggested that the Regional Assemblies are devoting too much time to the monitoring of national programmes at the expense of the concerns of their own region. The negative aspect of this process has been the marginalisation of local government from real influence in these proceedings.

5 GOVERNANCE

Ireland has long been recognised as being one of the most highly centralised of the fifteen Member States of the EU. This high degree of centralisation can be seen in the extensive role played by central government in almost every aspect of Irish life, a role supported by a large array of uni-functional State Boards and Agencies. This concentration of centralised power is in marked contrast to the insignificance of Regional Authorities and the functionally limited role of Ireland’s local authorities, even that of Dublin City Council. The past five years have witnessed some changes in the patterns of administration and some moves towards a limited form of governance. In an effort to counter the dominance of public affairs by central government, the Dublin Lord Mayor and a number of others have launched the “ New Independent Democracy Commission for Ireland aimed at bringing more power to local authorities and citizens.


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As Dublin has become more expensive and congested, there has been some relocation of private firms to the suburbs or out into the Greater Dublin region. The government has also relocated some government work out of Dublin to dispersed locations across the country, euphemistically titled as “decentralisation.” For the most part, the work involved has been routine, and while the receiving locations have benefited from the increased expenditure, the relocations have had little strategic impact. The recently published National Spatial Strategy, 2002 – 2020 provides a blue print for future relocations in the context of developing regional centres. Such centres could develop the capacity for agglomeration and urban effects through the development of counter-magnets to Dublin. There is now a strong argument that the level of concentration on Dublin is now counter productive and that a more balanced settlement system would be more beneficial for the S & E region as a whole, better for the country and that it could make Dublin a better place in which to live, to work in and from which to do business, (see: Bannon, 2000).

From the viewpoint of this case study, it is possible to identify contrary tendencies at work at the present time. On the one hand, there is a move to downgrade some existing regional institutions and to establish new implementation or co-ordinating bodies at the political and administrative centre. At the same time, the government professes to be committed to strengthening local government, implementing the White Paper on Better Local Government: A Programme for Change (1996). But seen from the perspective of the S & E region and in the context of the dominance of Dublin, such initiatives are unlikely to have much impact on the issue of regional divergence in favour of Dublin. Nor can it be argued convincingly that the Irish political culture has any fundamental commitment to governance as opposed to traditional forms of government and administration, often justified by the argument that the state is comparable in population size to many European cities.

6 CONCLUSIONS

This case study has examined the Southern and Eastern NUTS II region within the Republic of Ireland. This case study has demonstrated that this region is a leading, dynamic, modern region which has locked into the post-industrial global economy. The region has out performed many of the regions of the Union, including many which never had Objective 1 status. But it is also clear that the region is far from homogeneous and is in fact a mosaic in terms of past performance and future potentials. In many respects, the performance of the S & E region is due to the leading role of Dublin as an international, capital city made particularly attractive to mobile foreign capital and drawing on its skilled labour, its business supports, its intellectual resources and the city’s social amenities. Many parts of the S & E region, notably the South East NUTS III region, have more in common with the component regions of the BMW than they have with the Dublin agglomeration.

EU funding has been very important and beneficial to the Irish economy, but this investment has been focussed more on raising Ireland’s GDP to the EU level than with tackling internal issues of regional divergence. Only in 1999, in preparation for the 2000 – 2006 CSF/NDP was an effort made to divide the state into two NUTS II regions, each with its own Regional Assembly. The findings of this case study raise questions about the wisdom of the approach to devising the boundaries for NUTS II regions.

The case study also outlines the rather faltering steps being taken to move from a centralised administration to a governance for the region and for the state.


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In a changing Europe, where major changes are taking place in relation to agriculture and where there will be increased competition for EU funds, it is desirable that a much greater percentage of available funds be channelled into strategic investments with long term potential for the structural transformation of lagging regions.

Ireland now has committed to implement its National Spatial Strategy,2002-2020, a document which draws its inspiration from the ESDP reports and agreed agenda. It is reasonable to expect that future EU investment should be used to support such a strategy and to assist in leveraging public exchequer and private funding to do likewise. Apart from the NSS approach, there are many interesting and potentially viable models for a different spatial model of Ireland and its regions in the future, including Walsh’s proposal for a counter magnet to Dublin in the form of an “Atlantic Technopolis.” (see: Walsh, 2003). Some such vigorous strategy could give hope that the structural problems of the BMW region might be tackled and that increasingly scarce resources would not be dispersed or scattered with minimal strategic effect.

But there is need for clarity of thought as to the priority given to the concept of cohesion and its importance – are citizens more concerned about improvements in their own living standards, even if people in other regions are doing better or is equality the issue?

There is necessity, both for Dublin and for the rest of the State, to carefully define a meaningful NUTS II region to embrace the Greater Dublin Area – Dublin and its hinterland. The present NUTS II region is overshadowed and sometimes overwhelmed by the Dublin metropolis, when in reality many parts of that region have more in common with the conditions in the BMW region than those influences by the Dublin area and its progress and prosperity.

Finally, the Commission could usefully return to the neglected fields of Urban and regional economics in an effort to identify the diseconomies arising from imbalanced growth and, conversely, the benefits likely to arise from the release and utilisation of regional energies, resources and innovative stimuli.


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BIBLIOGRAPHY

• Bannon, M J., et. al., 1977, Service–Type employment and Regional Development, National Economic and Social Council Report No 28, Dublin.

• Bannon, M. J., 1990, “The contribution of the Management System to Local and National Development,” in City and County Management 1929-1990 – A Retrospective, I.P.A., Dublin.

• Bannon, M. J. et. al., 2000, Development Restraint and Urban Growth Management, A Research Report prepared for the National Spatial Strategy Team, Department of the Environment and Local Government, Dublin.

Barry, C. and F. J. Convery, 2002, “Bridging the Gap: National Accounting as a Tool for Policy Integration,” in F. Convery and J. Feehan, eds., Achievement and Change: Rio + 10 and Ireland, Environmental Institute, UCD, Dublin.

•

• Brady Shipman Martin et. al., 1999, Strategic Planning Guidelines for the Greater Dublin Area, Dublin, + annual reviews.

• Clinch, P., 2001a, Reconciling Rapid Economic Growth and Environmental Sustainability in Ireland, Environmental Studies Research series, W.P. 01/01,UCD.

• Department of Environment and Local Government, 2002, The National Spatial Strategy 2002-2020, Stationery Office, Dublin.

• Department of Environment and Local Government, Better Local Government: A Programme for Change, Stationery Office, Dublin.

• Environmental Protection Agency, 2002, Environment in Focus: Key Environmental Indicators for Ireland, EPA Publications, Wexford.

• Fitz Gerald, J., 1998, “An Irish Perspective on the Structural Funds,” European Planning Studies, Vol. 6, pp. 677 – 694.

• Fitz Gerald, J. et al., editors, 1999, National Investment Priorities for the Period 2000 2000 – 2006, ESRI, Dublin.

• Fitzpatrick Associates et. al.,1999, Border, Midland and Western Region Development Strategy 2000 – 2006, Prepared for the Regional Authorities. Forrestal, C., 2002, Balanced Regional Development: An Inter-Regional Perspective, M.Econ. Thesis, National University of Ireland, Galway.

• Government of Ireland,1989, National Development Plan 1989 – 1993, Stationery Office, Dublin.

• Government of Ireland, 1993, , Stationery Office, Dublin.

National Development Plan 1994 – 1999



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• Honohan, P., ed., 1977, EU Structural Funds in Ireland: A Mid-Term Evaluation of the CSF 1994 – 1999, ESRI, Dublin.

• OECD, 1977, Regional Policies: The Current Outlook, Paris.

• OECD, 1999, Economic Surveys: Ireland,: Origins of the Boom, Sustaining High Growth, Paris.

• O’Leary, E., 2002, “Sources of Regional Divergence in the Celtic Tiger: Policy Responses,” Paper delivered to the SSIS of Ireland, ESRI, Dublin.

• Payne, D., 1999, Policy Making in the European Union: An Analysis of the Impact of the Reform of the Structural Funds in Ireland, Interuniversity Centre for Social Science Theory and Methodology, Groningen, Netherlands.

• Pender, A., et. al., editors, 2000, Environmental Indicators for the Urban Environment, The Environmental Institute, UCD, Dublin.

• Walsh, E.,2003, “An Atlantic Technopolis Needed to Counter the Drift Towards Dublin,” Irish Times, June 6th 2003.

• Southern and Eastern Regional Assembly, 2000-2003, various Monitoring and Progress Reports. Southern and Eastern Regional Assembly, 2003, “ The Southern and Eastern Region - Comparisons with Other NUTS II Regions,” an internal discussion paper , Waterford.

• Walsh, E.,2003, “An Atlantic Technopolis Needed to Counter the Drift Towards Dublin,” Irish Times, June 6th 2003.

• Williams, B., ed., 2001, Shaping Dublin’s Future: Economic Competitiveness and Urban Governance, DIT, Dublin.

• Williams, B. and P. Shiels, 2000, “Acceleration into Sprawl: causes and Potential Policy Responses,” Quarterly Economic Commentary, June 2000, ESRI, Dublin.


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APPENDIX


- Suckler Cow Premium – S & E

- Ewe Premium – S & E

- Arable Aid – S & E

- Special Beef Premium – S & E

- Slaughter Premium – S & E

- Compensatory – S & E

- Early Retirement Scheme – S & E

- R.E.P.S. – S & E

- Extensification – S & E

- Direct Payments to Companies 1992- 2002 – BMW and S & E Regions

- Operational Programme for Tourism, 1994-1999

- National Development Plan for Ireland 2000-2006

- S & E Region Total – OP


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ITALY:

REGION: TUSCANY / TOSCANA

ELABORATION: Authors: Annamaria D’Angelo, Francesco Grillo From: VISION & VALUE. ITALY.


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REGIONAL COHESION: THE CASE STUDY OF TOSCANA. ITALY

EXECUTIVE SUMMARY

During the ‘80s tuscany shows a lower economic growth in respect to other more dynamic regions of the Central/North of Italy. The period in which this differentiation is more visible is around the second half of the ‘80s. The major cause is the dependency of the regional model of growth on the exportation market from which, until the beginning of the SME (European Monetary System), derive the competitiveness of the made in Italy on external markets.

In the second half of the ‘80s this frame has changed: market convertion has been difficult with a consequence of a delay in the european market integration. In these years a great diversity is noticeable from the other italian regions especially on the side of manufactural production. This diversity wuold not be completely recovered, tuscan industry has lost its importance. Nevertheless it is not a phasing out of the Region from the group of more dynamic and developed region of the State but more a specific moment which determined considering the whole regional development a cut down in the industry capacity of expansion.

This means the beginning of a deindustrialising process linked to a low capacity of making investments of the entire productive regional system. So that when the speed of productive capacity reduces the system on the whole go through a restriction, nevetheless the productive system remain capable to start through growth again in order to reach international circuits even in markets differents from those traditional.

Concidering the territorial situation it is necessary to concentrate the attention on the fact that Tuscany, in the Community nomenclature, is defined as Region Objective 2, therefore, the community resources do not have the capacity of intervene at the same time in all the regional territory. In particular, the area Ob.2 in the Tuscany region interests a surface of about 10.000 Km2 which represents 43% of total surface and pertain to a population of 1.845.924 citizens. Furthermore, among the Objective 2 areas, there is a particular relevance that some of them will benefit from that condition only for a short period because they are in a phase of transitory support (phasing out). It involves those regions where the economic and social conversion process is highly developed (for instance the Prato’s district or the area of Pisa). The criteria of transitory support tends to avoid the sudden interruption of aids, to consolidate the previous results achieved. Nevertheless, the contributions are less relevant than those expected for the Objective 2 areas, decreasing by year, they will expire in 2005.

It is interesting to notice how a certain incapacity is found in the prospect of financing some sector with the Objective 2 or the opportunity to intervene in a factual way, in monetary terms, in some of them (i.e. infrastructures, transport or


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R&D). At this it must be underlined how, at a regional level, there are complaints about the European Community intents because they do not take under the right consideration the real differences existing among the diverse Objective areas, finding, therefore, the same priorities. This setting, in fact, yields an excessive amount of requests, for instance in the infrastructure, while the Community targets reduce the possibility to sustain a number of various actions. With regard to the infrastructure, consequently, categories of investments like roads, motorways, railways are not admitted while other classes like ports, airports and interports are admitted only for a limited amount of resources. These last activities, in fact, can be done only up to a maximum of about 5 million Euros.

As regard to the Ob.2 areas, the most enhanced sectors are the industry commerce and handicraft and tourism. Despite the community regulation about concentration, upon the territory areas, extra areas Ob.2, the region is trying to actualize at least a balanced situation looking for homogenising the typology and the expenses (the same intensity of aid) of actions even if the main problem is right the financial resources are provided. However it is visible that concerning this area development programmes ad hoc do not exist.

On the contrary the areas which are in phasing out have already saturated the support requests expressing an impressive expenditure capacity. Despite the transitory support it is generally speaking about territories under pressure, constituted by the presence of SMEs which are still in a difficult condition and are provided with a scarce amount of money on a direct territorial point of view.

From a quantitative point of view, the most important Community policies (CP) in Tuscany are Structural Funds, followed not too far by State Aids. However, while a breakdown by sector and priority shows that the contribution of Structural Funds is often overwhelmingly predominant in areas which are decisive for regional growth, the same cannot be said of State Aids. Despite great difficulties of calculation and comparisons with figures for other CP, the study found that State Aids represent a considerable source of income for the Region, but which is mostly of a short term and short-sighted nature. Instead, the importance of Structural funds is particularly remarkable in the case of SMEs support, environment with less regard for infrastructure, and with lower amounts, for R&D. Nevertheless an interesting point is the consideration in terms of co-ordination between some subjects such as environment, transport and energy.

In the transport sector, there has been a real effort to adopt a comprehensive strategy of intervention. Connections have developed, this applies either to the transport of persons, or to that of goods. Internal connections also improved significantly. If more progress is needed, the overall contribution of CP to cohesion in the field of transport can be said to be positive.

Structural funds also proved decisive for the establishment of institutions which are necessary for the development of a ‘regional system of innovation’ because from their management started a learning process inside the Region. In particular the creation of some services inside the administration has to be look in such perspective: ARTEA and ARSIA agencies in the agricultural sector, ARPAT


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agency in environmental matters or the Co-ordination Service settled in the Economic Development Department.

In agriculture, CP made an important contribution to modernization, and to cohesion (both ‘external’ and intra-regional cohesion). In particular, different programmes promoting rural development proved to be particularly successful at local level (e.g. Leader in promoting partnerships). Overall, however, the initiatives taken do not seem sufficient to reinforce the already existing autonomous development process, and CAP measures sometimes appear to be in coflict with economic development growth of the sector.

In the field of environment, the Region has strongly implemented its intervention with particular regard to the necessity of developing a local integrated strategy of intervention. Considering its potential pivotal role in the definition of a regional strategy of growth, EP until now proved very successful in imposing a modern approach to environmental policy. Even though the relatively small sums allocated to environmental objectives, initiatives in the field succeeded to raise awareness, and to transversally affect the other policies with a better understanding about the important questions of coordination between environment policy and other policies.

Overall, the impact of CP on growth and convergence in Tuscany proved to be quite successful especially by the qualitative perspective than the quantitative one. The best one can say is that things would have been worse without CP. There is little doubt for example that CP and Structural Funds in particular made a precious contribution to tackle specific issues like the reinforcement of structures and infrastructures to growth and development. Nevertheless, in certain fields like R&D, the contribution of Structural Funds seems to be insufficient so that the progress achieved have been made by the autonomous capacity of certain subjects in encouraging their participation to other kind of measures different than Structural Funds.

On the face of it, from a qualitative perspective, CP have indeed made some decisive contributions, introducing some fundamental ‘cultural changes’ in policy-making such as the practice of evaluation and of control of spending. Also more active and formalised participation of social partners in the design and monitoring of policies has become a natural practice. Another positive effect of CP concerns the development of a culture of cooperation “on the ground” between local partners, again a significant achievement in the Tuscan cultural context which can be better comprehend because of the concrete co-financing activate by Local Authorities and by private agents which remain generally very high. There has also been progress towards more communication and transparency about CP and related activities, yet this is likely to occur mainly a regional level, less at local level.

The research engaged for this case study identified two specific difficulties. The first has to do with the programming strategy designed at community level which sometimes appears to be not really coherent and regardless of the specific necessities of regional development strategy. The second concerns the actual implementation of policies and programmes which even when they are correctly and efficiently designed at regional and local level do not yield the expected


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outcome because of inadequate financial resources and because of the consequences deriving by being an objective 2 Region. This means that sometimes the Region has to face geographical problem of intervention because for example only a part of the intervention meets the requirements to be financed while the other is outside the geographical border of intervention (i.e. an industry which is settled only for a part in Objective 2 and for the other, while bordering, in another part of the territory so that there is the necessity to find how to intervene respective of that boundary).

In general, despite evidence of a learning process developing from one programming period to another, the administration suffers of the excessive rigidity and centralisation. The funds management is governed by a unique centre which signifies a drawback considering the local level programming implementation.

Furthermore the biased focus on both Structural funds and on the quantitative aspects of policies, is a factor that reduces the potential impact of CP on convergence. This is a sort of negative aspect that should be addressed by both regional authorities and the Community.

Overall, this study found that there have been some extraordinary progresses, especially in terms of growing capacities linked to management and co-ordination of policies and their instruments. That means that the Region has made of the community model experience its own model of action in all its secotrs of activity.


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INDEX 1 REGIONAL CONTEXT AND PROGRESS TOWARD CONVERGENCE

2 MAIN COMMUNITY POLICIES OVERVIEW CAP ENVIRONMENT R & D POLICY TRANSPORT STATE AIDS

3 GENERAL IMPACT

4 GOVERNANCE

5 COORDINATION

6 CONCLUDING REMARKS

7 GUIDELINES FOR COMMUNITY ACTIONS

REFERENCES

APPENDIX

Interviews method


Index of tables

TAB 2.1 Community Policies in TUSCANY by sectors

TAB 2.2 Framework Programmes Tuscany participation

TAB. 2.3 Tuscany State Aid

TAB. 2.4 Amount of Notified SA*

TAB 2.5 Geographical delimitation of the national regional state aid map as approved by the European Commission till end 1999

TAB. 3.1 CPs and Regional cohesion

TAB. 5.1 CPs interaction


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1 REGIONAL CONTEXT AND PROGRESS TOWARD CONVERGENCE

Tuscany has a population of 3.547.604 inhabitants, with a territory which comprehends. nine provinces: Florence, Arezzo, Grosseto, Livorno, Lucca, Massa-Carrara, Pisa, Pistoia, Prato, and Siena with 287 Municipalities.

The resident population did not explain strong variations during the years, the number fluctuate between 3.530.000 in 1991, 3.528.563 in 1999 until the last data shown in 2001 with 3.547.604 (Tab. 1). It seems to explain, noticeably, a clear stability in the population growth. This condition, however is due to different indicators which must be considered deeply to obtain a complete and exhaustive outcome.

Firstly, the migration and natural balance has to be examined. The two indicators refer to a crucial condition of general population steadiness which is visible in the natural balance with the data between the years 1995-1999 (Tab. 2) They maintain a constant decrease of about 15.000 units among 1995 and 1999. On the other hand, against this damaging effect, the migration balance trace an opposite condition with results from 12.849 in 1995 up to 22.438 in 1999. This status generally describes, therefore, a deep balance in the country population with a strong and steady flow.

A further condition is noticeable if we focus on indicators like age or recycling, which reflect considerable results. The indicators of age show that the population is generally getting older; in fact, is possible to stress that the rate for Tuscany age is constantly increasing with a negative 196 in 1995 up to 203 in 1999 with a slight enhancement in the 2000 with 189. This strong result is balanced by the high and noticeable data about population recycling indicators which explain an increase from 123,53 in 1995 to 158,72 in 2000. Therefore, this main comparison might reveal two different outcome linked with the population stability. On the whole, Tuscany population is getting older but the migration is supporting a broad recycle. Secondly the presence of migration seems to compensate the negative data explained by the oldness data with its positive results (Tab. 3).

If we consider that another element which might be involved is due to the dependence indicator for the years 1995- 2000 with a positive rate normally under 50, the complexity and the solidity expressed is confirmed.

Based on the principal indicators of job market Tuscany has shown a condition which, although better than the Italian national medium, stresses substantial difficulties, in particular if we compare the general status with the same visible condition in the Regions of north centre altogether; in comparison with these Tuscany registers a higher unemployment rate by about 1% and a lower activity rate by about 1.5%.

The job market is, in any case, well structured in Tuscany with a wide range of positive indications which must be considered. Like the other Italian regions, Tuscany bases its economy on three main vital sectors: Agriculture, Manufacturing and Services. Agriculture is the less expanded either for employees or dependent workers. The employees in the period 2000-2001 remain constantly between 22 e 20 thousand, while the dependent workers are about 20.000. In comparison, the manufacturing sector employed between 360.000 and 355.000 employees in the period 2000-2001. It explains a clear development of this second segment considering the numeric proportion and the modern decrease of agricultural production. Anyway if we consider the sector dedicated to the Services the results are the highest with 606.000 employed in the 2000 and 620.000 employed in the 2001. This last number conveys a huge development of the services sector, which is one of the common conditions of Italian regions even if it is clearer in the south of Italy (see Tab. 4 and Tab. 4.a).


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If we notice also the data of employment rate per activity area, it is possible to perceive that in the period among 1998 and 2000 agriculture and industrial rate reveal a slight decrease of about 1%, instead of Services which unveil an increase of 1% in the same years (Tab. 5). We must add, finally, that the relation between active population and people registered in the unemployment office, reveal an expansion of 2 percentage points percent between the three years considered, confirming the outcome of general solidity expressed in the previous data.

The statements of general stability are confirmed by the statistics about companies and, in particular, the indicators of registration and cessation in the years 1998-2000. The first data shows a rate of 7,86 in the 1998, reaching the maximum of 8,36 in 2000. The second data is stable as well or, better, explaining a slight decrease close to 0,5% with a rate of 6% (Tab. 6).

Talking in general about Tuscany working condition, it must be highlighted that the unemployment rate has maintained low and consequently positive rates in comparison with rest of Italy. In 2001, for instance, the unemployment rate in Tuscany was 5.10% (Tab.7) in comparison with Italian average of 9.50%. This difference is also more positive if we consider that Tuscany cuts down unemployment by 1998 of about 3 points passing from 8.17% in 1998, 7,20% 1999 up to 6.11% in 2000. It must be considered extremely constructive for the local economy, in particular if we stress that the female unemployment rate is decreased by about three points passing from 12,77% in 1998 to 9,04% in 2000 (see Tab. 5). It possibly reflexes a strong and reactive job market capable of stimulating the male work market as well female sector.

The grade of female participation to the job market is, therefore, rather higher than the Italian market and it respects the same status underlined for the Regions of central Italy. On the other hand it is possible to point out that a clear difference exists with the areas of north east in relation with female unemployment rate which is considerably inferior (about 4%) than Tuscany. The female employment rates are lower in the adult class and with lower education.

Even the female activity rate has remained stable from 1998 to 2000 with a level which pass from 38 in 1998 to 39,25 in 2000.

In the last few years, the economic system in Tuscany has known a great development phase, better than the same situation registered for Italy. This is testified by the GDP which is increased of about 3% in the 1995 in comparison with the previous year and about 1,2% in 1996, while in the rest of Italy in the same years the percentage variation has been 2,9% and 0,7% respectively. On the whole Tuscany today produces 6,7% of Italian GDP (Tab. 8).

One of the most important economic aspects is represented by exports, which had a vast increase in the 1995, which is continued, in a lower rate, in the next years, despite the international contest being considerably negative.

2 MAIN COMMUNITY POLICIES

OVERVIEW

(see table next page)


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TAB 2.1 COMMUNITY POLICIES IN TUSCANY BY SECTORS

Cap And

Rural

Developmen

t

Environment

Transport

Communicat

ion (Energy)

Structural Policy Community

Initiatives (1)

R&D/Innovation Framework

Programmes State Aids (4)

Approximately 78.62 mecu

broken down in:

More than 100

m € divided

approximately

in:

Environment 2.95 mecu Agriculture:

10.265 m €

Smes and craft 20.92 mecu Fisheries: 1.225

m €

Infrastructure and communication

21.97 mecu

Companies,

smes: 5.900 m €

Human capital, training 23.49

mecu

1989 -

1993

Tourism 9.29 mecu

Approximately 7.407

m € broken down in:

Approximatel

y 762.000,00

€

Approximately505 m € broken

down in:

Approximately 34.449 mecu broken down

in:

Life nature 2.814 m

€:

Agriculture, rural development

119.906 m €

Information society (1993) 98.522,00 ecu

Energy (1994) 40.540,00 ecu

19

94

-

19

99

Life environment

4.607 m €

Environment 13.671 m €


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Cap And

Rural

Developmen

t

Environment

Transport

Communicat

ion (Energy)

Structural Policy Community

Initiatives (1)

R&D/Innovation Framework

Programmes State Aids (4)

Smes and craft 26.011 m € 4th fwp (1995-2000) 34.310 mecu


192.025 m €


m €

Int'l cooperation 16.787 m €

Approximatel

y 1,062 Mld €

Approximately 3.265

m € broken down in:

Approximately 2.000 m € broken

down in:

Approximately 28.000 m € broken down in

Life environment

2.109 m €

Agriculture, rural development

81.100 m €

5th fwp 22.359 m €

Ag. 21 l. 1.156 m € Environment 183.810 m € Regional programme on innovative actions

6 m € broken down in:

Smes and craft 492.318 m € Regional economy based on knowledge

5,640 m €


470.710 m €


m €

Technical assistance 180.000 €

20

00

- 2

00

3

Int'l cooperation 112.190 m € University scientific research 58 m €

Accompanying measures 180.000 €

Millions euro (M €), current exchange rate. (1) Actual expenditures; (2) provisional expenditures (3) Docup only, provisional expenditures; (4) until 2006.


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A first reading of Table 2.1 makes clear that the most vcaluable Community Policy in Tuscany are Structural Funds, and that State Aids follow. Since the reform of the Structural Funds in 1989, Tuscany, classified as an Objective 2, 3, 4 and 5b region, has received a substantial stream of income from Structural Funds. In the 89-93 programming period, three programmes the DocUP (Documento Unico di Programmazione) totalled approximately 79 M € of expected expenditures. Since the Community nomenclature has changed with the last reform the objective has been reduced from 6 to 3, Tuscany has become a Ob. 2 Region which signified a concertation at a National and Community level in order to verify which ares of the territory could be eligible to receive aid by strucutral and regional policy. In 1994-99, the budget of the DocUP POP amounted to around 2.279 M €68 to which many Community Initiatives (in particular Interreg II, Leader II, PMI, Retex and Resider with a total of approximately 118 M €) were added. Finally, under the current programming period (2000-2006), the sums distributed through the DocUP Ob. 2 (Documento Unico di Programmazione), the PO Ob. 3, IFOP Fund and three Community Initiatives (Interreg III A, Urban II and Leader +) represent a very substantial increase compared to the past as it has commonly happend since this last structural reform took place. The DocUP Ob. 2 in the last period is mainly responsible for this increase. Furthermore it is worth saying that starting from the present programming period Strucutral intervention has been divided into two major programmes in order to planning strucutral intervention on one side (DocUP Ob. 2 completely financed by FEDER) and training measures linked with occupability and job market on the other by using another programme PO Ob. 3 (completely financed by ESF). Nevertheless it is possible to asses that the two programmes together are surely responsible responsible for this increase with a budget, summed up together, of around 1 700 M €, whether Community Initiatives - Interreg III A, Urban II and Leader + - represent around 112, 27 and 60 M € respectively).

State Aids represent also a very significant source of income for the Region69 especially thinking on the status of the territory as an Objective 2 Region. However, while a breakdown by sector and priority shows that the contribution of Structural Funds is often overwhelmingly predominant in areas which are decisive for regional growth, the same cannot be said of State Aids. The importance of Structural funds is particularly noticeable in the case of infrastructure (transport, water, energy, etc.), and with lower amounts concentrated in the 94-99 period, for R&D.

Agriculture and rural development are significant priorities of Structural funds, and a privileged target of State Aids. Surprisingly, the latter is dominated by a very large share dedicated to intervention of farmers supporting and in a lower scale to palliate “threats” and other natural catastrophies. In general they are characterised by a lack of a long term view even if it is noticeable the connection of these intervention on the way of a development strategy.70

State Aids play also a very important role in SMEs suppoting policy. This is an area where other Community policies, through the exclusive channel of Structural funds, provide complementary quantitative support. However, while the former are often of an “emergency” nature, the latter focuses more on specific measures to an innovation approach to enterprise development (enterprises development and improvement (manufacturing, tourism, commerce), SMEs innovation transfer, sustaining measures on Information Society development, establishment of networks, connection with the academic research sphere..).

Apart from CAP and “Piano di Sviluppo Rurale” (PSR), the other Community policies are remarkable for their quantitative discretion in areas that are decisive for regional growth and development. In the R&D and environment sectors, Framework programmes, and Life

68 Of which 95% were actually spent. 69 Much care should be taken when interpreting the figures given: they should be taken as a mere indication of the actual value of State aids in Tuscany. See below, relevant section. 70 See below, relevant section.


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programmes have respectively some importance. Environment was an area completely neglected in the 89-93 period but which received an interesting amount of Structural and non funds resources in the preceding programming period (94-99) consistently increased for the present period.

It is particularly interesting to note that in both cases of R&D and environment national and regional funding is playing an increasing role in the last years (see Table 10 in Annex). Environment now ranks high again on the Structural funds agenda, and it is significantly affected by AG21L, a regional source of funding. As to R&D, the entry into force of a new Law promoting industrial research provide an additional source of incentives which is far from negligible.71

CAP

The agricultural sector, in particular clearly testifies the importance established by this segment in the regional economy. In the census of 2000 the number of farm is 139.872, occupying a total surface of 1.627.461hectares. The SAU72 in hectares is 857.699 (Tab. 10). Furthermore, the total surface in property is 1.308.741,03. One of the most valuable data, important to emphasize the effect that this activity produces, must be noticed in the general manpower considered by gender. It is important to say that in 2000 the employees in agriculture are constituted by 193.467 male and 165.697 female. Therefore is visible a certain balance in the two groups which might express a better development of female economic market in the recent years (Tab. 11).

During the last decades the agricultural system of the region changed a lot. Numerous countryside zones were urbanized due to the effect of industrialization. Some traditional cultivated plants were substituted by the new ones: olive-yards to win yards. The most important agricultural products in Tuscany are flowers, wine grape and oil. Less important are cultivation of maize, vegetables and fruits. On the way of development is the production of tobacco and sugar beet. The breeding (sheep) and fishing is on the medium level in comparison with an average Italian rate in these sectors.

Only a few decades ago, agriculture was the principal source of income in the region. (during the ‘50s, the occupation on agriculture was more than 50% of the entire population). Nowadays the economy of the region is above all based on industry and tourism, but the actual breakdown is agriculture 3%, industry 37%, services 60%. However, it needs to be said that even if industrial activity has taken the upper hand, and in particular small and medium-sized enterprises, agriculture has conserved an important place in the economy of Tuscany. Agricultural and forested land covers about 90% of the territory, with about 50% being given over to agriculture. Tuscany is above all noted (also abroad) as a land of olives and vines, which occupy a major part of its hills, nearly always as part of heterogeneous cultivation, with cereals and fodder etc. up to 500 or 600 metres, except where the soil is unsuitable, such as is the case, for example, with Siennese clays. The vines produce extremely large quantities of grapes each year, and from these are made such famous wines as Chianti, Aleatico (from Elba), those from Montepulciano and of Rufina etc. The olives are used to produce a highly-esteemed olive oil; this being largely the work of family farms. The cultivation of cereals is also important. Of great economic importance, especially in parts of Valdarno and around Lucca, is the growing of vegetables and beans. The production of chestnuts and mushrooms is still relevant, given the diffusion of woody coppices, for example in Garfagnana and Lunigiana. The raising of cattle and pigs is still of importance, although sheep farming is in decline.

71 Unfortunately, no figure is available. Interestingly, however, it is worth noting that this Law is notified as State Aids. See below, relevant section. 72 Usable Agricultural surface


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The CAP is substantially defined as an instrument to sustain the agricultural sector. The principle of policy elaboration or the unanimity at a community level, impede a determinate type of intervention in the territory. The region is, therefore, free only to determine in which way to adopt and actuate the measures established at a community level.

Surely the Region is characterised by the presence of a model of rural regional development which is mainly dedicated to increase and strengthen the agricultural tourism, the DOP products and the typical local products. It must be stressed that the OCSE has found as an outstanding model of rural development the Siena’s method of local growth. Nevertheless, this local condition underlines an elevate revenue mixed with an improved life quality, therefore, in general opposing the tendency with the most common situations of rural progress; the problem, in fact, must be identified in the fact that at local level it is possible to notice a lack of redistribution elements.

Apart from this last specific reality, the Tuscany model has made the choice of privileging some peculiarities and specificities identifying market segment in particular in the bovine sector giving priority to the production of local races with the consequence of having cut down in a considerable way the problems of the recent years deriving from the Bovine Spongiform Encephalopaty (BSE). While as regard to the typical productions, over the noted wines known all over the world, the region has paid attention to the improvement of the production of spelt, with the result of a concrete difficult to overcome the huge demand request of the market. From the existing model it is possible to program the sector from the fact that the model is helping the writing of Rural Development Plan (PSR) coherent with the real situation of the territory.

During the last few years, the Region’s awareness of the necessity to develop quality production has supported the foundation of consortiums in order to protect these kind of productions. These are mainly niche products such as viticultural or olive productions which give raise to qualitative superior products whose commercialisation is supported by a strong marketing intervention. The quantitative production of these goods is certainly lower in respect with the market demand request, as has been said for spelt production, so that this enables sales price raising.

The marketing action is not realised by single producers but by these consortiums which have the task to commercialise the products and to export them on other markets. This is not a case that Tuscan olive oil, with its typical light green colour, completely different from the other Mediterranean productions is sold abroad in absolutely different markets from south east Asia to America and above all in Japan where it is considered a luxury good. The same observation can be made with regard to wine, see Chianti, and meat production, Fiorentina.

Besides the marketing actions supported by the consortiums, they have been able to exploit in a really sharp way opportunity gave by the using of brands such as DOC and DOP. The use of those brands, a sort of certification about the quality of the production, has been converted in strength either for consumers guarantee or for a better price policy. Furthermore DOC and DOP brands yield Tuscan products unique and identifiable on the whole world market.

The integration in the territory is perceptible among the Rural Development Plan (PSR) and the instruments of CAP while with the other sectors which can in some way interact with the rural agricultural sector it dealt with mere conjectures. Furthermore, given to its setting, the management of CAP results out of the capacity of the services which handle the subject.


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Integration attempt is quite linked to the development of using technologies with a low environmental impact in the agricultural productive system. This is an interesting point because on one side it goes in the direction of a better understanding of the necessity of apply a sustainable environmental policy while on the other it underlines the requirement of an exploitation respectful of quality of life improvement. That is to say that this integration is trying to create a concrete dialogue between the two policies (CAP and EP) in order to achieve a common objective which belong to all the civil society even if it is not a sectorial one.

On the other hand in the agricultural sector a noticeable effort of coordination is visible. In particular different organisation get involved in the realisation and implementation of the actions, the Region, the Provinces and the Mountain Communities. This shows that the Region intends to prove and trigger the policy intervening at the closest level to the territory. Substantially it means that to the Region is given in some way the government of policies and to the territory it does mean their management which identify a highly innovative system in the local administrative culture. However the difficulty about the times related to the actuation of the actions still exists.

At the administration level two organisms are involved in the management of the policy activities developed at regional level. The Tuscany Regional Agency for the agricultural provision (ARTEA)73 replies to a foreseen provision of Reg. (CE) 1663/95 and Tuscany has been the first region to comply with community obligation. On the other side The Regional Agency for development and innovation in agricultural and forestry sector (ARSIA)74 represent the technical and operational agency of the Region. It is involved in developing action of promotion, support, dissemination, know how transfer in process and production of the sector. Moreover it develops technical assistance on agricultural products production, processing and commercialisation; it is even involved in trying to introduce technical-productive innovations respectful of farmers wealth, environmental protection and energy saving.

At a financial level of intervention, an important source of development for the Region concerned is represented by the experience of the community action LEADER Programme. This programme has mainly contributed on one side to reduce the phenomenon of depopulation of the countryside and on the other to revitalise the whole rural system.

The program, in the phase 1994-1999 was a program document with a wide range, which detailed programming is demanded to the Local Action Group receiving, in this sense, completely the LEADER philosophy of a bottom-up approach. To the Provinces in the areas of their competence, is given either the coordination of the constituting phase of local partnership or the task of proceeding to the evaluation of PAL (Local Action Plan) proposals. The Region maintains the task of the final approval, whether to the GAL is delegated the function of programming and establishing the objectives, actions and connected indicators system. From that it emerges that the Leader Regional Plan (PLR) of Tuscany, as well as the main part of LEADER regional programmes, being a document of intents and strategies, with objectives of a general nature and not quantified, adjourn their sub articulation and actuation to the local level. In this sense it can be said that this experience has achieved the strengthening of partnership at local level.

Furthermore it has attempted, on a programming level to create a program which contain interventions integrated with other policies, in particular development and maintenance of the employment local system, and improvement of local resources, evolution of rural areas in terms of attraction of investments, tourism, development of agricultural environmental technologies and in particular about the technologies of biologic and bio

73 ARTEA was established with Regional Law LR n. 60 of 19th of November 1999. 74 ARSIA was established with Regional Law LR n. 37 of 10th of June 1993.


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dynamic agriculture, find new ways of commercialisation and new market sectors for typical and biological products and help the development of transformation activities of these products, qualify and valorise the typical handicraft productions and of the SMEs in the traditional sectors, develop an integrated system of information with the highest quantity of exchanges and synergies among the interested organisms in the single areas and connected with the European network.

The previous programming period LEADER II has contributed in a complementary way to support the agricultural and rural system, some particular activities, not completely supported by the foreseen intervention of the structural programme, have been revaluated and changed in significant factors for the rural development. It is sufficient to observe the activities linked to the recovering of local know how and their transformation in productive activities almost of an industrial kind (see for example typical local productions). Such activities have achieved strong and positive effects on the whole regional territory even with a really poor amount of financial resources supplied for the period. LEADER II had a financial amount of about 63 Million € and moreover it was a multi-found programme.

More detailed, the public contribution of Leader II was estimated at about 40.130.387 euro of which the 45% is represented by EU contribution (24% FEDER, 16% FEOGA e 5% ESF) whether the 55% is represented by national contribution. The projects are normally financed with a medium contribution of 60% starting from a minimum of about 30% up to a maximum of 100% depending on the different typology of intervention and on the kind of beneficiaries.

The present experience of LEADER + 2000 – 2006 in Toscana is likely to strengthen the preceding results giving a greater support to the partnership development, creation of network and quality of life even between different territories. In particular LEADER + would try to put into realisation the following kind of actions: improvement and valorisation of local productive system (certification, marketing planning, know how development, agricultural salary integration); improvement of quality of life through sustaining actions for rural population (services, women, childhood, disabled persons, etc.,); valorisation of natural and cultural resources including creations of networks between Bed & Breakfast and agritourism circuits; the strengthening of social and territorial competitiveness.

The financial resources of LEADER + for the period is altogether about 60 Million €. The results achieved since its management and with these economic dimension give a good expectation of the capacities of the rural territories to continue on the process of development by experimenting new economic development solutions based on bottom up principles.

A real result on co – ordination has been achieved thanks to the LEADER intervention. GAL (Local Action Group), similarly to the Agenda 21 Locale network, represents the best method in terms of local co-ordination, without regional intervention, and managing capacities (activity realisation and level of expenditure). In this sense LEADER + has made a step towards improving co-ordination on the ground in terms of concentration of the intervention. Another interesting point is the increase in managing capacity developed by local human resources which represents an important growth of the entire economic regional system.

The results achieved in the agriculture sector show a significant improvement in secondary activities such as agritourism, natural and pathways linked with typical local products on the way to valorising the territory , developing tourism and with considerable improvement on the economic growth of the Region75.

75To understand to what extent agritourism has been developed in the Region and even the diversification which imply for the rural and the agricultural sector see


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Notwithstanding the good condition of the entire agricultural and rural system of the Region it is worth pointing out some warnings. Firstly CAP being an exclusive competence of the European Union, as said at the beginning, that means a really strict capacity of intervention on the administration point of view. The consequence is a complete dependency on the Bruxelles decision making process; moreover this procedure is strengthened by a very low representation of the Italian interests at a community level.

In addition for a Region such as Tuscany which has made its strength on quality production, community law seems to be not really severe and incapable of sheltering the sector productions. On the contrary CAP regulation allow the presence on the markets of opportunist behaviour, deviant centred effects, by the side of other European Union Member States. The outcome, in the long run, would be the weakening of the protection required by Tuscan goods. In conclusion, paradoxically, CAP in certain terms, seems to be a threat for the development of local agricultural productions.

At this stage it would not be correct to end up in a negative way because on the other side CAP intervention made possible changes in farm conditions and even in the market price stabilisation.

It must be pointed out that the increase of initiatives dedicated to the reclamation of polluted areas aimed to reusing the vast parts of territory resources. Another relevant element for the territory is the seismic risk. Tuscany has classified in a seismic category 187 municipalities out of 287, 80% of territory, 70% of houses and population, 75% of economic and productive activities. The Region is committed in a educational and preventive campaign against the seismic risk.

ENVIRONMENT

Tuscany lies in the Mediterranean system and, in relation to the consumption and use of territorial and environmental resources, it is positioned among the areas which constitutes the “North World”.

The woods of Tuscany, the hills and the mountains, but also Tuscany coasts and the sea or the country with grapevines, olives and cypress which were cultivated in the villages, the towns or outside the cities, and Tuscany of savage and less populated islands. It is possible, therefore, to talk about not only one Tuscany but to refer the topic to different Tuscany environments, in which a various and comfortable territory has been heavily modelled by men’s hands for thousand of years with an esthetical and functional action that tends to the exaltation of local economy and agricultural resources.

The region is green, with almost 96% of the territory building free. The woods cover 50% of the 23.000 square kilometres which constitute Tuscany, to form an integral soil, with high productivity and with good qualities of absorption and retention of rains. Tuscany is one of the green lungs of Italy with at least one million hectares of forest surface. The agricultural areas represent 45% of the regional surface, while the urban and industrial areas constitute 3% of regional territory.

Moreover in its recent history Tuscany had to confront events connected to the idro geologic risks with strong socio economic consequences. For instance the floods of 1966 or the recent events in Versilia (1996). Tuscany, so far, has programmed, for the soil defence

http://www.agriturismo.regione.toscana.it/ a web site of the Region managed by ARSIA with the agritourism map and connected services on the territory.


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and the prevention of relevant hydraulic risks, strong resources for actions related with planned activity of environmental protection council.

On the side of marine and coastal environment Tuscany has a sea extension of about 633 kilometres of vast and varied coasts. The monitoring of Tuscany water has been done by the Regional office of environmental protection (ARPAT) in 368 points chosen and with a structure of 11 biological, chemical and physic indicators every fifteen days.

The data collected consists in a historical list from 1900 to 2001 and it stresses a clear improvement in the last few years, with a considerable part of coast areas in which is available a good quality of water not only for the hygienic aspects but also from the environmental point of view.

Naturally it is possible to observe, also, negative points. The coastal erosion seems to be concerning and it interests 35% of Tuscany beaches, 67 out of 191 kilometres of sandy beaches and it is located in the first places in the European risk record. In recent years Tuscany has lost 214 thousand square metres of sand.

On the whole the territory protected by a policy aimed at saving nature, considering also the different classifications, is about 426.000 hectares (18,5% of regional territory). After having increased the number of protected areas, the Regional Council has also started an activity in terms of qualitative growth, with the purpose of consolidating a regional “Tuscany system of protected areas”. Indeed an awareness has grown of a better management of this green patrimony, but also the finality of better promotion and evaluation.

The Region in order to organise and increase the knowledge of animal species, vegetables and habitat, had started the RENATO project (Naturalistic Tuscan Repertory). It has been found 964 species (460 vegetables and 504 animals), with the demonstration of a good rate of bio diversity still present in the Region., However, a necessity of a defensive action emerges. Among these species 374 connected with the flora are included in the WWF red list, among those 17 are the species died out and 19 are under threat.

In recent years a visible decrease on the value of some pollutant emissions took place in the European countries, but more than that the costs of growth, in environmental terms as well, has moved in those so called “countries of South world”.

At this level the Region has advanced, foreseeing, in the National Plan of cooperation 2001-2005, a reinforcement of the actions in favour of environment.

In Tuscany a codification of territorial natural resources already exists as is explained in the regional law about the territory government: air, water, soil, the ecosystems of fauna and flora: “They express the environmental balances and the health condition, in comparison with them is evaluated the environmental sustainability related with territory transformations”. When the subjects are the essential resources, the question is referring either to the natural resources or the cities and the inner-cities systems, from the landscape to the material documents of culture, to the infrastructural and technological systems. Tuscany took under consideration the strong integration between environment and economic necessities to obtain a solid sustainable system which has become one of the main intentions in the modern development policy of the Region.

From the perspective of the relation between environment and waste subject, the total production of urban waste is constantly increasing in the whole Region as a per capita production (629 Kg in the 2000), with an increment of 5% in comparison with the results of the previous year. The percentage of selected waste collection is constantly increasing


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(23,2% in the period March 2000 – March 2001) even if the objectives expected by the law (25%) have not been reached yet. For the special waste the data available underline a decrease of production in the 1999 in respect of 1997.

The emission cut of green gases of 6.5% within 2010 is the objective assigned to Italy by Kyoto Official Protocol and in the finalities given by the European community. Tuscany, with its Regional Energetic Plan (PER) is trying to reduce the carbon oxide emission by 10 million tons per year. To reach these objectives the programme is aiming to rationalise consumption, therefore, the containment of demand, a more efficient use and an increasing utilisation of renovating sources – so far the 29% of regional production of electric energy is obtained with geo termed and hydroelectric systems. At the moment, the consumption analysis stresses that there are some productive sectors which have worked better than others: the industrial sector, for instance, had a decrease of consumes 1990-1998 of 17%.

The Region has strongly implemented its intervention in terms of programming a local strategy on the environment with the awareness of the needed integration with other policies. Beside the law for the protection of different animal and vegetable species which are available in the regional legislation about woods, fishing and fauna management, Tuscany provides the Bio diversity Convention with its strong contribute, trying to activate four regional regulations on natural and environmental heritage76

The development of the EP in the last ten years has substantially produced positive results. That means a strong involvement of the Region into the right direction. Nevertheless there are critical elements for instance the difficulty faced by European and national policies to be respectful of the Kyoto objective on gas reduction 8greenhouse effect).

From the point of view of legislative implementation the Regional Law n. . 49/1995 improve the national law on “protected areas”. That means there is a certain kink of consciousness on the necessity to constitute protected areas in order to preserve the environment, the natural, historical and cultural heritage of the Region. Moreover the necessity to promote economic activities compatible with the environment is underlined. Furthermore the Law foreseen “natural areas of local interest” directly managed by Municipalities or Comunità Montane. The protected areas regional system in 2000 was constituted by 3 regional parks, 1 inter-province park, 38 regional reserves, 31 natural areas of local interests.

The assessments of sustainable development at regional level have been realised through the following steps: firstly a specific act mainly linked to the environment but discontinuous; secondly a more complex inter-sectorial and integrated actions with other regional policies.

The more substantial intervention of the Region in the period 1992 – 2002 concerning the implementation of the policy can be summarised as shown later on.

The approval of the regional law LR n. 5/95 on governmental instruments of the territory. This law implies that each plan or programme, at regional level, is forced to guarantee the sustainability and is submitted to a evaluation on the environmental effects.

Inside the Administration some important changes occurred due to the necessity of improving better condition on regional environmental side. The Regional Agency for the

76 In particular is necessary to underline the following Regional Laws: L.R. n. 49, 11 April 1995 “Norme sui parchi, le riserve naturali e le aree naturali d’interesse locale”; L.R. n. 50 July 16 1997 “Tutela delle risorse genetiche autoctone”; L.R. n. 53 April 6 2000 “Disciplina regionale in materia di organismi geneticamente modificati (OGM)”; L.R. n. 56 April 6 2000 “Norme per la conservazione e la tutela degli habitat naturali e seminaturali, della flora e della fauna selvatiche”.


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environmental protection of Tuscany (ARPAT) was constituted77; in 1996 the area “Sustainable development and ecologic control” has been made operational. This is a horizontal structure which has the duty to improve the process on sustainability and even to develop the Regional environmental Authority function.

The regional law on regional programming (LR n. 49/1999) and the approval of the Regional Programme of Development 1998 - 2000, and its revision – 2330 - 2005, characterise the regional programming instruments as a tool of sustainable development. Sustainability as a strategic obligation for regional development means that policies involved on economic growth must be reviewed, maybe limited in their objectives, in order to pursue the major objective of wellbeing which include social equity and environmental protection. The other side of this obligation is represented by the fact that it helps to develop innovation processes on the way to the increase of economic and occupational growth.

The regional strategy on the subject is oriented to the integration to the extent to finalise all the usable instruments in the way of environmental sustainability as recommended by European Union through its VI Environmental programme.

The main characteristics of the regional intervention are embodied by the dissemination of Agenda 21 Locale and sustainable best practices, the improving of the instruments of environmental evaluation of plans, programmes and projects through the using of VAS and VIA and last, but not least, the dissemination of managing environmental systems and social responsibility and the utilisation of brand on environmental quality78.

Two main environmental programmes involve rural and local Tuscan communities for the protection and social awareness of nature: LIFE and Agenda 21 Locale. The Agenda 21 Locale79 is a really interesting experience promoted by Rio de Janeiro conference. After the promotion of this instrument by the Ministry of the Environment, the Region and the local territories have strongly responded to this way of acting, this is the reason why it is possible to notice that 10 projects has already been financed with national resources in the 2000.

This represents an important effort by the side of the regional administration. Actually AG21L acts mostly at a local level, municipality, so that it would be advisable to improve the interaction with those subject mainly involved in the process of acting his intervention. The achieved results in terms of partnership have been made directly by these subjects through the construction of national and regional networks. The local union so generated shows a concrete need of the civil society which would be implemented by the administration even to share the environmental items and to construct a EP policy that could match the community requirements on one side and those of the territory on the other. The amount of resources brought to the territory by those projects is about € 1.156.862,76.

Direct income derives from the realisation of LIFE projects in the Region. This experience can be monitored only by using quantitative information about the money allocated in the Region through this programme; the territory has been involved with 32 projects. The approved projects has given to the Region about € 9.531.740,63.

Until today the Region has had ten experiences of AG21L out of € 12.900.000,00 of the first national call for proposal while there is no certainty about how many projects will be financed by the Ministry in this second phase that is constituted by € 13.089.080,00.

77 Regional Agency for the environmental protection of Tuscany (ARPAT) constituted with Regional Law L.R. n. 66 18th April 1995. ARPAT has the role to realise environmental controls. 78 VAS – Strategic Environmental Evaluation, VIA – Environmental Impact Evaluation, EMAS, ISO 14001, S.A. 8000, ECOLABEL, ecc. 79 Agenda 21 Locale promotes a process of bottom up awareness in terms of environment with a strong involvement of local population, in order to preserve, enhance and valorise the value of the local environment.


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However the Region is satisfied by the improvement of AG21L and by the reply of the territory.

Another remarkable result concerning AG21L and LIFE projects is the territory level interested those kinds of programmes go deeply on the local level by developing the capacity of making projects of Provinces and Municipalities.

In conclusion it is possible to assess a really great improvement of the Region in the specific matter. Nevertheless it is necessary to reinforce the co-ordination with the other policies developed in the territory because even if achievements have been made between EP and CAP, namely use of low impact technologies in agriculture or the improvement of biological agriculture, transport policy, for example, still need to be improved in such way.

R & D POLICY

R&D and enterprises innovation capacity represent two strong elements of the competitive advantage of every socio-economic system. The Italian reality of the sector is characterised by a deep division between south and north.

Taking into account the expenditure level of R&D activities Objective 1 Regions show an expenditure of 0,58% of the total GDP against the 1,15% of the other Regions. The diversity increase if we consider only the expenditure sustained by the enterprise system, public and private. So that enterprise expenditure of non Ob. 1 region is about 0,66% of the total GDP whether that of ob. 1 regions represents only 0,14 of the GDP.

Starting from this framework the situation of Tuscany appears critical. The expenditure level of the Region in R&D is really low and represents less than the 1% of the GDP a bit lower than the national one but consistently lower with regard to that of the north west and central Italian regions.

Even considering expenditure on innovation Tuscany hangs back. The amount of expenditure on innovation from Tuscan enterprise system represents only the 4,6% of the total Italian expenditure. Nevertheless it would not be worth assessing a completely negative situation. Tuscany enterprise system is mainly made up of medium and small sized enterprises with are linked to the more traditional economic regional sector so that data may false the interpretation of the real situation about the capacity of Tuscan enterprises to promote and sustain innovative capacities and research activity. Based on the products and market characteristics where the demand side is fragmented the productive system are strongly disposed to base their competitive advantage through the innovation realisation which imply little variation in the productive process with non technological discontinuity. This is made possible because it is not required that the enterprises completely change their productive process and at the same to face with the demand side. Finally it can be assessed that innovation in the productive system is almost frequent and that related process of research and development on products or production methods which are completely linked with the productive system.

On the contrary with regard to Information Society the Region covers a really high position in comparison with the other Italian region especially in terms of enterprises operational in the new economy sector. Nevertheless as data shows they are enterprises of very little dimension which have probably developed a supply capacity on low sophisticated products such as web sites, e-mail services, ecc. But in the sector it is worth mentioning some successful cases represented by 3 big societies which operate in the Information Society and have achieved really considerable results so that they are quoted in capital market share, two of them are situated in Pisa Province and one in Firenze.


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Since 2000, the principal instruments and sources of funding of an R&D policy in Tuscany are:

Programma Nazionale della Ricerca (PNR) approved by the CIPE (21-12-2000). The FAR (Fondo per le agevolazioni alla ricerca – Funds for research incentives) was made operational in this frame as of 2001 and represents now an important source of funding at national level.80 The FAR is provided for by a National Law 297/99 which is notified as State Aids.

Documento Unico di Programmazione (DocUP) in which Measure 1.7 (with a budget of 19.440.410 euros) is supposed to finance – development process support and strengthening international enterprises competitiveness with particular reference to those markets embodied by the presence of innovation and sustainable products or services; measure 1.8 Industrial pre-competitive research(with a budget of 19.251.767 euros) is supposed to finance the development and the re-conversion of the activities in order to allow enterprises to match markets sectors characterised by innovation and sustainable products or services; on the other side measure 2.8 (with a budget of 30.299.088 euros) is supposed to finance the sustaining and the dissemination on IS with particular reference to Public Administration sectors, environment and productive systems.

The Regional Innovation Programme on Innovative action (2002 – 2003) has the objective of stimulating technology innovation dissemination process in the regional economy through the creation of co operational network between enterprises, research centres, universities, public local institutions, innovation centres, training agencies and financial organisms. The created network will allow the integration of scientific, technological and industrial competences of the more developed area of the region which benefit of FEDER resources (Objective 2 and phasing out areas) in order to elaborate and develop best practise methodology usable for the innovation dissemination and which will find place in the future implementation and management of the DocUP of the Region 2000-2006 (DocUP Ob.2).

Participation in the Framework Research Programme.81

Participation in national research programmes financed by the Ministry of University and research82

Even if the financial amount of resources is not to extraordinary Structural intervention foreseen by DocUP Ob.2 for the period 2000-2006, as mentioned above, together with the regional plan on Innovation Actions show a good contribution to the sector and especially to the way of completing the intervention in the territory. This is not a case that To implement the sector the Region has financed, with regional financial resources, a programme on Innovative Action In a complementary way. The amount is 6 Million € respective of public and private resources. The Programme is base on a strong and well structured partnership system: enterprises, research centres, universities etc.

Participation to the 4th and 5th Framework Programmes of DG Research (FP4 and FP5) represents an interesting amount of resources for the Region with about 34 M €. This is

80 Decreto Ministeriale 297/99 Establishing procedures for the sustaining of scientific and technological research and for the dissemination of technologies and researchers mobility, (G.U.R.I. n. 201 27th august 1999) made operational in 2001 with the Decreto Ministeriale 593/00 Procedures for the attribution of financial facilities according to Decreto Ministeriale 297/99 (G.U.R.I. n. 14 18th January 2001). 81 For a scoreboard see tables in the Annex. 82 For a scoreboard see tables in the Annex


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extremely important considering the low capacity of the Region to activate other resources especially structural.

In FP4 (1994-98), 61 projects were presented by Tuscan partners as Prime Contractors.83

In FP5 (1998-2002), the number of projects led by Tuscan partners as Prime Contractors is lower than the previous period with 19. The total amount is around 22 millions euro. Even if a decrease appears in the amount on the other hand it is necessary to underline that comparing them to those of Structural Funds or other regional resources are reliable.

TAB 2.2 FRAMEWORK PROGRAMMES TUSCANY PARTICIPATION

Number of Prime Contractors

Fourth Framework Programme (FP4) 61

Fifth Framework Programme (FP5) 16

The following data gives some more information about Tuscany participation and capacity to activate financial resources nevertheless they can not be considered exhaustive of the total participation84.:

Energy

- 1 projects as Prime Contractors (PC) for a total of 40.500.000,00 euros

FP 4

- 61 projects as Prime Contractors (PC) for a total of more than 30 millions euro

FP 5

- 16 projects as Prime Contractors (PC) for a total of more than 20 millions euro

Other Projects

- 12 more projects on Health, pre 1984 Programmes and IC with no financial information

It is worth noting that there is a good participation in the programmes in the way of considering this subject as an important policy priority.

That FP represent a concrete source of funding which is appreciable. The capacity of the Region to use these sources of financing is getting more important while considering that it will be in the next future the more usable Community source of funding after 2006. One could think about mechanisms to encourage participation to FP, for example, regional aid could be linked to the capacity of obtaining FP funding.

In this direction move the capacity of the University system of the Region. In fact it is able to develop a really good performance in its capacity of projects realisation. The national financial system foreseen another important source of financing which derives from the opportunities represented by the Italian Ministry of the University and Research. In the last

83 The total amount is not available. 84 The present data are not exaustive in consideration that some projects of the Cordis data base do not present financial information. See www.dbs.cordis.lu.


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three years the Region, through University knowledge has been able to advocate an amount of resources of about 58 M € with a percentage of co-financing of about the 58%.

That said, it is difficult to generally conclude that absorption and innovation capacity has increased in the region as a result of CP. Some kind of intervention would required structural intervention which is not possible to realise with structural funds as Tuscany is an Ob. 2 Region. That has signified the necessity for the entire socio economic to try to develop capacities in order to achieve the expected results by using other kind of resources present at a community level. In a certain sense the system has been forced to act in this way, nevertheless the results seem very good and interesting in the way of general economic growth.

TRANSPORT

Transports and mobility are considered to be a significant economic sector in Tuscany. The railways, in fact, employ 8000 attendants, 7000 are those working in the public local transport, 2.000 among motorways, ANAS and ACI, about 1.000 harbour workers, 2.000 port workers, 2.000 in the airports, to whom it should be added about 20.000 lorry drivers or other employees somehow committed in the goods sector (10.377 are the road haulage companies, 5.5% of the national total). The taxi drivers are about 1.200. There are about 15 thousand employees actually working in the industrial metal-mechanic sector connected with transport services (out of 75 thousand in total) or in its area of interest. In Tuscany the three biggest companies are Breda, Piaggio and Betamotor which employs 4.290 units altogether. About 1.500 work in the shipbuilding sector.

In Tuscany the kilometres of railways are 1.584. The regional lines are 13, where, everyday 580 trains carry 170 thousand passengers. On the whole the annual number of passengers reach 46 million units. It is possible to list a more noticeable total if we consider the passengers who are using the train to leave the region or arriving from the other regions. In Tuscany there are more than 400 kilometres of motorways, almost 900 kilometres of regional roads and 1.500 of former national roads, now regional. In these roads 2.130.000 vehicles, 209.940 trucking and 280.000 bikes circulate every year. The urban buses are 1.200, the extra urban 1.700. The companies committed with the circulation of these vehicles are 34. They move every day 570 hundred passengers in the cities (148 millions per year) and 253 thousand among villages and towns outside the urban area (66 million per year).

In 2002 more or less 3 million passengers took off or landed in Pisa’s Airport (1 million and 665 thousand) and in Florence’s Airport (1 million and 400 thousand). Galilei’s Airport offers 6 national lines and 11 international for a total of about 300 flights per week.

In 2002 about 154 million tons of goods passed through Tuscany. The major part was done by tires (101 millions of tons). The port of Livorno has gained importance from this point of view: 25 million tons per year. Every year from the coasts of Tuscany about 3 millions and 640 thousand people are embarking.

This brief explanation about the numbers of public transport in Tuscany has clearly expressed the importance given to the sector. In recent years Tuscany has begun a strong commitment to rationalize the expenses of the public local transport. The complexity of the economic and financial situation of the public transport companies firstly required a consideration of the problem of redevelopment and the possibility of constituting the instruments to actualise the Bassanini reform: in particular the complement of devolution, transferring to the Regions the competence upon the railway local services.


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In these days Tuscany has refined its role starting from the customer point of view as a basis for the functions done either at a regional or local level. Taking the point of view of the customers meant to use effectively the responsibility of controlling upon the respect of contract services, with particular regard to the supply of different times, quality and comfort proposed by the public transport system.

The steps which are considered as a practical basis to handle are:

- A general information programme

- Services programme

- Acting Analysis

- The integration of the supply in terms of tariffs (timetables, integration between local services and regional or national services)

In the different proposal made exists an already active the “toll free number” for any complaint on the way of developing a service of customer care. The control procedures, involving a specific and precise regional inspective basis, do not answer only a simple control necessity, but it is a integrated part of the adequacy process of the service toward the customer needs.

The “carta dei servizi“ completes also the general vision of the performance related with the improvement of quality which is working with specific prescriptions expected in the contracts printed respecting the regional scheme.

The point of view of the customer is therefore the basis of a project pertaining to customer information. It means to respect the citizens rights toward a timely information, adequate, accessible and updated in real time about the supply linked with the regional network of transport services (trains, buses, ships, airplanes). With these conditions, the information will be provided, in short periods, thanks to the creation of an internet web site and a call centre.

In the inner role ascribed to the Region in affecting by useful activities the development of the regional transport system the main aspect of transferring the competence in transport sector services is related with the railway sector. It means, in particular, the unification of programmes connected with railways and tires transport. The same importance has the division between programmer and manager roles which correspond to the attribution of programming functions to the Region, Provinces and Municipalities while the companies as the function of managing.

In these days the priorities of the Region is to create the conditions for a better management of the sector to bring the modern service contracts to a high qualification standard. It means, in particular:

- Affronting terms of contract

- Characterize the consequent objectives and the commitments of the single parts

- Find out the critical points of the supply system

- Control their factual status

The observable perspective is to obtain a fast and complete development of the segment. There is also the possibility for all the partners involved to prepare themselves for the scenery of 2004 which will be characterised by contests with the awareness of the usefulness of the instruments apt to assure a better service.


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For the Local Authorities, the transformation of the transport matter from multi function sector to a multidisciplinary division in comparison with the territorial and environmental programmes forces them, who are mainly not prepared, to promote and perform a new role in the programming commitment. Moving from a relationship of “property” through a connection based on a contract with the companies of public transport is surely, for the Local Authorities, the most difficult cultural passage of the whole reform. It means to deepen the awareness of the productive processes of the sector and the capability of projecting inside the Local Authorities. Nevertheless, the deadline of two years to reach the moment of contests with the capacity of doing completely the role committed seems to be enough.

Looking at the sector of mobility it has been found that parameters and indicators related with the productive process of territorial quality, must be presented in order to let the organization of transport system be coherent with the urban, environmental, economic and social sector.

The Tuscany Region is strongly committed in sustaining every level of changing for the training assistance, from the incentive to the investments, with the final aim of the total awareness of the Local Authorities to the performances of the network and the economic resources required.

The power of regulation given to Tuscany, conducted with the Regional Programme of public transport services (PRT) (2001-2004)85, will order the passage phase to the contest regime for the confidence of public transport local services.

The programme, in particular, has different intents for a better and effective development of the transport services. In particular, the necessity of preparing the Local Authorities to govern the transport system in a competitive way (from the preparation of the contest to the drawing up and management of services contract), protecting and developing the performances of the service and the coherence with the available resources and with the intends of protection and progress of the local territory. Furthermore it seems necessary to offer to the enterprises a clear context of the main points, of the bonds and the opportunity which can remunerate, in a performance scenery, the quality aspects and the innovation in the service offered and, finally, provide them and the changing public enterprises with a better context in which to better use the investments, the private resources and the capitals of the Tuscany Region, to reach the separation of roles between controllers and controlled. The services contract will be, indeed, the new instrument to help Local Authorities to act with a mobility system compatible with the actual and future needs of the population.

Nowadays the national, regional and local administrators have to use transport policy as an instrument of development of their territory which would be capable to improve the competitiveness of the local partners involved and that of the entire local economy.

85 The Regional Transport Plan (PRIT in Italian) which is still used, was created in 1989. In 12 years the scenery has deeply changed not only in quantitative terms (30% more mobility as a medium of different methods) but also qualitatively. In fact the institutional and economic context in which the new project has been elaborated has altered. It proposes to obtain the realization of a European common space (with notable implications in terms of development of human and goods mobility, but also in term of increasing the performance between vectors and logistic operators). The reform aims at changing, substantially, also the local public transport, from the reform of port management to the deregulation and privatisation in the airport sector, to the devolution for the regions of the most important national competences, starting from national road conditions management to the development of a new economy and the network to support it. They will have, certainly, an effect in the context governed by the mobility policy. In particular the fundamental policies respect a general coherence with the main acts of regional programs (Regional program of development and Plan with territorial finality), national (General plane of transports) and European (Commission document: The European policy of transport until 2010, the moment of the choices).


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Nevertheless the awareness of using transport policy instruments in a strategic way to growth, there is the existence of concrete environmental compulsions particularly referred to the urban system such as traffic congestion, acoustic and atmospheric pollution which have a great influence in the organisation of services in the local systems. What can be said is that the Region achieved successful results in terms of improving transport matters. In particular it is significantly noticeable the growing interaction between transport policy environment and energy which is a really good integration in the foreseen measures of the Docup and even in the PRT of the Region.

Moreover this situation has the capacity to influence the political choices with regard to industrial and commercial centres localisation and even in terms of individualisation of interface/transfer between different transport systems: urban, interurban and national.

So that the role of the public logistic as an instrument of economic politics for the territory is that to create the necessary condition in order to develop competitive and efficient private system in a social and environmental sustainable way.

STATE AIDS

The condition listed in the data obtained is, certainly, explaining a distinct situation from the state noticed from other regional data analysed. The indication underlines a basic status of better improvement either for the economic condition or for the normal target of state aids. These, in fact, are aimed at a various range of beneficiaries with a general diversification of objects. It means, also, that the variety is commonly accompanied by a major finality of increasing the specific condition of the local district better than supporting or covering challenging conditions without any strategy. It must be said that the approach produced seems to be spread in all the measures, giving the layout of a common intent and the presence of a valid programme which deal with the vast circumstances visible in local society as well.

Furthermore, in the preference among different plans, the importance given to the employment development for SMEs is certainly superior and it emphasizes the factual necessity of a modern region to make intense and strong efforts for the local priorities. On the whole the SMEs world becomes the most vital sector to which has been dedicated the widest part of the aids; it is financed with an amount of about € 94.537.232,96 in relation with the vast variety of subject involved. It should be understood, above all, that in particular one segment had received better attention, the agriculture SMEs sector. In this area it is possible to notice that modern programmes dedicated an important section to the general protection of the environment, in particular the unique ecosystem of the Tuscany region. It means, expressly, to specify the inner qualities of the area with the protection of regional products, due to the necessity of explaining the particular and delighting virtues of the area, but also the possibility by the regional government to let buyers be familiar with the local products. With these aids Tuscany has intended to advertise its own local specialities starting from the food and finishing with the organisation of conferences and workshop all around Europe and America. Moreover, all the agricultural farms are involved in this kind of finances with a great advantage over the possibilities given to the local district to create a particular quality in their own production. This view is certainly giving the priority to the growing of the SMEs in the regional programmes but in Tuscany, by now, it has become a main part of the economy way of acting, with profound results for the motivation and the attitude in the development of new and qualified manufacture. The list of aid related with the SMEs development ends with a particular significance given to the services and the increasing of the main sector linked with counselling and commercial services considering that this branch is becoming a central associate to the SMESs area.


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It is also possible to list different aids dedicated to the livestock in which is possible to distinguish a series of financial aid created for the protection against Bovine Spongiform Encephalopaty (BSE) and others for animal illnesses. Finances are also available with the aim of protecting the animals under threat of extinction. These aids mean, indeed, a similar interest in different matters and an intention to preserve the local situation from disasters that in other regions has happened and had forced regional government to create assistance that did not have other finality different from covering a problem which had been already presented. It certainly must be considered the different location and the climate condition of other regions but the agriculture in Tuscany aids do not involve in the general part, financial resources dedicated to cover disasters or calamity but is almost all done to prepare the local development for a steady growth.

The purpose which has been exposed briefly seems to lead to a way of an entire region toward the growth of a different approach for the aid measures. In this case the way of obtaining a simple case of action gets more and more closer to a main plan, a structured activity with a strong attitude for the integration. It was observed, in the part dedicated to the SMEs finances or in the aquaculture development. This final branch has become an important part of fishing activities and its production gave a new way to exploit the cultivation of sea food.

On the whole, this modern attitude to conceive state aids has been successfully used by a large part of the richer regions and it gives them a solution for a better approach to problems created by the modern increase of technologies and economy. It offers, definitely, a great advantage to the Tuscany region; the region demonstrated to pay enormous attention to the modern tourist and economic matters with a comprehensive methodology and a deep and clear acting programme. The Region confirmed, also, that it is possible to create a strategy to involve the protection of local amenities and products without disregarding economic interests. This way of acting is certainly paying off and it is an example for a clever and clear project of local financial distribution.

ARTEA is in charge of supplying aid, contributions derived from national and regional provisions. Right now it is responsible for the management function of the payment phase with specific regard to the following stat aid procedure:

Agricultural and rural Development services: the regional plan on Agricultural and rural Development services for 2003 supports the farmers in the transition through a multifunctional agriculture either on the technical profile or in the takeover of knowledge and competences in order to respect environmental, hygienic and sanitary, safety on work places and animal welfare laws86.

Livestock farmers intervention: related to dangerous refuse disposal derived from BSE87.

Contributions on Biological Agriculture88.

The following table shows a partition of state aid granted to Tuscany divided by sector. A suggestion when reading this scoreboard is that general measures are not included in the figures and the data collected can only be considered partial. Nevertheless it is interesting from the point of view of sector intervention.

86 Regional Law LR n. 34 of 3rd of August 2001 as modified by LR n. 35 of 3rd of August 2001. 87 Regional Law LR n. 7 of 22nd of February 2002 integration of National Law L n. 49 of 9th of March 2001 urgent measures to destroy BSE unsafe condition materials. 88 Regional Law LR n. 49 of 16th of July 1997.


476


TAB. 2.3 TUSCANY STATE AID

Agriculture-general

Aid number Beneficiary Amount Duration Euro

N 369/2001 Introduction of a system of direct aid to farmers

for the provision of technical assistance services.

Approximately eur 5 million Indefinite

€ 5.000.000,00

N 63/2001

Aid to organic farmers to cover the costs of

checks and certification in 2000. To promote

organic farming

Approximately itl 183 million

(approximately eur 90 000) for

checks carried out in 2000

Unspecified

€ 90.000,00

Nn 154 /1999 Regulation of wine road in tuscany Unspecified Unspecified

N 486 /1999 Economic promotion of agricultural resources Unspecified Unspecified

N 479 /1999 Olives oil-general analysis Unspecified Unspecified

N 523/98

Regulation of rural and agricultural development

services

Approximately itl 10 billion

(approximately eur 5 million)

for the first three years

Indefinite

€ 5.000.000,00

N 391 /2001

Leader ii regional programme - increase in the

rate of aid for promotion measures. To

encourage promotion of wine products

Approximately eur 175 000 Until the end of

2001

€ 175.000,00

Agriculture-calamities


C 60 /2002 Reduction of gases emissions which cause green

effect

Unspecified Unspecified

Total agricolture € 10.265.000,00


477


Livestock


N 639/2001

Aid for the disposal of specific risk material from

bse. Fallen stock. To compensate for extra costs

deriving for community and national preventative

measures against bse

Eur 309 874,14 Until 31.12.2001

€ 309.874,14

N 757 /2002 Aid for the genetic development of animals

related with zootechnic


N 739/2002

Modification of regional law n°7/2000. Aid for

breeders for helping them to get rid of bse

polluted materials

Eur 515.874 31 oct 2002.

€ 515.874,00

N 628/02

Aid for producers participating in the serological

surveillance and vaccination plans for blue

tongue. Aid to compensate farmers for animal

losses as a result of compulsory vaccination.

Compensation for the additional costs borne by

producers as a result of their voluntary inclusion

in the serological surveillance plan for blue

tongue.

Eur 400 000 (eur 200 000 in

2002 and 2003).

Until 31 december

2003.

€ 400.000,00

N 564 /1999 Program for the protection of races under

extinction threat


Total livestock € 1.225.748,14


478


Fishing


Nn 57/2002

Aid from the region of tuscany to measures partly

financed by the fifg. Structural measures in the

fisheries and aquaculture sector.

Eur 5,53 million 2000-2006

€ 5.530.000,00

N 394/99

To develop aquaculture. Aid to develop

aquaculture by providing advice, and aid for

training and extension services, research and

technological development, promotion and the

search for new outlets

Itl 800 million per year (eur

413 165)

Unlimited

€ 413.165,00

Total fishing € 5.943.165,00

Companies-smes


N424/2001

S this aid is aimed to develop investments in the

sector of renewable energy, rubbish treatment

and reclamation of polluted territories. It is

dedicated either to the smes or the main

companies

Eur 42.700.000,00 2000-2006

€ 2.700.000,00

N 826/2000

Programme of economic promotion of agricultural

activities for the year 2001. Promotion of the

agricultural productions of the region and of

agritourism

1.430.585,61 € One year

€ .430.585,61


479


N 713/2000

Changes to the programme of economic

promotion of agricultural activities for the year

2000. Promotion of the agricultural productions

of the region

Itl 80 000 000 (eur 41 316) One year

€ 41.316,00

N 415/2000

Changes to the programme of economic

promotion of agricultural activities for the year

2000. Promotion of the agricultural productions

of the region

Itl 2 325 000 000 (eur 1 200

762)

One year

€ .200.762,00

N 354/99

Extension of and budget increase for the scheme

for the conversion of regions affected by the

decline in the mining industry (law no 221/90).

To develop economic activities other than mining

Itl 20 billion (approximately eur

10 million)

31 december 2000

€ 10.000.000,00

C 10/2001

The italian authorities notified the commission of

aid that the ministry of industry intended to grant

to lucchini spa (“lucchini”) for research and

development.


Xs 10 /2002 Construction and engineering Unspecified Unspecified

Xs 78 /2001 Services. Qualification of commercial services Unspecified Unspecified

Xs 77 /2001 Aid for investments of touristy enterprises Unspecified Unspecified

Xs 76 /2001 Aid for the general demand of services Unspecified Unspecified

Xs 75 /2001 Aid for the acquisition of counselling services Euro 1.500.000 2000-2006 € 1.500.000,00

Xs 70 /2001

Aid for the investments of little handicraft

production companies and cooperatives of

production and work



480


Xs 69 /2001

Appropriations (crédits d'impôts) for the

productive and environmental investments of

industrial companies and cooperatives


Xs 60 /2001 Aid for companies integrated investment

projects.

Eur 10 000 000 2001 to 2006

€ 10.000.000,00

Nn 150/2002

Economic promotion of agriculture and for 2002.

This aid is dedicated to the agricultural

companies.

Eur 2256836,44

€ 2.256.836,44

N 122/02 Promotion of quality products. Promotion of

typical and certified products

Eur 107 732,91 (itl 208 600

000)

2002

€ 107.732,91

N 414/01 The scheme is designed to encourage firms to

engage in additional r & d activities

Eur 25,3 million in the period

2000-2006

2000-2006

€ 25.300.000,00

C 18/2002 Aid to shipbuilding —measures to promote

shipbuilding investment


N 181 /2002 Aid related with docup - measure 1.3 tuscany Unspecified Unspecified

N 742 /2001 Energetic economy and renewable sources Unspecified Unspecified

Total smes € 94.537.232,96

SOURCE: OUR ELABORATION ON EUROPEAN COMMISSION DG COMPETITION


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TAB. 2.4 AMOUNT OF NOTIFIED SA*

SECTOR AMOUNT

AGRICULTURE € 10.265.000,00

BREEDING € 1.225.748,14

FISHING € 5.943.165,00

COMPANIES - SMES € 94.537.232,96

EMPLOYMENT €

TOTAL € 111.971.146,10

* The period covered by the sa analysed in this table is until 2006

SOURCES: OUR ELABORATION ON DG COMPETITION DATA

TAB 2.5 GEOGRAPHICAL DELIMITATION OF THE NATIONAL REGIONAL STATE AID MAP AS

APPROVED BY THE EUROPEAN COMMISSION TILL END 1999.

NUTS NAME BASE* AID (NGE)* STATUS*

TOSCANA 92.3.c 10

MASSA-CARRARA 92.3.c 10 P

LUCCA 0

P

FIRENZE 92.3.c 10 P

LIVORNO

92.3.c T

AREZZO 0

SIENA 92.3.c 10

GROSSETO 92.3.c 10 P

P

N

PISTOIA 92.3.c 10

92.3.c 10 P

PISA 10

N

P

*Base the regional derogation (article 92.3.a or 92.3.c) (t) totally or (p) partially eligible nge: net grant

equivalent.

SOURCE: DG COMPETITION

Analysis of the impact of community policies on regional cohesion First Draft Report. DG REGIO EC. REGIONAL CASE STUDIES

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Even if it results quite difficult to assess completely SA financial value, an interesting indicator is shown in the above table 2.5. Without any doubt the data shows the maximum aid percentage attributed to the Region (10%). This indicator results of extreme importance on the base of EU Treaty art. 87.3.c because it underlines not even the presence of aids granted by the de minimis rule89 but more the maximum disposal amount. If we relate table 2.4 with the present one (2.5) it is quite clear that in order to comprehend the level of contribution of SA measure in the territory the percentage shown in tab. 2.4 related with notified SA must be increased of a maximum of 10% which is allowed by the presence of non notified aid (de minimis).

There is little doubt for example that CP and Structural Funds in particular made a precious contribution to improve specific issues but it is proved that in certain fields like R&D, the progress realised are supported by motivation and capacities different from Structural Funds which do not really seem to be satisfactory in a monetary support. However, from the Objective2 perspective the overall sums engaged by Structural Funds appear small to be able to substantially influence the regional growth trajectory91, whereas they appear in a certain way to be complementary.

In conclusion whether SA system is not of extraordinary entity it contributes on one side to the strengthening of some critical conditions which are present in the territory (i.e. BSE), while on the other hand it guarantees a significant support to producers or farmers in order to develop the economic competitiveness of the territory even by taking into consideration some policy necessities such as the environmental one through biological agriculture support.

3 GENERAL IMPACT

The impact of CP on growth and convergence in Tuscany is difficult to assess in general quantitative terms whether it can be measured more from its qualitative feature, a general common opinion expressed by the interviewed persons90.

On the face of it, from a qualitative perspective, CP have indeed made some decisive contributions, introducing some fundamental “cultural changes” in policy-making, programming and management such as the practice of evaluation and of control of spending. Better said this represent the added value of implement CPs at regional and local level.

Still from a qualitative point of view, it is interesting to note that Single Market policies which have no direct financial counterpart and are hardly acknowledged as Community policies at regional level, have certainly had some significant consequences as well. The introduction of a single currency with a relatively strong exchange rate contributed to make Tuscan products more competitive in the internal market and abroad while imported goods and materials became dearer. This has probably accelerated the processes of industrial re-conversion. Also, other related aspects such as the introduction of products quality norms can help strengthen Tuscan position on certain “niche” markets of high quality and typical products. Overall, there are good reasons to believe that Single Market policies have

89 The application of de minimis due to the amount of contribution, a maximum of 100.000 € in three years, does not have to be notified to the Commission so that results that are quite difficult to analyse in real terms of developing the market by the creation of stable conditions and sustainability. Therefore sometimes it could be complex to understand whether it results functional to the development of socio and economic conditions or not. 90 Method of interview included at the end of the document. 91 The total amount of resources attributed to Tuscany as Objective 2 Region by the DocUp in the present programming period – 2000-2006 - are 1.133 Million €.


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contributed to strengthen Tuscan’s competitiveness. However, this is not enough to conclude that effects were positive as far as cohesion is concerned.

On the other hand it is worth saying that CAP sometimes is intended more as an obligation than a development opportunity for the agricultural and rural sector, while the Region require a stricter intervention to better protect the specific market and the related transversal activities.

To sum up the impact of CP, the following table reports an assessment of each policy with respect to three objectives: external competitiveness, intra-regional cohesion, and ‘external’ cohesion with other regions in Italy and Europe.

ENVIRONMENT R&D SINGLE

MARKET

TAB. 3.1 CPS AND REGIONAL COHESION

CAP TEN-T

STATE

AIDS

++ + + -

+ - -

Cohesion and

convergence + + + ? ? ?

External

competitiveness - +

Intra-regional

cohesion + + ?

4 GOVERNANCE

The Tuscany Region statute foresees the realisation of functions devolution in the territory. In particular this action is being concretised in the attribution of some functions to the Provinces which are so capable to intervene at local level in terms of programming.

The Tuscany Region, in the past years, has been involved in the actions programming upon the territory trough the planning of a Regional Plan of development. This document does not contain a financial holding but has the purpose of providing the general intents for the redaction of sector Plans which are made up of the single competent departments for the different subjects. It means that on a local level a learning process was observed because of the alignment to the administrative procedures and to the general setting plan of territory program to the European Community system (programs, projects, aid, monitoring, evaluation).

On the whole, therefore, every sector of regional administration handle its own competence activities without any consideration of resources typology activated, while the Office of community programmes deals with the handling of the DocUP.

Some “cultural changes” in policy-making terms – some of which were radically innovative – have been introduced thanks to Structural Funds. For example, concerning cooperation and partnership, a more active and formalised participation of social partners in the design and monitoring of policies is to be noted. In particular, social partners and other actors interested by the implementation of CP are invited on a regular basis at the Monitoring Committee (Comitato di Sorveglianza) in charge of CP.


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This work methodology has innovated the administrative structure of the region altogether and represents the concrete added value generated by the experience of managing community programmes.

The only problem visible is due to the lack of a concrete simplification of procedures and to the system controls currently existing. Probably with the new regulation of Structural Funds n+2 rule it will be possible to accelerate the expenses apparatus.

Some CP proved to be very successful in promoting cooperation and partnership at a local level as well. In this respect, it is worth noting the contribution of LEADER II (see Section B above). Through the establishment of Local Action Groups covering 80% of the territory, LEADER offered a concrete opportunity to local subjects to learn how to cooperate and establish partnerships, sometimes even with partners abroad. This is a particularly valuable outcome for rural zones characterised by a low density of population and for a Region which is making, as said, its strength on the exploitation of the rural areas in connection with typical productions, biological productions, natural and cultural tourism pathways.

As to private / public partnerships, it appears that co-financing by private agents based on the community nomenclature (Ob. 2) remains generally quite high requiring a strong participation from the part of the private sector (see Table 10 in Annex).

There is progress towards more communication and transparency about CP and related activities, at least at the level of the Regional administration. So that even administrative procedures transparency has been developed especially with regard to projects selections. That means a better intervention of the Administration in writing clear public call for proposal with a strong interaction with the Monitoring Committees and an interaction even with Public Subject through regional and local programming acts such as Accordi di Programma concertated with the Regional Council and interested Local Authorities.

This way of action has been firstly implemented with the first period Structural Funds management so that the following reforms are characterised in territory by a strengthening of this organisation and a better definition of the procedures, of the competences and responsibilities either at regional level, functionaries, or at beneficiary level, final beneficiaries of the actions. Moreover in the length of this learning by doing process the regional administration has decided on one way to gave to the exterior the management of

5 COORDINATION

We can talk about coordination in two different ways.

Firstly it is possible to describe coordination in terms of exchange between administrations in charge of programmes and policy implementation. Secondly we can observe coordination between policies as sectorial interventions.

In relation with the first point, the regional situation is characterized a choice made by the Region in terms of its internal organisation. The Region has decided to establish a Co-ordination Service with regard to FEDER Ob. 2 intervention which is settled in the Economic Development Department. So that it results the each regional department is in charge of the actuation of programmes measures. It means that the governing of the actions pertain to a central level while each service is responsible for the realisation respectful of its competences.


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some activities of exclusive administrative matter while on the other has started a strict co-operation with the Environmental Authority and with Equal Opportunity Commission. This kind of co-ordination in its two different aspects, inside the Administration and between different sectors, has been particularly strengthened in the last few years of the preceding programming period Ob.2 and Ob. 5b.

The more significant elements have been the co-ordination role of the Service in charge of the programmes especially when there has been need of re-programming, re think strategy and proof realisation modalities of the single actions.

One of the aspects of the major innovation in programmes managing is represented by the creation of a complete informative system resulting from the different level involved in programmes realisation giving to the Region the possibility to be coherent with Community requests deriving from Reg. CE 2064/97.

From the management point of view there has been a strong intervention in sustaining a certain kind of local programming extremely linked with the territory; which means to reinforce the action of programming with the necessities of the entire territory a complex system composed by Local Authorities, Social partners. This has been achieved by the use of formal and periodical consultancy sessions.

Furthermore Tuscany can represent a good practise in terms of improvement in the relation with the final beneficiaries of the interventions. It signifies the creation of a virtuous circle of communication starting from the central regional administration passing through the regional department services until the end of the scale, the final beneficiaries. This modus agendi, can be called the partnership management.

Finally, the realised co-ordination activity represents a crucial role in the management of the programmes. It has created the condition for a major efficacy and efficiency in the realisation. The Region has been really careful in methodology definition and in functioning activity of this system.

It appears to be a really perfect implementation of co-ordination models. Nevertheless it is necessary to say that this way of action pertains principally to structural funds management even if it is a really good improvement in terms of increasing cultural innovation inside the Administration. From this point of view co-ordination between policies as sectors has been mostly achieved inside the structural funds programmes especially between environment, transport and energy.

Moreover the general management of policies is a consequence of a complex nature, the previous programming period, 1994-1999, needed a unique programming document represented by the DocUP which programmed the involvement of two structural funds FEDER and the EFS, while the present phase, 2000-2006, is characterised for the existence of two distinct programmes, DocUP Objective 2 with FEDER actions and POR which is involved in EFS activities. These data do not ease a certain type of coordination with regard to actuation policies. The synergy among the different policies is, indeed, rather difficult, the horizontal coordination between the European Commission structure, the central government and the region, on a basis of the respective organisational structures does not help, in fact, a global comprehension either in the setting or in the application of policies as well as on the contrary come out clearer on a vertical coordination level upon the territory between the administrations and the subjects involved in the development of a local territory.

More deeply what is a bit difficult is to create interaction between different programmes which are not Structural Funds. In this sense it is interesting to note that not all the CP investigated show a real and correct implementation. It is true that nowadays it is not


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possible to organise a set of interventions without considering a general Community framework. But this fact is not always verified at the implementation stage which as a result not completely homogeneous nor integrated even if in a general way it results quite well involved in the process of including policies in a general dimension instead of a particular and sectorial one. That is to say that CP, where implemented, functions in a coordinated way principally to the extent of structural policy with a necessity to better improve the co-ordination between different financed programmes.

To achieve this result it must be impede the handling of various funds to only one decisional centre in order to speed up the actualization of interventions. The programming phase pertains, in fact, on a local level – which means close to the territory – the Provinces in Tuscany have, from this point of view, a fundamental role; this framework gives concrete hope that, in the territory it would be possible to find a certain integration in the actions.

In the following table, summing up of evidence of potential synergy (S) and actual conflict (C) between the different CP as identified in Section 2 is suggested.

TAB. 5.1 CPS INTERACTION

CAP ENVIRONMENT TEN-T R&D STATE

AIDS

SINGLE

MARKET

CAP S - - S / C C

ENVIRONMENT S S /C S - -

TEN-T - S / C - - S

R&D - S - -

S / C - - - S / C

SINGLE

MARKET

C - S - S / C

-

STATE AIDS

The research realised for this case study made evidence of the Tuscan capacities in terms of co-ordination or governance and CPs implementation. Nevertheless it is necessary to underline that Tuscany has to take a step forward in the reinforcement of internal intervention instruments in order to build up a stronger regional social system by deepening the orientation through community action direction (even if community orientations have to take in a deeper consideration regional and local specificities), by reinforcing government


Tuscany contributes to the achievement of the European objectives through its characteristics, local specificities and the development of innovative systems. Managing its resources and the CPs in such a way imply the assertion of a principle like cohesion and social co-operation, environmental sustainability which already exemplify the direction of the regional strategy in a concrete European direction. Moreover this way of acting perfectly represents the European bottom down structure model: conscientiousness of the Region and Local Authorities which firstly define and than reach development objectives. The experience has even been able to strengthen civil society participation (an increase in the partnership dimension) and participation from the side of local functionaries. This process might reduce the growing division from strategic choices.


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capacities and deepening the concept of governance in a more active co-operation between Tuscan institutions and the local and social system.

The study has made clear that the necessity of economic development of the Region do not set out other kind of objectives always related with growth but of a non economic nature such as quality of life and natural and environmental resources sustainability. This is well exemplified by the existing interactions between different CPs, with particular reference to DocUP, due to the biological agriculture implementation or the strengthening of environmental issue.

One of the most interesting conclusion by the side of Structural Funds is their monetary dimension considered as too low in order to reach homogeneous objective in the entire territory because of their capacity to intervene only in a part of the territory and not in the entire Region concerned. Finally the development model should be transformed from one identified to be a sectorial policy intervention to one acknowledged as an integrated policy involvement. It seems the Region is following this direction.


A first concrete step to take could be to analyse and revise the way on European development strategies apply to different territories. Actually the European strategy of programming regional development do not take into right consideration the existing differences between different geographic areas. The Region makes clear that being an Objective 2 means to have specific development priorities which would not be connected with other regions’ different priorities. The strategic addresses for the written down of the DocUP Ob.2 could not been the same as for the POR Ob.1. This lead to the consideration that to accompany regional and local development strategic addresses must fit with the territories concerned.

However, responsibility for improvement in this area does not belong to regional authorities alone. Actions should also – and perhaps even primarily – be taken at Community

On the basis of the above analysis, a few suggestions can be proposed so as to improve the contribution of Community policies to the objective of social and economic cohesion, and to multiply the effect of the latter.

The other consideration is that the Region is assuming the possibility of intervening in the territorial system not conceding aid to the companies but by the intervention on the socio and economic contest. Specifically the Region strongly believes that is not trough the direct aids to the companies system that the investments progress would be achieved – this is not considered also the right way of attracting investments on the regional territories. The Region suggests that it would be more productive to succeed in intervening in the context improving the general condition of territorial areas in terms of environment, energy and infrastructure, creating, in this way, the best conditions of growth for the territory and characterising a better intervention of community policies upon the Region.

The focus on both Structural funds and on the quantitative aspects of policies, is a factor that could reduces the potential impact of CPs on convergence. As a matter of fact, it detracts attention from more qualitative yet crucial aspects such as the necessity to introduce better coordination between policies, both at the implementation level and in the definition of the policies’ objectives especially between those managed through Structural Funds and the others. This is a drawback that regional authorities should address through the adoption of a governance structure based on coordination as an operating principle.


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level. The opportunities offered by CPs are so numerous that they become sometimes complex to deal with. What is advisable to understand is that the equilibrium reached at a community level at this stage probably needs to be changed in order to include in its strategic addresses the real requirement of the territories.

Tuscany seems to perform very well in terms of improving its territorial development nevertheless higher standard levels could be reached whether the Commission tackled its intervention aware of the different conditions of development of the different parts of its Member States; CAP embodies an interesting point from this perspective. Moreover the Region believes that this represents a priority considering the construction of the future programming period after 2006.


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REFERENCES

• “LA TOSCANA E ’AMBIENTE - Un bilancio a dieci anni da Rio” World Summit on Sustainable Development Johannesburg (South Africa) 26 Agosto - 4 Settembre 2002 - July 2002 – Edizioni Firenze

• Innovazione Tecnologica in Toscana – Programma Regionale di Azioni Innovative – Regione Toscana 2001

• Programma Regionale di Sviluppo 2003-2005 Regione Toscana

• John Bachtler and Sandra Taylor, July 1999, “Objective 2: experiences, lessons and policy implications - FinaLl report” European Policies Research Centre Glasgow, UK

• Resco S.c.a.r.l a cura di Manuela Crescini, 2001, “L’impatto del DocUP Obiettivo 2 anni 1994 – 1996 della Regione Toscana – un’analisi ex-post degli interventi FERS”


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APENDIX

Interviews method

1 Introduction

The interviews have been realised by following a question grid structured on the bases of the main topics concerned with the study:

General questions on CPs

Coordination

Governance

Introduction

Normally an interview took from one to two hours

Follows Semi structured questionnaire utilised to manage the interviews.

2 Semi structured Questionnaire INTRODUZIONE

Terzo rapporto sulla coesione economica e sociale (in vista della riforma dei fondi strutturali).

Obiettivo: valutare se e come le Politiche Comunitarie contribuiscono alla crescita regionale (coesione tramite convergenza)

Per i case studies: 1) stima quantitativa delle PC, 2) stima qualitativa del loro contributo all’obiettivo di coesione.

Due punti d’interesse: coordinamento tra le diverse PC e governance (assetto istituzionale)

Altri effetti diversi dalla coesione

DOMANDE

2.1.1 Generali

Quali sono le PC più importanti per la convergenza della Regione (importanti dal punto di vista qualitativo e quantitativo)

Quale è l’obiettivo di ciascuna PC, e come lo si può raffrontare con quello di convergenza (per esempio politiche di R&S, PAC, ambiente e mercato unico)?

Quale è stato il contributo / l’impatto delle PC sulla convergenza sociale e/o economica della Regione (come lo si può caratterizzare? Per es. l’impatto è essenzialmente finanziario o ha anche altri effetti indiretti come nuova legislazione ecc?)


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A livello di singola PC

A livello di PC nel loro insieme

Quale è stato il loro impatto sulla coesione subregionale (NUTS III)?

2.1.2 Coordinamento

Quale è l’impatto delle PC sulla capacità della regione di generare convergenza in modo autonomo?

Quali sono stati i principali cambiamenti di 1), 2), 3), 4) e 5) durante gli ultimi 10 anni (1990-2002)?

In generale, quanto deve il “modello di sviluppo” seguito dalla Sardegna/Toscana alle PC?

Come si può apprezzare il grado di coordinamento tra le diverse PC?

Dove e a quale livello può verificarsi la mancanza di coordinamento?

Orizzontale: tra le politiche tra di loro e le istituzioni incaricate di queste politiche, o per una stessa politica, tra le amministrazioni competenti. Al livello della elaborazione, della realizzazione e dell’attuazione “sul campo”, della disseminazione dei risultati?

Verticale: tra livello regionale e comunale / locale?

E possibile che un mancato coordinamento possa risultare nella contrapposizione di due politiche, diminuendone (o annullandone) gli effetti? Quali esempi concreti? (per es. PAC e politiche regionali).

Quale è la / le ragione/i di questo(i) mancato(i) coordinamento(i)?

Cosa si potrebbe fare per migliorare il coordinamento?

2.1.3 ‘Governance’

Quale è il grado di dispersione / concentrazione delle competenze esercitate nella concezione e l’attuazione delle PC?

Quale è il grado di “de-centralizzazione” tra livelli nazionale e regionale; tra livelli regionale e sub-regionale?

Esiste una struttura amministrativa, un meccanismo formale o informale che garantisca il coordinamento tra le diverse PC? Se si, si riferisce (si giustifica) all’obiettivo di coesione?

Quale evoluzione ha caratterizzato l’attuazione delle politiche strutturali da un periodo di programmazione all’altro? Per esempio, quali cambiamenti nel percorso seguito dai fondi tra Bruxelles e la Regione? Si può parlare di un effetto di “apprendimento” (learning effect) e di miglioramento delle capacità delle amministrazioni (per. es per quanto riguarda la pratica della valutazione delle politiche pubbliche)?


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I soggetti della sfera privata (società civile ..?) vengono coinvolti nel processo di concezione, elaborazione e/o attuazione delle PC; esiste una prassi di partnership stabilita tra questi diversi soggetti coinvolti? Permette di rendere il processo più efficiente?

Qual è il grado di partecipazione privata in termini strettamente finanziari (co-finanziamento con capitali privati)?

Qual è il grado di trasparenza nella decisione e nell’applicazione delle PC? Come si può caratterizzare la comunicazione realizzata per promuovere gli obiettivi delle PC?


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- Table 1 Resident Population

- Table 2 Natural and migration balances 1995 and 1999

- Tab. 3 Demographic Indicators 1995 – 2000

- Tab. 4 Employees – Medium data 2000-2001 by sector (in thousand)

- Tab. 4.a Dependent Workers – Medium data 2000-2001 by sector (in thousand)

- Tab. 5 Manpower indicators 1998 – 2000

- Tab. 17 Agenda 21 Locale Approved projects First national call for proposal

- Tab. 18 Financial resource distribution Agenda 21 Locale

- Tab. 19 Tuscany approved Life Projects

- Tab. 20 Enterprises and employees on New Economy by population (Index number Italy=100)

- Tab. 6 Companies Indicators

- Tab. 7 Unemployment rate by Province and gender 2001

- Tab. 8 Regional GDP (Million EUROs)

- Table 9 Innovation indicatorsTab. 10 Number of Farms by surface and SAU

- Tab. 11 Territory and manpower by gender

- Tab. 12 Farm surface by using category

- Tab. 13 Agriculture surface used

- Tab. 14 Category amount of livestock

- Tab. 15 Biological farms by production and surface (SAU)

- Table 16 Community policies in Toscana, by origin of funding


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- Tab. 21 Total Amount for R&D by GDP

- Tab. 22 Total Amount for R&D of the public and private enterprises by GDP

- Tab. 23 % of enterprises that introduced innovation process or product by total number of enterprises

- Tab.24 Approved Research Project

- Tab. 25 Financial contribution for R&D project requested and obtained from the MIUR, per University and year (2000, 2001, 2002)

- Tab. 26 Financial contribution for R&D projects requested and obtained from the MIUR, per year and % of success


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ITALY:

REGION: CAMPANIA

ELABORATION:

Author: Raffaele Brancati From: MET. UNIVERSITY OF CAMERIO.


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INDEX 3 THE EFFECTS OF THE COMMUNITY POLICIES

THE COMMENTS AND THE PERSPECTIVE: A BOTTOM UP APPROACH

4 THE ECONOMY OF CAMPANIA THE REGIONAL MACROECONOMIC PICTURE THE SECTORAL DYNAMIC THE EMPLOYMENT

5 THE STRUCTURAL POLICIES OF THE EUROPEAN UNION THE CYCLE 1994-1999 A BRIEF EVALUATION OF THE STRUCTURAL FUNDS (PLANNING 94-99)

6 OTHER PROGRAMS INTERREG III EQUAL URBAN II LEADER + THE STATE AID SYSTEMS

APPENDIX


Index of tables

Figure 1: Annual rates of variation of the GDP and the internal demand (figured out on price values of 1995)

Figure 2: Evolution of the principal economic aggregates in Campania, in the South, Central-North of Italy, period 1981-2001 (variation % annual average).

Figure 3. Net imports of Campania and the South of Italy (a)

Figure 4: Annual average rates % of added value variations at basic prices (a)

Figure 5: Annual average rate % of variation of the work units

Table 1. QCS 1994-1999 of the Italian regions’ aim 1: resources of multiregional programs (POM ) devoted to Campania

Table 2 QCS 1994-1999 of the Italian regions’ aim 1: financial plan of the program POP of the Region Campania

Tab. 3: Urban and LEADER contribution


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1 THE EFFECTS OF THE COMMUNITY POLICIES

An analysis of the effects of the Community Policies about the social-economical structure of the Italian regions is not an easy task both for the methodological reasons and for the availability of information and relevant data.

The effects touch an extremely wide range of problems traceable to a few categories:

Effects of regularization, relating to the course of action through which the Community rules influence the operational conditions of the regional and national economic policy;

Effects on the governance structure of the economic and social policy and on the coordination between the different governmental levels;

“Macroeconomic” effects, including both the influences caused by the EU general policies (i.g. the Single Market or the adoption of the Euro – for the involved countries - ) and the effects of common or agreed behaviors (for example, the effects on the economical cycle traceable to the rules concerning the stability pact or the re-alignment of the economic cycles between the different member states);

Financial effects connected to the flows of expenditure which are directly linked to the Community interventions.

According to the analysis’ output, it seems evident how the simultaneous presence, (quite often concerning contiguous subjects), of multidimensional interventions drives the attention to those policies having a more relevant dimension and a stronger impact on the economy and the regional society.

The notes propose a first classification of the problems, an analysis of the grade of perception of the different aspects from the operators who has been interviewed, and a quantitative scheme on the subject, as complete as possible.

The Italian picture of the last year for the areas ob. 1 (between these, Campania has an important role since it represents the 29,6% of the population and the 28,6% of the GDP) is characterized by some essential aspects:

Strong impact of the policies for the reduction of the public debt, which are connected, at least partly, with the restrictions introduced by the European Stability Pact. The financial restrictions have produced a strong decrease of the availability of the public funds in the second half of the 90’ and in the first years of the 2000; the constraint was particularly tied for investment expenditures in the area. That has caused a growing attention from the regional policy maker to the use of the European Structural Funds and of the relevant governance rules. The impact was particularly high regarding the southern areas of Italy and Campania. In the first half of the 90’, there have been most notable flows of

The report does not intend to provide a complete analysis of the above four mentioned aspects, neither they will offer concerns and quantitative estimates on different subjects. The determination of the estimates is not possible at this stage because of the incomplete and not-scattered level of the statistical information available at the moment. The unavailability of a coherent informative framework, adequately descriptive of the territorial scale it is one of the main constraints affecting the correct accountability of the policies meant as a whole.


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expenditures towards all Southern areas, characterized by a level of accountability much modest and often with procedures and rules not fully in accordance with the European market. The attention to the Structural Funds has increased in the last years in an exponential measure. Contemporarily the respect for the rules and the fair governance mechanism has been spread

Many interviews has been made with all of the principal managers of Campania Region. (Autorità di Gestione del POR; i Resposabili dei Fondi –FESR, Tiziana Arista; FSE Carlo Neri, Feoga, Antonio Falessi-; i coordinatori di assi: oltre ai nomi citati, Alfredo Tamborlini per le attività di formazione, Alessandro Porzio per i Beni Culturali ed Ambientali, Mario Lupacchini per l’asse 1, Maria Adinolfi per Attività di Ricerca ed Innovazione, Andrea Vecchia per le attività produttive), oltre ad alcuni Assessori Regionali (G.Alois per le attività produttive, Nicolais per la ricerca e l’innovazione, Cascetta per i trasporti, Buffardi per il lavoro).

.

The situation of the public finance and the status of the International markets, has caused a depressed economic cycle that has shown deeper levels in the European member states than the average of OECD countries. Such macroeconomic background has normally a weaker impact on the weak areas (such as Campania) which are specialized in the production of consumption goods, with a lower elasticity of the demand to the income. The scheme is naturally seen in a symmetrical way, with a slower resumption in the periods of acceleration. We would like to recall that, if we pass from a macro vision to a micro one, the few firms with a specialization in innovative activities that do exist in the weaker areas, are forced to work in an extremely difficult context and suffer higher risks to become insolvent in moments of demand crisis. Their risk of having them declaring is even higher given that the most modern sectors are lacking in the entrepreneurial and technological resources.

The combination of the choices of governance for the management of the European policies and the lines of the implemented institutional reforms has caused a change of the governmental level of reference for the development policy in Italy in a few years. Today, the institutional level is any doubt the level NUTS II. The contemporary election reform which has reinforced the power of the executive of the regional governments, is another contribute to consolidate the described tendency.

The effects of the Community rules are much differentiated for the various forms of intervention. With regards to the state aids for the support of SMEs, there was an accelerated process of reduction of the intensity beside to the introduction of administrative processes, which are more transparent and pleasant for the operators; in the infrastructure sector the strong restrictions and the expected severity have caused a trend to works with a quicker planning and realization, that do not always clash with the more useful ones.

In the ’90, with a faster rhythm beginning in 1998, many important institutional reforms have been introduced in Italy in the economic sector ascribing to the Regions the prevalent responsibility of the development policies. In southern areas such aspect – together with the operational implications of defining new forms of intervention, new instruments and a new governance process – has been combined with the above mentioned point 1 relating to the rising importance of the Structural Funds. It also has caused an adoption of the systems of the European Fund as standardized forms. This can be read as an approximation and a tendency, less than a generalized reality, nevertheless, the effect certainly was and still is significant.

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The results of the interviews can be presented schematically:

We can affirm that the perceived importance and the attention of all operators to the Community policies have registered a notable increase. This seems to be caused by two prevalent reasons. First of all, there are the aspects of the institutional reform (the modifications of the competence of the ons were introduced with the decrees 112 and 113 in 1998 – the so-called Bassanini decrees – and afterwards extended and consolidated with the reform process of the Constitution) which were partly anticipated by the adoption of the rules of the community funds in the last planning cycle in Italy have been managed. The research of a new and more incisive way of management of the regional development policy has found a significant support in the community rules. Secondly, the balance restrictions, introduced in order to control the public deficit and to respect the Stability Pact, transform the Structural Funds (together with the related co-financing) to the most important resource for the development policy of the Regions Ob.1.

The coordination between the community interventions and the general structural policies, is considered by all operators the essential element. Referring to this, we wish to underline that while such coordination in the last years was mainly an instrumental approach aimed at the use of consistent projects and their expenditure certification, recently the coordination research touches functional questions of efficiency and correct allocation of short resources.

Regi

The effects of the PIC (like Interreg III, Equal, Urban II, Leader+) are not only perceived on regional level, but also modestly on a financial level. They cannot determine specific orientations of the operator’s policies and behaviors. The effects seem to be effectively noticeable and perceived only if the intervention is strongly concentrated on a modest territorial level and if there is a coherence between the problem dimension and the interventions. In a much populated area as Campania, and with big urban aggregations (the metropolitan area Campania-Salerno is the biggest in whole Italy), it does not always happen: in the case of the program Leader and the rural interventions on local level, it seems that the efficacy has depended on the integration of interventions which are promoted by territorial social forces. Another efficient way regarding the use of little programs in a big area as Campania is the integration of the PIC interventions in the wider projects which are integrated in the structural funds.

The governance of the structural funds has been used like a picklock for a real change of the administrative summits. It is a question of persons with a high competency, with contractual methods that have significant incentive mechanisms, and, especially, with a clear vision of the results which are basically for the evaluation of their work.

The change is determinate by at least two fundamental reasons: the negative press impact because of the management problems during the cycle 1994-1999, and the political change of the regional council, that has taken place just in the crucial moment of the new POR 2000-2006 start.

The principal effort of the first two years, largely successful, has tried to arrange the procedures and to control the processes of the administrative plan. The success of such effort can be measured by the result of the Board of Control, the Economic Ministry’s judgement and the attribution of additional premium funds, which have been assigned in significant measure to Campania.

The problem of the still weak economic monitoring certainly remains (particularly relative to the objectives).


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The strong improvement of the regional governance, together with the choice to aim at the development measures that are oriented to the integration between the interventions on territorial base, makes clear the significant severity that the rules of the Structural Funds require.

First of all, the FEOGA and the SFOP seem to represent a framework of rules and mechanisms which create difficulties to the flexibility that is required by the modern economic needs. Besides the relative inefficiencies we have to note how the fixation for severe principles can bring forth contradictions that penalize (for example the definition of standards, if applied to specific cases, can bring forth outsize interventions even with problems of environmental impact).

Secondly, the programmed timing of the structural funds is an implicit award for policies which are not very innovative (but feasible in short time) or for interventions which are already integrated in the current activities (for example, big infrastructure programs). Such limit becomes much relevant if the balance restrictions do not allow the availability of other significant resources for development programs.

The presented picture for the area Campania put two questions.

The second question refers to the general influence the European Union has also on the regional policies –besides the specific programs. The European Union has such influence through two different channels momentary dominant: the channel of the balance restrictions and the rule channel.

The development policies, as all the capital expenditures, are more than others subjects of reduction in the stages in which the public balance restriction is more pressing (Stability Pact).

The definition of severe administrative rules, the necessity of accountability and evaluation of the results, which the areas are forced to respect due to the structural funds, will be confirmed as general standards of the administration.

We briefly can back up, that the perception of the effects of the community policies on the macroeconomic and financial level shows opposite signs: the decrease of the available resources got from the restrictive policies, which are partly a product of the higher severity of the balance policy that has been imposed by the Stability Pact, has been accompanied by a growing weight of the European Funds for Development. With regards to the governance level, the introduction of planning methods, monitoring and evaluation has been spread (the previous situation was much worse) with an accountability much reinforced and a strong coordination push. The impact of the community mechanism on the governance’s rules of Campania has reached an almost complete efficacy: the whole process that has been adopted by the administrative machine for the development policies is adjusted, or tries to be adjusted quickly, to the European process. That process does not certainly take place without risks, as the orientation of the administrations to useless severity and to not always useful processes for the development.

The first refers to the expenditure and to its dimension: predominantly, the development policies, in particular in the weak areas, are co-financed by community programs; such presence tends to influence and orient also all the National and Regional policies with frequent cross-fertilizations.


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2 THE ECONOMY OF CAMPANIA

THE REGIONAL MACROECONOMIC PICTURE

In all the years as from 1996 to 2001, accordingly to the data of figure 1, the economy of Campania has grown with an average annual rate of 1,9%, which is a rate near to the national average: two tenth under the average of Southern Italy, and one tenth above the average of Central-North Italy. Such alignment means an important dynamic improvement for the area, in particular if we confront that result with the (not only) cyclical deterioration Campania has suffered in the first half of the ’90 much more intensively than the other southern areas of Italy. Anyway, the recent dynamic is too new to be able to sign a consolidated tendency to reduce the economic gap between Campania and the most developed areas of Italy.


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Figure 1: annual rates of variation of the gdp and the internal demand (figured out on price values of 1995)

Aggregates 1996 1997 1998 1999 2000 2001 1996-2001 ANNUAL

AVERAGE CAMPANIA

Gdp -0,4 2,7 1,9 3,9 2,7 0,9 12,0 Net imports -1,8 6,8 5,2

CUMULATIVE

1,7

-0,7 -0,4 1,3 -0,7 8,3 Internal demand -0,5 3,1 3,3 11,4 1,5 2,3 1,3 1,8 Internal demand (as net of stock variation)

0,2 2,9 3,2 3,4 1,5 1,1 2,0 12,8

Final internal consumption 0,3 2,0 1,7 1,1 11,2 3,1 2,6 1,8

3,3

- Expenditure for final consumption pi and ppaa

1,0 -1,0 -0,2 0,4 1,6 2,6 0,4

- Expenditure for final family consumption pi

4,6 4,6 4,9

-Expenditure for final family consumption ppaa

1,0 -1,1 -0,3 0,8 1,6 0,4 2,3

Fixed gross investments -0,4 7,4 3,8 7,7 3,2 -2,0 3,1 20,9

ITALY 1,9

17,1 -19,4 -44,4 -85,9 251,7 -15,8 -64,5 36,8

- Expenditure for final family consumption

3,2 1,0 14,6 0,0 4,3 2,1 2,3

0,8

7,1 5,9 2,3 4,9 33,2

0,4

Gdp 1,1 2,0 1,6 2,9 1,8 11,7 1,8 Net imports Total 0,6 2,7 3,0 2,8 2,4 1,5 2,2 13,9 Final internal consumption 0,9 12,5 2,6 2,4 2,0 2,8 2,0

0,8 3,3 3,0 3,1 1,0 2,2

- Expenditure for final consumption pi and ppaa

1,1 0,3 1,4 1,7 7,3

3,4 4,0

1,3

- Expenditure for final family consumption

2,2 14,1

0,3 2,3 1,2

- Expenditure for final consumption pi

4,9 5,2 4,1 3,2 4,1 27,5

- Expenditure for final consumption ppaa

1,0 0,2 0,2 1,3 1,7 2,2 1,1 6,8

Fixed gross investments 3,6 2,1 5,7 6,5 2,4 4,0 26,7

The data of figure 2 demonstrate the diversities in the cyclical economic evolution of

Campania and the two Italian areas, in a longer analysis period, taking also into consideration a confrontation between the economic cycles and the trends of the ’80 and the ’90.

The economy of Campania did not suffer the downswing of the period 1981-1983, because of the high consumer demand and an accumulation dynamic, that seems not to be much involved in the cyclic drop which had hit in that period the South of Italy and, even more intensively, the Central-North of Italy. However, during the downswing of the period 1992-1993, the effects of the drop in the external and internal demand has accompanied the effects of the containment of the public expenses which has been imposed by the European convergence process. Contemporarily, the reduction of the extraordinary intervention for the

4,0


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southern areas (D.L. 96, April 1993) has contributed to the harsh drop in the investments, which has particularly damaged the southern area. In the following recovery period 1994-1995, the recovery of the Campania’s and the other southern area’s economy remained limited. Those areas, due to the less degree of international opening, could draw only limited benefits from the rise in the external demand, following to the depreciation of the Lira. The economic result for Campania is quite negative with zero growth of the product in the period’s average and a marked drop in the net imports, accompanied by a drop in the accumulation process: the investments have fallen at 9,8% in the annual average, against a drop of 6,9% in the other southern areas and of 0,3% in Central-North of Italy.

Figure 2: evolution of the principal economic aggregates in campania, in the south, central-north of italy, period 1981-2001 (variation % annual average). Aggregates 1981-83 (A) 1984-91 (A) 1992-95 (A) 1996-01 (B)

CAMPANIA Gdp 2,2 2,2 0,0 1,9 Net imports 0,4 7,7 -10,3 1,3 Total 2,0 2,9 -1,4 1,8 Final internal consumption 1,9 3,0 0,3 1,8 Expenditure for final family consumption 1,5 3,3 0,1 2,3 Expenditure for final consumption of pi (c) 2,8 2,3 0,9 0,4 Fixed gross investments 4,2 -9,8 2,2 3,2

SOUTH Gdp 2,5 0,2 2,1

1,7 -8,2 1,9 Total 1,5 Final internal consumption 2,1 3,2 0,2 Expenditure for final family consumption 1,8 3,4 0,2 2,1 Expenditure for final consumption of pi (c) 2,8 2,4 0,4 1,0

-0,2 1,9 -6,9 4,3 CENTRAL-

NORTH

Gdp 0,5

1,4 Net imports 5,1

2,9 2,0 -1,0 1,8

Fixed gross investments

2,7 1,4 1,8 Net imports 14,6 -2,3 17,1 -3,6 Total -0,4 3,1 2,2 Final internal consumption 2,9 0,4 2,1 Expenditure for final family consumption 0,9 3,1 2,3 Expenditure for final consumption of pi (c) 2,0 -0,2 1,3

0,3 1,2

0,6 2,4

Fixed gross investments -4,2 3,8 -0,3 3,9 (A) ) in accordance with the monitoring data of the old accountability sec79 (B) in accordance with the monitoring data of the new accountability sec95 C) in the old accountability scheme sec79, the final consumption consists o two classes: the family consumption

and the collective consumption; in the new scheme sec95 the gathered consumption classified within the collective consumption category are now defined: public administration (ppaa) and private institution (pi) consumption

In the period 1984-1991 Campania had benefited a short phase of economic recovery, even though in a limited measure in comparison with the average values of the big districts; as for all the southern areas, the growth in that period was mainly supported by expansion of the consumption. The high increase of the net imports in the area (+7,7% as annual average, against 5,5% in the whole South) is the effect of the current transfers, which have supported such dynamic.

( f


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During the recent recovery (1996-2001), the economic expansion has a much different character. The increase is a result of a consistent recovery of the accumulation process and a modest, but significant increase of the external demand, accompanied by a limited evolution of the current public expenditure and the consumption. The consumption has grown in Campania for 1,8% as annual average in the last six years against an increase of investments of 3,2%. As for the previous expansion cycle of the second half of the ’80, the increase of the aggregated demand (1,8%) was possible due to a net import increase, even though that increase was much more limited than in the past: 1,3% as annual average compared with the 7,7% of the period 1984-1991 (figure 2). In the second half of the ’90, the programmed support measures for the economic development in the sphere of the new intervention policy seem to influence positively the recovery of the investment in Campania, with a limited, but positive tendency also for the external investments to the area.

In that more recent period, the demand composition therefore seems to be more consonant regarding a recovery prospective of a relative competitive position and a revival of a desirable process of convergence. The registered positive signs of the expansive cycle of 1996-2000 in the region must not induce to underestimate the elements of relative weakness. As the data of figure 2 show, Campania has experimented a less dynamic of the accumulation process than the rest of the southern areas, in accordance with a minor importance of the external transfers.

Figure 3. Net imports of campania and the south of italy (a) Years IN % OF THE GDP IN % OF THE AVAILABLE

RESOURCES SOUTH CAMPANIA SOUTH

1995 17,0 14,5 14,5 1996 15,7 13,0 13,6 1997

CAMPANIA 17,0 15,0 15,0 16,3 13,1 14,0

1998 14,7 16,8 12,8 14,4 1999 15,2 16,5 13,2 14,2 2000 16,8 18,0 14,4 2001 15,7 16,9 13,6 14,4

THE SECTORAL DYNAMIC

In the period 1996-2001, the economy of Campania grows for the 2,0% as annual average. The result, the same in the whole southern area, was possible due to a most satisfactory trend in the agriculture sector (+1,3% against the 0,4% of the southern areas) and in the building sector (+1,3% against +1,0%) (see figure 4). A more homogenous dynamic in comparison with the whole southern area can be pointed out for the whole added value of the services (the clashed annual average increases have a value of 2,3%). Also the elements of the service sector (trade, financial services, industrial services, others) show a relative alignment of the growth rates between Campania and the southern area; furthermore it is noticeable that such rates, relative to the financial and industrial services are significantly below the registered values of the central and northern areas (+2,8% against the 3,2% of the average in the period 1996-2001, with a lead in the acceleration in the most recent years).

But the most significant difference between Campania and the rest of the southern area, relative to the economic evolution, is the manufacturing industrial dynamic (with the exception of the years 1997 and 1999); the lower contribute of such element has been particularly noticed in the recent years 2000-2001, when Campania has registered a substantial stagnation in comparison with the southern areas’ average. In the period 1996-

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2001, the average increase of the added industrial value in Campania ceases at a value of 0,5%, against the 1,4% of the southern areas and the 1% of the central and north areas.

Figure 4: annual average rates % of added value variations at basic prices (a) Sector of activities 1996 1997 1998 1999 2001 1996-2001

Annual average

Cumulative

-1,0 10,4 3,3 0,4 1,3 8,3

Industry -3,4 5,1 -1,7 1,9 1,5 0,7 4,4 industry (manufacturing) -3,7 4,6 1,8 0,3 0,5 3,1

building trade -2,4 -3,7 5,0 8,1 6,9 2,1 1,3 3,4 2,0 14,9

trade, reparation, gastronomy, transport and communication

-2,0 0,8 5,1 3,6

monetary and financial services, immovable and entrepreneurial activities

4,7 6,7 1,6 -0,9 0,5

Campania Agriculture, forestry and fisheries

-2,2

-1,0

Services 1,4 4,0 0,0 2,3 4,4 7,8 23,5

2,8 18,1

other services 1,5 1,1 4,3 1,2 0,0 0,3 0,7 Value added (including financial services)

1,8 0,2 4,0 2,5 0,5 2,0 12,3

South Agriculture, forestry and fisheries

-1,6 5,4 -0,4 7,5 -2,8 0,4

Industry -1,8

2,5

2,3 -0,7 1,9 3,0 1,3 7,9 industry (manufacturing) -2,3 2,9 0,9 1,2 2,1 1,4 8,6

building trade -0,7 0,8 -4,7 3,7 5,7 1,0 6,3 Services 1,5 2,7 2,9 0,9 2,5 2,3 14,7 trade, reparation, gastronomy, transport and communication

-0,4 3,5 5,8 1,1 4,3


3,2 4,1 1,9 1,4 2,0 2,8

1,8 0,9 1,3 0,3 1,1 0,9 Value added (including financial services)

0,6 2,8 1,9 1,5 2,3 2,0

central- North Agriculture, forestry and fisheries

4,2 -1,5 0,1 8,3 2,2 4,7 1,3

Industry -0,3 1,6 1,9 0,3 7,1 0,9 1,2 -1,4 2,5 0,3 1,0 6,3

6,0 1,7 3,9 1,9 11,8 Services 1,9 1,7 1,6 1,6 2,5 2,2 13,7 trade, reparation, gastronomy, transport and communication

0,9 2,0 1,8 12,6 0,7 2,6 2,0

3,4 21,9

18,2

other services 5,3 12,5

industry (manufacturing) 1,9 0,3

building trade -2,9 0,2


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3,2 2,2 2,1 2,8 3,2 3,2 20,5

other services 1,8 0,8 0,8 1,2 1,1 0,9 5,6 1,3 1,7 1,2 1,9 11,4

(a) in accordance with price values 1995

Value added (including financial services)

1,6 1,8

THE EMPLOYMENT

In the year 2001, the employment in Campania, estimated in standard work units, has passed an accelerated increase - compared with the previous year (0,8%) - of 1,8% (see tab.5).

The acceleration of the employment dynamic in Campania was stronger (from 0,8% in 2000 to 1,8% in 2001) than in the rest of the southern areas (from 1,7% to 2,1%), despite the slowdown of the economic growth. That acceleration can be firstly lead back to the broader time lag that the region traditionally presents (as the rest of the South of Italy) in comparison with the cyclical trend of the world-wide economy. The time lag is caused to the lower employment quota in the sectors that suffer competition and external market disturbances (manufacturing industry and tradable services). Secondly, the acceleration can be attributed to the increase of the employment’s elasticity relative to the GDP, that is connected with a estimated higher incisiveness of the interventions of the employment policy which is specifically addressed to the southern areas.

The growth of the employment has been observed in the sectors with a lower relative output and with an internal market orientation, as the trade, the transports and the communications (3,9% after 2,2%), the agriculture (1,9% from –8,3% in the year 2000) and “the other services”, mainly non market (from 0,6% to 1,4%). On contrary, a decline of the employment has been observed in the year 2001 in all the other sectors, in particular in the manufacturing industry (-0,5% after -0,7% in the previous year), in the financial services – a sign of the particularly difficult situation of the regional credit sector – and in the sectors that are directly involved in the firms’ activities: those sectors have suffered a decline of the employment of 0,3%, after a growth of 3,4% in the year 2000.

In the period between 1996 and 2001, the regional employment has grown at a rate of 0,9% as annual average, like the whole North of Italy.


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Figure 5: annual average rate % of variation of the work units Sectors of activity 1996 1997 1998 1999 2001 1996-2001

Annual average

Agriculture, forestry and fisheries -6,9 -2,3 -1,1 -8,9 1,9 -4,4 Industry -3,2 1,9 0,8 -0,3 1,1 0,2 industry (manufacturing) -3,4 2,1 0,8 0,8 -0,5 -0,2 building trade -2,6 1,6 0,8 -2,9 4,7 1,2 Services 1,2 2,1 1,6 3,1 0,8 1,7 trade, reparation, gastronomy, transport and communication

1,1 0,9 3,9 1,0 3,9 2,2


4,2 5,0 6,3 -0,3 2,3 3,5

other services 0,3 0,9 1,4 0,1 1,4 0,8 Value added (including financial services)

-0,6 1,3 2,2 -0,3 1,8 0,9

South Agriculture, forestry and fisheries -5,4 -2,8 -3,5 -5,4 1,5 -2,9 Industry -2,2 1,6 0,6 0,4 2,3 0,8 industry (manufacturing) -2,5 1,3 1,8 0,8 0,6 0,4 building trade -1,7 2,2 -1,6 -0,3 5,6 1,4 Services 1,3 0,6 2,3 0,9 2,1 1,6 trade, reparation, gastronomy, transport and communication

1,0 0,1 3,1 1,0 2,8 1,8


4,9 4,6 5,1 3,0 2,7 4,3

0,4 0,8 0,0 1,2 Value added (including financial services)

-0,3 0,4 1,3 0,1 2,1 0,9

Central-north

Agriculture, forestry and fisheries -3,3 -2,7 -4,2 -4,9 0,0 -2,9 Industry -0,8 1,3 0,2 -0,1 0,3 0,2

-0,8 2,0 -0,6 -0,1 building trade -0,7 1,3 -1,7 3,4 3,8 1,3 Services 1,6 0,7 1,1 2,1 2,0 1,7 trade, reparation, gastronomy, transport and communication

0,9 0,2 1,0 1,3 1,5 1,3

4,2 4,7 3,1 5,7 4,2 4,6

1,1 -0,5 0,1 1,0 1,4 0,7 Value added (including financial services)

0,6 0,4 0,9 1,0 1,4

Campania

other services -0,3 0,4

industry (manufacturing) -0,1 -1,0


other services 1,0


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3 THE STRUCTURAL POLICIES OF THE EUROPEAN UNION

THE CYCLE 1994-1999

In the cycle 1994-1999, the interventions relative to the territory of Campania have mobilized public resources of more than 6.400 Millions of Euro: 3.100 Millions for the Programma Operativo Plurifondo (POP) of Campania 1994-1999, and about 3.300 Millions for the Programmi Operativi Multiregionali (POM), controlled by the central administrations. Those programs are the two predominant forms of the co-financed intervention for community programs concerning Campania.

The regional division of the data of the multi-regional operational programs (made by independent evaluators of QCS), estimates the resources destined to Campania in 3.328 Millions of Euro, equal to the 26% of the whole national POM. The distribution of the resources are reported in figure 1.

With reference to the programs under the direct responsibility of Campania, the POP 1994-1999 has individuated in the infrastructure expansion, the modernization of the production structures, the development of the non-traditional sectors and the improvement of the quality of live its general objectives. In the beginning, the financial plan of the program has mainly supported the axis 5 (infrastructure in support of the economic activities) and 4 (rural development and fisheries), respectively with 24% and 21% (figure 2).

Table 1. Qcs 1994-1999 of the italian regions’ aim 1: Resources of multiregional programs (pom ) devoted to campania Program ABSOLUTE VALUES

(IN MILLIONS OF EURO)

% OF THE WHOLE NATIONAL POM

Water resources 328,85 22 Energy 29,17 6 Civil guard 70,13 52 Security 55,85 19 Streets 163,81 33 Railways 479,65 24 Airports 2,27 21 Telecommunication 305,09 26 Sfop ob.1 15,70 7 Tourism 43,72 20 Industry 1409,62 28 Research and development 251,44 37 Territorial pacts 60,09 26 Valuation of agrarian products

32,78 27

Services for the agrarian development

26,00 11

Total 3.328,16 26


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Table 2 qcs 1994-1999 of the italian regions’ aim 1: financial plan of the program pop of the region campania Axes PUBLIC RESOURCES PRIVATE

RESOURCES TOTAL

EU FUNDS NATIONAL FUNDS

ABSOLUTE VALUES (IN MILLIONS OF EURO)

1. Communication 198,22 198,22 141,92 538,36 2. Industry and handicraft 93,17 93,17 150,47 336,8 3. Tourism 158,70 158,70 170,52 487,92 4. Rural development and fisheries

331,47 186,79 133,48 651,75

5. Infrastructure for the support of economic activities

293,92 293,92 169,67 757,52

6. Valuation of human resources

241,77 77,75 8,16 327,73

7. Carrying out 5,03 2,15 0 7,18 Pop campania 1.322,28 1.010,70 774,23 3.107,26 Total pop area 7.359,40 4.972,36 2.632,09 14.963,86 Total qcs 15.265,53 10.460,42 5.481,86 31.207,83

PERCENTAGE

1. Communication 36,82 36,82 26,36 100,00 2. Industry and handicraft 27,66 27,66 44,67 100,00 3. Tourism 32,53 32,53 34,95 100,00 4. Rural development and fisheries

50,86 28,66 20,48 100,00

5. Infrastructure for the support of economic activities

38,8 38,8 22,40 100,00

6. Valuation of human resources

73,77 23,72 2,49 100,00

7. Carrying out 70,00 30,00 0 100,00 Pop campania 42,55 32,53 24,92 100,00 Total pop area 49,18 17,59 100,00 33,23 Total qcs 48,92 33,52 17,57 100,00

The sharing rate of the private sector relative to the total of the POP resources Campania has touched the 25%, 7 per cent points over the average of QCS’s aim 1 and the whole regional POP: the most elevated rates refer to axis 2 (industry and handicraft), 3 (tourism) and 5 (infrastructure for the support of the economic activities). Also the agriculture sector has a private sharing rate over 20% (axis 4).

During the carrying out, the program has suffered relevant modifications – as has happened to all the National and Regional programs. Because of the bad financial performances it was necessary to re-plan, as well as to turn to projects already financed and focused on the same goals and the overbooking of engagements. The overall result is the increase of the financial supply of those axes/asse that seemed to guarantee the strongest use of the community funds – as axis 1 (communications) that has risen for 17%, axis 2 (industry and handicraft) with an increase of 8,% and axis 3 (tourism) with an increase of 22% - and the reduction of the funds in axis 5 (infrastructure for the support of economic


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activities), reduced for almost 15%. The cuts also concerned the funds of axis 6 (valuation of human resources), that is financed by the European Social Fund (ESF). That axis has suffered two successive reductions in the last cycle 1994-1999: all the elements of the axis have suffered consistent cuts, except the long-term aid interventions for unemployed persons, that have doubled their financial resources. The rural development axis (axis 4) could substantially increase its resources (even though that axis is the only that registers a suppression in an initially excepted measure). The promotion of agrarian production has registered the highest increase: its funds have increased by 700%.

Following to the substantial interventions of re-planning due to the logic to use all the available financial resources of the community budget, it is obvious that the original plan has survived at the end of the period only in parts – this is valid for the whole planning relative to the cycle 1994-1999 and not only for Campania

3.1.1 Development in Campania

The late development of the regional POP have originally two causes: the late approval of the program from the European Commission, that has intervened only in November 1995, and the choice of the regional government to set up the program through a tender procedure, both for the support of the firms and the individuation of the final beneficiaries of the infrastructure interventions. The use of tender procedures for the infrastructure work is on the one hand, due to the possibility to guarantee transparence in the selection process and to constitute an important regional “stock of projects ”, positive. On the other hand there is in the beginning phase a delay in the development of the expenditures, because of the numbers of the projects and the complexity of the selection process. Only in the period 1998-1999, it was possible to speed up the procedure. With regards to the state aids (in particular tourism and scientific research), after a initial phase that has been characterized by the slowness of the evaluation procedures, those evaluation procedures have been speeded up in the last two planning years due to the introduction of automatic elements. The acceleration in the most recent period has allowed to work the engagements in the planning period out, with an overbooking of more than 280 Millions of Euro.

The development of the measures in the environmental area has been characterized by particular difficulties, especially relative to the waste disposal and the treatment of the waste (measure 5.3.2.). The development of the regional plan has suffered a delay due to the late approval (obtained only during the year 1997) and the nomination of a government Commissioner. The expectation of actions that program the participation of private resources (project financing), has furthermore positive effects on the control of the public financial requirement, but negative effects on the carrying out swiftness.

All those elements have caused the reduction of the public fund devoted to this measure from 200 Millions of Euro to 81 Millions of Euro. The re-planned allocations has been assigned within the expiry date, December 31st, 1999.

Another critical axis is the valuation of the human resources. The development delays in this axis have forced a drastic reduction of the financial funds, from 471 Millions of Euro to 326 Millions of Euro (all of them assigned within the expiry date). Such difficulties are mainly due to shortages which are relative to the lack of information about the demand for specific skills, the process of planning, the management and the coordination of the regional structures that are active in the sector, the structure and the organization of the regional formative systems. Some of those subjects, which are particularly critical in an area with huge unemployment problems, have been tackled and partly resolved with the re-planning during 1999: due to innovative actions and new procedural methods the demand for vocational training has notably grown. Particular attention has been applied to the training with juveniles and their insertion on the work front: relative to this we wish to underline the actions in the information technology sector, finalized to the training of 600 juveniles. More


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than half of them has found a job at the end of the training course. Another successful action, part of the high level vocational training, was addressed to graduates and has allowed the participation of almost 2000 juveniles. In that training course high schools, universities and firms have worked side by side. The change of the training system that takes strongly into consideration the economic and productive requirements, has shown in the recent period significant results in the fight against unemployment.

The programs PO “Pianura” and the two Sovvenzioni Globali (SG) ”Zootecnica” and “Banca Provincia di Napoli” complete the analysis of the QCS’ carrying out in Campania. Those are modest interventions (the funds do not reach 170 Millions of Euro). The resources were assigned with the expiry date, December 31st, 1999, but the payments registered significant problems.

A BRIEF EVALUATION OF THE STRUCTURAL FUNDS (PLANNING 94-99)

An overall evaluation of the results of the planning 1994-1999 is still not possible, due to the belated accounting records of the programs’ “closing”, which have to be completed – in accordance with the procedures– within the six month following to the conclusion of the planning period. The Ministry of Economics and Finance was convinced of a notable and marked acceleration of the payments in the last three-month period and therefore confident to be able to contain the lost community fund contributions within the 5-6% of the assigned resources. If that rate is also considered frictional, we wish like to recall that every lost per cent of the community contribution is equivalent to 318 Millions of Euro.

With regards to Campania, it is opportune to refer to the conclusions the regional authority has drawn from the experiences 1994-1999 for the preparation of the planning for the cycle 2000-2006:

“The POP development of 1994-1999 provides useful elements of reflection even if detailed evaluation reports were missing, which permit to get useful information for the planning period 2000-2006. Since the efficacy of the program’s development has been much criticized, corrections will be necessary in order to guarantee the fast setting up and the effective management of the POR 2000-2006.

The division of the competencies has to be clearly defined; the missed identification of the responsible persons during the whole period has much conditioned the development of the program;

The unrealized reform of the public administration is a further restrictive element, that has to be changed in order to guarantee development efficacy of the POR. This through a more complete use of the executive actions and, generally, more simple methods which can reduce the procedure times.;

The monitoring and evaluation system has to be implemented more effectively by utilizing the experiences and instruments the Region has used, although belated, for the monitoring of the POP 19994-1999.”


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4 OTHER PROGRAMS

The other community programs which the Region Campania has applied, have had, as described, a modest impact in comparison with the POP 1994-1999 and the POP 2000-2006 that is being applied.

The consideration have still a mainly qualitative character (with few exceptions), due to the extreme difficulties to obtain analytical data and information.

As described, the interviewed people has judged the efficacy according to substantially two criteria: the integration level with other policies (on the one hand such integration rise the possibility of efficacy, on the other hand reduce the possibility to isolate the effects of more little programs) and the possibility to define little interventions for limited geographical area (as for the rural areas for the LEADER).

The coherence between resources and aims for more modest programs seems to be in big areas with big and complex problems as Campania not always easy.

Follows a description of the principal activities of various programs.

INTERREG III

Through the participation at the program “Cooperazione Transnazionale” (section B), Campania has access to the available funds of the Community Initiative Interreg III.

The presented projects are defined by the National authorities in collaboration with the regional authorities and in accordance with the excepted aims and procedures. The projects have the following priorities:

- Operational strategy processing of territorial development on transnational level, including the cooperation between towns, urban and rural areas, in order to promote a sustainable policentric development;

- Promotion of efficient and sustainable transport systems, improvement of the access to the information society;

- Promotion of the environment and good management of the cultural heritage and the natural resources, in particular the water resources;

- Promotion of the integration of the coastal regions with the islands by giving to each of them a specific and adequate financial supply;

- Promotion of the integrated cooperation of the peripheral areas.

We can say that the focus of regional policies is on the integration between various instruments. This is more evident in the field of transport infrastructures and the valuation of cultural heritage.


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EQUAL

The main activities (widely integrated in the much more important activities of the FSE and the POR) are addressed to the following areas in Campania:

• Support of the immigrants

• Insertion on the work front

• Jobs relative to the environment

• Development of the social business

• Emergence of the illicit work

• General equal opportunities

Almost all those activities can be read as parallel strategies to the programmed POR strategies of the European Social Fund.

URBAN II

Urban II interventions in Campania are programmed only for the area Caserta, while the previous period 1994-1999 has set up interventions only in Naples.

The selected area for the interventions in Caserta is separated from the town centre by the railway. It is an expansive area from the nineteenth-and twentieth century, with old complexes, a big working-class area and characterized by diffusion of micro enterprises that have gradually filled the desert areas and the abandoned industrial territories as well as embraced the completely open agrarian territory. The whole area depends furthermore on a substantially nineteenth-century infrastructure that today is juxtaposed, without a sectoral logic, by railway and highway structures.

Although the nearness to the town centre, that part of the city has sheer suburb’s characteristics, with problems relative to the social-economic condition of the habitants who consider themselves, and are considered, suburban people.

The area is substantially a perfect example of the phenomenon of spontaneous process of marginalization that is in many contemporary cities in progress, where the regressive process of the area is attractive for socially disadvantaged and outcast persons which nourish such non-identity.

Such area has been chosen for the sake of the considerable factors of socio-economic decay as poverty (public social and economic subsidies), social alienation (presence of immigrants, ethnic groups and minorities that live in difficult work and home conditions), unemployment and a high rate of school abandonment as well as considerable signs of environmental decay. Further causes are its strategic collocation relative to the urban dynamics in progress which are favored by such instruments as, for instance, il Piano di Sviluppo Socio Economico della Provincia di Caserta, il Patto Territoriale di Caserta, il PRUSST, il Piano di Recupero del Centro Storico, il Programma Integrato per il recupero del quartiere Santella, l’Accordo di Programma Quadro in materia di Beni ed Attività Culturali tra


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il Ministero e la Regione Campania, il Protocollo d’Intesa per il recupero dell’area dismessa ex Saint Gobain.

A new vitality of the area could be therefore a factor that rebalance the whole urban structure. The rehabilitation of the material and immaterial relationships between the different quarters that are involved in specific projects, would restitute to the city one of the most significant areas.

In particular:

to improve the urban traffic and the communications with the principal poles of the area (Reggia, Centro Storico, area dismessa ex Saint Gobain, centro di servizi di S. Benedetto, nuovo Policlinico dell’Università degli Studi di Napoli Federico II), the PIC programs a rehabilitation of the historical road map, the realization of new bicycle roads and the reconditioning of the public transports, the realization of parking areas along the principal area routes viale delle Libertà, via Ferrarecce, via Acquaviva, for intermodal connections. Such a strategy contributes furthermore to the environmental improvement conditions since the rehabilitation of the historical road map helps to redevelop the present network and to reduce therefore the waste, as well as to improve the efficiency. The use of ecological public transports supports the reduction of the main pollution factors;

to support the economic development and to realize new job possibilities, the PIC programs the support of the present productive activities to favor processes of reinsertion on the work front, the support of the development of new technologies of the information society in order to reach a high competition level on transnational markets. For that purpose the PIC programs the realization of an informatic centre for employment services, for the training and the orientation relative the identification of new entrepreneurial opportunities.

to favor the social integration and the integration on the work front of disadvantaged groups, the PIC programs the realization of new facilities and initiatives for the improvement of the supply of social services, favoring processes of insertions on the work front and the organization of initiatives that promote the diffusion of the multiethnic cultural heritage. For the purpose the PIC programs the realization of a socio-cultural centre that will install some administrative services, set-up intercultural contacts and mediations, develop nets of auto-support to rise social solidarity, and offer support for cultural activities to get over racial prejudices. The PIC programs furthermore the realization of actions oriented to social services through integrated courses of counselling, orientation, training and insertion on the work front, insertion in training courses, training and assistance relative to creation of new firms, in particular in the social economy;

to improve the environmental quality, the PIC programs the realization of several public squares with adequate equipment and specific subjects and the identification of possible management methods through the support of the social entrepreneurial class, the support of separated waste disposal and the realization of an environmental study in the area S. Clemente. Such centre will train new professional persons in the area of pollution control and collect an adequate data base relative to the ecological status in order to develop projects and to manage in future adequately the resources. At least, an adequate campaign of sensibilization will be able to support those activities and to contribute to the rise of knowledge of the technological possibilities to reduce consumption and the use of renewable energies. Such campaign will furthermore support the acceptance of planned measures for the improvement of the traffic in that area and contribute to the reduction of the principal pollution factors;


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to develop an information society, the PIC programs initiatives that will extend the access conditions and improve the offer of innovative services as well as boost particularly the development of the e-commerce. During the work process of the rehabilitation of the road network, the data transmission lines will be raised to a higher power in order to raise the communication velocity. That will improve the possibility of access to the new services of remote assistance and of management for the integrated public transport services on behalf of the citizens and also disabled persons. Through the involvement of the population in the verification of the transport efficacy, their permanent information on this issue and their participation at the deciding process, will be established a permanent relationship between the population and the institutions.

Personal training courses that will promote the use of information technologies and the creation of more services that support the firms relative to the human resource management, will be able to offer new job opportunities;

to improve the PIC management and to offer support to the local authorities for the exchange of good practices, the PIC programs the growth of the capacities of those structures that are involved, both of the local and wider area autonomies, through the administrative re-organization, the skill improvement of the human resources, the improvement of the capacity to listen and to communicate with the territory, and the set-up a permanent participation of the interested social areas in order to reproduce experiences.

The new URBAN II interventions try to overcome the problems of the previous cycle. The intervention in Naples’ historical centre (of big dimensions), even if it has produced interesting interventions, was not able to realize important changes in the structures and the environment. The decision to work in a more little area and with a high integration in the POR interventions (i.g. in the area of information society and the infrastructure equipment) aims at a higher efficacy.

The financial supply of axis 1 is the following:

Total costs: Fin. FESR: Public Fin.: Private Fin.:

10.249.000 6.078.020 4.170.980 -

The financial supply of the axis 2 is the following:

Total costs: Fin. FESR: Public Fin.: Private Fin.: 7.460.000 3.133.900 1.706.100 2.620.000

The financial supply of the axis 3 e is the following:

Total costs: Fin. FESR: Public Fin.: Private Fin.: 1.628.880 1.170.000 400.000 58.880


Total costs: Fin. FESR: Public Fin.: Private Fin.: 7.584.400 2.762.750 3.271.650 1.550.000


Total costs: Fin. FESR: Public Fin.: Private Fin.: 2.336.000 1.742.000 594.000 -


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LEADER +

Leader+ has been confirmed in the Agenda 2000 for the period 2000/2006.

That program represents the natural completion of the community policy in the rural development area. On regional level, it accompanies and raises to a higher level the realized actions of the Piano di Sviluppo Rurale and in particular the programmed actions of the POR 2000-200692.

In that 3° planning period, Leader+ is based on the innovative phase (Leader I e Leader II) and focuses on integrated and participative territorial plans. It aims at the carrying out of original strategies, both integrated and of a high quality, of sustainable development relative to the testing of new forms of valuation of the natural and cultural heritage, of improvement of the economic environment and the organizing capacities of the involved communities. Under that perspective has been worked out the Program Leader+ of the Campania and the relative Complemento di Programmazione. The Local Action Groups that represent the territorial socio-economic structure, have to define in collaboration with the population proposals of development strategies which give to the territories the possibility to express themselves in dynamical and sound circumstances.

The Region has taken the past effects strongly in consideration which are seen as an overcoming of the high rigidity that has been imposed by the ordinary intervention of the FEOGA.

The financial plan relative to the programs Urban II and Leader+ are demonstrated in the hereto following table.

92 In particular we refer to the measures 4.11, 4.12, 4.13, e 4.14.


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Program Fund Contribution Meuro)

Total costs

Engagements Payments Notes

Urban II (2000-2006)

The contribution represents2,1%, the total cost 1,9% of the whole program. Relative to italy, respectively 13,1% and 11,1%. 63% of the expenditure is destined to the environmental re-qualification, 16% to the social integration, 10% to the transports, 8% to the technical assistance, 2% to the entrepreneurial activities and employment, 1% to ict.

Caserta*** Fesr 15,02 29,26 6,91 1,94 Leader+ The contribution represents 1%,

the total cost 0,9% of the whole program. Relative to italy, respectively 8,3% and 4,8.

Campania Fesr 23,63 34,84 Leader ii (1994-1999)

The contribution represents 5,7% of the whole program (in italy)and 1,1% all the community initiatives in italy (1994-1999).

Campania 49,87 52,55 7,71 * At prices of the year of adoption of the planning actions ** Carrying out 31.12.2001 *** Carrying out 31.12.2002

THE STATE AID SYSTEMS

The state aid systems were subject to profound transformations which were also caused by the institutional reform process that has assigned a big part of the competencies in the Industrial Policies’ area to the Regions.

As known, such changes has been accompanied by a more attentive and austere attitude from the European Commission (Competition).

The principal elements that are recognizable in the measures belonging to that kind of intervention, refer to the progressive definition of an organic regional policy as compared to many and confused laws (we like to recall that in 2001, and only for the manufacturing sector, were active93 in the region more than 34 national and regional instruments). The old situation had to be inevitably subject to transformations in order to respect the community rules.

The causes for the reorganization of the regional instruments in the field of industrial policy do not refer only to the development policies related to the structural funds: such reorganization is also the response to the institutional transformation and the requirements came out with the regional responsibilities assigned in the process of institutional reform

93 “Active” means all the instruments that have registered expenditures or engagements in the period.


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carried out since the so-called “Bassanini” decree of 1998 and which have been extended with the recent constitutional modifications.

The fundamental aspect of the policy seems to be the reduction of the financial difficulties on behalf of the regional entrepreneurial structure, both by the offer of funds to the firms, and other supports (closed funds and reorganization of guarantee funds for credit).

The many instruments developed, however, do not seem to have a definite strategy addressed in a specific way to combat the weakness of the regional productive sector. Research, technological transfers, orientation to specific sectors in order to increase the regional income multiplier and the logistics, are – as examples – areas of secure interest relative to the strategies, but for the moment they are not unequivocally taken in consideration.

Two factors can be relevant for the better understanding of the sectoral strategy: one is the intervention “financial engineering” with the reorganization of the guarantees’ consortia and the constitution of the closed fund, the other the investment contract. For the moment, it is not possible to analyze that last one, however, it is much more necessary to clarify the strategy, also beyond the expected and intense use in the Progetti Integrati.

The presence of the closed fund and the interventions of financial engineering are a much delicate aspect as such instrument is suitable in particular for innovative activities. However, it is also characterized by complexity and technicalities in the management which are to be monitored carefully. The “economic” monitoring and the evaluation are particularly delicate and they have to be balanced between the necessity of a correct economic and financial management of the structures assigned to the management, and the necessity to finance subjects which would have had difficulties to receive a risk (or credit) capital without the intervention.

As for the nature of the instrument, it would be opportune to connect it with the activities of the area innovation and research. Under the viewpoint of the reduction of financial difficulties of the firms and of the improvement of the services’ quality, it would be opportune to extend the relationship between the Regions and the financial institutions. Such extension would not be limited to the creation of a single subjects, but also based on more permanent interactions. For example, a very interesting aspect of the definition of the closed fund (waiting for the authorization of the EC) is the possibility of orientation of the fund’s activities based on incentive mechanism. For the moment the effective values for analyzing the real weight of the incentives are not available, but the general principle seems can be shared.

Because of the high interest in the instrument on behalf of operators, analysts and policy maker, eventual resources’ increase (after an attentive monitoring of the effects) could aim at a more general support of the private financing of the risk capital for interesting activities, also in association with other instruments (relative to it, it will be important to analyze the possible linked orientation of the guarantee funds).

It has been used and it is programmed to use mainly incentive and allocate instruments, based on well-established national instruments in a first phase with a following replacement of reorganized instruments. It is opportune to take much care of the selection principles which represent the concrete mechanism of policy orientation. For example, if the formal principles of the new regional state aid system for the PIM were based on a new employment, quality certification and energy saving, the technical form in which those principles had to be reported on behalf of the firms, didn’t discriminate any of them: the final


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choice of the firms which would be financed, based on a certain criteria (the variance of the average investment dimension) which does not seem to be any objective of the regional policy.

It was an experimental tender with few resources (30 Millions of Euro), and the same Region has announced the intention to change the principles in the next tenders.

Except the problem of the orientation of the instruments, the various programmed intervention lines do not show particular problems (neither innovations), if we rule out those ones observed in the financial engineering area.

The intervention of the reorganization of the Fondi di Garanzia is a particularly innovative and interesting intervention in regard to an instrument of enormous potential, that has been used for years and that is appreciated by the operators, even if it was in the past of an often doubtful effective utility. It is also a change that could have an extraordinary value relative to the variations of the definitions with the so-called Basilea 2 that are coming up. The imposed conditions for the tender seem to have an elevated potential use, which has to be verified carefully in the stage of carrying out.

The experiences and the eventual choice to orient at least a part of such funds in a specific way, makes it opportune to program mechanism of correct “economic” monitoring .

The prevalent objectives indicated by the POR are traceable to those objectives that are connected with the employment levels (absolute and relative to specific groups: young people and women), the levels of investment and consolidation of the firm structures, the increase of the quality certifications, the competition conditions (innovations) and the reduction of the difficulties to receive a credit.

With regards to the relation instruments/objectives, the typical relations (for example expenditure for the employed person) seem to be coherent with those of the analogous interventions.

Autonomous estimations, done by the independent evaluators about the deadweight and the admission difficulties for a credit, and limited to the instruments which reproduce the logic of the National instruments, show an interesting picture:

- With regards to the deadweight of the financed investments (the estimation is of the inverse, the net effect), it is estimated in a value around 60%.94 It is a more acceptable value in comparison with the available international estimates, which, however, can be significantly increased with the change from traditional incentive forms to more specific and oriented forms.

- With regards to the improvement of the admission to the credit for the PMI, the estimates do not indicate a sensible and significant impact of the state aids on the credit rationing, that are reported at the 30% relative to the firms of the regional sample survey. The estimated effect of the policies that have been mainly set up in the region, (predominantly 488/92) was equal to the reduction of the credit rationing relatively modest95 and which can be

94 We like to note how that value is much simile both in the macroeconomic (R.Brancati, Rapporto MET, Donzelli ed, 2001) and microeconomic estimations (that are being published in the documents of the independent evaluation). 95 The estimation has been done with the model Probit applied to the data obtained by the Capitalia survey at the Campione delle Imprese Manifatturiere for Campania. The presence of public funds to the firms seems to reduce the probability of rationing of 7%.


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attributed to the public interventions. We can expect that the financial engineering measures will be much more effective for that objective.


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• Figure 1: Annual rates of variation of the GDP and the internal demand (figured out on price values of 1995)

• Figure 2: Evolution of the principal economic aggregates in Campania, in the South, Central-North of Italy, period 1981-2001 (variation % annual average).

• Figure 3. Net imports of Campania and the South of Italy (a)

• Figure 4: Annual average rates % of added value variations at basic prices

• Figure 5: Annual average rate % of variation of the work units

• Table 1. QCS 1994-1999 of the Italian regions’ aim 1:

• Table 2 QCS 1994-1999 of the Italian regions’ aim 1: financial plan of the program POP of the Region Campania

(a)

• Tab. 3: Urban and LEADER contribution


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ITALY:

REGION: SARDEGNA

ELABORATION: Authors: Annamaria D’Angelo, Julie Pellegrin, Francesco Grillo From: VISION & VALUE. ITALY.


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ANALYSIS OF THE IMPACT OF COMMUNITY POLICIES ON REGIONAL COHESION:

THE CASE STUDY OF SARDEGNA. ITALY

EXECUTIVE SUMMARY

Sardinia’s development trajectory is characterised by elements of backwardness as well as assets with strong potential for growth. On the policy side, there is a lack of integrated and structural development strategy which fails to reap the benefit of Sardinia’s potential competitive edges. As a result, the economy is growing, but not enough to catch up and achieve convergence with other regions in Europe. In this context, Community policies contribute only partially in redressing the situation.

From a quantitative point of view, the most important Community policies (CP) in Sardinia are Structural Funds, followed not too far by State Aids. However, while a breakdown by sector and priority shows that the contribution of Structural Funds is often overwhelmingly predominant in areas which are decisive for regional growth, the same cannot be said of State Aids.

Despite great difficulties of calculation and comparisons with figures for other CP, the study found that State Aids represent a considerable source of income for the region, but which is mostly of a short term and short-sighted nature. It is indeed concentrated in areas hit by sudden and unpredicted disasters (exceptionally bad weather conditions, economic crisis…) with little strategic implications.

Instead, the importance of Structural funds is particularly remarkable in the case of infrastructure (transport, water, energy, etc.), and with lower amounts, for R&D.

In the transport sector, there has been a real effort to adopt a comprehensive strategy of intervention. Connections with the mainland have developed, even if this applies mainly to the transport of persons, less to that of goods. Internal connections also improved significantly. If more progress is needed, the overall contribution of CP to cohesion in the field of transport can be said to be positive.

Structural funds also proved decisive for the establishment of institutions which are necessary for the development of a ‘regional system of innovation’. However, administrative and political factors block the full exploitation of the opportunities offered by Structural Funds. As a result, a regional strategy in the field of R&D cannot be properly implemented so that, despite its potential, the R&D policy in Sardinia does not yet serve the objective of cohesion.

In agriculture, CP made an important contribution to modernization, and to cohesion (both ‘external’ and intra-regional cohesion). In particular, different programmes promoting rural development proved to be particularly successful at


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local level (e.g. Leader in promoting partnerships). Overall, however, the initiatives taken do not seem sufficient to trigger an autonomous development process.

In the field of environment, the situation is characterised by a rather poor state of general vision and initiative. Despite its potential pivotal role in the definition of a regional strategy of growth, CP did not until now prove very successful in imposing a modern approach to environmental policy. Impaired by relatively small sums allocated to environmental objectives, initiatives in the field fail to raise awareness, and to transversally affect the other policies. This raises important questions of coordination between environment policy and other policies.

Overall, the impact of CP on growth and convergence in Sardinia proved to be difficult to assess in general quantitative terms. The best one can say is that things would have been worse without CP. There is little doubt for example that CP and Structural Funds in particular made a precious contribution to tackle specific issues like the lack of infrastructural pre-conditions to growth and development. What is more, in certain fields like R&D, there would have been very little progress without the Structural Funds. However, from a strict quantitative viewpoint, the overall sums engaged appear small to be able to substantially influence the regional growth trajectory.

On the face of it, from a qualitative perspective, CP have indeed made some decisive contributions, introducing some fundamental ‘cultural changes’ in policy-making such as the practice of evaluation and of control of spending. That a notion like the control of spending started to be applied in a context where the concern was more to spend, no matter how and with what results is quite a result. Also more active and formalised participation of social partners in the design and monitoring of policies has become a natural practice. Another positive effect of CP concerns the development of a culture of cooperation ‘on the ground’ between local partners, again a significant achievement in the Sardinian cultural context (even though in concrete financial terms, co-financing by private agents remains generally very low). There has also been progress towards more communication and transparency about CP and related activities, yet this is likely to occur mainly a regional level, less at local level.

That said, there are enduring weaknesses in the governance structure, as well as difficulties related to missed opportunities of coordination between policies and administrative structures in charge of CP that prevent from reaping the full benefit of CP. The research engaged for this case study identified two specific difficulties. The first has to do with the integration of CP into a really coherent regional strategy of development. The second concerns the actual implementation of policies and programmes which even when they are correctly and efficiently designed at regional level do not yield the expected outcome because of inadequate local capacities and insufficient coordination with other policies.

Fundamentally, there is a strong identification of Community policy with Structural Funds. This is probably due to the fact that there is a strong association of the policies with their financial dimension. As a result, there is a lack in perception of the different kinds of effects that could be generated by the application of a policy in a non financial way, while some policies might not be


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considered at all. Overall, attention is detracted from the necessity to introduce better coordination between policies, both at the implementation level and in the definition of the policies’ objectives. Coordination between administrations at the programming stage is indeed weak, and is echoed at local level, when policies are implemented, thus reinforcing the costs of non-coordination.

The concentration of competence over Community Policies within the “Centro Regionale di Programmazione” (CRP) over the 90s can be considered to be a solution to coordination problems but it probably betrays in fact a lack of competences in the administrations and Assessorati, one serious limitation of the Sardinian CP system.

In general, despite evidence of a learning process developing from one programming period to another, the administration remains characterised by excessive rigidity and centralisation due to a long tradition, and because of partially inadequate human resource.

Overall, this study found that there have been some extraordinary progresses, especially obvious if the original situation is recalled but that the opportunities offered by CP are not exploited to the best. The biased focus on both Structural funds and on the quantitative aspects of policies, is a factor that reduces the potential impact of CP on convergence. This is a drawback that should be addressed by both regional authorities and the Community.


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INDEX


2 MAIN COMMUNITY POLICIES OVERVIEW CAP ENVIRONMENT R & D POLICY TRANSPORT STATE AIDS

3 GENERAL IMPACT

4 GOVERNANCE

5 COORDINATION



REFERENCES

APPENDIX

Interview method and key informants


Index of tables

TAB 2.1 Community Policies in Sardinia by sectors

TAB 2.2 Framework Programmes Sardinian participation

TAB. 2.4 Amount of Notified SA

TAB. 3.1 CPs and Regional cohesion

TAB. 5.1 CPs interaction

TAB. 2.3 State Aid in Italy 1990 – 2001


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The still important agriculture sector is characterised by a low UAS96, low mechanisation, problems of irrigation and modest company dimensions. The industrial sector shows a prevalence of small companies (43% of companies have only one employee). There is a strong specialisation in chemical and plastic products, and to some extent in food manufacturing. Probably with the strongest potentials for growth, the tourism industry (drawing on exceptional environment conditions) and the Information and Communication Technology (ICT) sector could become motors for regional economic growth.97

Sardinia has a population of 1.599.511 inhabitants (see table 1) on a territory of about two millions ha. The density of the population is one of the lowest of southern Italy with about 69 in habitants per Km. In addition, the population is very unevenly distributed on the territory, with a concentration around the main town of Cagliari in the South, which leaves wide – mainly internal – areas with a density well below the regional average.

The ‘regional model of development’ can be roughly characterised by a mix of strong elements of backwardness and a considerable potential for dynamism. Some basic pre-conditions for growth are hardly met like insufficient water and energy supply infrastructures, and inadequate transport networks, (ports and airports). There are also worrying structural deficiencies in education and training and in the R&D system (R&D representing only 0.69% of GDP, with an alarmingly low level of business R&D decreasing from 1995 to 2000).

In general, a lack of integrated and structural approach to regional growth has characterised the “development model” of the island. In this context, progress toward convergence is mediocre. Unemployment for example, remains alarmingly high with a rate of 18.5% in 2002 compared to a national average of 9.1%. Between 1995-2002, the unemployment rate increased for all the age groups considered, except some decrease recorded for age groups between 30 and 64. The situation is particularly negative for female unemployment which despite some improvement remains well above the national figures.

Concerning the growth of GDP per head, data show rather strong increases, with a rate of + 2,53% in 2001 (see tables 3a and 3b).98 In general, the performances of the Sardinian economy have been essentially stable since the 90s. What is more, according to innovation indicators giving an indication of future growth potentials, Sardinia is categorised in a medium/low position with respect to other laggards regions (see table 4). These evolutions do not seem sufficient to guarantee a process of catching up eventually achieving convergence.

2 MAIN COMMUNITY POLICIES

OVERVIEW

(see table next page)

96 Usable Agricultural Surface. 97 See on this and more in general the 1994 – 1999 SF programming period, the Mid Term Evaluation Report and “La Valutazione Intermedia dei programmi comunitari 1994 – 1999 della Regione Sardegna”, Francesco Grillo – Vision&Value, Febbraio 2002, published by Regione Sardegna, Centro Regionale di Programmazione 98 If another indicator is used, labour productivity, the finding is less negative, but it is still not enough to bring about the desired convergence.See Paci, R., 1999, “L’evoluzione del sistema economico della Sardegna negli anni Novanta”, Quaderni del CRENoS.


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TAB 2.1 COMMUNITY POLICIES IN SARDINIA BY SECTORS

CAP AND RURAL DEVELOPMENT

ENVIRONMENT TRANSPORT

COMMUNICATION (ENERGY)

STRUCTURAL POLICY COMMUNITY INITIATIVES (1)

R&D/INNOVATION FRAMEWORK PROGRAMMES

STATE AIDS (4)

Approximately 721 m € broken down in:

More than 2 bn € divided approximately in:

Agriculture, rural development 73,44 m €

Agriculture: 630 m € (of which 590 m € for calamities)

Environment 97,56 m € Fisheries: 27 m €

Smes and craft 41,38 m € Companies, smes: 700 m €

Infrastructure and communication 50,48 m €

Employment: 826 m €

Human capital, training 94 m €

19

89

- 1

99

3

Tourism 135 m €


Approximately 3 m € (r&d energy programmes only)

Approximately 1,5 bn € broken down in:


Life nature 3,6 m € Agriculture, rural development 538,82 m €

1994-1998 min 635,000 €

Life environment 4,6 m €

Environment 8,93 m € 1998-2002 min 14 m € (of which 3 m € life quality)

SMES AND CRAFT 139,47 M € INNOVATION ACTION 2002 1 M €

INFRASTRUCTURE AND COMMUNICATION 493,10 M €

Human capital, training 234,97 m €

Tourism 91,71m €

19

94

- 1

99

9

Int'l cooperation 9,34 m €

Approximately 195 m € (2)

Approximately (3) 1,9 bn €

20

00

-

20

02

PSR 368 M € (2)

Millions euro (M €), current exchange rate. (1) Actual expenditures; (2) provisional expenditures (3) Docup only, provisional expenditures; (4) until 2006.


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A first reading of Table 2.1 makes clear that the most important Community Policy in Sardinia are Structural Funds, and that State Aids follow not too far. Since the reform of the Structural Funds in 1989, Sardinia, classified as an Objective 1 region, has received a very substantial stream of income from Structural Funds. In the 89-93 programming period, three programmes (PIM, PNIC and POP), two global subventions and two Community Initiatives totalled approximately 800 M € of expected expenditures.99 In 1994-99, the budget of the POP (Programma Operativo Plurifondo) amounted to around 1 800 M €100 to which many Community Initiatives (in particular Interreg II and Leader II and PMI with a total of approximately 170 M €) were added. Finally, under the current programming period (2000-2006), the sums distributed through the POR (Operational Regional Programme), the PON and three Community Initiatives (Interreg III A, Interreg III B and Leader +) represent a very substantial increase compared to the past. The POR in particular is responsible for this increase with a budget of around 4 700 M € (Interreg III A and Leader + represent around 60 and 50 M € respectively).

State Aids represent also a very significant source of income for the region.101 However, while a breakdown by sector and priority shows that the contribution of Structural Funds is often overwhelmingly predominant in areas which are decisive for regional growth, the same cannot be said of State Aids. The importance of Structural funds is particularly noticeable in the case of infrastructure (transport, water, energy, etc.), and with lower amounts concentrated in the 94-99 period, for R&D.

Agriculture and rural development are significant priorities of Structural funds, and a privileged target of State Aids. Interestingly, the latter are dominated by a very large share dedicated to palliate ‘calamities’ and other natural catastrophy, i.e., that they are characterised by a lack of long term view and tend to be disconnected from any development strategy.102

State Aids play also a very important role in employment, and SMEs policies. This is an area where other Community policies, through the exclusive channel of Structural funds, provide comparatively less quantitative support. However, while the former are often of an ‘emergency’ nature, the latter focus more on measures specific to an innovation approach to enterprise development (services to enterprises, establishment of networks, connection with the academic sphere..).

Apart from CAP and “Piano di Sviluppo Rurale” (PSR), the other Community policies are remarkable for their quantitative discretion in areas that are decisive for regional growth and development. In the R&D and environment sectors, Framework programmes, and Life programmes have respectively some importance. Environment was an area relatively neglected in the 94-99 period but which received a higher amount of Structural funds in the preceding programming period (89-93).

It is particularly interesting to note that in both cases of R&D and environment national and regional funding is playing an increasing role in the last years (see Table 10 in Annex). Environment now ranks high again on the Structural funds agenda, and it is significantly affected by AG21L, a regional source of funding. As to R&D, the entry into force of a new

99 However, the rates of actual expenditures are sometimes far from the planned amounts. The worst performance was recorded by PIM with a rate of actual expenditure over planned costs of only 70%. Interestingly, these rates vary also depending on priorities. For example, rural development received more than planed while agriculture and breeding as well as tourism under-spent their budget. See Pruna, M.L., Zurru, M., 2001, ‘Come è difficile spendere – L’esperienza dei Fondi Strutturali europei in Sardegna, Milano: Franco Angeli. 100 Of which 95% were actually spent. 101 Much care should be taken when interpreting the figures given: they should be taken as a mere indication of the actual value of State aids in Sardegna. See below, relevant section. 102 See below, relevant section.


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Law promoting industrial research provide an additional source of incentives which is far from negligible.103

CAP

Agriculture is one of the leading sectors of the regional market.

Human establishment in Sardinia is characterised by a tendency of the agricultural population to concentrate in the major rural centres, relatively far from where the agricultural activity is developed. This feature highlights the already weak presence of population in those agricultural and forest areas where the increase in population is made difficult due to the peculiar characteristic of its geography (ex: climate, relief, environmental aspects, etc.,) strengthening the critical points of the agricultural economy, social situation, and the preservation of the natural environment.

The economy of the region is characterised by a primary sector mostly influenced by the geomorphologic structure of the territory. 80% of the morphologic structure of the island is represented by hills and mountains; this structure permits the development of sheep and caprine farms while the cultivation is decreasing in terms of percentage of the territory used for this activity.

Nevertheless the added value of the agricultural productivity is low, the reason is particularly due to the fact that the majority of the regional surface suffered disadvantaged conditions as defined by Directive 75/268/CEE. Moreover there are serious problems due to drought which represents a real calamity and a big obstacle towards development.

The characteristics of the agricultural sector and its structure in the region would be summarised as follows: Sardinia has about 112.600 farms developed on more than 1 million hectares of usable land.

The structural imbalances of the agricultural system are stressed by phenomena’s such as:

− High prevalence of grassland on the total usable surface;

− Low distribution of irrigation;

− Low rate of mechanisation;

− Low land productivity;

− Small economic farm dimension;

− Poor added value of regional agricultural productions.

The rate of activity, between manpower and total population starting from age 15, is comparatively stable. This indicator, intended as a measure of work supply respective of the resident population, since the ‘70s in Sardinia illustrates a grade level between 45-46%.

In the last years the maximum was achieved in April 1999 with a value of about 46,9%. Considering that the described context represents significant importance, even if in contrast with the other sectors, the occupational situation of the sector which shows a definitely limited contribution with a value of about 9%, data 2002, while the same data represented by the 21% over the last decade. The situation appears even more problematic in comparison with the performances realised by the other productive sectors and considering that the regional territory is traditionally devoted to agriculture and breeding. (As a consequence is noticeable the difficulty of the sector to improve minimal condition in order

103 Unfortunately, no figure is available. Interestingly, however, it is worth noting that this Law is notified as State Aids. See below, relevant section.


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to develop the employment market - namely maintenance of work places and creation of new ones).

It has already been said the more developed productive compartments in the Region are represented by the zoological sector, with more than 3 million animals, which develop one of the biggest productivities of the entire agricultural sector. Within the zoological, ovine, caprine milk and milk productions are the principal sectors of agricultural activity of the Region covering about 60% of resources of the entire sector.

On the basis of the data collected, regarding strict agricultural productions it is worth underlining that overriding productions, namely wine industry, have incurred in a great decrease due to the application of a Community Regulation104. This Regulation has signified the explantation of grapevines without a significant replacement in terms of relevant productions.

The result is a sub exploitation of the plots concerned which have been converted in fodder plants, sowables or rotary cultivations not competitive for the market as the grapevine production has had a subsequent loss of income for the farmers. So that a higher legislative regulation followed by yielding of incentives has produced, in the medium and long term, an economic damage sometimes not quantifiable because of the loss of the known heritage of grapevines derived from local know how (demand centered effect).

The price system of agricultural products seems to be stable. In fact data show a price maintenance even if a negative effect was attended by the introduction of the monetary union. The attended crowding out effect has not taken place considering that single currency has granted the maintenance of prices and simultaneously has determined a revaluation of real goods prices.

Nevertheless consumers have incurred a damage due to price increasing faced by the salary stability with a net effect of decreasing in their purchasing power. Data related to the agricultural saleable production show that every product typology prove an increase in the economic value provided to the sector.

The level of rurality is too high but the closeness to urban areas still represents a cause for underdevelopment. Though urban areas represent a threat because of their action in terms of attraction strengthening the phenomenon of depopulation which characterises the rural areas. This impedes the development of rural areas or reduce the capacity of these areas to develop in a sustainable way, leaving the process more time to take off. The global effect derived from the described status of the sector can not be read in terms of growth on the level of convergence. The market itself seems to have still shallow weaknesses besides the problems caused by natural calamities.

However the sector is moving through specialisation especially in terms of production of high quality products in the Region. These kind of productions have been increased and even valorised but their prices on the market are still too high. Specific localities are individualised by the people based on the products produces that means try to stimulate economic condition of growing which are not completely developed. What is noticeable is that agriculture is going through a specialisation for example by classifying products with the DOP mark supported by EU legislation.

104 Council Regulation (EEC) 822/87 Common organisation of the market in wine, OJ L 84 of 27th of march 1987


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What has been valorised is the production of typical products which are represented mainly by wine105, cheese, fruit and vegetables and other products such as sweets, bread, honey, olive, oil, pasta and saffron. Moreover there is a strong campaign supported by the Region in terms of promoting these products through the realisation of information and publicity actions in the Italian and foreign markets. The message is that those products have a millenary tradition and even if the production system has developed through high technology one the producers still maintain handicraft approach that links with the environmental conditions still uncontaminated and make a really unique product.

Nevertheless an autochthonous and autonomous development is far from being reached even conditions on credit side rather than becoming a favourable system of support for SMEs still appears not to be efficient106.

The most important agricultural product of the region are represented by ovine, caprine, milk and milk productions, viticultural productions, olive and horticulture productions. It would not be completely right to asses that there has been a shift in the importance of agricultural products in the last twenty years because the production has not changed while it has been valorised. This is a correct observation concerning the above mentioned products and those valorised as defined typical. Moreover the existence of capacity to develop what is called “saper fare” (know how) means that the territory is understanding the necessity and even the opportunity to develop economic activities which are closed to the agricultural system but which are based on other kinds of knowledge and capacities. The main activities that have taken off are rural tourism, agritourism and bed and breakfast107. These kind of activities linked with the specificity of the local productions and the beauty of the land will allow the territory to develop a economic circle which would last following the closing of the swimming season.

Policies are mainly financed by structural resources allocated by the previous POP over the 94-99 period, and by the actual POR 2000 - 2006. CPs have enabled to strengthen structural modernisation and implement infrastructures such as roads and electrification, and as a result, the strengthening of the entire productive structure. Nevertheless, even if, in general terms, the agricultural system is gradually leaning to cohesion, an endogenous agricultural development is far from taking place which would enable an autonomous development process.

Until the ’90s the policy of rural and agricultural development was manly based on structural interventions. Since the period programme of ’94 – 99 the policy has been implemented by the integration between structural and instruments support. What the Programme was focused on was firstly the modernisation of the structures achieving intervention on the extension of electricity, the implementation of the road system and the reinforcement of the whole productive infrastructure.

POP 94 – 99 made possible the realisation of these kinds of action in the agricultural and rural sector with an amount of resources of about 627 Million of ECU.

Intervention of a structural nature represented the more important area of involvement in the Programme. However it is necessary to underline that the POP sub

105 At this regards the experience of “Cantine Argiolas” one of the most relevant wine producer of the Region can be evaluated as best practise due to its capacity to export together with the indirect impact it can developed in terms of growing of some economic sector of the Island such as tourism. 106 On may 2003 the executive regional institution, Giunta Regionale, has approved the Regional Law n.4 of 31st of January 2002 “Interventi a favore di forme collettive di Garanzia fidi nel settore agricolo” with Delibera di Giunta regionale 15/34 of 28th of march 2003 which allows the contribution through the utilisation of de minimis rule. 107 To understand the level of development of diversification achieved the Agritourisms mapped in the Island are 463, see http://212.210.110.158/agriturismo/lista.asp?offset=0 regional web site.


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programme “rural development” has confirmed the satisfactory results obtained by a measure committed with the valorisation of the Anglo Arab Sardinian horse (measure 2.4.2.1). Besides the money supplied the measure has reached an indirect impact in terms of valorisation this particular Sardinian equine breed and its subsequent diffusion on the national and international markets. This consideration is important to emphasize the different ways of contribution to the economic development based on quality valorisation even if in this case the referring market is represented by a low volume niche product.

The present programming phase (Regional Operational Programme 2000 – 2006) would like to shift its intervention through the reinforcement of systems production and transformation. Nevertheless until today, since the beginning of the Programme, there is evidence of the difficulty to manage the intervention in this direction with efficiency. The measures that granted the best performances at the stage continuing to be those of structural nature.

POR can count upon a financial support of about 1.230 Million € with intervention on the Asse I dedicated to Natural resources and Asse IV Local development108.

One of the difficulties of the programme is to develop completion time and is mainly due to problems deriving from the acquired levels of coordination and governance of the sector and in this case in particular with regard to FEAOG. This assessment will be better described later.

Another important source of development for the Region concerned is represented by the Programme LEADER. This programme has mainly contributed on one side to reduce the phenomenon of depopulation of the countryside and on the other to revitalise the whole rural system.

The previous programming period LEADER II has contributed in a complementary way to support the agricultural and rural system, some particular activities, not completely supported by the foreseen intervention of the structural programme, have been revaluated and changed in significant factors for the rural development. It is sufficient to observe the activities linked to the recovering of local know how and their transformation in productive activities almost of an industrial kind (see for example typical local productions). Such activities have achieved strong and positive effects on the whole regional territory even with a really poor amount of financial resources specially compared with that granted by the entire structural programme supply. LEADER II had a financial amount of about 3.6 Million € and moreover it was a multi-found programme.

The present experience of LEADER + 2000 – 2006 in Sardinia is likely to strengthen the preceding results giving a greater support to the partnership development, creation of network and quality of life even between different territories. In particular LEADER + would try to put into realisation the following kind of actions: improvement and valorisation of local productive system (certification, marketing planning, know how development, agricultural salary integration); improvement of quality of life through sustaining actions for rural population (services, women, childhood, disabled persons, etc.,); valorisation of natural and

108 The only measure on Asse I Natural Resources is “Measure 1.2 Agricultural areas irrigation system”, on Asse IV Local Development there are 13 “Measure 4. 9 Investments on agricultural farms” “Measure 4.10 Improvement on conditions on transformation and commercialisation of agricultural products” “Measure 4.11 Commercialisation of quality agricultural products” “Measure 4.12 Diversification of agricultural activities and similar activities” “Measure 4.13 Essential services for the economy and rural population” “Measure 4.14 Renewal and improvement of villages and protection of rural heritage” “Measure 4.15 Promotion of tourist and cultural activities” “Measure 4.16 Preserving environment in relation with agriculture and forestry natural resources conservation and animals welfare” “Measure 4.17 Reconstruction of agricultural potential damaged by natural calamities” “Measure 4.18 Training” “Measure 4.19 Land consolidation” “Measure 4.20 development and improvement of rural infrastructures connected with agricultural development” “Measure 4.21 Establishing young farm workers”.


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cultural resources including creations of networks between Bed & Breakfast and agritourism circuits; the strengthening of social and territorial competitiveness.

The financial resources of LEADER + for the period is altogether about 52.571 Million €. The results achieved since its management and with these economic dimension give a good expectation of the capacities of the rural territories to continue on the process of development by experimenting new economic development solutions based on bottom up principles.

The development of an Agricultural Policy in the field is directly dependent on the decisions held at European level. So that even if the assessment is decided in a concertated way with an unanimous decision of all Member States the territory does not have the concrete chance to directly intervene in this process. The policy is principally a top down one and the Regions are forced to implemented with the only possibility to decide the internal organisation on how to adopt the measures concerned.

Although the intervention measures take place in the Region and have produced results in terms of growing capacity of the agricultural and rural sectors Sardinia does not present a great level of convergence. There is still a long way to go to produce a significant line of competitiveness of the regional territory. As noticed direct measures are intended to strengthen this competitiveness with the awareness of the existing capacities, knowledge within the cultural and traditional heritage of the territory. But the sector still needs a strong intervention on the way to generate autonomous capacity for reaching more cohesion. Moreover the agricultural and rural conditions derived from what is called natural calamities stresses this situation and slows down the development process. What can be said is that the presence of this policy on the territory can give it the chance to spread the condition of the regional development.

The weaknesses of this policy can be evaluate at the stage of co-ordination. Firstly Agricultural policy is, as known, sectorial and its relation with structural policy is likely to be complementary. That means Structural policy intervenes as a completion of the market measures established by CAP even if there is a noticeable static situation in applying structural measures. Secondly it is important to underline that the perception of CAP in the Region is directly linked with the intervention of Structural Funds; to be precise the supporting measures on agricultural and rural system have direct support by the intervention of structural policy. A strong co-ordination would also be visible between CAP and some sectors of the Environmental policy and State Aid. About these policies the relation with the previous is mostly due to the existing environmental situation so that agricultural and rural measures have to take in consideration, at planning and implementing stages, the weaknesses of the territory under this point of view. Secondly there is an increase in sustaining intervention which impacts on the territory and is compatible with the environment. Specific minimum criteria is required for farmers regarding hygienic conditions in order to preserve and maintain the local environment. Concerning State Aid the point is directly related with the massive intervention required from this policy in order to make the sector capable to cope with the problems derived primarily by natural calamities. So that appears that more than a co –ordination is about a real necessity, nevertheless State Aid can not intervene without considering the existence of agricultural and rural measures.

At the administrative level once again there are consistent problems deriving from the level of management reached and from the internal undersized regional organization which would not allow co – ordination to take place in the regional government.

A real unexpected result on co – ordination has been achieved thanks to LEADER intervention. GAL (Local Action Group), similarly to the Agenda 21 Locale network, represents the best method in terms of local co-ordination, without regional intervention, and managing capacities (activity realisation and level of expenditure). In this sense LEADER


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+ has made a step towards improving co-ordination and the number of GAL has been reduced meaning an important achievement in terms of concentration of the intervention. Another interesting point is the increase in managing capacity developed by local human resources which represents an important growth of the entire economic regional system.

The last observation on LEADER shows the limitation of the Region even in terms of governance achieved on these issues. System of partnership are not really developed neither at horizontal or vertical level and there are difficulties to incorporate new competences. Nevertheless it would not be worth finishing up negatively. Progress has been made especially considering the past situation of the sector in the Region but it seems at this stage not completely sufficient to increase the level of cohesion of the Region itself.

ENVIRONMENT

At national level the institution of a regional agency has been established for the protection of the environment ARPA109 with the aim of preserving the environment. The Regions are forced to accept the designed standard and to make it functional in their territory. What is interesting to note is the time needed by the Region to create the necessary condition to comply with the national law and finally implement it with the institution which results as one of the last to be established in Italy110.

Sardinia has a really important natural heritage which constitutes one of the biggest resources of development of the territory. Nevertheless the management of these resources shows the existence of critical situation. In the last few years the Region has produced some interesting steps on the inside of its internal organisation to tackle the situation and has started to adopt instruments in relation to the necessity of planning and programming in the direction of exploitation, protection and improvement of environmental situation in the Region. Although those instruments represent an important achievement in terms of improving and implementing a policy they still act in a partial way due to insufficient financial resources and to a limited level of co-ordination of the intervention.

The Assesorato alla Difesa dell’Ambiente is the regional bureau in charge of the implementation of the environmental policy. Recently inside the administration a structure “Sustainable development service” has been created which has the task of developing a transversal function in order to try to coordinate actions concerning environment.

Certainly there has been a real change in the way environment is intended mostly due to the community framework characterised by intervention of a legislative nature and referring statements such as guide lines.

This represents the referring institutional framework and taking into consideration the administrative structure of the Region could signify the existence of an organisation capable of governing the environmental topic in all its aspects. Nevertheless the environmental policy is far from being implemented in the Region in a coherent way in all its aspects, that means EP is materialised in the Region in a fragmentary way.

109 ARPA is a National Agency for the protection of the environment, National Law n. 61 1994 110 ARPA was established in Sardegna GR n. 323 of 30th of September 2002, long after what the National law n. 61 of 1994 prescribed.


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To understand the point it is sufficient to produce some easy examples like:

Generally speaking it is not easy to assess a concrete impact in terms of development and growth in the Region directly derived from EP accomplishment, the analysis can be of partial nature because of the difficulty of having a perspective view of a certain kind of implementation of EP. Said that way does not mean that the Regional situation concerning the EP is completely unsatisfactory and insufficient. The difficulty related to EP implementation are exactly the same as the implementation of the other policies in the Region, lack of co-ordination and a not sufficient level of governance.

• VAS – Strategic Environmental Evaluation related to the evaluation of the effects determined by plans and programmes on the environment established with Community Directive 2001/42 has not been translated in national law and so far not even at regional level;

• Each sector of the administration fulfil minimum environmental requirements, when necessary, but not in a frame of a political regional strategy design; think of energy, transport and agriculture.

Nevertheless there have been real changes in the way of implementing the environmental policy even if the Region is still too far from an organic implementation of the policy.

That is to say, this implementation can produce opposite results in the Region in terms of consequences because there is not a perception of an implementation of a common environmental policy on the grounds that there is still a lack of comprehension of the environmental policy instruments when, for example, an industry or a farm has to implement some measures related to it although it is a constraint.

From this point of view it is interesting to underline both sides of the problem related to EP application: on one side the lacks of the institution to implement the policy in a co-ordinate way, on the other side the lack of awareness about this important theme generally from society and from economic activity.

Relevant information concerning this assessment could be made in relation to the necessity deriving from the Region to realise an organic relation on the environmental state of the territory that means the first concrete and structural intervention to plan a complete EP for the territory concerned. On the contrary at a political level there is no perception about the concept of sustainability in fact, the financial document that established the money flow at a regional level for 2003 does not consider this aspect although the document of economic and financial programming would like to annex to it this kind of analysis. So even if at this stage the regional programming does not present a co-ordination with the environmental item including it in a global perspective of development something is starting to move in this direction. That means the political regional system is developing an increasing consciousness regarding the environmental aspects not only in terms of modifying its system from a law perspective or in consideration of specific matters, for example water, soil, pollution, but even understanding environment. Even though environment is a complex system related with a multiple aspects which needs to be improved in an homogeneous and structured view together with different kind of policies that have direct or indirect relation with it.

From the point of view of the legislative implementation, Community Directives and regional legislation, the Region shows a good level of implementation in different environmental sectors such as waste, water quality, Birds Directive, the institution of SIC and ZPS, the realisation of Regional Parks, Environmental Impact Evaluation, etc.


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This could represent the first step through the design of an integrated way of intervention in the sector at regional level.

The other effects that EP can produce or, better, has started to produce in the Region is still difficult to evaluate in quantitative terms. A certain kind of activity which could show a direct impact on the environmental condition has been developed thinking about quality related to the environment, agriculture or even some kind of financed projects. What is difficult to observe is the stability of the employment level generated because of a lack in the survey system which do not observe the employment trend in connection with environment due to the fact that it is not considered an economic activity. Nevertheless it is possible to observe that a certain kind of agriculture has been developed in the Region in the last ten years such as organic productions and organic farms. What is interesting to say is that those data are become source of investigation since the last agricultural census so that before that time this kind of activity where not took into consideration while observing the sector. Today in the economic and agricultural sector biological farms represents about the 10% of the whole number of active farms in the Region. In this case there is data which show that ten years ago this kind of agriculture was not considered as an economic activity while the situation is going through a considerable change directly related with the necessity and, in some cases, the opportunity to produce and develop economic activities taking care of the environment condition.

Until today the environmental heritage of the Region has been preserved wrongly through exploitation only because the economic activity has been mostly concentrated on the cost leaving out the development process in the internal areas of the Region with a consequence of a good level of environmental conditions.

What is noticeable in the Region is the lack of a strong and structured environmental policy to slows down the process of having a positive impact from its application. So if it is correct to asses a good level of impact in terms of law implementation there is still a deficiency in the system concerning the application of the laws on the ground. This means that in certain cases the impact, considering the interaction of EP with other policies, could only be considered negative. To go deepening in this consideration it is possible to observe the lack suffered by the Region in transport policy and intervention, for example the lack of a complete railway system, which has a direct impact on the environmental condition. The same phenomenon can also be observed matching together EP and Energy or the same aspect of agricultural policy implementation.

These kind of observation could lead to a specific consideration in the growing need to develop a system where policies can act in a co-ordinate way starting from the planning and programming level to their implementation on the ground passing through the concrete involvement of the different levels of administrative institutions to citizens and the economic activity sector.

Although it seems to face a really difficult situation it is possible to asses a growing in some kind of impact which could derive from the improvement of EP. Firstly certain kink of intervention cannot be implemented without a study on the impact that they could have on the environment111. What faults is the consciousness from those constrained that these studies have to become routine and then can not be seen like something the system is obliged to cope with. But this is a process which is of primary importance and will be something natural to do later on.

111 For example the evaluation of environmental impact or the way to implement the transversal EP in the intervention which have become instruments to evaluate the goodness of a programme rather than an intervention or a project.


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The other aspect that does not allow to start up the process of developing an EP which acts in a co-ordinate way and which permit to measuring positive impact is the low level of governance.

The absence of a structured EP is due even to this situation. There is a low level of competency or, better, there is a growth in competency in relation to analysis but not an implementation of them in planning long term strategies, in monitoring systems. Moreover those competencies are allocated in different sectors of the administration so that each one act directly on its subject causing problems of convergence because of different point of view that often come into conflict.

To complete this frame it is necessary to point out the need to increase the capacity of local administration to project plans and interventions at a level respective of the environment from its multiple point of view so that an effort should be made by the regional and national administration to strengthen their capacity of intervention for example by improving in this way the instruments they have.

Observing the subject from the perspective of financing situation intervention on the ground are made thanks to the action which could be developed with structural funds. With the present programming period direct financing derived from Asse I of POR 2000-2006 dedicated to “Natural Resources”114.

Visualising it from the perspective of a partnership there is a lack of institutional communication which should be implemented, the participation which has grown in the last year is still realised for its majority in an informal way. While the Environmental Authority, always a sector of the regional administration, participates in the monitoring committees as an institutional partner, there is a lack in the involvement of other participants at different levels. The centres where this practise is realised not always are institutionalised and even when they take place unfortunately, this does not mean that for each subject concerned with environmental matters there is structured organisation.

From this point of view Agenda 21 Locale112 is a really interesting experience. After the promotion of this instrument by the Ministry of the Environment the Region decided to follow this way of acting by financing, with Regional resources, the establishment of other experience of AG21L113. Due to this intervention the Region has promoted formal occasion with the Administrative level of Provincie to develop a coherent way to act with those kind of intervention.

Nevertheless if this represents an important effort of the regional administration it could not be seen to be sufficient. Actually AG21L acts mostly at a local level, municipality, so that it would be advisable to improve the interaction with those subject mainly involved in the process of acting his intervention. The results achieved in terms of partnership have been made directly by these subject through the construction of national and regional network. The local union so generated shows a concrete need of the civil society which would be implemented by the administration even to share the environmental items and to construct a EP policy that could match the community requirements on one side and those of the territory on the other.

112 Agenda 21 Locale promotes a process of bottom up awareness in terms of environment with a strong involvement of local population, in order to preserve, enhance and valorise the value of the local environment. 113 At this time is not possible to show the data referred to this regional call for proposal because the evaluation process is still going. 114 This Asse I of POR Sardegna forecast 8 measures of intervention.


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The amount of resources for the period is about 1.072.510.000,000 €. The measures are all financed by the FEDER concerned with the training by the ESF and one by the FEAOG.

POR Sardinia foresees terms of a global strategy the co-ordination of the following: environmental matter of urban environment, water, marine and coastal environment, soil and subsoil, rural and mountain environment, waste, technological strength, natural environment and biodiversity, cultural heritage.

That means at programming level there is a more concrete consciousness about the necessity to make real co-ordination between policies and those responsible for their implementation.

What is necessary to go deepen in the process is try to start to transfer these intuition in real operation.

Direct income derives from the realisation of LIFE projects in the Region. This experience can be monitored only by using quantitative information about the money allocated in the Region through this programme, the territory does not have a clear perception of the capacity of these projects to develop a sustainable employment condition. The approved projects has given to the Region about 4,5 million € since 1994 with 10 projects financed where Sardinia results as prime contractor.

In conclusion another source of financing as we have said from Agenda 21 Locale, are national and regional financial resources. The amount of resources provided by the 2 national call for proposal and by the regional one is about 26 M. € divided as follows: 1st national call 12,9 M. €, 2nd national call 13 M. €, 1st regional call 504.000,00 €.

At the end of the 80s, the first elements of a R&D support structure, Consorzio 21, a business support body115, and CRS4, a research centre116, were set up thanks to Regional Law 268/74 (‘2ndo Piano di Rinascita’). The Law also promoted the idea of establishing a

Until today the Region has had nine experiences of AG21L an other 8 will be financed by the regional call for proposal while there is no certainty about how many will be financed by the Ministry in this second phase. However the Region is satisfied by the improvement of AG21L and by the reply of the territory and will follow this method of intervention consistently with its internal financial resources.

Another remarkable result concerning AG21L and LIFE projects is the territory level interested those kinds of programmes go deepen on the local level by developing the capacity of making projects of Provinces and Municipalities.

R & D POLICY

The first steps towards the definition of a R&D strategy in Sardinia date back to 1983, when 2 protocols were agreed between the Giunta Regionale (regional government) and the 2 Universities of Cagliari and Sassari. The objective was to coordinate research activities in the island, and relate them to the objective of regional development.

115 Consorzio 21 was established through Regional Law N.21 (23 August 1985) which implements art. 12 of the ‘Piano di Rinascita’ (Law 268/1974). It is operational since the end of 1989. Its activities are diversified: it provides assistance to SMEs, supports the introduction of new technologies, and holds shares in high tech start ups. It is at the origin of Polaris and is in charge of its management. It also drew the ‘Piano Regionale per la ricerca e lo sviluppo tecnologico’ (see below). 116CSR4 (Centro di Ricerca Sviluppo e Studi Superiori della Sardegna) is a multidisciplinary research centre focused on the ICT sector. It also provides companies with services in the field. As noted by one interviewed, the establishment of CSR4 was a political choice by the Region, a real challenge (?).


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Scientific and technological park with the main objective of developing links between universities and enterprises.

During the 90s, Structural Funds provided the decisive financial support to make these and other initiatives in the field of research and innovation operational. Over the 89-93 programming period, a Global Grant of 6.9 millions euro (13.5 billions ITL) funded the establishment of Consorzio 21.117 The PIM (Programma Integrato Mediterraneo) contained many R&D-related measures as well; one of which financed the establishment of BIC Sardinia.118

• Measure 4.6.4.2 financed various projects involving companies and research institutes like ST Microelectronics (then SGS Thomson, the project ‘CLASS’ had a budget of 11.3 M €), CSR4 etc. It also helped generate Neuroscienze, a spin off from University (with a grant of 5.1 M €), and Hydrocontrol (with a grant of 1.5 M €). Overall, around 54 M € were spent.

Concerning the 1994-99 period, two measures of the POP (Programma Operativo Plurifondo) made an important contribution to the establishment of a “regional innovation system”.

• Measure 4.6.4.1 of the POP enabled to finance Polaris, the Technological and Scientific Park of Sardinia, an initiative of Consorzio 21 (46.4 M €, the majority of which financed by FERD). Polaris was set up in two locations: Pula (near Cagliari) and Sassari-Alghero;

Funding for research also came from the Community Initiative ‘PIC PMI’ (SMEs). With a budget of 3 M €, Measure 7.5 funded 33 projects promoting collaboration between SMEs and Universities. Projects thus financed had small budgets; they were located mainly in the Cagliari area and concentrated in the agro-food industry.

Funding tended to be concentrated on the same beneficiaries, and in the same areas (Cagliari and some other urban poles). It followed a logic of supply of technology rather than respond to demand by companies (except perhaps for the PIC PMI). For example under Measure 4.6 of the POP, projects were already identified and no call was organised. In general, the focus was very much on infrastructure and the establishment of relations between academic research and enterprises (science park, incubators ..). Among positive features characterising Structural funds RTD policies, one can note the relatively good level of (informal) “concertazione” (cooperation) between Universities and companies at C21 and Polaris.

On the face of it, there are few measures in the field of human capital (education and training, awareness measures… ) which is one of the main weak point of the Sardinian ‘innovation system’.

At regional level, initiatives to promote R&D comprised:

• Regional Law 50/93 funded various research projects, benefiting to CRS4 (7.6 M €) and Consorzio Biotecne (1.5 M €)

117 The Global Grant was entirely financed by Structural Funds. 118 In particular, Sub-programme 2 ‘SMEs and craft’: Measure 3 ‘Advanced services to SMEs’ which funded the establishment of the Business Innovation Centre (BIC) – Sardegna; Measure 4 ‘Applied research and technological counters’.


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• a call (5/09/1997) with a total budget of 22 millions euro of which 14.4 millions were covered by regional source funded 34 research projects in areas such as environment, biotechnology, ICT, and materials.

• Regional Law 24.12.1998 N. 37 made available incentives to industrial research, technology transfer and services to companies (used mainly for CRS4 and Polaris).

• Together with the Italian Ministry of University and Technological and Scientific Research (MURST), the Region finances a plan for Radio-astronomy (MURST: 31 millions euro, Region: 5.5 millions euro).

• A Regional Programme in favour of Biotechnologies applied to the human genome was approved by the Giunta Regionale (Directive n.17/10, 11/04/2000).

Participation to the 4th and 5th Framework Programmes of DG Research (FP4 and FP5) was not negligible but it hardly compares with the importance of Structural Funds and other regional and national sources of funding. Over the 94-99 period, one can roughly estimate the contribution of Structural Funds and Framework Programme to around 90% and 10% respectively.

In FP4 (1994-98), six projects were presented by Sardinian partners as Prime Contractors.119 Three of them were in fact individual fellowships at the Universities of Sassari or Cagliari. Sardinian partners participated to other 47 projects as normal contractors.

In FP5 (1998-2002), the number of projects led by Sardinian partners as Prime Contractors rose to 19, and that in which Sardinian partners participated as non prime contractors to 59. Among the former, five projects were individual fellowships, six were carried out in the IST programme (Information and Science Technology), and five in the Life Quality programme. Total amount is around 14 millions euro (of which approximately 650 000 euro for individual fellowships, 7 millions euro for IST and 3 millions for Life Quality).

With a grant of up to 2.4 millions euro, FP5 served to finance one very important project taken at the initiative of the International Marine Centre in Oristano, which establishment itself was co-financed by a European programme, STRIDE, and a regional grant120 (overall 1.3 millions euro).

TAB 2.2 FRAMEWORK PROGRAMMES SARDINIAN PARTICIPATION Number subsidiary

contractors 6

Fifth framework programme (fp5)

19

Number of prime contractors

Fourth framework programme (fp4)

47

59

Participation by Sardinian partners to other EU RTD programmes as recorded in the Cordis database121 is as follows:

Energy

− 6 projects as Prime Contractors (PC) for a total of 2.7 millions euro

− 1 project as non PC (310 000 euro)

119 The total amount is not available. 120 See Law 2/94. 121 See www.dbs.cordis.lu.


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Environment

That FP is still a small source of funding is disappointing. FP participation is more difficult to obtain and is indeed a sign of excellence. More importantly, it is the way to follow as this is going to be the unique Community source of funding after 2006. One could think about mechanisms to encourage participation to FP, for example, regional aid could be linked to the capacity of obtaining FP funding.

− 10 projects as Prime Contractors (PC) for a total of more than 4 millions euro

− projects as non PC

International Cooperation

− projects as Prime Contractors (PC) for a total of approximately 110 000 euro

− projects as non PC

It is worth noting that there is no Sardinian participation in the ‘Information Society’ programme although this is an important policy priority. Also, the CRAFT programme (5th FP), destined specifically to SMEs, funded virtually no project in Sardinia.

Since 2000, the principal instruments and sources of funding of an R&D policy in Sardinia are:

• Programma Nazionale della Ricerca (PNR) approved by the CIPE (21-12-2000). The FAR (Fondo per le agevolazioni alla ricerca – Funds for research incentives) was made operational in this frame as of 2001 and represents now an important source of funding at national level.122 The FAR is provided for by a National Law 297/99 which is notified as State Aids.

• Programma Operativo Nazionale (PON) “Ricerca Sviluppo Tecnologico Alta Formazione” over the 2000-06 period. This gave rise to a “Protocollo d’intesa MIUR – Objective 1 Regions”, an important element in the coordination between regional and national R&D policies which is supposed to guarantee synergy between the PNR and the PON.

• Programma Operativo Regionale (POR) in which Measure 3.13 (with a budget of 82 millions euro) is supposed to finance the operating expenses of Polaris as well as the implementation of the “Regional Plan for Research and Technological Development” approved in December 2002. In 2003, however, there was still virtually no money spent for R&D as stipulated in the POR. The reason has to do with an inadequate legislative background, namely, the lack of a General Law for research in conformity with the State Aids regulation (Legge Quadro notificata) which would enable to go beyond the ‘de minimis’ restriction.123 As a result, funding for Polaris is subject to reconduction on a yearly basis.

• Recently, the Commission approved 1 million euro for a regional programme of innovative actions, DIESIS, which should attract additional public funding. The objective is to improve the conditions of implementation of the Information Society in the island.

122 Decreto Ministeriale 297/99 Establishing procedures for the sustaining of scientific and technological research and for the dissemination of technologies and researchers mobility, (G.U.R.I. n. 201 27th august 1999) made operational in 2001 with the Decreto Ministeriale 593/00 Procedures for the attribution of financial facilities according to Decreto Ministeriale 297/99 (G.U.R.I. n. 14 18th January 2001). 123 Max 100 000 € in 3 years.


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• Participation in the VI Framework Programme.124

Overall, Structural Funds remain the most significant source of funding, but regional rigidities and obstacles impede to reap the full benefit of them, as illustrated by the “Legge notificata” issue. In this context, national sources of funding, rather than other CP (FP6), have become increasingly attractive.

R&D policy in Sardinia is characterised by difficulties in the definition of competence.125 For example, while Consorzio 21 should be a technical unit of the Regional administration in the field of R&D, it actually found itself in the position of quickly drawing up the ‘Regional Plan for RTD’ whereas it is the “Centro Regionale di Programmazione” which is in principle competent in the matter.

Coordination between national and regional levels of competence can also be problematic as shown by the difficult application of the Protocollo d’Intesa (coordination between the PNR and the PON). A more specific illustration of the difficult coordination between the regional and national level of decision-making is given by the case of Atlantis which benefits from a substantial (some would say an excessive) amount of public national subsidies.

Concerning coordination between R&D and other Community policies, little effort is made to coordinate the different initiatives, for example Structural Funds and Framework programmes. In fact, Structural Funds represent the main source of funding of Community origin, and as such, little is done to ensure complementarity with other initiatives. The regional innovation strategy in particular is largely assimilated with (and ascribable to) Structural Funds. Sardinia has not adopted a RIS or RITTS, and the ‘Regional Plan for RTD’ was entirely structured in the context of the POR. As to other CP, it is not clear whether the R&D policy always contributes to their objective. For example, the definition of 4 ‘Local Production System’126 which are privileged targets of policy intervention tend to a concentration of resource which can take place at the expenses of an homogenous development of the Sardinian economy, both territorially and sectorially.

It is difficult to relate CP in the field of R&D to progress recorded with respect to convergence and growth of the region. Certainly, without the contribution of Structural Funds, there would be close to no ‘regional system of innovation’ at all; to be precise, no institution forming this innovation system would be in place.

As a concrete and specific example – even if controversial127 – of the contribution of CP and SF in particular, is the success story of Tiscali, an Internet Provider based in Cagliari among the biggest in Europe. The success of Tiscali can – indirectly – be attributed to Structural Funds, as the company was born as a spin-off of CSR4, which itself was established thanks to Structural Funds.

That said, it is difficult to conclude in general that absorption and innovation capacity has increased in the region as a result of CP. It appears in fact that efforts in terms of infrastructures remain rather concentrated in the main provincial urban centers (Cagliari, Alghero Oristano and Nuoro), and that beneficiaries of SF form a limited set of successful companies (Neuroscienze, Shardna, … etc) that benefit from large public subsidies. On the face of it, new SMEs which could avail themselves of FP measures (like CRAFT for example)

124 No evidence is available yet concerning Sardinian participation. 125 Some interviewed persons suggested that it is maybe even a problem of incompetence... 126 They are defined in the ‘Regional Plan for RTD’ as ICT, Biotechnology, Agro-industry, and Tourism. 127 Alternatively, Tiscali can be considered to be one of the few illustration of a real spontaneous initiative, successful despite the numerous obstacle of an administrative nature.


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do not do so. R&D policy in Sardinia remains characterised by rigidity and a centralised top-down approach. In this context, one can hardly say that CP contributed to promote an even distribution of knowledge in the region, both amongst beneficiaries and territorially.

However, due to these considerations there is no doubt in saying that the achievements made in terms of transport have contributed, at general level, to the development of the Region.

The Region has made significant steps in terms of improvement in connection with the exterior especially in the airway sector with regard to transportation people at even if the system had to wait a long time before the process succeeded. The achieved results allow people to travel with really competitive fares, that means the lower the fare the more people move crossing the regional border. It is not possible to observe the same situation in relation to goods. Allocation of financial resources has been tried with respect to the movement of goods but it has never been possible to achieve this expenditure due to political problems. The more significant intervention made in this sense is the realization of Porto Canale thought as a competitive structure for the movements of goods established in the centre of the Mediterranean sea with the purpose of making Sardinia the centre and the main passage of the majority of the exchange of goods. Porto Canale has been financed by the Cassa per il Mezzogiorno129 and it has never functioned like it was supposed to do due to political, administrative and managing reasons. Its management is starting now, long after its realization and it is still supposed to be a good chance for the economic development of the Region on the way to the convergence.

Nevertheless there is no possibility to talk about a situation of a really improved regional growth in accessing other spaces of economic activity.

TRANSPORT

Firstly it is necessary to point out that a territory needs a wide range of development preconditions to improve its development. As we have already said Sardinia lacks some of these preconditions, such as transport and energy. This means that in the Region the first step towards development has to be concentrated in the creation of these basic conditions. That is why it is not completely possible to talk about TEN – T policy like a policy as a whole. In fact at regional level we still have to consider the TEN – T policy as a sectorial policy.

It is not possible to proceed to the design of a policy at regional level irrespective of the Community framework. So that even in the transport sector there is this awareness in trying to plan a local strategy of intervention. In 1993 the Region produced its first Plan of transport approved by Regional law128 in accordance with the national one. This Plan has to be written up every five years and has the purpose to design the strategy which has to be implemented at Regional level. So that it is possible to observe a growth in planning arranged with a global setting.

Diverse is the condition according to the internal transport situation even if a lot of progress waited to be realized. For instance the Region shows a peculiar situation in relation to the railway which is not developed at all in terms of kilometres and because of the lack of electric railway. The movement of goods inside the Region is mostly made by private transport, such as trucks, with an interesting impact on the environmental sustainability.

128 Regional Law n. 32 “Piano regionale dei trasporti e pianificazione del trasporto di interesse regionale” (B.U.R.A.S. n. 31 august 1993. 129 Cassa per il Mezzogiorno extraordinary intervention of financing nature in order to promote the development of South of Italy. Established with National Law n. 646 10 august 1959 (G.U.R.I. n. 200 1st September 1950).


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Moreover this underlines another lack in terms of coordination between policies namely between transport, energy and environmental ones. What is necessary to point out is the absolute absence of structural financing in this sector considering the period analysed (’80/93, ‘94/99) while there is a positive intention in this sector in the present programming phase (2000-2006).

But facing this situation which does not seems really positive one consideration has to be made: the intervention realized is not sufficient to resolve the difficult situation of under development of the Region but this is not absolutely true because in relative terms significant steps have been made to start improvement in the competitiveness of the Region.

Achieved results can be seen from the point of view of overcoming physical barriers, isolation and insularity mostly made in favour of the people where there are still needs of a more homogeneous and structured interventions, whereas significant steps have to be made to achieve similar results concerning movements of goods in order to improve better economic conditions and a growth in terms of economic competition.

The main social impacts can be seen in the increasing of the capacity of movement of people especially within the exterior and starting in 2001 with the benefits granted by Continuità territoriale130. The Continutià territoriale is made possible by a huge amount of money of approximately about 36 M € which allows people to move thanks to a very low competitive fare. These results have not been reached in the sector of movements of goods. However this means that a real improvement is not achieved in the conditions of economic growth and competitiveness of the Island.

Some interesting steps have been made concerning the internal, urban and extra urban, transportation which allows more comfortable conditions in public transport talking about a more competitive bus system and private transport with the realization or completion of roads.

The sub programme Communication of the POP 1989 – 1993 established to measures “Minor Viability” and “Intermodal Centres” oriented to support socio and economic integration between the different areas of the Region with an amount of resources of about 30,494 million ECU. The past programming period, POP 1994 – 1999, in terms of communication established measures dedicated to the realization of extremely important roads implementing the connection system with an amount of resources of about 372,571 million ECU.

As seen there is a lack of coordination between transport and environmental policies. The enhancement of the railway system is necessary due to the problems derived from the almost exclusively use of roads and to lower the pressure on the environment concerned.

However, the Region suffers disadvantages deriving from its geographical conditions. That is to say there are some areas which result difficult to reach and in respect of which it is substantially difficult to implement the transport system in terms of new infrastructures (such as roads, connections between them, ect.,). Perhaps the main implementation goes in the direction of the biggest connection channels as it has been done with State Road 131 (which cross the Island from the south to the north) or 125 (which moves on the east side coast of the Island).

130 Continuità territoriale means that Sardinian people can cross the sea border to reach the continent with a special plain fare. The financial resources used to make it possible are financed by State Aid. National Law n. 144 art. 36 Continuità Territoriale per la Sardegna e le isole minori della Sicilia dotate di scali aeroportuali (G.U.R.I. n. 118 22 May 1999 - Supplemento Ordinario n. 99).


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Regarding energy we can say that Sardinia is the one of the last Regions without a methane pipeline that means a cut off from some advantages deriving from new sources of energy. The price of energy is still too high either for domestic and economic use.

Sardinia is far from using systems to renew energy and even far behind from using alternative sources of energy which could be exploited through the natural resources of the land such as sun and wind. Nowadays the Region is creating a plan of intervention in terms of wind power which will take some times to be implemented. In terms of connection between policies and in particular between energy and transport it is necessary to underline the lack of use of electricity in the already inefficient railway system.

STATE AIDS

State Aids policy will be able to strengthen in a positive sense the socio – economic cohesion of the Region, but sometimes it is likely to be in contrast within the competition rules of the common internal market. The result listed in the analysis about State aids has shown a high variety of funds.

What has been realised in terms of energy with past programmes has been made not in terms of improving transport but in terms of enhancing agricultural productions and supporting infrastructures for economic activities. The resources of the two measures identified by POP 1994 – 1999 were 24 million ECU for the first measure and 400 million ECU for the second.

Finally the main part of financial resources is settled in the Operational Programme of the Region for 2000 -2006 with only two measures dedicated to transport: namely the 6.1 Sardinia plurimodal Passageway – Continent and 6.2 Access and mobility control in the major urban context; one measure is designed for the energy the number 1. 6 – Energy focused on hydro electric power; while two measures are dedicated to communication the 6.3 Information society and the 6.4 Training for Information society.

Regarding telecommunications, only some considerations can be made. In fact, telecommunication achievements are attended from the realization of the interventions planned in this phase of Structural Funds 2000 – 2006. That means until today there has not been a concrete intervention in the sector and neither a definite strategic plan of intervention. Today, due to the evolution of telecommunications there is the consciousness about the implementation of immaterial connections which will take place through the realisation of Information society. The Operational Programme 2000 – 2006, due to its relevance, allocates altogether to the actions of Information Society development of about 3% of the total amount of Structural Funds (136.294.000 Million EUROs) for the period concerned identifying two measures the 6.3 - Information Society and the 6.4 - Training for the Information Society. The main objective is the high speed dissemination in the society and the capacity of using computers and the new data transmission instruments, the renewal of Public Administration, in particular regional and local, using information technology by the SMEs.

In conclusion during the last twenty years the Region is characterised by a growing in terms of implementation in the transport sector and achieved results. Nevertheless more achievements could have been made especially in capacity improvements concerned with planning and implementation.

Starting from the point that social and economic conditions of Sardinia are still weak, the contribution that State Aids policy provides seem to be quite deeply developed.


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This range covers different kind of situations which had been widely spread in the EU. In fact diverse necessities were faced with a number of possibilities that had been able to cope with the current problems of the extreme and considerable environment observed in Europe. In the part dedicated to Sardinia has to look toward various problems.

State aids were forced to intervene commonly in the poorest side of the economy without the possibility of improving a condition which could have been considered excellent. Therefore, many of the aids do not have a long term development plan but are dealing with problems normally connected with calamities (drought, wind, heavy rains, storms, epidemics) or bankrupt companies which require fast and short term financial plans. This might mean that, in general there is a lack of strategy which could express a strong disposition to future advancement.

Taking into consideration the categories financed it is possible to see that in the part dedicated to the agriculture aids the main section is linked with calamities and, obviously, the duration of the finances covers only the repayment of the problems caused by those disasters mentioned. It conveys that there is not a plan which is made to protect agriculture out of the varieties shown and the rapid times required. The other main category is dedicated to the companies and to SMEs, in particular. In this case as well, it can be noted that the finances are enforcedly dedicated to the companies problems, with their request to be protected and helped in case of economic emergencies. It must be observed that, obviously, in this case the system came across other kind of economic funds that are made to plan product conversions or finances for a potential development of the Italian SMEs. It covers, normally, a period of 6 years in relation to the length dedicated to the development in European projects.

On the whole, we must admit that the finances dedicated to the categories listed do not seem to cover the problems of a strong and steady development. The aids analysed seem, on the contrary, a sudden way to face circumstances which should be faced widely considering not only the general and sudden problems but also the situations dedicated to the general future improvements. Furthermore, even if we can find a part of the funds dedicated to the SMEs progress, it seems to be a small part in comparison with the space dedicated to the aids mentioned and involved in the disaster area. If the sector dedicated to the employment can be the other positive side of the matter the condition should be

The other aids are dedicated to fishing, breeding and employment. While the first one is linked with European finances with a long duration up to the 2006, the second one is also linked to catastrophes with short duration finances. Finally, the segment which deals with employment, in contrast, had planned a long time period of aids (1994-1999) for the enlargement of the regional social employment.

More or less the beneficiaries which receive the finances are normally represented by little farms or, in general, SMEs, which need help with the damage of cultivation and livestock due to environmental disasters or need money to save productions and, to develop a better expansion in the local market. The presence of these kind of extreme weather conditions are not strange for the Region but it seems to force a general concentration to the efforts to work them out before planning anything which would be useful to avoid this condition.

The finances are dedicated mainly to the little realities, which are not able to cover different conditions without any help. It suggests that the problems faced are difficult to be forced involving the aids to dedicate the most part to this section of the market. It gives the impression, also, that this situation is spread in all parts of the aid without any difference or change. Only the development of SMEs seem to have a part exclusively dedicated to the future development but is a little component in comparison with the whole amount dedicated to the aids.


548

FIRST DRAFT REPORT

considered in the wide range of opportunities the could be offered to the regional population for a better local economic growth.

The first annexed table, TAB. 2.3, shows the situation of State Aids amount that was notified to the European Commission. This specific table on aid data covers all aid specifically earmarked for the assisted regions. But what is disapprovingly necessary to underline is that those data are not able to be a sign of how much aid actually went to the assisted region, in terms of the final beneficiaries of the aid. The easier example is the difficulty of estimating, from the given data, how much aid from national schemes was allocated to Sardinia. So that the usable information is simply how much aid (schemes and ad hoc aid) was specifically earmarked for Sardinia. This framework would lead to a misinterpretation as to what exactly it represents so that it must be clear that a certain kind of attention has to be given to the meaning that SA could represents for the Region.

One interesting situation concerning the subject in the Region is embodied by the agricultural sector. The agriculture sector in the Region is completely governed, except for infrastructures, by the aid system. Regional Law 21/2000131 established a regime of aids for all the compartments leaving out only agritourism and apiculture. What is interesting to observe is that referring to this law European Commission stated that article 21 of the law which gives contributions to Sardinian farmers to reduce production costs derived from the use of different sources of fuel different from methane is incompatible with the internal market. That is to say by artificially reducing costs production means an artificial improvement of production capacities and competitiveness of the beneficiary farmers in respect to those who cannot benefit from the aid and have to face the entire cost or moreover try innovative solutions to reduce them.

Another interesting thing to point out concerns the regional aids granted through the mechanism of the “de minimis” rule which is mainly applied to the major economic system of the Region. The application of de minimis due to the amount of contribution, a maximum of 100.000 € in three years, does not have to be notified to the Commission so that results that are quite difficult to analyse in real terms of developing the market by the creation of stable conditions and sustainability. Therefore sometimes it could be complex to understand whether it results functional to the development of socio and economic conditions or not. For instance through this instrument some Municipalities are trying to reinforce the productive system sustaining the increase of the local SMEs market132. The results which will be achieved could be measured only in the long period when the market will show if these new activities will still be operational.

Unfortunately neither a national or a regional register on State Aids exist so the estimation on their capacity to influence the regional development or in what direction is quite difficult. Nevertheless the amount of money distributed on the territory is really extraordinary.

Accordingly to this interpretation about the provision on how to read data, TAB.2.4 cal lead the reader to the same conclusion about the huge amount of money settled on SA.

What unfortunately is easier said than done is to compare the total volume of financing by Structural Funds and the volume of State Aid received in the Region during the same year. As could be noted by the annexes to this work is that most of the time the notified

131 Regional Law 21/2000 “Adeguamento delle provvidenze regionali a favore dell’agricoltura agli orientamenti comunitari in materia di aiuti di Stato nel settore agricolo e interventi a favore delle infrastrutture rurali e della silvicoltura” B.U.R.A.S. n. 35 of 17th November 2000. 132 Regional Law 37/1998 “Norme concernenti interventi finalizzati all'occupazione e allo sviluppo del sistema produttivo regionale e di assestamento e rimodulazione del bilancio” B.U.R.A.S. n.39 24th December 1998.


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FIRST DRAFT REPORT

State aids last a period of time that is the difficulty to divide the precise amount established per year.

The other reason, as said, is about the notified national State Aid because of the complexity to determine to what extent they have an interesting outcome at regional level.


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FIRST DRAFT REPORT

TAB. 2.3 STATE AID IN ITALY 1990 – 2001

MILLION CURRENT EURO 1990

64,3 74,4

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Aid exclusively earmarked for sardinia

62,9 152,2 60,0 149,6 53,8 79,3 73,2 95,3 82,2 110,1

Aid definitively not to sardinia*

2.898,9 1.713,1 2.703,9 905,4 858,4 3.101,3 2.912,9 1.802,2 3.683,7 1.143,3 2.220,9 896,5

Aid earmarked for a regions of which part may have gone to sardinia

9.131,2 3.906,0 6.676,2 6.257,8 6.188,2 4.731,8 7S.457,6 5.931,5 5.641,9 2.267,9 2.053,5 1.997,1

National aid of which part may have gone to sardinia

2.488,7 763,8 2.418,7 2.199,8 1.953,3 1.538,5 1.057,6 1.086,4 1.159,5 865,2 1.424,0 1.235,9

TOTAL AID** 14.583,1 10.870,9 11.313,8 11.302,8 9.332,8 10.371,3 10.781,0 8.019,1 7.065,3 4.023,5 4.465,1 4.201,6

* earmarked for regions other than Sardinia or Ad Hoc aid

** total aid less agriculture, fisheries and transport Source: European Commission DG Competition

The Scoreboard covers national State aid as defined under Article 87(1) EC Treaty that is granted by the fifteen Member States and has been examined by the Commission. Accordingly, general measures are not included in the figures. For example, a general tax break for expenditure on research and development is not considered as State aid although it may well appear in Member States national budgets as public support for research and development. Furthermore, Community funds and instruments are also excluded.


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TAB. 2.4 AMOUNT OF NOTIFIED SA* SECTOR AMOUNT

Agriculture € 592.212.730,67 Breeding € 43.807.512,00 Fishing € 27.011.000,00 Companies - smes € 703.900.000,00 Employment € 826.000.000,00

TOTAL € 2.192.931.242,67

* The period covered by the SA analysed in this table is until 2006 Sources: our elaboration on DG Competition data

In conclusion the analysis shows a lack of coordination specifically due to two order of reasons:

• the massive utilization of the de minimis rule;

• the amount of given contribution of SA due to natural calamities.

Whether these two factors are obviously and generally important for the economy of the Region, it is necessary to consider that on one side applying the de minimis would imply a distortion of market condition. The Common Market is characterised by competition rules so that the support granted in this way to regional farms or SMEs would falsify it. On the other side SA granted on contingency situations such as drought will allow the production system to give solution to a non permanent condition so that it would not seem to realise the purpose of contributing to regional development in the long term.

At programming level a sort of co-ordination is perceptible with the regional policy because of the presence in the POR of measures which imply the use of SA, but this does not signify a real co-ordination in terms of actuation which is clearly demonstrated by the failure of the various office in charge of implementing the programme.

3 GENERAL IMPACT

The impact of CP on growth and convergence in Sardinia is difficult to assess in general quantitative terms. In view of the mediocre performance recorded by the region in this respect, the best one can say is that things would have been worse without CP, a general common opinion expressed by the interviewed persons. There is little doubt for example that CP and Structural Funds in particular made a precious contribution to tackle specific issues like the lack of infrastructural pre-conditions to development. What is more, in certain fields like R&D, there would have been very little progress without the Structural Funds. However, the overall sums engaged appear small to be able to substantially influence the regional growth trajectory.133

On the face of it, from a qualitative perspective, CP have indeed made some decisive contributions, introducing some fundamental ‘cultural changes’ in policy-making such as the practice of evaluation and of control of spending.

133 They were sufficient, however, to raise the GDP/capita with, as a result, the loss of Objective 1 status as of 2006.


Still from a qualitative point of view, it is interesting to note that Single Market policies which have no direct financial counterpart and are hardly acknowledged as Community policies at regional level, have certainly had some significant consequences as well. The introduction of a single currency with a relatively strong exchange rate in a region characterised by rather low living standards contributed to make Sardinian products more competitive in the mainland and abroad while imported goods and material became dearer. This has probably accelerated processes of industrial reconversion and restructuring (e.g. in the mining sector). Also, other related aspects such as the introduction of products quality norms can help strengthen Sardinian position on certain ‘niche’ markets of high quality and typical products. Finally, the decrease of transaction costs associated with the establishment of a Single market can prove particularly decisive to overcome the disadvantages caused by Sardinia’s insularity. Overall, there are good reasons to believe that Single Market policies have contributed to strengthen Sardinia’s competitiveness. However, this is not enough to conclude that effects were positive as far as cohesion is concerned.

To sum up the impact of CP, the following table reports an assessment of each policy with respect to three objectives: external competitiveness, intra-regional cohesion, and ‘external’ cohesion with other regions in Italy and Europe.

TAB. 3.1 CPS AND REGIONAL COHESION CAP ENVIRONMENT TEN-T R&D

STATE AIDS

SINGLE MARKET

External competitiveness

+ ? + + - ++

Intra-regional cohesion

+ ? ++ - ? -

Cohesion and convergence

+ + + ? + ?

4 GOVERNANCE

Sardinia has the status of ‘Autonomous Region’ which implies that it has competence over an extended range of items. One important implication is that national laws have to be translated into the regional legislation. This ‘specific status’ of the island is paradoxically a source of difficulties, as it sometimes blocks the laws which are necessary to go ahead and implement policies (see the example of “Legge quadro” in R&D as well as other examples in the field of environment).

Before 89, competence with regards to Community Policies was under the authority of the ‘Office for international relations with the EU/CEE’. Over the 89-93 programming period, competences were divided between different administrations. At the beginning of the 90s, the ‘Office’ was still in charge of the PIM, PNIC and POP, but the “Centro Regionale di Programmazione” (CRP) became responsible for the design of the policies. It was doing so following recommendations by the Secretary of the “Comitato di Sorveglianza” (himself attached to the CRP). The “Presidenza della Giunta” was in charge of coordination. In the 90s, all the competences were progressively moved to the CRP who was not only responsible for the design of the policies, but also for their management, monitoring, financial monitoring, and coordination. This concentration of competence can be considered to be a solution to coordination but it might also betray a lack of competences in the administrations and Assessorati.


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The lack of a staff knowledgeable in Community-related issues is a serious shortcoming, which was aggravated in 2001 by a drastic reduction of personnel at the CRP.134 The consequence is an overburden of work forcing the CRP to work in an atmosphere of daily emergency impairing its capacity to adopt a long term view. Hence, if a ‘learning process’ could be said to have taken place at the CRP from one programming period to another during the 90s, it was suddenly brought to an end beginning of 2000.

Some “cultural changes” in policy-making terms – some of which were radically innovative – have been introduced thanks to Structural Funds. For example, a notion like the control of spending started to be applied in a context where the concern was more to spend, no matter how and with what results. Also, concerning cooperation and partnership, a more active and formalised participation of social partners in the design and monitoring of policies is to be noted. In particular, social partners and other actors interested by the implementation of CP are invited on a regular basis at the Monitoring Committee (Comitato di Sorveglianza) in charge of CP.

Some CP proved to be very successful in promoting cooperation and partnership at local level as well. In this respect, it is worth noting the contribution of LEADER II (see Section B above). Through the establishment of Local Action Groups covering 80% of the territory, LEADER offered a concrete opportunity to local actors to learn how to cooperate and establish partnerships, sometimes even with partners abroad. This is a particularly valuable outcome for zones characterised by a low density of population.

As to private / public partnerships, it appears that co-financing by private agents remains generally quite low (see Table 10 in Annex).

There is progress towards more communication and transparency about CP and related activities, at least at the level of the Regional administration. However, this is not systematic at local level, where local administrations, and actors might not be aware of CP opportunities (in fact, this depends to a large extent on the programme concerned).

In general, because of a long tradition, and because of partially inadequate (human) resource, the functioning of the administration remains characterised by excessive rigidity and bureaucracy.135 However, there is also some evidence of flexibility which owes much to the individual initiatives of some ‘enlightened’ civil servants, and testifies to a certain degree of inventive capacity of the Administration (see the vademecum example in the Coordination section). Overall, as noted on the occasion of the Mid-Term Evaluation of the POP 94 – 99, there is a real difficulty in bringing together the people and administrative bodies in charge of CP so a to form a ‘system’.136

5 COORDINATION

We can talk about coordination in two different ways.

Firstly it is possible to describe coordination in terms of exchange between administrations in charge of programmes and policy implementation. Secondly we can observe coordination between policies as sectorial interventions.

134 Motivated by political reasons. 135 The example was given of a procedure of 2nd control level which in principle requires the monitoring of 5% of a panel but ended up with the actual control of 17% of the panel. 136 See the Mid Term Evaluation Report of the POP 94 – 99, op.cit.


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In relation with the first point, the regional situation is characterized by a central model of programming. The regional administration is in charge of it and it appears quite difficult to implement a real coordination at the programming stage. The reason is that, sometimes, the Region lacks the right competences at all levels in order to define programmes, and the central regional administration needs to tackle this lack.

Some other times, this is more specific to the regional situation, each sector works on its own, carrying out its specific tasks without positioning this activity in a more complex framework which is the most important intend of the whole regional development system.

Another illustration of the difficulty of coordination between administrations in charge of CP is given, this time transnationally (and not only regionally) by the management of the INTERREG programmes. These were said to pose considerable difficulties in harmonising the different administrative traditions and procedures in the countries concerned, resulting in insurmountable dialogue and sometime even the freezing of expenditure.

In general, it is necessary to point out that in most cases the community dimension is completely associated with the structural funds interventions so that a significant part of policy could be left out from the development process.

In this sense it is interesting to note that not all the CP investigated show a real and correct implementation. It is true that nowadays it is not possible to organise a set of interventions without considering a general Community framework. But this fact is not always verified at the implementation stage which as a result is neither homogeneous nor integrated. That is to say that CP, where implemented, function in a non coordinated way.

Even from the point of view of management, there is evidence of some problems, but it is also interesting to see the progress made by the regional structure as a whole. The system has learnt from the past experience in terms of acquiring knowledge related to the process, the management itself, but there is still a long way to improve it.

To facilitate this process the central regional level is working on the realization of a vademecum in order to give instructions to those in charge of the management at the administrative levels in order to support them and the system itself.

Nevertheless is worth saying that results are met in terms of involving representatives of social and economic actors at the stage of programmes design and in monitoring committees. This means the achievement of a good level of participation of the whole system concerned with the policies realization on the ground and a growing awareness about the Region’s needs to concretely focus on the implementation of development paths.

In the following table, it is proposed to sum up evidence of potential synergy (S) and actual conflict (C) between the different CP as identified in Section 2.

ENVIRONMENT R&D SINGLE MARKET

TAB. 5.1 CPS INTERACTION CAP TEN-T STATE

AIDS CAP S S - S / C C ENVIRONMENT S C TEN-T - -

- - S - STATE AIDS S / C - - - C SINGLE MARKET

? - S - S / C

S - (S) - - -

R&D -


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In the past, the main difficulties were to actually spend the money associated with CP in general and Structural Funds in particular.137 At present, the question is how and with what effect. This is in itself an improvement. However, there are serious obstacles that make difficult an effective contribution of CP to a real ‘taking off’ and ‘catching up’ of the Sardinian economy.

The research engaged for this case study identified two main difficulties. The first has to do with the integration of CPs into a really coherent regional strategy of development. The second concerns the actual implementation of policies and programmes which even when they are correctly and efficiently designed at regional level do not yield the expected outcome because of inadequate local capacities.

In the last resort, these difficulties are mainly due to inefficiencies of both administrative and political nature. Sadly, there is no better illustration of the congestion that results from these difficulties than the recent news that Sardinia has lost the 75% ‘national performance reserve’ and seems to be about loosing the 25% left (despite a delay granted until the end of September to fulfil the required levels of efficiency).

One of the most interesting conclusion is that there is a resilient identification of Community Cohesion policy with Structural Funds. This is probably due to the fact that there is a strong association of the policies with their financial dimension. In this sense the overall financial resources are settled in the Operational Programmes which is almost completely financed by SF. There is a lack in perception of the different kinds of effects and results that could be generated by the application of a policy in a non financial way.

Nevertheless it would be inappropriate to end up negatively. It is worth insisting that there have been some extraordinary progresses, especially obvious if the original situation is recalled (eg lack of basic infrastructures needed to develop all market sectors, lack of competences in terms of programming and managing, etc). Dealing with CP is a very long and uneven learning process, and one very first recommendation is to call for patience.


On the basis of the above analysis, a few suggestions can be proposed so as to improve the contribution of Community policies to the objective of social and economic cohesion, and to multiply the effect of the latter.

A first concrete step to take could be to use the Operational National Programme dedicated to Technical Assistance in a different way than what has been done until now. It could become a basis for realising a strong intervention in terms of growing capacity and competences on the ground, at local level, and provide incentives to make plans and projects. This way could even be pursued by Regional authorities.

The other consideration stems from the main outcome of this study, namely the strong identification of Community policies with Structural funds, together with a tendency to reduce policies down to their financial dimension. This focus on both Structural funds and on the quantitative aspects of policies, is a factor that reduces the potential impact of CP on

137 See ‘Come è difficile spendere’, op.cit.


556


convergence. As a matter of fact, it detracts attention from more qualitative yet crucial aspects such as the necessity to introduce better coordination between policies, both at the implementation level and in the definition of the policies’ objectives. This is a drawback that regional authorities should address through the adoption of a governance structure based on coordination as an operating principle.

However, responsibility for improvement in this area does not belong to regional authorities alone. Actions should also – and perhaps even primarily – be taken at Community level. The opportunities offered by CP are so numerous that they become sometimes complex to deal with; this is particularly true for an administrative structure which has long been characterised by a high degree of vertical integration and rigidity such as in Sardinia. Some guidelines, made available by the Community concerning opportunities for coordination and risk of conflict between CP could represent a very valuable input. Even more effective would be the institution of a permanent representation of the Community in Sardinia which could transform abstract guidelines into concrete recommendations. This would not only help achieve a higher degree of synergy between the policies engaged, but it would also contribute to rationalise regional policy making and strengthen administrative capacity as a whole.


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REFERENCES

− Centro Regionale di Programmazione, 2001, “I fondi strutturali 1994/1999 in Sardegna”, Cagliari: Centro Regionale di Programmazione, Formez.

− CRENoS, 2002, “9° Rapporto sull’economia della Sardegna – Analisi strutturale e previsioni 2001 – 2003”, Cagliari: CUEC

− Fagerberg, J., Verspagen, B., 1996, “Heading for Divergence? Regional growth in Europe reconsidered”, Journal of Common Market Studies, Vol.34, No3, September.

− Paci, R. ed., 1997, “Crescita economica e sistemi produttivi locali in Sardegna”, Cagliari: CUEC.

− Paci, R., 1999, “L’evoluzione del sistema economico della Sardegna negli anni Novanta”, Quaderni del CRENoS.

− Pruna, M.L., Zurru, M., 2001, “Come è difficile spendere – L’esperienza dei Fondi Strutturali europei in Sardegna”, Milano: Franco Angeli.

− Regione Autonoma della Sardegna, 2002, “La Regione Sardegna e le risorse Comunitarie”, Conference Cagliari, Chia, 1 March.

− “Cappelen, A., Castellacci, F., Fagerberg, J., and B. Verspagen, 2002, “The impact of regional support on growth and convergence in the European Union”, ECIS Working Paper 02.14.

− CRENoS, 2003, “10° Rapporto sull’economia della Sardegna – Analisi strutturale e previsioni 2002 – 2004”, Cagliari: CUEC

− Europa Desk, 2002, “I documenti della Programmazione 2000-2006”, CD-ROM, Cagliari: Centro Regionale di Programmazione.

− Grillo, F. 2002, “La Valutazione Intermedia dei programmi comunitari 1994 – 1999 della Regione Sardegna”, Cagliari: Centro Regionale di Programmazione.

− Paci, R., 2000, “Convergenza e divergenza tra le regioni europee – implicazioni per lo sviluppo economico in Sardegna” Quaderni del CRENoS.

− Paci, R., 2002, “Individuazione dei sistemi produttivi locali in Sardegna”, Cagliari: Regione Autonoma della Sardegna, Assessorato all’industria’

− Pisu, G. 2002, “La programmazione dei Fondi Strutturali 2000/2006 – Dagli orientamenti Comunitari al Complemento di Programmazione del POR Sardegna”, Cagliari: Centro Regionale di Programmazione.


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APPENDIX

Interview method:

• Coordination

Normally, an interview took from one to two hours.

This case study has been realised on the basis of statistical primary sources, secondary sources (reports, academic literature – see references) and semi-structured interviews with key informants (see below the list of persons interviewed). The interviews have been realised on the basis of a grid structured around the following 3 main points (see below the full list of questions):

• General questions on CPs

• Governance

Key informants interviewed

Key Informants Charges

Elisabetta Schirru Program manager ‘Centro Regionale di Programmazione’, Regione Autonoma della Sardegna

Program manager, Servizi per i rapporti internazionali e con l’UE, Regione Autonoma della Sardegna

Graziella Pisu

Professor (Economics), Cagliari University

Giovanni Sistu Professor (Geography), Cagliari University

Luca Contini Program manager, Consorzio 21

Italo Meloni University of Cagliari – Faculty of Engeniering Transport Section professor

Franco Corosu Assessorato all’Ambiente Regione Autonoma della Sardegna – Responsible of the Environmental Authority

Gianluca Cadeddu Assessorato all’Agricoltura Regione Autonoma della Sardegna – agriculture and rural development

Cristina Casula

Responsible of ‘Centro Regionale di Programmazione’ Regione Autonoma della Sardegna

Rafaele Paci


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Semi structured Questionnaire:

2. Altri effetti diversi dalla coesione

• Domande

Generali

2.

• Introduzione

Terzo rapporto sulla coesione economica e sociale (in vista della riforma dei fondi strutturali).

Obiettivo: valutare se e come le Politiche Comunitarie contribuiscono alla crescita regionale (coesione tramite convergenza)

Per i case studies: 1) stima quantitativa delle PC, 2) stima qualitativa del loro contributo all’obiettivo di coesione.

1. Due punti d’interesse: coordinamento tra le diverse PC e governance (assetto istituzionale)

1. Quali sono le PC più importanti per la convergenza della Regione (importanti dal punto di vista qualitativo e quantitativo)

Quale è l’obiettivo di ciascuna PC, e come lo si può raffrontare con quello di convergenza (per esempio politiche di R&S, PAC, ambiente e mercato unico)?

3. Quale è stato il contributo / l’impatto delle PC sulla convergenza sociale e/o economica della Regione (come lo si può caratterizzare? Per es. l’impatto è essenzialmente finanziario o ha anche altri effetti indiretti come nuova legislazione ecc?)

A livello di singola PC

A livello di PC nel loro insieme

4. Quale è stato il loro impatto sulla coesione subregionale (NUTS III)?

5. Quale è l’impatto delle PC sulla capacità della regione di generare convergenza in modo autonomo?

7. In generale, quanto deve il “modello di sviluppo” seguito dalla Sardegna/Toscana alle PC?

Coordinamento

6. Quali sono stati i principali cambiamenti di 1), 2), 3), 4) e 5) durante gli ultimi 10 anni (1990-2002)?

1. Come si può apprezzare il grado di coordinamento tra le diverse PC?

2. Dove e a quale livello può verificarsi la mancanza di coordinamento?

Orizzontale: tra le politiche tra di loro e le istituzioni incaricate di queste politiche, o per una stessa politica, tra le amministrazioni competenti. Al livello della elaborazione, della realizzazione e dell’attuazione “sul campo”, della disseminazione dei risultati?

Verticale: tra livello regionale e comunale / locale?


560


3. E possibile che un mancato coordinamento possa risultare nella contrapposizione di due politiche, diminuendone (o annullandone) gli effetti? Quali esempi concreti? (per es. PAC e politiche regionali).

4. Quale è la / le ragione/i di questo(i) mancato(i) coordinamento(i)?

2. Quale è il grado di “de-centralizzazione” tra livelli nazionale e regionale; tra livelli regionale e sub-regionale?

4. Quale evoluzione ha caratterizzato l’attuazione delle politiche strutturali da un periodo di programmazione all’altro? Per esempio, quali cambiamenti nel percorso seguito dai fondi tra Bruxelles e la Regione? Si può parlare di un effetto di “apprendimento” (learning effect) e di miglioramento delle capacità delle amministrazioni (per. es per quanto riguarda la pratica della valutazione delle politiche pubbliche)?

6. Qual è il grado di partecipazione privata in termini strettamente finanziari (co-finanziamento con capitali privati)?

5. Cosa si potrebbe fare per migliorare il coordinamento?

‘Governance’

1. Quale è il grado di dispersione / concentrazione delle competenze esercitate nella concezione e l’attuazione delle PC?

3. Esiste una struttura amministrativa, un meccanismo formale o informale che garantisca il coordinamento tra le diverse PC? Se si, si riferisce (si giustifica) all’obiettivo di coesione?

5. I soggetti della sfera privata (società civile ..?) vengono coinvolti nel processo di concezione, elaborazione e/o attuazione delle PC; esiste una prassi di partnership stabilita tra questi diversi soggetti coinvolti? Permette di rendere il processo più efficiente?

7. Qual è il grado di trasparenza nella decisione e nell’applicazione delle PC? Come si può caratterizzare la comunicazione realizzata per promuovere gli obiettivi delle PC?


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- Table 3b Rates of growth

- Table 4 Innovation indicators

- Tab. 5 Number of Farms by surface and SAU

- Tab. 6 Farm surface by using category

- Tab. 7 Agriculture surface used

- Tab. 8 Category amount of livestock

- Tab. 9 Employment rate by sector - Values %

- Table 10 Community policies in Sardinia, by origin of funding

- Tab. 11 Agenda 21 Locale Approved projects First national call for proposal

- Tab. 12 Financial resource distribution Agenda 21 Locale

- Tab. 13 Sardinian approved Life Projects

- Tab. 15 Biological farms by production and surface (SAU)


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