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2007 AAG ANUAL MEETING
San Francisco
REGIONAL DEVELOPMENT AND TERRITORIAL PLANNING
IN THE
EUROPEAN UNION
Regina Salvador
New University of Lisbon
Viessmann Research Centre on Modern Europe
REGIONAL DEVELOPMENT IN THE EU
The Rome Treaty (1957) didn’t preview any European Regional
Policy (ERP). The six founding Member States were quite
similar in what development levels were concerned, with the
possible exception of Southern Italy (Mezzogiorno).
Only in the aftermath of the first enlargement (1972), with the
entry of the UK (a country with important territorial
disequilibrium and looking for a counterpart for its losses with
the Common Agricultural Policy - CAP) and that of Ireland (with
a GDP per capita equal to 50% of the European average), did
the decision for a European Regional Policy received green
light (Paris Summit, 1972).
Regina Salvador
New University of Lisbon / Viessmann Research Centre on Modern Europe
REGIONAL DEVELOPMENT IN THE EU
• The European Regional Development Fund (ERDF), established in
1975, is till the present time the main instrument to correct territorial
disequilibrium and to promote regional sustainable development.
• During its first generation (1975-1985), EDRF focused its action in
infrastructures, productive investment and local development. 95%
of its budget was oriented towards supporting national policies. So,
only 5% were ruled according to common European goals.
• The third enlargement (1986) – with the entry of Portugal and Spain,
following that of Greece (1980) - increased territorial imbalances to
such a degree that Jacques Delors (the French President of the
European Commission) was pushed to achieve an agreement that
multiplied by 4 the financial amounts addressed to the ERP.
Regina Salvador
New University of Lisbon / Viessmann Research Centreon Modern Europe
REGIONAL DEVELOPMENT IN THE EU
• Besides that, the other 4 European Structural Funds
(European Social Fund, European Agricultural Guidance
and Guarantee Fund (EAGGF) - Guidance Section, the
Financial Instrument for Fisheries Guidance (FIFG) and,
after the Maastricht Treaty (1991), the Cohesion Fund,
were subordinated to the Regional Policy goals.
• The accession of Austria, Sweden and Finland, in 1995,
countries richer than the EU average, also contributed in
a positive way to finance the development of lagging
regions.
Regina Salvador
New University of Lisbon / Viessmann Research Centre on Modern Europe
REGIONAL GDP GROWTH (%),
1986-1996
As a result of all these factors, the
less prosperous regions saw their
Gross Domestic Product (GDP)
approach the EU average
(1986-1996)
Regina Salvador
New University of Lisbon / Viessmann Research
Centre on Modern Europe
REGIONAL DISPARITIES in EU15
GDP PER HEAD
(PPP), 1996
There was also a reduction between
the average GDP per capita in the
poorest regions and the EU average.
But during 1986-1996, one can also
observe:
- structural problems persistence
- raised unemployment
- increase in the prosperity of the 10
richest regions.
Regina Salvador
New University of Lisbon / Viessmann Research Centre on Modern
Europe
REGIONAL DISPARITIES, GDP PER HEAD
(PPP)
2007 AAG ANUAL MEETING
San Francisco
REGIONAL DEVELOPMENT AND
TERRITORIAL PLANNING IN THE EU
Art. 158 of the Treaty of Nice (2003) – that amended the Maastricht
Treaty and the Treaty of Rome – foresees that economic and social
cohesion calls for the reduction of disparities among regions, namely
to help the less favoured regions.
So, Art. 87 of the same Treaty previews non-automatic derogations to
the free competition between firms from different member states.
National Government and EU subsidies are both allowed, when
oriented towards favour economic growth in regions with an abnormal
low level of living or in a serious unemployment condition.
In 2004, the EU underwent its fifth enlargement to 10 countries of
Central and Eastern Europe and the Mediterranean: Czech Republic,
Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovakia
and Slovenia.
Regina Salvador
New University of Lisbon / Viessmann Research Centre on Modern Europe
2007 AAG ANUAL MEETING
San Francisco
THE FIFTH ENLARGEMENT
•
New Eastern Member States = all below 70% EU average (2000)
Three special aid programs were created to these new member states:
The PHARE (1989) : 11 billion € to institutions, public administrations and basic
infrastructures.
The SAPARD: 3,6 billion € - “Accession Special Program on Agriculture and Rural
Development”.
The ISPA: 7,6 billion €, Pre-Accession Structural Instrument.
Regina Salvador
New University of Lisbon / Viessmann Research Centre on Modern Europe
2007 AAG ANUAL MEETING
San Francisco
FUTURE ENLARGEMENTS
• The accession of Romania and Bulgaria on the 1 January 2007
completed this process, that signified the re-unification of Europe
after decades of division by an Iron Curtain.
• Croatia, the former Yugoslav Republic of Macedonia and Turkey are
candidate countries. Accession negotiations have not started yet.
• All the other Western Balkan countries are potential candidate
countries: Albania, Bosnia and Herzegovina, Montenegro and
Serbia (including Kosovo).
Regina Salvador
New University of Lisbon / Viessmann Research Centre on Modern Europe
2007 AAG ANUAL MEETING
San Francisco
ENLARGEMENT IMPACT
– Population: from 380 to 454
million (EU 25) or 485
million (EU 27).
– Population
in
convergence
regions:
from 84 million to 123
million.
– Faster growth in new
Member States (4% per
year against 2.5% in EU
15).
– EU average GDP per
head drops: -12.5% EU
25; -18% EU 27.
Regina Salvador
New University of Lisbon / Viessmann Research Centre on Modern Europe
2007 AAG ANUAL MEETING
San Francisco
ENLARGEMENT IMPACT
THE 10 RICHEST AND THE 10 POOREST REGIONS (EU=100)
2002
Regina Salvador
New University of Lisbon / Viessmann Research Centre on Modern Europe
2007 AAG ANUAL MEETING
San Francisco
GDP per head in % PPP (2002)
REGIONAL EMPLOYMENT RATES 2003
EDUCATIONAL LEVEL 2002
% Total Population aged 25-64
Regina Salvador
New University of Lisbon / Viessmann Research Centre on Modern Europe
2007 AAG ANUAL MEETING
San Francisco
EMPLOYMENT HI-TECH 2002
Regina Salvador
New University of Lisbon / Viessmann Research Centre on Modern Europe
2007 AAG ANUAL MEETING
San Francisco
REGIONAL EXPENDITURE in R&D 2002
in % GDP
Regina Salvador
New University of Lisbon / Viessmann Research Centre on Modern Europe
2007 AAG ANUAL MEETING
San Francisco
NEW EU BUDGET STRUCTURE:
COHESION POLICY GAINS
2006 vs. 2013
Regina Salvador
New University of Lisbon / Viessmann Research Centre on Modern Europe
2007 AAG ANUAL MEETING
San Francisco
NEW EU BUDGET STRUCTURE:
COHESION POLICY GAINS
•
For the period 2007-2013, the EU will apply a new-look and more integrated
regional policy.
•
Old and new member states will no longer be treated separately. Procedures
will be simplified and funding concentrated on the most needy regions of the
member states.
•
For the new period, the combined budget of the structural and cohesions funds
will be about €308 billion. This represents 36% of overall EU spending during
this period.
•
Spending will be divided into three categories. Of the total amount, 79% will go
on reducing the gap between poor and richer regions while 17% will be spent
on increasing the competitiveness of poor regions and creating local jobs
there. The remaining 4% will focus on cross-border cooperation between
frontier regions.
GEOGRAPHICAL ELIGIBILITY FOR
STRUCTURAL FUNDS SUPPORT 2007-2013
Regina Salvador
New University of Lisbon / Viessmann Research Centre on Modern Europe
2007 AAG ANUAL MEETING
San Francisco
TERRITORIAL PLANNING IN THE EU
• In territorial planning terms, after World War II, indicative forecast
ruled: the military methodologies used during the War, the
reconstruction of European cities and factories and the need to
restore democracy were urgent tasks.
• In France, the first Indicative Plan (1946) was co-ordinated by the
“Father of Europe” Jean Monnet, under the inspiration of the book
“Planning for Democracy”, by the Hungarian Karl Mannheim.
• The creation of great industrial and shipping areas, the planning
of seaboard tourism, the conception of “new towns” and the
generalisation of highway networks were the great tasks of that
generation.
2007 AAG ANUAL MEETING
San Francisco
TERRITORIAL PLANNING IN THE EU
• The growing economic importance of heavy industrial sectors, such
as siderurgy and petrochemical, subject to heavy transportation
costs and fearing the closure of the Suez Channel, stimulated the
construction of huge tankers (using the South African route). In turn,
this stimulated the construction of industrial-portuary “white
elephants”, that brought factories to the seaboard.
• Just finished these gigantic complexes, the oil crisis brought about
the stagnation of the maritime transport. But despite the negative
effects, those industrial complexes had the merit to develop some
peripheral areas, even if, after them, the “growth pole concept” was
terminated.
Regina Salvador
New University of Lisbon / Viessmann Research Centre on Modern Europe
2007 AAG ANUAL MEETING
San Francisco
TERRITORIAL PLANNING IN THE EU
• Another important achievement, mainly in Southern European
countries, was seashore planning: it was the case of Côte d’Azur
(France), Costa del Sol (Spain), some Adriatic regions (Rimini in
Italy), etc. The goal is to reframe regions, mainly agricultural or
fishing, allowing the existence of tourist facilities along with empty
areas.
• The construction of “new towns” was the third main type of
territorial planning, due to the need to relieve great agglomerations
such as London or Paris. The role of Central Governments was, in
general, determinant: they financed the studies, bought the land and
built the public equipment. Object of severe opposition, these “new
towns” are now relatively well integrated in the socio-economic
landscape, despite uncompleted and with financial problems.
2007 AAG ANUAL MEETING
San Francisco
TERRITORIAL PLANNING IN THE EU
• In order to stimulate the rhythm of economic growth, the road and
highway network that covers most of the European territory, today,
was put into place.
• But the large majority of all these actions of territorial planning –
even of those financed by EU structural funds – were thought at
national level. A European global perspective was clearly missing.
• The same can be said about regional development programs, even
if one can clearly detect since 1975 a steady long-term trend to
increase the European perspective vs. the national one: negotiations
between governments and the EU Commission or the growing
percentage attributed to “European” projects and programs
(Interreg, ex.) are clear signs.
Regina Salvador
New University of Lisbon / Viessmann Research Centre on Modern Europe
2007 AAG ANUAL MEETING
San Francisco
TERRITORIAL PLANNING IN THE EU
•
It’s true that, already in 1983, the European Council presented the
“European Chart on Territorial Planning”, that called for a balanced
territorial development.
•
Till the beginning of the 90’s, there were abundant studies that
proposed spatial metaphors for the European territory:
- the “Blue Banana”;
- the “Blue Star”;
- the “Bunch of Grapes”;
- the “Seven Room House”…
•
All these metaphors were quite efficient in creating an appealing
image for a strategic view of a unique Continent.
Regina Salvador
New University of Lisbon / Viessmann Research Centre on Modern Europe
2007 AAG ANUAL MEETING
San Francisco
TERRITORIAL PLANNING IN THE EU
•
In the first half of the 90’s, two
studies (Europe 2000 and Europe
2000+) propose the creation of
mega-regions,
established
by
regions of different member states:
it’s the case of the Baltic Sea Arch,
the Atlantic Arch or the Western
Mediterranean Arch.
•
The “Europe of Regions” was born,
where the growth of the political
and economic power of regions,
within a federal Europe, seems
inevitable.
Regina Salvador
New University of Lisbon / Viessmann Research Centre on Modern Europe
2007 AAG ANUAL MEETING
San Francisco
TERRITORIAL PLANNING IN THE EU
•
All these efforts resulted in the
approval of
the “European
Spatial
Development
Perspective” (ESDP), in 1999, at
the Potsdam Summit.
•
With ESDP, EU leaves a single
planning territorial approach
towards
a
territorial
management
perspective,
where
greater
economic
efficiency is supported by
spatial integration.
2007 AAG ANUAL MEETING
San Francisco
TERRITORIAL PLANNING IN THE EU
• But it’s only recently that the need was felt for a real GLOBAL and
EUROPEAN perspective.
• The reasons for that are summarized in the next figure.
• The creation of an Economic and Monetary Union (with a common
currency), the call for a deeper integration, the growing roles of cities
and regions and the increased competitiveness - both at world
(Globalization) and European (Eastern enlargement) levels -, led to
a dramatic increase in spatial disequilibrium.
• Time has come for a much deeper coordination between institutions,
member states, regional and local authorities.
Regina Salvador
New University of Lisbon / Viessmann Research Centre on Modern Europe
2007 AAG ANUAL MEETING
San Francisco
TERRITORY GROWING IMPORTANCE TO THE EU DEVELOPMENT
Economic and
Monetary Union
Deeper Economic
Integration
Growing Role of
Cities and Regions
Increased
Competitiveness
Globalization
Increase in Spatial
Desequilibriums
Eastern
Enlargement
Political
Coordination
Regional
Transnational
Cooperation
Regional and Local
Communities
Importance
Balanced and Sustainable
Spatial Development in EU
Territory
2007 AAG ANUAL MEETING
San Francisco
REGIONAL DEVELOPMENT AND TERRITORIAL
PLANNING IN THE EU: CONCLUSIONS
•
Although the 2007-2013 period will be a transitional one, Structural
Funds are expected to focus greater attention on topics and themes
that are of particular importance to EU:
– Competitiveness;
– Environmental enhancement and ecological modernization;
– Reduction of social and economic exclusion;
– Reduction of physical peripherality and spatial exclusion.
The EU, like most political organizations, will expect more for its
money.
This suggests that the arrangements for regional development and
management for each and every European region should form the
basis for both the European and the national development policies.
Regina Salvador
New University of Lisbon / Viessmann Research Centre on Modern Europe
2007 AAG ANUAL MEETING
San Francisco