Download Situation and trends: regional disparities In 2004, the

GROWING REGIONS,
GROWING EUROPE
Fourth Report on Economic and Social
Cohesion
By Prof. Danuta Hübner
Brussels, 30 May 2007
Situation
and trends:
regional
disparities
In 2004, the top
regions (with 10% of
the EU population)
had a GDP per head
that was almost 5
times higher than that
in the bottom regions
(with 10% of the EU
population), while in
2000 it was 6 times
higher
EUROPEAN COMMISSION Regional Policy
2
Situation
and trends:
regional
growth
Over the period 19952004, growth of
productivity has been
high in the regions of
the new Member
States.
Yet, in 29 regions
(notably in France,
Italy and Spain)
productivity has
decreased.
EUROPEAN COMMISSION Regional Policy
3
Situation
and trends:
employment
deficit
Around 24 million
additional jobs need
to be created to
reach the Lisbon
target of
employment rate
More than a third of
these jobs have to be
created in only 30
regions in Poland,
Spain, Romania and
southern Italy
EUROPEAN COMMISSION Regional Policy
4
Situation
and trends:
the
innovation
deficit
Regions in Scandinavia,
Germany, the UK, and
the Netherlands emerge
as the best performers
While in 86 regions
home to a third of the
EU population,
performance is below
average
EUROPEAN COMMISSION Regional Policy
5
Challenge 1:
demography
85 regions (mainly in
the new Member
States) are already
experiencing absolute
population decline, and
another 76 regions
maintain population
growth only thanks to
migration
EUROPEAN COMMISSION Regional Policy
6
Challenge 1:
demography
In large parts of
Spain, Italy, and
Greece there are only
2 people in
employment for every
person above
retirement age
compared to an
average for the Union
of around 3 people
EUROPEAN COMMISSION Regional Policy
7
Challenge 2:
industrial
patterns and
restructuring
39 regions have more
than 3% of their total
employment
concentrated in the
clothing, textile and
leather industry
(twice the average of
the Union), reaching
13% in the Norte
region of Portugal
EUROPEAN COMMISSION Regional Policy
8
Challenge 3:
climate
change
7% of the EU
population live in
areas at high risk
of flooding (red
and orange colour)
In 45 provinces
(NUTS III), over
20% of the
population is at
risk
EUROPEAN COMMISSION Regional Policy
9
Policy response in the EU Member
States
Over the past 10 years, there has been an increase in the share of
investment under the control of regional and local authorities
Capital expenditure by regional and local authorities,
1995-2004
% of Government capital expenditure
1995
2004
20
10
10
0
0
EU-15
20
COH4
30
EL
30
LU
40
SE
40
UK
50
PT
50
FI
60
NL
60
DK
70
ES
70
FR
80
DE
80
AT
90
IE
90
IT
100
BE
100
Source: Eurostat
EUROPEAN COMMISSION Regional Policy
10
Cohesion policy supports much
needed investment
Between 2000 and 2005 in the four cohesion countries, public
investment has been around 25% higher than without cohesion policy
Public investment and contribution of ERDF and Cohesion Funds
(payments) in the Cohesion countries, 2000-2005
ERDF and Cohesion Fund
% of GDP
Public investments
4,0
4,0
3,5
3,5
3,0
3,0
2,5
2,5
2,0
2,0
1,5
1,5
1,0
1,0
0,5
0,5
0,0
0,0
2000
2001
2002
2003
2004
2005
Source: Eurostat
EUROPEAN COMMISSION Regional Policy
11
Cohesion policy helps shift the policy
mix of public investment
The share of cohesion spending on R&D, innovation and ICTs has
more than doubled between 2000-2006 and 2007-2013
EUROPEAN COMMISSION Regional Policy
12
Cohesion policy reduces social exclusion
and poverty
• Cohesion policy co-finances the training of 9 million
people annually, more than half of them women;
• Over 450,000 jobs were generated between 2000 and
2005 in six countries, representing 2/3 of Objective 2
funding;
• Estimates suggest that around 1.4 million additional
jobs will be created in Convergence regions between
2007 and 2013
EUROPEAN COMMISSION Regional Policy
13
Cohesion policy contributes to the
growth of GDP
Preliminary estimates for the period 2000-2013 (20042013 for the new Member States) suggest an increase in
GDP compared to a baseline scenario without cohesion
policy by:
•
•
•
•
•
•
Around
Around
Around
Around
Around
Around
9.0%
8.5%
7.5%
6.0%
5.5%
3.5%
in
in
in
in
in
in
the Czech Republic Latvia
Lithuania, and Estonia
Romania
Bulgaria and Slovakia
Poland
Greece and 3.1% in Portugal
EUROPEAN COMMISSION Regional Policy
14
Next steps…
1. Questions on the future in the 4th
Cohesion Report
2. 27+28 September 2007: 4th Cohesion
Forum launches public consultation
3. Spring 2008: Fifth Progress Report on
Economic and Social Cohesion, including a
report on the public consultation
4. Autumn 2008: Follow-up conference to the
4th Cohesion Forum (tbc)
EUROPEAN COMMISSION Regional Policy
15
More information:
http://ec.europa.eu/regional_policy/
sources/docoffic/official/reports/co
hesion4/index_en.htm
EUROPEAN COMMISSION Regional Policy
16