1 EU’s Policy towards the Outermost Regions

The Outermost Regions of the EU 4 French overseas departments: Martinique, Guadeloupe, Réunion and Guyane 4 French overseas departments: Martinique, Guadeloupe, Réunion and Guyane 2 French overseas collectivities (since TFEU came into force) : St Martin et St Barthélemy 2 French overseas collectivities (since TFEU came into force) : St Martin et St Barthélemy 1 Spanish autonomous community : Canarias 1 Spanish autonomous community : Canarias 2 Portuguese autonomous regions : Açores and Madeira 2 Portuguese autonomous regions : Açores and Madeira

The Outermost regions (OR) at a glance Total population 3,9 million  0,85% of EU’s total population Total surface km²  2,5% of EU’s total surface Distance from capital: km (Canarias) to km (Réunion) Convergence Objective: Réunion, Martinique, Guadeloupe, Guyane and Açores Competitiveness & Employment Objective: Canarias and Madeira

Elaboration of a development strategy for the OR Specific OR handicaps Specific OR handicaps Article 349 TFEU Specific Measures * Remoteness * Insularity & Small size (excp Guyane) * Difficult relief and climate * Economic dependency on a small number of products Persistence and combination of the handicaps * Remoteness * Insularity & Small size (excp Guyane) * Difficult relief and climate * Economic dependency on a small number of products Persistence and combination of the handicaps Customs, Trade, Fiscal, Competition, Agriculture, Fishing and Maritime Policies Special legislative procedure Coherence of EU Law

OR and OCT Outermost regions and Overseas Countries and territories OR ≠ OCT OR ≠ OCT –OR: european regions → application of Treaty provisions (Art. 349 and TFEU) –OCT: associated territories → application of a special association regime

Passerelle Clause Article TFEU called “passerelle clause” Article TFEU called “passerelle clause” «The European Council may, on the initiative of the Member State concerned, adopt a decision amending the status, with regard to the Union, of a Danish, French or Netherlands country or territory referred to in paragraphs 1 and 2. The European Council shall act unanimously after consulting the Commission » «The European Council may, on the initiative of the Member State concerned, adopt a decision amending the status, with regard to the Union, of a Danish, French or Netherlands country or territory referred to in paragraphs 1 and 2. The European Council shall act unanimously after consulting the Commission » Process of « Ptomisation » for St. Barthelemy (2012) Process of « Ptomisation » for St. Barthelemy (2012) Process of « Rupéisation » for Mayotte (2014) Process of « Rupéisation » for Mayotte (2014) DG REGIO (OR unit) is the service in charge of the coordination and monitoring of the technical and political processes DG REGIO (OR unit) is the service in charge of the coordination and monitoring of the technical and political processes

Evolution of the european strategy towards the OR 2004: definition of a global and coherent approach for the OR according to 3 strategic axes:  Reduction of the accessibility deficit and other constraints  Reinforcement of their competitivity  Improve regional integration within their geographical zone (Action Plan for the Great Neighbourhood)

Evolution of the European Strategy towards the OR 2007: « Evolution and outcome of the strategy towards the OR » – –Balance sheet of the strategy application since 2004 – –Short term measures to take advantage of the existing instruments – –Public consultation on four long term issues:   → Climate change   → Demographic evolution   → Agriculture   → Maritime Policy

Evolution of the european strategy towards the OR Biodiversity Renewable energies Study laboratories for climate change effects Niche products in agriculture Unique geographic position 2008: « The OR : an asset for Europe » …a change of paradigme

10 Where are we today? : Joint Memorandum OR-MS « A renewed vision of the european strategy towards outermost regions - The OR in 2020 » May 2010: 1 st Forum on Outermost Europe 2011: Financial perspectives in June; proposals for new regulations in October; negociations 2012: New proposals on post-2013 OR strategy

11 Development of the strategy through specific measures adopted in favor of the OR (non- exhaustive list) Cohesion Policy: Additional specific allocation as a compensation of the additional costs in the ERDF Frame (35€/inhabitant) Additional specific allocation as a compensation of the additional costs in the ERDF Frame (35€/inhabitant) Intervention rate majorated to 85% independently of the « convergence » or « regional competitivity and employment » eligibility criteria Intervention rate majorated to 85% independently of the « convergence » or « regional competitivity and employment » eligibility criteria Agriculture: POSEI (System to support local production, including bananas, and food supply) POSEI (System to support local production, including bananas, and food supply) Fisheries: Intervention rate of the EFF majorated for the OR Intervention rate of the EFF majorated for the OR Special exemption of the framing measures of the European fleet (arrival of new capacities) Special exemption of the framing measures of the European fleet (arrival of new capacities) POSEI « fisheries » (compensation regime of the additional costs under EAGGF – guarantees) POSEI « fisheries » (compensation regime of the additional costs under EAGGF – guarantees)

Competition: State aids with a regional aim : functioning aids neither digressive nor limited in time, majorated investment aids rates (Art. 107 TFUE) State aids with a regional aim : functioning aids neither digressive nor limited in time, majorated investment aids rates (Art. 107 TFUE) Tax system and customs : Octroi de mer/dock dues (French DOM), AIEM (Arbitrio sobre Importaciones y Entregas de Mercancías Canary Islands): indirect tax with a possibility of changing rate between local and imported products Octroi de mer/dock dues (French DOM), AIEM (Arbitrio sobre Importaciones y Entregas de Mercancías – Canary Islands): indirect tax with a possibility of changing rate between local and imported products Limited Excise Tax for traditional rhum (French DOM) and for rhum, liquors and eaux-de-vie (made and consumed in Açores and Madeira) Limited Excise Tax for traditional rhum (French DOM) and for rhum, liquors and eaux-de-vie (made and consumed in Açores and Madeira) Temporary suspension of the autonomous rights of the Common Customs Tariff (importation of some industrial products in Canarias, Madeira and Açores) Temporary suspension of the autonomous rights of the Common Customs Tariff (importation of some industrial products in Canarias, Madeira and Açores) Trade Policies: The « safety clause » for the OR (bilateral agreements, EPA and generalized tariff preferences) The « safety clause » for the OR (bilateral agreements, EPA and generalized tariff preferences) Research : « Research Potential » initiative: specifically dedicated to convergence regions and the OR « Research Potential » initiative: specifically dedicated to convergence regions and the OR Development of the strategy through specific measures adopted in favor of the OR

Instruments of the implementation of the OR policy OR unit/OR Inter-service Group (GIS RUP) Inter-service consultations (Commission) – –Communications of the Commission on the OR – –Legislative proposals and other acts Partnership with/between EU institutions, Member States and the OR Annual conferences of the OR Presidents OR Monitoring Committee Bi-annual Forum of Outermost Europe Thematic seminars and conferences

Conclusions Necessity for the Outermost Regions to prepare for confronting new challenges New strategy to bring diversity, innovation and modernisation to their economies ORs’ specific characteristics should continue to be taken into account Adaptation to the OR needs is a concept embeded in the Treaty NOT a “favour” made to them

More information on the DG REGIO’s website

16 Thank you for your attention…

17 It’s time for your questions and a few pictures !

18 Açores Capelinhos Lighthouse Winner Photo RegioStars Award 2011.

19 Madeira Porto Santo, golden sand beach

20 Canary Islands Izaña Atmospheric Observatory, Tenerife

21 Martinique Tourist area

22 Guadeloupe HQE building (High Quality Environmental standard)

Guyane Ariane 5 launches from Europe's Spaceport

24 La Reunion Volcan Piton de la Fournaise

Saint-Martin Indigenous birds