1. Third progress report on cohesion 17 May 2005
Towards a new partnership for growth, jobs and cohesion

2. The report contains 3 partsEN
The report contains 3 parts
Analysis of economic and social disparities in the enlarged EU
EU cohesion policy and the Lisbon Strategy in
The future of cohesion policy and the Growth and Jobs Agenda
Structure

3. EN
Disparity levels
Disparities in GDP per head between EU-25 still considerable (2003):
Latvia – 41% of EU average
Ireland – 132% of EU average
Luxembourg – 215% of EU average
New Member States – below 90% of EU average
Part I

4. GDP per head in PPS in 2003 Part IEN
GDP per head in PPS in 2003
Part I

5. Regional disparities Regional disparities remain high (2002)EN
Regional disparities
Regional disparities remain high (2002)
189% of the EU-25 average in the 10 most prosperous regions
36% in the 10 least prosperous ones.
Over 1/4 of the EU’s population in 64 regions have GDP per head below 75% of EU average.
90% of population in the new Member States living in regions with GDP per head below 75% of EU average
13% of population in EU-15 living in regions with GDP per head below 75% of EU average
Part I

6. Regional Disparities in EU27EN
Regional Disparities in EU27
GDP per head in % in PPP (2002)
<50
 125
Index, EUR-27 = 100

7. Regional GDP Growth 1995-2002 Average growth rate in % < 1.48EN
Regional GDP Growth
Average growth rate in %
< 1.48
HU =
1.48 – 2.18
2.18 – 2.75
2.75 – 3.62
>= 3.62
no data
EUR-27 = 2.25

8. EN
Employment rates
Employment rates – well short of the 70% Lisbon target
62.9% for the EU25 in 2003
Denmark, Sweden, the Netherlands and the UK – only MS with 70%
22 million additional jobs needed to meet 70% target
In the new Member States, 7 million additional jobs needed to meet 70% target (increase of ¼)
200 of the 254 EU regions are below the target rate
almost 15% of the population lives in regions where the rate is below 55%
employment rates remain low among most of the least prosperous regions.
Part I

9. Regional Employment Rates 2003
Employed persons between 15 und 65 in %
< 55
>= 75
no data
EUR-27 = 62.5

10. Productivity: recent improvements
strong productivity growth in recent years but still noticeable differences:
less than 30% of the EU25 average in Poland and the three Baltic states
150% in Luxembourg and Ireland.
productivity was below 25% of the EU average in 15 regions
but…link between productivity and GDP
productivity exceeds the EU average regions with above-average per capital GDP
Part I

11. Regional Expenditure in Research and Development 2002
in % of GDP
EUR-27 = 1.92
< 0.45
0.8 – 1.16
1.16 – 1.88
>= 1.88
0.45 – 0.8
no data

12. EN
Trends in disparities
since the mid-1990s, average EU growth growth has average just over 2% per year
regional disparity levels are higher than national disparities but are also falling
10% of EU25 population living in poorest regions (2.2% of total GDP in 2002; 1.5% in 1995)
still high levels of internal disparities
Part I

13. Geographical Eligibility for Structural Funds Support 2007-2013EN
Geographical Eligibility for Structural Funds Support
Draft April 2005, GDP/head 
Objective 'Regional
Competitiveness and Employment'
Convergence objective
Regions > 75% in EU25)
Convergence objective
statistically affected regions
Objective 'Regional
Competitiveness and Employment'
Phasing-in regions,
"naturally" above 75%
Index EU 25 = 100
Source: Eurostat

14. Cohesion policy and the Lisbon Agenda
Growing orientation of SF programmes towards Lisbon objectives (above 50% in some programmes)
significantly higher in relatively more prosperous regions but lower in the less developed regions
Decentralised delivery system key to develop synergies with Lisbon
More ownership of the Lisbon strategy through cohesion policy
Part II

15. Mid-term review Mid-term evaluations – more emphasis on LisbonEN
Mid-term review
Mid-term evaluations – more emphasis on Lisbon
Allocation of the performance reserve. Over €8 billion allocated to successful programmes or priorities
Objective 1 – continues to be oriented towards transport and other infrastructure
some Member States with large Objective 1 areas - more emphasis seems to have been placed on research and innovation
Objective 2 – more emphasis on economic growth and competitiveness
Both Obj. 1 and 2 - education and vocational training continues to be important
Part II

16. Spring European Council – March 2005EN
Spring European Council – March 2005
Explicit endorsement of importance of cohesion policy as an instrument for achieving the Lisbon strategy.
Key recommendations:
Community resources, including cohesion policy, should be mobilised for 3 dimensions of the strategy – economic, social and environmental.
Regional and local actors should take greater ownership of the strategy
Greater synergies between Community funds and the EIB in R&D
Part III

17. Spring European Council – March 2005 (cont.)EN
Spring European Council – March 2005 (cont.)
Key recommendations (continued):
Reduction in the general level of state aid
Investment in infrastructure
Create more jobs with more active employment policies.
Integrated guidelines to be issued at Community-level;
MS to establish national reform programmes on growth and jobs
Part III

18. Community Strategic Guidelines 2007-2013EN
Community Strategic Guidelines
Commission proposals for more strategic approach targeted on growth and jobs
Strategic Guidelines established at Community level by Council decision
Basis for National Strategic Reference Framework - to define clear priorities for MS and regions
synergies between cohesion policy and the Lisbon strategy
consistency with the Broad Economic Policy Guidelines and the European Employment Strategy
Consistency with other Community policies and priorities would be enhanced
Part III

19. EN
Timetable
May 2005: Commission proposal on Strategic Guidelines
June 2005: Decision by Council on Financial Perspectives
Draft Community Strategic Guidelines adopted by Commission
Autumn 2005: - Decision by Council and European Parliament on cohesion policy regulations
- Community Strategic Guidelines published
- Preparation of National Strategic Reference Frameworks
2006: Preparation of programmes for period
1 Jan 2007: Implementation begins
Next stages