1. Disposable income in rural areas

2. Structure of my talk
The algorithm
Data request
Next steps

3. AIM OF THIS TALK:
Launch a discussion about a new project of collection variables for rural areas
Explain the approach used for that project

4. Chapter 1
The algorithm

5. Definition of rural areas
The Commission has as one of its key roles the target of reducing disparities in the EU, including rural areas (Article 158 of the Treaty)
So far no harmonised approach for defining rural areas exists
Many different approaches in the Member States
A European approach should be simple and applicable
It should be applied at NUTS level 3 regions

6. The OECD algorithm
One single criterion: population density above or below 150 inhabitants per km2
If below  “rural”
Three types of regions
Mainly rural regions: more than 50% of the population lives in “rural” communes (LAU-2)
Relatively rural regions: 15% - 50% of the population lives in “rural” communes (LAU-2)
Urban regions: <15% lives in LAU-2

7. The results
Eurostat did the necessary calculations using LAU-2 information (area and population necessary)
The results seem quite plausible

9. Advantages and disadvantages
Positive
Comparable results across Europe
Simple algorithm, based on one single criterion
Robust over time
Negative
Assumption that LAU-2 communes have a comparable size across Europe
This is not always the case

10. Chapter 2
The data request

11. Disposable income (Regional Accounts)
No data request for individual NUTS level 3 regions
Data request for all NUTS 3 regions of one type aggregated
Hence 3 figures required:
A value for the rural areas of the country
A value for the relatively rural areas
A value for the urban areas

12. Chapter 3
Next steps

13. The future
Cooperation project with unit E3 (“rural development”) of Eurostat
Unit E3 will have a task force meeting in December and a Working Party meeting in March 2005
Further statistics to be collected following this approach: employment, migration, education, tourism, poverty, transport infrastructure etc.

14. Thanks for listening !
Any Questions ?