1. By Prof. Danuta Hübner Brussels, 30 May 2007
GROWING REGIONS, GROWING EUROPE Fourth Report on Economic and Social Cohesion
By Prof. Danuta Hübner
Brussels, 30 May 2007

2. 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

3. Situation and trends: regional growth
Over the period , 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.
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4. 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
201 regions out of 268 need to create jobs to reach the Lisbon target of 70%
This corresponds to 23.8 million additional jobs
Of these, million needs to be created in 30 regions alone:
3.5 in the Mezzogiorno
4.5 in Poland
1.5 in Spain
0.5 in Romania
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5. 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
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6. 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
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7. 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
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8. 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
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9. 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
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10. 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
More the 10 percentage points in Denmark, Spain, Italy, Portugal and Finland
Around 9 percentage points in the UK
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11. 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
Between 2000 and 2006, transfers from the Funds amounted, on average, to an estimated
60% of total public capital expenditure in Portugal
48% in Greece
24% in Spain
around 9% in Ireland, Italian Mezzogiorno and German Eastern lander
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12. 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 and
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13. 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
The six countries concerned are France, UK, Netherlands, Spain, Sweden, and Denmark
Of the 450,000 jobs mentioned, around 200,000 were created in France, more than 100,000 in the UK, 75,000 in the Netherlands, almost 40,000 in Spain, around 25,000 in Sweden, and the rest (around 5,000) in Denmark
The estimates for the Convergence regions are derived from the Hermin modal. This argues that around 2,0 million jobs will be created thanks to cohesion policy between 2000 and Of these, 1.4 million are created during the period.
These jobs are created essentially (but not only) in the new Member States: almost 400,000 in Poland, 330,000 in the Czech Republic, almost 270,000 in Romania and around 150,000 in both Hungary and Spain.
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14. Cohesion policy contributes to the growth of GDP
Preliminary estimates for the period ( for the new Member States) suggest an increase in GDP compared to a baseline scenario without cohesion policy by:
Around 9.0% in the Czech Republic Latvia
Around 8.5% in Lithuania, and Estonia
Around 7.5% in Romania
Around 6.0% in Bulgaria and Slovakia
Around 5.5% in Poland
Around 3.5% in Greece and 3.1% in Portugal
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15. Next steps… Questions on the future in the 4th Cohesion Report
27+28 September 2007: 4th Cohesion Forum launches public consultation
Spring 2008: Fifth Progress Report on Economic and Social Cohesion, including a report on the public consultation
Autumn 2008: Follow-up conference to the 4th Cohesion Forum (tbc)
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16. More information:
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