1. Welcome to Objective 2 programme Luxembourg
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2. 1. Introduction
Objective 2 (which replaces Objectives 2 and 5(b) from the period) is intended to support the economic and social conversion of areas facing structural problems. In the period, this involves four types of area: industrial, rural, urban and those dependent on fisheries.
On 1 July 1999, the Commission determined the maximum population eligible for Objective 2 assistance in each Member State. For Luxembourg, the ceiling was set at inhabitants, or 28% of its total population.
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3. 1. Introduction
The eligible population figure is the sole criterion for allocating Objective 2 funding among Member States. In this way the Commission is able to ensure that annual per capita rates of assistance are identical (i.e., at 1999 prices, EUR
41.4) in every eligible area.
Within this framework, Luxembourg has been allocated EUR 40 million (1999 prices), or about LUF billion. This breaks down as follows:
EUR 34 million for Objective 2 areas;
EUR 6 million of transitional assistance (for the areas which were eligible for Objectives 2 and 5(b) in the period but which do not qualify for the new Objective 2).
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4. 1.2 The map of the eligible area
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5. 1.3 Description of the area
The SPD covers three areas eligible under Objective 2, which comprise inhabitants:
Two rural areas: one is located in the north (8% of the eligible population) and is composed of 7 municipalities, while the other one is in the east (12% of the eligible population) and encompasses 5 cross-border municipalities. These areas were approved under the rural area heading because they are experiencing socio-economic problems resulting from a reduction of the active farming population.
One urban area in the south, consisting of 8 municipalities (80% de la eligible population), selected because of its damaged environment. This criterion was based on the extent of wasteland in the area.
The SPD also covers the 11 municipalities eligible under Objective 2 in which were not included in the new urban area (municipalities in transitional support scheme).
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6. 1.4 Main regional indicators in EU and Austria Source: EC: Second report on Economic and Social Cohesion, Volume 2, Jan 2001
Economy Labour market
GDP/head Empl.% of total, Unempl. rate%
Agri Indust. Servi
EU ,0 100,0 4,5 29,2 66,0 8,4 9,4
Luxembourg 139,1 175,8 1,9 21,9 75,8 1,7 2,4
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7. 2. Development strategy The overall objective is to:
strengthen the economic structures in each eligible area and also:
to work towards a diversified economy to enable the areas to cope with the predominant financial sector.
The implicit objective is also to maintain a regional balance with regional centres capable of counterbalancing the attraction of the centre of the country.
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8. 3. Priorities, measures and expected impact
Priority 1: promotion of regions’ local development potential:
The aim is to improve the productive environment of the areas by:
developing business promotion structures as well as services to companies.
A further objective is to diversify local economic activity based on existing skills pools.
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9. 3. Priorities, measures and expected impact
Priority 2: regeneration of wasteland in the context of a sustainable economic and spatial development policy and improvement of underprivileged lifestyles:
This area of intervention is consistent with the Objective 2 SPD approach of the previous period since it aims to pursue the rehabilitation of wasteland, involving surveys, drainage, renovation, access work and promotional activities.
This will also permit the establishment of other types of infrastructure (eg. social, etc.) and the promotion of activities that foster local development and employment.
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10. 3. Priorities, measures and expected impact
Priority 3: promotion of research, technological progress and innovation:
The objective is to strengthen the R&D capacities of the eligible areas by:
developing existing infrastructure or setting up new infrastructure,
making undertakings aware of the need for innovation and
providing advisory services to undertakings.
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11. 3. Priorities, measures and expected impact
Priority 4: promotion of natural environmental protection
This area of invention is intended to support undertakings in the introduction of environment-friendly production processes by:
raising their awareness and providing advice.
It will also cover waste and energy policies (energy savings, renewable energy sources).
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12. 3. Priorities, measures and expected impact
Area 1: Promotion of regions’ local development potential:
Measure 1.1: Improving the manufacturing environment of regions
Measure 1.2: Support for development and the diversification of local economic activities based on existing skills centres.
Measure 1.3: support for development of the tourist industry
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13. 3. Priorities, measures and expected impact
Area 2. Regeneration of wasteland in the context of a sustainable economic and spatial development policy and improvement of underprivileged lifestyles:
Measure 2.1: Conversion of wasteland for economic and town-planning purposes
Measure 2.2: improvement of declining lifestyles
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14. 3. Priorities, measures and expected impact
Area 3. Promotion of research, technological progress and innovation::
Measure 3.1: Strengthening of research and technological development capacities
Measure 3.2: Raising awareness of need for innovation in terms of processes, products and markets
Measure 3.3: Research and development of new technological skills centres
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15. 3. Priorities, measures and expected impact
Area 4. Promotion of natural environmental protection:
Measure 4.1: Strengthening of environmental strategies and support for the development of environmental technology
Measure 4.2: development or adaptation of infrastructure, mindful of environmental constraints
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16. 3. Priorities, measures and expected impact
Area 5. Technical assistance for the programme:
Measure 5.1: Management, implementation and monitoring of Objective 2 programme and checks to be conducted with respect to it
Measure 5.2: Information and training activities, and evaluation of the programme.
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17. 3. Priorities, measures and expected impact
Expected impact and specific objectives:
This plan also defined and quantified indicators for specific objectives to be achieved by the priorities, such as:
the number of undertakings supported (over by the end of 2006),
maintaining the population in the eligible areas (28.5% of the total population),
increasing the ratio of public expenditure on R&D (from 0.1% to 0.3% of GDP) and
increasing the rate of exploitation of industrial/commercial/craft waste (aiming for a rate of 80%).
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18. 4. Management and contact details
Ministère de l'Economie du Grand-Duché de Luxembourg Direction de l'Industrie et de la Technologie (DIT) Conseiller Mannes-Kieffer, Elisabeth , boulevard Royal L-2449 Luxembourg Tel.: Fax.: :
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19. 4. Management and contact details
European Commission:
José FLEURET
DG REGIO/D/3 (Unité Bénélux-Autriche)
tél:
fax:
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20. 5. Financial and technical information
Title : Objective 2 Programme for for the Grand Duchy of Luxembourg Intervention type : Single Programming Document CCI No. : 2000LU162DO001 No. of decision : C(2001) Final approval date : 31-DEC-01
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21. 6. Financial breakdown
Financial Breakdown by Funds (in millions of Euros)
EU Contribution ERDF
Total :
100.00% %
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