1. Preparing for the future – Maintaining public services for challenges ahead Riga, 20th November 2008 The European Structural Funds in Saxony-Anhalt

2. Saxony-Anhalt - facts and figures Surface: 20.477 km² Population : 2.402 Mio. inhabitants (October 2008)

3. Saxony-Anhalt‘s Economy GDP (2007):51 Mrd. € Economic growth (2007): +4,6 % Growth of industrial production (2007):+13,7 % GDP per capita (active persons):50.767 €

4. Labour Market Active population:1.011.500 Unemployed (October 2008):153.655 Unemployment rate (October 2008):12,3% (national average:7,2%) (average „Länder“ of the former GDR: 11,8%)

5. Administrative Reform in 2007 11 districts and 3 major cities Capital: Magdeburg Major Cities: (31.12.2007) Halle (234.295 inhab.) Magdeburg (230.140 inhab.) Dessau-Roßlau (89.234 inhab.) Administration Structuring of Saxony-Anhalt

6. European Structural Funds in 2007-2013 in Saxony-Anhalt ERDF ESF EAFRD EFF Total: 3.396,4 Mio. €

7. European Structural Funds in 2007-2013 in Saxony-Anhalt General strategy for the application of EU structural funds developed - with main objectives “growth“ and “employment“ Key aspects of activity: research/development/innovation (668,8 Mio. €); education (701,5 Mio. €); promotion of investments/ reduction of obstacles for public finance (1.187,9 Mio. €) Saxony-Anhalt invests in its industrial economy, infrastructure, environment, labour market, education EU cross-sectional objectives like sustainability, equal opportunities and the urban dimension are taken into account

8. Chances for municipalities in Saxony-Anhalt Structural Funds help creating new opportunities for “growth“ and “employment“ even in sparsely populated regions in Saxony-Anhalt by ► Strengthening the competitiveness of the industrial economy (above all SME‘s) i.e. -glaziery „Euroglass“, municipality of Sülzetal, Bördekreis -vaccine manufactory, municipality of Dessau-Rosslau -cellulose manufactory, municipality of Arneburg ► Supporting projects of innovative solutions in fields of renewable energies i.e.Biogas plant of 500 KW at Klein Schwechten (biomass and agricultural waste products to be converted into biogas used for electricity generation) ► Supporting the creation of a modern traffic infrastructure i.e. 430 km of new roads, bridgeworks and by-passes created (during 2000-2006)

9. Chances for municipalities in Saxony-Anhalt ► Strengthening locations for scientific research and innovative solutions i.e.- Fraunhofer Center of Silicon Photovoltaics at Halle (45 Mio. € financed by ERDF) - Bio-Nano-Zentrum at Halle (17 Mio. € financed by ERDF) ► Creating a business-friendly infrastructure regarding the urban dimension of regional policy (monument restoration as an important soft locational factor) i.e.- „Alte Kanzlei“ in Tangermünde - „Ständehaus“ in Merseburg Coupling EU-funds with own ressources (Development Bank Saxony-Anhalt)

10. Challenges for municipalities in Saxony-Anhalt ►Dealing with manifold policy recommendations and tasks resting in local responsability (i.e. Creating mid- and longterm plans of urban renovation, improving systems of traffic infrastructure, enhancing synergetic effects between environmental protection and innovation, assuring existence of cultural institutions) ► Securing urban enhancement ►Securing urban development and public services under the conditions of decline in population (demographic change) ► Securing financial and social cohesion in sparsely populated regions under the conditions of the enlargement of the European Union (managing the social process of administrative reform) ► Need for ongoing dialogue between regions and municipalities to realise the principle of subsidiary, which is one of the main reasons for continous debates on administrative and functional reforms in Saxony-Ánhalt

11. Preparing for the future – Maintaining public services for challenges ahead Riga, 20th November 2008 Rainer Robra Minister of European Affairs and Head of State Chancellery of Saxony-Anhalt Thank you very much for your attention