1. History and evolution of EU Regional and Cohesion Policy
DG Regional Policy
European Commission

2. Cohesion Policy: an EU success story
It is a policy of solidarity - the vehicle for delivering regional aid
Through this policy, the EU seeks to ensure that:
- benefits of integration are as widely spread as possible
- development is as balanced as possible in geographical terms

3. Origins of EU Cohesion Policy
The EU founding fathers – representing the original 6 Member States - already had the vision, set out in the Treaty, that:
"the Community shall aim at reducing the disparities between the levels of development of the various regions“
This set the tone for subsequent policy…

4. The need for a coordinated Community solution to regional imbalances also recognised in Commission reports:
1965: First Communication on Regional Policy: conclusions of three groups of experts
The Assembly (today’s EP) expressed support in resolutions during the 1960s

5. 1970s: idea of structural aid for deprived regions starts taking shape
1968: creation of the Directorate General for Regional Policy
Jean Rey (1968) “Regional Policy in the Community should be as the heart is in the human body…and should aim to reanimate human life in the regions which have been denied it”
1971: Council Resolutions: incentives to regional development in CAP and co-ordination of financial aids

6. Start of real action with real resources
1973: “Thompson Report”...although the objective of continuous expansion (…) has been achieved, its balanced and harmonious nature has not…
1975: European Regional Development Fund (ERDF) set up for a 3-year test period. Aim was to correct regional imbalances due to:
predominance of agriculture
industrial change
structural unemployment

7. ERDF in the early days: eligible actions
1)investments in small enterprises creating at least 10 new jobs;
2) investments in infrastructure related to point 1;
3) infrastructure investments in mountainous areas, which also had to be eligible under the agriculture guidance fund.

8. ERDF in the early days: initial operations
Operations were purely national - financing predetermined projects in the Member States - little European influence
MSs had to apply for ERDF support at project level
Annual system of selecting and refinancing existing projects applied

9. Regional Policy in the 1980s
Key events: impetus for a more genuine ‘European’ Cohesion Policy:
- Single European Act
- Accession of Greece, Spain and Portugal
Adoption of single market programme
New countries brought increased regional disparities - funding became key means of bringing wealth up to EU average
Set the basis for genuine cohesion policy designed to offset the burden of the single market for the less-favoured regions of the Community

10. Regional Policy in the 1980s – strengthening Community action
1988:
European Council allocated ECU 64 billion to Structural Funds over 5 years
The Council adopted first regulation integrating on the Structural Funds
Introduced 4 key principles:
- CONCENTRATION: focusing on poorest regions
- PARTNERSHIP: involvement of regional and local partners
- PROGRAMMING: multi-annual programming
- ADDITIONALITY: EU expenditure must not substitute national

11. 1988 Reform: projects to programmes
Major shift from annual project selection by Member States
Moves towards a more strategic and multi-annual programming
……built on a wide partnership between regions, MSs and the EC

12. Summary: 1989 – 1993 Integration of the structural funds
5 priority objectives
Standardised rules
Decentralised management
Increase of the structural fund budget from ECU 6.4 billion p.a. in 1988 to ECU 20.5 billion p.a. in 1993 (relative share jumping from 16% to nearly 31% of EU budget)

13. 1994 Reform: doubling the effort
ECU 168 billion over 5 yrs for Structural and Cohesion Funds
Community Support Frameworks (CSFs), Operational Programmes (OPs), Single Programming Documents (SPDs)
9% for 13 Community Initiatives: KONVER, RETEX, PYMES, URBAN…1% for innovative actions for first time

14. Summary: 1994 - 1999 Introduction of objective 4
Simplification of procedures
New Cohesion Fund and Fisheries instruments
Increase of structural fund budget to ECU 32 billion p.a. (ca. 30% of EU budget)

15. 2000-2006: making a success of enlargement
2 key themes:
i) Efficiency: simplification design and procedures
ii) Preparation for enlargement
‘Agenda 2000’ paved the way for biggest ever enlargement of the EU - 10 new Member States joining in May 2004
This historic enlargement brought 20% increase in the EU population, but only 5% increase in GDP

16. 2000-2006: making a success of enlargement
€195 billion over 7 years for the 3 Structural Funds
€18 billion over 7 years for the Cohesion Fund
Other pre-accession instruments
- Phare: €10.9 billion (capacity building)
- SAPARD: €3.6 billion (rural development)
- ISPA: €7.3 billion (environment + transport)

17. Summary: 2000 - 2006 phasing-out of some objective 1,2 and 5b regions
3 common objectives
Introduction of pre-accession instruments for candidates (ISPA)
Increase of the structural fund budget to €38 billion p.a. (ca. 33% of EU budget)

18. Cohesion Policy today: focus on growth and jobs
3 objectives
Community initiatives mainstreamed
All regions eligible
Increase to €50 bn p.a. (ca. 36% of EU budget)
Rural development and fisheries funds outside cohesion policy