1. The new European Union Strategy for Rural Development
AER Rural Development Conference October 2005, Exeter, Devon (UK)
The new European Union Strategy for Rural Development
JB. Benhaiem
European Commission
Co-ordinator for UK Rural Programmes

2. Current EU Rural Development Policy (2000-06)
THE AGENDA
Context
Current EU Rural Development Policy ( )
Rural Development and Lisbon objectives
New EU Rural Development Policy ( )
Conclusion

3. RURAL AREAS: PROBLEMS AND CHALLENGES
56 % population of EU-25 in rural areas
92% of the EU territory
53 % of the EU employment
Lower :
income (1/3)
higher education
ICT broadband access, etc
Lack of :
business opportunities
contacts (remoteness, peripherality)
training infrastructure
Rural areas face challenges re. : growth, jobs and sustainability
But high potential for : growth in new sectors, rural amenities, tourism, place to live and work, natural resources and highly value added landscapes

4. COMMON AGRICULTURE POLICY TO-DATE
1st pillar
Support to market
financed by EAGGF-Guarantee
2003 reform
Decoupling (from production)
Conditionnality (cross-compliance)
Modulation (money transfer to 2nd pillar)
2nd pillar
Rural development
EAGGF-Guarantee + Guidance
2003 reform
Principles unchanged
Reinforcement (modulation)
New measures (quality, animal welfare)

5. RURAL DEVELOPMENT COVERAGE (2000-06)
Land
Management
Environment
LFA
Afforestation
Infrastructure
Basic
Services
Physical
Capital
Investment
Human
Training
(ESF)
(EAAGF -
Guarantee and Guidance)
Modernisation
Restructuring
Economic
Diversification
(ERDF)
Employment
Urban/ Rural
Linkage
Rural
Economy
Social Fund
Agricultural Fund
Regional Fund
Land
Management
Environment
LFA
Afforestation
Infrastructure
Basic
Services
Physical
Capital
Investment
Human
Training
(ESF)
(EAAGF -
Guarantee and Guidance)
Modernisation
Restructuring
Economic
Diversification
(ERDF)
Employment
Urban/ Rural
Linkage
Rural
Economy
Social Fund
Agricultural Fund
Regional Fund
LEADER APPROACH

6. BREAKDOWN OF RD EU FUNDING FOR EU-15 (2000-06)
EU funding : bn € 52.5
National funding : bn € 52.5
Total RD budget: bn € 105

7. CURRENT RD AND COMMUNITY PRIORITIES
Agriculture (incl. RD)
largest user of rural land
key determinant factor for the quality of the countryside, the environment
importance and relevance of the EU CAP
Göteborg agenda and Rural Development
RD relevant to sustainable development
Promotion of high quality products, organic production, renewable raw marerial, biodiversity
Lisbon agenda and RD
RD is central to the Lisbon process
RD is a key tool for diversification, restructuration and innovation in rural areas
RD help promote competitiveness in agri-food processing (ICT, R&D)
environment and associated tourism as a major source of income and jobs

8. RURAL DEVELOPMENT POLICY 2007-2013
New regulation ( )
“tool kit” (approved Sept )
new strategic approach for rural development with clear focus on EU
priorities (Community Strategic Guidelines)
new “European Agriculture Fund for Rural Development (EAFRD)
strengthened “bottom-up” approach
but, budget still under discussion
Broader scope
addresses innovation and restructuring needs in farming and forestry
improves environmental protection
should create more jobs and opportunities in rural areas
Simpler implementation
one fund
one programming instrument
Responding better to citizens’ concerns
food safety and quality
rural amenities

9. For all rural areas in the EU
RURAL DEVELOPMENT POLICY
Simplification
in future:
today:
Sources of finance (funds)
systems for financial management and controls
5 types of programming
1 fund
1 system for financial management and controls
1 programming system
For all rural areas in the EU 9

10. Three core objectives:
RURAL DEVELOPMENT POLICY
Three core objectives:
Improving the competitiveness of the farm and forestry sector through support for restructuring, modernisation/innovation and quality production
Enhancing the environment and the countryside through support for land management
Improving the quality of life in rural areas and promoting diversification of economic activity 10

11. RURAL DEVELOPMENT POLICY 2007-2013
4 axes to implement the objectives:
To each core objective corresponds a thematic axis in the rural development programme
The three thematic axes are complemented by a « methodological » axis dedicated to the LEADER approach (LEADER axis)
A minimum funding for each axis is required to ensure some overall balance in the programme (10% - 25% - 10% - 5%)
As building blocks for each thematic axis a range of pre-defined measures is available 11

12. « LEADER » Axis Rural Development 2007-2013 Axis 1 Competi-tiveness
Axis 2 Environment + Land Management
Axis 2 Environment + Land Management
Axis 3 Economic Divers. + Quality of Life
Axis 3 Economic Divers. + Quality of Life
Single set of programming, financing, monitoring, auditing rules
Single Rural Development Fund

13. Axis 1: Increasing Competitiveness
RURAL DEVELOPMENT POLICY
Axis 1: Increasing Competitiveness
Measures aiming at improving human potential: vocational training/information; setting up of young farmers; early retirement; management, relief and advisory services
Measures aiming at restructuring physical potential: investments to improve production, processing and marketing structures
Measures aiming at improving the quality of agricultural production and products: adaptation to new EU-standards; participation in food quality schemes; promotion for quality products
Transitional measures for the new Member States (until 2013): semi-subsistence farms; setting up of producer groups 13

14. Axis 2: Land management RURAL DEVELOPMENT POLICY 2007-2013
Measures targeting the sustainable use of agricultural land: mountain areas and other areas with handicaps (LFA); Natura areas; agri-environment; animal welfare; ...
Measures targeting the sustainable use of forestry land: first afforestation; first establishment of agro-forestry systems; Natura areas; forest-environment; restoring forestry production potential and introducing prevention actions; ...
Note: Agri-environment measures are compulsory for each programme 14

15. RURAL DEVELOPMENT POLICY 2007-2013
Axis 2: Land management/environment
Less favoured areas:
Designation of areas; max. amounts; calculation of allowance
Current regime continued until 2010
Report and proposal by the Commission in 2008
Council decision in 2009
New regime to enter into force in 2010

16. RURAL DEVELOPMENT POLICY 2007-2013
Axis 3: Diversification of the rural economy and quality of life in rural areas
Measures aiming at the diversification of the rural economy: on farm diversification to non-agricultural activities; support for micro-enterprises; rural tourism
Measures aiming at the improvement of the quality of life: Basic services; village renewal; conservation and upgrading of the rural heritage (natural and cultural)
Training and capacity building 16

17. RURAL DEVELOPMENT POLICY 2007-2013
“LEADER” Axis
Implementation of local development strategies through a LEADER approach to contribute to the achievement of the objectives of one or several of the three thematic axes
Inter-territorial and trans-national cooperation
Capacity building and working of Local Action Groups 17

18. Programming Steps RURAL DEVELOPMENT POLICY 2007-2013
Community Strategy Guidelines setting out the EU priorities for the three thematic axes
National strategy plans translation the EU priorities to the national situation and ensuring complementarity with other policies (Cohesion policy – ESF/ERDF)
National or regional rural development programmes articulating the four axes

19. Regulation and Guidelines
RURAL DEVELOPMENT POLICY
Regulation and Guidelines
Rural Development Regulation
=> purpose and scope of assistance from the RD fund
Community Strategy Guidelines
=> EU level priorities within the RDR framework, in particular focus on sustainability (Göteborg) and growth and jobs (Lisbon)

20. The Community Strategy Guidelines will help to:
RURAL DEVELOPMENT POLICY
The Community Strategy Guidelines will help to:
identify and agree the areas where the use of EU support for rural development will create the most value added at EU level;
make the link with the main EU priorities (Lisbon, Göteborg) and translate them into RD policy;
ensure consistency with other EU policies, in particular in the field of cohesion and environment;
accompany the implementation of the new market oriented Common Agricultural Policy and the necessary restructuring that it will entail in the old and the new Member States.

21. RURAL DEVELOPMENT POLICY 2007-2013
Community guidelines
Axis 1 priorities: knowledge transfer and innovation in the food chain and focus on priority sectors for investment in physical and human capital.
Axis 2 three EU level priority areas: biodiversity and preservation of high nature value farming and forestry systems, water, and climate change.
Axis 3 the overarching priority of the creation of employment opportunities in the fields of diversification and quality of life.

22. RURAL DEVELOPMENT POLICY 2007-2013
Community Guidelines
Axis 4 (Leader)
priority: improving governance and mobilising the endogenous development potential of rural areas.
Horizontal: Member States should ensure that synergies between and within the axes are maximised and potential contradictions avoided. They will also wish to reflect on how other EU level strategies can be taken into account.
Horizontal: The synergy between structural, employment and rural development policies needs to be encouraged.

23. MEETING THE LISBON STRATEGY THROUGH NEW RD: EXAMPLES
ICT take up by farms and food processing farms
Extension of broadband coverage to promote new way of selling
Facilitating on-farm tourism through ICT use (booking, promotion and links)
Facilitating innovation in the supply chain
Targeted investment in equipment, process and training
Innovation initiatives for quality product
Co-operation in Research & Development
Networking between R&D centres, food industry and farmers
Take up of new technologies and processes
Public-Private partnership
Leader approach
Local services designed by local people
Increasing competitiveness
Entrepreneurship
Product quality and promotion
Quality schemes and « niche » products
Job creation and rural diversification
Tourism, craft and rural amenities
Micro businesses (training, coaching, etc.)
Child care facilities
Co-operation activities on high quality farms and local products

24. The timetable RURAL DEVELOPMENT POLICY 2007-2013
Legislative framework: Council regulation & Implementing Rules in place by end of 2005
Community Strategic Guidelines: adoption Autumn 2005
National strategy plans: end of 2005/beginning 2006
RD programmes: submission 1st half 2006, approval 2nd half 2006

25. At the level of the axis as share of total eligible public expenditure
COMMUNITY FINANCING RATES
At the level of the axis as share of total eligible public expenditure
For axis 1 and 3 a maximum cofinancing rate of 50% (75% in Convergence regions)
For axis 2 and 4 a maximum cofinancing rate of 55% (80% in Convergence regions)

26. SUPPORT AND NETWORKS
Technical assistance at programme level for preparation, management, monitoring, evaluation, information and control activities (up to 4% of programme funding)
A national rural network supporting and bringing together the organisations and administrations active in rural development (financed from the technical assistance at programme level)
A European rural development network to interface with the national networks and administrations (financed from the technical assistance at Commission initiative, 0.25% of RD funding)

27. CONCLUSION
EU Rural development policy :
takes into account the needs of European rural areas and faces their challenges
complements national/regional/local policies
is an important element of the Lisbon process, in particular for rural economies
should create more jobs and opportunities in rural areas
RD programmes are just now being designed in synergy with the “cohesion” programmes at national and regional level
The challenge for all of the stakeholders in rural economies is to take part somehow in the process (planning, development, implementation) and in the rural networks.