The Structural Funds in Italy in the period 2000-06
The Heads of State and Government reached political agreement on Agenda
2000 at the European Council held in Berlin on 24 and 25 March 1999. The
Agenda 2000 action programme is the reference framework for Union policies
in the period 2000-06.
The agreement enhances the effectiveness of the Structural Funds by
concentrating assistance still further on geographical areas and selected
themes. The Council also estimated that, with a budget of EUR 195 billion
for the Structural Funds for 2000-06, the Union could continue its overall
drive towards social and economic cohesion. Having received European Parliament
approval, the Council of the European Union formally adopted the new Structural
Funds regulations on 21 June 1999.
In order to launch the new programming round for the Structural Funds,
on 1 July 1999 the Commission adopted a series of decisions implementing
the new Regulations. It set budget envelopes by Member State for each
of the three Objectives: Objective 1 (regions whose development is
lagging behind), Objective 2 (regions undergoing conversion)
and Objective 3 (education, training and employment). It also identified
the eligible geographical areas for Objective 1 for the period 2000-06
and the population ceilings for the Objective 2 areas.
Italy will receive a total EUR 29 656 million (ITL 57
422 billion) under the Community's regional policy for the 2000-06 period,
as against the EUR 22 475 million it received in 1994-99 (an increase
of 32%).
1. Objectives
Within this overall budget, assistance from the four Structural Funds,
the European Regional Development Fund, the European Social Fund, the
European Agricultural Guidance and Guarantee Fund, Guidance Section (EAGGF
Guidance Section) and the Financial Instrument for Fisheries Guidance
(FIFG) will support one of the three Objectives :
- Objective 1 : regions whose development is lagging
behind
Objective 1 promotes the development and structural adjustment of regions
whose development is lagging behind. The regions eligible for Objective
1 are those whose per capita GDP is less than 75% of the Community average.
The Italian Mezzogiorno regions (Sicily, Calabria, Basilicata,
Apulia, Campania and Sardinia) remain eligible for Objective 1
in the period 2000-06. The Molise region, however, which was eligible
for Objective 1 in the 1994-99 period but has since achieved a level of
per capita GDP above 75% of the Community average, lost its eligibility
for Objective 1 on 1 January 2000. The region qualifies for transitional
assistance until 2006, however.
The budget for Objective 1 amounts to EUR 22 122 million (ITL
42 823 billion), as against EUR 16 195 million for 1994-99. It
is made up of two sub-headings:
- EUR 21 935 million for the six Mezzogiorno regions;
- EUR 187 million for Molise as transitional aid.
The national authorities are responsible for deciding on the breakdown
of funding for the various regions within these two headings.
- Objective 2: areas undergoing conversion
Objective 2 (which now covers Objectives 2 and 5(b) from the period 1994-99)
supports the economic and social conversion of areas in structural difficulties.
Such areas in the 2000-06 period fall into four categories: industrial
areas, rural areas, urban areas and areas dependent on fisheries.
On 1 July 1999, the European Commission fixed for each Member State
the population ceiling eligible for Objective 2. In the case of Italy,
this ceiling is set at 7 402 000, or 13% of Italy's total population.
Objective 2 funding is allocated among the Member States solely on the
basis of eligible population. In other words, each inhabitant of an eligible
area qualifies for an identical rate of aid of EUR 41.4 a year
(1999 prices).
The amount allocated to Italy under this system is EUR 2 522 million
(ITL 4 883 billion) (1999 prices). It is broken down into two sub-headings:
- EUR 2 145 million for areas eligible for Objective 2;
- EUR 377 million in transitional aid (for areas eligible under Objectives
2 and 5(b) in the 1994-99 period but which are no longer eligible for
Objective 2 in the current period).
- Objective 3 : Education, training and employment
Objective 3 supports the adjustment and modernisation of educational,
training and employment policies and systems. It brings together the former
Objectives 3 and 4 and operates under the new Title on employment laid
down in the Amsterdam Treaty. Objective 3 does not operate through a classification
of areas; it instead may provide assistance anywhere in the European Union,
except for the Objective 1 regions.
The Objective 3 allocation for Italy in 2000-06 is EUR 3 744 million
(ITL 7 249 billion) (1999 prices), as against EUR 1 869 million
in the 1994-99 period.
- Fisheries
The Financial Instrument for Fisheries Guidance (FIFG) finances measures
supporting the common fisheries policy. In the Objective 1 regions FIFG
funding is included in the regional development plans along with the other
Funds. The FIFG has allocated Italy a budget of EUR 96 million
(ITL 186 billion) to fund this assistance in areas outside the Objective
1 regions in the 2000-06 period.
2. Community Initiatives
Alongside these three Objectives, the Structural Funds will also provide
assistance between 2000 and 2006 through four Community Initiatives
:
- INTERREG: cross-border, transnational and inter-regional cooperation
intended to encourage the harmonious and balanced development of the
whole of the Community area;
- URBAN: economic and social regeneration of cities in crisis with a
view to promoting sustainable urban development;
- LEADER: rural development;
- EQUAL: transnational cooperation to promote new means of combating
all forms of discrimination and inequalities in connection with the
labour market.
Italy will have a budget for the 2000-06 period of EUR 1 172 million
(ITL 2 269 billion), as follows:
- INTERREG: EUR 426 million
- EQUAL : EUR 371 million
- LEADER: EUR 267 million
- URBAN: EUR 108 million
3. Rural development policy
While this is not a Structural Funds policy in its strictest sense,
Italy will also benefit under the rural development policy promoted by
the EAGGF Guarantee Section.
The Berlin Agreement (May 1999) made rural development policy a major
pillar of the common agricultural policy (CAP). The EAGGF Guarantee Section
now supports four measures covering the entire European Union (early retirement,
compensation for farming in disadvantaged areas, afforestation of agricultural
land and agro-environmental measures) and six other measures restricted
to regions not eligible under Objective 1 (farm investment, installation
of young farmers, training, forestry, processing and marketing of agricultural
products, adjustment and diversification of rural areas). This means that
rural development is not based on a classification of areas.
Italy's annual allocation for rural development amounts to EUR 595 million
(ITL 1 152 billion), equal to 13.7% of the total budget.
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