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West Macedonia Objective 1 Programme

Programme description

The European Commission has approved an economic and social development programme for the Greek region of West Macedonia. The total cost of the programme amounts to around EUR 581 million. Out of that amount, the European Structural Funds will provide EUR 372 million.

Eligible areas /  Contact / Financial tables

1. Action Priorities

The programme will provide infrastructure, support private investments to promote the role of the region, protect and improve the environment, reduce intra-regional disparities, encourage innovation and entrepreneurship and develop the region's mountainous, internal and less-favoured areas. The programme's priorities are as follows:

Priority 1 : Greater opportunities for job creation and the reduction of unemploymentThe Greek region of West Macedonia has a high rate of unemployment, mainly due to its peripheral and geographical position. Aid to businesses will focus on productive investments, which will go hand-in-hand with measures for cross-fertilization of innovation and entrepreneurship in new economic sectors. In addition to the above measures, improved skills and better training opportunities will help develop the conditions for job creation and sustainable, balanced growth. Over the duration of the programme, an estimated 2,300 jobs will be created for young people and women, with new jobs totalling 9,000.

Priority 2 : Improved trans-European networks linking the Region's productive centres Developing the infrastructure necessary for business is a key element for the promotion of growth of existing companies and the encouragement of new ones to locate to this region. A huge handicap for the region is the lack of an infrastructure linking its productive centres with the other productive centres of Greece and the EU. The "Egnatia" highway is designed to respond to this handicap and to break the region's isolation. This project is co-financed by the European Structural Funds.

Priority 3 : Upgrading of the urban areasThe region has some small urban areas depending significantly on primary and secondary sectors. A special effort is needed for the development of trade and services, with the creation of adequate conditions. Unemployment also constitutes a problem for the urban centres. In this context, measures for improved skills and better training opportunities will help develop the conditions for job creation.

Priority 4 : The restructuring of trades in crisis in the local economy and support for export initiatives to new marketsThe wars in Yugoslavia have seriously sanctioned the region, which has common frontiers with FYROM and Albania. This situation provoked the fall of exports to these countries and to the rest of Europe, and caused a deep crisis in the local economy. Restructure of trades in crisis and support for initiatives to new markets constitute the essential needs for development of this region.

Priority 5 : Sustainable development of rural areasThere is a need to modernise the rural infrastructure and to better adapt production, in order to promote the sustainable development of rural areas. The programme is intended to promote the long-term development of West Macedonia by bolstering its competitiveness and reducing regional disparities. On the other hand, sustainable rural development must take into consideration the exceptional natural environment of the region.

Priority 6 : Integrated development of mountain areas and areas near lakesFThere are significant intra-regional disparities and the focus of this priority is investments related to the economic development of the poorest mountain areas and areas near lakes. Eco-tourism represents a big opportunity for the integrated development of these areas with many natural and cultural attractions.

Priority 7: Technical assistance There is also provision for technical assistance to implement the programme. Financial support is available covering administration, monitoring and control.

2. Description of the eligible areas

West Macedonia is 21st on the list of Europe's poorest regions with a per-capita income (GDP) of 62% of the EU average. The region depends mainly on primary and secondary sectors. Its peripheral geographic position and, during the 90's, its proximity with former Yugoslavia and Albania, have provoked a more wide-spread isolation and has caused a deep crisis in the local economy. Nevertheless, after the return of peace to former Yugoslavia, the geographic position of the region can become the most important element of dynamism. The programme seeks to exploit the region's geopolitical position and the wild natural beauty of its mountains by improving the existing infrastructure and creating the conditions for lasting development by taking environmental problems more seriously.

3. Management and contact details

The management authority for the programme is a special department of the West Macedonia Region. A Monitoring Committee will be formed, made up of representatives from the competent ministries, regional and local levels, social and economic partners, as well as the institutions responsible for equal opportunities and sustainable development.

Financial information

Breakdown of finances by priority axis

Priority Axis EU Investment National Public Contribution Total Public Contribution
Enlargement of job creation opportunities and reduction of unemployment 21.344.995,00 28.459.992,00 28.459.992,00
Developing trans-European networks and connecting them to the Region's productive centres 121.004.438,00 161.339.251,00 161.339.251,00
Reinforcement of urban infrastructures 90.777.509,00 121.036.679,00 121.036.679,00
Restructuring crisis-hit businesses in the local economy and reinforcement of export initiatives 30.087.325,00 40.116.434,00 40.116.434,00
Sustainable development of rural areas 86.524.491,00 115.365.990,00 115.365.990,00
Integrated development of mountain areas and areas near lakes 33.615.408,00 44.820.542,00 44.820.542,00
Technical assistance 6.825.283,00 9.100.377,00 9.100.377,00
Total 390.179.449,00 520.239.265,00 520.239.265,00