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Structural funds

 

The harmonious development of the entire Community and the reduction of both the disparity in levels of development among the various regions and of the backwardness of less favoured regions are the nucleus of the Union's cohesion policy. Harmonisation among territories and among sectors and economic activities, as well as a high level of employment and social protection and the improvement of the standard of living, are among the principal objectives of the entire Community, as synthesised and pursued by regional policy.
The European Union's regional policy is based on solidarity: a part of the Member States' contributions to the Community budget is allocated to the more needy regions and communities.

There are four structural funds:
• the European Social Fund (ESF);
• the European Regional Development Fund (ERDF);
• the European Agricultural Guidance and Guarantee Fund (EAGGF);
• the Financial Instrument for Fisheries Guidance (FIFG).

They are intended to achieve a number of priority objectives:
• 70% of appropriations allocated to regions whose development is lagging behind and where 22% of the EU population is concentrated (Objective 1);
• 11.5% to support economic and social reconversion in areas facing structural difficulties, in which 18% of the European population lives (Objective 2;
• 12.3% to modernising systems of training and promoting employment (Objective 3), in regions to which Objective 1 does not apply and where this allocation is part of development strategies already being implemented.

As far as eligibility is concerned, Objective 1 concerns those regions in which the gross domestic product per capita is less than 75% of the Community average, Objective 2 concerns those regions with structural problems in which social and economic reconversion must be prioritised and with sufficiently large populations or areas.

The funds and the objectives
In addition, four Community initiatives have been launched to find common solutions to specific problems, with overall appropriations equal to 5.35% of the budget allocated for structural funds:
• INTERREG III (transfrontier, transnational and interregional co-operation);
• EQUAL (transnational co-operation to combat discrimination and inequality on the labour market);
• LEADER+ (rural development);
• URBAN II (economic and social renewal of towns and urban areas in crisis to encourage sustainable development).
The 2000 Agenda, adopted in Berlin on 25 March 1999, established the bases for the current phase of structural funds' programming, which provides a total of € 213 billion to finance Community actions in the 2000-2006 period.

Italy and the Funds
The southern Italian regions (Basilicata, Calabria, Campania, Molise, Apulia, Sardinia and Sicily) all fall under Structural Funds Objective 1. The projects financed with Community resources in these regions are defined in the Community Support Framework (CSF), a multi-fund document that describes the development strategy for the southern Italy with the contribution from the four Structural Funds.
The Community Support Framework is broken down into 14 operational programs. Seven of these are regional (ROP), one for each of the six regions to which Objective 1 applies (Basilicata, Calabria, Campania, Apulia, Sardinia and Sicily), and Molise, the only Italian region receiving transitory support; and seven are national (NOP), managed by the central administrations (Scientific Research, Technological Development, Higher Education, the School for Development, Security for the Development of the South, Local Development, Transport, Fisheries and Technical Assistance).

Structural Funds Objective 2 (the Italian regions of the Centre-North) is intended to facilitate social and economic reconversion in areas with structural difficulties.
Admissibility to fund resources (ERDF and ESF) for Objective 2 applies to the following areas (the relative criteria are given in parentheses):
1. Industrial areas (unemployment rate greater than the Community average, percentage of jobs in the industrial sector greater than the Community average, deformation on the unemployment front);
2. Rural areas (low population density/high level of agricultural employment, combined with a high level of unemployment or population reduction);
3. Urban areas (satisfying one of the following criteria: high rate of long-term unemployment, high level of poverty, impaired environment, criminality and delinquency, low level of education);
4. Areas dependent on fishing (significant level of persons employed in the fisheries sector and reduction in jobs in this sector).

Structural Funds' Objective 3 is intended to facilitate adjustment and modernisation of policies and schemes for education, training and employment and provides financial support in areas not covered by Objective 1. The Italian regions admissible are those of the Centre-North, Abruzzo and the provinces of Trento and Bolzano.

Resources
Objective 1: € 23,959 million, including € 201 million destined for the transitory support of the Region of Molise.
Objective 2: € 2,145 million, in addition to € 377 million for the transitory support of areas already the subject of Community action in the previous program period.
Objective 3: € 3,744 million.

Management
The Structural Funds are not assigned directly to projects chosen by the European Commission. Once the major priorities for a development program have been defined by common agreement, the projects are selected and managed exclusively by national and regional authorities. This increasing decentralisation is one of the principal innovations underway. Projects approved are subsidised partly with national funds (public or private) and partly with European funds. But the Union's contribution (Union programs are always financed with a combination of Community and national resources) is added to that made by the individual Member States to help them overcome their own financial limits. The Regions then manage and spend the resources assigned to them.
For information on invitations to tender, it is necessary to refer directly to the regional authorities.

www.regioni.it


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