Objectives 1, 2 and 3
The Agenda 2000 reform of the structural funds focuses assistance available under the Community's regional policy on crucial development problems. The present rules thus envisage the setting of three priority objectives, as compared with six previously. Objective 1 promotes the catching-up of the economies of regions whose development is lagging behind. It is "regionalised" in that it applies to statistically demarcated regions. Only those whose per capita GDP is less than 75% of the Community average are eligible. The seven "outermost" regions, the areas in Sweden and Finland with very low population density and Northern Ireland also receive assistance. In all, Objective 1 covers sixty or so regions in thirteen Member States. Transitional support is also available over a seven-year period for the regions previously eligible between 1994 and 1999 and a performance reserve for the most virtuous regions has been set up. Objective 1 receives 70% of the structural funds' budget (i.e. 137 billion over seven years), which is broken down between the four funds (ERDF, ESF, EAGGF Guidance Section and FIFG). Basic infrastructures, the development of human resources, investment in research and innovation, and the information society are the four main priority areas. Objective 2 contributes to the economic and social conversion of regions in structural difficulties. It too is regionalised: the demarcation of eligible areas depends both on national and European population ceilings (18% of the Union's population) and on specific socio-economic criteria. Four categories of eligible area are defined: areas undergoing economic change in industry and the service sector, declining rural areas, urban areas in difficulty and depressed areas dependent on fisheries. Since all their territory is eligible under Objective 1, Greece, Ireland and Portugal do not qualify for assistance under Objective 2. Transitional support is also available for the regions previously eligible under Objectives 2 and 5(b) during the period 1994-99. The Objective 2 budget amounts to 22.5 billion over seven years (11.5% of the total budget) and is financed by the ERDF and the ESF. Objective 3 supports the adaptation and modernisation of educational, training and employment policies and systems. It serves as the reference framework for all measures taken on the basis of the new employment title in the Treaty of Amsterdam and for the resulting European strategy. It is not regionalised: all regions falling outside Objective 1 are eligible. It has a budget of 24.05 billion over seven years (12.3% of the total budget) and is financed exclusively by the ESF. How Objectives 1, 2 and 3 develop beyond 2006 will depend on the forthcoming assessments of their impact on economic and social cohesion and on the outcome of the debate on the future of regional policy after 2006 and ahead of the Union's enlargement to take in the Central and Eastern European countries. See: •Agenda 2000 •Economic and social cohesion •Enlargement •European Employment Strategy (EES) •Structural Funds and Cohesion Fund | ||||
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