ACCESS TO THE

EUROPEAN STRUCTURAL FUNDS

PRACTICAL GUIDE & DIRECTIONS FOR USE

FOR

THE EUROPEAN SUGAR INDUSTRY

developed with the social partners of the

sectoral social dialogue committee

CEFS-EFFAT

(Version of 16.1.200622.12. 2005)

Observatoire social européen

Christophe Degryse et Philippe Pochet
with the participation of Cécile Barbier, Valérie Cotulelli and Dalila Ghailani

TABLE OF CONTENTS

FOREWORD

I.DIRECTIONS FOR USING THIS GUIDE

A.Three stages

B.Industrial scenarios

II.INTERACTIVELISTOF SUGAR FACTORIES

III.ThE STRUCTURAL FUNDS: OVERVIEW

A.The European Structural Funds: what are they about?

Introduction

1.Three main structural funds

■ERDF

■ESF

■EAGGF

2.Three priority objectives for 2000-2006

■Objective 1

■Objective 2

■Objective 3

3.Community Initiatives

■Leader+

■Interreg

■Equal and Urban

4..Allocation of aid

5.Maximum aid

6.A special case: the Cohesion Fund

B.The Structural Funds: how do theywork?

1.Programming

2.Partnership

3.Additionality

4.Management, follow-up and evaluation

  1. Payments and financial controls

C.Structural Funds and rural development

1.Support for rural development

2.Leader+ (2000-2006)

IV.THE STRUCTURAL FUNDS IN THE ENLARGEDUNION (2007-2013)

V.PRACTICAL Information Per Member State

Information for each sugar factory on the relevant regional programmes, the persons to contact at regional level, the relevant national web sites and general information concerning:

■The ERDF at national level

■The ESF +the national contact points

■Community Initiative Leader +

■Rural development plans in the Member States

VI.LEXICON

For industrialists and workers in the sector, as well as for producers and producing areas, a period of major upheaval is beginning with the reform of the common organisation of the market in sugar. Companies will close down whilst others will take up different activities. Thousands of workers will have to change their occupation or find another job altogether. Whole regions will have to convert.

The European Union’s financial instruments can make a decisive contribution during this period, helping all the players in the sector to face up to the coming changes, lessening the economic and social impact of the reform and favouring new developments. The Structural Funds, and especially the European Social Fund, will thus be called upon to facilitate the economic regeneration of the regions concerned and strengthen the adaptation capacities of workers in the sector.

This guide is therefore a precious tool. With it, the European social partners in the sugar industry who have produced the guide together are pursuing their essential role of anticipating and accompanying the changes affecting the sector.

The European Commission will continue to support the approach of partnership, anticipation and mobilisation developed in this way, in accordance with the guidelines in the Communication on "Restructuring and employment" which it adopted in 2005, and ensure a reinforced follow-up of the sector incorporating the social aspects. In effect, the actions undertaken are fully in keeping with the strategy of anticipating and accompanying restructuring which the European Union is pursuing within the context of growing globalisation[1].

Fernando VASQUEZ

Adviser to the Director-General
in charge of Corporate Restructuring
EUROPEAN COMMISSION
Directorate-General for Employment,
Social Affairs and Equal Opportunities

FOREWORD

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Using the European structural funds is a particularly complex business. It means learning a specific vocabulary and entering a European logic that is often very different from the national logic. However, when it comes to using the funds, the local, regional and national authorities play an essential role. So we should adopt a dual approachin order to:

-understand the basic European mechanisms;

-implement them at regional and local level.

This guide is aimed at providing precise selective information concerning:

-the European level;

-the decentralised national level, through a number of addresses and contacts.

The key to success for sugar factories will consist in “staging” their case at the different levels: European, national, regional and local. In effect, the problems connected with restructuring or company closures in the sector are not “spontaneously” taken into account. But the restructuring of the sugar sector creates a new situation providing opportunities -whenever possible – for employers (as companies) and employees (as individuals) to receive European subsidies with a view to confronting the crisis more effectively.

Financing is always in the form of “cofinancing” and therefore requires national, public or private intervention.

Furthermore, aid for “training” or “resettlement”, for example, generally forms part of a larger whole. That is why knowledge of local/regional priorities is essential.

Moreover, in 2005 we are going through a transitional period. In effect:

the current general rules (perspectives for 2000-2006) will apply until the end of 2006 but the funds can be used until 2008.

The new financière programming for 2007-2013 was adopted by the European Council of December 2005. The European Parliament has still to confirm its agreement. is under discussion at the Council of Ministers. It is on this debate that will depend in particular the adoption of the next financial perspectives, or Community budget, and notably the amount of the budgets available. a été adoptée par le Conseil européen de décembre 2005; toutefois, à l’heure d’écrire ces lignes, elle doit encore passer par le Parlement européen. Ce sera Cette nouvelle programmation aura un impact. This will be This new programming will be especially important for a number of regions which will no longer be fully subsidised within the framework of Objective 1 (regional average less than 75% of the Community average).

Straddling two budgetary periods, we are thus faced with numerous uncertainties. This Guide provides the latest information available on access to the structural funds.For a summary table of the differences between 2000-2006 and 2007-2013, click here.

It is essentially aimed at helping the different local players (companies and individuals) to understand theessential rules without getting lost in the mass of Community information. Once they have this information, it will be up to them, if they judge adequate, to plead their case successfully at national level and have it recognised as a priority issue in local development.

It is important to know from the beginning that these measures require real energy, the effort of compiling a relevant dossier and the will to convince and to succeed. Communications with the local authorities must start as early as possible because the implementation of projects takes time. But there can be no doubt that at the end of it all lies considerable potential financing, particularly for the new member countries of the European Union. This Guide provides the information; the action is in your hands!

I - DIRECTIONS FOR USING THIS GUIDE

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Before anything else, rather than reading this practical guide in a linear manner, we recommend you to use the interactive links, which will allow you to select the information that is of direct interest to you, according to:

-your geographical location(First approach)

-your industrial project(Second approach)

-the type of European aid that you could obtain.

However – if you are not familiar with the structural funds and so as not to get lost in the maze of information available on the Net – it seems wiser to read first of all the summary in this guide (“To find out more”).

You can also display a document map providing a permanent view of the Guide’s table of contents (on the toolbar, select view – document map).

The European Union allocates part of its budget to financing actions aimed at strengthening the economic and socialcohesion of the Union’s territory. This financing is effected firstly through the “structural funds”and, additionally, through “Community initiatives”. Within the context of the reform of the sugar regime, it is possible to envisage the financing of various kinds of actions, such as industrial conversion, training for workers, structural adjustment, etc. However, the measures to be taken are not always easy.

Above all, it is necessary to check:

  • whether the region in which the sugar factory is located corresponds to a “priority” region for the European Union (see Part III.A.2)
  • compatibility between the industrial measures envisaged (e.g., conversion, worker training, diversification of activities, early retirements, etc.) and the type of aid provided by Europe (political priorities)
  • whether this project falls within the scope of the regional programmes and forms part of local priorities. This calls for verification of the texts (see Community Support Framework and SPD) and contacts with the national and regional players with whom it should be determined, if appropriate, how to include this new project among the current priorities, by modifying some of these priorities if necessary.

Furthermore, the aid provided at national or European level must comply with the regulation on State aid. This regulation is going to change shortly. Please also see the Communication from the Commission entitled “Community Guidelines on state aid for rescuing and restructuring firms in difficulty” (OJ C 244/2 of 1st October 2004).

To begin with, we propose an initial approach in three stages based on your sugar factory. The aid that you could receive depends first of all in fact on the location of your factory in relation to the different areas and objectives.

A second approachcan be taken through your industrial project: closure, partial collective redundancies, conversion, restructuring/diversification on a local labour market.

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A – FIRST APPROACH ACCORDING TO THE LOCATION OF THE SUGAR FACTORY

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stage 1

Are you in an Objective 1 or Objective 2 area of the European Union?

To find out:

-consult the table of sugar factories in Europe,

-click on the region corresponding to your industry, which will take you to the regional policy site of the European Commission, on the page corresponding to your region.

stage 2

If you are in an Objective 1area:

-consult the type of aid that you can obtain.

If you are in an Objective 2area:

-consult the type of aid that you can obtain.

If you are not in eitherObjective 1 or Objective 2:

-consult the actions financed within the framework of Objective 3.

Worth knowing:

-The Objective 1 regions are not covered by Objectives 2 and 3. This is the case with the 10 new member countries (except for certain areas around the capital).

-Objective 3 covers all the territory apart from Objective 1 regions, but includes Objective 2 regions.

SO:

  • if you are in Objective 1: ignore Objectives 2 and 3 (except for Community initiatives).
  • if you are in Objective 2: look at your regional Objective 2 plans and the Objective 3 SPDs (which can be consulted in the “Practical Information” part of this Guide).
  • You are neither Objective 1 nor 2: look at the Objective 3 SPDs (idem).

stage 3

After defining the type of aid that you can claim, contact the national authorities to assess the concrete financing possibilities with them.

AND TO FIND OUT MORE ABOUT

HOW THE STRUCTURAL FUNDS WORK

-Overview of the structural funds (ESF, ERDF, EAGGF)

-How the structural funds work

-What future for the structural funds in 2007-2013?

-Lexicon of Community jargon

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B - SECOND APPROACHACCORDING TO THE INDUSTRIAL PROJECT ENVISAGED

WHAT IS YOUR INDUSTRIAL SCENARIO?

Another way of using this Guide is to start with your industrial project. In effect, different possibilities exist according to whether you decide on closure, partial collective redundancies, the development of a local labour market or conversion. What are your scenarios?

==> Company closure

This involves aid for closures as provided for by the new sugar regulation and the additional use of the structural funds. It is possible for a link to be established directly at European level between the level of aid for the closure and additional access to the structural funds (in course of analysis).

==> Staff cuts / Retraining

In this case, the European Social Fund (ESF) seems to be the main fund.

For conversion, ERDF can also be relevant in certain conditions (but investments must be maintained for 5 years; it is therefore necessary to verify compatibility with the project).

==> Diversification / Local employment market

Apart from ESF, the theme of rural development and Leader+ seem particularly appropriate.

==> Industrial conversion (e.g. production of bioethanol)

The environmental aspects of the different programmes, such as the cohesion fund, can be an advantage. To find out more about the European bioethanol strategy, click here.

For conversion, ERDFcan also be relevant in certain conditions (but investments must be maintained for 5 years; it is therefore necessary to verify compatibility with the project).

ADDITIONAL CRITERIA: DURATION OF THE PROJECT AND PRIORITIES

  • in the case of total or partial closure, quick access to the present structural funds is necessary. It is a good idea to act within the 2000-2006 budgetary framework.
  • in the case of diversification or conversion, it seems more rational to include your action in the next programming (2007-2013).
  • It is also necessary to check the priorities to which you have access over the two periods (2000-2006 and 2007-2013). In some Member States (e.g. Spain), it will be wiser to find funds over the first period.

A TOOL: LEXICON OF COMMUNITY JARGON

To help you find your way in the European jargon, a lexicon of the main European terms is attached.

II- INTERACTIVE LIST OF SUGAR FACTORIES

ARE YOU IN AN OBJECTIVE 1, OBJECTIVE 2 OR OBJECTIVE 3 AREA?

To find out: click on the hyperlink for your region (access to the Internet essential)

Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece,
Hungary, Ireland, Italy, Latvia, Lithuania, Netherlands, Poland, Portugal,
Slovakia, Slovenia, Spain, Sweden, United Kingdom

You will findpractical information on the different objectives (1, 2, and 3)
and contact addresses in part V of this Guide

NB. In some cases a link relating to Objective 2 has been deliberately maintained
even when the sugar factory is in Objective 3, as the information contained may be useful

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Important: for the period 2007-2013, the “convergence” Objective(formerly Objective 1) corresponds to regions whose GDP is less than 75% of the European GDP. On the other hand, the “competitiveness” Objective will be left to the appreciation of the Member States. We cannot, therefore, prejudge the national decisions that will be taken.

Austria

Region/Land / Sugar factories / Province, Département, county, district, Bezirke / Contacts / Objective
2000-2006 / Objective
2007-2012
Niederösterreich / Hohenau / Hohenau (Bezirk) / Hohenau / Objective 3 / ---
Leopoldsdorf / Gänserndorf (Bezirk) / Leopoldsdorf / Objective 3 / ---
Tulln / Tulln (Bezirk) / Tulln / Objective 3 / ---

BelGIUM

Region/Land / Sugar factories / Province, Département, county, district, Bezirke / Contacts / Objective
2000-2006 / Objective
2007-2012
Flandre / Moerbeke-Waas / Flandre-Orientale / Moerbeke-Waas / Objective 3 / ---
Tienen / Brabant Flamand / Tienen / Objective 3 / ---
Veurne / Flandre-Occidentale / Veurne / Objectives 2 (Les communes: Nieuwpoort (à l'exclusion des anciennes communes Sint-Joris et Ramskapelle), et les communes: De Panne (uniquement les secteurs statistiques: A00-De Panne-Centrum, A010-Veurnestraat-Duinenstraat, A052-Westhoek, A10-Zeedijk, A12-Westeinde), Koksijde (uniquement les secteurs statistiques:, A00-Koksijde-Dorp, A09-Vliegveld, A10-Koksijde-Bad, A11-Hoge Blekker, A19-Doornpanne, A20-Sint-Idesbald – Kern, A22-Sint-Idesbald – West, B10-Oostduinkerke-Bad, B11-Blekker Duinpark ó Sint-Andries, B191-Zeeberm, B21-Groenendijk-Bad, B262-Karthuizerduinen) and 3 / ---
Wallonie / Brugelette / Hainaut / Brugelette / Objective 1 (transitional support 2005/6) / ---
Fontenoy / Hainaut / Fontenoy / Objective 1 (transitional support 2005/6) / ---
Wanze / Liège / Wanze / Objectives 2 (only industrial zoning of Vinalmont) and 3 / ---

Czech Republic

Region/Land / Sugar factories / Province, Département, county, district, Bezirke / Contacts / Objective
2000-2006 / Objective
2007-2012
Jihomoravsky / Hrusovany nad Jevisovkou / Znojmo / Hrusovany / Objective 1 / Convergence
Kralovehradecky / Ceske Mezirici / Rychnov nad Kneznou / Ceske Mezirici / Objective 1 / Convergence
Moravskoslezsky / Opava Vavrocice / Opava / Opava Vavrocice / Objective 1 / Convergence
Olomoucky / Kojetin / Prerov / Kojetin / Objective 1 / Convergence
Litovel / Olomouc / Litovel / Objective 1 / Convergence
Nemcice nad Hanou / Prostejov / Nemcice nad Hanou / Objective 1 / Convergence
Prosenice / Prerov / Prosenice / Objective 1 / Convergence
Vrbatky / Prostejov / Vrbatky / Objective 1 / Convergence
Pardubicky / Hrochuv Tynec / Chrudim / Hrochuv Tynec / Objective 1 / Convergence
Stredocesky / Cesky Brod / Kolin / Cesky Brod / Objective 1 / Convergence
Dobrovice / Mlada Boleslav / Dobrovice / Objective 1 / Convergence
Vrdy / Kutna Hora / Vrdy / Objective 1 / Convergence

DENMARK

Region/Land / Sugar factories / Province, Département, county, district, Bezirke / Contacts / Objective
2000-2006 / Objective
2007-2012
Denmark / Assens / Fyn (Fionie) / Assens / Assens / Objectives 2 (only the island) and 3 / ---
Nakskov / Storstrom / Lolland / Naskov / Nakskov / Objectives 2 and 3 / ---
Nykobing / Storstrom / Falster / Nykøbing / Nykobing / Objectives 2 and 3 / ---

FINLAND

Region/Land / Sugar factories / Province, Département, county, district, Bezirke / Contacts / Objective
2000-2006 / Objective
2007-2012
Southern Finland,
Etelä-Suomen Lääni / Kantvik (refinery) / kirkkonummi / Kantvik (refinery) / Objective 3 / ---
Western Finland: Läsni-Suomen lääni, / Säkylä / Säkylä / Säkylä / Objective 3 / ---
Salo / Salo / Salo / Objective 3 / ---

France(NB: the Overseas Departments are in Objective 1)

Mainland France

Region/Land / Sugar factories / Province, Département, county, district, Bezirke / Contacts / Objective
2000-2006 / Objective
2007-2012
Alsace / Erstein / Bas-Rhin / Erstein / Objective 3 / ---
Auvergne / Aulnat / Puy de Dôme / Aulnat / Objectives 2 and 3 / ---
Basse-Normandie / Cagny / Calvados / Cagny / Objective 3 / ---
Bourgogne / Genlis-Aiserey / Côte d’Or / Genlis-Aiserey / Objective 3 / ---
Centre / Artenay / Loiret / Artenay / Objective 3 / ---
Corbeilles-en-Gâtinais / Loiret / Corbeilles-en-Gâtinais / Objective 3 / ---
Pithiviers / Loiret / Pithiviers / Objective 3 / ---
Toury / Eure et Loir / Toury / Objective 3 / ---
Champagne-Ardenne / Arcis-sur-Aube / Aube / Arcis-sur-Aube / Objectives 2 and 3 / ---
Bazancourt / Marne / Bazancourt / Objective 3 / ---
Connantre / Marne / Connantre / Objective 3 / ---
Sernaize les Bains (atelier de conditionnement) / Marne / Sernaizeles Bains / Objective 3
Sillery / Marne / Sillery / Objective 3 / ---
St-Germainmont / Ardennes / St-Germainmont / Objective 3 / ---
Haute-Normandie / Etrepagny / Eure / Etrepagny / Objective 3 / ---
Fontaine-le-Dun / Seine-Maritime / Fontaine-le-Dun / Objectives 2 and 3 / ---
Ile-de-France / Nangis / Seine et Marne / Nangis / Objective 3 / ---
Souppes-sur-Loing / Seine et Marne / Souppes-sur-Loing / Objective 3 / ---
Nord Pas De Calais / Attin (Montreuil-sur-mer) / Pas-de-Calais / Attin (Montreuil-sur-mer) / Objective 3 / ---
Boiry-Ste-Rictrude / Pas-de-Calais / Boiry-Ste-Rictrude / Objective 3 / ---
Escaudoeuvres / Nord / Escaudoeuvres / Objectives 2 and 3 / ---
Lillers / Pas-de-Calais / Lillers / Objectives 2 and 3 / ---
Marconelle / Pas-de-Calais / Marconelle / Objective 3 / ---
Thumeries (atelier de conditionnement) / Nord Pas-de-Calais / Thumeries / Objectives 2 and 3
Pays de La Loire / Nantes (refinery) / Loire Atlantique / Nantes (refinery) / Objective 2:
Only the districts of: Prairie des Mauves - Le Grand-Blotterreau, Malakoff, Pré-Gauchet, Feydeau-CHU-Saint-Félix, Le Château, Saint-Jacques - Le Clos-Torreau, Chantenay Sud, Bellevue, ZI Cheviré + Objective 3 / ---
Picardie / Abbeville / Somme / Abbeville / Objectives 2 and 3 / ---
Aulnois sous Laon (atelier de conditionnement) / Aisne / Aulnois sous Laon / Objectives 2 and 3
Bresles (atelier de conditionnement) / Oise / Bresles / Objective 3
Bucy-le-Long / Aisne / Bucy-le-Long / Objective 3 / ---
Chevrières / Oise / Chevrières / Objective 3 / ---
Eppeville-Ham / Somme / Eppeville-Ham / Objective 3 / ---
Guignicourt (Condé-sur-Suippe) / Aisne / Guignicourt (Condé-sur-Suippe) / Objective 3 / ---
Origny-Ste-Benoîte / Aisne / Origny-Ste-Benoîte / Objective 3 / ---
Roye / Somme / Roye / Objectives 2 and 3 / ---
Vic-sur-Aisne / Aisne / Vic-sur-Aisne / Objective 3 / ---
Villers-Faucon. / Somme / Villers-Faucon. / Objectives 2 and 3 / ---
Provence Alpes Côte d’Azur / Marseille (refinery) / Bouches du Rhône / Marseille / Objectives 2 (seuls les quartiers de: Euromed, Arenc (déduction faite de la partie comprise dans Euromed), Château-Gombert (quartier du 13e arrondissement), Saint-Jérôme (quartier du 13e arrondissement), Saint-Mître (quartier du 13e arrondissement), les Arnavaux (quartier du 14e arrondissement), le Canet (quartier du 14e arrondissement), la Cabucelle (quartier du 15e arrondissement), la Calade (quartier du 15ee arrondissement), 16e arrondissement, le Merlan, Sainte-Marthe) and 3

ODTs