IP/06/84

Brussels, 26 January 2006

Regional policy: Successful 2005 shows the way to more jobs and growth

“The use of Structural and Cohesion Funds by European regions in 2005 has proven once more that Cohesion Policy is a major and most effective tool in creating quality jobs and promoting growth on the ground”, noted today Regional policy Commissioner Danuta Hübner, pointing out “that this is a solid basis for more investment in the drive for economic modernisation in Europe”. Commissioner Hübner also stressed that “while European institutions are working towards a final agreement on the new budget, the Commission is determined to build on the momentum, cooperate closely with Member States and make all necessary preparations for Cohesion policy 2007-2013 to be ready to start on time, at the beginning of 2007, in the European regions”.

“During 2005 we managed to commit almost 100% of the money allocated to Structural actions and ISPA (pre-accession). It is becoming clear that 2005 has been the best executed budget ever. I am not at all surprised that 2005 has been a particularly good year taking into account all the hard work both by the Commission and by our partners in the Member States”, said Commissioner Hübner and added: ”we have proven that this policy works. Our major challenge is now to put in place, within this year, all necessary mechanisms to let Cohesion policy for the period 2007-2013 contribute even more to the economic modernisation process of European regions”.

Commissioner Hübner also noted that payments in 2005 have been really satisfactory highlighting that the continuing high level of payments since the beginning of 2006 confirms that this is not a one-off case but the outcome of hard work and serious planning.

She added that the Commission is now determined to work closely with the Member States over the coming months to see that Cohesion Policy is best used to deliver growth and jobs on the basis of the priority actions identified.

In 2005, € 27,1 billion were committed under the European Regional Development Fund, the Cohesion Fund and the pre-accession fund designated for candidate countries (ISPA), the highest figure ever committed in one year under Regional Policy area. Overall in 2005, € 16,9 billion were paid under the ERDF and € 3 billion under Cohesion Fund and ISPA together.

For the 4 Structural Funds, Cohesion Fund and ISPA taken together, payments made in 2005 reached a total amount of € 33,1 billion. Moreover funds for pre-accession actions for candidate countries in agricultural (SAPARD) and regional policy (ISPA), worked so well that additional funding from other policy areas was needed.

The implementation of Regional Policy in 2005 was successful in the new Member States too:

At the end of 2005, new Member States were reimbursed expenses spent on the ground similar to the ones paid to EU15 Member States at the end of 2001, after their 2 years of programming. On the average, the Commission paid to the new Member States already almost 20% of the whole 2004-2006 allocation.

Background

The Commission adopted in July 2005 a Communication on the future Community Strategic Guidelines on cohesion policy. They are the main instrument at the Commission’s disposal to ensure that cohesion policy serves the EU’s ambition to become a) a more attractive place to invest and work in; b) an area of high growth, competitiveness and innovation; c) a place of full employment and higher productivity with more and better jobs.

Further information on cohesion policy in support of growth and jobs:

http://europa.eu.int/comm/regional_policy/sources/docoffic/2007/osc/index_en.htm