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Welcome to Objective 2 programme Luxembourg

Objective 2 supports economic and social transformation in areas with structural issues, allocated funding to four types of zones in 2000-06. Eligibility criteria and funding breakdown for Luxembourg detailed, aiming for regional balance and diversified economy.

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Welcome to Objective 2 programme Luxembourg

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  1. Welcome to Objective 2 programme Luxembourg DG REGIO/Unit D3/PL

  2. 1. Introduction Objective 2 (which replaces Objectives 2 and 5(b) from the 1994-99 period) is intended to support the economic and social conversion of areas facing structural problems. In the 2000-06 period, this involves four types of area: industrial, rural, urban and those dependent on fisheries. On 1 July 1999, the Commission determined the maximum population eligible for Objective 2 assistance in each Member State. For Luxembourg, the ceiling was set at 118 000 inhabitants, or 28% of its total population. DG REGIO/Unit D3/PL

  3. 1. Introduction The eligible population figure is the sole criterion for allocating Objective 2 funding among Member States. In this way the Commission is able to ensure that annual per capita rates of assistance are identical (i.e., at 1999 prices, EUR 41.4) in every eligible area. Within this framework, Luxembourg has been allocated EUR40 million (1999 prices), or about LUF 1.614 billion. This breaks down as follows: EUR 34 million for Objective 2 areas; EUR 6 million of transitional assistance (for the areas which were eligible for Objectives 2 and 5(b) in the 1994-99 period but which do not qualify for the new Objective 2). DG REGIO/Unit D3/PL

  4. 1.2 The map of the eligible area DG REGIO/Unit D3/PL

  5. 1.3 Description of the area The SPD covers three areas eligible under Objective 2, which comprise 117 213 inhabitants: Two rural areas: one is located in the north (8% of the eligible population) and is composed of 7 municipalities, while the other one is in the east (12% of the eligible population) and encompasses 5 cross-border municipalities. These areas were approved under the rural area heading because they are experiencing socio-economic problems resulting from a reduction of the active farming population. One urban area in the south, consisting of 8 municipalities (80% de la eligible population), selected because of its damaged environment. This criterion was based on the extent of wasteland in the area. The SPD also covers the 11 municipalities eligible under Objective 2 in 1994-1999 which were not included in the new urban area (municipalities in transitional support scheme). DG REGIO/Unit D3/PL

  6. 1.4 Main regional indicators in EU and Austria1988-1998-9Source: EC: Second report on Economic and Social Cohesion, Volume 2, Jan 2001 EconomyLabour market GDP/headEmpl.% of total, 1999Unempl. rate% 19881998AgriIndust.Servi.19891999 EU15 100,0 100,0 4,5 29,2 66,0 8,4 9,4 Luxembourg 139,1 175,8 1,9 21,9 75,8 1,7 2,4 DG REGIO/Unit D3/PL

  7. 2. Development strategy The overall objective is to: strengthen the economic structures in each eligible area and also: to work towards a diversified economy to enable the areas to cope with the predominant financial sector. The implicit objective is also to maintain a regional balance with regional centres capable of counterbalancing the attraction of the centre of the country. DG REGIO/Unit D3/PL

  8. 3. Priorities, measures and expected impact Priority 1: promotion of regions’ local development potential: The aim is to improve the productive environment of the areas by: developing business promotion structures as well as services to companies. A further objective is to diversify local economic activity based on existing skills pools. DG REGIO/Unit D3/PL

  9. 3. Priorities, measures and expected impact Priority 2: regeneration of wasteland in the context of a sustainable economic and spatial development policy and improvement of underprivileged lifestyles: This area of intervention is consistent with the Objective 2 SPD approach of the previous period since it aims to pursue the rehabilitation of wasteland, involving surveys, drainage, renovation, access work and promotional activities. This will also permit the establishment of other types of infrastructure (eg. social, etc.) and the promotion of activities that foster local development and employment. DG REGIO/Unit D3/PL

  10. 3. Priorities, measures and expected impact Priority 3: promotion of research, technological progress and innovation: The objective is to strengthen the R&D capacities of the eligible areas by: developing existing infrastructure or setting up new infrastructure, making undertakings aware of the need for innovation and providing advisory services to undertakings. DG REGIO/Unit D3/PL

  11. 3. Priorities, measures and expected impact Priority 4: promotion of natural environmental protection This area of invention is intended to support undertakings in the introduction of environment-friendly production processes by: raising their awareness and providing advice. It will also cover waste and energy policies (energy savings, renewable energy sources). DG REGIO/Unit D3/PL

  12. 3. Priorities, measures and expected impact Area 1: Promotion of regions’ local development potential: Measure 1.1: Improving the manufacturing environment of regions Measure 1.2: Support for development and the diversification of local economic activities based on existing skills centres. Measure 1.3: support for development of the tourist industry DG REGIO/Unit D3/PL

  13. 3. Priorities, measures and expected impact Area 2. Regeneration of wasteland in the context of a sustainable economic and spatial development policy and improvement of underprivileged lifestyles: Measure 2.1: Conversion of wasteland for economic and town-planning purposes Measure 2.2: improvement of declining lifestyles DG REGIO/Unit D3/PL

  14. 3. Priorities, measures and expected impact Area 3. Promotion of research, technological progress and innovation:: Measure 3.1: Strengthening of research and technological development capacities Measure 3.2: Raising awareness of need for innovation in terms of processes, products and markets Measure 3.3: Research and development of new technological skills centres DG REGIO/Unit D3/PL

  15. 3. Priorities, measures and expected impact Area 4. Promotion of natural environmental protection: Measure 4.1: Strengthening of environmental strategies and support for the development of environmental technology Measure 4.2: development or adaptation of infrastructure, mindful of environmental constraints DG REGIO/Unit D3/PL

  16. 3. Priorities, measures and expected impact Area 5. Technical assistance for the programme: Measure 5.1: Management, implementation and monitoring of Objective 2 programme and checks to be conducted with respect to it Measure 5.2: Information and training activities, and evaluation of the programme. DG REGIO/Unit D3/PL

  17. 3. Priorities, measures and expected impact Expected impact and specific objectives: This plan also defined and quantified indicators for specific objectives to be achieved by the priorities, such as: the number of undertakings supported (over 1000 by the end of 2006), maintaining the population in the eligible areas (28.5% of the total population), increasing the ratio of public expenditure on R&D (from 0.1% to 0.3% of GDP) and increasing the rate of exploitation of industrial/commercial/craft waste (aiming for a rate of 80%). DG REGIO/Unit D3/PL

  18. 4. Management and contact details Ministère de l'Economie du Grand-Duché de LuxembourgDirection de l'Industrie et de la Technologie (DIT)ConseillerMannes-Kieffer, Elisabeth19-21, boulevard RoyalL-2449 LuxembourgTel.: +352.478 4138Fax.: +352.222 670E-mail.: elisabeth.mannes-kieffer@eco.etat.lu DG REGIO/Unit D3/PL

  19. 4. Management and contact details European Commission: José FLEURET DG REGIO/D/3 (Unité Bénélux-Autriche) tél: 32.2.296.07.19 fax: 32.2.296.64.71 e-mail: Jose.Fleuret@cec.eu.int DG REGIO/Unit D3/PL

  20. 5. Financial and technical information Title : Objective 2 Programme for for the Grand Duchy of LuxembourgIntervention type : Single Programming DocumentCCI No. : 2000LU162DO001No. of decision : C(2001) Final approval date : 31-DEC-01 DG REGIO/Unit D3/PL

  21. 6. Financial breakdown Financial Breakdown by Funds (in millions of Euros) EU Contribution ERDF Total : 41 41 100.00% 100.00% DG REGIO/Unit D3/PL

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