EU cohesion policy could create 2.5 million jobs between 2007 and ...

MEMO/05/178
Brussels, 27 May 2005
EU cohesion policy could create 2.5 million jobs
between 2007 and 2013
Danuta Hübner, European Commissioner for Regional Policy, sets out how
she expects a reformed cohesion policy to contribute to raising employment
rates in the European Union. EU-funded programmes affect job creation in
two main ways: they create job opportunities through additional investments,
and they help to improve the working of the labour market, for example
through training or measures to smooth restructuring. Independent
evaluations of current and past regional policy suggest that the impact has
already been substantial. The clearer focus on jobs and growth – a hallmark
of Mrs Hübner’s term as Commissioner so far – suggests an even greater
impact on job creation in future.
Mrs Hübner said “Cohesion policy is helping to create more and better jobs in
Europe. Investments in infrastructure, innovative enterprises and a well-trained
workforce are at the heart of EU-funded programmes today. My aim is to sharpen
the focus on competitiveness and employment still further, and to make even better
use of the funds, so that by 2010 we shall be able to say that cohesion policy has
made a visible contribution to regaining full employment in the EU.”
22 million extra jobs needed to reach the Lisbon employment target
The employment rate in the EU as a whole, at 63% in 2003, remains far short of the
70% target for 2010 set by EU leaders in 2000. Only in four Member States –
Denmark, the Netherlands, Sweden and the UK – does the employment rate exceed
70%, while it falls as low as 51.2% in Poland. Some 22 million additional jobs are
needed to meet the 70% target. In the new Member States, employment would
have to increase by one quarter to reach 70%, equating to 7 million extra jobs.
At the regional level, the picture is still more diverse. Only one quarter of the EU25
population resides in regions where the 70% employment rate target has already
been achieved. Almost 15% of the population lives in regions where the rate is below
55%. These are predominantly in the new Member States, and in southern parts of
Spain and Italy. Progress in these regions will be essential if the EU as a whole is to
meet its target.
Contribution of EU cohesion policy to job creation
The EU Structural Funds have helped the Member States reduce regional
unemployment markedly and have contributed to the extension and modernisation of
training systems throughout Europe. Independent evaluations show that, in the
1994-99 programming period, the Structural Funds supported the creation of
800,000 jobs (gross) and the training of 8.15 million people in the poorest EU regions
in recent years.

In areas facing structural difficulties, 3.6 million people received training, while
700,000 jobs were created (500,000 net of displacement effects) and 300,000 SMEs
were assisted. The stock of human capital (as measured by the number of trained
personnel) is estimated to have increased by 4% more in Spain than it would have
done without the Structural Funds, by 4.8% in Greece, by 7.6 in Ireland and by
20.5% in Portugal.
The mid-term review of the current programming period (2000-2006) suggests that
EU-funded projects continue to be a major influence on job creation. In North Rhine
Westphalia (Germany), for example, 20,000 new jobs are estimated to have been
created and 46,000 saved. In Portugal, 38,000 jobs have been created in SMEs. In
Finland, 47,000 jobs have been created so far. In Sweden – where the employment
rate is already above 70% – the programmes in the sparsely populated northernmost
regions have created 1,390 jobs and supported the training of over 18,000 people,
while the ‘Objective 2’ programmes further south supported the creation of 2,400
jobs.
For the 2007-2013 period, the Commission proposal for a reformed cohesion policy
amounts to EUR 336.1 billion. Of this, 79% (EUR 264 billion) is designated for the
poorest regions and Member States, 17% (EUR 57.9 billion) for strengthening
competitiveness and employment in regions outside the very poorest, and 4% (EUR
13.2 billion) for cooperation between regions in different Member States.
Simulations undertaken by Commission services (using the Hermin macroeconomic
model) indicate that EU-funded programmes could lead to as many as 2.5 million
additional jobs during the seven years from 2007 to 2013.
More information: http://europa.eu.int/comm/regional_policy/index_en.htm
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