IMPACT AND RESULTS OF COHESION POLICY IN AUSTRIA

In the period 2000–06, Austria carried out 8 540 projects with EU Structural Fund investment. The total European Regional Development Fund (ERDF) funding of some €886 million made for total expenditure on projects of almost €6 billion.

This funding helped create approximately 25 400 new jobs. Investment also supported the expansion or modernisation of 1 770 companies and assisted 265 new business start-ups.

Over 900 research & development (R&D) projects were developed, with around 90 projects related to business start-up, technology and research centres.

1 140 environmental projects were carried out and included not-able achievements such as the establishment of biomass and solar facilities.

European Cohesion Policy in Austria

The European Union (EU) comprises 27 Member States forming a community and single market of 493 million citizens. However, great economic and social disparities still remain among these countries and their 271 regions. European Cohesion Policy is at the centre of the effort to improve the competitive position of the Union as a whole, and its weakest regions in particular.

Through the European Regional Development Fund (ERDF) and the European Social Fund (ESF), otherwise known as the Structural Funds, as well as the Cohesion Fund, it invests in thousands of projects across all of Europe’s regions to achieve its primary task: to promote economic and social cohesion by reducing these disparities between Member States and regions. With a budget of €347 billion for 2007–13, Cohesion Policy represents the single largest source of financial sup-port at EU level for investment in growth and jobs, designed to enable all regions to compete effectively in the internal market.

However, as the challenges facing Europe’s regions have changed over time, so too has the policy. Against a background of momentous change in the Union as a result of enlargement and of increasing globalisation, concerns about energy sup-plies, demographic decline, climate change and more recently, world recession, the policy has evolved, in step, as a key part of the response to meet these new realities.

Some €886 million invested from 2000–06:

supported over 900 R&D projects•helped to create about 25 400 new jobs•invested in 1 140 environmental projects•

A SNAPSHOT OF ACHIEVEMENTS

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NiederösterreichWien

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Oberösterreich

SalzburgTirolVorarlberg

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Cohesion Policy 2007–13

Convergence objective Competitiveness and employment objective

EN

Cohesion Policy

EUROPEAN INVESTMENT IN AUSTRIA – 2007–13

For the 2007–13 period, Austria has been allocated €1.47 billion in total: €177 million under the Convergence1 Objective, €1.027 billion under the Regional Competitiveness and Employment Objective and €257 million under the European Territorial Cooperation Objective.

Austria has 11 regional programmes – nine financed by the European Regional Development Fund (ERDF) and one by the European Social Fund (ESF), in addition to one ‘horizontal’ programme financed by the ESF covering all regions under the Regional Competitiveness and Employment Objective. With the exception of the Burgenland, all regions fall under the Regional Competitiveness and Employment Objective. The Burgenland is currently in a transitional phase between the two objectives: it is a so-called ‘Phasing-out Region’.

DELIVERING THE LISBON STRATEGY FOR GROWTH AND JOBS

The relaunch of the Union’s Lisbon Strategy in 2005 aimed to bolster the competitive position of EU regions in the world economy by placing growth, jobs and competitiveness at the top of the Union’s agenda. For the 2007–13 period, European Cohesion Policy has at-tached increasing importance to delivering the so-called ‘Lisbon objectives’.

1 The Convergence Objective concerns regions characterised by low levels of GDP and employment, where GDP per head is less than 75% of the EU average as it stood between 2000 and 2002. It applies to 99 regions representing 35% of the EU-27 population and aims to promote conditions conducive to growth and which lead to real-time convergence in the least-developed Member States and regions. The Regional Competitiveness and Employment Objective is applicable to the rest of the EU, or to 172 regions, representing 65% of the EU-27 population. It aims to enhance the competitiveness and attractiveness of regions, as well as boost their employment levels. It should be noted that the rural development and fisheries policy are separate and do not form part of this brochure.

Almost €600 million, or nearly half of Austria’s total Cohesion Policy allocation, will be invested in Research & Development (R&D). This is one of the highest shares of any country in the EU in relative terms (EU average is 25%). This will be used to fund research and development centres, small and medium-sized enterprise (SME) networks, and boost innovation in eco-technologies and renewable energy technologies.

The promotion of entrepreneurship and SME networks accounts jointly for some €192 million. Support for information and com-munication technologies (ICT) products, services and applications for businesses and citizens receives a further €19 million.

Nearly €210 million will be invested in building a skilled and adaptable workforce, by raising levels of skills and qualifications. The target groups are mainly young people, older workers, low-skilled people, the long-term unemployed, disabled people and disadvantaged persons groups, including migrants.

Over €300 million has been allocated to tackling consequences of demographic change.

Austria already has a well-developed transport system, so the limit ed financial resources are concentrated on promoting ‘multi-modal’ transport systems and sustainable transport to the tune of €8 million.

Measures for protecting the environment, combating the ef-fects of climate change and promoting the use of renewable energies and energy efficiency account for almost €100 million of EU funding.

Nearly €600 million for R&D•€192 million to promote entrepreneurship and SMEs•Over €300 million to help adjust to demographic change •and create more inclusive labour markets

THE ESSENTIALS 2007–13

FUnDS FoR AUSTRIA In bIllIon € 2007–13

objective Fund EU national Public Total

ConvergenceERDF 0.13 0.04 0.17ESF 0.05 0.02 0.07

Total Convergence 0.18Regional Competitiveness and Employment

ERDF 0.56 0.56 1.12ESF 0.47 0.53 1

Total Regional Competitiveness and Employment

1.03

Total European Territorial Cooperation*

ERDF 0.26 - 0.26

ToTAl 1. 47 1.15 2.62

Figures have been rounded up

* Each Territorial Cooperation programme includes a minimum of 15% co-financing from each participating Member State.

BUILDING BRIDGES BETWEEN NEIGHBOURS

In Europe today, economic success is often dependent on a region’s capacity to develop networks with other regions. Cooperation and sharing experience between regions can be a key trigger in stimulating a dynamic, forward-looking regional development process. The EU has an important role to play in brokering and supporting such partnerships, both between re-gions within the Union, and with neighbouring regions outside. Thousands of projects developed over many years under the INTERREG initiative have demonstrated the benefits for regions of working in partnership, sharing ideas and charting new and innovative ways of harnessing European investment.

The European Territorial Cooperation objective is financed through the ERDF for the period 2007–13 and supports cross-border, transnational and interregional cooperation programmes to encourage regions and cities across the EU and further afield to work together and learn from each other.

Austria is taking part in 14 programmes under the European Territorial Cooperation Objective (ERDF contribution: €257 million):

seven cross-border cooperation programmes with •Germany, Switzerland and Liechtenstein, Bavaria, the Czech Republic, Slovakia, Hungary, Slovenia and Italy;

three transnational cooperation programmes, which cover •large areas of cooperation: Alpine Space, centre east Europe and south-east Europe;4 interregional cooperation programmes (total budget for •all the 27 EU Member States: €443 million)2: INTERREG IVC, INTERACT II, URBACT II, and ESPON.

2 INTERREG IVC promotes exchange of experience and good practices among the regions, INTERACT – support for cooperation programme management organisation, URBACT – thematic city networks, ESPON – an observation network for spatial planning.

Austria€1.47 billion for 2007–13

Boosting growth, jobs and competitiveness

THE EU ON CALL

The European Union Solidarity Fund was created after the floods which hit Central Europe in summer 2002. It grants emergency aid to Member States and acceding countries in the event of a major natural disaster.

In 2002 and 2005, Austria suffered damage from flooding running to a combined €3.1 billion, and received €149 million in aid from the Solidarity Fund.

Italia - Österreich

Slovensko - Österreich

Slovenija - Österreich

Österreich - Magyarország

Österreich - Česká Republika

Alpenrhein-Bodensee-Hochrhein

Deutschland/Bayern – Österreich

Österreich-Česká Republika Slovenija-Österreich Deutschland/Bayern-Österreich Alpenrhein-Bodensee-Hochrhein Italia-Österreich Österreich-Magyarország Slovensko-Österreich

Regional Policy on the ground EUROPEAN CENTRE FOR RENEWABLE ENERGY GüSSING (EUROPäISCHES

ZENTRUM FüR ERNEUERBARE ENERGIE GüSSING), BURGENLAND

European Cohesion Policy investment is helping Burgenland to develop cutting-edge technologies in the renewable energy sector. Güssing is a model for the forward-looking renewable energy policy at a local level that is driving the economic development of the whole region. Using wood from local forests in its biomass heating plant, the town produces more electricity than it consumes and is able to provide power for the entire region. Over 50 companies and 1 000 jobs have been created in the renewable energy sector alone and, since 1995, Güssing has reduced its carbon dioxide emissions by 93%. EU funding was an essential lever for triggering this development: nearly €20 mil-lion went into projects such as Blue Chip Energy GmbH, the development of an enterprise producing solar cells, with additional national and regional funding needed to make this ambitious project happen.

Website: http://www.eee-info.net/

LOWER AUSTRIA ‘TECHNOPOLPROGRAM’ – INNOVATION, RESEARCH AND TECHNOLOGICAL DEVELOPMENT

The aims of the project were to strengthen applied research in Lower Austria by building bridges between industry and university research in the province.

The main focus was to develop three so-called ‘Technopol’ sites in Lower Austria, bringing together a critical mass of R&D, universities and businesses in one ‘hub’ location.

The key objectives have been to support the development of applied R&D projects, to initiate start-ups and spin-offs in certain techno-logical fields, to forge linkages between the local R&D facilities and companies, and to promote Technopols as an attractive location for innovative companies.

The EU made a financial contribution of €960 000 to this project, out of a total budget of €2.88 million.

Website: http://www.change-on-borders.net/timeline/pdf/1_Technopol.pdf

EU Regional Policyhttp://ec.europa.eu/regional_policy/

Cohesion Policy in Austriahttp://ec.europa.eu/regional_policy/atlas2007/austria/index_en.htm

National websitehttp://www.oerok.gv.at/

European Social Fundhttp://ec.europa.eu/social/

More information

The European Center for Renewable Energy Güssing, Burgenland, Austria