GROWING REGIONS, GROWING REGIONS,

GROWING GROWING EUROPEEUROPEFourth Report on Economic and Social Fourth Report on Economic and Social

CohesionCohesion

By Prof. Danuta Hübner

Brussels, 30 May 2007

EUROPEAN COMMISSION Regional Policy 2

Situation Situation

and trends: and trends:

regional regional

disparitiesdisparities

In 2004, the top regions (with 10% of the EU population) had a GDP per head that was almost 5 times higher than that in the bottom regions (with 10% of the EU population), while in 2000 it was 6 times higher

EUROPEAN COMMISSION Regional Policy 3

Situation Situation

and trends: and trends:

regional regional

growthgrowth

Over the period 1995-2004, growth of productivity has been high in the regions of the new Member States.

Yet, in 29 regions (notably in France, Italy and Spain) productivity has decreased.

EUROPEAN COMMISSION Regional Policy 4

Situation Situation

and trends: and trends:

employment employment

deficitdeficit

Around 24 millionadditional jobs need to be created to reach the Lisbon target of employment rate

More than a third of these jobs have to be created in only 30 regions in Poland, Spain, Romania and southern Italy

EUROPEAN COMMISSION Regional Policy 5

Situation Situation

and trends: and trends:

the the

innovation innovation

deficitdeficit

Regions in Scandinavia, Germany, the UK, and the Netherlands emerge as the best performers

While in 86 regionshome to a third of the EU population, performance is below average

EUROPEAN COMMISSION Regional Policy 6

Challenge 1: Challenge 1:

demographydemography

85 regions (mainly in the new Member States) are already experiencing absolute population decline, and another 76 regionsmaintain population growth only thanks to migration