Period 1994-1999: European regional policy and structural funds

The 1993 norms define a new programme period (1994-1999), the most novel aspect of which is, on one hand, the Financial Instrument for Fisheries Guidance (FIFG), and, on the other hand, objective 6 (low demographic density regions), created upon the adhesion of Sweden and Finland to the European Union.

Objective 1: Develop slower less developed regions.
Objective 2: Reconvert regions affected by declining industry.
Objective 3: Insertion of unemployed in the labour market.
Objective 4: Adaptation to industrial mutations.
Objective 5a:Foster the adjustment of the agricultural and fishing sectors.
Objective 5b: Adapt agricultural structures and promote the development of rural areas.
Objective 6: Low demographic density regions.

Table 1.2. Community Objectives and the Funds That Intervene

OBJETIVES	FONDOS INTERVINIENTES
Objetive 1	ERDF, ESF, FEOGA-Guidance
Objetive 2	ERDF, ESF
Objetive 3	ESF
Objetive 4	ESF
Objetive 5a	FIFG, FEOGA- Guidance
Objetive 5b	FEOGA- Guidance, ERDF, ESF
Objetive 6	ERDF, ESF

The Structural Funds act jointly and concentrate efforts on four regional objectives (objective 1, objective 2, objective 5b and objective 6) which absorb 85% of the funds, and three objectives (objective 3, objective 4 and objective 5a) which range across the whole community and account for 15% of the resources.

Nine percent of the Structural Funds are reserved for community initiatives mainly addressing: transnational and interregional cooperation (INTERREG, REGEN) promoting capacity to innovate (STRIDE, TELEMATIQUE, PRISMA, SME), developing rural areas (LEADER) and fishing ( PESCA), experimental measures for environment (ENVIREG) and urban areas (URBAN), adaptation to industrial change (ADAPT), industrial restructuring (RESIDER, RENAVAL, RECHAR, RETEX, KONVER) and reinsertion of specific collectives into the labour market (EMPLOYMENT: NOW, HORIZON, YOUTHSTART). One percent of all the financial resources of the Structural Funds is reserved for technical aid and innovative measures (Article 10 of the ERDF, article 6 of the ESF and article 8 of the FEOGA). This article is not important for the volume of financing available, but rather for its strategic value and leverage for participating in the rest of the other routes of access to European funding.

The Cohesion Fund was created with the Treaty of Maastricht and began to operate in 1993. Its aim was to help the less prosperous States to prepare their access to the European Economic and Monetary Union. Four States benefited from this fund: Greece, Portugal, Ireland and Spain. A provision of 14,500 mecus was budgeted for the period 1994-1999 to fund transport infrastructure and environment projects.

The ultimate objective of the Structural Funds is none other than economic and social cohesion 'reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions'. The European Union Treaty considers economic and social cohesion one of the basic pillars for constructing Europe.