The Scottish Government

EU Informal on Regional Policy

Speech by First Minister Jack McConnell at EU Informal on Regional Policy

Rome

October 20, 2003

My colleague Jacqui Smith has set out the principles of the UK's proposed approach to European regional policy following enlargement .My remarks concern the practical impact of the way in which we implement Structural Funds and how we ensure better coordination, flexibility and local cooperation.

We all recognise the importance of a strong social and economic cohesion policy in building a newEurope. There will, however, be new challenges that go with next year's huge expansion of the European project.

TheUKprinciples recognise the importance of maintaining a focus on developing innovative approaches for regional development. Transnational co-operation, exchange of information and best practice can prove effective means of identifying these innovations.

It should be an objective of reform that EU policy adds value to and builds on Member States' own activities. The UKproposal to maintain this type of activity where it adds value would ensure continued promotion of regional co-operation.

FirstlyScotlandis a small country within theUKand we experience the challenges of those on the periphery ofEurope.

But while our population may be small, we have distinctive regions with particular challenges to face. It can only be beneficial to work with partners across Europeto share ideas about tackling common issues such as distance from markets for mountain or island communities.

Some of our cities continue to have pockets of severe deprivation among the worst inEuropeand by co-operating with those addressing similar challenges we can learn from the experiences of others.

In Scotland we have good examples of the benefits of such collaboration - we are involved in an INTERREG funded a project learning from Nordic regions how to develop innovative solutions to low traffic volume roads and, in another, looking at how best to support learning centres in northern, peripheral areas.

Similarly, we have developed innovative approaches under the EQUAL community initiative which supports trans-national co-operation on labour market and human resource issues.

Our experience of working withGermany,Spainand theCzechRepublicto identify and develop new qualifications, products and standards to improve access to the labour market has been very positive.

It is our experience that well targeted EU funding can produce collaborative solutions to common problems, so co-ordination of our efforts can help maximise the impact of our investments.

But we must not lose sight of what the mainstream Structural Funds can and should achieve.Scotlandhas received Structural Funds for over 25 years. We have seen the value of targeted intervention to regenerate communities, to strengthen their capacity to restructure and to reskill local populations to take up jobs in new and growing industries.

We have also seen how the Funds operate best when set in the wider context of local initiatives and national policies.

WithinScotlandas across theUKand the rest ofEurope, there will continue to be regional disparities and if we are to become the most competitive and dynamic knowledge-based economy in the world as agreed at the Lisbon Summit, we will need regional policies aimed at improving growth, competitiveness and prosperity across all Member States. And the consistent support for these priorities from all levels of government will be essential.

Of course, each region, nation orMemberStatewill have its own economic development strategy as we have inScotland. So maintaining flexibility to ensure our own policies can continue to complement European policies will be important. The UKprinciples seek such flexibility while, at the same time, supporting devolution and regional development. The outcomes of our debate on cohesion must allow for significant local flexibility in implementation.

Finally, as a Devolved Nation within theUK, we develop policies which reflect Scottish circumstances while operating within European policies and alongside those of theUKas a whole. But to add real value, we have found that involving local agencies has proved critical.

Harnessing their local experience and commitment in genuine partnerships been essential to ensure the successful delivery of Structural Funds and wider economic development. It has also played a major part in developing our links and work programmes with regions elsewhere.

We must retain the opportunity for such local collaboration in any new funding structure and European inter-regional programmes, as this is essential to capacity building, sustaining local action and building links within the newEurope.

In summary, for reasons of securing cohesion & aspiration, but also to deliver Competitiveness & growth in all areas, it is our view that coordination, regional and national flexibility & local partnerships are vital.

No-one has all the answers but by working together in that way we have a better chance of building a Europe that is modern, dynamic, just and successful.

Thank you.