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Regional Policy


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             The institutional framework of the regional mechanism is divided into 2 main funds, namely the Structural and Cohesion Fund (Appendix 1). These provide the bodies through which the financial aid is transferred to the destination regions. The amount of aid given by Structural fund was continuously increasing from 8 billion per year in 1989 to 32 billion per year in 1999 and it will remain at about 28 billion per year from 2000 to 2006 (at 1999 prices). While the Cohesion Fund contributes with 16.7 billion in the period of 1993-1999 and aims to provide further more 18 billion from 2000-2006 . For detailed information on Structural Funds allocation by country and Objective see Appendix 2.
             Structural assistance2000 - 2006 213 billion(at 1999 prices).
             Structural Funds 195,00 billion.
             Priority Objectives 182,45 billion.
             Objective 1 Objective 2 Objective 3 135,90 billion22,50 billion24,05 billion.
             Community Initiatives Fisheries Innovative actions 10,44 billion1,11 billion1,00 billion.
             Cohesion Fund 18 billionAmounts in euro.
             The above mentioned bodies, however, only the means of execution if I might say that. The theory that lies beneath the transfers is much more interesting. Aims are set according to the 4 basic principles - Concentration, Partnership, Additionality, Programming and Planning - by which the 3 main objectives are prescribed. These cover the areas to which support is being transferred:.
             Features of Objective 1: covers former objective 1, 5a, 6.
             In the regions whose development is lagging behind, the aim is to catch up with the other regions of the Union. This begins by making up the substantial shortage of basic infrastructure (transport, water supply, energy, waste treatment, telecommunications, health, and education). Most of the funds available are spent on building this infrastructure without neglecting the services, which enable an ailing productive fabric to be consolidated and revitalised.


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