This fourth progress report describes economic and social disparities within the EU and gives an update of recent developments in EU cohesion policy. It begins by setting the scene with an update on trends in, and disparities between, the Member States and regions. This is followed by an outline of the key developments in the policy framework including the agreement on the resources for cohesion policy for the Financial Perspectives 2007-2013.

In terms of the development of EU cohesion policy, the period since the publication of the Third Progress Report in spring 2005 was an important one for three principal reasons:

First, after the historic enlargement in May 2004, the implementation of cohesion programmes in the new Member States gathered pace in 2005 and the results are now in the first full year of implementation.

Second, there were major advances in preparing for the 2007-2013 programming period. In particular, the Inter-Institutional Agreement signed on 17 May 2006 by Parliament, Council and Commission on the Financial Perspectives for 2007-2013 provided the basis for Member States and regions across the EU to move ahead with the preparation of new programmes. In addition, the Commission adopted several key documents to lay the ground for this work (including the draft Community Strategic Guidelines for Cohesion, the draft Community Strategic Guidelines on Rural Development and Regional State Aid Guidelines 2007-2013).

Third, key policy decisions taken at the highest level in 2005 established the central place of cohesion policy in the Union’s growth and jobs agenda (the “Lisbon strategy”).

In this fourth progress report on cohesion it is noted that, on average, the least prosperous countries - the 13 with relatively lower GNI per head that are supported under the Cohesion Fund - reported 3.6 % growth over the period 1995-2005, considerably higher than the EU average of 2.2 % per year.

European Commission – Directorate General Regional Policy
regio-info@ec.europa.eu

12/06/2006

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