Danuta Hübner: High growth rate in Algarve underpinned by EU Cohesion Policy

Danuta Hübner, European Commissioner for regional policy, is today in the Algarve as a guest of Francisco Nunes Correia, the Portuguese Minister of environment, spatial planning and regional policy. The Commissioner will meet regional representatives responsible for implementation of the European Cohesion Policy, which supports projects including road and rail systems, tourism and regeneration initiatives, research centres and small business start-ups. The Commissioner will visit several projects which have been jointly financed by the European Union.
Speaking ahead of her visit, Commissioner Hübner said: “European investment has contributed to the spectacular transformation of Algarve's economy in recent years. The fast growth we have seen in the Algarve is a source of pride for us, particularly if we consider that not so many years ago the region was suffering from a fragile economic situation. This evolution is proof that Cohesion Policy, backed by a dynamic approach on the ground, underpins growth and delivers results.”

Tourism: a dynamic growth industry in the region

Over the course of little more than 20 years, the GDP of the Algarve region has increased from 45% of the European average (EU 12) in 1986 to its current standing of around 80% of the European average (EU 27). EU support was essential for upgrading both environmental and transport infrastructure. The region has followed the Commission’s recommendations by focusing EU investments in the 2007-2013 budgetary period on new priorities such as innovation and entrepreneurship. One of the aims of the Cohesion Policy in the Algarve is to make the tourism sector more competitive and at the same time more sustainable and more environmentally-friendly. This is also in line with the objectives of the EU's renewed tourism policy which aims to make this sector a major source of growth and jobs.

Commissioner Hübner will meet João Faria, chairman of the Commission of coordination and regional development (CCDR), the main authority responsible for implementing the Cohesion Policy funding in Algarve. She will also meet regional mayors, representatives of public administrations, universities, businesses and trade unions.

Algarve will receive €175 million from the European Regional Development Fund (ERDF) and €103 million from the European Social Fund (ESF) in 2007-2013. It also receives grants from the European Agricultural Fund for Rural Development (EAFRD) and the European Fisheries Fund (EFF). See MEMO/08/349.

EU projects on the ground

Commissioner Hübner will visit the municipal theatre of Faro, built with EU support (€4.9 million from ERDF) - now an emblematic building of the city and the region. The municipality of Albufeira has also developed a school complex in the nearby village of Paderne, helping to revitalise this area (EU contribution: €738 000). The city centre of Albufeira is also receiving a facelift, with new street furniture, parking, beachside promenades, upgrading of roads (EU contribution: €13.8 million). The European Union has also contributed to the restoration of the 19th century market halls of the port of Olhão..

Note for editors

Portugal has been one of the largest beneficiaries of Cohesion Policy investments since its accession to the EU in 1986. In total, the country received € 50 billion between 1989 and 2006 from structural funds (European Regional Development Fund, European Social Fund, Cohesion Fund and the funds for rural development and fisheries (EAFRD & EFF).

Cohesion Policy has notably contributed to upgrading infrastructure including motorways, water supply, waste treatment, natural and environmental heritage, protection of coastal areas. According to the Fourth report on economic and social cohesion, between 2000 and 2006, cohesion programmes boosted Portugal's GDP by 2% and its employment rate by 1.4%.

More information on Cohesion Policy in Portugal is available at:

http://www.qren.pt

http://ec.europa.eu/regional_policy/atlas2007/portugal/index_en.htm

Published on: 2008-11-14

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