Speaking points Commissioner De Gucht

Statement at joint EU-SA seminar on regional policy

Pretoria 14 September 2011

Dear Minister, your Excellency the ambassador of the European Union, representatives of the South African departments of state, dear colleagues, dear friends:

We in the European Union attach the greatest importance to our relations with South Africa, a country which exerts so much influence in the continent because of your advanced economy, solid democracy and exemplary social, religious and racial tolerance.

We feel this is one place where we can be sure of having a fruitful dialogue on regional economic development and where, with your success in creating jobs through public works and rural development, it will be of real mutual advantage to discuss important principles of cohesion policy. These principles include the development of strategies based on sound and trusted economic indicators, the promotion of the innovation potential of all regions, the involvement of business and civil society in the development of programmes and the importance of sustainability. In Europe we are saying that regional economic development up to and beyond 2020 should be smart, inclusive and sustainable and we feel that this is true of promoting growth in any developed or developing economy.

The emphasis on cohesion in our activities is fundamental. On the one hand it implies that all regions are treated fairly in terms of being able to understand and fulfil their economic potential. On the other it means that the richer regions are actively and financially encouraging the economic development of Europe’s poorer regions. The benefits for all of such an approach have long been clear: the growth which Europe has achieved in regions below 75% of average European income has been remarkable and has brought benefits to the contributing regions in the form of new markets and increased entrepreneurship.

At the same time, by spreading economic development among regional development poles the European approach avoids over concentrating economic development on large cities. We see in many parts of the world the results of such over concentration which can certainly lead to growth and innovation but which inexorably brings pollution, overcrowding, crime and sometimes disease in its wake. That Europehas largely managed to avoid such disasters is testament to the importance of pursuing a strategy based on cohesion.

Another very important point is that cohesion policy is not separate from other European policies. In many ways it is the tool by which we articulate other policies such as environment policy, transport policy and energy policy. This means it is at the centre of Europe's efforts to encourage greater growth and more job creation. As such it is an essential factor also in trade and industry policies.

The programme today has highlighted the various cross border programmes involving the Netherlands, Germany and Belgium in the EUREGIOinitiative. You have also heard something about how the crucial issue of evaluation is tackled. This should in itself be considered a major principle of EU regional policy. No meaningful new programmes can be launched without a thorough analysis of the results of the previous programmes in terms of meeting objectives and creating growth. It is only by comparing results with expectations that we can form a view as to the effectiveness of the efforts that have been made. And the efforts are considerable. The European cohesion policy area is at present some 35% of the EU entire budget. Between 2000 and 2006 Europe created more than 1 million four hundred thousand jobs, built more than 2000 km of motorway and 1800 km of high speed rail links. At the same time the number of European citizens with access to clean running drinking water in the home increased significantly, there were major improvements in the Environment, especially river and coastal waters and over 20 years the disparities between regions in Europe have reduced by about one fifth.

Even more important was the difference that cohesion policy made to countries like Ireland and Spain, helping to transform the first from the poorest country in Europe in 1973 to one of the very richest by 2008. Since that time Europe has experienced a number of economic problems, like the rest of the world. European policies to strengthen trade and industry and to promote innovation and growth at a regional level will be even more important over the next few years than they have been up to now. This is reflected in the Commission's budget proposal for the period 2014-2020. It is vital that Europe helps the regions of Ireland, Spain and Greece to recapture the economic momentum that they were generating just a few years ago.

In conclusion I should like to repeat what I said at the outset. The European Commission sees South Africa as a very important partner in a number of policy areas. Regional policy is one area where the exchange of experience can have the highest value. I would wish the contacts that have been made today to be pursued and I am sure that the European Commission's Directorate General for Regional Policy can contribute to building up a programme of exchanges and study visits involving EU and South African officials and regions of the EU in the future. The benefits of a regional policy dialogue are many and they have already started to be felt in countries as far apart as Brazil and Ukraine. We are ready to share our experience with you and look forward to you sharing your experience with us!

Thank you for your attention.

Seminar programme South Africa 14 September

Morning plenary

Afternoon round table

Morning Plenary session

09h30 Introduction and welcome: South African department of Trade and Industry

09h45EU regional policy: the main principles, Ronald Hall, Director for Information, Communication and Relations with non-EU countries, Directorate General for Regional Policy, European Commission.

10h30 Questions and Answers

11h00Coffee break

11h30 The experience of Urban renovation and planning in Vienna, Austria: DrRudolf Zunke, ViennaCity planning department.

12h30 Lunch

14h00 Cross border co-operation: the experience of managing and evaluating EUREGIO: Dr Hans Niessen, former Director of INTERREG IV A programme EUREGIO Maas-Rhine

15h00 Afternoon round-table on economic, social and territorial cohesion:Discussion between European Commission, EU Region and South Africanexperts and officials on what aspects of EU experience could be of most inspiration to South Africa

Panel:

SA: Department of Trade and Industry (Mr October, Mr Tau)

Ministry of Public Works

Prime Minister's office

Ministry of Rural Development and Land Reform

DIRCO

EU:Mr R. Hall

Mr C. White

Dr Zunke

Dr Niessen

Statements by Commissioner de Gucht, the EU Mission and Minister for Trade and Industry Robert Davies at a time to be confirmed.