10 th INSULEUR FORUM Palma de Mallorca, 10-11/6/2010

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1 10 th INSULEUR FORUM Palma de Mallorca, 10-11/6/2010 Sustainable Development and Insularity - Planning a development policy for insular areas covering a wide typology Agatha Lagi Special Service for Strategy, Planning & Evaluation of Development Programme General Secretariat of Investment and Developmen Ministry of Economy, Competitiveness and Shippin

2 Greek islands have a specific gravity to the national identity, history, economy, culture, environment Bulgaria Greece has a long coastline of ~15000 km in length. Albania FYRoM Turkey There are thousands of islands and islets in Greece. Among them, 127 are inhabited and only 79 have a population of more than 100 habitants. Most of the islands are situated at the Aegean sea (~90 islands), less at the Ionian and very few at the Cretan sea. - 15% of the country's size - 12% of the country's population - 10,5 % of the country s GDP

3 Greek islands are diverse covering almost the whole spectrum of islands typology in terms of geography, size, regional status Big and small islands (Crete 8336 km 2 Halki 28km 2 ). Archipelagos (Aegean - covers about 200,000 km 2, with ~100 islands) Coastal Densely populated- sparsely populated (Crete population- 34 islands with less than 50 habitants) Administratively part of a mainland region (e.g. Samothraki & Thasos- Region of East Macedonia Thrace, Salamina, Poros, Spetses, Kythira, Hydra, Skyros- Region of Attica) Administratively part of a wider insular region (Dodecanese) Island region (Crete) European borders (Aegean-part of east borders of the EU)

4 Islands reality is very different than the mainland's The example of the South Aegean Region - GDP/capita is not the most representative indicator of an island s prosperity & development needs Aegean Sea The islands of the South Aegean Region consolidated into a ground area Type of infrastructure Hypothesis of one island Actual situation Transport infrastructure Ports 3 50 Airports 1 14 Heliport 4 23 Education infrastructure Primary schools Secondary schools Health infrastructure Hospitals 1 5 Health centres Local Dispensary 0 37 Environment Infrastructure Waste Water Treatment Installations 8 35 Installations for Solid Waste Treatment 4 18 Energy Infrastructure Energy Production Factories 1 21 Crete Source: AIGAIO SA., Report for the South Aegean Region

5 Greek islands development is addressed through The NSRF aiming at a sustainable development at all sectors: environment, society, economy, culture (regional and sectoral operational programmes); and Special subsidies and remissions (concerning for example taxation, transport, entrepreneurship). All measures concerning islands are dictated by the Greek Constitution - article 101: Special legislative care should be taken for the insular and mountainous regions of Greece

6 The development of the insular areas is incorporated in the territorial priorities of the NSRF NSRF - Operational Programmes - 9 Sectoral - 5 Regional - 12 Territorial Cooperation Territorial Priorities of the NSRF concern specific spatial entities: cities, mountainous areas, insular areas as well as rural areas and areas relying on fishing. Main elements of the development strategy for Insular Areas: Restructuring of a sustainable and differentiated production pattern Developing business activities Tackling of accessibility and infrastructure issues Protection of the natural and cultural environment Interregional and crossborder cooperation

7 The ROP Crete & the Aegean Islands provides for all the elements of sustainable development in an integrated way GENERAL GOALS 1) Accessibility -intraregional and interregional 2) Quality of life 3) Sustainability and natural environment 4) Knowledge society outward looking partnerships. 5) Entrepreneurship, innovation, employment opportunities 6) Tourism 7) Managing intraregional inequalities 8) Networking between the region s urban centres and distinguishing growth poles Regions Crete* North Aegean* South Aegean* Accessibility Infrastructure and Services 37,6% 29,9% 16,4% Digital Convergence and Entrepreneur ship 6,6% 7,2% 28,2% Priority Axes Sustainable Development and Quality of Life 55,7% 62,9% 35,4% Specific Axis for small islands Regional Cohesion & Cooperation in the South Aegean ,9% * Total public co-funding: 1,2 b with additional financing from the Sectoral Operational Programmes (e.g. Competitiveness & Entrepreneurship; Environment and Sustainable Development)

8 South Aegean a phasing in Objective 2 Region Limited financing (16% to Obj.2 vs. 81.5% to Obj.1) Prompt absorption of resources within the first years of the programme Emphasis on competitiveness and innovation, while infrastructure and environmental protection projects are necessary. Increase of the national contribution from 20% to 50% Special programme reinforcing the competitiveness of the S. Aegean region (250 m from national resources)

9 Subsidies & Remissions Transport: Subsidised ferry lines (35 passenger & car ferries for 53 lines). Free transportation for the permanent population of the very small islands (intra regional). Subsidised air lines Economy VAT (30% reduction for the Aegean islands exempt Crete). Direct taxation (special regulation for islands with less than permanent population) Incentives for investment (increased % of aid) Water supply: Cost of water supply to anhydrous islands of the Aegean Electricity Same electricity rates for the whole country regardless of the production cost.

10 All islands face common issues that should be encountered at a European as well as at the national level European islands share common challenges and constraints (e.g. limited space and natural resources, traditional structure of their economy, small size of market, relative isolation) that create unequal conditions of development when compared to the continental mainland. These have to be encountered within a European policy framework based on the following principles: Respect of the provisions of the Lisbon Treaty and mainly Article 174 Provision of equivalent opportunities to the European islands Respect of the Proportionality rule Sustain the diversity (particular physiognomy) of the European islands Promotion of the endogenous development potential of the islands in a sustainable way

11 A need for a more integrated approach that takes into account The islands situation and development needs as well as the intraregional inequalities An evaluation of the policies and measures that have been implemented in islands The coordination of the sectoral policies under an integrated framework The incorporation of the sustainability notion into the management of the islands assets

12 Objectives of the 2.3c Action European Islands and the EUROISLANDS study To form a clear picture of the European islands realities in terms of sustainable development that will contribute to the discussion and implementation of the TA and its AP1 To contribute to the policy discussions on the future cohesion and regional development policies at a European level, including territorial cohesion. In this framework we further expect: To form recommendations for appropriate adaptations of the European policy framework as well as of the national/regional/local policy framework that will enable islands to face their permanent handicaps resulting from insularity, utilise their assets, compete equivalently at a regional, European and global level, and play a more active role in the EU both economically and socially.

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