EC Says Renewable Energy, Innovation Key for Successful Cohesion Policy in Italy

October 24, 2008 // Published as a news service by IHS

Hübner praised this region for its commitment to renewable energy and other innovative R&D efforts, saying, "During this period of severe economic uncertainty, Europe's Cohesion Policy provides a rock of stability for member states and regions."
 
"Recent indicators show that economic conditions have been improving in Umbria, but there is still an urgent need to raise public and private expenditure in the research and development sector (R&D)."

"The region can certainly take a lot of satisfaction from the fact that its production and consumption of renewable energy are above the Italian and, indeed, the European average. I urge all those responsible for implementing programs supported by the EU Cohesion Policy to work together, to build on Umbria's strengths, to overcome weaknesses and to deliver concrete results for the citizens."

New program for 2007-2013
When designing its Cohesion Policy program for 2007-2013, Umbria set ambitious targets: the creation of 2,000 jobs, a 5% increase in exports, universal availability of broadband or wireless Internet access, and a 5% increase in the production of renewable energies.

The first "calls for proposals" in response to these targets have now been launched by the region, which will enable hundreds of projects to receive support from the EU, provided that they are line with the priorities fixed by the program.

In total, the region will benefit from €583.5 million in support from the EU: this includes €150 million from the European Regional Development Fund, €99 million from the European Social Fund and €334.5 million from the European Agricultural Fund for Rural Development (see MEMO/08/58).

Concrete projects supported by European Cohesion policy
Hübner will visit the Novamont company in Terni, a pioneer in the sector of biodegradable products, which produces a "bio-plastic" called Mater-Bi that is made from corn and sunflowers seeds.

Novamont's bio-plastic is completely recyclable, biodegradable and even compostable. This new product boasts a vast range of applications from bags and packaging to throw-away glasses. Around 40 million tons of petroleum-based plastics are consumed in Europe every year.

Novamont has also collaborated with U.S. multinational Goodyear to develop an "environmental" tire that reduces road resistance by 40%.

European investments of €675,000 helped to build Novamont's ultra-modern bio-refinery. The firm received the "European Inventor of the Year" award from the European Patent Office in 2007.

Hübner will also visit the high technology center in Foligno, which specializes in advanced mechanics and has also benefited from investment through the Cohesion Policy.

Cooperation with neighbors
Although Umbria is not eligible for EU cross-border projects, this does not prevent the region from cooperating with its neighbors though transnational programs.

Umbria is actively involved with eight other EU member states in the MED Program, which promotes partnerships in the northern part of the Mediterranean and with 15 other countries in the South East Europe Program.

Background
In the 2000-2006 Cohesion Policy program, the region of Umbria benefited from €157 million from the European Regional Development Fund. However, the program triggered total investments, both public and private, of €1 billion. The region estimates that the EU's investments contributed to the creation of 1,000 new jobs.

In Umbria, public research and development expenditure represents only 0.8% of regional GDP (for Italy as a whole the figure is 1.1%). This is considerably lower than the 3% European target fixed by the Lisbon Strategy for Growth and Jobs. Private expenditure in R&D is equivalent to 0.2% of the regional GDP (Italy: 0.5%).

Italy is the third largest beneficiary of the EU's Cohesion Policy behind Poland and Spain. Under the 2007-2013 Cohesion Policy program, the country will receive a total of €28.8 billion of support.

For more information on regional policy in Italy, see the EC's web site on Cohesion Policy 2007-2013.

Source: European Commission.