First report on economic and social cohesion in the EU
The European Commission has published the first report on economic and social cohesion in the EU. This report was adopted in late 1996 and surveys trends and progress in achieving cohesion in the European Union. Analysing both Member States' and Community policies, the report finds that considerable progress has been made. Per capita incomes have increased in the least prosperous Member States (Spain, Portugal, Greece and Ireland) from 66% to 74% of the Community average between 1985 and 1995. However, even though some seven million jobs have been created in the EU during that period, unemployment remains the most serious problem in the EU, with wide disparities both between and within Member States. The report notes the contribution of Community policies to achieving cohesion. These include a wide range of policies, from social policy, research and development and trans-European networks to the single market and competition policy, in addition to the Structural Funds and the Cohesion Fund. According to the report, the Structural Funds have contributed additional growth of 0.5% per year to the four cohesion countries. In addition, the Funds have also assisted in the conversion of declining industrial regions in the other Member States. The value of the Structural Funds to all Member States is confirmed by the fact that some 40% of the assistance given to the less prosperous Member States returns to the richer countries through the purchase of plant, machinery and know-how. The report concludes by calling for the enhancement of the cohesion policy, by gearing it towards results, simpler procedures and more efficient financial engineering. Furthermore, it should be adjusted to meet the priority needs of Europe's citizens, through concentration on job creation, research and technological development, environmental protection and equal opportunities.