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Outermost regions demand their place at inner EU table

Published 28 May 2010 - Updated 01 June 2010
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Political leaders from the EU's outermost regions argued that their needs merit tailor-made strategies, and exemptions from a number of key EU policies, at a high-level conference with EU Commissioners Michel Barnier and Johannes Hahn in Brussels yesterday (27 May).

The two-day forum, hosted by the Spanish EU Presidency, was the first of its kind and saw delegates travel from as far away as the South American continent (Guyana) and the Indian Ocean (Reunion) to present their demands to some of the EU's biggest hitters.

In particular, delegates remarked upon the heavyweight presence of French Internal Market Commissioner Barnier, who rushed from vital EU meetings on banking regulations to deliver a keynote address.

Delegates speaking to EurActiv on condition of anonymity argued that Barnier would have been compelled to attend and represent the French national interest, given that six of the nine outermost regions (ORs) are French.

However, Barnier himself argued that he has a longstanding bond with these 'ultrapériphériques (ultra-peripheral)' regions, both as a former EU commissioner for regional policy and as a forceful backer of Article 349 of the Lisbon Treaty, which gave special recognition to the ORs' status. Regional Policy Commissioner Hahn described Barnier as an "expert and friend" to the nine regions.

Outermost regions worst hit by crisis

Barnier noted that this was a particularly difficult time for the ORs, given that the global economic crisis had hit the EU's weakest regions particularly hard. This point was echoed repeatedly by politicians from the nine regions (see 'Positions').

The French commissioner outlined a number of other key factors that could potentially hamper the regions' ongoing development.

These include the upcoming EU budget review, which could be "tough" on the ORs if they failed to maintain the same level of funds; the ongoing global trade negotiations, which without a "positive income" could severely impact on the ORs' economic productivity; and the simple fact that in the enlarged EU, it is more difficult for the ORs to make their presence felt, given that they are represented by three out of 27 countries as opposed to three out of 15.

'Influential' commissioners protecting their national interest?

It is more important than ever, therefore, that the ORs speak with one voice, Barnier said. He also added that the ORs had three "very influential" hitters batting for them in the form of himself, Spanish Commissioner Joaquin Almunia and Portuguese Commission President José Manuel Barroso.

Barroso, in particular, is "very aware of these issues," he said himself, adding that "you can count on me".

Exemptions and exceptions

Political leaders from the outermost regions outlined a number of demands, notably that they be exempted from, or given special status within, certain EU strategies.

Rodolphe Alexandre, president of the Regional Council of Guyana, claimed that the amount of earmarking attached to regional funds was working against the ORs and was a "major concern".

He argued that in the case of these regions, the Commission should prioritise investment in infrastructure, which in many ORs is still lacking. "In some parts of our country people still bathe in the river," he said.

He also called for waivers for ORs in EU standards on fuel transfer, claiming "we need derogations from the EU directive" on this issue for a "fairer situation," and asked for Guyana to be exempted from as many as 74 EU tariff lines, which he felt are hampering trade to the French department.

Other leaders repeatedly called for "differentiation" in the EU's approach to the ORs. "Our status means we are justified in having differentiated treatment" in order to attain parity with mainland EU citizens, argued André Bradford, vice-president of the Regional Government of the Azores.

Didier Robert, president of the Regional Council of Réunion, mentioned the importance of indigenous development strategies and also called for increased technology transfer to the ORs so they can speed up their growth.

He told Commissioner Barnier that the ORs were still struggling to derive the full benefit of the EU's internal market due to their isolation. Barnier responded by claiming that he would work hard to ensure the main tools of the internal market – the Services Directive and the Public Procurement Directive, inter alia – were adapted where possible to satisfy the ORs' unique needs.

Positions: 

French Internal Market Commissioner Michel Barnier argued that ORs "shouldn't be afraid to be different," adding that EU policies need to be more flexible to take into account their needs.

He called for the ORs to view their development in terms of "specific projects," not just big ideas. In particular, he highlighted agri-food production, marine and forest biodiversity, the unique cultural heritage of the ORs and its tourism potential, and ICT technology as areas where these projects should be built.

Commissioner for Regional Policy Johannes Hahn argued that "we need to rethink the way we address our support to regions at different stages of economic development".

"Those that lag behind must continue to receive support to help them modernise and reinforce their human capital," he added, going on to note that "in this regard, we also need to set up a fairer transition mechanism which ensures similar treatment of regions in similar situations. Such a system should allow regions to organise their programmes effectively in order to avoid the abrupt reduction of resources in the final years of programming".

He concluded that "the new Lisbon Treaty continues to provide a special recognition of the outermost regions. This guarantees that that they will be treated not only on an equal footing with all other regions, but that there is a legal basis to adjust policy to their needs when necessary – as we have already done on a number of occasions in cohesion policy, taxation, state aids, agriculture, fisheries, customs, trade, and research and development. The POSEI regime and the special top-up allocation of €975 million in structural funds are examples of how your unique situation is taken on board in Brussels. You are part of the European family and many benefits flow from that".

Serge Letchimy, president of the Regional Council of Martinique, argued that "homogenous development strategies" would not work for the ORs, adding that "top-down strategies leave significant gaps in their development".

Instead, he called for "multi-form and multi-level governance," and drew particular attention to the importance of the ORs' biodiversity as a key area for sustainable development.

Rodolphe Alexandre, president of the Regional Council of Guyana, claimed that the amount of earmarking attached to regional funds was working against the ORs and was a "major concern".

He argued that their main need is for investment in infrastructure, which in many ORs is still lacking. "In some parts of our country people still bathe in the river," he said.

He also called for waivers for ORs in EU standards on fuel transfer, claiming "we need derogation from the EU directive" on this issue for a "fairer situation," and asked for Guyana to be exempted from as many as 74 EU tariff lines, which he felt are hampering trade to the French department.

Finally, he argued that changes in the compensation mechanisms of EU regional funds would be important so the ORs can implement their biodiversity plan.

Didier Robert, president of the Regional Council of Reunion, mentioned the importance of indigenous development strategies and also called for increased technology transfer to the ORs so they can speed up their growth.

He told Commissioner Barnier that the ORs were still struggling to derive the full benefit from the EU's internal market due to their isolation.

He concluded by arguing that the EU should view the ORs as ideal incubators for innovative strategies. "We can be the vehicle for EU audacity and ambition," he said.

João Cunha e Silva, vice-president of the Regional Government of Madeira, called for "differentiation" in the EU's approach to the ORs.

"EU decision-makers must ensure that their policies are specific to us," he argued, adding that Article 349 of the Lisbon Treaty already specifies that this is the case.

Without differentiation, "EU policies will do more harm than good," he claimed, adding that the adaptation of EU rules to the ORs' unique situation was the key "lever for development".

"Our natural limitations are permanent," he said, and concluded that mere "increased in GDP won't make these go away".

André Bradford, vice-president of the Regional Government of the Azores, remarked that Michel Barnier's presence at the forum highlighted the growing recognition of the ORs' importance among the EU institutions.

Addressing the need for integrated policymaking with regard to the Europe 2020 strategy, he argued that "consistency between sectoral policies" was the only way to make it work.

He went on to note that the EU's internal market does not benefit the ORs as much as it should, noting that "talking about market liberalisation as if it was the same for us as Brussels or Paris would be wrong and unfair".

"Our status means we are justified in having differentiated treatment" in order to attain parity with mainland EU citizens, he concluded.

Spanish centre-right MEP Gabriel Mato Adrover, who represents the outermost regions' parliamentary intergroup, noted that ORs have become increasingly prominent in EU decision-making since they began cooperating closely together towards long-term objectives.

He noted that the regions are "aware" that they have not met all their EU development objectives, but attributed this in part to persistent social and economic problems in the ORs, which emperils development and requires stronger EU leadership.

Madeira, one of the EU's outermost regions (© EU Commission)
Background: 

With the entry into force of the Treaty of Lisbon, the European Union now has nine outermost regions (ORs): the four French overseas departments (Guadeloupe, French Guiana, Réunion and Martinique), two French overseas collectivities (Saint Barthélemy and Saint Martin), the autonomous regions of Portugal (the Azores and Madeira) and the Spanish Autonomous Community of the Canary Islands.

Since 1999 the European Union has recognised the special situation of the outermost regions (their insularity, remoteness, small size and economic dependence) in relation to the other European regions.

In 2008, the Commission adopted a communication proposing a renewed European strategy for the outermost regions.

The Lisbon Treaty also includes a clause (Article 349) explicitly outlining the unique challenges faced by the ORs and consequently calling for "specific measures" to be applied to their situation in EU strategies.

Of the nine ORs, all apart from the Canaries and Madeira fall into Objective 1 status for EU regional funds, i.e. they are among the Union's least wealthy regions, with GDP at 75% or less of the EU average.

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