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Objective 1 of the Structural Funds is the main priority of the European Union's cohesion
policy. In accordance with the treaty of Rome, the Union works to
"promote harmonious development" and aims particularly to
"narrow the gap between the development levels of the various
regions".
This is why more than 2/3 of the appropriations of the Structural Funds (more than EUR 135 billion) are allocated to helping areas lagging behind in their development ("Objective 1") where the gross domestic product
(GDP) is below 75% of the Community average.
All these regions have a number of economic
signals/indicators "in the
red":
- low level of investment;
- a higher than average unemployment rate;
- lack of services for businesses and individuals;
- poor basic infrastructure.
Some fifty
regions, home to 22% of the European population, are covered in the period 2000-06, like in Ireland and Portugal.
Objective 2 of the Structural Funds aims to revitalise all areas facing structural difficulties, whether industrial, rural, urban or dependent on
fisheries.
Though situated in regions whose development level is close to the Community
average, such areas are faced with different types of socio-economic difficulties that are often the source of high
unemployment. These include:
- the evolution of industrial or service sectors;
- a decline in traditional activities in rural areas;
- a crisis situation in urban areas;
- difficulties affecting fisheries activity.
A certain number of German and French areas are in this case.
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