I.2.

Situation of the Med development perspectives

area

and

The socio-economic diagnosis and SWOT analysis of the Med area aims at providing the reader with a snapshot of the situation of the programme area. In this respect it aims particularly at visualizing disparities within the eligible regions as well as the differences between the Med programme and its surrounding areas. The diagnosis and SWOT analysis highlight the main characteristics of the area so as to identify, within the Med programme, the most important issues on which sustainable development actions could be based for the coming years. As such, they refer to the strategic orientations of the European Union presented in the Strategic Community Guidelines and in the EU regulations developed around four main topics, on which will be based the strategy of the Med programme: socioeconomic development and innovation; environment and heritage; territorial accessibly; territorial development, polycentrism and culture. a) The context of the Med programme area Landscape characteristics The Med programme area is characterised by a very diversified and very sensitive landscape, consisting of a very long coast line, mountainous regions (Alps, Pyrenees, Pindos etc.), numerous rivers and lakes, very large and fertile plains, forests and many islands, two of which are new member States (Malta and Cyprus). For this reason, the area does face difficulties in communication and access between countries, regions (east west connections, Islands) and with surrounding areas (with northern Europe notably). Furthermore, the geographically fragmented aspect of the Med area does not facilitate as well the setting up of transnational coordinated development strategies between Member states, between regions or between the main metropolitan areas. Administrative borders are often characterised by significant physical borders which necessitate strong cooperation systems to coordinate policies in strategic fields like environment, natural risks, maritime safety or economic development. On the other hand, the Mediterranean countries and particularly the Mediterranean Sea, maintain since ancient times - important roles as super-highways of transport, allowing for trade and cultural exchange between the peoples of the region, their hinterlands and other continents (Africa, Middle East and Asia). The history of the Mediterranean is important in understanding the origin and development of the western civilization. Much of this history and cultural heritage is still to be found in the Med countries cities. Some of them are quite strong economic centres of growth (e.g. Barcelona, Valencia, Marseille, Lyon, Milan, Turin, Roma, Athens). History, culture
10

and favourable climate generate a strong attractiveness which boosts the tourism industry but are as well a source of pressure on cultural and natural heritage. Concerning the environment, the Med area is home to considerable biodiversity. This area has been designated as a biodiversity hotspot, because of its rich biodiversity and its threatened status. This hotspot includes the sea, large wetlands and rivers, mountainous regions, forests and plains. It is home to a number of plant communities which vary with rainfall, latitude and soils. In some regions of the Med area, the over exploitation in combination with faulty exploitation of natural resources have led to severe degradation of the natural environment. For these reasons, the protection of the territorial heritage nature and landscape- represents a strong issue for the future. In the field of agriculture, the Mediterranean regions have been characterized by historians as the

11

olive zone, which may be the crop that separates the (natural) identity of the area from its northern hinterland. However, several other plant crops, mainly cereals and fruits as well as livestock - are produced. With forestry, they contribute to the local and national economies of the region (export of food products mainly). In the same time, fishing still constitutes an important industry for some regions and has to be managed in connection with natural environment protection and prevention of maritime pollutions. In times of global climate change, the Mediterranean regions are very sensitive to natural hazards such as draught, forest fires and floods. The lack of water resources constitutes a strong preoccupation in islands and regions in connection with urban pressure and intensive agricultural activities. Demography5 The countries around the Mediterranean Sea have a population of 430 million inhabitants6 (2003 figure, Eurostat), of which approximately 183 million live in EU member States. 66,9% of the population of the northern shore of the Mediterranean Sea live in urban areas7. In 2006 a total of approximately 110 million persons lived in the eligible Med regions, equalling 22% of the total EU27 population. The regions covered a total area of approximately 800.000 km 2, nearly 20% of the total EU territory (18,86%) see appendix 1. The distribution of the population of the Med regions shows important disparities. Where the average population density of the whole programme area comes to 137 persons per km2 (the EU27 equivalent is 116), this figure is for Malta 1.280 persons per km2, for the two Portuguese regions 32 persons/ km2 and for Gibraltar regions only 4 persons/ km2 8. The Med space regions are popular places of living. The Eastern coast of Spain, the two Mediterranean regions of Portugal, the southern coast of France and the coastal areas of Northern Italy as well as both Cyprus and Malta, have all experienced population increase of an average of about 12 persons per 1000 inhabitants between 2000 and 2005. The coastal areas of Greece and Southern Italy have experienced a weaker population increase in some regions of the countries even a decline in the population has been checked9. As for many European regions, the increase in population is not due to natural increase, but mainly to migration from abroad (extra-EU as well as intra-EU). The natural population change is even negative in Slovenia and in Greece, whereas in the other Mediterranean countries the situation is more balanced. Additionally, the population of the northern shore of the Mediterranean Sea has aged, so that in 2005, a percentage of 22,1% was above 65 years of age. Whereas the young age dependency is clearly below the EU average in Spain, Italy, Slovenia and Greece, the tendency is also there in France, Malta, Cyprus and the Portuguese regions. Reversely the old-age dependency rates in these countries (Greece, Spain, Italy, Slovenia, French Mediterranean regions and Portuguese regions) are well above the EU average, with only Cyprus and Malta with an old-age dependency rate
12

slightly below the EU average10.

Source: www.statistics.gr, www.ypes.gr, www.insee.fr, www.citypopulation.de, www.mof.gov.cy/cystat, www.nso.gov.mt, www.stat.si, www.forum.europa.eu.int/irc/dsis/regportraits/info/data/en 6 Non-member states of the West Balkans are not included in this figure. Out of the total population, 64,1% lived in urban areas (2000) 7 Source: Plan Bleu: Demography in the Mediterranean Region. Situation and projections. Isabelle Attane & Youssef Courbage, English version of 2004. 8 For more details, see appendix 1. The corresponding figure for Slovenia is: 99 persons per km2, for Cyprus 130, for Greece: 83, for the French regions 121, for Spain: 115 persons, and for Italy 184. 9 Forecasts of the urban population in Mediterranean coastal cities tell that on the northern shore the urban population is expected to increase by 6 million between 2000 and 2025, from 129 million to 135 million. On the southern shore these figures are quite different: the forecast tells that the population in urban centres will increase from 145 million in 2000 to 243 million in 2025 (+68%). 10 See appendix 2

13

Economic performance and structure of the economy In 2003, 32 regions out of the 48 in the Med area had a GDP per capita (PPS) bellow the EU average and 13 had a GDP per capita equal or bellow 75% of this average. Within this area the situation is very contrasted with almost 10 regions approaching or exceeding 120% of EU average (regions of northern Italia, Catalogna and Balearic islands in Spain, Sterea Ellada in Greece, Rhone Alpes region in France)11. In parallel, Mediterranean countries show growth rates that exceed those of the average of the EU in the period between 2000 and 2005. However, there are quite big discrepancies between the Mediterranean countries in the growth pattern of the GDP. Between 2000 and 2005 Italy, Malta and Portugal exhibit some instability in the growth rates, while Greece, Cyprus and Slovenia feature a more dynamic evolution. In 2005, the GDP of these three countries exceeded 3%. On the contrary, Italy and Portugal were close to or below 0% of annual growth rate12. Generally, despite structural difficulties and a low level of GDP per capita in many regions, a relatively dynamic growth rate shows a process of convergence between northern and southern European countries over the first 5 years of the 3rd millennium. However, at a regional or infra regional level, economic disparities are still very significant and even tend to increase in the poorest areas. From a sectoral approach, national Gross Value Added in the Med area derived in 2005 mainly from the sectors of trade and transport, business activities and financial services and other services. In all of the Med countries, these sectors generate between 67 and 77% of the GDP. However, the services sector relies much more on traditional branches. Knowledge economy and new economy activities (design, media, communication, marketing, fashion) represent however a strong potential in the most developed regions and should be strengthened as facing international competition In parallel, the traditional sector of tourism, although very dynamic, nevertheless could be especially strengthened in those sectors promoting sustainable development principles: in particular protection and management of the environment as well as agriculture and fishery activities which are still important in the Med area as compared to other European regions. Whereas the agriculture sector contributes within the EU 25 to an average of 1,9% of the gross value added, within the Med area this figure is ranging from 2,2% in France to 5,2% in Greece (2005)13. This shows a still important position of traditional economic sectors which are based on the activity of a high percentage of fragmented SMEs with often low added value. These sectors and enterprises will require modernization, partnership and diversification to better compete on national and international markets. Employment In 2004, the EU 25 unemployment rate came to 9,1%. Greece, Spain, France and Slovenia all featured national averages of unemployment
14

above this level (Greece: 10,5%, Spain: 10,6%, France: 9,6% and Slovenia: 18,2%). In contrast, though, Cyprus, Italy, Malta and Portugal features rates well below the EU 25 average (Cyprus: 4,6%, Malta 7,4%, Portugal 6,7% and Italy 8%). In the southernmost region of Portugal (Algarve), in most of the Spanish regions, in the South-western Italian regions, in some of the Central Greek regions, in Slovenia and in Malta, the unemployment rates decreased up to 1%. However the situation is difficult in most of the Greek regions, the Northern and eastern Italian regions as well as in Cyprus where the unemployment rate increased from 0.2% to above 2% between 2003 and 2004.
11 12

Source Eurostat 2006. See appendix 3 and appendix 4 See appendix 5 and appendix 6 13 Source: Eurostat Agricultural Statistics. Data 1995 2005

15

Concerning labour productivity the Mediterranean countries presents a varied picture. Being fairly high in Southern France and Northern and central Italy, the Central part of Greece and Attiki, Greece, it is low to very low in the rest of the regions14. In the period 1998 to 2003 productivity grew in Greece and Cyprus by between 10 20%. In the remaining regions, with only a few exceptions in Spain and France, the regional productivity growth rate was below 5% if not negative, as it was in Malta and in some north Italian regions. Concerning the employment rate in 2004, only Cyprus, Portugal and Slovenia had an rate exceeding the EU average of 63,8% (Cyprus 68.9%, Portugal 67,8%, and Slovenia 65,3%). Indicatively, national employment rate in Spain comes to 61,1 % in France to 63.1% in Italy to 57.6%, and in Greece to 59,4 %.

b) Innovation in the Med programme area Education During the period 2000 2003 four of the Med countries spent above the average of the EU on education (France, Cyprus, Portugal and Slovenia). Greece, Spain, Italy and Malta all spent less, when measured as a % of the GDP. For all countries though, the spending increased during the years 2000 2003 15. Even the number of science and technology graduates in Med countries is in general below the EU 25 average, enterprises and industries can rely on a skilled labour force and on young people with high education level. The fact that the number of Science and Technology graduates increased in all the Med countries is a sign of an increasing recognition of the importance of human capital as an engine of growth. Also this is definitely the basis for introducing innovative activities in Mediterranean regions. Although countries like Greece, Cyprus and Slovenia show figures below the EU average, (ranging from 4,2 to 9,3 graduates per 1000 persons aged 20 29 years) these figures must be put into perspective as many young people (particularly from Cyprus and Greece) do not graduate in their home country, but abroad .16 Research and development Science, Technology and Innovation form one of the cornerstones of the EU policies. In 2000 and 2006 the EU governments agreed to increase the R&D spending to 3% of the GDP by 2010. In 2005, when the Lisbon strategy was reviewed, this policy received more attention. The EU average
16

GDP expenditure on R&D (GERD) was in 2004 at 1,86% of the total GDP17. Within the Med countries, only France reaches a level of expenditure above the EU average. All other Med countries expenditure is well below the average. The encouraging trend though is that expenditure on R&D is increasing in the Med space countries, with the exemption of France and Greece. The general picture remains though, that the Med regions are lacking behind in R & TD activities in comparison to other EU regions.

14

In these regions the productivity measured as GDP/Employment in euros ranged from 50.000 to above 60.000. The rest of the Mediterranean regions feature productivity between 20.000 to 50.000 Euros. 15 The spending on education as a % of GDP was in the EU 15 in 2003 at 5,21%. The Med countries expenditure on Education ranged that year between 3,94% (Greece) and 7,36% (Cyprus). See appendix 7 16 An example from Greece: Approximately 75% of all young people aged 20 24 receive education at highest level (Universities) which in comparison with other European countries is rather high. 17 Source: Eurostat 2007

17

Most of the activities are financed by the public sector and to a much lesser degree by the private. If Universities and public research centres participate well in the R&TD activities, on the other hand, the trend in expenditure on R&D financed by industry is varying between countries. Between 2000 and 2004 the expenditure of R&D funded by industry decreased by approximately 1% in France and Spain. In Greece, the decrease came to about 4,8% (period 2001 2003). On the other hand the same kinds of expenses rose in Cyprus between 2000 and 2004 by 1,4%, and in Slovenia during the same period it rose by 5,2%. In Portugal the figure rose by 4,7% between 2000 and 2003. Also, the share of R&D personnel as a percentage of persons employed is for most of the regions well below the EU average which in 2003 was 1,44%. Within the countries of the Med area, only the Rhone - Alpes region in France exceeds this average by more than 2%. In spite of the fact that the R&TD activity in the Med space countries is not at a too advanced level, the existence of higher level education institutions and public research centres do provide focal points for future furthering of these activities. Patents and export of high-technology products The recent increase in patent application has enhanced their economic importance and the interest of policy makers. They are an indication of the innovativeness of regions. In 2003, the EU15 average number of applications made to the European Patent Office was 161.393 per 1.000.000 inhabitants. Within the Med countries this figure varies a lot: In France it came to 153.74 applications and in Spain it was only 30.58. In Portugal this figure was only 7.497 applications. (In comparison, the figure for Germany was that year: 311.714 applications What is common for all countries is that there is an increase in the number of applications, which does indicate that the existence or recent establishment of research centres and institutes do provide a basis for furthering the R&TD activities. Employment in high tech industries and knowledge intensive services lies within the EU 25 at around 6,9% of the total employment (year 2004). To this end most of the regions of the Mediterranean Space countries have less than 5%18. In terms of exports of high tech products the situation seems to be reflecting that Malta and France do well, as their share of exports of hightech products as a share of total exports is at the EU 25 level (France 20% the whole country) or well above this average (Malta, 56%). In Greece, Spain, Italy, Cyprus, Portugal and Slovenia this share of exports lies at very low levels in comparison to the EU 25 average. For example: In Greece and Italy high-tech exports accounts for 7%, in Spain for 8%, in Cyprus for 16%, in Portugal 8% and in Slovenia 5%. E-society The investments in telecommunications and IT are linked to the e-society,
18

which is emerging rapidly. The e-society can become instrumental for better social cohesion and future economic development within the Mediterranean space. In terms of developing e-government on-line availability, most of the Med countries are levelling or exceeding the EU average, with the exemption of Greece and Cyprus.19 The business communities of the Med countries use the e-government facilities to an extent that equals or extends the EU average. In 2005, 57% of the EU 25 enterprises used internet for interaction with
18

Only Malta, few regions in Spain of which one is within the Med Space, and some of the Northern Italian regions are above the EU average that year, in fact reaching 7,5%. 19 In 2006, the EU25 average of online public services was 50. In Greece it was 30, in Cyprus 35, in France 65, in Italy 58, in Malta 75, in Portugal it was 60, in Slovenia it was 65 and in Spain it was 55. The figure for Gibraltar is not known, but taking the figure for UK it was 71. Source: Eurostat.

19

public authorities, in Greece this figure came to 81%, in Spain 55%, Italy 73%, Cyprus 40%, Malta 68%, Portugal 58% and Slovenia 72%20. However, the impact of ICT on business development is as well depending on the level of internet access of households which is in general lower than the average of the EU2521. c) Environment in the Med programme area Natural resources Biodiversity Natural resources are much diversified within the Mediterranean countries and include large areas of forested and agricultural land, mountainous areas, rivers and coasts with specific landscapes like lagoons, deltas, dunes and wetland areas. They represent a very rich and sensitive asset for Med regions. There are also substantial differences within the Mediterranean countries as to what regards the present state of the environment and the scale of the problems existing. The prevailing common issue amongst the Mediterranean regions is the challenge of managing coastal zones, land- and water- use, protected areas.

Main agricultural and natural systems of the Mediterranean countries

Source: Plan Bleu

There are severe problems in terms of degradation of the environment and growing vulnerability to natural disasters. The causes of these problems are to be found in weak connections between the Mediterranean societies and their environment, forests, industrial and agricultural activities, coastal over-development22, traffic and intensive tourism23. Un-controlled land use, inefficient energy use, and nonintegrated management plans have a global impact on the natural resources available. Protected areas throughout the region remain fragmented, usually consisting of smaller isolated drops
20

20

See appendix 8 21 In 2006 the average % of households in the EU25 that had access to Internet was 52%. In Greece it was 23%, in Spain 39%, in France 41%, Italy 40%, Cyprus 37%, Portugal 35% and in Slovenia 54%. 22 Approximately 40% of the total coastline is considered to be built-up urbanization and artificial coasts. 23 In the EU the total protected areas for biodiversity cover 12,1% of the total EU 25 areas. Most of the Mediterranean countries have more than that average of protected areas. In 2005 16,4% of the Greek area was protected areas (Habitat directive) and in Spain this figure came to 22,6%. In France it came to 6,9% and in Cyprus 5%. Maltas protected areas came to 12,5% of the total land area and in Portugal the figure was 17,4%. In Slovenia the corresponding figure came to 31,4%.

21

in the landscape. In many cases very valuable ecosystems are to be found in border areas, such as the rivers that form natural borders or the Mountainous ranges. Very valuable ecosystems can be directly submitted to human activities through intensive agriculture, faulty methods of farming or urbanisation like in delta rivers areas. Thus, integrated management of urban waste has not yet been implemented widely throughout the Mediterranean regions. Also there are severe problems in terms of processing and managing industrial and dangerous waste. This problem is particularly visible in abandoned industrial areas. The problems relating to soil resources have resulted into the degrading of the soil systems because of erosion, deforestation and hence less productive soils and dangerous degradation of underground waters. Attention must be paid to the management of natural resources, taking into account the impact on the environment and the social and economic consequences for the local communities. The right balance between preservation and the exploitation of the coastal and the mountainous areas has to be found in order to minimise and avoid the loss of ecological balance. Urban environment and pollution In urban areas, the environmental, economic and social dimensions meet most strongly. As many environmental problems are concentrated in cities; the quality of life of the citizens is directly influenced by the state of the urban environment. The environmental challenges facing cities have significant consequences for human health, the quality of life of urban citizens and the economic performance of the cities themselves. Most cities in the Med region are confronted with a common core set of environmental problems such as:
-

pollution (air quality, high levels of noise, emissions of greenhouse gas) caused by high levels of traffic and congestion, heating, some industries; poor-quality built environment; derelict land and brownfield areas; green house gas emissions; urban sprawl; generation of waste and waste-water.

For example, although the EU member states have agreed to an 8% reduction in its greenhouse gas emissions by 2008 2012, the total emissions in the Med Countries do not seem to decrease. Between the year 2001 and 2004, and measured against the base year 1990, the indexes for the Med countries with the exception of France and Slovenia, rose. In the EU 25 the volume of emissions fell by 7,3 points, in Greece it rose by 23.9, in Spain by 47.9, in Italy by 12,1, In Cyprus by 48,2, in Malta by 45,9, in Portugal by 41. Only in France and Slovenia the volume decreased
22

in both countries by 0,824. Water management Water management is a strong issue within the Med area because of limited resources and important human activities which increase water consumption and affect the quality of water resources (household discharges, industrial production, farming methods and animal husbandry). Water abstraction of both ground and surface water is in general increasing in the Mediterranean Space countries25. In addition, pollution of rivers, lakes and ground water resources is becoming a
24

Source: Eurostat 25 Data for the water abstraction and water consumption are very limited and not really comparable over time and between regions. However the general trend is that the total water abstraction per capita increases. For example: Over a 5 year period (1992 1997) the water abstraction per capita in Greece rose from 778,9 to 809,3 m3. In Slovenia the volume rose from 153,2 m3 in 2000 to 450,9 m3 in

23

preoccupation in each Med region. In most of the Med countries, treatment of urban waste water is limited at least considering the % of the national populations that are connected to waste water systems. In Spain and France the % of population connected to such systems are 89% (2002) and 79% (2001) respectively whereas in Greece and Italy the corresponding figures come to 56% (1997) and 63% (1995) respectively. The figures are 35% in Cyprus, 42% in Portugal, 33% in Slovenia (1997) and 13% in Malta (1997). Energy In spite of the possibilities existing to produce energy / electricity using renewable sources of energy, these possibilities are still not fully used in the Mediterranean countries. Practices for saving resources have in general not yet been adopted. Where the figure for energy production using renewable energy sources on the average in the EU 25 comes to 12,7% of the energy production(biomass, hydro, geothermal, wind and solar energy), the similar figures in the Mediterranean countries are very low. In Med countries, the main production of renewable energy comes from biomass and hydropower. Solar energy and wind are progressing but still represent a low percentage of the global energy production.
Sources of the renewable energy primary production within the Med countries (1000 toe, 2004)
Greece Spain France Italy Cyprus Malta Portugal Slovenia Source: Eurostat 2007 21 2,877 47 0 78 84 9 35 2 70 Sola r 10 8 62 19 19 92 Biomass 95 3 4,853 12,007 3,145 5 Geotherm al 1 8 13 0 4,88 8 Hydro 40 2 2,713 5,179 3,671 Wind 96 1,341 49 15 9

The production of solar energy (measured in 1000 toe26, 2004) was in the EU25 an average of 743. The corresponding figure for the Med countries was in Greece 108, in Spain 62, in France and Italy 19, in Cyprus 92, and in Portugal 21.27 (No data for Malta and Slovenia available). Concerning energy intensity28 the EU 25 came to an average of 204,89 in 2005. In comparison, only France and Italy among the Med countries show a better result while Cyprus, Malta and Slovenia exceed 250. For comparison, the corresponding figure for Denmark was 120,32 in 2004. This means that the efficient use of energy could definitely be improved.

24

2002. In France for the same to years the volume remained at the same level (556,9 m3 in 2000 and 558,8 m3 in 2002). In Cyprus the corresponding figures were: 263,4 and 289,8 m3 respectively. On the other hand the figures for Spain show a decreasing trend as in 2000 the volume came to 925,6 m3 in 2000 and to 908,6 m3 in 2002. Also Malta featured a decrease in abstraction of water as in 1995 the volume came to 54,9 m3 and in 2000 it came to 44,9 m3. For Italy and Portugal the figure for the year 1998 (only year for which data are available) was 737,7 m3 and 1097,0 m3 respectively. The increasing trend in water abstracted for public water supply is similar to the trends for total water abstracted. Data are likewise problematic. Source: Eurostat. 26 Toe : ton of oil equivalent 27 Source: Eurostat 28 Energy intensity: the ratio between gross inland consumption of energy and the GDP. It measures the energy consumption of an economy and its overall energy efficiency. The gross inland consumption of energy is calculated as the sum of the gross inland consumption of five energy types: coal, electricity, oil, natural gas and renewable energy sources. The GDP figures are taken at constant prices.

25

Natural risks The Med regions are very sensitive to natural hazards. The dangers of draught and fires are particularly worth attention, especially concerning forests management. According to ESPON29 studies, the Mediterranean areas have been classified as main cluster threatened by forest fires and droughts in Europe30.
Natural hazards in Europe

But not only do fires and droughts threaten the natural environment of the Mediterranean Space. There are other natural hazards too: earthquakes mainly in Italy and Greece, floods (northern Italy, south of France, Slovenia) etc. The aggregated map of natural and technological hazards reveals that particularly the Central and Western Mediterranean coastal regions are endangered by hazards. Maritime environment As mentioned earlier, the Sea is the biggest asset of the Med programme area. Characterized by some very narrow straits as entrance or exit points for the Maritime traffic (the Strait of Gibraltar, The Sea of Marmara, The Suez Canal), the Mediterranean Sea is particularly vulnerable and exposed to maritime accidents. Estimations of REMPEC31 state that within the Mediterranean Sea there
26

are about 2.000 merchant

29 30

ESPON : European Spatial Planning Information Network Source: ESPON: project 1.3.1. Natural Hazards, final report April, 2006 31 REMPEC: Regional Marine Pollution Emergency Response Centre for the Mediterranean Sea

27

vessels over 100 Gross Registered Tons at sea any moment32. Of these vessels, 250 300 (that is more than 10%) are oil tankers. The Mediterranean Sea is the major route for transportation of crude oil from the fields in the Middle East and Northern Africa, to the European and Northern American centres (this significant volume of traffic that transits the Mediterranean Sea rarely enters any of the Mediterranean Ports). Between 1990 and 2000 a total of 199 accidents in the Mediterranean Sea were recorded, of which 91 caused oil pollution. Additionally the Maritime environment is also endangered by the transportation of solid hazardous products (chemicals) which are being transported in large bulk quantities. d) Accessibility in the Med programme area The transport sector contributes to the development of any region, no matter at what scale. The continuous improvement of the road infrastructure has contributed to the provision of better accessibility and better territorial cohesion between centres and the regions. The existence of large islands that are depending on the air and sea transportation facilities poses the issue of developing integrated and multimodal transportation systems. Multimodality is a key component of its competitiveness and sustainable development, facilitating efficiency in the transport of persons and goods, as commonly agreed by former Meda partners33. Also, in view of the increased mobility, efficient transport infrastructure is needed to minimize the environmental effects and simultaneously to increase safety34. Road transport and road networks Regions with a high development of road infrastructure of motorways and major roads do in general have a competitive advantage over others. In the Mediterranean countries, there are fairly good road infrastructures and a well developed regional network. However, the density of motorways expressed in kilometres of motorway per 100 km2 still lags behind as compared to the European average. This is mainly a difficulty concerning east-west connections within the Med space. The Coastal regions of Spain, France and Italy are catching up with the higher levels in Central and Northern Europe, but in the Eastern part of the Mediterranean regions the situation is that some catching up still has to be done. Due to the terrain of the Med countries that are connected to Northern Europe, there are still difficulties in terms of connecting the region on an east west axis. However, the lack of accessibility from the coast to the internal zones and the high traffic density in the main corridors and most urbanised areas cannot be solved only by developing road infrastructures. An integrated approach is required with the adaptation of existing transport means and with the development of multimodal/intermodal transport systems (road-rail connections).
28

32

Source: REMPEC: Protecting the Mediterranean against Maritime Accidents and Illegal Discharges from Ships, 2005. Note: There is a general lack of reliable data concerning the traffic patterns and density in the Mediterranean. 33 Meda programme: programme based on financial and technical measures to accompany (MEDA) the reform of economic and social structures in the framework of the Euro_+Mediterranean partnership. Cf. in the Blue Paper: Towards an integrated EuroMediterranean Transport System - November 2005. 34 In Algarve for example the death rate per million inhabitants came in 2003 to a high of 318. Increase of car ownership in combination with improper road infrastructure is also causing increasing death rates, particularly in larger urban areas.

29

Source: Transport networks and networks: Territorial trends and basic supply of infrastructure for territorial cohesion., ESPON Final Report, Project: 1.2.

Rail transport In general the Mediterranean Space regions can be characterized by the fact that the density of railway is much less than that of the Northern and Central European Countries. Furthermore the existence of high-speed rail networks is not yet completely efficient and in some cases totally inexistent. In France this system has been developed satisfactorily. In other countries, - were railway networks do exist the development of high speed or upgraded lines are limited to connections between main cities. Furthermore there are regions within the Med space, where railway networks do not exist at all: Cyprus and Malta are the striking examples, but also several of the large islands not to mention at all the smaller ones do not have well organised railway systems. In those regions where railway networks do exist, these are often very poorly connected to the road networks. Very often the main terminals of the railway networks are situated in inner-city areas, which are in any case not easily accessible by car. This again confirms the need for developing multimodal/intermodal transport systems and multimodal transportation nodes.
30

Source: Transport networks and networks: Territorial trends and basic supply of infrastructure for territorial cohesion., ESPON Final Report, Project: 1.2.

Maritime transport Maritime transport is extremely important in the Mediterranean Sea. The Mediterranean Sea is the carrier of international trade between the EU and the Mediterranean countries and Asia, representing around 75% of the total trade and presenting an annual increase of 6% in the late 1990s and early 200 0. In 2004, the Sea transport of goods in the Med space countries reached 40,8% of the total sea transport of goods in the EU35. Some of the international freight goes by road or by air. Short-SeaShipping is seen as one of the main pillars in the White Paper for transport36 (European Transport policy for 2010: time to decide) as a flexible option to absorb a constantly increasing demand on the road system. In combination with the creation of Motorways of the Sea, the aim is to develop an integrated transport system between different transport modes and to offer alternatives to the road-only transport. There is a rather large potential for the Mediterranean countries to develop Short-sea shipping further. For example, only Sicily reaches volumes of short-sea-shipping that can compare with regions in northern
31

Europe37

35 36

Source: Eurostat 2007 White Paper: European Transport policy for 2010: time to decide, European Commission, 2001. 37 See Eurostat: Regions: Statistical year book 2006. Data 2000 2004. Map 10,3., October 2006

32

Total amount of short sea shipping, 2004, Nuts II

Source: Eurostat: Regions: Statistical yearbook 2006. Data 2000 2004, map 10.3., October 2006

Air transport The air transport system is fairly well developed between the main Mediterranean urban centres, but improvements can be made both in terms of regional airports in the Mediterranean regions and in terms of connecting these to the hub-airport and other forms of transport, in particular connecting routes on an east-west axis. However, the density of regional airports within the Mediterranean regions is not as close as the one of Northern and Central Europe, while air transportation of goods and passengers is expected to become evermore important. The Med countries already experience large volumes of travellers because of their tourism economies. In 2005, the number of air passengers within the EU 25 came to 705 Million (1,5 passenger per inhabitant). This means an average of 28,2 million passengers for each country. In Greece, Spain, France and Italy the figure of air passengers exceeded that: 31 million in Greece; 144 million in Spain; 108 million in France and 88 million in Italy38. In the regions of Algarve, Corsica, Crete, Cyprus and Malta, this number of incoming and out bound travellers is between 6 and 12 per inhabitant. In Rhodes, and in the Balearic Islands, the corresponding figure is more than 12 passengers per inhabitant. Investments in ICT39
33

Information and Communication Technologies are instrumental in generating accessibility and promoting territorial cohesion. Not only do these technologies facilitate the everyday communicative interactions, they also support the development and safe functioning of multimodal transport systems,
38 39

Source: Eurostat ICT: Information and Communication Technologies : Telecommunication, Hardware, equipment, software and other services,

34

as they also facilitate mass transportation. In general the Med programme regions have invested much in ICT technologies over the last years, but have still not reached a level that come close the EU25 average. During the period 2003 2005, the average EU 25 investment in IT was around 3% of the GDP annually. Only in France the annual expenditure as % of the GDP was above this level (by 3,3% in 2003 and 2004 and 2,4% in 2005.). The rest of the Med space countries investments in the ICT sector were well below this level, and they were stagnating. In spite of the fact that most of the Med space countries have invested more than the EU average in order to improve their telecommunications systems, investments in information technology infrastructure and use thereof still lacks behind. As an example, and in spite of an increasing trend, the civil society is still not using e-government services offered to a comparable level with the EU25 average. In terms of use of ITC, most of the Med regions are lagging behind40. Only few regions in northern Italy and Spain and in southern France perform at high or average level in comparison to the Central and Northern European regions.
Multimodality/intermodality is though an issue for future development

The Mediterranean regions that are eligible for the Med Programme 2007 2013 programme present a fairly good transport infrastructure, although there is still some catching up to done, in order to meet safety and quality standards equalling that of the northern and central European countries. This could mainly be improved in terms of islands accessibility. In those regions where rail networks do exist, these are relatively modern, but could be up-graded further. The road transport prevails over the rail transportation in all Mediterranean regions. What needs improvement is connecting the maritime, road and rail systems where they do exist, in order to make collective forms of transportation more appealing. The regions of the Mediterranean present a well-developed network of ports, which in any case could be modernized and linked to other transport nodes. Maritime freight transport is important throughout the Mediterranean Sea and there are good potentials further short-seashipping activities. A common feature for all regions of the Med area is a very weakly developed system of multi-modal transportation. Also the short-seashipping system could be developed further, by strengthening links between ports and other transportation nodes AND between ports and their hinterlands. Such a positioning has to go through strengthening and modernising the institutional dimension of transport system, ensuring the development of multi-modal/intermodal transport, including logistics and ports and their upgrading along side the active promotion and adoption of safety measures.

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e) Polycentric and integrated development in the Med programme area Mediterranean cities and territorial development Cities are very important nodes for socioeconomic development. These nodes generate a large share of the GDP of a nation. In the EU context the Mediterranean cities, however, do not generate a s much activities as they possibly could. Apart from a small group of strong international cities (Barcelona, Lyon, Turin, Milan, Rome, Athens, ), the city network is fragmented and competes with difficulties on international markets. The geographical configuration of the Med area doesnt facilitate transnational territorial cooperation. The settlement structure in the eligible regions of the Med space programme, present a very varied picture. Very large urban areas that are functioning as magnets for further developments (often
40

Source : ESPON project 1.2.3. Identification of Spatially Relevant Aspects of the Information Society, pg. 14 ff., May 2006

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characterized as urban sprawl and urbanization of the coastal zones) exist along side areas that are characterized by the existence of very many but also small settlements. Cities could however play a stronger role in the setting up of transnational management, governance or development strategies in relation with rural areas. The very large cities in the Med space region are the homes of most of the population of the respective regions. As an example, 72% of the Greek population lives in Athens, Thessalonica, Piraeus and Patras. The situation can be even more accurate in islands as in Malta which presents the highest population density in Europe with 1280 inhabitants per sq km (92% of urban population). The most characteristic element though is that mainly the Northern parts of the eligible area of the Med space programme, namely Slovenia and Northern Italy, can be characterized by the existence of a polycentric system of urban development, whereas in the areas further away from Central Europe, the urban development can be characterized by the existence of large urban areas that function as magnets for development, in a drop wise and often un-controlled way. Dynamic cities and urban regions are recognized as vital assets in regional and economic development. In this respect it is necessary to take into account the linkages between cities and their hinterland, meaning the functional links between the urban core and the area around it, which is economically connected with the centre41. Differing in size and functions the functional urban areas of the Med space stand weaker in relation to Central and Northern Europe. However, there are several areas that possess potential to further the development of a polycentric urban system. Amongst these areas are, for example, Montpellier and Marseille in France, Athens in Greece, Barcelona in Spain and Rome and Naples in Italy.

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ESPON ATLAS 2005

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Mediterranean cities and cultural identity In the year 2000 the population density in the coastal areas of the Mediterranean was 128 persons pr. Km2. This figure is foreseen to reach 156 in 2025. Most of the urban areas around the Mediterranean coast could be called the pearls around the Sea. The cultural heritage of the Mediterranean territories is invaluable to the world. Tradition, history and culture are all very powerful common denominators and can provide an important strand of economic development for the future. The cultural heritage of the Mediterranean Sea is to be found indeed in the urban historic centres. However, the increasing population in the coastal zones and the demographic growth in urban centres are leading to degradation of the quality of urban life (traffic congestion and urban pollution problems), difficulties in provision of access and services, increasing pressures on the environment, on agricultural areas and forests and particularly on the coastal environment. Good examples for illustrating such problems are the Marbella Malaga region in Spain, the French Riviera or Halkidiki in Greece as well as a significant part of the Southern Italian coasts. In this context, it is necessary to improve the management of the urban development and the overdevelopment of coastal zones with the setting up of cooperation strategies not only taking into account functional development of the urbanized territories, but also considering the cultural heritage as an important strand of the economic development.

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SWOT analysis of the Med programme area

Society and Economy

Strengths: Some large and competitive international urban poles An international gateway/crossroads for maritime trade A strong tourism economic sector Many natural and cultural resources Skilled labour force available Young people with a at high education level Weaknesses: Peripheral location within Europe Strong regional disparities International competition for labour-intensive industry Regional GDP below the EU average Weakness of intermodality/transport system compared to Northern Europ e Weakness of ports activities compared to Northern Europe Productivity of the work force bellow the EU average Opportunities: Cultural and natural resources that are factors of economic innovation and attractiveness Increased demand for alternative/thematic forms of tourism Integration of immigrant people in the economy Improved relations between different areas and different regions in Southern Europe Very small sizes of the businesses Threats: Stagnation in traditional industrial and tourist activities Persistent position in a low added value economy Dynamic entrance of new competitive markets Ageing population and burdening of the social security system

Innovation
Strengths: Weaknesses: Some regions amongst the top regions in Europe Lack of IT services in terms of Poor level of use of innovative technologies Research and Development Small endowments to universities and Some regions feature balanced levels of ITC Research Centres compared to the EU infrastructures in comparison to the EU average average levels Insufficient links between businesses and Med regions business society using eresearch government at same level than EU average Low public and private investment in R&TD and low number of patents Small share of high tech products produced and Opportunities: Threats: Lack of absorption capacities of funds and Regions performing well in terms of attracting grants targeting new technologies new investments could behave as locomotives for Loss of markets because of lack of innovation neighbouring regions capacities Continuous technological development of digital Increase in the out flux of scientists of high level

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Environment
Strengths: Mediterranean space hosting significant natural resources (biodiversity, landscapes) Existence of cooperation in the domain of restoring regions and rural areas, protection and upgrading of the environment Local demand of provision of quality services and increase of awareness concerning natural resources and heritage Opportunities: Development of measures for monitoring and protecting the environment High potential for use of renewable energies Weaknesses: Degradation of fragile zones (reserves, small islands, coasts, natural areas) Pollution of air and water resources due to concentration of population in urban areas Intensified use of land and wrong use of natural resources Scarce water resources Weak energy efficiency in comparison with the EU average Threats: Pollution of environment due to increased demand in tourism, fertilizers and urban waste Insufficient instruments for monitoring land use (new constructions particularly in coastal zones) High risk of natural disasters (floods, draught) High risk of Maritime incidents due to increasing volumes of fluid and solid goods being transported through the Mediterranean

Accessibility
Strengths: Fairly good road infrastructure Important network of port cities with adequate facilities for goods and passenger handling Strategic positioning for trade between East and West, Europe and Africa (Gibraltar, Suez, Black Sea access) Satisfactory airport infrastructure Weaknesses: Geographic splintering and isolation of many areas (islands, peninsulas, rural areas, mountains) Weak connections between coasts and inland Prevalence of road over rail and sea transport. Road congestions in border points Lack of coordinated endo-mediterranean communications system Weak density of rail network Delays in creation of inter-modality and in restructuring of operators Weak development of coastal navigation and Opportunities: Positioning of the Mediterranean regions and islands as nodes for tourism and trade on the Asian route Promotion of intermodal transport (logistics centres) Promotion of multimodal transport systems Development of Rail where already existing (high speed) Threats: Competition from Northern European ports, airports Loss of markets because of a lack of accessibility for maritime transports Accentuated isolation of some areas due to a lack of accessibility routes

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Sustainable urban development

Strengths: Reinforcement of the metropolitan centres and port cities Existing networks of small and medium cities and rural regions Dynamic urban agglomerations hosting functions of modern services International Metropolitan areas and urban areas that can act as centres for future development Opportunities: Enhancement of the competitiveness of the spatial system via promotion of urban-rural relations Improvement of economic and territorial development through partnerships and development of common strategies Possibility of sharing high level functions in strategic sectors Weaknesses: Lack of integrated territorial development strategies between major cities and their hinterland Uncontrolled urban development particularly in coastal zones Non-satisfactory urban infrastructures / Technologies in some regions Important urban areas weakened by badly consolidated metropolitan Threats: Decrease of available funds for equipment and infrastructure/urban technologies Increased competition from strong urban areas in Northern and central Europe Failure to display the objective of polycentric urban development

Situation and development perspectives of the Med area according to the SWOT analysis

The Mediterranean area has some strong international development poles (Barcelona, Valencia, Marseille, Lyon, Milan, Roma, Naples, Turin, Athens) which represent an important basis for transnational development. The presence of the Mediterranean Sea, a large network of ports, and transnational connections with Africa and Asia constitute a traditional and strong mean of exchanges and economic growth. The transnational development strategies for the next years can take benefit of these advantages to promote innovation and competitiveness, to improve the position of the Mediterranean regions as gateways for the European economy and to generate territorial economic dynamism with hinterlands and more peripheral areas. In this context, traditional economic sectors like tourism or agribusiness, innovative sectors of the new economy, numerous dynamic SMEs, a very rich natural and cultural environment as well as existing city networks represent an opportunity to improve economic activities and territorial cohesion. However, the Mediterranean area is showing strong economic and territorial discrepancies with lower productivity and competitiveness in comparison with the EU average. The lack of investments in R&D, the insufficient cooperation between SMEs and with research institutions dont facilitate the development of backward regions and the competitiveness on international market. On the other hand, the potential represented by the natural and cultural heritage is threatened by economic activities and urban development in numerous Mediterranean regions. For the years to come, the challenge consists in supporting existing innovation potential, modernising traditional activities by improving partnerships between economic operators, research institutions, and public authorities (local, regional and national). These objectives are closely related to sustainable development principles which represent a strong social and economic challenge throughout the Med area.
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I.3. Strategy of the Med programme

The Med programme allows carrying out transnational actions taking into account Community Strategic Guidelines on cohesion, Member States National strategic reference frameworks, specificities, needs and specific potentialities of the Med space as well as the results of the ex-ante evaluation. These elements, as well as the diagnosis, the SWOT analysis and the ex-ante evaluation, represent the basis of the strategy of the programme. The identification of the Mediterranean space related issues allows to define programme objectives through a dynamic methodology. This methodology traces the logical framework of the programme and represents the starting point for the elaboration of its structure. This should be consistent with the objectives and take into account specific issues of the Mediterranean space. a) General objectives of the Med programme Main orientation of Lisbon and Gothenburg Agendas as well as the conclusion of the diagnosis and of the SWOT analysis lead to the following general objectives for the Med programme: to make the whole Med space a territory able to match international concurrence in order to ensure growth and employment for the next generations. Support territorial cohesion and actively intervene in favour of environmental protection in a logic of sustainable development. These various issues cannot be tackled efficiently, neither at the regional nor at national scale: they require a significant effort in terms of transnational coordination and consultation. b) Definition of Axes and objectives Following the definition of the general objectives of the Med programme and according to the orientation given in the EU regulations, four priority axes have been identified for the Med programme. PRIORITY AXIS I : Strengthening innovation capacities According to the general objective of the Med programme, to the revised Lisbon strategy and to the Community Strategic Guidelines, economic growth and employment are key objectives and should be supported by encouraging entrepreneurship, innovation, research and the knowledge economy. In the Med area, these fields of action are even more important, since Southern Europe was hit by globalisation later than Northern Europe and is scarcely prepared to face the consequences of global competition and 30

the restructuring of economic sectors. A significant effort must be made in this field so as to avoid a widening of existing gap between the Med space and north European regions on which most of the investment related to innovation and research is concentrated. In this context, the first priority axis of the Med programme aims at strengthening innovation capacities, taking the specific situation of the Med space into account : the area is home to a high number of dynamic and creative SMEs that do not have the critical mass required to enhance their growth potential. Strengthening innovation capacity first requires a stimulation and a better dissemination of innovative technologies and know-how at the regional, national and transnational scale. This objective implies a strengthening of organisations that can support businesses, improved cooperation

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