Four types of Structural Fund have been introduced over the years, as the process of building Europe has progressed :

• The European Regional Development Fund ( ERDF ) contributes mainly to assisting the regions whose development is lagging behind and those undergoing economic conversion or experiencing structural difficulties
• the European Social Fund ( ESF ) mainly provides assistance under the European employment strategy
• the European Agricultural Guidance and Guarantee Fund ( EAGGF ) Guidance Section helps in both the development and the structural adjustment of rural areas whose development is lagging behind by improving the efficiency of their structures for producing, processing and marketing agricultural and forest products
• the Financial Instrument for Fisheries Guidance ( FIFG ) supports restructuring in the fisheries sector.

DOCUMENTS

• Mission (ppt)
• Objectives (ppt)
• Programmes (ppt)

PRIORITY OBJECTIVES, COMMUNITY INITIATIVES AND INNOVATIVE MEASURES

To improve the effectiveness of structural measures, Regulation (EC) No 1260/1999 reduces the number of Objectives from seven during the previous period (1994-99) down to three for 2000-06:

• Objective 1 promotes the development and structural adjustment of regions whose development is lagging behind, i.e. whose average per capita GDP is less than 75% of the European Union average. This new Objective also covers the most remote regions (the French overseas departments, the Azores, Madeira and the Canary Islands) as well as the areas eligible under the former Objective 6 (areas with low population density) created by the Act of Accession of Austria, Finland and Sweden. As before, two thirds of Structural Fund operations concentrate on Objective 1 and almost 20% of the Union's total population is affected by measures taken under this Objective.
• Objective 2 contributes to the economic and social conversion of regions in structural difficulties other than those eligible for the new Objective 1. It brings together the former Objectives 2 and 5(b) and other areas facing the need for economic diversification. Overall it will cover areas undergoing economic change, declining rural areas, depressed areas dependent on fisheries and urban areas in difficulty. No more than 18% of the Union's population is covered by this Objective.
• Objective 3 gathers together all the measures for human resource development outside the regions eligible for Objective 1. This Objective replaces the former Objectives 3 and 4. It is the reference framework for all the measures taken under the new Title on employment inserted in the EC Treaty by the Treaty of Amsterdam and under the European employment strategy.

Transitional arrangements have been introduced for the regions previously eligible for Objectives 1, 2 or 5(b) between 1994 and 1999 but which are no longer eligible for Objectives 1 and 2 in 2000-06. Under these arrangements, decreasing aid is granted to the following regions : East Berlin (Germany), Hainault (Belgium), Cantabria (Spain), Corsica and the districts of Valenciennes, Douai and Avesnes (Portugal), Molise (Italy), Southern and Eastern Ireland, Flevoland (Netherlands), Lisbon and Tagus Valley (Portugal), Northern Ireland and the Highlands and Islands (United Kingdom). This decreasing transitional aid is granted so that financial support from the Structural Funds is not cut off abruptly in the areas concerned. It is also intended to consolidate the progress made as a result of structural assistance during the previous programming period.

The new Regulations also reduce the number of Community Initiatives from 13 during 1994-99 to four for 2000-06. The new Initiatives are :

• Interreg III , which aims to stimulate cross-border, transnational and inter-regional cooperation
• Leader+ , which promotes rural development
• Equal , which provides for the development of new ways of combating all forms of discrimination and inequality in access to the labour market
• Urban II , which encourages the economic and social regeneration of declining towns, cities and suburbs.

The Commission can also support new and little-exploited ideas through innovative measures under the ERDF . The following three working themes have been selected :

• regional economies based on knowledge and technological innovation
• eEurope-regio: the information society and regional development
• regional identity and rural development.