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Functional regions: Which regions and what
functions?
By Lewis DijkstraDeputy Head of UnitEconomic and Quantitative Analysis Unit
3
Metro regions: Why and how?
• A better understanding of the role and performance of large agglomerations in the EU
• A basis for comparisons with metropolitan regions outside the EU
• Based on the Urban Audit’s larger urban zone and a sensitivity analysis
• Agreed with the OECD• Based on a joint analysis of Eurostat,
REGIO and OECD
4
Growth is more concentrated in less developed Member States
Change in GDP per head in metros, 2000-2007
SI
IT
ES
FR BE DE
UK DK
FISE
AT
NL
IE
CZ
EE
SK
HU
LT
LV
PL
RO
BG
GR
PT
-30
-25
-20
-15
-10
-5
0
5
10
15
20
25
30
Cha
nge
in G
DP/
head
rel
ativ
e to
the
nati
onal
leve
l in
inde
x po
ints
Capital Metro
Second Tier Metro
Smaller Metro
non-metro regions combined
63
-32
EU countries ranked by GDP per head in PPS, 2007
5
Capital metros play an bigger role in less developed Member States GDP per head in metros compared to national level, 2007
IT ESFR
BE
DE UK
FI
DK
AT
SE
NL
IE
BG
RO
PL
LV
LT
HU
SK
EE
PT
MT
CZ
SIGR
0
25
50
75
100
125
150
175
200
225
250
GD
P p
er h
ead
in P
PS
in 2
007
, n
atio
nal=
100
Capital Metro
Second Tier Metro
Smaller Metro
non-metro regions combined
national
EU countries ranked by GDP per head in PPS, 2007
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Metro region conclusions• The difference in GDP per head between
the capital metro and the rest of a country is likely to shrink in the medium term
• This means that growth is likely to spread to other regions and will become higher in non-metro regions than in metro regions
• Public policies can facilitate this process• OECD has adopted this approach and
applied it to the US, Mexico and Canda• See Regional Focus 1/2009
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Remote regions: Why and how?• Predominantly rural regions cover a wide
variety of situations• New classification creates more
homogeneous groups• The proximity to cities is critical. Cities can
offer access to public services such as higher education and health care, a more diverse economy, a potential market
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Remote rural region conclusions• Remote rural regions are less productive
than non-remote regions• Remote rural regions are more likely to
face population decline• Economic growth favours rural regions
close to cities• Lower access to services such as
universities and hospitals• An analysis in North America finds the
same trends
11
Rural regions: Why and how?
• OECD classification in predominantly urban, intermediate and predominantly rural is contested
• Methodology leads to distortions: – cities in large municipalities become rural – villages in small municipalities become urban
• New approach used a clustering of high density grid cells which avoids distortions
• Is being developed in close cooperation with DG AGRI, Eurostat, JRC and the OECD
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Objective of rural regions
• Create a more comparable definition of rural regions
• Create classification with less extremes i.e. avoid that Member States are entirely urban or rural
• Create a new classification of LAU2 which could be used in surveys in a similar manner as the Labour Force Survey level of urbanisation classification
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Labour Market Area Simulations• Variation in the size and approach to defining
NUTS 3 regions which reduces comparability• Commuting distorts GDP per head at NUTS 3
level• Labour market areas are a better unit of
analysis• Many Member States have defined their own
Labour Market Areas• LAMAS are NUTS 3 groupings based on metro
regions and national labour market areas
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LAMAS next steps
• Analysis of the LAMAS to assess their socio-economic situation and performance
• Eurostat will develop a harmonised labour market area definition which can be applied to the entire EU
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Functional regions and Cohesion Policy• In the current period, functional regions
can be addressed in a variety of ways:– Global Grant – Multi-regional programmes (but not
between RCE and Convergence)– Macro regions– European Grouping for Territorial
Cooperation
• The 5th Cohesion Report will include the proposals for the next period.
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