Preparing for the future – Maintaining public services for challenges ahead

Riga, 20th November 2008

The European Structural Funds

in Saxony-Anhalt

Saxony-Anhalt - facts and figures

Surface: 20.477 km²

Population : 2.402 Mio. inhabitants(October 2008)

Saxony-Anhalt‘s Economy

GDP (2007): 51 Mrd. €

Economic growth (2007): +4,6 %

Growth of industrial production (2007): +13,7 %

GDP per capita (active persons): 50.767 €

Labour Market

Active population: 1.011.500

Unemployed (October 2008): 153.655

Unemployment rate (October 2008): 12,3%

(national average: 7,2%)

(average „Länder“ of the former GDR: 11,8%)

Administrative Reform in 200711 districts and 3 major cities

Capital: Magdeburg

Major Cities:(31.12.2007)

Halle (234.295 inhab.)Magdeburg (230.140 inhab.)Dessau-Roßlau (89.234 inhab.)

Administration Structuring of Saxony-Anhalt

European Structural Funds in 2007-2013 in Saxony-Anhalt

ERDF

ESF

EAFRD

EFF

Total: 3.396,4 Mio. €

European Structural Funds in 2007-2013 in Saxony-Anhalt

General strategy for the application of EU structural funds developed - with main objectives “growth“ and “employment“

Key aspects of activity: research/development/innovation (668,8 Mio. €); education (701,5 Mio. €); promotion of investments/ reduction of obstacles for public finance (1.187,9 Mio. €)

Saxony-Anhalt invests in its industrial economy, infrastructure, environment, labour market, education

EU cross-sectional objectives like sustainability, equal opportunities and the urban dimension are taken into account

Chances for municipalities in Saxony-Anhalt

Structural Funds help creating new opportunities for “growth“ and “employment“even in sparsely populated regions in Saxony-Anhalt by

► Strengthening the competitiveness of the industrial economy (above allSME‘s)

i.e. - glaziery „Euroglass“, municipality of Sülzetal, Bördekreis

- vaccine manufactory, municipality of Dessau-Rosslau

- cellulose manufactory, municipality of Arneburg

► Supporting projects of innovative solutions in fields of renewable energies

i.e. Biogas plant of 500 KW at Klein Schwechten (biomass and agricultural waste products to be converted into biogas used for electricity generation)

► Supporting the creation of a modern traffic infrastructure

i.e. 430 km of new roads, bridgeworks and by-passes created (during 2000-2006)

Chances for municipalities in Saxony-Anhalt

► Strengthening locations for scientific research and innovative solutions

i.e. - Fraunhofer Center of Silicon Photovoltaics at Halle (45 Mio. € financed by ERDF)

- Bio-Nano-Zentrum at Halle (17 Mio. € financed by ERDF)

► Creating a business-friendly infrastructure regarding the urban dimension of regional policy (monument restoration as an important soft locational factor)

i.e. - „Alte Kanzlei“ in Tangermünde

- „Ständehaus“ in Merseburg

Coupling EU-funds with own ressources (Development Bank Saxony-Anhalt)

Challenges for municipalities in Saxony-Anhalt

► Dealing with manifold policy recommendations and tasks resting in local responsability (i.e. Creating mid- and longterm plans of urban renovation, improving systems of traffic infrastructure, enhancing synergetic effects between environmental protection and innovation, assuring existence of cultural institutions)

► Securing urban enhancement

► Securing urban development and public services under the conditions of decline in population (demographic change)

► Securing financial and social cohesion in sparsely populated regions under the conditions of the enlargement of the European Union (managing the social process of administrative reform)

► Need for ongoing dialogue between regions and municipalities to realise the principle of subsidiary, which is one of the main reasons for continous debates on administrative and functional reforms in Saxony-Ánhalt

Preparing for the future – Maintaining public services for challenges ahead

Riga, 20th November 2008

Rainer RobraMinister of European Affairs and

Head of State Chancellery of Saxony-Anhalt

Thank you very much for your attention