Cross-border Employment Initiative Bulgaria – Greece
1.1 Background
The area for cross-border co-operation covers 40.202 km2 (16.6 % of the whole territory of Bulgaria and 16.5% of the territory of Greece) and has a population of 2,836,976 (16.9% of Greek population and 12.1% of Bulgarian population. On the Greek side it includes 2 administrative units on NUTS II level (Regions) and 7 units on NUTS III level (Prefectures). On the Bulgarian side it includes 2 units on NUTS II level (planning regions), 4 units on NUTS III level (districts) and 42 units on NUTS IV level (municipalities). The areas on the both sides of the border belong to the less developed areas of both countries. The eligible area covers the entire frontier between Greece and Bulgaria. The mountainous region of Rhodopi constitutes the natural border between the two countries. The degree of interregional and cross border cooperation, both due to the geomorphology as also due to the historical socio-economic development of the two regions, was low, and essentially only started to develop in the mid 1990’s. Significant impetus to cross border cooperation was given by the Community initiative INTERREG I (1989-1993), despite the relatively small amount of funds that were allocated. Since the mid 1990’s and through the INTERREG II Community Initiative (1994-1999), the need for cross border cooperation is established and large projects are promoted as essential prerequisites for the strengthening of economic cooperation between the two countries, focusing on the border areas. In the last years the regional disparities within the country are quite evident. The regional GDP is unevenly distributed. In the year 2003 60% of the GDP is created in the Southwest and South central regions. The inter-country discrepancies though are additionally intensified by the cross-border differences. The main characteristics of the cross-border region are as follows:
- Clear differentiation in living standards and the economic structure of the region; The contrast is more expressed on the Bulgarian side;
- Similar age structure of the population in the border region – the population is within the borders 16-65 years i.e. active labour force;
- Different level of employment in the border region, the unemployment rate is higher on the Bulgarian side. According to the statistical data of the Employment agency for 2004, the unemployment rate for the cross-border regions of Blagoevgrad, Kardjali, Smolyan and Haskovo is respectively 9.11%, 13.86%, 18.75% and 14.38%. The unemployed under 29 years as % of total unemployed are the following: Blagoevgrad- 20.9%, Kardjalili - 22.1%, Smolyan - 20.7% and Haskovo - 27.2%. The long-term unemployment is even higher: Blagoevgrad - 43.5%, Kardjali - 57.4%, Smolyan - 58.0% and Haskovo - 49.6%.
- Availability of research institutes and universities with high level of human potential especially on the Greek side;
- Shortage of highly qualified personnel in the border companies;
The project consists of provision of grants for creation of new employment opportunities in the targeted regions on the Bulgarian side.
The main objective of the grant scheme is to provide resources for creation of new jobs, improvement of professional qualification level of the labor force, encouragement of entrepreneurship, building partnership between people and institutions from Bulgaria and Greece, improvement of living environment in the targeted regions.
As a result of the implementation of the Grant Scheme the following problems of the cross-border region are to be addressed:
- Significant disparities in the economic development within the border areas;
- High level of unemployment within the border region;
Overcoming of the above mentioned problems will contribute to the reaching of the following effects in long term perspective:
- Fostering social and economic cohesion within the border area;
- Adoption of European standards in the field of employment services;
- Improving mobility and adaptability of the labour force within the border region;
- Dissemination and implementation of good practices for provision of employment services;
- Collaboration between various institutions in the border area (especially those concerned with employment issues);
Main beneficiaries under this Grant Scheme are:
- Employed and unemployed from the border region;
- Existing and start-up micro and small companies operating in the border region.
The institutional project framework is:
- Ministry of Regional Development and Public Works (MRDPW) is the Implementing Agency for this project through its “Phare Implementing Agency” Directorate. The Programme Authorizing Officer (PAO) will be responsible for the sound administrative and financial management of the project including tendering, contracting, administration, accounting, payment and reporting procedures and monitoring of the project implementation. It is further referred to as the Contracting Authority.
- Ministry of Labour and Social Policy (MLSP), hereinafter referred to as the PIU, is responsible for the technical implementation of the project. The Senior Project Officer (SPO) manages the PIU and is in charge of the technical project Implementation.
- Regional Structures of the MLSP (acting as the PIU) – Regional Employment Services (RES) and Labour Offices (LOs) will play an active role in promoting the project activities and in its technical implementation in the selected border regions.
1.2 Objectives
1.2.1. Overall objectives:
The overall objectives of the project are:
- Creation of new employment opportunities in the cross-border region;
- Exchange of best practices in the field of labour market policy and services;
The objectives of the Grant Scheme are:
- Provision of investment resources for creation of new jobs;
- Improvement of professional qualification of the labour force;
- Encouragement of entrepreneurship and joint actions between Bulgarian and Greek entrepreneurs;
- Building partnership between people, institutions, and businesses from Bulgaria and Greece;
- Improvement of living environment in the targeted regions.
The project will also contribute to the achievement of the following objectives laid down in the NDP:
- Associations for employment and structural development;
- Workforce’s skills upgrading through relevant vocational guidance and training.
In addition, the project is consistent with the priorities defined in the Joint programming document Bulgaria-Greece: Priority axis 2: Economic Development and Employment, Measure 2.2: Human Resources and promotion of employment
1.2.2 Specific objectives:
The specific objective of the Grant Scheme is to encourage joint activities in Bulgaria and Greece aimed at employment creation through:
- Creation of new employment opportunities in the cross-border region;
- Creation of a single regional labour market;
- Exchange of best practices in the field of labour market policy and services;
- Development of joint programs for training, retraining and provision of employment services;
- Promoting effective collaboration between the institutions on the labour market;
- Joint actions to foster economic development in the region.
1.2.3 Priority issues:
The Grant Scheme will provide grants in the following priority areas:
- Training and retraining
- Joint community employment initiatives
- Provision of business consultancy services
- Grants for micro and small entrepreneurs