Europe's cities and the URBAN community initiative

Urban areas are important strategic locations for pursuing shared European goals such as promoting economic competitiveness, environmental sustainability, social inclusion, and enhancing local culture and identity. Three challenges in particular stand out:

* Reinforcing the competitiveness of Europe's town and cities. Building on successes, removing obstacles to entrepreneurship, new technology and employment.

* Tackling social exclusion, improving access to jobs and training for all, including immigrants and those from ethnic minorities. In addition, building the capacity of local communities to help themselves.

* Physical and environmental regeneration, ensuring sustainability and improving the attractiveness of towns and cities. Building on the cultural and architectural heritage of urban areas.

Europe's cities benefit in various ways from European Cohesion Policy:

* Objective 1 helps regions who are lagging in development to catch up. Spending accounts for two thirds of the Structural funds or some 135 billion Euro. The focus is on providing Objective 1 regions with the basic infrastructure they lack - in terms of transport, telecommunications, training, education, health, water supply, energy and waste treatment - and encouraging investment in business and economic activity. Cities act as motors of growth in such regions and the structural funds seek to build on this.

* Objective 2 funding amounts to over 22 billion Euro and supports economic and social conversion in areas facing structural difficulties, including industrial restructuring and urban areas in difficulty. The major problem for such areas is not lack of infrastructure, but the decline in traditional economic activities. This requires the development of alternatives. Key measures include the promotion of enterprise and retraining.

* Objective 3 (24 billion Euro) focuses on modernising training systems and promoting employment. In addition, the EQUAL Community Initiative aims to tackle social exclusion, which is particularly relevant to deprived urban areas.

The URBAN Community Initiative makes a specific contribution within this framework. The current round covers some 2.2 million people across Europe living in 70 urban neighbourhoods in crisis. Some 730 million Euro is devoted to tackling the main problems these areas face.

Key features include:

* An integrated approach to issues which elsewhere are often tackled in isolation: reinforcing competitiveness; tackling social exclusion; and physical and environmental regeneration.

* A high profile for EU priorities such as the integration of immigrant communities, sustainable development, equal opportunities and the information society.

* Programmes are run at the local level, close to people and their problems. Local authorities are involved in the running of two thirds of the programmes. Urban areas are being enabled to help themselves.

* Close involvement of local communities, who participated in the drafting of over 80% of the programmes. They are also well represented on the monitoring committees. The participation of the local community is a precondition for programme effectiveness, not least when it comes to tackling issues to do with social exclusion or the local environment.

* A built-in learning cycle with extensive tools for analysing and exchanging experience. Within URBAN, the URBACT programme will structure the identification of good practices and the exchange of experience between some 200 EU cities.

This article specifically provides information on reinforcing competitiveness within Europe's urban areas and on the work of the URBAN Community Initiative. It is based on the EU Document 'Partnership with the Cities - The URBAN Community Initiative' published by the European Commission (2003). This document also focusses on information concerning:

* Challenges facing urban areas, drawing on information sources such as the Urban Audit (a comprehensive survey of many different socioeconomic indicators from a sample of towns and cities from across the EU).

* The delivery system for European URBAN programmes (the "URBAN Method"). Project examples demonstrate the commitment and involvement of local authorities and the local community. There is also information on the European Network for Exchange of Experience ("URBACT"), which offers cities an important opportunity to study good practices from across the EU.

* Concrete examples of the contribution URBAN is making to social inclusion, and physical and environmental regeneration, including projects illustrating the value and nature of the integrated approach.

Reinforcing competitiveness

The conclusions of the Lisbon summit in March 2000 laid down the goal of the EU being the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth with more and better jobs and progressing towards economic and social cohesion by 2010. European cities are the key to reaching this goal, since they act as the motors for regional growth, innovation and employment creation.

To achieve balanced territorial development within the EU, cities of all sizes must become or remain attractive both to residents and businesses. This is particularly important for small and medium sized towns in isolated or remote locations, since their health is often crucial for the well-being of their regions. Their capacity to innovate and create new opportunities is a prerequisite to ensuring these regions do not lose out in global competition. Furthermore, strong regional economies, driven by competitive cities, are better able to afford social inclusion and to maintain and protect the physical and natural environment.

Actions to reinforce competitiveness include the promotion of small and community businesses, entrepreneurship, employment creation, innovation, information technology and the new economy. One particularly interesting area of job creation is the social economy, which might include environmental or cultural activities, or services for the local community. Crime prevention also has an important role to play in making deprived areas more attractive for investment.

Support for high tech start-ups

As part of the URBAN II programme in Bremerhaven, the old 'Imperial Mail' office on the harbour front is being renovated and converted to accommodate small and start-up businesses in the field of telecommunication, information technology, multi-media and entertainment (TIME).

Bremerhaven is a seaport town on the North Sea coast of Germany. The Urban II area is situated north of the city centre and covers an area of 326 ha and a population of almost 23,000. With the decline of the traditional shipbuilding and fish-processing industries, small shops, local service-oriented businesses and sadly, vacant stores have become the dominant features of the local economic landscape. Large parts of the harbour area have turned into industrial wastelands and the rate of unemployment and the poverty level are now well above the city average. In some areas more than 25% of the inhabitants live on welfare. The crime level has also increased, mainly as a result of an increase in drug-related offences.

The Technology Park 'TIME Port' project forms part of the overall programme for the regeneration of the URBAN II area. The project aims to stimulate the development of a sustainable IT sector by supporting small businesses that are rooted in the local community. Project activities include the renovation and conversion of the old 'Imperial Mail' office to create the new TIME Port enterprise centre. When completely occupied, total employment in the TIME Port will be at least 60 people. Its location on the harbour front should also encourage further redevelopment of the area. Cooperation with the nearby polytechnic and other local institutes, will encourage the development of an alternative, future-oriented economic structure that will attract other external IT companies to set up in Bremerhaven.

An innovative feature of the project is the establishment of a 'TIME Port' management which will not only deal with managing the building, but will also be involved in recruitment and training activities, and maintaining contact and cooperation with the local community and the district management regarding the overall development of the area.

Promoting enterprise and community development

The URBAN I programme in Malmo provided support to a foundation assisting start-up businesses and offering education and employment opportunities. The programme also supported the upgrading of outdoor areas and the development of new community facilities.

In all, the programme covered five areas with high concentrations of immigrants, high unemployment and considerable social problems. The total contribution from the European Union was 5.1 million Euro and this attracted a further investment of 6.7 million Euro, creating total resources of 11.8 million.

One of the main URBAN I projects involved the renovation of an industrial building and associated offices in the Facklan street-block, which lies in the centre of the URBAN area in Malmo. The building was renovated between 1997 and 2000 to create the Facklan Development Centre, which now accommodates 67 new businesses. All of these businesses were started with support from a newly created advice bureau. The partnership between KOOP, an association for co-operative entrepreneurship, ALMI, a state owned company that supports economic growth and development and the enterprise and employment agencies in Malmo was an important factor in the success of this advice bureau.

Adjacent to the Facklan quarter, an old school building was also renovated and converted into the "Sofielund Citizen Centre" which now hosts a variety of community-based activities that complement the development of the area.

New opportunities in biotechnology

Luckenwalde, a city of just 22,500 inhabitants, 60 km south of Berlin, is using URBAN II money to make the most of a local biotechnology park, creating new opportunities for employment and economic development.

Since German reunification and the political changes that occurred 11 years ago, Luckenwalde has been undergoing radical changes. The city has experienced a social and economic transformation, resulting in a decline in population, a weak local economy, the abandonment of industrial areas, a lack of investment in the maintenance of buildings, rising unemployment, low average education levels and environmental degradation.

In terms of addressing these issues, one of the most important assets for economic development and the creation of new, future-oriented jobs in the region is the Luckenwalde biotechnology park. An important strategic objective for the further expansion of the biotechnology park is the development of biotechnology-specific vocational training.

Within the framework of the URBAN II programme, which covers the entire city (2,230 ha) the local implementation body has decided to support the establishment of a 3/5 year vocational training course, "Biologielaborant/in". The course will be developed on the basis of a "cooperative model" between training organisations and enterprises. 16 people will participate in each course (including 11 women on the first course) and 21 jobs will be created or sustained (at least 10 jobs for women).

Funding will be given for preparation, planning and the improvement of laboratories and classrooms, as well as for equipment and expendable materials for two training courses. The training within the dual system (theoretical and on-the-job training) will be financed by different sources (Federal State, Land, European Social fund, enterprises) for different projects. This project will strengthen Luckenwalde's position as a centre for biotechnology and will assist in the change to more sustainable industries based on trend-setting technologies. The creation of a future-oriented teaching and vocational training course and the improvement of general vocational training will also influence biotechnology companies considering locating in Luckenwalde.

Renovation of a decaying landmark into a successful media centre

This urban pilot project in Helsinki involved the conversion of the historic Lasipalatsi building into a new centre of economic activity, combining information and communications technology with support for the arts and culture.

The Lasipalatsi project is the masterpiece of the Helsinki Urban Pilot Project (UPP). It provides an excellent example of how physical regeneration can be combined with the introduction of a range of new economic activities.

Built in 1936 on the site of a former Russian barracks as a landmark of modern architecture, the Lasipalatsi had lapsed over time into near dereliction. Under the urban pilot project the building was skillfully renovated to become a film and media centre. The renovation, which was preceded by an extensive study of the original plans, materials and method of construction, attempted to preserve as many of the original features of the building as possible.

The centre now houses more than 20 companies, which between them employ approximately 200 staff, and has more than 100,000 visitors per month. In summer, Lasipalatsi is one of the venues for the Helsinki Festival which attracts more than 200,000 visitors to its theatre, musical and dance performances.

The centre also offers free access to modern information technology and cultural services, including 20 internet workstations, equipment and communication facilities for video and media producers, a public library and bookshop, two art cinemas and other media facilities. There are web kiosks and a 'home-page-machine' which helps visitors to create their own homepage. The rehabilitation of public space around the centre has also created a meeting place for those interested in cultural and media activities. The Lasipalatsi Centre makes information technology accessible to a wider audience, especially those who, due to age or social status, feel remote and excluded from its benefits. The project has created a focal point for urban life, providing inhabitants and disadvantaged communities with access to the modern information and media society.

New activities at the Tsalapata factory

The restoration and conversion of the Tsalapata brick and tile factory to create space for SMEs from the art and craft sector was the demonstration project of the Volos URBAN I programme in Greece.

A middle-sized industrial city, Volos has experienced a decline in industrial activity, accompanied by a marked increase in unemployment and the desertion of industrial buildings in some urban districts.

The URBAN I programme, which covered an area with a population of 8,100 has made a contribution towards reversing this situation. The demonstration project of the programme was Tsalapata factory, a former industrial site which was recovered and converted into a centre for traditional crafts and industry.

Established in 1925 and operational until 1975, the factory grounds covered 2.3 hectares, with 7,600 m^sup 2^ of buildings. Today, more than 20 shops and small enterprises producing art and crafts including ceramics, metal jewellery, clothing, photography, mosaics, painting and decoration have been established on the former factory site.

An industrial archaeology museum with a thematic library has also been developed, as has an exhibition area, galleries and a theatre, all of which provide excellent venues for cultural activities and meetings. The outdoor space has also been redeveloped to create additional recreation and leisure facilities. Targeting a pre-existing market, these new enterprises have strengthened the local economy and created about 80 new jobs.

This article is based on the 'Reinforcing Competitiveness' section of the EU Document 'Partnership with the Cities The URBAN Community Initiative' published by the European Commission in 2003 - ISBN: 92-894-5106-8.