Structural Funds: outermost regions

PURPOSE : to improve the positions of outermost regions which suffer from specific handicaps due to their remote locations with regard to certain structural measures. COMMUNITY MEASURE : Council Regulation 1447/2001/EC amending Regulation 1260/1999 laying down general provisions on the Structural Funds. CONTENT : Regulation 1260/1999/EC provides for the possibility of awarding a contribution from the Funds of a maximum of 85% of the total eligible cost only for the outermost regions of a Member State covered by the Cohesion Fund and for the outlying Greek Islands. The Treaty states, however, that all the outermost regions face the same handicaps which may restrain their development. The Regulation is amended: - this indicates a maximum of 75% of the total eligible cost, and as a general rule, at least 50% of the eligible public expenditure in the case of measures carried out in the regions covered by Objective 1. Where the regions are located in a Member State covered by the Cohesion Fund, the Community contribution may rise to a maximum of 80% and to a maximum of 85% for the outlying Greek islands. - in exceptional circumstances, the maximum contribution of the Funds is fixed at 85% for all the outermost regions, whether of a Member State covered by the Cohesion Fund or not, where this does not involve investments in infrastructure projects generating substantial net revenue or investments in firms. - in the case of investments in small and medium sized firms (SMEs) situated in the outermost regions, assistance from the Funds may amount to upto 50% of the total eligible cost, raised from a limit of 35%.�