An Action Plan based on ambitions and requirements
In a scenario characterised by legal and financial uncertainties, the Outermost Regions
envisage a future in which they can ensure growth and develop stable jobs in today's highly
challenged socio-economic environment.
This exercise provides continuity to their respective reflections which resulted in the adoption
of Memorandums in 2009 and 2010, as well as in different contributions to the European
Commission's public consultations (territorial cohesion, Europe 2020 Strategy, transport, State
assistance, research and innovation, internal market, maritime policy, etc.)
The joint Memorandum of May 2010 adopted an innovative approach and invited the
European Commission to find a triple balance with regard to outermost regions, based on the
strategy that the Commission developed in 2004 in order to reduce deficits in terms of
accessibility, improved competitiveness and regional integration:
• A balance between potential and structural constraints;
• A balance between the internal and external aspects of European policies so as to
avoid inconsistencies when they are implemented;
• A balance between adapting European common law policies and their translation into
specific sectoral instruments.
The Memorandum urges that all EU policies applicable to ORs include a logic of territorial
coherence going beyond the new objective of ‘territorial cohesion’ as established by the Lisbon
Treaty. In this manner, the ORs can constitute truly pertinent spaces for experimentation to
ensure coherent and integrated implementation of EU policies at a territorial level, based on
multiple levels of governance (European, national and regional).
The principles of equal opportunities, coherence, attributing value to potential and
partnerships enshrined in the ‘Cayenne Principles’ have, since 1999, served as the foundation for the development strategy for ORs. These principles were further augmented in 2010 by
two new guidelines, viz. the principles of proportionality and the reality of the Outermost
Regions.
While the European Commission has, over the course of time, demonstrated its commitment
to the principles of valuing the potential of ORs and partnerships by means of communications
adopted in 2004 and in 2008, it is today necessary to take further steps to implement the
other principles: equal opportunities, coherence, proportionality and reality.
Various aspects are relevant to guide the European framework to be established for 2014-
2020, encompassing all European policies in a transversal manner, it being necessary to:
• Consider the status of an Outermost Region as specified in Article 349 of the TFEU,
which per se justifies an adapted implementation, including special rules, of the
European Union's policies and actions with regard to the ORs;
• Respect that the principles of specific realities and equal opportunities for citizens is of
primordial importance regardless of their place of residence, especially with regard to
access to network infrastructure and services (services of general economic interest).
It is impossible, for example, to explain different treatment for residents of ORs in
terms of territorial or digital continuity. Services of general economic interest are an
example of persistent discrimination, even in the most strategic sectors such as digital
technologies, transport, water and energy;
• Apply the principles of coherence and proportionality: successive reviews of State
assistance have never incorporated the requirement for coherence between the
different purposes of the assistance necessary for the potential beneficiaries. Similarly,
regulations on environmental matters, such as greenhouse gas emissions in the air
transport sector require special attention in the context of the situation of the
Outermost Regions so as to avoid a respective disproportionate impact.
In this context, contrary to the guideline emphasised in the Communication from the European
Commission of 20 June 2012, structural funds per se are unable to reduce all the territorial
disparities, let alone respond to the funding requirements involved in the common goal of a
new strategy for Outermost Regions.
The cohesion policy requires extremely close coordination with other policies which have a
significant territorial impact, so as to promote the efficiency and rationalisation of the
programmes to be established.This Action Plan goes far beyond this requirement, delineating a planning strategy which can
serve to ensure an inherent territorial vitality. However, to achieve the best results, this
planning strategy is inextricably associated with a strategy of experimentation:
experimentation means adapting the framework to the reality of Outermost Regions, it means
inventing new formulae which enable ORs to create their respective economic model for the
future in a pragmatic manner. This strong ambition expressed at a regional level must now
correspond to a true European ambition for Outermost Regions.This is the spirit in which this Action Plan has been conceived: a spirit of activity and
responsibility, the only path capable of guaranteeing smart, sustainable and inclusive
economic development.
1. Europe 2020, axes of the revised strategy and strategic priorities
The Communication from the European Commission of 20 June 2012 stated
that the framework of the three axes of the partnership with the Outermost
Regions must be ‘updated and adapted in the light of Europe 2020’ and that
‘this means greater emphasis on creating jobs and growth, and a
comprehensive approach to climate action’.
Therefore, this Action Plan combines the five axes of the 2012 Communication,
duly framed by the Europe 2020 Strategy and developed in conjunction with the
strategic priorities of the Autonomous Region of the Azores.
2. Smart growth: A dynamic and diversified export-oriented economic
base
2.1. Reinforcing competitiveness
Reinforcing competitiveness, namely by modernising and diversifying the
economy, investment and innovation in sectors with high potential for growth
and/or high added value (traditional and emerging) and supporting the
development of the private sector (especially SMEs and micro companies) as
well as innovation for new products and services.
2.1.1. Agricultural chains, a fundamental pillar of the regional economy
2.1.1.1. Milk and meat, high added value
Agricultural activity in the Autonomous Region of the Azores is a key sector of
the economy and is a decisive factor for generating income for the local
population.
Over the course of recent years this sector has shown relative stability in terms
of production, due to investment in modernisation and the restructuring of the
production chain.
Keeping in mind the future support framework, as well as the results of the
intervention under existing programmes, the following have been identified as
priority areas in this context:
− Transfer of knowledge and information actions;
− Consultancy services, agricultural management services and substitution
services for farms;
− Installation of young farmers;
− Investment and development for agricultural farms, forestry estates and
the processing sector;
− Investments in infrastructure to support agricultural and forestry activities;
− Sustainable management of agricultural and forestry spaces and
measures to support living standards in rural areas;
− Investment measures to diversify the rural economy.
2.1.1.2. Agricultural diversification and the forestry sector in particular
Despite the limitations at the level of production and marketing, the activities of
diverse production chains in the Azores (cereals, horticulture, fruticulture,
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floriculture and ornamental plants, vineyards and industrial crops) have gained
importance in the Region’s production structure.
This diversification is the result of a recognition of the need for greater food
sufficiency and the existence of potential and competitive conditions to develop
alternative production options to cattle raising.
However, these positive signs do not attenuate the continued existence of
important weaknesses in the productive structure (with numerous farms
operating in conditions which are not particularly dynamic in technical and
economic terms) as well as in areas of productive, technological and market
innovation for agricultural and cattle raising farms and processing units.
It is therefore necessary to continue to reinforce the emphasis on diversification,
so as to inhibit imports, by revitalising not just traditional production but also by
developing sectors in which the Region is lagging.
In this context the following traditional production areas have been identified as
opportunities within the scope of the internal (inter-island) market:
− Corn and cereals – from the viewpoint of the food sufficiency of diverse
islands and based on the transformation of pasture areas used for cattle
farming;
− Horticulture – using the conditions and periods of a temperate climate or
for artificial crops, including hydroponics;
− Fruticulture – reviving traditions of crops/orchards of peach, fig, apple,
pear and citrus trees.
2.1.2. Fisheries and aquaculture: an important traditional specialised
sector
2.1.2.1. The fisheries sector
Although the Azores archipelago accounts for the largest sub-area of Portugal’s
Exclusive Economic Zone, encompassing an expanse of almost 1 million Km2, it
has a relative lack of biomass and is biologically fragile, especially in terms of
demersal and deep water species, since it does not have a continental shelf
and has high average depths. Only 2.2% of this total area can potentially be
used up to a depth of 1 000 metres.
Fishing in the Region, with average values of fish auctions being about 13 000
to 15 000 tonnes/year (a volume which relies heavily on tuna), provides
employment for around 500 fishermen, haulers and support staff on land.