EU Funding

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2000-2006 Objective 2 Programme

In 1999 Gibraltar was designated as an Objective 2 area for the Programme period 2000-2006.  This represented a continuation of earlier Objective 2 Programmes in 1994-96 and 1997-99.

Gibraltar’s continued eligibility for European Community assistance highlights the problems facing the Territory which originally derived from cutbacks in the UK military presence and the difficulties in diversifying the economy given the unique constraints of size, topography and geography (see Section 2.0 for further information).

According to the Single Programming Document (SPD), the overall aim of the Gibraltar Objective 2 Programme is to

“…maximise the potential for creating wealth and employment in Gibraltar through sustainable development and economic diversification….”

To achieve this aim there are two priorities:

  • Priority 1:  Tourism, heritage, urban regeneration, transport, port SME development and E-Commerce
  • Priority 2:  Technical Assistance

Priority 1 is broken down into four Measures:

  • Measure 1.1:  Tourism, heritage, urban regeneration and nature conservation
  • New visitor attractions
  • Refurbishment and improvements to existing visitor attractions
  • Production of market and information literature and tourism marketing and promotion
  • Measures to protect and enhance the territory’s natural habitat and biodiversity
  • Development of night sightseeing tours
  • Creation of conference and related facilities
  • Floodlighting of historical buildings and churches
  • Schemes designed to restore monuments or buildings of historical importance, particularly those that are listed
  • Investments in upgrading the range and standard of tourist accommodation
  • Management plans and associated studies in relation to world heritage assets
  • Feasibility studies related to any of the above
  • Measure 1.2:  SMEs and E-Commerce
  • Refurbishment, improvement and development of sites for industrial or commercial uses and premises for SMEs including incubator units and associated essential infrastructure such as water, electricity and sewage investments.
  • Creation of a Small Grant Scheme to provide a fast track for accessing grants up to a maximum of £10,000.
  • Measures to enhance the knowledge base of local SMEs through the exploitation of advanced telecommunications.
  • Measures to encourage use and investment in E-Commerce.
  • Waste minimisation and energy conservation schemes for SMEs.
  • Improvements to training and business support infrastructure, including the establishment of specialised Training Centres.
  • Common Services to groups of SMEs.
  • Measures to promote local businesses and products.
  • Business investments and the possibility of accessing trade finance for SMEs and the self-employed.
  • Measures that will facilitate business support development, which may include advising and consultancy services.
  • Provision of childcare facilities to assist prospective women returners and single parents to attend training programmes.
  • The provision of business advice and assistance to encourage women to start up their own business.
  • Feasibility studies related to any of the above.
  • Measure 1.3:  Port and transport
  • Land reclamation within the harbour, for economic afteruse.
  • Dredging of existing berths.
  • Enhancement of the Cruise Ship Terminal.
  • Measures to improve the quality of public transport.
  • Measures to improve touristic transport.
  • Measures to assist disadvantaged persons, such as the physically disabled and parents with young children.
  • Feasibility studies related to any of the above.
  • Measure 1.4:  Environment
  • Eligible costs associated with the construction of a new sewerage plant.
  • Upgrading the facades of buildings in main shopping/tourist areas, which have been the subject of beautification.
  • Measures to encourage environmentally friendly transport.
  • Measures to clear derelict land and buildings and improve the physical environment.
  • Measures to exploit forms of sustainable energy, especially solar energy.
  • Measures to improve the physical environment.
  • Feasibility studies related to any of the above.

In addition to these Programme measures there are four horizontal themes which cut across all activities:

  • Equal opportunities – a commitment across all projects and activities towards ensuring that there are equal opportunities for all, with a particular focus on improving the level of female participation in the workforce.
  • Environment sustainability – to maintain and enhance the environmental assets of Gibraltar and ensure that development occurs in a sustainable manner so as not to compromise the needs of future generations.
  • Information and communications technology (ICT) – to increase the use of ICT amongst businesses and individuals across Gibraltar.
  • Publicity actions – to raise the awareness of businesses and individuals as to the opportunities made available by Objective 2 funding.

The total allocation of the 2000-2006 Objective 2 Programme is some €  20.3 million (£12.5 million).  Of this total, €  8.7 million (£5.4 million) is provided by ERDF, a further €   10.7 million (£6.6 million) by the Government of Gibraltar, and the remaining € 0.9 million (£0.6 million) by the private sector.  The following tables summarises the total allocation current commitment and the certified eligible expenditure under each of the Meaures, broken down by the three different sources.  (Using an exchange rate of £1 = €1.62 which is consistent with the figure used in the SPD).

Total Allocation by Measure (£ million)

Measure ERDF State Privfate Total
1 5.2985 6.4758 0.5556 12.3299
1.1 2.4288 2.9586 0.0000 5.3874
1.2 1.0379 1.2642 0.4321 2.7342
1.3 0.7940 0.9888 0.0000 1.7828
1.4 1.0378 1.2642 0.1235 2.4255
2 0.0988 0.0988 0.0000 0.1976
Total 5.3973 6.5746 0.5556

12.5295

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Last Revised : 14 August 2004