INTERNATIONAL CONFERENCE: Beyond Absorption : The Impact of EU Structural Funds on Greece ( )

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1 INTERNATIONAL CONFERENCE: Beyond Absorption : The Impact of EU Structural Funds on Greece ( ) The contribution of the European Union Structural Funds in the Developmental Strategy of the Region of East Macedonia Thrace Panagiotis D. Koudoumakis 1, George N. Botzoris 2 1 Intermediate Managing Authority of Region of East Macedonia - Thrace, Irodotou 28, Komotini, Greece, pkoudoum@civil.duth.gr 2 Democritus Thrace University, Department of Civil Engineering, Section of Transportation Vas. Sofias 12, 67100, Xanthi, Greece, gbotzori@civil.duth.gr Abstract: The contribution the European Union structural funds in the developmental strategy of Region of East Macedonia - Thrace is presented and evaluated in this paper. Projects that were financed in the Region of East Macedonia - Thrace from 1994 to today were assembled and processed, in order to determine the strategy of growth that was supported by the European Union structural funds. Results of the study show that during the period from 1994 to today mainly basic infrastructures, regional projects, aiming at the withdrawal of geographic isolation and the withholding of population were financed. Since then, it was considered erroneously, almost obvious that the completion of large scale infrastructure projects would attract foreign investments, contribute to the growth of the private sector and develop trans-regional, cross-border and bi-communal trade. The existence of basic infrastructures is utterly essential, but not capable of the self-reliant and extrovert economic growth of Region of East Macedonia - Thrace. Taking into consideration the restriction of available European Union structural funds in new programmatic period ( ), the hierarchy of needs in order of precedence concretisation of interventions that contribute directly in the aid of productive process and in the reformation of productive model with accent in the primary production and in exports is proposed. Keywords: Regional Development, Region of East Macedonia - Thrace, European Union Structural Funds. 1. Introduction In order to determine the development strategy, which is being proposed, for the Region of East Macedonia - Thrace (REMTh), in the first part of this paper, the proposals [1], [2], [3], [4] [5], [6], [7], [8] which have been formulated during the last twenty years, for the development of REMTh, are presented and evaluated. In the second part of the paper, and in order to determine the developmental strategy served by the available funds, data for innervations funded in the REMTh from 1994 to today, is being collected and evaluated. Specifically, data was collected from 12,267 interventions (actions, projects) of a total budget of billion, funded in REMTh from funds by the Second (Β ) and Third (C ) Community Support Framework (CSF), the National Strategic Reference Framework (NSRF) and the national developmental program Theseus [9], [10]. For each intervention, the title, the final beneficiary, the budget, the location at county level (NUTS III) and the field of intervention were recorded in the database. The funded projects were classified in more than one hundred (-100-) fields of intervention which were then grouped into sixteen (-16-) - 1 / 11 -

2 sectors (Accessibility, Environment, Entrepreneurship, Human resources, Rural sector, Education infrastructure, Digital convergence, Health and social solidarity, Technical assistance, Integrated interventions for development in urban and rural areas, Energy, Culture, Tourism, Fishery, Research and innovation, Other). Figure 1: The Region of East Macedonia - Thrace (REMTh). 2. The Developmental Strategy of the Region of East Macedonia - Thrace (REMTh) 2.1 The study of Athens Academy «The Development of Thrace Challenges and Prospects» The development of REMTh, in particularly that of Thrace, systematically occupied the Greek State in the early 90 s when it established an Inter-party Committee as part of the National Joint Council of the Hellenic Parliament, to study the problems and make recommendations for the development of Thrace. In the conclusion of the Parliamentary Report (1992) the key elements of an action plan relating to Thrace were presented, and in1995, the Research Centre of the Greek Society, of the Academy of Athens, elaborated a draft action plan called The Development of Thrace - Challenges and Prospects [1]. According to this plan [1] one of the main negative factors that contributed inhibitory to the development of the region, i.e. its geographical position, could be possible to evolve from a comparative disadvantage to advantage. Changes in the international scene, and particularly in the surrounding area of the Region, gave birth to new opportunities for Thrace, which is the natural ending of a large hinterland consisting of one part of the Balkans and Eastern Europe up to Russia and the entire Black Sea region. For this inland, Thrace may be an exit to the Mediterranean and play a bidirectional role as a conjunctive ring. However, the exploitation of the comparative advantage of its geographical position requires the organic integration of Thrace in existing and planned national and international transport networks. The construction of a modern transport network is a prerequisite for organic integration of Thrace in the wider geopolitical area and the extrovert and northward growth. - 2 / 11 -

3 The outward growth of Thrace requires, in principle, the removal of geographical and communicative isolation, thus ranking as a first priority, projects such as the Via Egnatia, the port and the airport of Alexandroupoli and the railway connection of Thrace with the European network, making even reference to the first part of a Greek high-speed rail network (TGV) in the section of the network between Alexandroupolis - Thessaloniki, through Kavala and Amphipoli, and branches at Nymphea and Ormenio, and from there into Bulgarian territory. Also, it is suggested, by priority, the development and upgrading of human resources through the development of infrastructures in education and training at all levels. Particular reference is made to the role of the Democritus University of Thrace as a lever for regional development and more specifically in the important contribution that it can have in: a) the local economy, with the creation of executives, familiar with the needs of the region, b) the population, with the creation of direct and indirect job placements, and c) the scientific support of the extrovert (and Balkan) orientation of Thrace. It is being recognized that the developmental potential of Thrace in agriculture and tourism sectors are important but constantly assessed as minor, compared with other regions and with the national priorities. In particular, it is noted that the region of Thrace has all the elements (rich natural resources, extensive and fertile plains, suitable forage, adequate water resources, etc.) that promote the development of an internationally competitive agricultural production and processing activities for agricultural products. Also, Thrace features historical and cultural elements of high interest, as well as, areas of natural beauty (forests, beaches, lakes, habitats, mountains, etc.) toward the development of alternative tourism. It d been estimated, that the total cost required for the implementation of the proposed action plan was around 3.0 billion, during a horizon of a decade ( ). 2.2 The 2nd Regional Operational Program of REMTh for the period The Second Community Support Framework (B CSF) and particularly the Regional Operational Program (B ROP) of REMTh, were the main funding tools for implementation of the development strategy of REMTh for the period As major objectives of B ROP REMTh had be set the lifting of isolation and containment of the population [2], without though, giving specific content to the concept of isolation, beyond the geographical one. This weakness was identified by the consultant of the on-going evaluation of B ROP REMTh, who proposed updating the developmental strategy, towards a multi-sector development, through the exploitation of the inherent potential of the REMTh, and its geographical position at national and, mainly, at European level. In particular, for the multi-sector and sustainable development of REMTh, it had been proposed a developmental model compatible with the geopolitical developments in the region, which may be able to create a new status in transnational collaboration, as well as, significant investment prospects, capable to highlight the emergence of the strategic role of REMTh in the commercial, energy and tourism sectors. En route for this new developmental strategy, it s been proposed to gather all the available resources and organizational effort of REMTh, and direct it to the completion of infrastructure, the best utilization of transit and trans-european networks, and the provision of incentives for the development of all sectors, in order to exploit the endogenous potential of REMTh. At the same time, the radical increase of productivity was set to be the key objective of REMTh, which ranks among the least-developed regions in the EU, for many years. In particular, the rearrangement of the sectoral composition of employment had been proposed, with a reduction of the primary and an increase of the tertiary sector, mainly due to the low added value per worker in the primary sector; hence, it was not considered feasible to implement the proposed developmental strategy through the univocal development of agricultural activities. It was recognized that REMTh, as a predominantly rural region, collects rich natural resources, strong cultural tradition, has privileged living conditions, in relation to contaminated urban centers of the country, and is potentially an important tourist destination, especially in relation to ecotourism activities. It was estimated that the amount needed to achieve the objectives of the REMTh s developmental strategy was about 3.5 billion. - 3 / 11 -

4 2.3 The Regional Framework for Spatial Planning and Sustainable Development and the 3rd Regional Operational Program of REMTh for the period From December 1997 to December 1999, a period which coincided with the completion of the second CSF (B CSF) and the beginning of the design of the programming period , the third Community Support Framework (C CSF), the Regional Framework for Spatial Planning and Sustainable Development [3], had been contacted, towards the formulation of a multilateral developmental strategy for REMTh. The main priorities and strategic options for an integrated and sustainable development of REMTh had been identified (with a fifteen (15) year outlook, ending in 2015), with the C Regional Operational Program (C ROP REMTh) [4], and with the complementary sectoral component of the CSF funding, they were covering the medium ( ) action Plan of the Regional Framework. By decisions of the Regional Council (June & December 1998, March 1999), as a General Development Goal was set: the growth of the population with emphasis on smooth social integration of migrants and returnees based on exploiting the economic potential and the diffusion of prosperity. In particular, it was stated that it sought to retain the existing population coupled with the integration of 20,000-25,000 new refugees who resided and were professionally active in REMTh, as well as the return of internal and external migrants. Basic strategy choice was the planned significant population growth with long-term (2015) target 720,000 inhabitants. 2.4 The Regional Operational Program Macedonia Thrace of period The process of designing the National Strategic Reference Framework (NSRF) for the programming period began in June 2004 and ended with its adoption by the European Commission on March 30, Subsequently, on October 26, 2007 the Operational Program Macedonia - Thrace [5], was approved; according to it, REMTh targeted on convergence and in particularly in ensuring a high growth rate of the Gross Domestic Product (GDP). Specifically, the development strategy concentrated on two choices: a) The first was to utilize its geographical position in order to maximize its benefits; nevertheless, this would be a result from a series of external factors, such as the construction of trans- European transport and energy networks. The interface of REMTh with road and rail trans- European networks, as well as, its emergence as an energy hub, would provide the ability to transform the productive base of REMTh and result in the emergence of new dynamic sectors such as logistics. The restructuring of the productive base of the REMTh required the attraction of significant investment, which would be served by the upgrading of the transport infrastructure. b) The second choice was to exploit the endogenous developmental characteristics of REMTh, which had not been sufficiently explored, e.g. the particularly rich natural environment that could be the basis for the development of tourism in mountain and rural areas, which would form the appropriate conditions for the creation of additional income and employment. This second choice, also aimed to strengthen areas where shortages had an impact on the quality of life and hence on the attractiveness of the REMTh, summarized in urban centres and the need to strengthen their role in the new context shaped by wider developments (entrance of Bulgaria and Romania to the EU, Turkey's gradual approach to the EU). By composing the two deployment strategic choices, the development vision was formulated: REMTh to become attractive to a wider economic area with geographical advantages and rich supply of endogenous growth potential. 2.5 The National Framework for Spatial Planning and Sustainable Development, 2008 The National Framework for Spatial Planning and Sustainable Development, [6], whose purpose was to identify the strategic directions for the integrated and sustainable development of the country for the next 15 years (until 2023), was approved in July / 11 -

5 According to the National Framework, the Balkans and the countries of EU-27, provide new opportunities for transnational cooperation with Eastern Europe and the Black Sea. In this context, REMTh has a significant role in the development of the North-Northeast developmental axis of the country in the Balkans, central and eastern Europe, thus contributing to the dynamic integration of Greece in the international and European context. The integration of REMTh in trans-european transport networks and its emergence as a new energy center of the country constitutes the growth strategy set out for REMTh. To achieve this growth the strategy was designed to expand and continuously upgrade the trans-european road Via Egnatia. In relation to air transport and airport infrastructure, the main international airport of Alexandroupoli should be amplified, in order to serve the increased needs that would arise both in the construction and the operational phase of the oil pipeline and oil terminal port (service personnel, crews of oil tankers, spare parts, etc.). Regarding maritime transport and port infrastructure, the freight port of Alexandroupolis was characterized as an International Water Main Gate-Port. It was proposed to be extended and upgraded in a specialized petroleum terminal port (oil terminal) while maintaining the original design for the handling of containers and bulk cargo. The port of Kavala was characterized as Port of International Interest and National Importance and it was expected to provide specialized as well as general port infrastructure to the tourist development of the region and the country, mainly through the cruise industry. The railway network of REMTh was characterized as a Secondary Network, while in Alexandroupolis was proposed the construction of a Rail Freight Center (logistics). The key directions for the upgrade of the rail network in the REMTh included the creation of a new rail link Thessaloniki - Amphipolis - Kavala - Xanthi and expansion of connections with the neighboring countries and the major urban centers of the country, including private extensions to industrial - freight facilities (industrial area, freight centers, large industrial facilities, etc.). The railway linking of the port of Alexandroupolis was classified as a second priority and there was no reference to a railway link at the port of Kavala. In the energy sector, it had been proposed that the water resources of river Nestos would be used to produce energy, and the investigation of the feasibility of supplementing existing oil refineries in the country, with new facilities in Alexandroupolis, in conjunction with the construction of an oil pipeline that would link it with Burgas (Bulgaria). Also, the proposal included the integration of the gas network and the construction of new pipelines towards Komotini - Alexandroupolis and other areas of high tension industrial areas. With regard to the specificity of the basic guidelines for the development of key productive sectors of the economy in the REMTh, it was proposed: a) the conservation of agriculture and intensive farming, coupled with the protection of farmland, b) the maintenance of marble s and crude oil s mining activities (with high concentrations in the prefectures of Drama and Kavala, respectively), which were recognized as being important categories of mineral resources with both cultural and commercial importance, c) the infrastructure that would meet the needs of organized receptors of industrial units in zones of influence of urban centers, along the growth axis of Drama - Kavala - Xanthi- Alexandroupolis. 2.6 Integrated Development Program of REMTh - The LIPSOR Approach In an effort to formulate an integrated and comprehensive developmental program for REMTh, in June 2010, two scenarios had been conducted, based on the methodological approach of the model LIPSOR (Laboratory for Investigation in Prospective and Strategy), [7]. The first scenario dealt with the development of REMTh as energy-trade center Balkan range. In this scenario, REMTh by a) using its geopolitical position and in particular the European Union enlargement eastwards and the trans-european networks policy, and b) taking advantage of the significant public investments in port infrastructures in Alexandroupolis and Kavala, in transport infrastructures of connections with the trans-european axes, and in energy pipelines running - 5 / 11 -

6 through it, was going to be transformed in an international hub of energy, services, transport and transit trade. This would lead to major investments by foreign and domestic institutional investors, thereby achieving high growth rates. Moreover, in this first scenario it was stated that REMTh had given emphasis on the utilization and transition of natural gas, which could transform it to an energy centre in the Balkans, and the utilization of geothermal energy, which is a valuable source of renewable energy, in which REMTh has a comparative advantage. The second scenario made green development and entrepreneurship the main pillar of growth of REMTh with technology as a tool for the evolution of the multifunctional role of agriculture, with emphasis on quality and competitiveness. In this scenario, the environmental culture was intertwined with the rational use of resources and the concept of quality over all sectors of economic activity of REMTh. The above, should have had a balanced development with technology, so as to contribute to environmental protection, green growth and green entrepreneurship. Also, REMTh would use the possibilities offered by natural gas and especially renewable, geothermal, wind, solar and hydropower. REMTh would leverage the entire geothermal field, hence by contributing to sustainable development, while providing a competitive advantage to businesses that would be implemented in the region to produce competitive products because of lower production costs. The assessment of the two scenarios did not come up with a predominant one, which should be implemented, but a set of useful information to support decision-making with respect to effectiveness and efficiency measures and policy guidelines. It was reported, however, that... the first scenario requires greater transformation of social and productive structures in comparison with the second one, which might be located closer to the existing structures. 2.7 The Operational Program of REMTh Strategic Planning, 2012 With the implementation of the (New Architecture of Government Administration and Decentralisation) Programme Kallikratis, the preparation of five-year Operational Programs was established. The Operational Program includes Strategic Planning, describing and assessing the current situation, the strategy of the region and the development priorities. It is also includes the Operational Planning, specializing the strategic goals in general objectives and then, measures and indicators to be achieved, by priority, during the following five years. According to the Operational Program of REMTh, the Strategic Planning of which has been completed [8], East Macedonia - Thrace utilizing its important geopolitical position, can play an important role in inter-modal transport, aiming to emerge as a key point of Balkan, Eastern European and Asian mainland. Typical is the report on the identity of REMTh as a transit center-logistics and REMTh as an energy hub, [11]. According to the Operational Program of REMTh, a dominant role in the implementation of the development strategy lies with the two ports, of Alexandroupoli and Kavala, which with combined transports, interconnections with Danube and the Black Sea, in addition to the completion of road and rail axes, could prove to be an attractive corridor, competitive to the Bosporus straits. It was also suggested that all the financial tools should converge for the attainment of the above mentioned. Additionally, it had been argued that the rich development resources of REMTh, such as the strong identity of the major urban centers-capitals cities, the natural environment and the cultural resources, could classify REMTh as attractive, for thematic forms of tourism. The development vision, coincided with that of the Operational Program Macedonia - Thrace , i.e. making REMTh attractive to a wider economic area with geographical advantages and rich supply of endogenous growth potential. 3. The Allocation of the European Union Structural Funds in the REMTh 3.1 Allocation of Funds per Source of Funding In order to determine the developmental strategy served by the available funds, data was collected and evaluated for 12,267 actions with a budget of billion financed in REMTh from 1994 to date from the B and C Community Support Framework (CSF), the National Strategic Reference Framework (NSRF) and the national developmental program Theseus, Table 1. The funds, which - 6 / 11 -

7 accounted for 5.5% of the total funds directed to the country, from the above funding sources, are consistent with the percentage of population of REMTh (5.6%) but are less compared with the percentage of the territory occupied by REMTh (10.7%). Source of funding Table 1: Funds Allocation in REMTh by Source of Funding. Total budget Budget in REMTh Percentage of budget in REMTh Number of interventions Β CSF ( ) 21,049,900, ,496, % 820 C CSF ( ) 41,160,315,470 2,497,824, % NSRF ( ) 33,513,990,107 2,133,472, % THISEAS 1,059,466,983 74,570, % 602 Total 96,783,652,801 5,323,363, % 12,267 Source: Own processing 3.2 Allocation of Funds by Sector and Field of Intervention The allocation of funds by sector of intervention is shown in Figure 2. The evaluation of the data shows that in the sector of accessibility, allocated the largest amount of available funds directed to REMTh, i.e. 1,348 billion (25.3%). Below is the sector of environmental protection with million (14.1%) and the development of entrepreneurship with million (13.5%). Also, significantly strengthened, with million (11.4%) directed to the sector of human resource development and million (9.2%), to the agricultural sector. Including the sector of education infrastructure, which amplified with million (6.9%), the above six sectors accounting for 80.5% (4.284 billion ) of total available funds directed to the REMTh from the B and the C CSF, the NSRF and the program Theseus. In contrast, in research and technology allocated just 19.4 million (0.4%) and fisheries and tourism allocated less than 1% of available funds of REMTh 25.9 million and 35.0 million respectively. 1,600 1,400 1,200 1, billion (80.47%) billion (19.53%) Funds (million ) (25.32%) 1,348 (14.14%) (13.48%) (11.36%) 605 (9.22%) 491 (6.94%) 370 (3.82%) (3.55%) (2.82%) (2.58%) (2.53%) (2.53%) (0.66%) (0.49%) (0.36%) (0.20%) Accessibility Environment Entrepreneurship Human resources Rural sector Infrastructures of education Digital convergence Health and social solidarity Technical assistance Integrated interventions for urban and rural areas Energy Culture Tourism Fishery Research and innovation Other Figure 2: Allocation of Funds in REMTh by Sector of Intervention. Source: Own processing - 7 / 11 -

8 Further analysis of the allocation of funds by field of intervention is presented in Table 2. The evaluation of the data shows that million (13.0%) were directed to the construction of highways within the trans-european road network (TEN-T), i.e. the Via Egnatia (including the vertical axes). The funding of private investment interventions through special initiatives given by investment laws follows, with million (10.4%), and the developmental infrastructure in rural areas, such as the construction of land reclamation, construction of dams and irrigation networks, with million. In order to upgrade the local and regional roads in REMTh, million (6.3%) were used, while million (5.1%) were invested for water treatment projects. There is significant enhancement in water management and distribution which was financed with actions of a total budget of million (3.7%) and the national road network upgrading was funded via interventions of a total budget of million (2.8%). In contrast, the upgrading of airports, rail network and ports in REMTh, consumed, only, 19.7 million (0.4%), 57.7 million (1.1%) and 81.3 million (1.5%), respectively. Likewise, the sector of household and industrial waste management received relatively low financial aid (98.4 million or 1.8%). Finally, in the field of education, actions of 80 million (1.5%) were financed for the support of the Democritus University of Thrace (DUTh) and another 23.3 million (0.4%) for the support of the Technical Institute of Kavala. Table 2: Funds Allocation in REMTh by Field of Intervention. Field of intervention Budget of intervention Percentage of budget in REMTh Accessibility 1 Railways 57,658, % 2 Motorways (TEN-T) 690,426, % 3 National roads 151,345, % 4 Regional/Local roads 334,215, % 5 Airports 19,673, % 6 Ports 81,344, % Environment 7 Management domestic and industrial waste 98,389, % 8 Management and distribution of water 198,349, % 9 Treatment of waters (sewages) 272,590, % 10 Prevention of dangers (flood-preventing work) 59,937, % Enterprising 11 Private investments 551,237, % Rural sector 12 Management of aquatic resources Land reclamation work-redistribution 350,703, % 13 Investments in the agricultural exploitations 86,170, % Infrastructures of education 14 Democritus University of Thrace 80,077, % 15 Technological Institute of Kavala (REMTh) 23,284, % Total of field of intervention 3,055,404, % Total 5,323,363, % (*) As a percentage of the total budget of the projects. Source: Own processing. 3.3 Interventions per budget group in REMTh In order to determine the most important interventions (in terms of budget), of the Β CSF, the C CSF, the NSRF and the program Theseus in REMTh, which have been financed from 1994 to date, the sum of 12,267 interventions is grouped into 7 subgroups according to budget as shown in Figure / 11 -

9 10,000 8,000 6,000 4,000 Number of interventions (projects) (62.42%) 7,657 (29.99%) 3,679 2,000 0 <100, ,000-1 million (6.37%) million (0.73%) (0.38%) (0.07%) (0.04%) million Figure 3: Number of innervations per budget group. Source: Own processing million million >50 million Specifically, in the first subgroup, which includes interventions with a budget of less than 100,000, 7,657 (62.42%) interventions are classified, in the second subgroup that includes interventions with a budget between 100,000-1 million, 3,679 (29.9%) interventions are classified and in the third subgroup, which includes interventions with a budget between 1 million - 5 million, 781 (6.37%) interventions are classified. Next are the subgroups with budgets from 5 to 10 million, from 10 to 25 million, from 25 to 50 million and over 50 million (90, 46, 9 and 5 interventions respectively or the 0.7 %, 0.4%, 0.1% and 0.04% of the sum of interventions). 4. Conclusions From the analysis above, it is evident that there is absence of a comprehensive long-term plan (at least for two decades) for the development of REMTh, that would cover all economic, social and environmental sectors, coupled with corresponding prioritisation of interventions. The individual studies (Spatial Frameworks, Operational Programs Community framework) are characterized by general directions, limited time horizon and restrictions not only regarding the amount of available resources but also concerning the type of interventions that will be funded, since they are being prepared in accordance with the eligibility rules of each programming period [12]. This deficit, is attempted to be covered by "Kallikratis", according to which, Regions should develop operational programs, whose purposes are to promote the identity of each Region, to formulate development priorities of all sectors and identify interventions for realizing its vision. Through evaluation of the proposals that have been put forward the last twenty years, for the development of REMTh, two basic development strategies are revealed: The first is the emergence of REMTh as a transit and energy hub, by exploiting the comparative advantage of its geographical position and The second relates to the development of primary sector and alternative tourism, exploiting the rich potential of endogenous dynamics in these sectors (natural resources, extensive and fertile plains suitable forage, adequate water, geothermal fields, historical and cultural elements of high interest, areas of remarkable natural beauty, such as forests, beaches, lakes habitats, mountain, etc.). The first strategic option, i.e. the emergence of REMTh as a transit and energy hub, is being proposed over time, from almost all the official studies that have been formulated for the development of REMTh. Furthermore, both the B ROP REMTh ( ), and the basic guidelines for the design of the programming period, proposed to set as their main objective the drastic increase of productivity; by restructuring the sectoral composition of employment, through the reduction of the primary and the growth of the tertiary sector, would substantially limit the function of the second growth strategy. In contrast, the comparative evaluation of the two development - 9 / 11 -

10 strategies [7] indicates that the second is closer to the existing structures of REMTh, if compared with the first, that requires a greater transformation of social and production structures of REMTh. In order to propose a diversification of the development strategy, which will be based on the improvement of economic conditions for the inhabitants of REMTh, by enhancement of the endogenous capacities, whilst at the same time, ensure social cohesion and environmental protection, [13], it should be taken into account that: a) the emergence of REMTh as a logistic hub with characteristics such as the development of the rail network with new dual electric line via Kavala, the complete upgrade of the existing substandard rail network, the connection by rail of areas of economic interest, and the equal competitive development of the two ports of Kavala and Alexandroupolis, requires funds in excess of 2.5 billion, while the timetable for the completion of all the interventions can not be less than 20 years. It should be noted, that all projects funded in REMTh, through all the Operational Programmes of the NSRF, add-up to 2.1 billion, and taking into account that the available resources are limited (funds available from the new ESPA for REMth are approximately 500 million ), that in case of selection of this development strategy, the potential interventions in other areas, is minimized. b) the emergence of REMTh as an energy hub in the form of transportation - transit of energy resources (gas, oil) is not consistent with the character of endogenous growth, that is desired for REMTh, since in case of an interruption at the source of supply of the energy networks it would be required to redefine the development strategy. E.g., in the General Framework for Spatial Planning and Sustainable Development [6], the feasibility of implementation, of almost all of the proposed interventions, is documented and linked with the construction of the Burgas - Alexandroupolis pipeline. A typical example is the strengthening of the international airport of Alexandroupoli, with purpose as... to serve the increased needs that will arise both during the construction phase and the operational phase of the oil pipeline and oil terminal port (service personnel, crews of oil tankers, spare parts, etc.). Therefore, it is easily understandable that the non implementation of this project would have a direct impact on the strategic development of REMTh, and would lead to its amendment. c) the existence of key infrastructure is necessary but not sufficient for robust and outward evolution in REMTh. It had been, erroneously, taken for granted, that the completion of major infrastructure projects would attract foreign investment, contribute to the development of the private sector and enhance interregional, cross-border trade and inter-communal trade. The critical current socio-economic conditions and the limitation of available funds require priority-based interventions aimed directly at restructuring and strengthening the production process, with emphasis placed on the primary sector and exports. Nevertheless, from the assessment of the allocation of funds directed to REMTh by the B CSF, the C CSF, the NSRF and the Theseus, becomes apparent a concentration in excess of 80% (4.284 billion ) of the available funds in six fields of interventions (accessibility, environment, entrepreneurship, human resources, agriculture and education infrastructures). The main intervention, funded in REMTh with million (13.0%), concerns the construction of the Via Egnatia motorway and its vertical axes. 98.8% of all projects are of low budget, i.e. less than 5 million, and in particular 62.4% less than 100,000, which documents the implementation of small and regional scale interventions. The allocation of funds is justified, partly, due to the very large hysteresis of REMTh in basic infrastructure for accessibility, environment, education, as well as, the need for developing and retaining its highly multi-cultural human resources, and also the need to strengthen entrepreneurship. The vast majority of interventions are characterized as easy and standardized, in other words, categories of interventions for which there is relative maturity and experience of implementation, characteristics of the majority of funded infrastructure projects (local roads, water supply, sewerage, schools, buildings, anti-flooding, etc.). The developmental strategy in relation to the promotion of REMTh to a logistics centre and an energy hub has not been served by the funded interventions, since for key components of a transit - 10 / 11 -

11 center, such as the emergence of the rail network, airports and ports of the Region, had been directed just 3.0% of the available resources, while for the energy sector 2.5%. In conclusion, for a period from 1994 up to today, mainly have been funded basic infrastructure projects of regional scope, in order to lift geographical isolation and containment of the population; it is estimated that these targets have been achieved since the construction of Via Egnatia relieved the geographical isolation REMTh and the population of REMTh increased from 570,000 inhabitants in 1991 to 607,000 in 2001, and remains constant (606,000 inhabitants) according to the census of The limitation of the available funds necessitates the prioritization of needs and priority-based interventions that contribute directly towards the achievement of the development goals REMTh. It is vital to study and implement large-scale projects that will have a multiplier effect on the development of the Region [14]. Also, there is a need to monitor all the interventions carried out on REMTh, regardless of the source of funding and the final beneficiary, a public system that includes monitoring of interventions, not only in terms of budget but in level of output and effect indicators. References 1. Academy of Athens, Publications of the Research Centre for Greek Society, Volume 6, The Development of Thrace - Challenges and Prospects, Athens Region of East Macedonia - Thrace, Final Report: Closing the Operational Program , Komotini, August Regional Framework for Spatial Planning and Sustainable Development of the Region of Eastern Macedonia - Thrace, 471 B/ Managing Authority of Eastern Macedonia - Thrace, Regional Operational Program , Komotini, in June Operational Programme Macedonia - Thrace programming period , Athens, September National Framework for Spatial Planning and Sustainable Development, 128/A/ Sofronidis P., Integrated Development Program of Eastern Macedonia and Thrace Approach LIP- SOR, Thesis, National Technical University of Athens, School of Rural and Surveying Engineering, Department of Geography and Regional Planning, Athens, June Region of East Macedonia - Thrace, Operational Program of Eastern Macedonia - Thrace , Part 1: Strategic Planning, Komotini, in May Reports of the Special Service of the Integrated Information System CR MIS ( for projects to be implemented in REMTh and financed by the CSF (reference date ) and NSRF (reporting ) Speech of the Regional Governor to the Congress of KEDKE Komotini 27 & 28 January G. N. Botzoris, P. D. Koudoumakis A New Methodological Approach for the Parameterization of the Level of Development and Hysteresis of the European Union Regions, Journal of Economy, Business and Financing, July 2013, Volume 1, Issue 1, p.p Technical Chamber of Greece - Branch of Thrace, Presentation and Evaluation of Proposals for Development of REMTh, Permanent Committee on Infrastructure and Development, Thrace Technical Quarterly journal, 31th Issue, June G. N. Botzoris, P. D. Koudoumakis, Cohesion Policy of the European Union and Parameterization of the Level of Development and Hysteresis of Regions, Journal of Economics and Sustainable Development, June 2013, Volume 4, No 7, p.p / 11 -