On 13th December 2007, the European Commission adopted the Regional Competitiveness and Employment Operational Programme for Gibraltar in the United Kingdom for the period 2007-2013. The Programme falls within the framework laid out for the Regional Competitiveness and Employment Objective and has a total budget of around €11.6 million. Community funding through the European Regional Development Fund (ERDF) amounts to some €5.8 million, which represents approximately 1.1% of the total EU investment earmarked for the United Kingdom under the Cohesion Policy 2007-2013

The Programme is geared towards implementing the Lisbon Agenda for growth and jobs in Gibraltar alongside domestic policy priorities. 75% of the Programme expenditure will target Lisbon activities.

The strategy for regional development hinges on the Gibraltar Government acting as a catalyst, thereby enabling the private sector to consolidate existing jobs, create new sustainable jobs and diversify into new areas of activity.

The Operational Programme is also expected to encourage the introduction of new technology and IT, in addition to boosting the tourism sector.

The ERDF investment also aims to foster economic diversification, encourage enterprises, support sustainable urban development taking into account tourism and environmental aspects, and promote a knowledge-based economy. By providing assistance to projects that generate economic growth, Gibraltar will maximize the benefits gained from the Funds whilst at the same time strengthening the focus on EU Cohesion Policy.

The Programme is expected to deliver different outputs, including:

• Increasing the size of the labour market by 5% and generating 850 new jobs.
• Creating 200 new jobs in the small- and medium-sized enterprise (SME) sector or safeguarding them.
• Providing 30 existing SMEs with EU funding, with a further 15 SMEs starting up.
• Ensuring a 10% increase in SMEs using IT (700 new connections).
• Introducing electronic tendering with a resulting impact on SMEs and their IT capabilities.
• Creating 1000m2 of environmentally enhanced areas as well as 1000m2 of new green areas on urban sites - interface between urban regeneration/encouraging SMEs.
• Levering €5.8 million in tangible and intangible investments.

Priorities of the Programme

1. Sustainable Economic Development, Innovation and Entrepreneurship [approximately 60% of total funding].
2. Technical Assistance [approximately 40% of total funding].