Europe's rural areas must exploit their potential or risk falling further behind urban areas in meeting Lisbon employment targets, particularly in the remotest and most agricultural areas, according to a Commission Communication published today.

The report underlines that there are a broad range of instruments at European and national level that can be used to close the jobs divide between rural and urban areas. In particular, Rural Development measures should be fully exploited for employment and growth along with cohesion and employment policies. The Communication was presented by Mariann Fischer Boel, Commissioner for agriculture and rural development. It is accompanied by a detailed report on the employment situation in rural areas.

"Rural areas represent more than 90% of EU territory and contain more than half of the EU's population.[1] Rural areas offer real opportunities in terms of rural amenities and tourism, their attractiveness as a place to live and work, and their role as a reservoir of natural resources and highly valued landscapes. And of course, Europe's agriculture offers many high quality products. I call on Member States to make full use of their new Rural Development programmes for the period 2007-2013 to create growth and jobs," said Commissioner Fischer Boel. "I look forward to working with my colleagues in the Commission to ensure that rural areas benefit fully from EU policies aimed at job creation".

The report concludes that Europe's rural areas are diverse and include many important regions. However, some rural areas, and in particular those which are most remote, depopulated or dependent on agriculture, face particular challenges as regards growth, jobs and sustainability in the coming years. These include: lower levels of income, an unfavourable demographic situation, lower employment rates and higher unemployment rates, a slower development of the tertiary sector, weaknesses in skills and human capital, a lack of opportunities for women and young people, a lack of necessary skills in parts of the agricultural sector and food processing industry. Furthermore, the continued restructuring and modernisation of Europe's agriculture will place a heavy burden on many rural areas, particularly in the new Member States.

Member States can use their rural development programmes to deliver the priorities of knowledge transfer, modernisation, innovation and quality in the food chain, investment in human capital and the creation of employment opportunities.[2] Almost €80bn will be available between 2007 and 2013 to increase the competitiveness of the agriculture and forestry sectors, improve the environment and diversity the rural economy.

[1] According to the OECD definition of significantly and predominantly rural areas.

[2] Strategic guidelines for rural development