by
Vasilis Margaras*
In its January 2016 Plenary Session, the European Parliament adopted a unanimous Resolution on the special situation of islands (2015/3014(RSP)). The resolution has touched upon a number of demands that have been advocated by insular regional territories and their lobbies in Brussels. But what are the particular conditions that the islands are facing? Why has this resolution received such a big level of support from all political groups and MEPs at the European Parliament?
Many EU Member States have islands and insular territories (e.g. archipelagos). Among these islands are several world famous tourist destinations, which possess considerable natural and cultural wealth. Certain islands also produce renowned agricultural products and handcrafts. In our minds, islands constitute idyllic spaces for holidays and relaxation.
However, islands also face considerable challenges. They may lack adequate transport links with the nearest mainland. Their ecosystems are vulnerable and natural resources are often scarce. Some are small and/or mountainous with small agricultural sectors.
Many of them may be located on the periphery of a Member State, or constitute border regions. This special geographic location is placing considerable limitations on their potential for economic growth. Islands are usually too small to allow big economies of scale. They may lack human capital and usually possess limited public resources in health, education, research and innovation. More recently, the EU’s southern islands, and in particularly the Greek islands, have seen a large influx of migrants, whilst lacking the resources needed for their accommodation or integration.
In most cases, islands are not self-sufficient in agricultura and industrial products or tertiary-sector services. They are usually reliant on imported fossil fuels and dependent on mainland energy networks. As the majority of products and services have to be transported to islands, prices are considerably higher, adding to the cost of living in insular territories. Many islands also suffer from an economy of seasonality where much of the economic activity
takes place during the tourist summer months. In the winter months, the economy tends to stagnate.
In addition, certain insular economies specialise in one or just a few economic fields (e.g. tourism, fisheries, agriculture), or have limited economic activity due to their small size. This is especially the case with the very small islands. Therefore, diversification of the economy is desperately needed. However, although the state of insularity creates a large number of problems, various studies suggest that islands can become ‘lands of opportunities’ by investing in their relative strengths.
In order for this to happen, measures to promote insular policies should be established both at national and European level. Policy ideas put forward by insular territories themselves, such as the adoption of ‘insular mainstreaming’ in national and European policies; adopting a measuring of the cost of insularity and the collection of data to assess the real needs of insular territories should be further explored and developed. Island territories claim that a number of small aid incentives to their territories will boost local economies considerably, without posing a danger to the EU budget. These incentives could include the granting of additional aid to islands in the fields of environment, energy, transport and infrastructures. Insular territories also call for state aid exemptions to be extended to islands with populations above the established limit of 5 000 inhabitants as mentioned in the Treaty on the Functioning of the EU, and the use of additional indicators for the allocation of regional funding.
Islands face considerable challenges. However, through a revision of existing policies, they may have the potential to transform their geographical handicaps into opportunities. The European Spatial Planning Observation Network (ESPON) study on the development of islands (EUROISLANDS 2013) provides ideas for economic conversion, whereby islands can be transformed into ‘green’ islands of equal opportunities and producers of high-quality local products. With the use of green technologies and smart specialisation, islands can protect their natural resources and become positive examples of self-sustainability. Many islands have already taken the first steps in this direction by participating in the Covenant of Mayors for the environment.
In addition, new ICT opportunities may contribute to diminishing the ‘research; life-learning education and innovation gap’ that many island territories face. Furthermore, the potential for growth and jobs can be further developed through the production of high-quality agricultural products and handcrafts. A number ofisland-produced products have already been protected by EU geographical indication schemes and constitute successful examples of commercialisation. Rural development aid programmes may also provide additional revenue to rural areas. In addition, blue growth techniques as promoted by the European Commission may be developed in the islands in order to address the depletion of fishing stocks and to provide a new range of economic activities in coastal areas. The development of sustainable tourism in addition to seasonal tourism may provide additional growth and employment as well as a focus on the promotion of cultural heritage and specific artisanal economic activities. The huge potential of ocean, wind and solar energy and the potential of islands to become important sources of alternative energy, to be as energy-autonomous as possible and, above all, to guarantee cheaper energy supplies for their inhabitants can provide a new source of sustainable economic growth for insular territories.
Finally, islands offer a unique way of life to inhabitants and visitors. The widely acknowledged high quality of life, relatively stress-free environment, and cultural and natural resources constitute valuable assets which could be further promoted.
More on the issues affecting the islands and the possible solutions to their problems can be found in the briefing on the EPRS briefing on: ‘Islands of the EU: Taking account of their specific needs in EU policy’ at the following webpage: http://epthinktank.eu/
This article is written in a personal capacity and does not represent the views of the institution for which the author works.
*Vasilis Maglaras holds a PhD from Loughborough University. He has been a Regional Councillor for the South Aegean Region and is currently working at the European Parliament as Policy Advisor in EU Regional Policy for the European Parliament Research Service.
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first published in “The Press Club Brussels Europe Magazine’’, April 2016.
By: N. Peter Kramer
