island strategies — island strategies — The European Commission has officially unveiled its first dedicated strategies for islands and coastal regions, marking a significant step in addressing the distinct challenges these areas face across the EU.
Presented in Brussels by Fisheries and Oceans Commissioner Costas Kadis and Executive Vice-President Raffaele Fitto, the strategies aim to consolidate existing and future policy measures tailored to the diverse needs of these communities. The formal launch is scheduled for June 26 in Paphos, coinciding with Cyprus’ presidency of the Council of the European Union.
Island strategies: Addressing Unique Challenges
Coastal areas, which span from quaint fishing villages to bustling port cities, necessitate bespoke solutions rather than generic policies. Commissioner Kadis emphasised the need for localised responses, stating, “These communities are characterised by great diversity, which requires localised responses rather than a one-size-fits-all approach.”
With approximately 95 million residents along 70,000 kilometres of coastline across 22 EU member states, coastal regions generate an impressive €265 billion in gross value added annually. However, they face mounting pressures from climate change, pollution, tourism imbalances, and demographic decline.
Framework of the Strategies
The strategies are anchored in three key pillars: prosperity, resilience, and sustainability, each supported by 13 flagship actions. The prosperity pillar focuses on diversifying the sustainable blue economy, promoting dual-use fishing vessels that can also be used for fishing tourism, and developing methodologies for blue carbon credits.
The resilience pillar highlights the importance of advanced digital capabilities for monitoring and scenario planning, as well as increased stakeholder involvement in maritime surveillance. Finally, the sustainability pillar addresses the complexities of asymmetrical tourism on coastal and island communities.
Cyprus’ Role and Opportunities
For Cyprus, the strategies present numerous opportunities, particularly in innovation, digitalisation, and offshore renewable energy. Kadis noted that many proposed measures could be effectively utilised by the island, including the innovative idea of allowing fishing vessels to be repurposed for tourism activities. This approach, which originated partly from Cyprus and the Greek islands, aims to provide fishermen with supplementary income opportunities.
Commission’s Commitment to Islands
Fitto introduced the first-ever EU strategy specifically targeting islands, encompassing all islands across 16 member states with a combined population of around 17 million. The strategy is structured around four pillars: economic development, connectivity, competitiveness and innovation; energy security, environmental protection, and climate resilience; communities, demographics and quality of life; and security and crisis preparedness.
Despite Cyprus’ GDP per capita being broadly in line with the EU average, stakeholders have pointed out structural economic constraints linked to the island’s insularity and limited domestic market size. The classification of Cyprus as a “remote area” under the General Block Exemption Regulation (GBER) will enable it to benefit from state aid measures, particularly in air and maritime transport services.
Financial Implications and Future Funding
Fitto revealed that €12.5 billion has been allocated to islands during the 2021-2027 programming period. Resources mobilised through the mid-term review of cohesion policy have already been directed toward enhancing competitiveness, housing, energy, and water infrastructure. Looking ahead, this strategy will be instrumental for member states within the new budget structure, integrating multiple policies into national and regional partnership plans.
Costs of Insularity
A noteworthy aspect of the strategies is the introduction of a detailed assessment of the “cost of insularity,” informed by a new OECD study. The findings indicate that transport costs on islands can exceed mainland levels by over 300%, with local government spending per resident ranging from 30% to 50% higher. In some municipalities, housing prices can soar between 75% and 130% above mainland averages.
In Sardinia, the economic cost associated with insularity has the potential to reach up to 36% of GDP per capita. The Commission plans to conduct a thorough analysis of these costs and identify effective policy responses, particularly in the transport sector, to mitigate the economic challenges posed by geographical isolation.
