Philoxenia – Reversing the depopulation of rural areas by strengthening the local economy

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The Philoxenia programme has been successful in reversing population decline in the areas where the programme has been active. In some areas, the local population has actually increased as a result of the programme. It has also helped to strengthen and diversify the local economy and has improved the quality of life of many small villages.Alkis Kalliantzidis, project managerYoung people in rural areas often wish to leave their home villages to experience life in cities or abroad, and in many parts of southern Europe this trend accelerated steeply following the onset of the economic crisis and growing youth unemployment. As the population of villages and small towns decline, this leads to a diminution of services and commercial activities.It was to tackle this phenomenon that the Philoxenia business support project was devised. Under the scheme, which is principally funded by the transnational Territorial Cooperation Programme MED ("Mediterranean"), entrepreneurs are offered a combination of grants and loans to set up businesses in five rural areas of Greece, Italy, Cyprus, Slovenia and Malta.Wide range of beneficiariesOver the course of the three-year project, 90 entrepreneurs received administrative, technical and financial support to set up new businesses. Examples of successfully established, and now flourishing, companies include the setting up of a language school, a company which installs photovoltaic energy systems and an architecture practice which specialises in renovating old buildings.Of the 90 participants, 54 were women and 36 were men. The programme was inspired by the success of a French business support programme called Collectif Ville Campagne. Philoxenia means “hospitality” in Greek, and it stands for the welcoming feeling that the programme wants to give to those entrepreneurs who return to the countryside to create businesses.By encouraging the mobility of professional and talented people, the project has contributed towards improving the quality of life in rural areas and towards fostering sustainable local economic development.Total investment and EU fundingThe “Philoxenia” project had a total budget EUR 1 965 589, of which the EU’s European Regional Development Fund contributed EUR 1 567 323 through the MED European Territorial Co-operation Programme 2007-2013.