The findings of this analysis are summarised in a State index that demonstrates clearly that the average of the

island regions is lower than that of the EU-27, but also lower than the average of the States with island regions The findings of this analysis are summarised in a State index that demonstrates clearly that the average of the island regions is lower than that of the EU-27, but also lower than the average of the States with island regions. The islands with at least one Functional Urban Area (FUA) of local importance are only 25; only two islands cities Palma (Mallorca) and Valletta (Malta)- have higher functions than the average of European cities. Options for policy development The fact that islands have specific geographical characteristics and permanent handicaps should not lead to the conclusion that islands are handicapped territories. On the contrary, this study supports the view that islands need an adequate strategy in order to valorize these characteristics within the European context and the global environment. This strategy has to make use of the characteristics of insularity as advantages and opportunities, rather than structural disadvantages and vulnerabilities. Concerning the Strengths of the islands, the main comparative advantages are: the quality of life and the quality of their natural and cultural assets; high density of natural and cultural capital; and a strong cultural identity, combined with the fact that islands have low nature fragmentation by artificial surfaces. This advantage is threatened by tourism and residential house sprawl and it is not particularly valorized to create new wealth and employment (cultural professions, environmental management and quality food). Concerning Weaknesses, insularity affects directly and permanently some of the most important attractiveness parameters of islands: accessibility, public interest services, private services and networks, economies of scale, market organisation. Opportunities and Threats parameters such as climate change, energy prices raise, water scarcity etc are quite common for all islands regardless of their size, location and development level. Opportunities have to be seized as now the need involves upgrading the business environment through soft infrastructure. New technologies in communication, in information, in renewable energy, in recycling resources etc., the importance of leisure activities, the human aspiration towards quality and environment have to be used in a new islands strategy.

This strategy needs to adapt to islands specificities and needs the guidelines of the 2020 European strategy. Priorities of such a strategy for Islands could be: o Quality islands: In spite of the consequences of size and insularity (small market, low accessibility), there are various examples where islands products based on local resources and know-how are competitive. This success can be extended to services production such as tourism, instead of consuming the islands limited resources for a mass activity. New knowledge, innovation and skilled human resources are prerequisite for the success of such a strategy that has to be niche oriented. o Green islands: is a priority linked with the limited natural resources of islands; the strategy lies on reduced use of resources such as water, land, energy and a recycling of waste produced both by enterprises and the local population. o Equal opportunities islands: is a priority linked with the goal for equal access of all European citizens to Services of General (Economic) Interest (SGI) -which are a sine qua non condition for quality of life and competitive entrepreneurship- as expressed initially in the European Spatial Development Perspective. The relevance of SGI for economic, social and territorial cohesion is underlined in the Lisbon Treaty (article 14 and protocol 26). 1.1 The State of the European Islands pag25
Table 2 Classification of NUTS 2 & 3 island regions and the case study pag33

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