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In March 1999, the PEACE II Programme was introduced to build on the success of PEACE I. It became mainstreamed as a Structural Funds Programme (formerly a Community Initiative) leading to the setting up of a Northern Ireland Community Support Framework (CSF) with two Operational Programmes – the Transitional Objective 1 Programme (known as Building Sustainable Prosperity) and the PEACE II Programme.
The Strategic Aim of the PEACE II Programme remained as with PEACE I which was: 'To reinforce progress towards a peaceful and stable society and to promote reconciliation by increasing economic development and employment, promoting urban and rural regeneration, developing cross-border co-operation and extending social inclusion.’
The Strategic Objectives of the Programme were reframed as:
The two Member States that oversaw the PEACE I Programme were the United Kingdom (UK) and Ireland. The interests of the two Members States were represented by the Department of Finance and Personnel (DFP, Northern Ireland) and the Department of Finance (DOF, Ireland), responsible for designating central funding and the overall implementation of the PEACE II Programme.
In PEACE II, The Special European Union Programmes Body (SEUPB) was introduced as the Managing Authority with overall responsibility for the Programme. SEUPB, one of six cross-border bodies established after the 1998 Good Friday/Belfast Agreement, came into being just as PEACE I was coming to a close and PEACE II was agreed and in the process of implementation.
PEACE II was implemented through a number of devolved delivery mechanisms similar to that used under PEACE I. For PEACE II, there were 56 Implementing Bodies (compared to 64 in PEACE I) which included Government Departments, Intermediary Funding Bodies (IFB), Local Strategy Partnerships (LSP) and County Council-led Task Forces (CCTF). The emergence of LSPs, known as District Partnerships in PEACE I, and CCTFs built upon the partnership structures which had begun to emerge in the first programme.