EUROPEAN COMMISSION Regional Policy EN Regional Policy Cohesion

EUROPEAN COMMISSION Regional Policy EN Regional Policy Cohesion Policy Growth and jobs Background presentation for Group of Mayors from Estonia (20/01/09) charles. white@ec. europa. eu http: //ec. europa. eu/regional_policy

EUROPEAN COMMISSION Regional Policy EN A European Cohesion Policy Simple message 2 18/02/2004 EN So what is Regional Policy? • Regional Policy is how Europe helps poorer regions catch up (reducing disparities) and areas suffering from economic change to restructure • It is the second biggest budget (35%) and helps the realisation of most other policies (environment, transport, energy and others) • The scope is staggering: investments in road rail and environment infrastructure, in people and in the business environment. 600, 000 projects so far. • It is at the centre of the Lisbon strategy.

EUROPEAN COMMISSION Regional Policy EN A European Cohesion Policy Simple message 18/02/2004 EN And what’s the link with Cohesion Policy? • Regional Policy is part of it, along with Social policy • More specifically the funds which finance these policies (the ‘Structural Funds’: ERDF and ESF) • Also the Cohesion Fund (not a structural fund but treated like one) which came from the Maastricht treaty and is handled by REGIO now • Also IPA • But not EAGGF or FIFG any more 3

EUROPEAN COMMISSION Regional Policy EN A European Cohesion Policy Simple message 4 18/02/2004 EN Why bother with a Cohesion Policy? • Leaving disparities in place is not an option: that would wreck two of the policies on which Europe’s growth has been based: the single market and EMU • EMU needs an adjustment mechanism. The Lisbon agenda partly fulfils that role but Lisbon needs the Cohesion Policy to function properly • It is in the treaty: to promote economic and social cohesion (though not territorial cohesion as yet…) by reducing disparities between the regions

EUROPEAN COMMISSION Regional Policy EN A European Cohesion Policy Simple message 18/02/2004 EN What is a Region anyway? • Good question: not defined in the treaty. • We work with the second level of the Nomenclature for Territorial Statistics, NUTS to everyone. NUTS 2 regions range from 800 th to 3 million population • Second question: is spatial targeting the right approach? The World Bank is not convinced. Other parts of the world have achieved balanced growth without it. Eventually. 5

EUROPEAN COMMISSION Regional Policy EN 18/02/2004 EN Results of the Public Consultation • Consensus on the need to continue Cohesion policy post-2013, majority in favour of covering whole territory of the EU. • Not only a policy of solidarity, but also aimed at fostering competitiveness, essential role for human capital and innovation • Increasing focus on sustainable development • Strong support for territorial cooperation • Encouragement of integrated approaches (esp. rural development) • More clarification of respective roles of territorial levels required • Need for further simplification e. g. single fund • Community sectoral policies should have a stronger regional dimension 6

EUROPEAN COMMISSION Regional Policy 18/02/2004 EN EN Europe 2020: key issues for future policy • Wide variations resulting from globalisation Competitive, innovative economies will benefit; non knowledge based economies will be more exposed • Diversity in demographic patterns One third of regions, mainly centre EUR 15 will experience greater dependency of ageing population. EUR 12 later, so can prepare. • Far reaching impacts of climate change Especially in South and East Europe • Challenge of volatile energy markets across the board Peripheral regions in South and east especially vulnerable 7 • Alerting regions to the extent of the risks

EUROPEAN COMMISSION Regional Policy EN 18/02/2004 EN Open Days 2008 • • Co-organised by Commission and Committee of the Regions with 216 partner regions and cities from 32 countries • 7, 700 participants registered at 140 workshops (23, 900 sessions) • 230+ local fringe events in the participating regions. • Investors’ café also bigger than ever • 8 Regions and cities in a challenging world: Innovation; sustainable development; co-operation and networking; cohesion policy tomorrow Widening international dimension.

A new partnership EN for Cohesion 9 EUROPEAN COMMISSION Regional Policy 18/02/2004 EN

A new partnership EN for Cohesion A European Cohesion Policy Simple message EUROPEAN COMMISSION Regional Policy 18/02/2004 EN Why should contributing regions keep pouring money into ‘Club Med’? • It is not pouring it is investing. For all investments there are returns • As poorer regions catch up they buy more goods • Many building and supply contracts come back to contributing regions (35% PO, 42% HE) • Solidarity is vital, especially now. 10

A new partnership EN for Cohesion A European Cohesion Policy The early days EUROPEAN COMMISSION Regional Policy 18/02/2004 EN A short history • Differing practices from the start, then three reforms between 1988 and 2000, harmonising rules, simplifying systems, decentralising management, phasing eligibility as a result of success. • Reform continues in the fourth period, 20072013, which particularly targets: • Greater disparities with enlargement • Achieving growth and sustainable development – the Lisbon and Gothenburg agendas • Globalisation and restructuring • Dealing with ageing population, slower growth 11

A new partnership EN for Cohesion EUROPEAN COMMISSION Regional Policy 18/02/2004 EN Our tools Three new objectives • • Territorial co-operation (former Interreg programme and RFEC networks to test ideas) 2. 4% Total budget € 347 bn, which will unlock up to € 700 bn • A method based on what works: Programming, Partnership and Decentralised management Mainstreaming: INTERREG and URBAN • 12 • • Conclusions Competitiveness (old Obj 2&3, tie to Lisbon) 15. 7% • Reform of the policy Convergence (like old Obj 1: greater scope) 81. 9% Non grant instruments now in regulations

A new partnership EN for Cohesion A European Cohesion Policy Simple message EUROPEAN COMMISSION Regional Policy 18/02/2004 EN The method is important • Has improved quality of many public administrations • Has introduced an evaluation culture, stimulated strategic thinking, responsibility • Supported co-operation, improved accountability, transparency • Main element in visibility of ‘Europe’ • Cohesion policy is a synonym for good European governance and balanced growth • China Russia Brazil (also Paraguay/Mercosur) now formally linked • Time to ‘export’ 13

A new partnership EN for Cohesion 18/02/2004 EN EUROPEAN COMMISSION Regional Policy Geographical Eligibility for Structural Funds Support 2007 -2013 (GDP/head 2000 -2001 -2002) A European Cohesion Policy Convergence objective Regions > 75% in EU 25) Convergence objective statistically affected regions Objective 'Regional Competitiveness and Employment' Phasing-in regions, "naturally" above 75% Objective 'Regional Competitiveness and Employment' 14 Index EU 25 = 100 Source: Eurostat

A new partnership EN for Cohesion EUROPEAN COMMISSION Regional Policy The link to Lisbon? • • background • • 15 18/02/2004 EN The Lisbon Agenda (first version, competitiveness, knowledge society, ICTs) 1) set certain targets Member States realised that it needed to be extended to all growth factors and so be centred on Cohesion Policy So Member States were asked to prepare National Reform Programmes (cf Integrated Guidelines for Growth and Employment) and report annually Cohesion Policy programming is now integrated into this: stage 1: preparation by EC of the Strategic Guidelines for Cohesion, and stage 2: preparation by MS of National Strategic Reference Frameworks based on Strategic Guidelines and Integrated Guidelines above

A new partnership EN for Cohesion EUROPEAN COMMISSION Regional Policy Five levels of programming and follow-up Community's strategic guidelines on cohesion 1 A European Cohesion Policy 18/02/2004 EN proposed by the Commission, adopted by the Council, assent by the European Parliament National Strategic Reference Framework 2 proposed by the Member State in applying the partnership principle; reflects on the Union‘s orientations, lays down a national strategy and its programming; finally decided by the Commissionen Operational Programmes 3 4 5 16 one programme by fund and Member State or region, description of priorities, management and financial sources; proposed by Member State or region; finally decided by the Commission Programme management and project selection by Member States and regions; “shared management“ principle = concertation with the Commission Strategic follow-up and annual debate by the European Council in Spring, based on an annual report of the Commission and Member States

A new partnership EN for Cohesion A European Cohesion Policy Priorities 17 EUROPEAN COMMISSION Regional Policy 18/02/2004 EN The new Strategic guidelines: building in the (revised) Lisbon agenda (1) I) Making Europe and its regions a more attractive place to invest and work • expand improve transport infrastructures • improve the environmental contribution to growth and jobs • address the intensive use of traditional energy sources II) Knowledge and innovation for growth • increase and improve investment in RTD • facilitate innovation and promote entrepreneurship • promote the information society for all • improve access to finance

A new partnership EN for Cohesion A European Cohesion Policy EUROPEAN COMMISSION Regional Policy 18/02/2004 EN The new Strategic guidelines: building in the Lisbon agenda (2) III) More and better jobs • attract and retain more people in employment and modernise social protection systems • improve adaptability of workers and enterprises and the flexibility of the labour market • increase investment in human capital through better education and skills • administrative capacity • health and the labour force Priorities 18

A new partnership EN for Cohesion EUROPEAN COMMISSION Regional Policy 18/02/2004 EN II) Improve the environmental contribution to growth and jobs Address the significant infrastructure needs for compliance with environmental legislation (esp. new MS) Ensure attractive conditions for business and staff by planning and rehabilitation, natural and cultural assets Develop innovative and job creating businesses a more attractive place… Promote investments that contribute to EU Kyoto commitments Undertake risk prevention measures through • • more targeted research • better use of ICTs • 19 improved management of natural resources more innovative public management policies

A new partnership EN for Cohesion A European Cohesion Policy New Instruments 20 EUROPEAN COMMISSION Regional Policy 18/02/2004 EN New Instruments in the new period Improve performance in closer co-operation with International Financial Institutions (IFIs): • JASPERS: a new technical assistance/evaluation partnership with EIB and EBRD for large projects • JEREMIE: finance for business development for micro to medium enterprises through European Investment Fund. • JESSICA: financial engineering for sustainable urban development with EIB, CEB and other IFIs • JASMINE: encouraging the provision of micro credit • Regions for Economic Change initiative • European Grouping of Territorial Co-operation (EGTC): gives legal structure to implement programmes

A new partnership EN for Cohesion EUROPEAN COMMISSION Regional Policy 18/02/2004 EN And in Estonia? • 21 OP Development of the living environment (€ 1. 6 billion) • OP Development of the working environment (€ 1. 4 billion) OP Human resource development (€ 391 m) • New Instruments • • A European Cohesion Policy € 3. 4 billion (€ 1. 86 billion ERDF, € 1. 15 billion Cohesion Fund € 391 milllion ESF) Aims: 100% clean water; from 36. 7% to 60% recycled solid waste; stable public transport use; share of investment for Lisbon 47%.

A new partnership EN for Cohesion Cleaning up power station Narva 22 EUROPEAN COMMISSION Regional Policy Some Examples of projects 18/02/2004 EN

A new partnership EN for Cohesion The road to Russia, Narva. 23 EUROPEAN COMMISSION Regional Policy Some Examples of projects 18/02/2004 EN