Transcript Lisbon: regions and cities

Investing in Europe's cities and
regions: public private partners for
growth and jobs
EPC Policy Dialogue
28 September 2006
Europe is facing a new reality
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Globalisation has created new markets and new
opportunities worldwide. But it has also increased
competition and structural change both within and
outside the EU.
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The Single market is one of the answers to
Globalisation. National solutions to deal with structural
changes are no longer sufficient in Europe. Certain
national economic policy instruments have lost their
influence in the Euro-area. (For example; running a
budget deficit, depreciation of the currency, changing
of interest rates or state aid)
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As a result the individual Member States have to adapt
their policies when attempting to create jobs and
growth
Globalisation:
which way for Europe?
Europe in the world economy
EU(25)
NAFTA(3)
ASEAN(10)
Globalisation
is the challenge
for Europe
Macro-regional
trade integration
National solutions
are insufficient
Data: merchandise trade, billions of dollars
Source: WTO, International Trade Statistics 2005
Europe in the world economy
Russia: +5,3 %
Canada: +3,2 %
USA: +3,7 %
EU 25: +2,2%
Japan: +2,0 %
China: +8,2 %
(Euro zone: +2,0%)
Mexico: +3,5 %
India: +6,3 %
Africa: +5,9 %
Brazil: +3,5 %
Australia: +3,6 %
global
g r o w t h : 4,8 %
Source: IMF, World Economic Outlook 2006, European Commission, OECD,
Europe: how many economies?
Internal market and EURO
are among the main factors
which stimulate innovation
and competitiveness
… and which reduce the scope for
public economic intervention conceived
within the national boundaries
Example: financial markets
Rationale
.
 Allocation of capital is improved
 Higher efficiency of financial intermediation
 More opportunities for risk-diversification
 More consumer choice
 Lower capital costs+improved productivity
 Common playing field for EURO
 Global actors on the financial markets
“Regional” banks becoming European market leaders
 Unicredit – from Northeast Italy to Austria,
Germany, Central and Eastern Europe
 BBVA - Banco Bilbao Vizcaya + Argentaria
 …
The EURO era
Real short-term interest rates
2
Average 2002-2004, 3 month rate
Deflator of private consumption
DE
FI
AT
1
FR
%
BE
NL
0
IT
PT
-1
EL
ES
IE
-2
EURO Countries (except LUX)
Source: EU Commission, AMECO Database
Is Europe just about
opening markets and
raising the competition game?
Economic and social cohesion
is embedded in the Treaty (art. 158)
aims to the reduction
of the ‘disparities
between the levels of
development of the
various regions’
i.e. the ‘backwardness
of the least favoured
regions’ and provides
for a policy which
considers the need of
those regions which are
lagging behind.
Economic and social cohesion
Regional policy
confirmed in 2007-2013
with a possible budget of
307 billion EUR
(36% of total)
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Focus
regions
Objective
reduce disparities + foster development
Partnership
EU+Member States+Regions+Social Partners
A forward-looking policy
convergence+competitiveness+employment
Not a merely redistributive mechanism
New set of tools for Europe

Some Macro-economic policy tools that used to
be in the hands of the Member States are now
available on EU level

Some of these tools are likely to have a greater
impact on the creation of jobs and growth as
efforts can be synchronized and destructive
policies limited

EU, Member States, the regions and
enterprises need to cooperate intensively (for
example: industrial policy)
A strong EU industrial policy
based on worldwide excellence…
Example: AIRBUS
Six Centres of Excellence
based around expertise in key production areas
… and a network of regional clusters
Example: AIRBUS
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wing at Filton and Broughton, UK;
forward and aft fuselage at Nordenham,
Varel, Bremen and Hamburg in Germany;
nose and centre fuselage at Toulouse, Saint
Nazaire,Nantes and Méaulte in France;
vertical tailplane in Stade, Germany;
pylon and nacelle at Saint Eloi, France;
horizontal tailplane and A380 sections at
Getafe, Illescas and Puerto Real in Spain.
… why regional clusters?
.
Build
world class competence regions
based on strong inter-institutional
and public-private partnerships,
and articulated on integrated
innovation platforms
 Education
 Research and Development
 Technological Transfer
 Entrepreneurship
 Access to finance
… sharing excellence across regions
.
Partnership and Cooperation
Enterprises and Administrations
make excellence together
Regions can learn each other
 22 PAXIS regions of excellence
 60 PRO INNO regions
 METREX – Network of European Metropolitan
Regions and Areas
 Innovative Regions
 Regions of Knowledge
 Etc.
Lisbon, what was about?
“The Union has today set itself a new strategic goal for
the next decade:
to become the most competitive and dynamic
knowledge-based economy in the world, capable of
sustainable economic growth with more and better jobs
and greater social cohesion.
….
A meeting of the European Council to be held every
Spring will define the relevant mandates and ensure
that they are followed up.”
Conclusions European Council
Lisbon, 23 and 24 March 2000
Lisbon, midterm but not yet halfway!
“Five years after the launch of the Lisbon Strategy, the
results are mixed. Alongside undeniable progress,
there are shortcomings and obvious delays.
…
To that end, it is essential to relaunch the Lisbon
Strategy without delay and re-focus priorities on growth
and employment.
…
Union must mobilise to a greater degree all appropriate
national and Community resources – including the
cohesion policy”
Conclusions European Council
Brussels, 22 and 23 March 2005
Lisbon, midterm but not yet halfway!
“The Council approves the (24) Integrated Guidelines
for Growth and Jobs 2005-2008
…
To follow the new three-year governance cycle, the
Integrated Guidelines must now be translated into
ambitious national reform programmes, to be
established by the Member States in accordance with
the timetable put forward by the Commission, which
respond to their specific needs and situations, and
which reflect this integrated and consistent approach
involving macro-economic policies, micro-economic
policies, and employment.”
Conclusions European Council
Brussels, 16 and 17 June 2005
Lisbon, «time to move up a gear»
Priority areas indicated by the last Spring European Council
 Investing more in knowledge and innovation
(i.e. national targets for RTD expenditure: 3% GDP
European Institute for Technology, etc.)
 Unlocking business potential, especially of SMEs
(i.e. better regulation and simplification, one-stop shops for
SMEs, access to finance, etc.)
 Increasing employment opportunities for priority categories
(i.e. «by end 2007 every young person who has left the
school and is unemployed should be offered a job,
apprenticeship, additional tranining within 6 months»)
 An energy policy for Europe
(i.e. integration and interconnection of national energy
markets, sustainable renewable energy sources, etc.)
Conclusions European Council
Lisbon, 22-23 March 2006
Creating jobs and growth-what
can be done on the regional level
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Promote the creation of business clusters
Develop local and regional action plans for growth
Introduce entrepreneurship as a subject in schools
Set up consultancy services for new entrepreneurs and
one stop shops for businesses
Train civil servants in enterprise culture
Expand cooperation with universities and disseminate
research results
Creating jobs and growth-what
can be done on the regional level
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Use spatial planning as an active instrument to boost
jobs and growth
Assess the impact of decisions on enterprises-impact
assessment should follow every decision
Improve procurement skills of officials
Promote small business in procurement procedures
Assess and explore creative forms of service delivery
Labour market matching
Role the Committee of the
Regions
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Influence European Policy through consultation
based on the Treaty
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Bring forward new information through the
Territorial Dialogue and the Lisbon Monitoring
Platform
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Open Days 2006
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Disseminate information on Public Private Partnerships
as a tool to promote jobs and growth
Support new community initiatives such as Precommercial Procurement of Innovation
CoR political agenda on Lisbon
 A true partnership for jobs and growth
with cities and regions
 Territorial approach
= disaggregated targets + cohesive approach
 Improved Governance
= participated implementation and monitoring
 Delivering through cohesion policy
= sinergies with National Plans for cohesion policy.
Added value of Territorial Cooperation
 Awareness and dialogue
= local debates with citizens, businesses,
social actors
Territorial Dialogue
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CoR survey on how National Reform Programmes
(NRPs) were perceived by the Regions and Cities
showed that although most of the regions were aware of
the NRPs they were not involved when they were drawn
up
The conclusion being that it is necessary that all
stakeholders feel that the policies proposed concern
them and they are truly involved in the decision-making
and implementation process
Territorial Dialogue
Monitoring
In-house
expertise
(Surveys, Reports)
External
Expertise
(Studies,
Scoreboard)
Consultation
Opinions
Resolutions
Declarations
TERRITORIAL
DIALOGUE
SPRING
EUROPEAN
COUNCIL
Communication and exchange of experience
(Conferences, Events, Forums, Press Releases, Publications)
 Spring European Council of 2006 asked the CoR to submit a
report on growth and jobs in early 2008
Lisbon Monitoring Platform
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Launched at the first territorial Dialogue and will run
until 2008
Operational tool for local and regional authorities
Contains regional statistical data, interactive electronic
forums and a documentation centre
Initially it will cover 50 EU local and regional authorities,
but the number will increase progressively
Will provide important input to the CoR political
message on a more decentralized implementation of
the Lisbon strategy
Platforms opens to the public on Open Days 9-12
October 2006
Open Days 9-12 October 2006
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Theme: Investing in Europe's cities and regions: public
private partners for growth and jobs
Forth consecutive year with more than 5000
participants, 600 speakers and 111 workshops
Organised jointly by the European Commission's DG
Regio and the CoR
A trading place for knowledge on how to do things, how
to do things better and how to exchange information
and experiences
A novelty this year is that the Private Sector is involved
Open Days 9-12 October 2006
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Geographical origin
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75% of the participants will travel to Brussels
specifically for the OPEN DAYS from all 25 Member
States
Italy, the UK and Poland have the most participants –
over 200 each
Organisational affiliation
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40% work for national, regional or local administrations
15% are academics or consultants
10% from the NGO sector
6% from Regional Brussels offices
5% from business and banking organisations
5% from EU institutions
Open Days 9-12 October 2006
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This year's addition will give special focus to PublicPrivate Partnerships (PPPs)
The advantages of PPPs are that they could provide:
 Additional capital
 Alternative management and implementation skills
 Value added to the consumer and the public at large
 Better identification of needs and optimal use of
resources
Open Days 9-12 October 2006
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Example from Open Days Programme: Creating lead
markets: pre-commercial procurement of innovation
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Addresses the missing link in the European innovation
cycle of public procurers acting as technologically
demanding first buyers
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Share with suppliers the risks and benefits of picking up
exploratory research which has the potential to innovate
public services
Open Days 9-12 October 2006
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Local and regional authorities represent 80 % of public
procurement in EU
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Small percentage of the public procurement goes to
innovative products
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European Commission and CoR cooperation to explore
opportunities to use public procurement as a driving
force for to create lead markets in health, transport and
government
Conclusion
The private sector has already had
to adjust to a rapidly changing world
environment, the public sector now
has to follow
 To be successful all levels of
government have to cooperate and
learn from the best
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