Transcript UK Student Visit 3rd to 5th November 2004

EUROPEAN COMMISSION
Regional Policy
29/09/2004
EN
What future for regional development in the
enlarged Europe?
An outline of the Commission's proposals
Association of Irish Regions conference, Ballina,
15 October 2004
1
EUROPEAN COMMISSION
Regional Policy
Point of departure: 2000-2006
Three Objectives and four
Community Initiatives; 49.5%
of the population & all regions
in EU25 live in areas covered
by
Objective 1
or Objective 2
Financial resources of
Euro 233 bn representing one
third of the EU's total budget or
0.45% of the EU‘s GDP
2
29/09/2004
EN
EUROPEAN COMMISSION
Regional Policy
Discussion following second Cohesion report
Unanimous wish to help the lagging
regions
Strong desire to help statistical effect
regions
Special measures needed for territorial
cohesion
Divergence on continuation of Objective 2
Divergence on cash, methods
Lisbon Agenda, etc.
3
29/09/2004
EN
EUROPEAN COMMISSION
Regional Policy
Why maintain a European regional policy?
Long-term strategic approach backed by
financial stability over 7 years
Exclusive focus on physical and human
capital investment
Respect across Europe for the rules of the
Single Market
Emphasis on job creation
Promotion of good governance
Leverage effects
4
29/09/2004
EN
EUROPEAN COMMISSION
29/09/2004
EN
Regional Policy
Paperwork: proposed new legal architecture
General Regulation
on the ERDF, the ESF
and the Cohesion Fund
ERDF Regulation
ESF Regulation
Cohesion Fund Regulation
Council by unanimity,
assent of EP
ERDF, ESF: Codecision;
Cohesion Fund:
Consultation
Regulation establishing a
European grouping for
cross-border cooperation (EGCC)
Later: Single Commission Regulation
Information, Publicity, Financial
control and Financial corrections
5
New: General Regulation applies to the Cohesion Fund; a new Rural Development
Fund now outside Cohesion Policy; one Commission regulation instead of
five for specific aspects; eligibility rules simplified and incorporated in the
General and Funds' regulations.
EUROPEAN COMMISSION
Regional Policy
29/09/2004
EN
The reform’s guiding principles
Affordability: 336.1 billion euros, 0.41% of GNP
same % as today when rural development and
fisheries resources are included. One-third of the
Financial Perspective, 2007-2013
Concentration:
Thematic: Lisbon and Gothenburg agendas, Broad
Economic Policy Guidelines and the European
Employment Strategy
Financial:
6
Convergence: 78% of total resources
Competitiveness: 18%
Cooperation: 4%
EUROPEAN COMMISSION
Regional Policy
29/09/2004
EN
Simplification:
• three strategic priorities
• three Funds (ERDF; ESF; CF)
• no micro-zoning of eligible areas
• mono-fund programmes
• a more flexible financial management:
- financial management at the level of the
priorities
- proportionality regarding control, evaluation
and monitoring (threshold: Community
cofinancing below 33% and EUR 250 million
of total costs);
- eligibility of expenditures: national rules
Decentralisation: stronger role for the regions, local
actors, urban authorities
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EUROPEAN COMMISSION
29/09/2004
EN
Regional Policy
Financial Concentration, 2007-2013 (total: EUR 336.1 billion)
External borders: 1.6
Cross-border
cooperation: 4.7
Phasing-in
for regions in Obj. 1
between 2000-06
Regions outside
convergence
9.58
Transnational
cooperation: 6.3
Networks: 0.6
Regions below 75% GDP
48.31
177.80
62.99
Special programme for
outermost regions: 1.1
22.14
Cohesion Fund
I. Convergence (78%)
Statistically affected regions
Art. 15-18 Gen.Reg.
and Fin. Perspect.
8
II. Regional competitiveness
and employment (18%)
III. European territorial
cooperation (4%)
EUROPEAN COMMISSION
29/09/2004
EN
Regional Policy
Geographical dimension
Canarias (E)
Regions below or close to 75% threshold
GuadeloupeMartinique
GDP/head average
1999-2000-2001
Guyane (F)
below 75% in EU25
statististical effect
below 75% in EU15
above in EU25
Réunion
Açores (P)
Madeira
"naturally" above
75% because of
growth
other regions
Index EU 25
= 100
Art. 5+6 Gen.Reg.
Source: Eurostat
R e g io GI S
EUROPEAN COMMISSION
Regional Policy
GDP per head: position in NIRL and IRL
Northern Ireland:
•89.2 % of EU-25 average
•ranking 147 (of 254 regions)
Ireland:
•Border, Midland, Western: 92.0 %
•ranking 139
•Southern and Eastern: 138.7 %
•ranking 22
Cut-off convergence objective : 185
Statistical effect cut-off: 164
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29/09/2004
EN
EUROPEAN COMMISSION
Regional Policy
29/09/2004
EN
Thematic concentration: role of ERDF in strategic
objectives I & II
I. Convergence objective:
research and technological development, innovation and
entrepreneurship; information society; environment; risk
prevention; tourism; transport networks/TEN; energy networks
and renewable energies; education and health investments;
direct aids to SMEs. Reinforced by Cohesion Fund in eligible
countries.
Art. 4, 5 ERDF Reg.
11
II. Regional competitiveness and employment objective:
Innovation and the knowledge economy (RTD, technology
transfer, innovation in SMEs)
Environment and risk prevention (NATURA 2000 rehabilitation
of contaminated land; promotion of energy efficiency and
renewable energies)
Access - outside urban areas - to transport and
telecommunication services of general economic interest
EUROPEAN COMMISSION
Regional Policy
29/09/2004
EN
Thematic concentration: role of the ESF in strategic
objectives I & II
“Convergence” and “Regional competitiveness and
employment” objective:
Increasing adaptability of workers and enterprises;
enhancing access to employment and participation in the
labour market;
reinforcing social inclusion of people at a disadvantage and
combating discrimination;
mobilising for reforms in the fields of employment and
inclusion (pacts, partnerships).
Art.
Art.23ESF
ESF Reg.
12
“Regional competitiveness and employment” objective:
expanding and improving investment in human capital
(education, training, post-graduate studies);
strengthening institutional capacity and the efficiency of public
administrations and other organisations (studies, training for
structural fund actors).
EUROPEAN COMMISSION
Regional Policy
29/09/2004
EN
Thematic concentration: role of the ERDF in
strategic objective III
cross-border economic and social activities
entrepreneurship and the development of SMEs, tourism, and
culture; protection of the environment; better access to transport,
information and communication networks and services, and
water and energy systems; social and cultural infrastructures in
particular in the health and education sectors;
transnational cooperation, integrated territorial development: water
and coastal management, accessibility, advanced
communications and information technologies; maritime safety;
risk prevention; R&TD and technological development networks
etc.;
Art.
Art.56ERDF
ERDFReg.
Reg
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networking and exchange of experience among regional and local
authorities: co-operation network programmes, studies, data
collection, and the observation and analysis of development
tendencies in the Union (studies, data collection, and analysis of
Community development trends).
EUROPEAN COMMISSION
Regional Policy
29/09/2004
EN
Pre-programming phase: who get what?
Convergence objective:
• Berlin formula
• Statistical phasing-out
• 4% ceiling
• Cohesion Fund
Competitiveness and employment
• National allocation on objective criteria (GDP,
unemployment, employment, density of population)
• 50-50 split between regional and national programmes
• Competitiveness regions proposed by Member State
• Regional financial allocations on an objective basis
• Urban sub-delegation inside the regional programme
• Special "phasing-in" package
Art.
Art. 20,
35 and
48, 49
36 Gen.Reg.
Gen.Reg.
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Cooperation
• population in eligible regions
EUROPEAN COMMISSION
Regional Policy
29/09/2004
EN
Programming cycle
Community‘s strategic guidelines on cohesion
1
proposed by the Commission,
adpoted 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 Commission
Operational Programmes
3
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
4
Art. 16-21 and
Art. 23-29 Gen.Reg.
28 Gen.Reg.
15
5
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 annual
report of the Commission and Member States
EUROPEAN COMMISSION
Regional Policy
29/09/2004
EN
Implementation: Community contribution rates
Participation rates vary with respect to economic,
social and territorial problems and are calculated as
share of public expenses:
85% for the Cohesion Fund; outermost regions and
outlying Greek islands
75% for the “Convergence” programmes
(exception: 80% for member states with Cohesion Fund)
50% for the “Regional competitiveness and employment” programmes
75% for the “European territorial co-operation”
programmes
+10%
+5%
Art. 51+52 Gen.Reg.
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for “inter-regional co-operation”
(60% maximum) for "regional competitiveness and
employment" programmes for areas with natural
handicaps (islands, mountains, densely populated
areas and regions with external borders before 30 April
2004)
EUROPEAN COMMISSION
Regional Policy
29/09/2004
EN
Implementation: quality & flexibility
Quality and performance reserve: 3% of the
allocations for the “Convergence” and “Regional
competitiveness and employment” objective; Council to
decide in 2011 the attribution by quality criteria
National reserve for unexpected: 1% of the
“Convergence” and 3% “Regional competitiveness and
employment” objective to be allocated for unexpected
economic and social restructuring
Art.
Art. 20,
35 and
48, 49
36 Gen.Reg.
Gen.Reg.
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EUROPEAN COMMISSION
Regional Policy
29/09/2004
EN
Implementation :European grouping for cross-border
cooperation (EGCC)
Background: difficulties in managing cross-border,
transnational and interregional programmes and
projects because of different legal and national laws
and procedures
approach: an institution with a legal personality based
on a voluntary 'convention' between Member States
and/or regions carrying out cross-border, transnational
and interregional programmes and projects based on
Art. 159 Abs. 3 TEC
no financial responsibility for EU funds can be
delegated to the EGCC
Art. 1-3 EGCC Reg.
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EUROPEAN COMMISSION
Regional Policy
29/09/2004
EN
Next steps
End 2004:
PM: 13 October, PEACE II and IFI, 2005-2006
Parallel debate in ECOFIN and GAC
Opinions of the EP, CdR and CES
The "Group of Six"
UK, NL and the question of frameworks
Mid-2005: Adoption of Financial Perspective and
legislation (IIA and Council regulations)
Beginning 2006: Council adopts Strategic Guidelines on
cohesion. Preparation of programmes for 2007-2013
1 Jan 2007: Implementation begins
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EUROPEAN COMMISSION
29/09/2004
EN
Regional Policy
Programmes and
Instruments
Eligibility
Priorities
Allocations
Convergence objective
78.5%
(EUR 264 bn.)
including a special programme for outermost regions
Cohesion Policy
2007-2013
3 Objectives
Budget: € 336.1 bn
•innovation;
Regions with a GDP/head
•environment/
Regional and national 75% of average EU25
risk prevention;
programmes
•accessibility;
Statistical effect:
ERDF
Regions with a GDP/head •infrastructure;
ESF
•human ressources;
75% of EU15
•administrative capacity
and >75% in EU25
•transport (TENs);
Member States
•sustainable transport;
GNI/head 90%
Cohesion Fund
•environment;
EU25 average
•renewable energy
8.38%
= 22.14 Mrd. EUR
23.86%
= 62.99 Mrd. EUR
Regional competitiveness and employment objective
17.2%
(EUR 57.9 bn.)
(0.41% of EU-GDP)
Regional programmes
(ERDF)
and national
programmes
(ESF)
Art. 3-7 and
15-18 Gen.Reg. and
Fin. Perspect.
67.34%
= 177.8 Mrd. EUR
Member States
suggest a list of
regions
(NUTS I or II)
"Phasing-in"
Regions covered by objective 1 beween 2000-06
and not covered by the
convergence objective
•Innovation
•environment/risk
prevention
•accessibility
•European employment
strategy
16.56%
= 9.58 Mrd. EUR
European territorial co-operation objective
Cross-border and
transnational
programmes and
networking (ERDF)
Border regions and
greater regions of
transnational
co-operation
83.44%
= 48.31 Mrd. EUR
•innovation;
•environment/
risk prevention;
•accessibility
•culture, education
3.94%
(EUR 13.2 bn.)
35.61% cross-border
12.12% ENI
47.73% transnat.
4.54% f. networks