EN Regional Policy EUROPEAN COMMISSION Cohesion Policy 2007-2013 Incorporating the Lisbon Strategy Referring to the financial perspectives 2007- 2013 and

ENENRegional Policy

EUROPEAN COMMISSION

Cohesion Policy 2007-2013Cohesion Policy 2007-2013Incorporating the Lisbon Incorporating the Lisbon

StrategyStrategy


StrategyStrategy

Referring to the financial perspectives 2007-2013 and the latest progress report on

Cohesion.

Regional Policy

EUROPEAN COMMISSIONEN

ENEN

22

CohesionPolicy

2007-2013

CohesionPolicy

2007-2013

Discussion up to February 2004Discussion up to February 2004

1. General support for assisting areas below 75% of EU average GDP

2. Pressure to help 'statistically affected' regions

3. Pressure for 'territorial cohesion' (town/country, islands, mountains)

4. The great success and importance of Objective 2 (restructuring of economies hit by change)

5. Divergence over cash and method ( 'one per cent budget', re-nationalisation)

6. Divergence over the Lisbon Agenda

BackgroundBackground

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ENEN

33

CohesionPolicy

2007-2013

CohesionPolicy

2007-2013

The Lisbon Agenda: growth, The Lisbon Agenda: growth, competitiveness, employmentcompetitiveness, employment

1. The Agenda was adopted on 23-24 March 2000

2. Aims to make Europe the most competitive and dynamic economy in the world…

3. Measures on sustainable development were adopted in May 2001 (Gothenburg agenda)

4. Various benchmarks and targets: employment 70% by 2010, R&D 3% of GDP…

5. Recent reports indicate slow progress

backgroundbackground

Regional Policy


ENEN

44

CohesionPolicy

2007-2013

CohesionPolicy

2007-2013

The Lisbon Agenda: mid term reviewThe Lisbon Agenda: mid term review

Key recommendations:

• The need for a spending instrument at EU level

• The need for increased ownership involving the regions and social partners

1. The need for a more strategic approach

backgroundbackground

Regional Policy


ENEN

55

CohesionPolicy

2007-2013

CohesionPolicy

2007-2013

Cohesion Policy in support of Growth and Cohesion Policy in support of Growth and JobsJobs

• Europe must: • renew the basis of its competitiveness,• increase its growth potential and its

productivity • strengthen social cohesion, placing the main

emphasis on knowledge, innovation and the optimisation of human capital.

To achieve these objectives it must • mobilise all appropriate national and

Community resources- including Cohesion Policy

European Council, March

2005

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ENEN

66

CohesionPolicy

2007-2013

CohesionPolicy

2007-2013

Key recommendationsKey recommendations

1) Community resources, including cohesion policy, should be mobilised for 3 dimensions of the strategy – economic, social and environmental.

2) Regional and local actors should take greater ownership of the strategy

3) Greater synergies between Community funds and the EIB in R&D

Spring European Council


Regional Policy


ENEN

77

CohesionPolicy

2007-2013

CohesionPolicy

2007-2013

Key recommendations (cont.)Key recommendations (cont.)

4) Reduction in the general level of state aid

5) Investment in infrastructure

6) Create more jobs with more active employment policies.

7) Integrated guidelines to be issued at Community-level;

• MS to establish national reform programmes on growth and jobs



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88

CohesionPolicy

2007-2013

CohesionPolicy

2007-2013

A more strategic approachA more strategic approach

Staff Working Document SEC (2005) 622 of 2 May 2005 provides guidance to MS in

drawing up national reform programmes

• new reporting structure to include cohesion policy

1. Community Lisbon Programme (what can be done at EU level)

Clearer division of

responsibilities

Clearer division of

responsibilities

Regional Policy


ENEN

99

CohesionPolicy

2007-2013

CohesionPolicy

2007-2013

October 2005: National Reform Programmes submission by Member States

11

January 2006:first Annual Progress Report

submitted by the Commission on the basis of analysis of national reform programmes

22

March 2006:Spring European Council

adoption by European Council of updated recommendations 33

October 2006:submission by Member States of implementation reports

Includes chapter on national strategic reference frameworks and new OPs

44

New reporting structureNew reporting structure

5. Integrated Guidelines

5. Integrated Guidelines

Regional Policy


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1010

CohesionPolicy

2007-2013

CohesionPolicy

2007-2013

Financial perspectives 2007-2013Financial perspectives 2007-2013

The budget is now about 1.07% of GNI

The Commission proposed 1.21%

Six MS want 1%

Parliament has proposed 1.18% (with Cohesion getting 0.41% of GDP)

Proposed compromise for June Summit was 1.06%, with, for Cohesion Policy:

€307bn (not 336bn): 0.37% GDP (not 0.41%)

Convergence 82% (not 78%)

Competitiveness 15% (not 18%)

Territorial co-operation 2% (not 4%)

Financial aspects

Financial aspects

Regional Policy


ENEN

1111

CohesionPolicy

2007-2013

CohesionPolicy

2007-2013

Priorities of the reformPriorities of the reformThree new objectivesThree new objectives

• Convergence and competitiveness (regions below 75% GDP, statistical effect regions and the Cohesion fund)

• Regional competitiveness (former Obj 2&3 with accent on Lisbon/Gothenburg, mainstream URBAN)

• Territorial co-operation (all former INTERREG elements with encouragement to mainstream them also in above objectives)

Reform of the policy

Conclusions

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CohesionPolicy

2007-2013

CohesionPolicy

2007-2013

Priorities of the reformPriorities of the reformAdministrative simplificationAdministrative simplification

• Keep what is known to be effective (programming, leverage, partnership, decentralised management)

• Reduce the more complicated aspects (number of instruments, stages of programming etc.) while augmenting the role of the Council (adoption of strategic guidelines)

Reform of the policy

Conclusions

ENENRegional Policy

EUROPEAN COMMISSION


StrategyStrategy


StrategyStrategy

The latest progress report on Cohesion.

Regional Policy


ENEN

1414

CohesionPolicy

2007-2013

CohesionPolicy

2007-2013

Disparity levelsDisparity levels

Disparities in GDP per head between EU-25 still considerable (2003):

•Latvia – 41% of EU average

•Ireland – 132% of EU average

•Luxembourg – 215% of EU average

•New Member States – below 90% of EU average

Third progress

report

Third progress

report

Regional Policy


ENEN

1515

CohesionPolicy

2007-2013

CohesionPolicy

2007-2013

Regional disparitiesRegional disparities

•Regional disparities remain high (2002)

•189% of the EU-25 average in the 10 most prosperous regions

•36% in the 10 least prosperous ones.

•Over 1/4 of the EU’s population in 64 regions have GDP per head below 75% of EU average.

•90% of population in the new Member States living in regions with GDP per head below 75% of EU average

•13% of population in EU-15 living in regions with GDP per head below 75% of EU average

Thirdprogress

report, Part I

Thirdprogress

report, Part I

Regional Policy


ENEN

1616

CohesionPolicy

2007-2013

CohesionPolicy

2007-2013

Trends in disparitiesTrends in disparities

•since the mid-1990s, average EU growth growth has average just over 2% per year

•regional disparity levels are higher than national disparities but are also falling

•10% of EU25 population living in poorest regions (2.2% of total GDP in 2002; 1.5% in 1995)

•still high levels of internal disparities

Part IPart I

Regional Policy


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CohesionPolicy

2007-2013

50 - 75

75 - 90

90 - 100

100 - 125

125

Index, EUR-27 = 100

<50

Regional Disparities in EU27GDP per head in % in PPP (2002)

Regional Policy


ENEN

1818

CohesionPolicy

2007-2013

CohesionPolicy

2007-2013

Employment ratesEmployment rates

•Employment rates – well short of the 70% Lisbon target •62.9% for the EU25 in 2003•Denmark, Sweden, the Netherlands and the UK – only MS with 70% •22 million additional jobs needed to meet 70% target •In the new Member States, 7 million additional jobs needed to meet 70% target (increase of ¼)•200 of the 254 EU regions are below the target rate•almost 15% of the population lives in regions where the rate is below 55%•employment rates remain low among most of the least prosperous regions.

Part IPart I

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CohesionPolicy

2007-2013

Index EU 25= 100

Geographical Eligibility for Structural Funds Support 2007-2013 Draft April 2005, GDP/head 2000-2001-2002

Objective 'RegionalCompetitiveness and Employment'Phasing-in regions, "naturally" above 75%

Convergence objectivestatistically affected regions

Objective 'RegionalCompetitiveness and Employment'

Convergence objectiveRegions > 75% in EU25)

Source: Eurostat

ENENRegional Policy

EUROPEAN COMMISSION


StrategyStrategy


StrategyStrategy

The Strategic guidelines.

Regional Policy


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2121

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2007-2013

CohesionPolicy

2007-2013

The new Strategic guidelines: building in The new Strategic guidelines: building in the Lisbon agenda (1)the Lisbon agenda (1)

I) Making Europe and its regions a more attractive place to invest and work

• expand and 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

PrioritiesPriorities

Regional Policy


ENEN

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CohesionPolicy

2007-2013

CohesionPolicy

2007-2013

The new Strategic guidelines: building in The new Strategic guidelines: building in the Lisbon agenda (2)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

Part IV) Territorial Cohesion and co-operation• The contribution of cities to growth and jobs

• Supporting the economic diversification of rural areas

• Co-operation: cross border/trans-national/inter-regional

PrioritiesPriorities

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2323

CohesionPolicy

2007-2013

CohesionPolicy

2007-2013

TimetableTimetable

June 2005: (No) Decision by Council on Financial Perspectives

July 2005 Draft Community Strategic Guidelines adopted by Commission: public consultation

Autumn 2005: - Decision by Council and European Parliament on cohesion policy regulations

- Community Strategic Guidelines published

- Preparation of National Strategic Reference Frameworks

2006 (?): Preparation of programmes for period 2007-2013

1 Jan 2007: Implementation begins: regime of 12ths if no budget

Next stages

Documents

EN Regional Policy EUROPEAN COMMISSION Cohesion Policy 2007-2013 Incorporating the Lisbon Strategy Referring to the financial perspectives 2007- 2013 and