Europe 2020

Slovenia 2014-2020

DANILO ČEHScientific Research Centre

BISTRA PTUJ

Workshop -- project REG-NET

18. Februar 2012 10.00Zala County House, Zalaegerszeg Kosztolányi street 10.

Slovenia is now in the preparation of strategic and operational documents for the period 2014-2020, which will set the priorities and direction of development in the coming years.

At the national level, government prepared Slovenia's Development Strategy (SDS) and the Program of national development priorities and investment (DRPI, implementing SDS document).

At the EU level, all Member States must prepare

partner agreements and operational programs (OP).

Along with the preparation of Slovenia's Development Strategy (to be using the same methodology) also begun preparation of Regional Development Programs 2014-2020 for each region, which are co-ordinate from regional development agencies.

Regional Development Program is a key strategic and policy document on the regional level.

Each RDP is prepared for the area of the region.

RDP id dividend in two parts:

The strategic part contains an analysis of regional development potentials, identification of key obstacles and advantages of the region. It contains also development objectives and priorities of the region and define development specialization of the region.

Second part of document „program part“includes programs/projects to promote development in the region with the time and financial evaluation and system monitoring, assessment and organization of the implementation of the RDP.

Regional Development Programs

Regional Development Programs 2014-2020

Regional development programs will be substantial documents that will be base of an assessment of the situation in the region and identification of development potential identified areas in which we will invest in the next programming period in order to achieve specific objectives defined at the national level. In this way, we will ensure that regional development programs are one of the pillars to achieve common goals.

In addition to the specific objectives to be established at the national level and to which they will have to contribute to the implementation of the region in their regional development programs every regions muss define (where it is possible) the specific objectives, which are derived from their specific (regional development potentials) of the region –so called smart specialization of regions.

Some of 'development specific objectives of Slovenia in the period 2014 - 2020 – Short ssummarySlovenia will focus in the programming period 2014-2020, on the following thematic priorities *:

Increasing the competitiveness of small-and medium-sized enterprises.Strengthening research, technological development and innovation.Youth Employment.

To a smaller extent also on:

To promote sustainable transport and removing „problems“ in key network infrastructures,Increase the availability of information and communication technologies and their use and quality Improving institutional capacity and efficient public administration.

It is important that the regions in the programming period 2014-2020 specialize in development and to finance regional projects (no more individual municipal projects) that include actors (economy, local communities, universities ...).

Regional Development Programs 2014-2020

The key of RDP is to identify the regional and sectorial projects that implement development priorities. In the process of preparing the agreement, these projects are upgraded and coordinate. The result of this is their direct approval by the Managing Authority and they are included in the plan of development programs of the state budget and municipal budgets.

It is expected that the Regional projects will be co-financed with EU funds through the budget line of Ministry of Economy and through the mechanism of "integrated territorial investment". Sectorial projects will be financed with EU funds through the budgets of other ministries. This means that the inclusion of the project in the RDP brings a certain priority for funding. However, this does mean that a project that is not included in the agreement for the RDP and the development of the region as crucial to the development will not be able to be co-financed with EU funds.

Europe 2020Europe 2020 is the European Union’s ten-year growth strategy. It is about more than just overcoming the crisis which continues to afflict many of our economies. It is about addressing the shortcomings of our growth model and creating the conditions for a different type of growth that is smarter, more sustainable and more inclusive.

To render this more tangible, five key targets have been set for the EU to achieve by the end of the decade.

The 5 targets for the EU in 2020:

1. Employment 75% of the 20-64 year-olds to be employed

2. R&D 3% of the EU's GDP to be invested in R&D

3. Climate change / energygreenhouse gas emissions 20% (or even 30%, if the conditions are right) lower than 199020% of energy from renewables20% increase in energy efficiency

4. Education. Reducing school drop-out rates below 10%at least 40% of 30-34–year-olds completing third level education

5. Poverty / social exclusionat least 20 million less people in or at risk of poverty and social exclusion

The strategy also includes seven ‘flagship initiatives’ providing a framework through which the EU and national authorities mutually reinforce their efforts in areas supporting the Europe 2020 priorities such as:

Each CSF Fund shall support the following thematic objectives in accordance with its mission in order toncontribute to the Union strategy for smart, sustainablem and inclusive growth:

(1) strengthening research, technological development and innovation;(2) enhancing access to, and use and quality of, information and communication technologies;(3) enhancing the competitiveness of small and medium-sized enterprises, the agricultural sector (for the EAFRD) and the fisheries and aquaculture sector (for the EMFF);(4) supporting the shift towards a low-carbon economy in all sectors;(5) promoting climate change adaptation, risk prevention and management;(6) protecting the environment and promoting resource efficiency;(7) promoting sustainable transport and removing bottlenecks in key network infrastructures;(8) promoting employment and supporting labour mobility;ESF(9) promoting social inclusion and combating poverty;ESF(10) investing in education, skills and lifelong learning;ESF(11) enhancing institutional capacity and an efficient public administration.ESFThematic objectives shall be translated into priorities specific to each CSF Fund and setout in the Fund-specific rules.

Cohesion policy 2014-2020325 mrd. € – Cohesion policy remains a key EU development policy2 Main objectivesInvestment for growth and jobs in the Member States and regions (96,5%):

The Structural Funds(ERDF and ESF):

convergence regions (48%)transition regions (11,6%) competitiveness regions (15,8%) Cohesion Found(20,4%)

Territorial Cooperation between the different cooperation components as follows mrd € (3,5%):•cross-border cooperation (6,6 mrd. €)•transnational cooperation (1,8 mrd. €)•interregional cooperation (0,5 mrd. €)

New Programmes and their successors:

2014-20 2007-13

Horizon 2020 Framework 7th Programme Competitiveness & Innovation

   

Territorial Cooperation Programmes – Interreg

Cross- border cooperation Transnacional cooperations

Interreg IVC URBACT and ESPON

Connecting Europe TEN-T      

Erasmus for All Lifelong Learning (Erasmus, Leonardo Comenius, Grundtvig, Jean Monnet)

Tempus Youth for Action ALFA and EDULINK

LIFE LIFE +      

Competitiveness & SMES – COSME

Competitiveness & Innovation (access to finance schemes)

Entrepreneurship & Innovation Programme

 IEE  

Creative Europe Culture MEDIA MEDIA MUNDUS  

HORIZON 2020 – FRAMEWORK PROGRAMME FOR RESEARCH AND INNOVATION

With over €80bn, Horizon 2020 (H2020) will be the largest European Transnational Programme post 2013. H2020 will replace two major programmes – Framework Programme for Research (FP7) and the Competitiveness and Innovation Programme (CIP) – and it will be implemented using a number of different funding instruments, in particular grants, prizes, procurement and debt finance and equity investment. The Programme will be delivered through three different priorities:

excellence in the science base (26% of budget); industrial leadership and competitive framework (30%); and societal challenges (44%).

Significant changes and opportunities are as follows.

Societal challenges will be a key component of H2020. R&D activities will cover the full cycle, from research to market. The focus will be on six particular challenges: health, demographics changes and well-being; food security and the bio-based economy; secure, clean and efficient energy; smart, green and integrated transport; transport and mobility in urban areas; climate change and resource-efficiency; secure, clean and efficient energy; and innovative and secure societies.

Sustainable development will be an overarching objective accounting for 60% of the total programme (of which 35% is expected to be allocated to climate change actions alone).

15% for Enabling and Industrial Technologies and Societal Challenges will be spent very much like the Small Business Innovation Research programme in the US (http://www.sbir.gov). This works through a competitive awards-based program, to allow small businesses to explore their technological potential and provides the incentive to profit from commercialisation.

The intervention rate will rise to 100% for research actions and 70% for actions closer to market replication. The Smart Cities and Communities Scheme, which was launched last year, will continue under H2020. This will support

the deployment of innovative low carbon technologies in urban settings.

Funding programme “Intelligent Energy Europe” in “Horizon 2020

The European Commission has started a public consultation on the future of the funding programme „Intelligent Energy Europe“(IEE). The “IEE’s” current funding period ends in 2013. From 2014 onwards a new programme will be started, which will, however, no longer be part of the “Competitiveness and Innovation Framework Programme (CIP)”. “Intelligent Energy Europe” will be integrated into the future Framework Programme for Research and Innovation “Horizon 2020” (2014 – 2020). As part of “Horizon 2020”, “IEE” will complement the in “Horizon 2020” suggested core priorities in the area of Energy research. The new “IEE” will focus especially on activities supporting the market uptake of energy efficient innovations. Special supporting measures aim to remove market barriers and mobilise investments in energy efficient technologies and products.

EUROPEAN TERRITORIAL COOPERATION (ETC) PROGRAMMES

INTERREG is transnational ERDF funding. Three types of INTERREG Programs will be supported.

One Interregional Cooperation Programme (the successor of INTERREG IVC) covering the entire EU and supporting networking activity to enhance the implementation of ERDF operational programmes.

Several Transnational Cooperation programmes (the successors of INTERREG IVB). The geographical areas of the new B Programs will be similar to the current Programs.

Several Cross-border Cooperation Programs..

Significant changes and opportunities are as follows.

For partners in the region which are well experienced in the development and implementation of the projects.

The major concern for the new period is that each INTERREG B Operational Programme will only be able to select four out of the 11 thematic objectives highlighted in the General ERDF/ESF Regulation. Solutions often need to be tackled from many different angles and this may be difficult to achieve if programmes are only limited to four priorities.

There is a desire to introduce some geographical flexibility into the programmes by allowing non-eligible regions (even non-EU countries) to join or lead INTERREG projects, however how this will work in practice is not yet clear.

There is also a desire to simplify the management of the projects and a staff salary flat rate of 15% of the direct cost has been introduced. This certainly needs clarification. Staff salary in most INTERREG B projects are often over 50% of the budget (for INTERREG C it is often much higher). Salary is also often used as match funding to the projects. Such a restriction on salary cost will certainly impact on the ability of partners to engage with the programme.

The thematic objectives referred to in Article 9 of Regulation (EU) No […]/2012 [the CPR] shall be concentrated as follows:

(a) up to 4 thematic objectives shall be selected for each cross-border cooperation programme;

(b) up to 4 thematic objectives shall be selected for each transnational cooperation programme;

(c) all thematic objectives may be selected for interregional cooperation programmes pursuant to Article 2(3)(a).

CONNECTING EUROPE FACILITY (CEF)

In the draft regulation for the Connecting Europe Facility the EC presents its ideas on how to accelerate the deployment of priority energy, transport and IT infrastructure projects by concentrating resources, simplifying and enhancing permission procedures and making use of innovative financial instruments.

Significant changes and opportunities are as follows.The fund will have an allocation of €50bn, of which €10bn will come from the Cohesion Fund to finance transport infrastructure projects in eligible Member States . The greater share of the allocation will go to transport infrastructure: €31,7bn. The remaining funding will be split €9.2bn for telecommunication projects and €9.1bn for energy. The money will serve primarily to finance the transport, energy and telecommunications priority corridors. The fund will provide grants for projects or support financial engineering instruments (loans, guarantees, investment funds, debenture loans) and it will be possible to combine both types of support. Co-financing rates will depend on the sector, type of project and geographic location. For transport, for example, studies can be co-financed at 50% and works at 20% (as a general rule, because the maximum can rise to 30% for projects aimed at reducing bottlenecks and 40% for cross-border sections of projects). Perhaps the biggest difference from the previous programme is the replacement of the Trans-European Networks (TENs) with the CEF, although how this will work in practice is not yet entirely clear – the EC has indicated that the programme will operate through agencies (much like the current TENs programmes), but what and where these agencies will be is not yet certain.Another significant question is how projects outside the focus of the identified core network can be funded (if at all) under CEF. This will have a major impact on any opportunities for GM.

ERASMUS FOR ALL

Erasmus for All (€15.21bn) will be the programme for education, training, youth and sport. It will bring together seven programmes from the existing Lifelong Learning Programme, Youth in Action, and five international cooperation programmes. It will be implemented through three key actions.

Trans-national learning mobility (65%) – mainly for students. Co-operation activities between education institutions (25%) Policy support to gather evidence on the effectiveness of education investments (4%). Two separate pillars for "Jean Monnet Initiative" and "Sport Action" will also be part of Erasmus for All.

Significant changes and opportunities are as follows.

In addition to the three key actions, two new elements will be part of Erasmus for All: a loan guarantee scheme to help Master's degree students to finance their studies abroad; and the creation of 400 'knowledge alliances' (partnerships between higher education institutions and businesses) and 'sector skills alliances' (partnerships between education and training providers and businesses).

Getting people from all backgrounds skilled and educated has been a key component of the current Leonardo and Grundtvig programmes. This strong social dimension of the current learning programmes is not as well reflected in the future programme. The clear focus of Erasmus for All is on learning mobility within higher education, which accounts for 25% of the budget. Vocational education, training and adult learning will total 17%, while youth and schools will have 7% of the budget each.

LIFE

LIFE is the European Programme supporting environmental and nature conservation projects. As per its predecessor (LIFE+) the Programme will comprise three priorities: biodiversity (50% of the budget);environment and resource efficiency; andenvironmental governance and information

Significant changes and opportunities are as follows.Three new sub-programmes (€800m) have been introduced: climate change mitigation, climate change adaptation and climate governance and information. The co-financing rates have been increased from 50% to 70%. In turn, however, VAT and permanent staff not specifically recruited for a project will not be eligible. Existing staff are not only an important source of match funding to a project, but they are often best suited to work on a project. Excluding the related staff costs from funding could adversely affect how organisations engage with the programme. A new type of action will be introduced – “Integrated Projects” – to improve the implementation of environment and climate policy on a larger territorial scale (regional, multi-regional, national).There will also be scope for supporting innovative financial instruments through the programme.

COMPETITIVENESS OF SMES (COSME)

With a planned budget of €2.5bn COSME will primarily focus on access to finance and support for the internationalisation of enterprises. Significant changes and opportunities are as follows.

The main beneficiaries will be: existing entrepreneurs (small businesses in particular); future entrepreneurs (including young people); and national, regional and local authorities (some support may be provided for the development and implementation of effective policy reform).

€1.4bn will be allocated to financial instruments, while the remainder will be spent for financing the Enterprise Europe Network, international industry cooperation and entrepreneurship education.

COSME claims to provide a much easier system for entrepreneurs and small businesses to access finance. The financial instruments will include both a debt and an equity facility. As regards the debt facility, EC will be providing enterprises and in particular SMEs with a Loan Guarantee Facility.

The Loan Guarantee Facility will cover loans up to €150,000 with a minimum maturity of 12 months. This guarantee facility will be supplemented by other guarantee schemes supported by Horizon 2020, which will be accessible for more innovative SMEs with loan amounts of over €150,000.

CREATIVE EUROPE

With a proposed budget of €1.8bn, Creative Europe will be the programme to promote cultural and linguistic diversity in Europe.

Significant changes and opportunities are as follows.

The new programme will consist of three strands: Culture, MEDIA and trans-sectoral strand. The new Programme will allocate more than €900 million in support of the cinema and audiovisual sector (area covered by current MEDIA programme) and almost €500 million for culture. The EC is also proposing to allocate more than €210 million for a new financial guarantee facility.

European UnionCohesion Policy

│ 24

A fair system for all EU regions(eligibility simulation)

3 categoriesof regions

< 75 % of EU averageGDP/capita*

*index EU27=100

75-90 % > 90 %

Less developed regions

Transition regions

More developed regions

Regional GDP figures: 2006-07-08© EuroGeographics Association for the administrative boundaries

European UnionCohesion Policy

How will funding be allocated?

68,7%

11,6%

15,8%

0

10

20

30

40

50

60

70

80

90

100

119,2

72,4

307.1

0

50

100

150

200

250

300

350

400

450

500

Budget allocation (in %)

Population covered

(in millions)

Less developed regions/MS Transition regions More developed regions

Cohesion Fund¹ 66.3

Less developed regions 163.1

Transition regions 31.5

More developed regions 50.3

European Territorial Cooperation

8.9

Outermost regions and sparsely populated areas

1.3

Total 324.7

¹ €10 billion from the Cohesion Fund will be allocated to the Connecting Europe Facility

Objectives

Deliver the Europe 2020 strategy objectives

of smart, sustainable and inclusive growth

Focus on results

Maximise the impact of EU funding

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THANK YOU FOR YOUR ATTENTION!

For further information about SRC Bistra Ptuj:

www.bistra.si

Danilo Čeh:

danilo.ceh@bistra.si