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Regional & Urban Policy

Investments for growth & jobs

Promoting development and good

governance in EU regions and cities

6th Report on economic, social and territorial cohesion, July 2014


Key messages & conclusions

Eric Von Breska,

Head of the Economic Analysis Unit

DG for Regional and Urban Policy


6th Cohesion Report

• Art. 175 of the consolidated treaty:

'The Commission shall submit a report to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions every three years on the progress made towards achieving economic, social and territorial cohesion …'

• Exceptionally, the report has been delayed by one year to report on the new Cohesion Policy programming period


New structure instead of old

1. Smart growth

2. Inclusive growth

3. Sustainable growth

4. Public investment, growth and the crisis

5. Good governance

6. Evolution of Cohesion Policy

7. Impact of Cohesion Policy

8. Cohesion Policy in 2014-2020

1. Economic, social and territorial situation

2. National policies and cohesion

3. Other EU policies and cohesion

4. Impact of Cohesion Policy


Regional disparities increased

65

70

75

80

85

90

95

100

105

110

115

120

65

70

75

80

85

90

95

100

105

110

115

120

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

GDP per head Unemployment rate Employment rateCoefficient of variation, 2000=100

Coefficient of variation of GDP per head, employment rate (15-64),

unemployment rate, EU-27 NUTS 2 regions, 2000-2012

Source: Eurostat, DG REGIO calculations


Economic disparities

• Crisis halted regional economic convergence

• National GDP projections show slow convergence post-crisis

-6

-4

-2

0

2

4

6

8

-6

-4

-2

0

2

4

6

8

2001 2003 2005 2007 2009 2011 2013 2015

Less developed Member States

Moderately developed Member States

Highly developed Member StatesAnnual average change (%)

Growth of GDP per head in real terms, EU-28, 2001-

Source: Eurostat


Crisis reinforced role of Cohesion Policy

• Crisis led to a rapid reduction of public investment as a part of the fiscal consolidation efforts

200

220

240

260

280

300

320

340

200

220

240

260

280

300

320

340

2007 2008 2009 2010 2011 2012 2013

EU-28 Public investment (GFCF)

EU-28 Public investment without 2007-2013Cohesion Policy payments (ERDF, ESF, CF)

EUR billion at 2005 prices

Impact of Cohesion Policy on public

investment, 2007-2013

Source: Eurostat and DG REGIO


Cohesion policy 2007-2013 and national counterpart represents a significant proportion of public investment in Member States

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Slo

vaki

a

Lith

uan

ia

Hu

nga

ry

Bu

lgar

ia

Latv

ia

Po

rtu

gal

Esto

nia

Cze

ch R

epu

blic

Po

lan

d

Mal

ta

Ro

man

ia

Slo

ven

ia

Gre

ece

Spai

n

EU 2

7

Ital

y

Cyp

rus

Ger

man

y

Fin

lan

d

Fran

ce

Un

ited

Kin

gdo

m

Be

lgiu

m

Swed

en

Au

stri

a

Irel

and

Net

her

lan

ds

Den

mar

k

Luxe

mb

ou

rg

Average 2011-2013

SF and CF (and national co-financing) as % of total public investment (GFCF and capital transfers)


Tangible benefits of cohesion policy in 2007-2013

• 594 000 jobs created – at least 262 000 in SMEs

• 77 800 start-up companies supported

• 2 700 KM of new or reconstructed railways

• 25 800 KM of new or reconstructed roads

• Broadband access for 5 million citizens

• Access to clean drinking water for 3.2 million citizens

• ESF: 15 million participants per year

• 940 financial instruments in 25 Member States rising EUR 12.6 billion € OP funding (including EUR 8.36 billion structural Funds) for equity, loans and guarantees


Cohesion Policy 2014-20 in the EU economic policy mix

Country-specific recommendations are the reference for Partnership

Agreements and programmes


Cohesion Policy 2014-2020

• Focus on growth-enhancing investments

• Concentration on Europe 2020 priorities

• Improving governance

• Linked to the European Semester

• Linked to structural reform through ex-ante conditionalities


State of programming 2014-2020

• 16 Partnership Agreements (PAs) adopted

• All remaining PAs have been commented and will be adopted by the end of the year

• 197 out of the 205 REGIO-led Operational Programmes (Ops) have been submitted.

• 181 out of 187 ESF/YEI OPs have been submitted, incl. 33 OPs covering YEI

• So far 6 OPs have been adopted.


33,5

17,0

3,5

7,7

1,1

6,2

11,0

2,9

25,6

15,5

3,6

30,1

32,7

13,7

40,0

3,2

26,3

20,9

30,7

0 5 10 15 20 25 30 35 40 45

11. Good governance

10. Education

09. Social inclusion

08. Employment

07. Network infrastructure

06. Environment

05. Climate change adaptation

04. Low-carbon economy

03. SMEs support

02. ICT

01. Innovation and R&D

ESF ERDF CF

EUR billion at current prices

Allocation to thematic objectives by Fund (EUR), 2014-

Source: Final and draft partnership agreements as of 1 June 2014


30,2

22,8

15,8

31,2

31,5

18,2

12,1

38,2

0 5 10 15 20 25 30 35 40 45

ESF Priorities(TOs 8-11)

Networkinfrastructure

(TO 7)

Climate changeadaptation andenvironment

(TOs 5-6)

ERDF concentrationpriorities(TOs 1-4)

2014-2020 2007-2013

% of total (excl. Tech. Assist.)

Allocation by thematic objective, EU-28, 2014-2020

Source: SFC and Final and draft partnership agreements as of 1 June 2014


Ex-ante conditionality is challenging

13

20

18

17

16

18

14

14

9

16

18

4

5

7

9

3

5

9

11

15

7

7

3

1

5

3

2

2

2

8

2

3

2

4

2

3

3

2

3

3

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28

11. Good Governance

10. Education

09. Social inclusion

08. Employment

07. Network Infrastrastructure

06. Environment

05. Climate change adaptation

04. Low-carbon economy

03. SME support

02. Information Communication…

01. Innovation and R&D

Number of MS

EAC notcompletelyfulfilled

EAC fulfilled

Not applicable

Not available

Source: Commission assessment of PAs Based on information available in June 2014


Next steps

• Full reporting on Cohesion Policy 2014-2020 programming period by end of 2015

• Ex-post evaluation of 2007-2014 by end of 2015

• Midterm review/revision of MFF by end of 2016

• 7th Cohesion Report in 2017 (including policy proposals post 2020)


6th Cohesion Report

Manuela GELENG

Head of Unit, ESF Policy and Legislation

DG Employment, Social Affairs and Inclusion

European Commission


Overview

• 1. Employment, social and education trends (chapter 2 of the Report)

• 2. Policy framework and ESIF (ch.2)

• 3. ESF 2014-20 support to institutional capacity building and public administration reform (ch.5/ ch.8)

• 4. State of play programming of ESF and YEI OPs (ch.8)


Key trends

The crisis has widened disparities in employment rates;

EU2020 employment target of 75% is currently far from reach;

Unemployment highest in the EU in over a decade; major risks for youth;

Early school leaving rates improve but significant challenges for education and training systems;

At-risk-of-poverty rates increased in 17 MS;

Severe material deprivation is on the rise 11% of the EU population in 2012. It is worst in southern and eastern MS.


EU Policy framework and ESIF

The EU2020 policy framework for "inclusive growth": higher employment rates as well as greater focus on social inclusion

EU2020 is now the backbone of the ESIF legal framework 2014-2020 => Funds will have to concentrate on a limited number of priorities (for the ESF, up to 5 investment priorities)

Despite the increasing needs as outlined already, need to ensure value for EU investments.


ESF 2014-20 support to institutional capacity building and public administration reform

ICB is a key EU2020 and CPR priority

Need to differentiate between stricto senso capacity to manage EU funds and the broader needs for comprehensive public administration reforms.

A strategic approach to ICB is a prerequisite for successful reforms (though not present in all MS)


State of play ESF/YEI programming

187 ESF/YEI OPs expected; 181 officially submitted, incl. 33 OPs covering YEI

5 OPs adopted (incl. 2 YEI dedicated OPs)

Overall, close link between CSR and MS selection of investment priorities for the ESF

ESF continues to be the main employment and human capital EU instrument, now boosted also by YEI for youth employment

More could be desired as regards funding allocations to Roma, social systems and PES reforms, education, and the ambition of public administration reforms.


Further information

ESF thematic publications 2014-2020:

Youth employment/YEI: http://ec.europa.eu/esf/BlobServlet?docId=450&langId=en

Promoting inclusive growth: http://ec.europa.eu/esf/BlobServlet?docId=445&langId=en

Promoting Good Governance: http://ec.europa.eu/esf/BlobServlet?docId=444&langId=en

Simplified cost options with the ESF in Italy: http://ec.europa.eu/esf/BlobServlet?docId=453&langId=en

http://ec.europa.eu/esf/BlobServlet?docId=450&langId=en





6th Cohesion Report

Lewis Dijkstra

Deputy Head of the Economic Analysis Unit

DG for Regional and Urban Policy


Chapter 1


Chapter 1


Chapter 1


Chapter 1


Chapter 1


Major roads 1955-2030

Chapter 1



Chapter 1



Chapter 1



Chapter 1



Chapter 1



Chapter 1



Chapter 1


Regional competitiveness

• Boosting competitiveness requires more investments in innovation, entrepreneurship, education, digital and physical networks and more exports & FDI

Chapter 1


Chapter 2


Chapter 2


Chapter 2


Chapter 3


Chapter 3


Chapter 3


0

5

10

15

20

25

30

35

40

45

50

Share

of

renew

able

energ

y in g

ross f

inal energ

y c

onsum

ption,

%

Renewable energy consumption, 2006-2012

2006

2012

Target 2020

Chapter 3


Governance

Poor governance slows down Cohesion Policy implementation, reduces its impact and hinders economic growth and entrepreneurship

Chapter 5


Chapter 5


A growing source of investment

0,00

0,05

0,10

0,15

0,20

0,25

0,30

0,35

0,40

0,00

0,05

0,10

0,15

0,20

0,25

0,30

0,35

0,40

19

76

19

81

19

86

19

95

20

04

20

07

20

12

CF ESF ERDF% of gross national income (GNI)

Cohesion Policy expenditure, 1976-2012

Source: DG BUDG, AMECO, DG REGIO calculations

EU-9 EU-10 EU-12 EU-15 EU-25 EU-27

Chapter 6


A stronger focus on key priorities

0

20

40

60

80

100

1989-1993 1994-1999 2000-2006 2007-2013

Technical assistance

Environment

Employment, education,social inclusion

Infrastructures (Transport,Energy, Telecom)

Business support, R&Dand innovation

% of total

Composition of Cohesion Policy investment in less developed regions, 1989-

Source: DG REGIO


Europe 2020

• Less developed regions furthest removed from both EU and national 2020 targets

Chapter 6


Impact on EU economies

Evaluations have shown that cohesion investments have contributed to improving the structure of the EU economies by:

• enhancing the performance of enterprises, increase their investment and employment, particularly for SMEs.

• increasing firms activities in R&D and their capacity to innovate

• improving public infrastructure

• improving the matching between supply and demand on the labour market

At the macro level, model simulations show that Cohesion Policy has a significant impact on GDP, in particular in the Member States which are the main beneficiaries of the policy.

Chapter 7


• Cohesion Policy will significantly boost GDP per head in less developed regions

• The impact over time will spread to main trade partners

• Better core TEN-T network strengthens market integration and specialisation.

Chapter 8


Chapter 8


Conclusions

• Real challenges

• Regional economic disparities

• Increasing unemployment, poverty and exclusion

• Real impact

• Growth and jobs, innovation, networks, sustainable development

• Real change

• Linked to Europe 2020 and the European Semester

• Concentrated on EU priorities

Documents

Investments for growth & jobs - DEUkisi.deu.edu.tr/sedef.akgungor/Yerel ve Bolgesel Yonetimler/6th... · Investments for growth & jobs ... social systems and PES reforms, education,