REGIONAL POLICY

EUROPEAN COMMISSION

Integrated urban development and EU Cohesion Policy Past, present, future

Alexander FERSTL, European Commission, Directorate-General for Regional PolicyBrno, 30 September 2010

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Some facts about cities

The majority of Europeans live in cities (73%)

Only 7% live in metropolis with over 5 mio. Inhabitants.

Medium-sized cities and small towns are charactistic for Europe’s settlement structure - regional or sub-regional centres play important roles.

Over 60% live in around 1.000 medium-sized cities with over 50.000 inhabitants.

Over 85% of the EU's GDP is generated in urban areas, which act as drivers of regional or national economies.

Social exclusion and polarisation is a predominantly urban phenomenon.

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What is at stake for cohesion policy?

Meeting our objectives in terms of...

• Social inclusion (inner-city disparities, disadvantaged neighbourhoods)

• Economic competitiveness (economic growth poles, knowledge economy and innovation capacities)

• Territorial cohesion (polycentric development, linkages between agglomerations and their hinterland, urban sprawl)

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Economic competitiveness

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Berlin: Neighbourhood Unemployment Rate, 2001Neighbourhood Unemployment in Germany, Belgium and France 1999-2001

0%

10%

20%

30%

40%

50%

60%

München

Bonn

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ain

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uhr

Regensburg

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Wuppert

al

Mönchengla

dbach

Köln

Trier

Ham

burg

Nürn

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Essen

Bie

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men

Hannover

Dort

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ssel

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Venezia

Milano

Firenze

Trieste

Torino

Genova

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Cagliari

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Cata

nia

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asbourg

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ille

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%

Highest neighbourhood unemployment rateCity unemployment rateLowest neighbourhood unemployment rate

GERMANY

BELGIUMFRANCE

Source: Urban Audit

ITALY

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Multi-fold European targets...

• Keeping and developing a well-balanced, poly-centric urban structures and strengthening the links to the surrounding territory

• Using and fostering the cities’ potential for economic growth and job creation at regional, national and EU level – Improving the cities’ attractiveness for investment

• Achieving environmentally sustainable urban systems (“green cities”) and promoting the “Compact City”

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• Combatting social exclusion and economic deprivation within cities

• Enhancing networking and mutual learning between cities (Co-operation)

• Valorising cultural heritage and strengthening historic town centres (“The European City”)

• Integration of different objectives?

Multi-fold European targets...

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What have we done for urban development up to 2007?

• Starting points: “Innovative actions” and Community Initiatives– 1989-1994 Urban Pilot-Projects Phase I– 1994-1999 URBAN Community Initiative – 1997-1999 Urban Pilot-Projects Phase II– 2000-2006 URBAN II Community Initiative

• Focus on inner-city disparities, disadvantaged neighbourhoods and social inclusion – area-based approach

• Common “methodology”: Integrated (cross-sectoral) urban development – URBAN Acquis

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QualificationEducation

Good governanceParticipation

Exchange ofexperience Networking

Financing urban renewal

EnvironmentalIssues

Urban Mobility

Social inclusion

Economic development

Urban PlanningPhysical

regeneration

URBANAcquis

Programme (Management)Integrated urban development plan

The concept of integrated urban development

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Lessons learnt

• Integrated urban development works as an approach– Different “sectoral” measures combined in a target area maximise

the impact (no “single projects”)– Suitable in- and outside deprived neighbourhoods and in different

types of cities (small towns – neighbourhoods in big cities)

• Relatively small financial incentives lead to a “leverage effect” – Mobilisation of private and further public investment – One pot of money for various actions

• The active involvement of local communities is absolutely necessary– Self-sustaining projects, high visibility of the Union

• Networking and exchange of experience brings additional value

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Urban actions in EU Cohesion Policy 2007-2013

1. Operational Programmes: The URBAN Community Initiative becomes part of the funding “mainstream”– “URBAN mainstreaming”: all regions can develop their area-based,

URBAN-type actions– More regional and national responsibility – different uptake in

Member States (best practice CZ and ES)– Focus of the actions widely remains on disadvantaged urban areas

and social inclusion, but also includes more potential-based approaches

– ESF cross-financing and local involvement sometimes problematic

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Urban actions in EU Cohesion Policy 2007-2013

2. Operational Programmes: the importance of urban development for EU investment has been increased in other funding areas– Actions to foster urban competitiveness (RTD, innovation clusters,

growth poles – especially in RCE regions)– Actions to increase the human capital (training)– Actions to develop urban infrastructures (clean urban transport,

waste water treatment, health infrastructures, brownfield development – especially in CONV regions)

– Actions to develop poly-centric structures or target urban-rural linkages (only a few cases)

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Urban actions in EU Cohesion Policy 2007-2013

Implementation through... a. regional and national Operational Programmes and

b. a new financial instrument „JESSICA“ (Joint European Support

for Sustainable Investment in City Areas – revolving urban development funds) - http://ec.europa.eu/regional_policy/funds/2007/jjj/

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Urban actions in EU Cohesion Policy 2007-2013

3. European Territorial Co-operation: Focus on networking and the exchange of experience– Urban topics included in Cooperation Objective activities – URBACT as a specific programme for thematic exchanges

between cities– Regions for Economic Change initiative – Fast Track Networks

(links between networks and the mainstream OPs)

www.urbact.eu

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Urban actions in EU Cohesion Policy 2007-2013

4. Monitoring of urban development trends through the „Urban Audit“ and the „Urban Atlas“

www.urbanaudit.org

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How do we see the urban dimension of 2007-2013?

• Cities benefit massively from cohesion policy programmes, both through specific investment in urban development and through thematic priorities (infrastructures, SME support e.g.)

• The picture of integrated urban development is different. The mainstreaming of the URBAN Community Initiative has worked in numbers but not in terms of methodology:– Integrated projects vs sectoral actions– Role of cities vs power of regional/national MAs– Lack of innovation and experimentation– Lack of visibility

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Where are we going?

• Urban policy as one of the Commissioner's political priorities (“urban strategy” will be developed)

• Three important aspects for preparing the post 2013 period:– Role of cities for delivering Europe 2020 (smart, sustainable and

socially inclusive growth)– Territorial cohesion as an “entry point” for an improved urban

dimension post 2013– Strengthened local level through the Lisbon Treaty

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Where are we going?

• Important challenge of making the urban dimension consistent and visible

• Elements of an improved urban dimension of OPs– Integrated delivery of thematic Europe 2020 priorities– Better and clearer legal framework (involvement of city

authorities, IUDPs, ESF-type operations)– Greater coherence (“urban earmarking”?)– More space for experimentation– New URBACT – focus on skills and knowledge transfer on

integrated urban development– Financial engineering – Jessica

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