What next for European funding post 2013? John Bachtler ‘Regeneration in Hard Times’ seminar – Wednesday, 10 November 2010 Committee Room 2, Scottish Parliament

What next for European funding post 2013?

John Bachtler

‘Regeneration in Hard Times’ seminar – Wednesday, 10 November 2010

Committee Room 2, Scottish Parliament

John Bachtler, European Policies Research Centre, University of Strathclyde2

What next for European funding post 2013?

• Policy context– EU budget review– Europe 2020

• Future of Cohesion policy – 5th Cohesion Report

• Timetable of debate

• Key issues

Policy context – EU budget review

EU budget review – consultation results

Environment – especially responses to climate change - increase direct spending; align other policies with environmental needs; need for strong spillovers

Energy – increase direct spending; concentrate research efforts on energy; promote low-energy lifestyle

Competitiveness, research, knowledge –increase expenditure; focus actions within other policies on improving competitiveness

External policies – more spending on defence and foreign policies

Agriculture – amounts and efficiency of spending do not address the new reality - maintain CAP as EU policy reinforcing Pillar 2; introduce co-financing; re-orient CAP towards new goals

Cohesion policy – does not have universal high added value - limit Structural Funds to Convergence and Territorial Cooperation objectives


Policy context - EU budget review

• Budget review paper (October 2010)– sets out “some of the issues facing the EU

budget for the next framework and beyond”

• Principles– delivering key EU policy priorities– EU added value– a results-driven budget– mutual benefits through solidarity– a reformed financing of the EU budget


Policy context – Europe 2020 strategy

SMART GROWTH

SUSTAINABLE GROWTH

INCLUSIVE GROWTH

Innovation“Innovation

Union”

Climate, energy and

mobility“Resource efficient Europe”

Employment and skills

“An agenda for new skills and jobs”

Education“Youth on the

move” Competitiveness

“An industrial policy for the

globalised era”

Fighting poverty“European platform

against poverty”Digital society“A digital

agenda for Europe”

5 headline targets by 2020

• 75% employment rate • 3% of GDP investment in R&D• “20/20/20” climate/energy targets met

(incl. 30% emissions reduction if conditions are right)

• < 10% early school leavers & min. 40% hold tertiary degree

• 20 million less people at risk of poverty

Cohesion policy is part of the ‘inclusive growth agenda


Policy context – Europe 2020 strategy

Cohesion policy and Europe 2020• Cohesion policy “should become the standard bearer for the

objectives of smart, inclusive and sustainable growth of the Europe 2020 strategy in all regions”

• Adjustments needed to strategic programming– greater concentration and coherence– a common strategic framework for all funds (ERDF, ESF, CF, EFF,

EAFRD)– Development and Investment Partnership Contract (results focus)– improving the quality of expenditure– the “right skills for tomorrow’s workforce”– supporting sectors put under pressure


Fifth Cohesion Report: main messages

• Defining the main objective of Cohesion policy

– “to promote the harmonious development of the Union and its regions”…by increasing competitiveness, expanding employment, improving well-being, protecting the environment

– focus on less-development regions

– new intermediate ‘transition’ category between O1 and O2

– continuation of territorial cooperation (cross-border, transnational, inter-regional)



• Introducing a new territorial dimension– Meaning?

• territorial dimension to access to services• importance of environmental sustainability• relevance of functional geographies• role of territorial cooperation

– Practical implications• particular focus on urban problems• reinforced role of local development approaches• development of ‘macro-regional strategies’



• Enhancing the added value of Cohesion policy

– Reinforced strategic programming and concentration• Common Strategic Framework for all funds• results-based Development Contract• Operational Programmes – clear and measurable targets• concentration of resources on menu of priorities• annual reporting, as basis of political debate

– Strengthening performance through conditionalities• macro-economic, structural, institutional • performance reserve to reward good progress• experimentation and networking



• Enhancing the added value of Cohesion policy – Development of evaluation to focus on strategic and

results issues – ex ante, ongoing, ex post– New financial instruments

• clarification and differentiation of rules• extension of financial engineering instruments

• Simplification of delivery system– changes to financial management– common EU rules on eligibility for all funds– financial discipline through N+2


Timetable of debate

• October 2010 – Budget review paper

• November 2010 – 5th Cohesion Report

• Jan/Feb 2011 – Fifth Cohesion Forum

• Spring 2011 – Proposals for Financial Perspective

• Summer 2011 – Proposals for Cohesion policy legislative package

• Summer 2011-2012 – Negotiations

• End 2012(?) – Council/Parliament agreement

• 2013 – Preparation (programming) for new period

• 2014 – Launch of new programmes


Key issues

• Size and allocation of the EU budget (Cohesion policy, CAP, other policies)

• Menu of priorities

• New framework

• Conditionalities and incentives

• Delivery


Thank you for your attention [email protected]

Documents

What next for European funding post 2013? John Bachtler ‘Regeneration in Hard Times’ seminar – Wednesday, 10 November 2010 Committee Room 2, Scottish Parliament