EU Cohesion Policy 2014 2020 Proposals from the

EU Cohesion Policy 2014 – 2020 Proposals from the European Commission Cohesion Policy

Structure of the presentation 1. What is the impact of EU cohesion policy? 2. Why is the Commission proposing changes for 2014 -2020? 3. What are the main changes? 4. How will the funding be allocated? 5. When will the changes come into effect? 6. Where can I find further information? │ 2

1. What is the impact of EU Cohesion Policy? Cohesion Policy

EU Cohesion Policy invests in … Training Support for SMEs Energy efficiency Renewable energy Transport Research and innovation │ 4 Cooperation between regions

Results of EU Cohesion Policy (figures from 2000 -2006 period) 8400 km of rail built or improved 5100 km of road built or improved Access to clean drinking water for 20 million more people Training for 10 million people each year Over 1 million jobs created GDP/capita up 5 % in newer Member States │ 5

Yet gaps between regions remain GDP/capita* *index EU 27=100 < 50 75 -90 50 -75 100 -125 90 -100 Average 2006 ‒ 2007 ‒ 2008 ► Closing these gaps remains a key objective Regional GDP figures: 2006 -07 -08 © Euro. Geographics Association for the administrative boundaries │ 6 > 125 Canarias Madeira Guyane Réunion Guadeloupe/ Martinique Açores Malta

2. Why is the Commission proposing changes for 2014 -2020? Cohesion Policy

Objectives Deliver the Europe 2020 strategy objectives of smart, sustainable and inclusive growth Focus on results Maximise the impact of EU funding │ 8

Proposed EU budget 2014 -2020 “Ambitious but realistic” proposals issued by the Commission in June 2011 for the Multiannual Financial Framework (MFF) 2014 -2020 Cohesion Policy Other policies 33 % (€ 336 billion) (agriculture, research, external etc. ) 63 % (€ 649 billion) Connecting Europe Facility 4 % (€ 40 billion) │ 9

3. What are the main changes? Cohesion Policy

Reinforcing effectiveness and performance Focus on results • Common & programme-specific indicators, reporting, monitoring & evaluation Performance framework for all programmes • Clear and measurable milestones and targets Performance reserve • 5 % of national allocations (by Member State, fund and category of region) Ex-ante conditionality • Ensuring conditions for effective investment are in place Macro-economic conditionality • Alignment with new economic governance │ 11

More coherent use of available EU funds Common Strategic Framework Partnership Contract Operational Programmes • Comprehensive investment strategy: aligned with Europe 2020 objectives • Coherence with National Reform Programmes • Coordination: cohesion policy, rural development, maritime & fisheries funds • Objectives and indicators to measure progress towards Europe 2020 targets • Effectiveness: introduction of a performance framework • Efficiency: reinforcement of administrative capacity, cutting red tape │ 12

A menu of thematic objectives • • Research & innovation Information and communication technologies (ICT) Competitiveness of Small and Medium-sized Enterprises (SMEs) Shift towards a low-carbon economy Climate change adaptation & risk prevention and management Environmental protection & resource efficiency Sustainable transport & removing bottlenecks in key network infrastructures Employment & supporting labour mobility Social inclusion & combating poverty Education, skills & lifelong learning Institutional capacity building & efficient public administrations • • │ 13

Concentrating resources to maximise impact Concentration of ERDF investments Energy efficiency & renewable energy More developed & transitional regions Research & innovation Less developed regions Flexibility – different regions have different needs Special arrangements for ex-convergence regions │ 14 Competitiveness of SMEs

European Social Fund (ESF) 2007 -2013 2014 -2020 Share of ESF within Cohesion Policy budget Of total Structural Fund support (ERDF & ESF), ESF will represent: • 25 % in less developed regions • 40 % in transition regions • 52 % in more developed regions │ 15

European Social Fund (ESF) Fully in line with the Europe 2020 strategy • Promoting employment & supporting labour mobility • Investing in education, skills & life-long learning • Promoting social inclusion & combating poverty • Enhancing institutional capacity & efficient public administration Reinforced social dimension • 20 % of ESF allocations for social inclusion • Greater emphasis on fighting youth unemployment • Mainstreaming & specific support for gender equality & non-discrimination │ 16

Cohesion Fund Supports Member States with GNI/capita < 90 % of EU 27 average Investing in environment • Climate change adaptation and risk prevention • Water and waste sectors • Biodiversity including through green infrastructures • Urban environment • Low carbon economy Investing in transport • Trans-European Transport Networks (TEN-T) • Low-carbon transport systems and urban transport │ 17

Simplification Common rules - funds covered by Common Strategic Framework • Cohesion Policy, rural development and maritime & fisheries policy Option of multi-fund programmes • ERDF, ESF and Cohesion Fund Streamlined delivery system • Harmonised rules on eligibility and durability • Greater use of simplified costs • Linking payments with results • e-Cohesion: “one stop shop” for beneficiaries • Proportional approach to control │ 18

Reinforcing Territorial Cohesion Focus on sustainable urban development • At least 5 % of ERDF resources Creation of urban development platform • Networking between cities and exchanges on urban policy Innovative actions for sustainable urban development • Subject to a ceiling of 0. 2 % of the annual funding Areas with specific natural or demographic features • Additional allocation for outermost & sparsely populated regions │ 19

An investment-oriented policy Promoting the use of innovative financing instruments • Extending scope to all areas of investment • Clearer regulatory framework • 10 % bonus for innovative financing instruments & community-led development • A range of options offering flexibility to programme managers Maximum co-financing rates • 75 -85 % in less developed and outermost regions • 60 % in transition regions • 50 % in more developed regions │ 20

Management and control Financial management • New system of annual accounts • Annual management declaration • Annual clearance of accounts by the Commission Management and control systems • National accreditation (greater responsibility for Member States) • Managing Authorities may act as Certifying Authorities • Commission can review accreditation (taking into account risks & track record) Greater proportionality • Exemptions for low volume programmes • Exemptions for systems that have delivered consistently good results • Limitations on frequency of Commission audits on individual operations │ 21

4. How will the funds be allocated? Cohesion Policy

A fair system for all EU regions (eligibility simulation) GDP/capita* < 75 % of EU average 75 -90 % > 90 % *index EU 27=100 3 categories of regions Less developed regions Transition regions More developed regions Regional GDP figures: 2006 -07 -08 © Euro. Geographics Association for the administrative boundaries │ 24 Canarias Madeira Guyane Réunion Guadeloupe/ Martinique Açores Malta

How will funding be allocated? Less developed regions/MS Cohesion Fund¹ Less developed regions 162. 6 Transition regions 38. 9 More developed regions 53. 1 European Territorial Cooperation 11. 7 Total 0. 9 336. 0 ¹ € 10 billion from the Cohesion Fund will be allocated to the Connecting Europe Facility 25 More developed regions 68. 7 Outermost regions and sparsely populated areas │ Transition regions Budget allocation (in %) Population covered (in millions)

5. When will these changes come into effect? Cohesion Policy

Timeline 5 th Report on Economic, Social and Territorial Cohesion & public consultation March 2010 Adoption of Europe 2020 Strategy │ 27 Nov. 2010 Agreement on MFF and adoption of new legislative package Proposals for Cohesion Policy 2014 -2020 June 2011 Proposal by the Commission for a Multiannual Financial Framework (MFF) Oct. 2011 March 2012 Common Strategic Framework 2012 – 2013 2014 Entry into force and adoption of programmes

Where can I find further information? www. inforegio. europa. eu Follow@EU_Regional on Twitter │ 28