EU Cohesion Policy 2014 2020 Proposals from the

EU Cohesion Policy 2014 -2020 Proposals from the European Commission Regional Policy

Legislative package • The General Regulation Common provisions for cohesion policy, the rural development policy and the maritime and fisheries policy Common provisions for cohesion policy only (ERDF, CF, ESF) • Fund specific regulations ERDF regulation CF regulation ESF regulation ETC regulation • EGTC regulation Regional Policy

Mission and Goals Mission of EU cohesion policy: • to reduce disparities between Europe's regions strengthening economic, social and terrritorial cohesion in line with article 174 of the Treaty • to contribute to the Union Strategy of smart, sustainable and inclusive growth Two goals: • Investment for growth and jobs • European Territorial cooperation Regional Policy

Budget for Cohesion Policy post 2013 billion EUR (2011 prices) Cohesion Fund* 68. 7 Less developed regions 162. 6 Transition regions 39. 0 More developed regions 53. 1 Territorial Cooperation 11. 7 Extra allocation for outermost and northern regions TOTAL** 0. 9 336. 0 Connecting Europe facility for transport, energy and ICT 40. 0 376. 0 TOTAL *Cohesion Fund will ringfence 10 billion EUR for the new Connecting Europe Facility **Includes 2, 5 billion EUR allocation for food for deprived persons Regional Policy

Geographical coverage and level of support Three categories of regions: • Less developed regions (GDP per capita < 75% of EU average) • Transition regions (GDP per capita between 75% and 90%) • More developed regions (GDP per capita > 90%) Co-financing rates range from: • 50 % for the more developed regions to • 85 % for the Cohesion Fund and less developed regions of Member States whose average GDP per capita for the period 2007 to 2009 was below 85 % of the EU-27 average Regional Policy

Regional Policy

Regional Policy • Cohesion Fund for Member States with GNI per capita <90% • Investments in the fields of environment and trans-European transport Networks • On the basis of latest GNI figures, Greece and Cyprus will benefit from phasing-out of Cohesion Fund

Common Principles for all Funds • Five funds: ERDF, ESF, CF + rural development and fisheries • Strengthening partnership and multi-level governance - Introduction of a binding European Code of conduct • Compliance with Union and national law • Reinforcement of gender equality and non-discrimination: • Promoting sustainable development Regional Policy

• • • Thematic Objectives to Deliver Europe 2020 Strengthening research, technological development and innovation Enhancing access to, and use and quality of, information and communication technologies Enhancing the competitiveness of small and medium-sized enterprises, the agricultural sector (for the EAFRD) and the fisheries and aquaculture sector (for the EMFF) Supporting the shift towards a low-carbon economy in all sectors Promoting climate change adaptation, risk prevention and management Protecting the environment and promoting resource efficiency Promoting sustainable transport and removing bottlenecks in key network infrastructures Promoting employment and supporting labour mobility Promoting social inclusion and combating poverty Investing in education, skills and lifelong learning Enhancing institutional capacity and an efficient public administration Regional Policy

Strengthening the Strategic Approach Common Strategic Framework Partnership contract Operational Programmes Regional Policy

Programming • Integrated programme approach • One Common Strategic Framework at EU level and one Partnership Contract at national level • Possibility for multi-fund programmes • Possibility for "multi-category" operational programmes which cover less developed, transition, and more developed regions or any combination of these • Integrated approaches for territorial development supported by the CSF Funds • Macro-regional strategies to be reflected in all layers of programming Regional Policy

Performance framework Focuses on the achievement of programme objectives Sets out milestones and targets for performance of programme priorities for 2016, 2018 and 2022 Performance review - in 2017 and 2019 Performance reserve – disbursed after the review in 2019 • A performance reserve of 5% is set aside at the beginning of the programming period (exception for ETC) • The performance reserve is established per CSF Fund, per Member State and per category of region Regional Policy

A Focus on Results • Fund specific common output and result indicators • Programme specific indicators • Thorough information and analysis of all the elements of the OP required only in 2017, 2019 and for the final report • No annual report in 2015, lighter annual reports on implementation • Ex-ante evaluation • Evaluation during the programming period • Ex-post evaluation by the Commission Regional Policy

Conditions of assistance Some changes in eligibility rules, incl: • Operations supported by the CSF Funds shall be located in the area covered by the programme under which they are supported • Exemptions subject to conditions: o benefit to the programme area o ceiling of 10% at the level of a priority axis o Monitoring Committee approval o fulfilment of management, control and audit obligations Simplified costs used more widely Regional Policy

Ex-ante and macroeconomic conditionalities Ex-ante conditionality • Directly related to thematic objectives or horizontal conditions of effectiveness • Conditionalities must be fulfilled within two years of the approval of the Partnership Contract or by end of 2016 Macroeconomic conditionality - closer link between cohesion policy and the economic governance of the Union in two areas: • Council recommendations • Union financial assistance to a Member State May lead to: • Amendment of programmes • Suspension of payments Regional Policy

Responsibilities of Member States and of the Commission • Broad continuity of general responsibilities and obligations • e. Cohesion Policy • Broad continuity in the structure of the management and control system and in the division of tasks and the responsibilities of the managing authority, the certifying authority and the audit authority • Member State should designate an accrediting body at ministerial level: responsibility for accreditation of the managing and certifying authorities, continuous oversight, for fixing a probation period, and withdrawal of accreditation Regional Policy

Other aspects • • • Technical assistance Major projects Joint Action plans Financial instruments Pre-financing, interim payments and decommitment deadlines • Proportionate audit arrangements • Accounting year and clearance of accounts • Financial corretions, interruptions and suspensions Regional Policy

Scope of ERDF • Investments in infrastructure providing basic services to citizens in the areas of environment, transport, and ICT are limited to the less developed and transition regions • More targeted support to large enterprises, focused on technology and applied research, including the first production of Key Enabling Technologies • Restrictions for support to the ETS sector, the tobacco industry, decommissioning of nuclear power stations and undertakings in difficulties Regional Policy

Scope of the Cohesion Fund • Investments in the environment, including areas related to sustainable development and energy which present environmental benefits • trans-European networks in the area of transport infrastructure, in compliance with the guidelines adopted by Decision No 661/2010/EU • technical assistance • Appropriate balance of investments required • Restrictions – decommissioning of nuclear power stations, ETS sector, housing Regional Policy

Scope of ESF Human capital as driver for smart, sustainable and inclusive growth 18 Investment priorities in 4 thematic objectives: ESF contribution to the other thematic objectives notably: 1. Promoting employment and supporting labour mobility 1. Supporting an environmentally sustainable economy (low carbon…) 2. Promoting social inclusion and combating poverty 2. Enhancing the accessibility, use and quality of ICT 3. Investing in education, skills and lifelong learning 3. Strengthening research and innovation Enhancing the competitiveness of SMEs Enhancing institutional and administrative capacities Regional Policy

European Territorial Cooperation Regional Policy

Architecture • Cross-border cooperation • COM to adopt list of cross-border areas to receive support by programme (at NUTS 3 level) • List specifies border areas covered by IPA/ENI • List includes regions in NO, CH etc. and countries neighbouring outermost regions for information purposes • Addition of adjacent NUTS 3 regions may be proposed when submitting programmes Regional Policy

Architecture • Transnational cooperation • COM to adopt list of transnational areas to receive support by programme (at NUTS 2 level) • Third country regions covered by ENI (incl. Russia) and IPA can also be covered by programme, funding to be made available. • Third country regions included in list for information purposes • Addition of adjacent NUTS 2 regions may be proposed when submitting programmes • Interregional cooperation – EU-27, whole or part of territory of third countries may be covered Regional Policy

Financial Resources • 3 categories • 73% for cross-border cooperation (EUR 8. 6 bn) • 21% for transnational (EUR 2. 4 bn) • 6% for interregional (EUR 0, 7 bn) • 75% co-financing rate (50% for outermost regions’ allocation) Regional Policy

EU Strategy for the Baltic Sea Region in 2014 -2020 Cohesion Policy • Political commitment to be reflected in 2014 -2020 cohesion policy programmes • Territorial co-operation programmes will support as well • EUSBSR to be reflected in all programming documents • Review of the Strategy and its Action Plan • Roles and responsibilities Regional Policy

For more information Info. Regio: ec. europa. eu/inforegio Regio. Network: www. regionetwork 2020. eu Regional Policy