EUROPEAN COMMISSION Regional Policy EN Cohesion Policy Budget

EUROPEAN COMMISSION Regional Policy EN Cohesion Policy Budget payments in 2008 Danuta Hübner Commissioner for Regional Policy 4 February 2009

EUROPEANCOMMISSION Regional. Policy - Finance & Budget EN • Cohesion Policy payments in 2008 - a year of transition between programming periods 1. High level of payments despite economic slowdown 2. Pleasing performance by Member States as absorption rates for 2000 -2006 period continue to improve 3. Cohesion Policy makes a difference in Europe’s regions 4. Recovery Plan 5. Challenges for 2009 2

EUROPEAN COMMISSION Regional Policy EN 1. High level of payments in 2008 despite economic slowdown € 38. 3 billion is total for Cohesion Policy The breakdown by Fund & period is: Total 2000 -06 2007 -13 § ERDF 21. 4 15. 1 6. 3 § CF/ISPA 5. 8 3. 0 2. 8 § ESF 8. 8 6. 4 2. 4 § EAGGF 2. 0 § FIFG 0. 3 TOTALS 38. 3 26. 8 11. 5 € billion 3

EUROPEAN COMMISSION Regional Policy EN 2. Pleasing performance by Member States as absorption rates for period 2000 -2006 improve € 225 billion is the total paid to Member States over the period 2000 -2006 for Cohesion Policy This represents 87. 5% of allocated funds The rate by Fund is: § § § % ERDF CF ESF EAGGF FIFG 91 65 91 92 89 Total allocation for the 2000 -2006 period is € 257 billion 4

EUROPEAN COMMISSION Regional Policy EN Payments for period 2000 -2006 (in € billion) Cohesion Policy (4 Structural Funds & Cohesion Fund) € 225 billion paid out 5 Situation as at 2 February 2009

EUROPEAN COMMISSION Regional Policy EN Payments in 2008 by Member State (in € billion) Situation as at 31 December 2008 Cohesion Policy (2000 -06 period & 2007 -13 period) € 38. 3 billion paid out 6

EUROPEAN COMMISSION Regional Policy EN Absorption for period 2000 -2006 Situation as at 2 February 2009 ERDF: € 117. 4 billion or 91 % paid out 7

EUROPEAN COMMISSION Regional Policy EN 3. Cohesion Policy makes a difference The 2007 & 2008 budgets have advanced funds of more than € 18. 1 billion to facilitate the rapid implementation of the new programming period by Member States Beginning of 2009 a 3 rd advance of € 5 billion Spring 2009 an expected additional advance of € 6. 2 billion This means Member States will receive advances totalling € 29. 3 billion which is 8. 4% of the allocated funding for the period 2007 -2013 (€ 347 billion) + 40 000 projects already approved & 60 Major Projects proposed 8

EUROPEAN COMMISSION Regional Policy EN 4. Recovery Plan § Increase in advance payments to programmes in order to provide an immediate cash injection § Immediate funding for major projects § Simplification for the payment of advances paid via state-aid schemes § Simplification of eligibility rules to reduce red tape § Use of ERDF funds for energy-efficiency and renewables in housing § Giving more flexibility (from 2% to 10%) 9 Funding in place for accelerated implementation of big infrastructure projects

EUROPEAN COMMISSION Regional Policy EN 5. Challenges for 2009 § Member States to seize the opportunities provided by Cohesion policy and Commission fast response to economic situation § Commisison to report on the biggest evaluation exercise ever for cohesion policy. The results are expected for the end of this year, 2009, and will provide a substantial contribution to the debate on the future of cohesion policy after 2013 10