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European UnionRegional Policy – Employment, Social Affairs and Inclusion

Addressing challenges in a changing world:

-The future Cohesion Policy-

Wolfgang MünchDirectorate General for Regional Policy

European Commission

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European UnionRegional Policy – Employment, Social Affairs and Inclusion

Europe 2020 Strategy Challenges – Cohesion Policy key element for a

successful strategy

Budgetary Challenges - The Multi Annual Financial

Framework (MFF) – budgetary figures and governing principles

Responding to challenges:Responding to challenges:Reforming Cohesion PolicyReforming Cohesion Policy

2014-20202014-2020

Why reform?The context of the EU Cohesion

Policy reform

Economic, Social and Territorial Challenges – Specific policy reform

needs

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European UnionRegional Policy – Employment, Social Affairs and Inclusion

Europe 2020 StrategyChallenges

Cohesion Policy: key role to achieve EU 2020 goals

Europe 2020 Strategy – a new strategy for Europe

•Smart growth

•Growth for all

•Sustainable growth

EU Member States will propose national targets for 2011

Future Cohesion Policy must be aligned with Europe 2020

Reinforce the partnership principle in Cohesion Policy

Integrated and place based concepts of Cohesion Policy essential for success of Europe 2020

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European UnionRegional Policy – Employment, Social Affairs and Inclusion

Policy Challenges 1: Prosperity and economic development

•Overall

• Regional disparities have shrunk over the last decade

• Wide gaps between least and most developed regions still remain

• Global economic crisis has accentuated these gaps

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European UnionRegional Policy – Employment, Social Affairs and Inclusion

Cohesion Policy conclusions:

• Substantial resources for Cohesion Policy. € 336 billion and € 40 billion for the Connecting Europe Facility

• Solidarity with the less developed regions: renewed focus– 57% of support goes to EU12 from 51% 2007-

2013• New transition region category will give

adequate continuity of funding to finalise catch up process

• Supporting more developed regions to help address challenges

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European UnionRegional Policy – Employment, Social Affairs and InclusionPolicy Challenges 1:

Prosperity and economic development

Coverage of Cohesion Policy:

119.2 million people in 64 regions will be covered by the highest support levels.

•35.2 million people or 20 regions less will need highest support levels as compared to 2007-13.

Support in transition regions will enable 72 million people in 51 regions to better catch up

307.1 million people will be covered by cohesion policy in more developed regions

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European UnionRegional Policy – Employment, Social Affairs and Inclusion

Average annual aid intensity: Fair and balanced support taking into account adaptive capacities

0

50

100

150

200

Less developed regions Transition regions More developed regions

EU

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r

Policy Challenges 1: Prosperity and economic development

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European UnionRegional Policy – Employment, Social Affairs and Inclusion

Knowledge and know how: regional vulnerability

Policy challenge 2: Research & Innovation and SME support

• Vulnerabilities in all European regions and in neighbouring countries

• High impact and low adaptive capacities in Mediterranean regions

• Very high impacts but moderate adaptive capacities in Eastern regions

• Scandinavian and a number of metropolitan regions least vulnerable

• Southern neighbourhood and Western Balkan most vulnerable

Source: Regional Challenges in the Perspective of 2020 – Phase 2: Deepening and Broadening the Analysis

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European UnionRegional Policy – Employment, Social Affairs and Inclusion

Cohesion Policy conclusions:

• support of innovation and research infrastructure receives specific focus in all European regions

• SME support strengthened in all regions

• Funding focus: – 60% of ERDF allocations in more developed

and transition regions– 44% of ERDF allocations in less developed

regions

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European UnionRegional Policy – Employment, Social Affairs and Inclusion

Policy challenge 3: Climate change• Climate change does not

stop at borders

• Multiple challenges in Mediterranean regions

• North and Western regions less affected, except lowland coastal areas.

• River floods will occur in central and Eastern regions.

• Lower vulnerabilities in Eastern neighbourhood

• High vulnerabilities in Western Balkan as well as in Egypt

Natural hazards: regional vulnerability

Source: Regional Challenges in the Perspective of 2020 – Phase 2: Deepening and Broadening the Analysis

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European UnionRegional Policy – Employment, Social Affairs and Inclusion

Cohesion Policy conclusions:

• Climate change is mainstreamed into new Cohesion Policy

• Strengthen territorial cooperation to address problems across borders

• concentration of funds on renewable energy and energy efficiency: – 20% of ERDF allocations in more developed

and transition regions,– 6% in less developed regions

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European UnionRegional Policy – Employment, Social Affairs and Inclusion

Policy challenge 4: Access to the single market

• Trans European Networks in transport, and energy often lack linkages

• Access is base condition of taking part in single market

• Regional connectivity to TENs important for regional development

• Transport, energy key contributor in reaching the climate objectives– urban context

important

TEN-T priority projects

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European UnionRegional Policy – Employment, Social Affairs and Inclusion

Cohesion Policy conclusions:

• Connecting Europe Facility to aim at cross border infrastructure through central finance and selecting the highest European added value projects

• Cohesion policy concentrates on main infrastructure in less developed regions – focus on TEN-T investments, broadband – focus on regional connectivity to TENs by

investments in transport, energy distribution networks and broadband

– supporting clean urban transport– favouring climate friendly investments

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European UnionRegional Policy – Employment, Social Affairs and Inclusion

Cohesion Fund for Member States with GNI per capita <90%

Main beneficiaries - the Member States that joined the EU in 2004 and 2006 + Portugal

Cohesion Fund € 68.7 billion of which 10 billion will be ring fenced for the Connecting Europe Facility

Investment areas:

environment and

Trans-European Networks for transport

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European UnionRegional Policy – Employment, Social Affairs and Inclusion

Quality of Government

Policy challenge 6: Governance

• Denmark, Sweden, Finland, Netherlands, Luxembourg, Germany, Austria, U.K. and Ireland have a consistently high quality of government.

• France, Spain, Belgium, Malta, Portugal, Cyprus, Estonia and Slovenia have a moderate quality of government.

• The Czech Republic, Lithuania, Hungary, Slovakia, Poland, Latvia, Greece, Italy, and especially Bulgaria and Romania have a lower quality of government.

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European UnionRegional Policy – Employment, Social Affairs and Inclusion

Cohesion Policy conclusions:

• strengthening strategic programming• capacity building for less developed

Member States and regions• conditionalities to support creating a

framework for successful investments• performance framework to reward

success

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European UnionRegional Policy – Employment, Social Affairs and Inclusion

Reform Major Hallmarks: A more ambitious and more effective Cohesion

Policy • Achieving more with the same amount by spending wisely• Contributing to Europe’s aims of smart, sustainable and

inclusive growth• Strengthening partnership and governance• Reinforcing a fair for all system • Focusing on objectives and results• Rewarding performance • Supporting integrated programming• Strengthening territorial cohesion • Monitoring progress towards agreed objectives• Streamlining the delivery system

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European UnionRegional Policy – Employment, Social Affairs and Inclusion

Thank you for your attention.

Regional Challenges in the Perspective of 2020 – Phase 2: Deepening and Broadening the Analysis

http://ec.europa.eu/regional_policy/information/studies/index_en.cfm#1

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European UnionRegional Policy – Employment, Social Affairs and Inclusion

A significant share for Cohesion Policy (1/3 of total budget)

COMPARISON MFF 2007-13/2014-20Billion € in 2011 prices

Difference (in %)2007-2013 2014-2020

1. Smart and Inclusive Growth 445.5 490.9 10.2%

Of which Cohesion Policy 354.8 336.0 -5.3%

Of which infrastructure (Connecting Europe Facility) 12.9 40.0 209.7%

Of which Competitiveness (CSF research & innovation; Education; Galileo etc) 77.8 114.9 47.7%

2. Sustainable Growth: natural resources 421.1 382.9 -9.1%

Of which Market related expenditure and direct payments 322.0 281.8 -12.5%

3. Security and Citizenship 12.4 18.5 49.9%

of which Freedom, Security and Justice 7.6 11.6 53.0%

of Citizenship 4.8 6.9 44.9%

4. Global Europe 56.8 70.0 23.2%

5. Administration (including pensions and European schools) 56.9 62.6 10.1%

Of which administrative expenditure of EU institutions 48.4 50.5 4.2%

6. Compensations 0.9    

Total commitment appropriations 993.6 1 025.0 3.2%

In % of EU-27 GNI 1.12% 1.05%  

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European UnionRegional Policy – Employment, Social Affairs and Inclusion

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 regions0.9

TOTAL 336.0

Connecting Europe facility for transport, energy and ICT40.0

TOTAL 376.0

* Cohesion Fund will ringfence 10 billion EUR for the new Connecting Europe Facility