1. European Union’s Regional Development Policy

2. Summary of the presentation
The concept of regional policy
The history of the EU regional development policy
Costs/Benefits of the EU regional development policy
Euro 2020 strategy
Cohesion policy

3. The need for a EU regional development policy
GDP/CAPITA (PPS) in the EU 28
Source: Eurostat

4. The need for a EU regional development policy
Unemployment rate in the EU 28
Source: Eurostat

5. The need for a EU regional development policy
Gross domestic expenditure on R&D (GERD) - % GDP
Source: Eurostat

6. The need for a EU regional development policy
Tertiary educational attainment by sex, age group 30-34
The share of the population aged years who have successfully completed university
Source: Eurostat

7. The need for a EU regional development policyHi Lo
Ratio
GDP per capita (% EU28 average)
Luxembourg
251%
Bulgaria
33%
7.6*
Population
Germany
82.5 million
Malta
404,000
204
*In US, this difference is only 2.5 and Japan 2

8. The concept of regional policy
An investment policy that aims to reduce economic, social and territorial disparities between European Union member states.
An instrument used to promote solidarity with the less developed member states of the European Union.

9. The history of the EU regional development policy
I. The Treaty of Rome - little regional dimension - ”One of the main objectives of the Community was to reduce the disparities in what concerns the level of development between different member states and regions”
II. Enlargement in Its consequences: creation of “ERDF” (European Regional Development Fund) as a specific instrument
III. The 1986 Single Act - The “Internal Market” objective and the accompanying policies, concerning economic and social cohesion policies serviced by the “Structural Funds” – four main principles:
Concentration
Partnership
Programming
Additionality

10. The history of the EU regional development policy
IV. The 1992 Treaty on the European Union - and the pillars of Community construction concerning economic and social cohesion.
Objective: Promotion of balanced and harmonious development of activities in the whole of the Community, of durable growth …etc…of economic and social cohesion and solidarity between the member states.
Methods
Common Market
Economic and Monetary Union
Common policies and actions
of which, the reinforcement of economic and social cohesion

11. EU allocates Funds to regions via 6 Objectives
Until 1999
Objective 1 (promoting the development of lagging regions)
Objective 2 (promoting the economic conversion of the regions seriously affected by industrial decline)
Objective 3 (combining long-term unemployment, and promoting equal opportunities)
Objective 4 (facilitating the adaptation of workers to industrial changes)
Objective 5a (speeding up the adjustment of agricultural/ fishing structures in the framework of the CAP)
Objective 5b (promoting the development of rural area)
Objective 6 (promoting the development of regions with an extremely low population density)

12. The history of the EU regional development policy
V. The 1999 agreement and the preparation for enlargement.
The Summit from Berlin in march 1999 decided the three main objectives regarding the regional development policy:
Promoting the structural adjustment of the less developed area – areas where the GDP is less than 75% of the EU average;
Supporting economic and social conversion of the areas that are constrained by structural difficulties;
Support in what concerns the improving the educational systems.

13. EU budget 2014 by financial framework headings
Source: Eurostat

14. Regional development policy
Main strands of the EU regional development policy
Reducing regional disparities
Convergence between Member States
Promoting good practice in regional development
Promoting good governance
Supporting/compensating for other EU policies

15. Instruments used by the EU regional development policy
Three main funds
ERDF: European Regional Development Fund
ESF: European Social Fund
Cohesion Fund

16. Sources of finance of the EU regional development policy
European Regional Development Fund - focuses on initiatives relating to economic growth, employment and competitiveness, including investments in infrastructure.
The Cohesion Fund – focuses on transport and environnent infrastructure,including renewable energy sources.
The European Social Fund – focuses on investments in human capital in the field of education and training.

17. Community Initiatives
Interreg III : cross-border, transnational and interregional co-operation
Urban II : sustainable development of cities and declining urban areas
Leader + : rural development through local initiatives
Equal : combating inequalities and discrimination in access to the labour market

18. Who benefits? Huge range of potential recipients:
Businesses including SMEs
Public bodies
Associations
Voluntary groups
All projects considered if meet selection criteria of managing authority of relevant programme
Compulsory publication of beneficiary lists

19. Developing an economy based on knowledge and innovation
Euro 2020 strategy
Euro 2020 strategy
Smart growth
Developing an economy based on knowledge and innovation
Sustainable growth
Promoting a more resourse efficient, greener and more competitive economy
Inclusive growth
Fostering a high employment delivering economic, social and territorial cohesion

20. Euro 2020 strategy – Main objectives
Employment - 75 % of the population aged should be employed
Innovation - 3% of the EU's GDP should be invested in Research & Development
Climate change - The "20/20/20" climate/energy targets should be met (including an increase to 30% of emissions reduction if the conditions are right)
Reduce greenhouse gas emissions by at least 20%
Increase the share of renewable energy sources in our final energy consumption to 20%
A 20% increase in energy efficiency
Education - The share of early school leavers should be under 10% and at least 40% of years old should have completed a tertiary or equivalent education
Poverty - Reduction of poverty by aiming to lift at least 20 million people out of the risk of poverty or exclusion

21. Cohesion policy

22. The main objectives of the 2014-2020 Cohesion policy

23. Cohesion policy 2014-2020 Level of investment Level of development
182 billions euro for less developed economies – GDP less than 75% of EU average
35 billions euro for transition economies – GDP % of EU average
54 billions euro for more developed economies – GDP more than 90 % of EU average

24. 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

25. Results of regional development policy
Increasing per capita GDP in Greece, Spain, Ireland and Portugal – ( Greece increased from 74% of the EU average to 88% between 1995 and 2005)
Helping to reduce income disparities between richest and poorest by roughly a sixth (between 2000 and 2005) through sustained high growth
By 2015, it is estimated that regional policy will have generated an additional 440,000 jobs in Poland, as well as contributing an extra 6% to GDP and 21% to investment
Over 44,000 km of road were built or reconstructed in the period The equivalent figure for rail was nearly 12,000 km
Supporting more than 250,000 small businesses in the UK