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Investing in Europe’s future

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Presentation on theme: "Investing in Europe’s future"— Presentation transcript:

1 Investing in Europe’s future
The fifth Cohesion Report presented by Lewis Dijkstra And Elisa Roller

2 Main Points Situation and trends in EU regions
Competitiveness Well-being and social inclusion Environmental Sustainability Impact of national policies Impact of other EU policies Impact of Cohesion Policy Conclusions: Options for the future

3 Promoting competitiveness and convergence

4 Regional disparities in the world

5 Large economic disparities remain…
Regional disparities are smaller in the US, but bigger in NAFTA Brazil, Russia, India and China have bigger disparities Reducing disparities requires investing in infrastructure innovation institutions

6 …but convergence is taking place
Less developed countries are growing faster and are likely to recover faster from the crisis Less developed regions in the EU are growing faster, reducing regional economic disparities

7 Areas by degree of urbanisation
Densely populated Min inhab. Contiguous LAU2 with 500 inhab. per sq km Intermediate Contiguous LAU2 with 100 inhab. per sq km Thinly populated Not intermediate or densely populated

8 IT Infrastructure: Broadband Access

9 Increasing broadband use
Infrastructure Increasing broadband use

10 Territorial cohesion reinforces:
Access to services Broadband, health, education, banking… Environmental sustainability Climate change, renewable energy, environmental protection Functional geographies Metropolitan, remote rural regions… Territorial Analysis At NUTS 3, LAU2 and grid level (ESPON, Urban Audit, Urban Atlas …)

11 Road network is incomplete
Infrastructure Road network is incomplete Dense network in EU-15 little need for additional capacity. Focus should be demand side In Poland, Romania and Bulgaria, network is almost entirely missing. Investment in core network important in the East

12 Rail network and daily trains
Infrastructure Rail network and daily trains Intense use in the UK, Italy, Germany and the Netherlands Less frequent trains in most central and eastern countries Ireland, Sweden, Finland and Spain have many low frequency lines

13 More tertiary educated and less early school leavers boosts innovation
13

14 Innovation potential & performance
Generators should promote global cutting edge research Weak diffusers should invest in access to knowledge and technology Weak absorbers need to improve secondary and tertiary educations (both quality and quantity)

15 E-government services
Institutions E-government services

16 Competitive European Regions
The focus should be In less developed regions: Institutions Quality of basic education Basic infrastructure and Health In highly developed regions: Business sophistication Technology and innovation In all regions Higher education & training Labour market efficiency Equal opportunities Access to markets

17 More competitiveness can increases employment and GDP

18 Improving well-being and reducing exclusion

19 People’s Well-being Objective measures Life expectancy Mortality rates
Poverty Crime Income Un-/employment Education Gender balance Working hours Subjective measures Health perception Access to services Material deprivation Safety and trust Life satisfaction Happiness Capabilities Equal opportunities Work life balance

20 Life expectancy lower in the East
Lifestyle, income and diet Infant mortality Road fatalities Cancer and heart diseases Access to health care Quality of health care

21 Life expectancy lower in the East

22 Preventable mortality

23 Mortality rates high less developed MS and regions

24 Unemployment dropped in most regions until the crisis hit

25 Equal opportunities: good news

26 … and some bad news

27 Born outside the EU/US

28 Lower employment rates for born outside EU

29 Population change

30 East and West: opposite trends

31 Rural regions: different trends

32 Primary health care

33 Poverty and deprivation have a strong regional dimension

34 Deprivation is mostly urban

35 At-risk-of-poverty is mixed

36 Crime, violence and vandalism

37 Environmental Sustainability

38 Climate change adaptation
More extreme weather events: storms, heat waves, heavy rains… More frequent floods More droughts Hotter summers leading to a less attractive tourism summer climate in the south Less snow in the mountains effecting water supply and winter tourism

39 Renewable energy potential

40 … and Member States’ commitments

41 GHG Emissions

42 Air quality low in several cities

43 Environmental quality
EU directive on waste water treatment still requires considerable investments in some Eastern MS Also in some regions in the EU-15 and the outermost regions compliance has not yet been achieved

44 Chapter 2: National Policies and Cohesion
Public investments and structural reforms

45 Role of national governments
EU plays a supporting role in promoting social, economic and environmental development National governments decide on: Regional distribution of public investments Investments in education and health care Social welfare and income redistribution Scope and speed of structural reforms Macro-economic stability

46 Public investment important source of convergence
Many less developed regions have lower levels of physical infrastructure and need more public investment Public investment is higher in cohesion countries relative to GDP Public investments are important for growth

47 Public investment and cohesion
Public investment targets: Member State Lagging regions Germany and France non-lagging regions despite large internal disparities Italy, Spain, Portugal Peripheral or specific geographic regions Sweden, Austria and UK Capital region Most central and eastern MS. Ex. Czech Republic, Slovakia and Hungary

48 Structural Reforms Structural reforms in the areas of labour market, innovation, the business environment, competition and better regulation have been slow and uneven A better and faster implementation of structural reforms could enhance the growth in less developed regions and strengthen the impact of cohesion policy A continuing need for public investment, which should not be reduced due to fiscal consolidation

49 Chapter 3: Other EU Policies and Cohesion
Implicit and explicit territorial dimensions and territorial impacts

50 Implicit territorial dimension
Spatially blind policies, like the Framework Programme have a strong territorial dimension They tend to favour highly innovative regions and capital regions Less developed regions are less successful in obtaining FP funding

51 Explicit territorial dimension
Some EU policies target specific areas or change their approach according to the type of area Several EU directives focus on urban areas (air quality, waste water…) Natura 2000 is protects specific areas Common Agricultural Policy differentiates support for less favoured areas State aid rules have an exemption for islands with less than inhabitants

52 Territorial impact assessments
Directive 2002/3/EC indicates two thresholds: ozone concentration of 8-hour daily mean of 120 μg/m3 or more agglomeration with inhabitants or more or zones with a high population density selected by MS Territorial impact combines both

53 Chapter 4: The Impact of Cohesion Policy
Social, economic and environmental benefits

54 The impact of Cohesion Policy
Cohesion Policy improves not only economic, but also environmental and social development Objective 1 regions increased their long term productive potential and enhanced the level of GDP per capita Modelling suggests that the entire EU, not just supported regions, is better off with Cohesion Policy than without it

55 Innovation and entrepreneurship
Targets mostly small and medium sized enterprises and start-ups At least 1 million gross jobs were created in supported companies increased private investments and R&D activity in firms But support for large firms may not be necessary Bigger role of loans?

56 Promoting employment, education and inclusion
40% of the unemployed trained have found a job Funded one third of Active Labour Market Policies expenditure targets specific vulnerable groups such as youth, women, minorities, low-skilled, long-term unemployed…

57 Cohesion policy has improved connectivity
2,000 km of motorways built the construction of 4,000 km of rail, including high-speed Future focus should be on greener modes, urban public transport and inter-modal links and on motorways only outside the EU-15

58 Improving access to clean water and treating urban waste water
Faster implementation of environmental directives An additional 23 million inhabitants are served by waste water projects to EU standards, but more is needed An additional 20 million inhabitants have been served by water supply projects

59 The proposals for the future of Cohesion Policy
Conclusions The proposals for the future of Cohesion Policy

60 Cohesion Policy: key role to achieve EU 2020 goals
Future Cohesion Policy must be aligned with Europe 2020 Funding will remain concentrated in less developed regions Europe 2020 Strategy – a new strategy for Europe Smart growth Growth for all Sustainable growth EU Member States will propose national targets for 2011

61 IV. Options for the future Cohesion Policy
Enhancing European added value Strengthening governance Streamlining delivery Architecture of Cohesion Policy Evaluations reports published in April 2010 give a clear indication of the achievements of the policy. Capturing the impact and results of cohesion policy is critical to its ongoing success. Letting the public know what is achieved with the investment from the policy is key to its transparency and accountability. It also offers the opportunity to learn from good practice elsewhere, and to continuously improve projects and programmes. The task of safeguarding and developing competitiveness as a constant necessity in successful economies - no region in Europe can assume prosperity forever. It is important for regions to diversify their economic activities in order to sustain their success – regional policy strategic programming support this.

62 1. Enhancing European added value
Reinforcing strategic programming – translate EU 2020 objectives into investment priorities Focus resources on limited number of key priorities Introduce stronger incentives and conditionality Improving evaluation, performance and results Stronger emphasis on new financial instruments Evaluations reports published in April 2010 give a clear indication of the achievements of the policy. Capturing the impact and results of cohesion policy is critical to its ongoing success. Letting the public know what is achieved with the investment from the policy is key to its transparency and accountability. It also offers the opportunity to learn from good practice elsewhere, and to continuously improve projects and programmes. The task of safeguarding and developing competitiveness as a constant necessity in successful economies - no region in Europe can assume prosperity forever. It is important for regions to diversify their economic activities in order to sustain their success – regional policy strategic programming support this.

63 2. Strengthening governance
Reinforcing partnership (improve involvement of local and regional stakeholders, social partners, civil society) Introducing a new dimension: territorial cohesion Reinforcing territorial co-operation (more cooperation between regions within a country, macro-regional strategies…) Developing an ambitious urban agenda Addressing areas with specific geographical or demographic features Evaluations reports published in April 2010 give a clear indication of the achievements of the policy. Capturing the impact and results of cohesion policy is critical to its ongoing success. Letting the public know what is achieved with the investment from the policy is key to its transparency and accountability. It also offers the opportunity to learn from good practice elsewhere, and to continuously improve projects and programmes. The task of safeguarding and developing competitiveness as a constant necessity in successful economies - no region in Europe can assume prosperity forever. It is important for regions to diversify their economic activities in order to sustain their success – regional policy strategic programming support this.

64 3. Streamlining Delivery …based on lessons learnt
Improving financial management Reducing the administrative burden Simplifying financial discipline Reviewing financial control

65 4. Architecture of the policy
Full geographical coverage distinguishing between: Less developed regions More developed regions Transition regions replaces current phasing-out and phasing-in Territorial cooperation with its 3 strands In line with the Budget Review: How can the ESF be refocused on securing the 2020 targets? How can the ESF achieve greater visibility and predictable funding volumes? How can the ESF better serve the European employment strategy?

66 Timeline 19 October 2010: Budget Review (COM(2010)700)
9 November 2010: Fifth Cohesion Report 11 November 2010 – 31 January 2011: public consultation 31 January/1 February 2011: Cohesion Forum Spring 2011: Proposal on future financial perspectives Summer 2011: Legislative proposals End 2012: Adoption of new legislative package and expected agreement on new budget post 2013 2013: Finalisation of new programming documents 2014: Entry into force

67 Make your voice heard! Public consultation open until 31 January 2011:
ec.europa.eu/regional_policy/cohesion_report Thank you for your attention!


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