Presentation on theme: "Investing in Europe’s future"— Presentation transcript:
1 Investing in Europe’s future The fifth Cohesion Reportpresented by Lewis DijkstraAnd Elisa Roller
2 Main Points Situation and trends in EU regions CompetitivenessWell-being and social inclusionEnvironmental SustainabilityImpact of national policiesImpact of other EU policiesImpact of Cohesion PolicyConclusions: Options for the future
5 Large economic disparities remain… Regional disparities are smaller in the US, but bigger in NAFTABrazil, Russia, India and China have bigger disparitiesReducing disparities requires investing ininfrastructureinnovationinstitutions
6 …but convergence is taking place Less developed countries are growing faster and are likely to recover faster from the crisisLess developed regions in the EU are growing faster, reducing regional economic disparities
7 Areas by degree of urbanisation Densely populatedMin inhab.Contiguous LAU2 with 500 inhab. per sq kmIntermediateContiguous LAU2 with 100 inhab. per sq kmThinly populatedNot intermediate or densely populated
11 Road network is incomplete InfrastructureRoad network is incompleteDense network in EU-15 little need for additional capacity. Focus should be demand sideIn Poland, Romania and Bulgaria, network is almost entirely missing.Investment in core network important in the East
12 Rail network and daily trains InfrastructureRail network and daily trainsIntense use in the UK, Italy, Germany and the NetherlandsLess frequent trains in most central and eastern countriesIreland, 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 researchWeak diffusers should invest in access to knowledge and technologyWeak absorbers need to improve secondary and tertiary educations (both quality and quantity)
16 Competitive European Regions The focus should beIn less developed regions:InstitutionsQuality of basic educationBasic infrastructure andHealthIn highly developed regions:Business sophisticationTechnology and innovationIn all regionsHigher education & trainingLabour market efficiencyEqual opportunitiesAccess to markets
17 More competitiveness can increases employment and GDP
38 Climate change adaptation More extreme weather events: storms, heat waves, heavy rains…More frequent floodsMore droughtsHotter summers leading to a less attractive tourism summer climate in the southLess snow in the mountains effecting water supply and winter tourism
43 Environmental quality EU directive on waste water treatment still requires considerable investments in some Eastern MSAlso 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 developmentNational governments decide on:Regional distribution of public investmentsInvestments in education and health careSocial welfare and income redistributionScope and speed of structural reformsMacro-economic stability
46 Public investment important source of convergence Many less developed regions have lower levels of physical infrastructure and need more public investmentPublic investment is higher in cohesion countries relative to GDPPublic investments are important for growth
47 Public investment and cohesion Public investment targets:Member StateLagging regionsGermany and Francenon-lagging regions despite large internal disparitiesItaly, Spain, PortugalPeripheral or specific geographic regionsSweden, Austria and UKCapital regionMost central and eastern MS. Ex. Czech Republic, Slovakia and Hungary
48 Structural ReformsStructural reforms in the areas of labour market, innovation, the business environment, competition and better regulation have been slow and unevenA better and faster implementation of structural reforms could enhance the growth in less developed regions and strengthen the impact of cohesion policyA 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 andterritorial impacts
50 Implicit territorial dimension Spatially blind policies, like the Framework Programme have a strong territorial dimensionThey tend to favour highly innovative regions and capital regionsLess 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 areaSeveral EU directives focus on urban areas (air quality, waste water…)Natura 2000 is protects specific areasCommon Agricultural Policy differentiates support for less favoured areasState 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 moreagglomeration with inhabitants or more or zones with a high population density selected by MSTerritorial 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 developmentObjective 1 regions increased their long term productive potential and enhanced the level of GDP per capitaModelling 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-upsAt least 1 million gross jobs were created in supported companiesincreased private investments and R&D activity in firmsBut support for large firms may not be necessaryBigger role of loans?
56 Promoting employment, education and inclusion 40% of the unemployed trained have found a jobFunded one third of Active Labour Market Policies expendituretargets specific vulnerable groups such as youth, women, minorities, low-skilled, long-term unemployed…
57 Cohesion policy has improved connectivity 2,000 km of motorways builtthe construction of 4,000 km of rail, including high-speedFuture 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 directivesAn additional 23 million inhabitants are served by waste water projects to EU standards, but more is neededAn additional 20 million inhabitants have been served by water supply projects
59 The proposals for the future of Cohesion Policy ConclusionsThe 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 2020Funding will remain concentrated in less developed regionsEurope 2020 Strategy – a new strategy for EuropeSmart growthGrowth for allSustainable growthEU Member States will propose national targets for 2011
61 IV. Options for the future Cohesion Policy Enhancing European added valueStrengthening governanceStreamlining deliveryArchitecture of Cohesion PolicyEvaluations 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 prioritiesFocus resources on limited number of key prioritiesIntroduce stronger incentives and conditionalityImproving evaluation, performance and resultsStronger emphasis on new financial instrumentsEvaluations 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 cohesionReinforcing territorial co-operation (more cooperation between regions within a country, macro-regional strategies…)Developing an ambitious urban agendaAddressing areas with specific geographical or demographic featuresEvaluations 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 managementReducing the administrative burdenSimplifying financial disciplineReviewing financial control
65 4. Architecture of the policy Full geographical coverage distinguishing between:Less developed regionsMore developed regionsTransition regions replaces current phasing-out and phasing-inTerritorial cooperation with its 3 strandsIn 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 Report11 November 2010 – 31 January 2011: public consultation31 January/1 February 2011: Cohesion ForumSpring 2011: Proposal on future financial perspectivesSummer 2011: Legislative proposalsEnd 2012: Adoption of new legislative package and expected agreement on new budget post 20132013: Finalisation of new programming documents2014: Entry into force
67 Make your voice heard! Public consultation open until 31 January 2011: ec.europa.eu/regional_policy/cohesion_reportThank you for your attention!