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1 Investing in Europes future The fifth Cohesion Report presented by Lewis Dijkstra And Elisa Roller.

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Presentation on theme: "1 Investing in Europes future The fifth Cohesion Report presented by Lewis Dijkstra And Elisa Roller."— Presentation transcript:

1 1 Investing in Europes future The fifth Cohesion Report presented by Lewis Dijkstra And Elisa Roller

2 2 European Union Regional Policy – Employment, Social Affairs and Inclusion Main Points 1.Situation and trends in EU regions 1.Competitiveness 2.Well-being and social inclusion 3.Environmental Sustainability 2.Impact of national policies 3.Impact of other EU policies 4.Impact of Cohesion Policy 5.Conclusions: Options for the future

3 3 Promoting competitiveness and convergence

4 4 European Union Regional Policy – Employment, Social Affairs and Inclusion Regional disparities in the world

5 5 European Union Regional Policy – Employment, Social Affairs and Inclusion 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 6 European Union Regional Policy – Employment, Social Affairs and Inclusion …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 7 European Union Regional Policy – Employment, Social Affairs and Inclusion Areas by degree of urbanisation Densely populated –Min inhab. –Contiguous LAU2 with 500 inhab. per sq km Intermediate –Min inhab. –Contiguous LAU2 with 100 inhab. per sq km Thinly populated –Not intermediate or densely populated

8 8 European Union Regional Policy – Employment, Social Affairs and Inclusion IT Infrastructure: Broadband Access Infrastructure

9 9 European Union Regional Policy – Employment, Social Affairs and Inclusion Increasing broadband use Infrastructure

10 10 European Union Regional Policy – Employment, Social Affairs and Inclusion Territorial cohesion reinforces: 1.Access to services Broadband, health, education, banking… 2.Environmental sustainability Climate change, renewable energy, environmental protection 3.Functional geographies Metropolitan, remote rural regions… 4.Territorial Analysis At NUTS 3, LAU2 and grid level (ESPON, Urban Audit, Urban Atlas …)

11 11 European Union Regional Policy – Employment, Social Affairs and Inclusion 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 Infrastructure

12 12 European Union Regional Policy – Employment, Social Affairs and Inclusion 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 Infrastructure

13 13 European Union Regional Policy – Employment, Social Affairs and Inclusion More tertiary educated and less early school leavers boosts innovation Innovation

14 14 European Union Regional Policy – Employment, Social Affairs and Inclusion 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) Innovation

15 15 European Union Regional Policy – Employment, Social Affairs and Inclusion E-government services Institutions

16 16 European Union Regional Policy – Employment, Social Affairs and Inclusion 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 17 European Union Regional Policy – Employment, Social Affairs and Inclusion More competitiveness can increases employment and GDP

18 18 Improving well-being and reducing exclusion

19 19 European Union Regional Policy – Employment, Social Affairs and Inclusion Peoples 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 20 European Union Regional Policy – Employment, Social Affairs and Inclusion 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 21 European Union Regional Policy – Employment, Social Affairs and Inclusion Life expectancy lower in the East

22 22 European Union Regional Policy – Employment, Social Affairs and Inclusion Preventable mortality

23 23 European Union Regional Policy – Employment, Social Affairs and Inclusion Mortality rates high less developed MS and regions

24 24 European Union Regional Policy – Employment, Social Affairs and Inclusion Unemployment dropped in most regions until the crisis hit

25 25 European Union Regional Policy – Employment, Social Affairs and Inclusion Equal opportunities: good news

26 26 European Union Regional Policy – Employment, Social Affairs and Inclusion … and some bad news

27 27 European Union Regional Policy – Employment, Social Affairs and Inclusion Born outside the EU/US

28 28 European Union Regional Policy – Employment, Social Affairs and Inclusion Lower employment rates for born outside EU

29 29 European Union Regional Policy – Employment, Social Affairs and Inclusion Population change

30 30 European Union Regional Policy – Employment, Social Affairs and Inclusion East and West: opposite trends

31 31 European Union Regional Policy – Employment, Social Affairs and Inclusion Rural regions: different trends

32 32 European Union Regional Policy – Employment, Social Affairs and Inclusion Primary health care

33 33 European Union Regional Policy – Employment, Social Affairs and Inclusion Poverty and deprivation have a strong regional dimension

34 34 European Union Regional Policy – Employment, Social Affairs and Inclusion Deprivation is mostly urban

35 35 European Union Regional Policy – Employment, Social Affairs and Inclusion At-risk-of-poverty is mixed

36 36 European Union Regional Policy – Employment, Social Affairs and Inclusion Crime, violence and vandalism

37 37 Environmental Sustainability

38 38 European Union Regional Policy – Employment, Social Affairs and Inclusion 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 39 European Union Regional Policy – Employment, Social Affairs and Inclusion Renewable energy potential

40 40 European Union Regional Policy – Employment, Social Affairs and Inclusion … and Member States commitments

41 41 European Union Regional Policy – Employment, Social Affairs and Inclusion GHG Emissions

42 42 European Union Regional Policy – Employment, Social Affairs and Inclusion Air quality low in several cities

43 43 European Union Regional Policy – Employment, Social Affairs and Inclusion 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 44 Chapter 2: National Policies and Cohesion Public investments and structural reforms

45 45 European Union Regional Policy – Employment, Social Affairs and Inclusion 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 46 European Union Regional Policy – Employment, Social Affairs and Inclusion 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 47 European Union Regional Policy – Employment, Social Affairs and Inclusion Public investment and cohesion Public investment targets:Member State Lagging regionsGermany 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 48 European Union Regional Policy – Employment, Social Affairs and Inclusion 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 49 Chapter 3: Other EU Policies and Cohesion Implicit and explicit territorial dimensions and territorial impacts

50 50 European Union Regional Policy – Employment, Social Affairs and Inclusion 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 51 European Union Regional Policy – Employment, Social Affairs and Inclusion 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 52 European Union Regional Policy – Employment, Social Affairs and Inclusion 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 53 Chapter 4: The Impact of Cohesion Policy Social, economic and environmental benefits

54 54 European Union Regional Policy – Employment, Social Affairs and Inclusion 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 55 European Union Regional Policy – Employment, Social Affairs and Inclusion 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 56 European Union Regional Policy – Employment, Social Affairs and Inclusion 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 57 European Union Regional Policy – Employment, Social Affairs and Inclusion 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 58 European Union Regional Policy – Employment, Social Affairs and Inclusion 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 59 Conclusions The proposals for the future of Cohesion Policy

60 60 European Union Regional Policy – Employment, Social Affairs and Inclusion 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 Funding will remain concentrated in less developed regions

61 61 European Union Regional Policy – Employment, Social Affairs and Inclusion IV. Options for the future Cohesion Policy 1.Enhancing European added value 2.Strengthening governance 3.Streamlining delivery 4.Architecture of Cohesion Policy

62 62 European Union Regional Policy – Employment, Social Affairs and Inclusion 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

63 63 European Union Regional Policy – Employment, Social Affairs and Inclusion 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

64 64 European Union Regional Policy – Employment, Social Affairs and Inclusion Improving financial management Reducing the administrative burden Simplifying financial discipline Reviewing financial control 3. Streamlining Delivery …based on lessons learnt

65 65 European Union Regional Policy – Employment, Social Affairs and Inclusion 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? 4. Architecture of the policy

66 66 European Union Regional Policy – Employment, Social Affairs and Inclusion 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 : Finalisation of new programming documents 2014: Entry into force

67 67 European Union Regional Policy – Employment, Social Affairs and Inclusion 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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