Presentation on theme: "Cohesion Policy Incorporating the Lisbon Strategy"— Presentation transcript:
1 Cohesion Policy 2007-2013 Incorporating the Lisbon Strategy Referring to the financial perspectives and the latest progress report on Cohesion.
2 Discussion up to February 2004 ENDiscussion up to February 2004General support for assisting areas below 75% of EU average GDPPressure to help 'statistically affected' regionsPressure for 'territorial cohesion' (town/country, islands, mountains)The great success and importance of Objective 2 (restructuring of economies hit by change)Divergence over cash and method ( 'one per cent budget', re-nationalisation)Divergence over the Lisbon AgendaBackground
3 The Lisbon Agenda: growth, competitiveness, employment The Agenda was adopted on March 2000Aims to make Europe the most competitive and dynamic economy in the world…Measures on sustainable development were adopted in May 2001 (Gothenburg agenda)Various benchmarks and targets: employment 70% by 2010, R&D 3% of GDP…Recent reports indicate slow progressbackground
4 The Lisbon Agenda: mid term review Key recommendations:The need for a spending instrument at EU levelThe need for increased ownership involving the regions and social partnersThe need for a more strategic approachbackground
5 Cohesion Policy in support of Growth and Jobs ENCohesion Policy in support of Growth and JobsEurope must:renew the basis of its competitiveness,increase its growth potential and its productivitystrengthen social cohesion, placing the main emphasis on knowledge, innovation and the optimisation of human capital.To achieve these objectives it mustmobilise all appropriate national and Community resources- including Cohesion PolicyEuropean Council, March 2005
6 Spring European Council ENKey recommendations1) Community resources, including cohesion policy, should be mobilised for 3 dimensions of the strategy – economic, social and environmental.2) Regional and local actors should take greater ownership of the strategy3) Greater synergies between Community funds and the EIB in R&DSpring European Council
7 Key recommendations (cont.) 4) Reduction in the general level of state aid5) Investment in infrastructure6) Create more jobs with more active employment policies.7) Integrated guidelines to be issued at Community-level;MS to establish national reform programmes on growth and jobsSpring European Council
8 A more strategic approach ENA more strategic approachStaff Working Document SEC (2005) 622 of 2 May 2005provides guidance to MS in drawing up national reform programmesnew reporting structure to include cohesion policyCommunity Lisbon Programme (what can be done at EU level)Clearer divisionofresponsibilities
9 New reporting structure ENNew reporting structureOctober 2005:National Reform Programmessubmission by Member States1January 2006:first Annual Progress Reportsubmitted by the Commission on the basisof analysis of national reform programmes2March 2006:Spring European Counciladoption by European Council of updated recommendations35. Integrated GuidelinesOctober 2006:submission by Member States of implementation reportsIncludes chapter on national strategic reference frameworks and new OPs4
10 Financial perspectives 2007-2013 ENFinancial perspectivesThe budget is now about 1.07% of GNIThe Commission proposed 1.21%Six MS want 1%Parliament has proposed 1.18% (with Cohesion getting 0.41% of GDP)Proposed compromise for June Summit was 1.06%, with, for Cohesion Policy:€307bn (not 336bn): 0.37% GDP (not 0.41%)Convergence 82% (not 78%)Competitiveness 15% (not 18%)Territorial co-operation 2% (not 4%)Financial aspects
11 Priorities of the reform Three new objectives Convergence and competitiveness (regions below 75% GDP, statistical effect regions and the Cohesion fund)Regional competitiveness (former Obj 2&3 with accent on Lisbon/Gothenburg, mainstream URBAN)Territorial co-operation (all former INTERREG elements with encouragement to mainstream them also in above objectives)Reform of the policyConclusions
12 Priorities of the reform Administrative simplification ENPriorities of the reform Administrative simplificationKeep what is known to be effective (programming, leverage, partnership, decentralised management)Reduce the more complicated aspects (number of instruments, stages of programming etc.) while augmenting the role of the Council (adoption of strategic guidelines)Reform of the policyConclusions
13 Cohesion Policy 2007-2013 Incorporating the Lisbon Strategy The latest progress report on Cohesion.
14 ENDisparity levelsDisparities in GDP per head between EU-25 still considerable (2003):Latvia – 41% of EU averageIreland – 132% of EU averageLuxembourg – 215% of EU averageNew Member States – below 90% of EU averageThirdprogress report
15 Regional disparities Regional disparities remain high (2002) ENRegional disparitiesRegional disparities remain high (2002)189% of the EU-25 average in the 10 most prosperous regions36% in the 10 least prosperous ones.Over 1/4 of the EU’s population in 64 regions have GDP per head below 75% of EU average.90% of population in the new Member States living in regions with GDP per head below 75% of EU average13% of population in EU-15 living in regions with GDP per head below 75% of EU averageThirdprogressreport, Part I
16 ENTrends in disparitiessince the mid-1990s, average EU growth growth has average just over 2% per yearregional disparity levels are higher than national disparities but are also falling10% of EU25 population living in poorest regions (2.2% of total GDP in 2002; 1.5% in 1995)still high levels of internal disparitiesPart I
17 Regional Disparities in EU27 ENRegional Disparities in EU27GDP per head in % in PPP (2002)<50 125Index, EUR-27 = 100
18 ENEmployment ratesEmployment rates – well short of the 70% Lisbon target62.9% for the EU25 in 2003Denmark, Sweden, the Netherlands and the UK – only MS with 70%22 million additional jobs needed to meet 70% targetIn the new Member States, 7 million additional jobs needed to meet 70% target (increase of ¼)200 of the 254 EU regions are below the target ratealmost 15% of the population lives in regions where the rate is below 55%employment rates remain low among most of the least prosperous regions.Part I
19 Geographical Eligibility for Structural Funds Support 2007-2013 ENGeographical Eligibility for Structural Funds SupportDraft April 2005, GDP/head Objective 'RegionalCompetitiveness and Employment'Convergence objectiveRegions > 75% in EU25)Convergence objectivestatistically affected regionsObjective 'RegionalCompetitiveness and Employment'Phasing-in regions,"naturally" above 75%Index EU 25 = 100Source: Eurostat
20 Cohesion Policy 2007-2013 Incorporating the Lisbon Strategy The Strategic guidelines.
21 The new Strategic guidelines: building in the Lisbon agenda (1) I) Making Europe and its regions a more attractive place to invest and workexpand and improve transport infrastructuresimprove the environmental contribution to growth and jobsaddress the intensive use of traditional energy sourcesII) Knowledge and innovation for growthincrease and improve investment in RTDfacilitate innovation and promote entrepreneurshippromote the information society for allimprove access to financePriorities
22 The new Strategic guidelines: building in the Lisbon agenda (2) III) More and better jobsattract and retain more people in employment and modernise social protection systemsimprove adaptability of workers and enterprises and the flexibility of the labour marketincrease investment in human capital through better education and skillsadministrative capacityhealth and the labour forcePart IV) Territorial Cohesion and co-operationThe contribution of cities to growth and jobsSupporting the economic diversification of rural areasCo-operation: cross border/trans-national/inter-regionalPriorities
23 ENTimetableJune 2005: (No) Decision by Council on Financial PerspectivesJuly 2005 Draft Community Strategic Guidelines adopted by Commission: public consultationAutumn 2005: - Decision by Council and European Parliament on cohesion policy regulations- Community Strategic Guidelines published- Preparation of National Strategic Reference Frameworks2006 (?): Preparation of programmes for period1 Jan 2007: Implementation begins: regime of 12ths if no budgetNext stages