Final Conference 15 September 2005 LiRa-2: From Vision to Action Charles White Principal Administrator Regional Policy Directorate-General European Commission Museum of Science and Industry Manchester, UK

EN Regional Policy EUROPEAN COMMISSION European Cohesion Policy Presentation to participants at LIRA conference, Manchester 15 September 2005

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 2 Four things to remember This is the second biggest budget of the EU and is the effective arm of other policies (environment, transport, energy…) This policy has successfully reduced the gaps between the regions in Europe. It works by investing in people, business, the environment and transport: not through hand outs It has improved management, governance growth and productivity in all the places it has been applied A European Cohesion Policy Simple message

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 3 A short history After a period of differing practices there were three reforms between 1988 and 2000 The Commission proposes a fourth one to enable the structural funds to face up to the future: –Greater disparities with enlargement –Achieving growth and sustainable development the Lisbon and Gothenburg agendas –Globalisation and restructuring –Dealing with ageing population, slower growth The early days

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 4 Position now and to end Structural Funds: –ERDF: European Regional Development Fund –ESF: European Social Fund –EAGGF: …Agricultural Guidance and… Financial Instrument for Fisheries (tiny) Cohesion Fund (based on GNP/GNI) Pre accession instruments (ISPA, PHARE etc.) Budget of 37billion p.a. fixed till end of period Money

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 5 Position now and to end Objectives –Obj 1, biggest budget (69%), widest range –Obj 2, (11.7%) concentrated on job creation –Obj 3, (12.6%) education and training systems 4 Community Initiatives (4%) –INTERREG –URBAN2 –LEADER+ –EQUAL Some Innovative Measures (0.7%) –Regional Information Society, Innovation Transfer Mechanisms

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 6 Benefits of Community method Multi annual programming brings objectivity, improved management (North Jutland, Ireland, Mezzogiorno, Basque country) Partnership principle has improved governance, involvement of civil society (UK, Austria) Decentralisation means greater responsibilities for the regions, greater confidence Leverage effect makes EC Euro more effective, encourages greater national investment (Portugal, Sweden) context

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 7 Priorities of the reform Three new objectives Priorities of the reform Three new objectives Convergence and competitiveness (regions below 75% GDP, statistical effect regions and the Cohesion fund) 78% of budget Regional competitiveness (former Obj 2&3 with accent on Lisbon/Gothenburg, mainstream URBAN) 18% of budget Territorial co-operation (all former INTERREG elements with encouragement to mainstream them also in above objectives) 4% of budget Reform of the policy Conclusions

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 8 Implementation system: evolution not revolution Implementation system: evolution not revolution We keep the principles which made this policy a success: multi-annual programming, partnership, evaluation, co-finance, shared responsibility We keep the n+2 rule and system of advances Simplification: –Cut down number of financial instruments: 3 not 6 and single fund programmes only –Clearer division of responsibilities with the sustainable development policy –Reduce the stages of programming (policy document from each MS, operational programmes) –Simplify financial management (priority axes) and controls: introduce proportionality, contracts More strategic approach: Political discussion in Council, EP opinion, Commission mandate, annual report presented to spring Council Reform of the policy Conclusions

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 9 Financial perspectives The budget is now about 1.07% of GNI The 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

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 10 Timetable June 2005: (No) Decision by Council on Financial Perspectives July 2005Draft Community Strategic Guidelines adopted by Commission: public consultation Autumn 2005: - Decision by Council and European Parliament on cohesion policy regulations - Community Strategic Guidelines published - Preparation of National Strategic Reference Frameworks 2006 (?): Preparation of programmes for period Jan 2007: Implementation begins: regime of 12ths if no budget Next stages

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 11 The new Strategic guidelines: building in the Lisbon agenda (1) 4.1 Making Europe and its regions a more attractive place to invest and work Expand and improve transport infrastructures Improve the environmental contribution to growth and jobs Address the intensive use of traditional energy sources 4.2 Knowledge and innovation for growth Increase and improve investment in RTD Facilitate innovation and promote entrepreneurship Promote the information society for all Improve access to finance Priorities

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 12 The new Strategic guidelines: building in the Lisbon agenda (2) 4.3More and better jobs Attracting and retaining more people in employment and modernising social protection systems Improving adaptability of workers and enterprises and the flexibility of the labour market Increasing investment in human capital through better education and skills Priorities

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 13 The new Strategic guidelines: building in the Lisbon agenda (3) 5Taking account of the Territorial Dimension of Cohesion Policy The contribution of cities to growth and jobs Supporting the economic diversification of rural areas Co-operation: cross-border/trans- national/interregional Priorities

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 14 I) Expanding and improving transport Infrastructures International and interregional connections offer higher returns in terms of competitiveness… than small scale regional transport infrastructure Cohesion Fund focuses on TENs esp. environmentally sustainable transport and urban transport systems ERDF focuses on growth (tourism, attractiveness etc) a more attractive place…

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 15 I) Expanding and improving transport Infrastructures (cont.) Priority to projects of European interest (in areas eligible under 'convergence') such as –Cross border links (cf trans-national strand of territorial co-operation objective) –Those overseen by a European co-ordinator (which can shorten lapse between planning & building) Support greater access to rail infrastructure, interoperability, ERTMS systems on board/track Support Motorways of the sea as alternative to long- distance rail and road Improve connectivity of land locked territory (TEN-T) Promote environmentally sustainable urban transport a more attractive place…

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 16 IV) Increase and improve investment in RTD Strengthen co-operation between businesses and between business and public research institutions by –Supporting regional and trans-regional clusters of excellence –Setting up trans-national European technology initiatives Support RTD activities in SMEs, enable SMEs to access RTD services in publicly funded research institutions Complement 7th Framework Programme for RTD Knowledge, innovation for growth

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 17 IV) Increase and improve investment in RTD Design RTD actions bearing in mind indicators of Patenting at regional level Employment/mobility of RTD workers, post-grad students Geographical location of private/public research institutions Existence of clusters of innovative businesses Knowledge, innovation for growth

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 18 V) Facilitate innovation and promote entrepreneurship (1) Make regional RTD innovation and education supply more efficient and accessible to firms with poles of excellence, regional clusters. Ensure business support services, technology transfer, science parks, ICT centres, incubators, clusters, plus more traditional services like management, marketing, technical support, recruitment, other professional and commercial services Knowledge, innovation for growth

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 19 V) Facilitate innovation and promote entrepreneurship (2) Fully exploit European strengths in eco- innovations, introduce environmental management systems (cf FP for Competitiveness and innovation) Promote entrepreneurship, and the creation of new firms, spin out and spin off for example through –Awareness raising, prototyping –Tutoring, managerial and technological support to entrepreneurs-to-be Knowledge, innovation for growth

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 20 (XII) The contribution of cities to growth and jobs Improve competitiveness of neighbouring cities and balance between strongest regions and rest of urban structure Rehabilitate physical environment, preserve/develop heritage Promote entrepreneurship, local employment and community development Strengthen security, economic social and cultural integration Fight discrimination Prepare medium to long term development plan for urban regeneration Territorial cohesion and co-operation Territorial cohesion and co-operation

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 21 (XIV) Cross border/trans-national/inter- regional co-operation (XIV) Cross border/trans-national/inter- regional co-operation Closer co-operation should focus on Growth and Jobs Agenda Actions that contribute to economic and social integration, esp. where there are wide cross-border disparities Improve existing transport and communication infrastructure Territorial cohesion and co-operation Territorial cohesion and co-operation

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 22 Bigger challenges in future Bigger challenges in future Enlargement will widen development gap Globalisation accelerates restructuring Effects of technological revolution Development of the knowledge economy Achieving the Lisbon/Gothenburg agenda Ageing population, growing immigration Slowing economic growth and economic restructuring will increase unemployment Europe needs a reinforced Cohesion Policy Why a European Cohesion policy? Challenges for The Future

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 23 Metro Valencia Why a European Cohesion policy? Challenges for The Future

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 24 Tramway Valencia Why a European Cohesion policy? Challenges for The Future

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 25 Mobility scheme Limburg Why a European Cohesion policy? Challenges for The Future

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 26 Metro Madrid Why a European Cohesion policy? Challenges for The Future

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 27 Metro Bilbao Why a European Cohesion policy? Challenges for The Future

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 28 Wolverhampton light rail Why a European Cohesion policy? Challenges for The Future

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 29 Athens Metro Why a European Cohesion policy? Challenges for The Future

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 30 Athens Tramway Why a European Cohesion policy? Challenges for The Future

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 31 Athens Suburban Railway Why a European Cohesion policy? Challenges for The Future

Regional Policy EUROPEAN COMMISSION A new partnership for Cohesion 32 Police motorcycles, Spain Why a European Cohesion policy? Challenges for The Future

LiRa-2 Final Conference 15 September 2005 LiRa-2: The International Network of Light Rail Cities From Vision to Action Museum of Science and Industry Manchester, UK