Financing Growth and Cohesion in the enlarged EU 24 November 2005 Financing urban actions and sustainable communities Financing urban actions and sustainable communities Dr Elisabeth Helander Director DG Regional Policy European Commission

URBAN II programmes in 70 European cities

Urban actions: main financing needs -Transport and communication -Environment -Urban renewal: buildings for enterprises, commercial centres, public spaces; housing -Promoting social inclusion, equal opportunities and security -Training -Technological innovation, start-ups -Small businesses, microenterprises

Transport, environment and other large infrastructure projects The Cohesion Fund and the European Regional Fund (ERDF) give grant financing to major projects The European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) gives loans to important infrastructure projects Preparing large infrastructure projects are technically and financially complex JASPERS will provide expertise and technical assistance for project preparation and for setting up public-private partnerships (PPPs) to new Member States JASPERS will come from the ERDF, the EIB and EBRD resources

Urban renewal Towards enhanced cooperation Commission-IFIs: The European Commission and the Banks aim at developing an integrated approach combining ERDF grants with EIB and CEB loans Grants for urban development will continue to be funded by grants from the ERDF Urban renewal and social housing would be financed by loans from the European Investment Bank (EIB) and the Council of Europe Bank (CEB)

Urban renewal In addition to grants, we are exploring how the ERDF could channel reimbursable aid for urban renewal via competent financial intermediaries in Member States Such reimbursable aid could for example support renovation or construction of buildings and spaces for commercial enterprises and training, health care facilities Projects should normally be co-financed by private partners

Promoting social inclusion and integration of immigrants Training and integration measures will mainly be financed by grants from the European Social Fund (ESF) Measures for social inclusion may also be funded in ERDF programmes in the framework of integrated actions

Neighbourhood Disparities Source: Urban Audit

Small businesses and artisans, micro- enterprises and social enterprises In addition to direct grants the ERDF will support small businesses via JEREMIE JEREMIE will offer loans (including microcredits), equity, venture capital and guarantees via financial intermediaries The EIF and other financial institutions will provide additional funding for loans The EIF loans can refinance the national public component of the programme grants

Cohesion Policy and Cities: The Urban Contribution to Growth and Jobs in the Regions l Commission working paper (under preparation) l Identifies financing needs for the Structural Funds (ERDF and ESF) l The document will be discussed with Ministers responsible for urban affairs in Bristol 6-7 December 2005

Cohesion Policy and Cities: the Urban Contribution to Growth and Jobs in the Regions: Summary of content  Attractive cities accessibility and mobility environment  Supporting technological innovation, SMEs and micro-enterprises  Promoting social inclusion, equal opportunities and security urban renewal training  Governance, including citizen participation and network programme for exchange of experience  New innovative EU-financing mechanisms and public-private partnerships