1 Reflections on the future Cohesion Policy DG Regional Policy European Commission

2 Main stages of the reflection process Fourth Report on Economic and Social Cohesion, 2007 Fifth Progress Report on Economic and Social Cohesion, 2008 Prospective work on 2020 challenges, 2008 Debate on territorial cohesion, 2008 Enhanced dialogue with academia, international organisations Barca Report April th Progress Report in June 2009 Ex-post evaluations and studies 2009 Technical discussions with MS experts begin October 2009 Fifth Cohesion Report 2010

3 Budget review European value added EU priorities – new challenges, climate change, globalisation, demographic change Transparency and accountability Flexibility Effectiveness Efficiency

4 Global challenges have a strong territorial dimension Rapid globalisation, competitive pressures Population change, migration flows Global climate change Rising energy prices, energy security Divergent patterns and dynamics across Europe

5 Note: Index based on estimated productivity, employment rate, high education rate and low education rate in Globalisation Globalisation vulnerability index, 2020

6 Demographic change Note: Index based on the estimated share of people aged 65 and above in total population, share of working age in total population and population decline in 2020 Source: EUROSTAT Demographic vulnerability index, 2020

7 Note: Index based on change in population affected by river floods, population in costal areas below 5m, potential drought hazard, vulnerability of agriculture, fisheries and tourism, taking into account temperature and precipitation changes. Source: EUROSTAT, JRC, DG REGIO Climate change Climate change vulnerability index, 2020

8 Implications of the economic crisis Focus on real economy, infrastructure and exit strategies Sustainability of public finances –Crisis as structural break in EU economies with impact on fiscal constraints; –Relevance of Stockholm Strategy to all MS (managing demographic change) Deficit and debt reduction Increasing employment rates Reform of social protection systems (pensions) –Increase in quality of public expenditure –Additionality, cofinancing, growth and stability pact

9 Mission and Objectives of Cohesion Policy Mission of the policy Social and economic cohesion remains central to the European integration process in the 21st century. –Treaty commitment to cohesion, implications of the new Lisbon treaty –A structural policy for all regions linked to the Single Market, Economic and Monetary Union, importance of current crisis Objectives of the policy The objectives of the policy need to be clarified (risk of mission creep). There is a need for stronger focus on European value-added. –Promoting growth in lagging regions –Improving competitiveness (Lisbon) –Addressing problems with cross-border and transnational spillovers

10 A policy for all European regions The European economic integration, driven by the Single Market can only work if all regions can contribute and reap the benefits. There is potential for growth across all types of regions, dependent on how well regions mobilize their assets and potentials. Cohesion policy should play a stronger role in strengthening inter-connections between lagging and leading regions (maximising spill-over effects of leading areas).

11 A More Effective Policy Need for concentration of resources on a limited number of priorities –Modernising the economy –Enhancing environmental sustainability –Promoting employment and sociao cohesion

12 More coherence in delivering strategic priorities Need for better coordination of policies and instruments at EU level. –Lisbon process –Sustainable development –Other Community policies Possibility of conditionalities (structural reform) and joint programming, single fund? Stronger focus on institutions

13 Delivery Mechanism Simplification More differentiated approach (proportionality) Increased role of financial engineering Block grants, budget support, payment for results? Reinforcement of the role of civil society Reinforcement of current multi-level governance system respecting both adminstrative structures and economic realities of Member States Greater role of regional and local actors in implementation of relevant EU priorities (Lisbon etc.)

14 Thank you for your attention!