REGIONS 2020 Regional Responses to European Priorities Wolfgang Munch European Commission DG REGIO

Regions 2020 structure The policy context: from challenges to priorities Regions 2020 revisited Policy Lessons

The policy context: from challenges to priorities

Context of the Regions 2020 discussion Budget review has marked the previous discussions. Europe 2020 Agenda: A new lead strategy for the EU

European Priorities responding to global challenges smart growth skills, education, innovation inclusive growth skills, jobs, flexicurity sustainable growth productivity, green growth, low carbon economy Corresponding challenges globalisation, social polarisation, demographic change globalisation, climate change, energy

Regions 2020 revisited

Globalisation Regions of North-West periphery well placed; Southern and Eastern regions more exposed; Mixed patterns in Western and Central Europe; Urban areas better placed.

Absorption, diffusion and accessibility Knowledge base for growth: Innovation Absorption, diffusion and accessibility top performing regions: Pink: Metropolitan knowledge-intensive services regions Light blue: High-tech regions many regions with mixed performance low performing regions: Dark blue: Traditional Mediterranean Europe Source: ETEPS yellow regions perform above average on Absorption (Activity) and Diffusion (Productivity) and below average on Accessibility. green regions above average on Diffusion (High-tech manufacturing) and Absorption (Skilled workers) and average on Accessibility. light blue regions perform well above average on Diffusion (High-tech manufacturing, Private technology and Productivity) and above average on Accessibility (Private technology) and Absorption (Creative workers and Activity). They perform below average on Public knowledge. pink regions perform above average on Absorption (Knowledge-intensive services, Creative workers), Diffusion (Private technology and Productivity) and Accessibility (Private technology). blue regions perform below average on Accessibility (Private technology), Absorption (Creative workers, Skilled workers and Activity) and Diffusion (High-tech manufacturing and Private technology). red Type 3 regions perform well above average on Accessibility (Public knowledge), above average on Absorption (Creative workers) and below average on Diffusion (Productivity). purple regions perform below average on Diffusion (Private technology and Productivity), Absorption (Knowledge-intensive services and Creative workers) and Accessibility (Private technology). They do perform well on Skilled workers.

The economic crisis Globalisation Effects of the economic crisis (first results) Globalisation Diminished growth perspectives UK, Ireland, the Baltic's see worsening perspectives; improved position in Western and Central Europe Source: ISMERI

Demographic change and social inclusion Aging and Migration Demographic change and social inclusion 33 % of regions will face population decline Highest share of elderly population (aged 65+) in Eastern Germany, Finland, Northern Spain, Italy low healthy life expectancy in Fin, most new Member States High share of foreign born in cities

Aging and Migration The neighbourhood and migration: Strong push and pull factors in the south, diminishing push factors in the East

Adaptation to Climate Change Southern Europe most vulnerable; 170 million people live in strongly affected regions; North and Western regions less affected, except lowland coastal areas.

Low carbon economy Energy determined by national energy policy choices; Eastern and southern periphery more affected by security of supply. Ireland, Poland, Czech Republic and Bulgaria face strong challenges (carbon intensity and security)

Key Lessons: Asymmetric impacts result in regional disparities. Challenges create opportunities and vulnerabilities. Regions will be affected by a number of challenges. Strong differences in social, economic and environmental impact. Challenges affect rich and poor regions alike. Challenges don’t stop at borders (neighbourhood). The crisis affects a number of drivers. Cities are most impacted in terms of human systems but host many opportunities

Lessons for the future Regional Policy Need for continued support for all European Regions to drive forward regions to focus on the promotion of new approaches, re-orientate private and public investments. Integrated solutions will be key for adapted responses. Mobilisation of territorial potentials. Cohesion Policy is crucial for achieving future objectives of the Europe 2020 Agenda. smart growth inclusive growth sustainable growth multilevel governance helps translating priorities into ownership and projects