EN Regional Policy EUROPEAN COMMISSION The new European Regional Development Fund Brussels, 12 October 2006 Committee of the Regions N. De Michelis, DG REGIO

Regional Policy EUROPEAN COMMISSION A new regional development policy: from comparative to competitive advantages from compensating disadvantages to supporting development opportunities from geographical to thematic concentration of interventions from direct support of firms to supply of public goods and services The economic logic of the new regional policy

Regional Policy EUROPEAN COMMISSION The legislative architecture Regulation 1083/2006 [OJ L 210, ]: GENERAL PROVISIONS Regulation 1080/2006 [OJ L210, ]: ERDF Regulation 1084/2006 [OJ L210, ]: COHESION FUND Regulation 1081/2006 [OJ L210, ]: ESF INTER-INSTITUTIONAL AGREEMENT [OJ C 139, ] Commission Regulation: IMPLEMENTING PROVISIONS

Regional Policy EUROPEAN COMMISSION The legislative architecture Regulation 1083/2006 [OJ L 210, ]: GENERAL PROVISIONS INTER-INSTITUTIONAL AGREEMENT [OJ C 139, ] ELIGIBILITY DECISIONS: Convergence [OJ L243, ] Phasing in [OJ L243, ] Cohesion Fund [OJ L243, ] Cooperation [...] FINANCIAL DECISIONS: Convergence [OJ L243, ] Competitiveness [OJ L243, ] Cooperation [OJ L247, ]

Regional Policy EUROPEAN COMMISSION What can you find in the new ERDF regulation: list of priorities of intervention (articles 4-6) list of non-eligible expenditures (article 7) treatment of specific situations (articles 8-11) specific provisions for the European territorial co-operation objective (articles 12-21) The legislative architecture

Regional Policy EUROPEAN COMMISSION THREE KEY PRIORITES: 1.Innovation and R&TD 2.Environment and risk prevention 3.Accessibility... but actual policy mix should reflect analysis of the regional situation and available resources Priorities Articles 4-6

Regional Policy EUROPEAN COMMISSION CONVERGENCE: a wider set of possibilities to reflect huge development needs and higher aid intensity (around EUR 160 per year, per person) COMPETITIVENESS: focus on the three priorities + some flexibility to respond to specific situations (e.g. phasing in regions) COOPERATION: wider choice for cross- border (local), focus on three priorities for transnational, networks Priorities Article 4 Article 5 Article 6

Regional Policy EUROPEAN COMMISSIONPriorities

Regional Policy EUROPEAN COMMISSION Eligibility of expenditure is determined by national legislation with exceptions: interests on debts purchase of land de-comissioning of nuclear power stations recoverable value added tax housing Eligibility Article 7 and Article 56.4 of the general regulation Article 7 and Article 56.4 of the general regulation

Regional Policy EUROPEAN COMMISSION Housing is eligible, but: only in recently acceded Member States only as a component of a wider urban development plan targeted at distressed areas only within the limits of 3% of ERDF programmes or 2% of total ERDF allocation (around EUR 1.6 billion) limited to multi-family housing and to buildings owned by public authorities or non-profit operators Eligibility Article 7.2 and Chapter III.1 of the Commission implementing regulation Article 7.2 and Chapter III.1 of the Commission implementing regulation

Regional Policy EUROPEAN COMMISSION Urban development integrated strategies (in addition to) raise flexibility to 15% Rural and fisheries clarify roles of different instruments Geographical and natural handicaps incentive to concentrate (without prejudice to) Outermost regions operation aid (minimum of 50%) Article 8 Territorial aspects Specific provisions Article 9 Article 10 Article 11

Regional Policy EUROPEAN COMMISSION Content of programmes: Simplified content, in comparison with the convergence and regional competitiveness objectives Eligibility of expenditure: Relevant national rules applies under the ETC objective to be agreed by the participating member States European territorial cooperation Specific provisions 1. OPERATIONAL PROGRAMMES (Article 12) 2. ELIGIBILITY (Article 13) and Chapter III.2 of the Commission implementing regulation 2. ELIGIBILITY (Article 13) and Chapter III.2 of the Commission implementing regulation

Regional Policy EUROPEAN COMMISSION Specificities of the authorities: Single set of authorities (managing, certifying and audit) by programme Setting up of a joint technical secretariat by the managing authority Audit authority assisted by a group of auditors comprising representatives of each member State Managing authorities delegate the verification of regularity of expenditure and operations to a group of controllers European territorial cooperation Specific provisions 3. MANAGEMENT, MONITORING AND CONTROL (Articles 14-15)

Regional Policy EUROPEAN COMMISSION Financial management and control: Member States designate controller(s) responsible for verifying the legality and regularity of expenditure Amounts paid as a result of an irregularity recovered by the lead beneficiary European territorial cooperation Specific provisions 3. MANAGEMENT, MONITORING AND CONTROL (Articles 16-17)

Regional Policy EUROPEAN COMMISSION Selection of operations: Beneficiaries from at least two (cross border, transnational) or three (interregional) countries Specific conditions to be fulfilled : joint development / implementation / staffing and financing European territorial cooperation Specific provisions 4. OPERATIONS (Article 19)

Regional Policy EUROPEAN COMMISSION Role of the lead beneficiary: Bear the responsibility for ensuring the implementation of the operation Involved in the financial management (payment and certification) Lay down appropriate arrangements with beneficiaries to guarantee sound management European territorial cooperation Specific provisions 4. OPERATIONS (Article 20)

Regional Policy EUROPEAN COMMISSION Location of operations: Up to 20% of the ERDF under a CBC programme can be spent in NUTS III regions adjacent to the eligible areas. Exceptionally, this provision can be extended to NUTS II regions 20% for expenditure incurred by partner outside the eligible area for transnational cooperation 10% of the ERDF can be spent outside the EC European territorial cooperation Specific provisions 4. OPERATIONS (Article 21)

EN Regional Policy EUROPEAN COMMISSION THANK YOU FOR YOUR ATTENTION EM: THANK YOU FOR YOUR ATTENTION EM: