Proposals from the European Commission EU Cohesion Policy 2014 – 2020 Proposals from the European Commission

Structure of the presentation What is the impact of EU cohesion policy? Why is the Commission proposing changes for 2014-2020? What are the main changes? How will the funding be allocated? When will the changes come into effect? Where can I find further information?

1. What is the impact of EU Cohesion Policy?

EU Cohesion Policy invests in … Support for SMEs Training Energy efficiency Renewable energy Transport Cooperation between regions Research and innovation

Results of EU Cohesion Policy (figures from 2000-2006 period) 8400 km of rail built or improved 5100 km of road built or improved Access to clean drinking water for 20 million more people Training for 10 million people each year Over 1 million jobs created GDP/capita up 5 % in newer Member States

Yet gaps between regions remain GDP/capita* < 50 75-90 100-125 *index EU27=100 50-75 90-100 > 125 Average 2006 ‒ 2007 ‒ 2008 ► Closing these gaps remains a key objective        Canarias Guyane Réunion Guadeloupe/ Martinique Madeira Açores Malta Regional GDP figures: 2006-07-08 © EuroGeographics Association for the administrative boundaries │ 6

2. Why is the Commission proposing changes for 2014-2020?

Objectives Deliver the Europe 2020 strategy objectives of smart, sustainable and inclusive growth Focus on results Maximise the impact of EU funding

Connecting Europe Facility Proposed EU budget 2014-2020 “Ambitious but realistic” proposals issued by the Commission in June 2011 for the Multiannual Financial Framework (MFF) 2014-2020 Cohesion Policy 33 % (€336 billion) Other policies (agriculture, research, external etc.) 63 % (€649 billion) Connecting Europe Facility 4 % (€40 billion)

3. What are the main changes?

Reinforcing effectiveness and performance Focus on results Common & programme-specific indicators, reporting, monitoring & evaluation Performance framework for all programmes Clear and measurable milestones and targets Performance reserve 5 % of national allocations (by Member State, fund and category of region) Ex-ante conditionality Ensuring conditions for effective investment are in place Macro-economic conditionality Alignment with new economic governance

More coherent use of available EU funds Comprehensive investment strategy: aligned with Europe 2020 objectives Coherence with National Reform Programmes Coordination: cohesion policy, rural development, maritime & fisheries funds Objectives and indicators to measure progress towards Europe 2020 targets Effectiveness: introduction of a performance framework Efficiency: reinforcement of administrative capacity, cutting red tape Common Strategic Framework Partnership Contract Operational Programmes

A menu of thematic objectives Research & innovation Information and communication technologies (ICT) Competitiveness of Small and Medium-sized Enterprises (SMEs) Shift towards a low-carbon economy Climate change adaptation & risk prevention and management Environmental protection & resource efficiency Sustainable transport & removing bottlenecks in key network infrastructures Employment & supporting labour mobility Social inclusion & combating poverty Education, skills & lifelong learning Institutional capacity building & efficient public administrations

Concentrating resources to maximise impact Concentration of ERDF investments Energy efficiency & renewable energy Research & innovation Competitiveness of SMEs More developed & transitional regions Less developed regions Flexibility – different regions have different needs Special arrangements for ex-convergence regions

European Social Fund (ESF) 2007-2013 2014-2020 Share of ESF within Cohesion Policy budget Of total Structural Fund support (ERDF & ESF), ESF will represent: 25 % in less developed regions 40 % in transition regions 52 % in more developed regions

European Social Fund (ESF) Fully in line with the Europe 2020 strategy Promoting employment & supporting labour mobility Investing in education, skills & life-long learning Promoting social inclusion & combating poverty Enhancing institutional capacity & efficient public administration Reinforced social dimension 20 % of ESF allocations for social inclusion Greater emphasis on fighting youth unemployment Mainstreaming & specific support for gender equality & non-discrimination

Cohesion Fund Supports Member States with GNI/capita < 90 % of EU27 average Investing in environment Climate change adaptation and risk prevention Water and waste sectors Biodiversity including through green infrastructures Urban environment Low carbon economy Investing in transport Trans-European Transport Networks (TEN-T) Low-carbon transport systems and urban transport

Simplification Common rules - funds covered by Common Strategic Framework Cohesion Policy, rural development and maritime & fisheries policy Option of multi-fund programmes ERDF, ESF and Cohesion Fund Streamlined delivery system Harmonised rules on eligibility and durability Greater use of simplified costs Linking payments with results e-Cohesion: “one stop shop” for beneficiaries Proportional approach to control

Reinforcing Territorial Cohesion Focus on sustainable urban development At least 5 % of ERDF resources Creation of urban development platform Networking between cities and exchanges on urban policy Innovative actions for sustainable urban development Subject to a ceiling of 0.2 % of the annual funding Areas with specific natural or demographic features Additional allocation for outermost & sparsely populated regions

An investment-oriented policy Promoting the use of innovative financing instruments Extending scope to all areas of investment Clearer regulatory framework 10 % bonus for innovative financing instruments & community-led development A range of options offering flexibility to programme managers Maximum co-financing rates 75-85 % in less developed and outermost regions 60 % in transition regions 50 % in more developed regions

Management and control Financial management New system of annual accounts Annual management declaration Annual clearance of accounts by the Commission Management and control systems National accreditation (greater responsibility for Member States) Managing Authorities may act as Certifying Authorities Commission can review accreditation (taking into account risks & track record) Greater proportionality Exemptions for low volume programmes Exemptions for systems that have delivered consistently good results Limitations on frequency of Commission audits on individual operations

Territorial Cooperation Separate regulation Increase of financial resources (+30 %) Concentration of programmes on up to 4 thematic objectives Simplified programme management (merger of managing and certifying authorities) Easier creation of European Groupings of Territorial Cooperation (EGTC)

4. How will the funds be allocated?

A fair system for all EU regions (eligibility simulation) GDP/capita* < 75 % of EU average 75-90 % > 90 % *index EU27=100 3 categories of regions        Canarias Guyane Réunion Guadeloupe/ Martinique Madeira Açores Malta Less developed regions Transition regions More developed regions Regional GDP figures: 2006-07-08 © EuroGeographics Association for the administrative boundaries │ 24

How will funding be allocated? Less developed regions/MS Transition regions More developed regions Cohesion Fund¹ 68.7 Less developed regions 162.6 Transition regions 38.9 More developed regions 53.1 European Territorial Cooperation 11.7 Outermost regions and sparsely populated areas 0.9 Total 336.0 Budget allocation (in %) Population covered (in millions) ¹ €10 billion from the Cohesion Fund will be allocated to the Connecting Europe Facility

5. When will these changes come into effect?

Timeline 5th Report on Economic, Social and Territorial Cohesion & public consultation Agreement on MFF and adoption of new legislative package Proposals for Cohesion Policy 2014-2020 March 2010 Nov. 2010 June 2011 Oct. 2011 March 2012 2012 – 2013 2014 Adoption of Europe 2020 Strategy Proposal by the Commission for a Multiannual Financial Framework (MFF) Common Strategic Framework Entry into force and adoption of programmes

Where can I find further information? www.inforegio.europa.eu Follow@EU_Regional on Twitter