1 Introduction to the Structural Funds DG REGIO – Unit B.1 - Coordination

2 Part 1:The context Regional disparities in development in EU27 GDP per head in % and in purchasing power parities EU27 average in 2003 <

3 Part 1: The context Regional disparities –10% of EU27 population living in the most prosperous regions (19% of total EU-27 GDP) –1.5% of GDP for the 10% of population living in the least wealthy regions –Convergence regions: 12.5% total share in EU27 GDP with 35% population share –several regions in Romania and Bulgaria with GDP per head below 25% of the EU average GDP

4 Part 2: The legal basis The Treaty –Article 2 EC TREATY "promote economic and social progress as well as a high level of employment, and to achieve balanced and sustainable development" –(Art. 158 of the Treaty ): "in particular, the Community aims to reduce the disparities between the levels of development of the different regions and the backwardness of the least favoured regions or islands, including rural areas"

5 Part 2: The legal basis Structural Funds legislation –General Regulation n°1083/2006 – Regulations for each Fund : ERDF Regulation n°1080/2006 ESF Regulation n° 1081/2006 Cohesion Fund Regulation n° 1084/2006 –Commission Implementing regulation n° 1828/2006 –(IPA Regulation n° 1085/2006, EGTC Regulation n° 1082/2006)

6 Part 3: The method Objectives, Structural Funds and instruments ERDFESF Cohesion Fund Convergence Regional Competitiveness and Employment European territorial Cooperation ERDF ESF ObjectivesStructural Funds and instruments infrastructure, innovation, investments etc. vocational training, employment aids etc. MemberStates with a GNI/head below 90% environmental and transport infra- structure, renewable energy all Member States and regions

7 Part 3: The method Financial instruments: –the 4 Structural Funds (ERDF, ESF, EAGGF, FIFG) –Cohesion Fund, ISPA –the EIB The priorities : –Objectives 1, 2 et 3 –Community initiatives –Innovative Actions Financial instruments: –the 2 Structural Funds (ERDF, ESF) –Cohesion Fund, IPA –the EIB The priorities : –3 Objectives: 1) Convergence, 2) Regional Competitiveness and Employment (RCE), 3) Territorial Co-operation

8 Structural funds allocation by type of region Convergence: bn. Phasing out: 13.9 bn. Phasing in: 11.4 bn. Competitiveness: 4.5 bn. Cooperation: 7.8 bn. Cohesion Fund: 69.6 bn. Total: billion in current prices

9 European Territorial Cooperation Allocation: 7.75 bn. for cross-border, transnational and interregional cooperation Cross-border areas

10 Part 3: The method The principles –Multi-annual programming –Concentration of financial resources –Partnership - shared responsabilities: Commission - Member State – regions – other partners –Additionnality – EU resources are additional to the national effort – no replacement

11 Part 3: The method The main tools and principles Programme cycle 3. Day-to- day management 5. Monitoring/ Reporting 4. Project execution [6. Evaluation] 1. National / Regional Plan 2. Specific EU Programme National Role Mixed Roles

12 Part 4: The results Results of EU cohesion policy –Strengthening of economic integration –Process effects – governance –EU's link with the citizen - publicity

13 Part 4: The results Strengthening of economic integration (1) (results from the period) Spending in transport infrastructure - 47% of SF and CF resources) Example: ES and PT: road density higher than EU average Increased focus on sustainability (fast speed trains, tramway systems, metro in Athens) Spending on environment - 63% of SF and CF resources, mainly cohesion MS and Objective 1 regions to help comply with EU legislation Growing focus on renewable energy (PT specific programme)

14 Part 4: The results Strengthening of economic integration (2) (results from the period) SF investment in R&D - from 5% in ES to 18% in LT Example: in Catalonia 21% of regions researches and 37% of private sector investment involved in the OP Public-private partnerships in R&D strong in 7 MS (AT, DK, FI, DE, NL, SE, UK)

15 Part 4: The results - governance Contribution to Better Governance Multi-annual programming – strategic approach, stability and sharing of risk, Improves capacity for expenditure in general Additionality and leverage effects Partnership – better targeting of interventions and stimulation of development projects -institutions matter in development Exchange of experience and good practice Management, monitoring and evaluation

16 Part 4: The results - visibility Visibility of Community action EU more visible to citizens Catalyst for new initiatives "PEACE" – an important contribution from the EU to peace and stability in Northern Ireland, UK Solidarity Fund – solidarity with regions affected by natural catastrophes (e.g., floods in Eastern Germany and Czech Republic, fires in Portugal).

17 Part 5: Expected impact Expected impact of cohesion policy* 5-15% higher GDP in 2020 than without cohesion policy in most new MS 2 million new jobs by 2015 in convergence regions Decrease of unemployment by 20-30% Positive effects multiplied by sound national policies (Ireland, Baltic states) Overall positive effects on the whole EU-27 in a long term * source: the fourth cohesion report (May 2007)

18 Further information m