1. www.governance.sk www.transparency.lt EUROPEAN COHESION POLICY AT A GLANCE Introduction to the EU Structural Funds Ctibor Kostal Sergej Muravjov

2. EU Cohesion policy: background 1957 – Treaty of Rome 1958 – Setting up of the European Social Fund (ESF) 1992 – Treaty of European Union establishes cohesion as one of its objectives 1962 – Creation of the Agricultural Guidance and Guarantee Fund (EAGGF) 1975 – Creation of the European Regional Development Fund (ERDF) 1986 – The Single European Act lays the ground for EU cohesion policy 1988 – Overhaul of the operation of then Solidarity Funds (SF now) 1993 – The Council creates a new financial instrument for Fisheries

3. EU Cohesion policy at a glance The Cohesion Policy programme for 2007-2013: €347 billion or 35.7 % EU budget Three financial instruments: European Regional Development Fund European Social Fund Cohesion Fund

4. EU Cohesion policy at a glance The Cohesion Policy has three objectives: Convergence objective for regions with a GDP below 75% of the Community average (81,5% of the Cohesion policy funds); Regional competitiveness and employment objective for all other regions (16% of the Cohesion policy funds); European territorial cooperation objective for cross-border, transnational and interregional co-operation (2,5% of the Cohesion policy funds).

5. Convergence objective The goal: to promote growth-enhancing conditions and factors leading to real convergence for the least-developed Member States and regions. 17 new member states and their 84 regions, 154 million people - with per capita GDP at less than 75 % community average “Phasing-out” regions – 16 regions, 16.4 million people – with per capita GDP only slightly above the threshold Convergence regions: €199.3 billion “Phasing-out” regions: €14 billion The Cohesion Fund (15 old EU states): €69.5 billion The Splits – €282.8 billion

6. Regional Competitiveness and Employment objective The goal: to strengthen the competitiveness and attractiveness, as well as employment, through anticipation and promotion of economic change and adapting the workforce and investing in human resources. 168 regions – 43.6 billion Euros, 314 million people 13 “phasing-out” regions – 11.4 billion Euros, 13 regions, 19 million people The Splits – 55 billion Euros 19 member states

7. 166 % the financial assistance to new EU member states is 166 % higher than in the previous programming period; 30 % the old EU15 states will receive 30 % less aid.

8. Member States with a Gross National Income less than 90% of the Community average receive a total of €69.5 billion for investment programmes in the fields of environment and trans- European transport networks The Cohesion Fund

9. European Territorial Co-operation objective The goal: to strengthen cross-border co-operation through joint local and regional initiatives, trans-national co-operation aimed at integrated territorial development and interregional co-operation and exchange of experience. The Splits – 8.7 billion Euros Cross-border co-operation – 6.44 billion Euros Transnational co-operation – 1.83 billion Euros Inter-regional co-operation – 445 million Euros 181.7 million people / 13 transnational co-operation areas

13. Objectives, structural funds & instruments

14. EU Cohesion policy: funds available Source: European Commission

15. EU Cohesion policy: allocation by programs

16. EU Cohesion policy: allocation by states

17. Important Stages Setting up rules – regulations –Regulations introduced by the EC –Council WG – Member States Programming –Important stage for the partners (NGOs, local authorities etc.) –Sets up national rules, priorities, management authorities etc. –NSRF and OPs Implementation –Calls –Different types of projects Evaluations Monitoring

18. Key actors in SF EC –DG Regio Member States –Managing authority –Intermediate bodies –Certifying authority –Audit authority –Social partners, local and regional governments –Other partners – NGOs –Final beneficiaries

19. Role of NGOs NGOs should participate in the following stages: Programming –Active role in designing national priorities and management system Implementation –As final beneficiaries –As members of selection committees Evaluation –Taking part in required evaluations –Independent evaluations Monitoring –As member of Monitoring Committee –Independent monitoring - watchdog

20. Legislative background Period 2007 to 2013 –Three main regulations: Regulation (EC) No 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund Regulation (EC) No 1080/2006 of the European Parliament and of the Council of 5 July 2006 on the European Regional Development Fund Regulation (EC) No 1081/2006 of the European Parliament and of the Council of 5 July 2006 on the European Social Fund –Proposed by the EC –Council working group – Structural Actions

21. Regulation – general provisions on ERDF, ESF and CF Reg. has 73 recitals (!) Sets basic principles and rules for SF in 2007-13 such as: –partnership –objectives for contributions –eligibility criteria –management –monitoring –evaluation –programming –financial resources available –criteria for financial allocations

22. Regulation – general provisions on ERDF, ESF and CF Partnership principle – Art.11 Each Member State shall organize, where appropriate and in accordance with current national rules and practices, a partnership with authorities and bodies such as: (a) the competent regional, local, urban and other public authorities; (b) the economic and social partners; (c) any other appropriate body representing civil society, environmental partners, non-governmental organizations, and bodies responsible for promoting equality between men and women. Each Member State shall designate the most representative partners at national, regional and local level and in the economic, social, environmental or other spheres (hereinafter referred to as partners), in accordance with national rules and practices... The partnership shall cover the preparation, implementation, monitoring and evaluation of operational programmes.

23. Regulation – general provisions on ERDF, ESF and CF Objectives –Reducing economic, social and other disparities –Objectives 1, 2, 3 Eligibility –For each objective – geographical eligibility –Obj.1 = GDP per capita is less than 75% of the EU average –Obj.2 = other

24. Regulation – general provisions on ERDF, ESF and CF Principles of assistance = 4C Complementarity - SF provide assistance which complements national actions Consistency - assistance from the SF is consistent with the activities, policies and priorities of the EU Coordination – EC and MS ensure the coordination between the assistance from the Funds, the EAFRD, the EFF and the interventions of the EIB and of other existing financial instruments Compliance – operations financed by SF comply with the provisions of the Treaty and of acts adopted under it

25. Regulation – general provisions on ERDF, ESF and CF Management of SF Set up by MS – designation of authorities –Managing authority Management and implementation of Ops Any public or private body designed by the MS Intermediate bodies –Certifying authority Draws up and submits certified statements of expenditures and applications for payments –Audit authority Carries out audits verifying the effective functioning of the management and control system of OPs

26. Regulation – general provisions on ERDF, ESF and CF Monitoring Monitoring Committee –Considers and approves criteria for selection of support –Reviews progress –Examines the results of implementation –Approves annual and final reports

27. Regulation – general provisions on ERDF, ESF and CF Evaluation Aiming to improve the quality, effectiveness and consistency of SF EC can carry out strategic evaluations Ex-ante evaluation –To improve programing and financial allocations Mid-term evaluation Ex-post evaluation –Effectiveness and efficiency; socio-economic impact Carried out under the responsibility of the Member State or the Commission by experts or bodies, internal or external, functionally independent of the authorities Results are accessible to the public

28. Regulation – general provisions on ERDF, ESF and CF Programming NSRF = main framework for MS OPs = priorities and activities Both prepared by MS with inclusion of partners (NGOs) –Working groups on governmental level –Importance of one voice

29. Regulation – general provisions on ERDF, ESF and CF Financial management Sets rules for payments between MS and EC Certifying authority –Responsible for statements of expenditure and applications for payments

30. Regulation on the ERDF Defines: Tasks of the ERDF –Redressing regional imbalances The scope of assistance –Productive investments – sustainable jobs –Investments in infrastructure –Services Examples of investments: research, innovations, IT, environment, tourism, culture, transport, energy, education, social infrastructure Rules on eligibility System of management and control

31. Regulation on the ESF Defines: Tasks of the ESF –Improving employment and job opportunities The scope of assistance –Increasing adaptability of workers, enterprises –Enhancing access to employment –Modernizations of labor market institutions –Social inclusion –Enhancing human capital Rules on eligibility