1. COMMUNICATION FROM THE COMMISSION
EUROPE 2020 STRATEGY A strategy for smart, sustainable and inclusive growth
Brussels,
COM(2010) 2020 final
COMMUNICATION FROM THE COMMISSION

2. Priorities
Europe 2020 puts forward three mutually reinforcing priorities: – Smart growth: developing an economy based on knowledge and innovation. – Sustainable growth: promoting a more resource efficient, greener and more competitive economy. – Inclusive growth: fostering a high-employment economy delivering social and territorial cohesion.

3. Headline Targets
The Commission proposes the following EU headline targets:
75 % of the population aged should be employed.
3% of the EU's GDP should be invested in R&D.
The "20/20/20" climate/energy targets should be met.
The share of early school leavers should be under 10% and at least 40% of the younger generation should have a tertiary degree.
20 million less people should be at risk of poverty

4. Seven Flagship Initiatives
Smart growth
"Innovation Union" to improve framework conditions and access to finance for research and innovation so as to ensure that innovative ideas can be turned into products and services that create growth and jobs.
"Youth on the move" to enhance the performance of education systems and to facilitate the entry of young people to the labor market.
"A digital agenda for Europe" to speed up the roll-out of high-speed internet and reap the benefits of a digital single market for households and firms.
Sustainable growth
"Resource efficient Europe" to help decouple economic growth from the use of resources, support the shift towards a low carbon economy, increase the use of renewable energy sources, modernize our transport sector and promote energy efficiency.
"An industrial policy for the globalization era" to improve the business environment, notably for SMEs, and to support the development of a strong and sustainable industrial base able to compete globally.
Inclusive growth
"An agenda for new skills and jobs" to modernize labor markets and empower people by developing their of skills throughout the lifecycle with a view to increase labor participation and better match labor supply and demand, including through labor mobility.
"European platform against poverty" to ensure social and territorial cohesion such that the benefits of growth and jobs are widely shared and people experiencing poverty and social exclusion are enabled to live in dignity and take an active part in society.

5. Cohesion Policy 2014-20 Investing in Growth and Jobs
Adopted by the European Commission on 6 October 2011
Objective: Deliver the Europe 2020 Strategy
The Commission proposed a number of important changes to the way cohesion policy is designed and implemented, namely:
concentrating on the Europe 2020 Strategy’s priorities of smart, sustainable and inclusive growth
rewarding performance
supporting integrated programming
focusing on results – monitoring progress towards agreed objectives
reinforcing territorial cohesion and
simplifying delivery.

6. Connecting Europe Facility
Proposed EU budget
“Ambitious but realistic” proposals issued by the Commission in June 2011 for the Multiannual Financial Framework (MFF)
Cohesion Policy
33 % (€336 billion)
Other policies
(agriculture, research, external etc.)
63 % (€649 billion)
Connecting Europe Facility
4 % (€40 billion)
1,1 billion euros

7. Financial allocations of the new programming period
Million Euro %
Euro/head
% Change
Convergence
202,320
57.5
187.9
162,590
48.4
194.7
-19.6
Cohesion Fund
70,331
20.0
60.6
68,710
20.4
78.9
-2.3
Transition
26,170
7.4
105.6
38,952
11.6
75.5
48.8
Developed
44,263
12.6
21.4
53.143
15.8
25.0
20.1
Cooperation
8,626
2.5
11,700
3.5
3.4
35.6
OMR and LPD
926
TOTAL
351,710
100
336,021
-4.5

8. Reinforcing strategic programming: thematic concentration on Europe 2020
Strategic programming process, which involves the introduction of the Common Strategic Framework, Partnership Contracts, and a menu of thematic objectives in line with the Europe 2020 strategy and its integrated guidelines.
The Common Strategic Framework, to be adopted by the Commission, will set out key actions to address EU priorities; will provide guidance on programming applicable to all Funds, including EAFRD and EMFF; and will promote a better coordination of the various EU structural instruments.
Partnership Contracts, agreed at the outset between the Commission and Member States will set out the overall contribution, at national level, to the thematic objectives and the commitments to concrete actions to deliver Europe 2020 objectives. Clear and measurable targets will be defined in a performance framework.

9. Increase performance and conditionalities
Ex ante conditionality for the funds ensure that the conditions necessary for their effective support are in place. Remove weaknesses in national policy and regulatory and institutional frameworks.
Ex post conditionality will strengthen the focus on performance and the attainment of Europe 2020 goals. It will be based on the achievement of milestones related to targets linked to Europe 2020, set for programs covered by the Partnership Contract. A total of 5 % of the national allocation of each fund will be set aside and allocated, during a mid-term review, to the Member States for the programs that have fully met their milestones.
Macroeconomic conditionalities: Establishing a closer link between cohesion policy and the economic governance of the Union will ensure that the effectiveness of expenditure under the Common Strategic Framework (CSF) Funds is underpinned by sound economic policies. Where a Member State fails to take effective action in the context of the economic governance process, the Commission should have the right to suspend all or part of the payments and commitments.

10. Integrated approach and strategic programming geared towards results
The Commission proposes a more integrated approach to EU investment, including common eligibility and financial rules, and the introduction of multi-fund programs for the ERDF, ESF and Cohesion Fund, as an option.
The proposals also set out an integrated approach to community-led local development, which facilitates the implementation of local development strategies by community groups including local authorities, NGOs, and economic and social partners, based on the LEADER approach used for rural development.
The Commission proposes a more results-oriented programming process to improve the effectiveness of cohesion policy programs. The Commission proposes a specific type of operation, called a Joint Action Plan. The Joint Action Plan will be defined and managed in relation to the outputs and results, which will contribute to the objectives of a program.

11. 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

12. European Social Fund (ESF)
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 Union Cohesion Policy

13. ESF
The European Social Fund (ESF) is the European Union’s main financial instrument for investing in people. It increases the employment opportunities of European citizens, promotes better education, and improves the situation of the most vulnerable people at risk of poverty. The regulation proposes to target the ESF on four thematic objectives throughout the Union:
promoting employment and supporting labor mobility;
promoting social inclusion and combating poverty;
investing in education, skills and lifelong learning; and
enhancing institutional capacity and an efficient public administration

14. ESF II
Strengthening thematic concentration: In line with the EU’s commitment to inclusive growth, at least 20 % of the ESF should be allocated to promoting social inclusion and combating poverty. In addition, programs should concentrate funding on a limited number of ‘investment priorities’ that set out the details of each thematic objective.

15. Cohesion Fund
The Cohesion Fund helps Member States with a GNI per inhabitant of less than 90 % of the EU-27 average to invest in TEN-T transport networks and the environment.
Supporting thematic concentration: In the field of environment, the Cohesion Fund will support investment in climate change adaptation and risk prevention as well as investment in the water and waste sectors, and the urban environment.
Investment in energy would also be eligible for support, provided it has positive environmental benefits. Investment in energy efficiency and renewable energy are therefore also supported.
In the field of transport, in addition to the TEN-T network, the Cohesion Fund will contribute to investments in low-carbon transport systems and urban transport.

16. ERDF
The European Regional Development Fund (ERDF) aims to strengthen economic, social and territorial cohesion in the European Union by correcting imbalances between regions. The ERDF supports regional and local development to contribute to all thematic objectives, by setting out detailed priorities to increase focus on:
research and development, and innovation;
improving access to and quality of information and communication technologies;
climate change and moves towards a low-carbon economy;
business support to SMEs;
services of general economic interest;
telecommunication, energy, and transport infrastructures;
enhancing institutional capacity and effective public administration;
health, education, and social infrastructures; and
sustainable urban development.

17. ERDF II
Strengthening Thematic Concentration: Minimum allocations are set for a number of priority areas. For example, in more developed and transition regions, at least 80 % of ERDF resources at national level should be allocated to energy efficiency and renewables, innovation and SME support, of which at least 20 % should be allocated to energy efficiency and renewables. Less developed regions will have a broader range of investment priorities to choose from, reflecting their wider development needs. But they will have to devote at least 50 % of ERDF resources to energy efficiency and renewables, innovation and SME support.
Reinforcing Territorial Cohesion: The proposed regulation provides for an increased focus on sustainable urban development. This should be achieved through the earmarking of a minimum of 5 % of ERDF resources for sustainable urban development, the establishment of an urban development platform to promote capacity building and exchanges of experience, and the adoption of a list of cities where integrated actions for sustainable urban development will be implemented.

18. 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 Union Cohesion Policy

19. European Union Cohesion Policy
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
European Union Cohesion Policy

20. 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
European Union Cohesion Policy

21. 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
European Union Cohesion Policy

22. Territorial cooperation
European Territorial Cooperation is a goal of cohesion policy and provides a framework for the exchanges of experience between national, regional and local actors from different Member States, as well as joint action to find common solutions to shared problems.
A separate regulation is proposed for European Territorial Cooperation to take better account of the multi country context of the programs.
Simplified programme management (merger of managing and certifying authorities)
Budget increase by 30%
Financial allocation:
73.24 % for cross-border cooperation;
20.78 % for transnational cooperation; and
5.98 % for interregional cooperation.
This includes the continuation of the mechanism for the transfer of resources for cooperation activities (ENPI) and the instrument for Pre-Accession Assistance.

23. 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
Less developed regions
Transition regions
More developed regions
Regional GDP figures:
© EuroGeographics Association for the administrative boundaries
European Union Cohesion Policy

24. Criticism
Reduction of funds compared to previous programming period – changes in allocation
What funds for Greece? The crisis regions? Allocation based on pre-crisis Eurostat figures
11 thematic objectives, in most of which Greece faces difficulties in implementation
Unclear if the choice of objectives will allow for a strategy of exit from crisis
Macroeconomic conditionalities cannot be justified and may block the programs of the weaker countries
Common Strategic Framework  Partnership Contract  OPs (sounds like one-size-fits-all)
ERDF regulation: strict and high thematic concentration in areas where Greece faces usually difficulties
ESF regulation: too high shares in Transition (40%) and developed (52%) regions

25. Criticism II
CF regulation: only two areas of support (environment and TENs)
Cohesion Policy is subordinated to E2020 Strategy, not the expression of solidarity, not the main policy to reduce regional inequalities
The goal of convergence is abandoned in a period that regional inequalities have increased dramatically
Place–based approach not too obvious
Territorial cohesion approach not so obvious
The E2020 strategy may lead to an uneven allocation of costs and benefits among MS and regions – a northern perspective to growth