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

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

3. 1. What is the impact of EU Cohesion Policy?

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

5. 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

6. Yet gaps between regions remain
GDP/capita*
< 50
75-90
*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:
© EuroGeographics Association for the administrative boundaries
│ 6

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

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

9. 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)

10. 3. What are the main changes?

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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)

23. 4. How will the funds be allocated?

24. 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:
© EuroGeographics Association for the administrative boundaries
│ 24

25. 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

26. 5. When will these changes come into effect?

27. Timeline 5th Report on Economic, Social and Territorial
Cohesion & public
consultation
Agreement on MFF and adoption of new legislative
package
Proposals for Cohesion
Policy
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

28. Where can I find further information?
on Twitter