1. 1 Introduction to the Structural Funds 2007-13 DG REGIO – Unit B.1 - Coordination

2. 2 Part 1:The context Regional disparities in development in EU27 GDP per head in % and in purchasing power parities EU27 average in 2003 <50 50 - 75 75 - 90 90 - 100 100 - 125 125

3. 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. 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. 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. 6 Part 3: The method Objectives, Structural Funds and instruments 2007-2013 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. 7 Part 3: The method 2000-06 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 2007-2013 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. 8 Structural funds allocation by type of region 2007-13 Convergence: 199.3 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: 347.4 billion in current prices

9. 9 European Territorial Cooperation 2007-2013 Allocation: 7.75 bn. for cross-border, transnational and interregional cooperation Cross-border areas

10. 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. 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. 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. 13 Part 4: The results Strengthening of economic integration (1) (results from the 2000-06 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. 14 Part 4: The results Strengthening of economic integration (2) (results from the 2000-06 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. 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. 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. 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. 18 Further information http://ec.europa.eu/regional_policy/index_en.ht m