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Connecting Europe Facility

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Presentation on theme: "Connecting Europe Facility"— Presentation transcript:

1 Connecting Europe Facility
A common infrastructure fund to deploy smart interconnected transport, energy and digital networks

2 Announcement in MFF Connecting Europe Facility to promote the completion of "transport core network" "energy priority corridors" and key digital infrastructure It will combine market based instruments and EU direct support in order to optimise the impact of financing

3 Envisaged budget the MFF proposal 2014-2020
Energy EUR 9,1 billion Transport EUR 21,7 billion euro (+ EUR 10 billion) ICT EUR 9,2 billion Total budget envelope for CEF: EUR 50 billion

4 Announcement in MFF – digital infrastructures
focused public intervention to stimulate private investment where the market case is weak, and development of common architectures for digital services support increasingly mobile citizens, reduce transactions costs for enterprises, in particular SMEs in search of growth opportunities beyond their home markets enable the emergence of the digital single market, stimulate growth of cross-border services

5 Why investing in digital infrastructure ?
Broadband networks 1. Current level of investment is not sufficient to ensure growth 2. No agreement on investment between incumbents and competitors, high cost of capital and high perceived risks Case for EU investment 3. No business case in rural and (in most) suburban areas Summary of problems identified Problem 1a: High-speed internet is a key infra-structure for the 21st century, but Europe falls far short of the necessary investments, leaving potential for growth and societal benefits untapped. Problem 1b: There is little competitive pressure on incumbents to invest in modern broadband networks. Even where projects could be financially viable, alternative public and private investors (including local administrations and public utilities) are held back by high capital costs (interest rates) and the lack of long-term funding. Problem 1c: There is currently no adequate strategy to publicly support the rollout of broadband networks in areas where there is no business case. Current levels of European support are sub-critical and are hampered a lack of planning and absorption capacity at the regional level. Problem 2a: The private sector will not replace public investment in the digital services central elements (platforms, generic services etc) essential to ensure trans-European connectivity, access and interoperability. Problem 2b: Despite efforts on technical interoperability, on-line public services may stop at the border. 4. Core layers of digital services will not be financed by MS or private operators 5. Interoperability, standards and cross-border problems for digital services Digital Services

6 Expected Impact of CEF 25.6% 23.3% 26.5% 25.7% Ireland HH(x1000): 650
%: % United Kingdom HH(x1000): 6,620 %: % Denmark HH(x1000): %: % Sweden HH(x1000): 1,210 %: % Finland HH(x1000): %: % Estonia HH(x1000): %: % Latvia HH(x1000): %: % The Netherlands HH(x1000): 2,180 %: % Lithuania HH(x1000): %: % Belgium HH(x1000): 1,260 %: % 25.6% Poland HH(x1000): 1,330 %: % Luxembourg HH(x1000): %: % Czech Republic HH(x1000): %: % Germany HH(x1000): 9,090 %: % 23.3% 26.5% Slovakia HH(x1000): %: % Austria HH(x1000): 1,030 %: % Romania HH(x1000): %: % Slovenia HH(x1000): %: % 25.7% Bulgaria HH(x1000): %: % France HH(x1000): 7,110 %: % Cyprus HH(x1000): %: % Portugal HH(x1000): %: % Spain HH(x1000): 3,950 %: % Italy HH(x1000): 5,720 %: % Malta HH(x1000): %: % Hungary HH(x1000): %: % Greece HH(x1000): %: %

7 ICT Services of public interest
Trans-European high-speed backbone connections for public administrations Cross-border delivery of eGovernment services Enabling access to public sector information and multilingual services Safety and security Deployment of information and communication technology solutions for intelligent energy networks and for the provision of Smart Energy Services

8 Horizontal Priorities
Mapping of pan-European broadband infrastructure Detailed documentation of physical sites Analysis of rights of way Technical assistance measures Project and investment planning Replication of successful business models Feasibility studies

9 Elements of the package plus responsibilities
Aleksander Lazarevic Broadband Anna Krzyzanowska Financial instruments c1 Mercè Griera-i-Fisa Smart Energy Services Name tbc Horizontal services Kimmo Rossi Multilingual access to online services Jean Luc Dorel Trans-European high-speed Jean Francois Junger eGovernment (eID, eProcurement, eJustice, business mobility) Patricia Manson Safer internet service infrastructure Andrea Servida Critical Information Infrastructures Yvo Volman Access to digital resources of European heritage

10 Mutual reinforcement approach
Financing deployment of 30 Mb broadband networks trough CEF 1. Broadband networks roll-out - Creating critical mass and potential markets for applications 2. Enhanced supply of broadband - Enhanced supply of digital services will create foster new applications that will in turn need more bandwidth 4. Enhance demand for broadband - Digital services deployed by the CEF act as European public goods (core layer)s 3. Development of digital services Both components of the proposed CEF interventions for telecommunications infrastructures (broadband networks roll-out and deployment of digital service infrastructures) are interconnected and mutually reinforcing. While sufficient broadband capacity is the key enabling technology not only for web growth, but also for research, innovation and digital services, its business case – and hence the incentive for the private sector to invest - is heavily dependent on its use. Conversely, both the design and take up of new broadband enabled services and solutions relies on the availability, speed, reliability and resilience of the physical networks.

11 Legal approach for the CEF package
Chapeau communication CEF Regulation (rules for EU intervention) Guidelines (criteria for projects of common interets): Transport Energy Telecommunication Pilot for project bonds (Communication and Regulation amending TEN Regulation and CIP decision)

12 CEF Regulation This Regulation gives a unified view on CEF
Full flexibility at mid term (with pre-allocated budget) One Program Committee Possibility of common Work Programs and joint calls Higher co-financing for projects realising intra-sector synergies EU focus, limited external dimension Contribution to Europe objectives

13 Timing ISC completed (outstanding issue: lists of projects)
Adoption planned for 19 October 2011 MFF discussion in the General Affairs Council Presidency will issue an initial report on MFF

14 Awareness Raising to date
The concept signalled to telecom sector during the CEO process (reinforcement needed) Presented CEF jointly with MOVE and ENER in Paris, Berlin and Copenhagen Briefed Presidency Included CEF in « Going Local » materials

15 Awareness Raising to continue
Proactively plan for meetings to promote CEF message while « Going local » Propose to Representations (or other multipliers) to organise a dedicated presentation of CEF to Ministeries and Stakeholders Use your personal contacts – help us identify powerful multipliers in your country / sector Propose a champion

16 Thank you Questions?

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