1. What next for European funding post 2013? John Bachtler ‘Regeneration in Hard Times’ seminar – Wednesday, 10 November 2010 Committee Room 2, Scottish Parliament

2. John Bachtler, European Policies Research Centre, University of Strathclyde 2 What next for European funding post 2013? Policy context –EU budget review –Europe 2020 Future of Cohesion policy – 5 th Cohesion Report Timetable of debate Key issues

3. Policy context – EU budget review EU budget review – consultation results  Environment – especially responses to climate change - increase direct spending; align other policies with environmental needs; need for strong spillovers  Energy – increase direct spending; concentrate research efforts on energy; promote low- energy lifestyle  Competitiveness, research, knowledge –increase expenditure; focus actions within other policies on improving competitiveness  External policies – more spending on defence and foreign policies  Agriculture – amounts and efficiency of spending do not address the new reality - maintain CAP as EU policy reinforcing Pillar 2; introduce co-financing; re-orient CAP towards new goals  Cohesion policy – does not have universal high added value - limit Structural Funds to Convergence and Territorial Cooperation objectives

4. John Bachtler, European Policies Research Centre, University of Strathclyde 4 Policy context - EU budget review Budget review paper (October 2010) –sets out “some of the issues facing the EU budget for the next framework and beyond” Principles –delivering key EU policy priorities –EU added value –a results-driven budget –mutual benefits through solidarity –a reformed financing of the EU budget

5. John Bachtler, European Policies Research Centre, University of Strathclyde 5 Policy context – Europe 2020 strategy SMART GROWTH SUSTAINABLE GROWTH INCLUSIVE GROWTH Innovation “Innovation Union” Climate, energy and mobility “Resource efficient Europe” Employment and skills “An agenda for new skills and jobs” Education “Youth on the move” Competitiveness “An industrial policy for the globalised era” Fighting poverty “European platform against poverty” Digital society “A digital agenda for Europe” 5 headline targets by 2020 75% employment rate 3% of GDP investment in R&D “20/20/20” climate/energy targets met (incl. 30% emissions reduction if conditions are right) < 10% early school leavers & min. 40% hold tertiary degree 20 million less people at risk of poverty Cohesion policy is part of the ‘inclusive growth agenda

6. John Bachtler, European Policies Research Centre, University of Strathclyde 6 Policy context – Europe 2020 strategy Cohesion policy and Europe 2020 Cohesion policy “should become the standard bearer for the objectives of smart, inclusive and sustainable growth of the Europe 2020 strategy in all regions” Adjustments needed to strategic programming –greater concentration and coherence –a common strategic framework for all funds (ERDF, ESF, CF, EFF, EAFRD) –Development and Investment Partnership Contract (results focus) –improving the quality of expenditure –the “right skills for tomorrow’s workforce” –supporting sectors put under pressure

7. John Bachtler, European Policies Research Centre, University of Strathclyde 7 Fifth Cohesion Report: main messages Defining the main objective of Cohesion policy –“to promote the harmonious development of the Union and its regions”…by increasing competitiveness, expanding employment, improving well-being, protecting the environment –focus on less-development regions –new intermediate ‘transition’ category between O1 and O2 –continuation of territorial cooperation (cross-border, transnational, inter-regional)

8. John Bachtler, European Policies Research Centre, University of Strathclyde 8 Fifth Cohesion Report: main messages Introducing a new territorial dimension –Meaning? territorial dimension to access to services importance of environmental sustainability relevance of functional geographies role of territorial cooperation –Practical implications particular focus on urban problems reinforced role of local development approaches development of ‘macro-regional strategies’

9. John Bachtler, European Policies Research Centre, University of Strathclyde 9 Fifth Cohesion Report: main messages Enhancing the added value of Cohesion policy –Reinforced strategic programming and concentration Common Strategic Framework for all funds results-based Development Contract Operational Programmes – clear and measurable targets concentration of resources on menu of priorities annual reporting, as basis of political debate –Strengthening performance through conditionalities macro-economic, structural, institutional performance reserve to reward good progress experimentation and networking

10. John Bachtler, European Policies Research Centre, University of Strathclyde 10 Fifth Cohesion Report: main messages Enhancing the added value of Cohesion policy –Development of evaluation to focus on strategic and results issues – ex ante, ongoing, ex post –New financial instruments clarification and differentiation of rules extension of financial engineering instruments Simplification of delivery system –changes to financial management –common EU rules on eligibility for all funds –financial discipline through N+2

11. John Bachtler, European Policies Research Centre, University of Strathclyde 11 Timetable of debate October 2010 – Budget review paper November 2010 – 5 th Cohesion Report Jan/Feb 2011 – Fifth Cohesion Forum Spring 2011 – Proposals for Financial Perspective Summer 2011 – Proposals for Cohesion policy legislative package Summer 2011-2012 – Negotiations End 2012(?) – Council/Parliament agreement 2013 – Preparation (programming) for new period 2014 – Launch of new programmes

12. John Bachtler, European Policies Research Centre, University of Strathclyde 12 Key issues Size and allocation of the EU budget (Cohesion policy, CAP, other policies) Menu of priorities New framework Conditionalities and incentives Delivery

13. John Bachtler, European Policies Research Centre, University of Strathclyde 13 Thank you for your attention ! john.bachtler@strath.ac.uk