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Cohesion Policy and its financial instruments europa.eut/comm/regional_policy

Cohesion Policy and its financial instruments http://europa.eu.int/comm/regional_policy. EU Structural policy 2000-06 following enlargement. 40% to 49,9% of EU population (155 →224 Mio.) in eligible areas (Obj. 1&2) 213 to 233 bn. Euro

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Cohesion Policy and its financial instruments europa.eut/comm/regional_policy

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  1. Cohesion Policy and its financial instruments http://europa.eu.int/comm/regional_policy

  2. EU Structural policy 2000-06 following enlargement 40% to 49,9% of EU population (155→224 Mio.) in eligible areas (Obj. 1&2) 213 to 233 bn. Euro for Structural funds by 2006 (one third of the EU budget) 400 to 480 Structural Funds’ programmes 211 to 264 NUTS 2-Regions

  3. 1957 1988 1960: The European Social Fund (ESF) enters into force 1974: Start of European Regional Development Fund (ERDF) Integration of the Structural funds 5 common objectives Standardised administration rules Decentralised management Raising of the Structural funds' budget to 14 bn ECU p.a. (ca. 20% of EU-Budget) 1989 1993 Introduction of a new Objective 4 Simplification of procedures New cohesion and fisheries instruments Raising of the Structural funds' budget to 32 bn ECU p.a. (ca. 30% of EU budget) 1994 1999 2000 2006 Concentration of regions covered and financial resources Phasing-out for some Objective 1,2 and 5b regions 3 common objectives Introduction of pre-accession instruments for candidates countries (ISPA) History

  4. < 50 50 - 75 75 - 90 90 - 100 100 - 125 >= 125 No data Index EU 25= 100 Source: Eurostat Regional GDP per head in 2001 for EU27 in purchasing power parities

  5. EU Cohesion policy and funds Funds ERDF ESF EAGGF FIFG Cohesion Fund Regional development • linked Community policies: • State Aid • Sustainable development • Equal opportunities • RTD • SME promotion • Information society Employment and social integration EU cohesion policy Rural development Region analysis, multi-annual programming, management, co-financing, evaluation Other EU policies and concepts: Lisbon/Gothenburg strategy, enlargement, budget, institutional Reform, Global influences: general economic development, foreign investment, national policies

  6. Legal framework Council by unanimity, assent of EP, comments by ECS/CoR ERDF, ESF: Codecision EAGGF, FIFG, Cohesion Fund, General Regulation (EC) 1260/1999 on Structural Funds • ERDF Regulation • ESF Regulation • EAGGF Regulation • FIFG Regulation • Cohesion Fund Regulation • Commission‘s Regulations: • EAGGF/SAPARD Regulations • Regulation on Information/Publicity • Eligible expenditure • Financial control • Financial corrections TEC Art. 161 Art. 162 Art. 148 Art. 37 • Commission‘s Decisions: • Decisons (Objective 1 and 2 regions) • Communications (Community initiatives) • Decisions on single programmes

  7. Programming cycle 1 regulatory framework financial means, eligible regions/areas 2 regional analysis (SWOT), strategy, plan/programme draft/complement 3 negotiations: Member State/region-Commission programme decision 4 5 programme management project selection evaluation/ modification

  8. ERDF ESF EAGGF-G FIFG Cohesion Fund European Regional Development Fund European Social Fund European Agriculture Guidance and Guarantee Fund- Guidance Section Financial Instrument of Fisheries Guidance for Member States with a GDP below 90% • Infrastructure • Investments • RTD • SME • ... • Vocational • Training • Employment • Subsidies • ... • Development • of rural areas • Investment • in tourism • ... • Development • of Fishing • Areas • Modernising • Fisheries' • Industries • ... • environmental • and trans- • port (TEN) • infrastructure • (project selection) The Structural Funds and Instruments 2000-2006 (1)

  9. The Structural Funds and Instruments 2000-2006 (2) Community Initiatives INTERREG III URBAN II EQUAL Leader+ cross-border, transnational and inter- regional co-operation development of deprived urban areas transnational networking and exchange strategies for sustainable rural develop- ment • ERDF • Infrastructure • sustainable development • planning • studies • culture • RTD • SME • ... • ERDF • Infrastructure • public transport • employment • social inclusion • culture • information • SME • ... ESF innovative employment actions in EU networks EAGGF-G local action groups

  10. AT BE CY CZ DK EE FI FR DE GR HU IR IT LV LT LU MT NL PL PT SK SL SP SW UK EU Structural Funds 2000-06 Amounts available in billions of Euro; for new Member States: 2004-2006 Objective 1 Objective 2 Objective 3 Community Initiatives Cohesion Fund Objective 1 Objective 2 Objective 3 Community Initiatives Cohesion Fund 60 50 40 30 20 10

  11. Narva, Estonia: ISPA finances better environment Several environmental projects in Estonia focus on waste water treatment. These projects include the improvement of the facilities in Narva City and Viljandi.

  12. Bremen, Germany: new enterprises in old buildings The “Lichthaus” is a former workers’ council building, belonging to a bankrupt shipbuilding area. Funded by the URBAN initiative, it now hosts 10 new media companies and has created 50 new jobs.

  13. Valencia, Spain: new motorway Cofinanced by the European Regional Develpment Fund, Objective 1.

  14. Porto, Portugal: funding of biotechnology facilities The University of Porto in the Norte region has received funding for new laboratories.

  15. Northumberland, UK: energy from windmills Within the Northern Energy Initiative in Northumberland, Northeast England, the ERDF has financed this windmill park.

  16. Programmes and Instruments Eligibility Priorities Allocations Regional and national programmes ERDF ESF Regions with a GDP/head 75% of average EU25 • innovation; • environment/ • risk prevention; • accessibility; • infrastructure; • human ressources; • administrative capacity 67.34% = 177.8 bn. EUR 8.38% = 22.14 bn. EUR Statistical effect: Regions with a GDP/head 75% of EU15 and >75% in EU25 Cohesion Fund Member States GNI/head 90% EU25 average • transport (TENs); • sustainable transport; • environment; • renewable energy 23.86% = 62.99 bn. EUR Regional programmes (ERDF) and national programmes (ESF) Member States propose a list of regions (NUTS I or II) • Innovation • environment/risk • prevention • accessibility • European employment • strategy 83.44% = 48.31 bn. EUR "Phasing-in" Regions covered by objec- tive 1 in 2000-06 period and not covered by the convergence objective 16.56% = 9.58 bn. EUR Cross-border and transnational programmes and networking (ERDF) Border regions and greater regions of transnational co-operation • innovation; • environment/ • risk prevention; • accessibility • culture, education 35.61% cross-border 12.12% ENI 47.73% transnational 4.54% f. networks Convergence objective 78.5% including a special programme for outermost regions (EUR 264 bn.) Cohesion Policy 2007-2013 3 Objectives Budget: € 336.1 bn (0.41% of EU-GDP) Regional competitiveness and employment objective 17.2% (EUR 57.9 bn.) European territorial co-operation objective 3.94% (EUR 13.2 bn.)

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