Investments for growth & jobs Promoting development and good governance in EU regions and cities

1. Investments for growth & jobsPromoting development and good governance in EU regions and cities 6thReport on economic, social and territorial cohesion, July 2014

2. Key messages & conclusions Rudolf Niessler, Director of the Policy Directorate DG for Regional and Urban Policy

3. 6th Cohesion Report • Art. 175 of the consolidated treaty: 'The Commission shall submit a report to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions every three years on the progress made towards achieving economic, social and territorial cohesion …' • Exceptionally, the report has been delayed by one year to report on the new Cohesion Policy programming period

4. New structure instead of old • Smart growth • Inclusive growth • Sustainable growth • Public investment, growth and the crisis • Good governance • Evolution of Cohesion Policy • Impact of Cohesion Policy • Cohesion Policy in 2014-2020 • Economic, social and territorial situation • National policies and cohesion • Other EU policies and cohesion • Impact of Cohesion Policy

5. Regional disparities increased

6. Economic disparities • Crisis halted regional economic convergence • National GDP projections show slow convergence post-crisis

7. Crisis reinforced role of Cohesion Policy • Crisis led to a rapid reduction of public investment as a part of the fiscal consolidation efforts

8. Cohesion policy 2007-2013 and national counterpart represents a significant proportion of public investment inMemberStates

9. Tangible benefits ofcohesionpolicy in 2007-2013 • 594 000 jobs created – at least 262 000 in SMEs • 77 800 start-up companies supported • 2 700 KM of new or reconstructed railways • 25 800 KM of new or reconstructed roads • Broadband access for 5 million citizens • Access to clean drinking water for 3.2 million citizens • ESF: 15 million participants per year • 940 financial instruments in 25 Member States rising EUR 12.6billion€ OP funding (including EUR 8.36billionstructuralFunds) for equity, loans and guarantees

10. Cohesion Policy 2014-20 in the EU economic policy mix Country-specific recommendations are the reference for Partnership Agreements and programmes

11. Cohesion Policy 2014-2020 • Focus on growth-enhancing investments • Concentration on Europe 2020 priorities • Improving governance • Linked to the European Semester • Linked to structural reform through ex-ante conditionalities

12. State of programming 2014-2020 • 16 Partnership Agreements (PAs) adopted • All remaining PAs have been commented and will be adopted by the end of the year • 197 out of the 205 REGIO-led Operational Programmes (Ops) have been submitted. • 181 out of 187 ESF/YEI OPs have been submitted, incl. 33 OPs covering YEI • So far 6 OPs have been adopted.

15. Ex-ante conditionality is challenging

16. Next steps • Full reporting on Cohesion Policy 2014-2020 programming period by end of 2015 • Ex-post evaluation of 2007-2014 by end of 2015 • Midterm review/revision of MFF by end of 2016 • 7th Cohesion Report in 2017 (including policy proposals post 2020)

17. 6th Cohesion Report Manuela GELENG Head of Unit, ESF Policy and Legislation DG Employment, Social Affairs and Inclusion European Commission

18. Overview 1. Employment, social and education trends (chapter 2 of the Report) 2. Policy framework and ESIF (ch.2) 3. ESF 2014-20 support to institutional capacity building and public administration reform (ch.5/ ch.8) 4. Results of ESF 2007-2013 programmes (ch.7) 5. State of play programming of ESF and YEI OPs (ch.8)

19. Key trends • The crisis has widened disparities in employment rates; • EU2020 employment target of 75% is currently far from reach; • Unemployment highest in the EU in over a decade; major risks for youth; • Early school leaving rates improve but significant challenges for education and training systems; • At-risk-of-poverty rates increased in 17 MS; • Severe material deprivation is on the rise 11% of the EU population in 2012. It is worst in southern and eastern MS.

20. EU Policy framework and ESIF • The EU2020 policy framework for "inclusive growth": higher employment rates as well as greater focus on social inclusion • EU2020 is now the backbone of the ESIF legal framework 2014-2020 => Funds will have to concentrate on a limited number of priorities (for the ESF, up to 5 investment priorities) • Despite the increasing needs as outlined already, need to ensure value for EU investments.

21. ESF 2014-20 support to institutional capacity building and public administration reform • ICB is a key EU2020 and CPR priority • Need to differentiate between stricto senso capacity to manage EU funds and the broader needs for comprehensive public administration reforms. • A strategic approach to ICB is a prerequisite for successful reforms (though not present in all MS)

22. Results of ESF 2007-2013 OPs Preliminary results of evaluations (end-2012): Access to employment: • Around 20 million participations (i.e. cases of participation in programmes); of which over 3 million found a job soon after the support ended. • 20 million young people received support (30% of the total) • Around 500,000 gained qualifications under these measures Social inclusion: • EUR 13 bn of ESF support; at least 164,000 persons entered employment after activation.

23. Results of ESF 2007-2013 OPs (ctnd) Education, training and lifelong learning: • 10% of total ESF (EUR 35 billion) for education and training; • 25.9 million participations in human capital development measures • 5.5 million low-skilled participated in lifelong learning Institutional Capacity Building: • EUR 3.7 bn ESF allocated to efficiency of public administrations and public services; ICB recognised as a goal.

24. State of play ESF/YEI programming • 187 ESF/YEI OPs expected; 181 officially submitted, incl. 33 OPs covering YEI • 5 OPs adopted (incl. 2 YEI dedicated OPs) • Overall, close link between CSR and MS selection of investment priorities for the ESF • ESF continues to be the main employment and human capital EU instrument, now boosted also by YEI for youth employment • More could be desired as regards funding allocations to Roma, social systems and PES reforms, education, and the ambition of public administration reforms.

25. Further information ESF thematic publications 2014-2020: • Youth employment/YEI: http://ec.europa.eu/esf/BlobServlet?docId=450&langId=en • Promoting inclusive growth: http://ec.europa.eu/esf/BlobServlet?docId=445&langId=en • Promoting Good Governance: http://ec.europa.eu/esf/BlobServlet?docId=444&langId=en • Simplified cost options with the ESF in Italy: http://ec.europa.eu/esf/BlobServlet?docId=453&langId=en

26. 6th Cohesion Report Lewis Dijkstra Deputy Head of the Economic Analysis Unit DG for Regional and Urban Policy

27. Chapter 1

28. Chapter 1

29. Chapter 1

30. Chapter 1

31. Chapter 1

32. Major roads1955-2030 Chapter 1

33. Major roads1955-2030 Chapter 1

34. Major roads1955-2030 Chapter 1

35. Major roads1955-2030 Chapter 1

36. Major roads1955-2030 Chapter 1

37. Major roads1955-2030 Chapter 1

38. Major roads1955-2030 Chapter 1

39. Regional competitiveness • Boosting competitiveness requires more investments in innovation, entrepreneurship, education, digital and physical networks and more exports & FDI Chapter 1

40. Chapter 2

41. Chapter 2

42. Chapter 2

43. Chapter 3

44. Chapter 3

45. Chapter 3

46. Chapter 3

47. Governance Poor governance slows down Cohesion Policy implementation, reduces its impact and hinders economic growth and entrepreneurship Chapter 5

48. Chapter 5

49. A growing source of investment Chapter 6

50. A stronger focus on key priorities Chapter 6