European Structural & Investment Funds: 2014 - 2020

1. European Structural & Investment Funds: 2014 - 2020 Update on Developments: 15 November 2013

2. New Programmes: Key Stages 2013 European Budget Agreed Regulations Adopted Partnership Agreement Signed Programmes Agreed Projects Approved Projects Start: January 2014 Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future

3. New Programmes: Key Stages 2013 European Budget Agreed Regulations Adopted Partnership Agreement Signed Programmes Agreed Projects Approved Projects Start: early 2014 Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future

4. Agreement of European Budget • No material developments since last update: • February 2013: European Council agree package: bad news for Wales – • reduction of circa £400m. • 27 June 2013: Political agreement on budget reached by leaders of • Parliament, Council and Commission - 3 July 2013: European Parliament • approved EU Budget. • UK Government, under pressure from DAs to mitigate scale of reductions, • subsequently proposed redistribution of funds from England to the DAs (each UK • nation to take equal reduction of around 5%, subject to EC agreement). • Wales offered additional €375m - with East Wales seeing potentially sizeable • increase in funding. • Distribution of the Welsh allocation between WW&V and East Wales • restricted by programme flexibilities. Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future

5. Indicative Regional Allocations • UK Government intends to distribute funding as follows, subject to the approval of the European Commission via the UK Partnership Agreement: Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future

6. New Programmes: Key Stages 2013 European Budget Agreed Regulations Adopted Partnership Agreement Signed Programmes Agreed Projects Approved Projects Start: January 2014 Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future

7. Draft SF Regulations: Agreement • The Structural Funds legislative package consists of: • Common Provisions Regulation (All ESI Funds) • General Provisions Regulation (Structural Funds) • ERDF Regulation • ESF Regulation • European Territorial Cooperation Regulation • Number of additional Commission Regulations (Delegated and Implementing Acts) for non-essential technical matters and standard implementation arrangements. (Discussed at 5 September Forum meeting) • ‘Fund for the Most Deprived’: compulsory for Member States. Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future

8. Draft SF Regulations: Agreement • ‘Fund for most Deprived ‘ involves top-slicing SFs to create funding pot – replacing previous CAP related arrangements. • Seeks to address food deprivation, homelessness and material deprivation for children through the provision of material goods and small scale actions to support social inclusion – each require a separate OP. • UK wide Operational Programmes envisaged– one for provision of material goods and or one for social innovation. • Wider SF negotiations – European Parliament vote 19 November - Regulations hopefully adopted in December 2013. • Parallel negotiations on Common Agriculture Policy / Common Fisheries Policy legislative packages. • Under latest regulation changes, Commission will consider accepting Partnership Agreements with only some – not all - of the EU fundscovered if the fund-specific regulations are likely to be delayed (i.e.: > 2 months from adoption of the main ‘common provisions’ regulation). Fisheries fund is likely to be the last fund regulation to be adopted (likely to be > 2 months). Could have implications for timing of RDP submission. Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future

9. New Programmes: Key Stages 2013 European Budget Agreed Regulations Adopted Partnership Agreement Signed Programmes Agreed Projects Approved Projects Start: January 2014 Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future

10. Partnership Agreement: Progress • First draft UKPA seen by Commission in early October and seen as requiring strengthening to be fit for purpose. BIS has undertaken redrafting during October/November to align the National Chapters and overarching UK chapter to ensure they read as one document. • The draft Welsh Chapter has been assessed separately by the Commission and the Welsh Ex-Ante Evaluators. Feedback has been generally positive and work has been undertaken to respond to points raised. • UK delegation meeting Commission on 21 November to discuss latest draft. This will give rise to further comments which will need to be addressed before formal submission of the UKPA- which it is hoped will occur at the end of the year. Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future

11. New Programmes: Key Stages 2013 European Budget Agreed Regulations Adopted Partnership Agreement Signed Programmes Agreed Projects Approved Projects Start: January 2014 Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future

12. Draft Programmes: State of Play • Good progress on converting draft programmes – as set out in consultation documents - onto Commission templates. • Work takes account of consultation feedback / ex-ante evaluators’ comments / Commission’s views . • As previously reported - key Commission message ‘not business as usual – need to be more specific over our investment priorities’. • 24 September - final draft Programmes noted by Cabinet. • 21 November - further discussions with Commission. • End November – draft proposals to be published on WEFO website. • December - Start informal negotiations with Commission– to enable SF programmes to start early 2014. • RDP / EMFF starting 2015 – detailed update will be provided at 25 November meeting. Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future

13. New Programmes: Key Stages 2013 European Budget Agreed Regulations Adopted Partnership Agreement Signed Programmes Agreed Projects Approved Projects Start: January 2014 Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future

14. Development of Future Projects • Guilford Review informs new approach to deployment. • Economic Prioritisation Framework (EPF) taking shape: discussions have been held with officials across all WG policy departments. • Latest thinking to be shared with members at the meeting on 25 November (Agenda Item 6). • Further discussion ongoing in respect of Regional Planning mechanisms. • Significant thinking / work continuing in respect of ‘simplification’ (Discussed at 5 September Forum meeting) • Will inform the content of the Partnership Agreement / Programme Strategy. Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future

15. SF Programmes: ‘Traffic Lights’ European Budget Agreed Regulations Adopted Partnership Agreement Signed Programmes Agreed Projects Approved Projects Start: January 2014 Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future

16. Thank You.Happy to answer questions at 25 November meeting. Wales European Funding Office