The future of the EU Budget Panel 1: Cohesion policy

1. The future of the EU BudgetPanel 1: Cohesion policy Piotr Serafin, Poland Budapest, 30th May 2008

2. Issues • Cohesion policy as an instrument of achieving objectives of the Union • Cohesion policy and Lisbon Strategy • Some thoughts about future of cohesion policy • Possible future enlargements and cohesion policy

3. Cohesion policy in a context of the budget review • A debate about the future of the European budget is a debate about the vision of the European integration that we want to carry into effect in the years to come. • Deepening of integration and improving the effectiveness in attainment of jointly set goals should be behind the changes proposed in the budget review • instead of changes aimed at redistribution of financial flows (financial flows between the EU budget and member states budgets constitute a very minor part of all membership implications)

4. Cohesion policy as an instrument of achieving objectives of the Union • Provides an impetus for enhancing competition and innovation potential in MS and regions • Mobilises both public and private capital for effective invetments on objectives set at the Community level • Requires application of an integrated approach in the process of implementation of development priorities • Contributes to achieving an instituttional convergence (promotes multi-annual strategic and financial managment, programming, monitoring, control and evaluation etc.)

5. Cohesion policy and Lisbon agenda • With the adoption of the Integrated Guidelines for Growth and Jobs cohesion policy became a key instrument for the attainment of Lisbon Strategy objectives • All new MS fulfilled earmarking ceiling even though non-binding for them

6. Some thoughts about future cohesion policy • Union’s cohesion, both in its social, economic and territorial dimension is a prerequisite if new development challenges are to be effectively met • The degree of Community’s cohesion will determine the ability of EU to adapt to structural change • As of today the disparities in development levels constitute a barrier to deepening of integration, particularly in economic dimension e.g. • difficulties in taking full advantage of the potential of knowledge and innovation inherent in the EU-27 • Absence of territorial cohesion weakens Europe’s mobility and dynamism, and also reduces development potential of certain regions, particularly of rural areas.

7. New challenges • Climate change • Energy prices • Globalisation • Demography • What role for cohesion policy (if any)?

8. Some thoughts about future of cohesion policy • Effective taking up of the EU development challenges as well as of global challenges will require further deepening of: • integrated approach and • concentration approach (thematic and geographical)

9. Some thoughts about future of cohesion policy • Total budget for cohesion policy 2014-2020 • 0,37% GNI EU-27 • rural development and fisheries excluded 0,34% GNI EU-27 • Decrease of allocations for EU-15 from 48% to 33%

10. Some thoughts about future of cohesion policy • 2007-2013 split between EU-15 a EU-12 is 1:1, but 2014-2020 will be 1:2

11. Possible future enlargements and cohesion policy • EU cohesion policy under 2007-2013 rules • Turkey’s annual growth rate at 4,5% • Total budget for cohesion policy 2014-2020 • 0,47% GNI EU-28 • If rural development excluded 0,43% GNI EU-28 • Allocation decrease for EU-15 from 48% to 25% Estimates of UKIE