EU funding for broadband under the Rural Development Policy

1. EU funding for broadband under the Rural Development Policy Josefine Loriz-Hoffmann DG AGRI/G1 “Consistency of rural development“ “Stimulating regional economies through high speed internet access”, 07/05/2009

2. ICT policy for rural areas • Lisbon strategy and EU Recovery Plan – “broadband for all” objectives • Riga Ministerial declaration: 90% broadband in rural areas by 2010 • 2008 EU Recovery Plan – 100% coverage by 2010 • Internet: One of the major driving factors of economic growth • Strategic guidelines for rural development 2007-13 • 3 specifically recognised areas for intervention: Agri-food chain, rural tourism and internet in rural areas • Rural development programmes (ICT situation in rural areas) • Confirm the low to average levels of usage and coverage with internet in rural areas

3. How does rural development contribute to the ICT development? • COM(2009) 103 and SEC(2009) 254 – review of rural development contribution to ICT in agriculture and in rural areas • More than 10 measures across all priority axes in rural development accommodate ICT-related investments • Budgets remain axis- and measure-related, not action-related • In more than half of the RDPs (47 RDPs of 16 MS) direct actions on ICT (including broadband) targeting the creation of ICT infrastructure and basic (public and business) services are planned • Only (small-scale) broadband infrastructure – 31 RDPs of 12 MS • Farmers diversifying their farming activities via ICT – 21 RDPs of 15 MS • Non-farm ICT business related actions – 28 RDPs of 17 MS • Vocational training and human capital upgrading (e.g. ICT and computer skills, etc.) – 56 RDPs of 20 MS • ICT for an environmental use – 14 RDPs

4. Recovery package – The agreement • EUR 1.02 billion for broadband infrastructure and new challenges under rural development • Full flexibility in the use of the funds between broadband and new challenges • Higher co-financing EAFRD rates • 90% for convergence regions • 75% for non-convergence regions • Advance payments to beneficiaries up to 50% in 2009 & 2010 • No limitation to small-scale broadband infrastructure

5. Recovery package – The agreement • In Reg. (EC) 1698/2005 “broadband infrastructure in rural areas” has been added to the five new challenges which were identified and agreed in the context of the Health Check • The other provisions already spelled out in the context of the Health Check are extended to the new priority area "Broadband“, including the higher co-financing rates • Definition of eligible types of operations to be supported in relation to broadband in the Regulation • (closed list – not indicative) • Deadline for submission of revised Rural Development Programmes – 15 July 2009

6. Programming of broadband operations – major steps • Revision of the National Strategy Plan • Revision of the Rural Development Programme(s) • State aid notifications for large broadband schemes • Revisions to be approved by a Commission decision • Pre-submission consultations with DG AGRI/DG COMP/DG REGIO are recommended

7. Programming of the Recovery funds – changes in the NSP • Injection of the additional funds to be based on the strategic approach in rural development (art 9-14 of R 1698/2005) • Baseline analysis: • assessment of the current situation to be provided (SWOT analysis & needs); • in case of previously defined situation – how it has changed over the last 2 years?; • specific national/territorial problems; • define the potential in developing the priorities

8. Programming of the Recovery funds – changes in the NSP • Definition of needs - strategy • Define where, for what and to which extend support can be granted/programmed • Indicative allocation in RDP • Update of financial tables • Consistency of the NSP • Describe the coordination and demarcation between different support schemes/funds

9. Programming of the Recovery funds – changes in the RDPs • Creation of new operational types on broadband within the framework of measure 321 or re-enforcement of already existing commitments • Definition of objectives and targets • Description of the type of operations to be supported • Setting of the budget, aid intensity and co-financing rates • Definition of the types of beneficiaries and specific eligibility conditions • Definition of precise demarcation lines (e.g. with SF) • State aid clearance before submission of modification request – forschemes going beyond the “de minimis” • Monitor the implementation and report on it

10. Programming of the Recovery funds – changes in the RDP • Spending could start immediately after submission of modification requests – risk on the side of MS • Additional funds to be committed in 2009 and 2010; subsequent payments according to the n+2 rule

11. Who needs broadband? • New MS and Southern old MS (e.g. EL, PT, IT) • For MS with 100% DSL coverage - do not ignore the need of: • Upgrade of existing infrastructure • Higher capacity, faster access, bigger savings • Full mobility solutions for (remote) rural areas • Funds programmed under SF • EUR 2.2 bn for infrastructure • Target: provision of latest technologies in rural areas

12. What’s next? • New revised proposal voted in EP on 6 May • Amendment of Implementing Rules to be voted in May in the Rural Development Committee • Submission of modification requests by 15 July • Approval of modifications and commitment of funds

13. Communication to the Council and the EP“Better access for rural areas to modern ICT” • Report on ICT expenditure as of 2010 • Strengthen the support for farmers, foresters and food industry • Conduct specific studies on ICT in relation to agriculture, forestry and food industry, or for rural areas in general • Emphasis in the mid-term review of rural development on ICT-related operations • Broadband event in the second half of 2010

14. Thank you