Position Paper Poland

1. Position Paper Poland Position of the Commission Services on the development of the Partnership Agreement and Programmes in Poland for the period 2014-2020

2. Background • Pro-active approach: early stage information on Commission's services position on priorities 2014-20 to Member State • Framework for dialogue between Commission services and Member State • Closer alignment with EU2020 strategy and Country Specific Recommendations (National Reform Programme) • Poland PP is pilot: submitted to Poland on 28/9/2012 • Launch event with Commissioner Hahn in Warsaw on 5/10/2012

3. EU2020 Headline targets for Poland

4. Challenges for Poland I • Network infrastructure • Poor technical condition railway network • Ageing rolling stock • Low density motorway network • Low broadband penetration • Outdated energy network

5. Challenges for Poland II • Innovation friendly business environment • Low level of R&D/GDP: 0.74% (2010) • Low level of private R&D: only 7% of firms apply R&D • Weak linkages between science and industry • Fragmented research and innovation system • Limited availability of risk capital • Underutilised potential of e-economy • Need for more business friendly administration

6. Challenges for Poland III • Labour market participation • Low labour market participation: 64.8% (2011); target 71% • Second lowest employment rate older workers in EU (especially women) • One of lowest exit ages from labour market • Deteriorating situation of youth on the labour market • Lack of affordable childcare • Education: quality and mismatch skills and labour market needs • High share of population at risk of poverty • Restructuring of some sectors (e.g. agriculture)

7. Challenges for Poland IV Resource efficiency and low carbon economy • PL economy twice as energy consuming as EU average • Deficiencies in energy production, transmission and distribution • Underutilised potential renewables (RES) • Continuing deficiencies in waste water treatment • Waste management: too many landfills, insufficient recycling • Insufficient anti flood prevention and preservation of natural resources

8. Four Priorities for funding in Poland • Modern network infrastructure for growth and jobs • Innovation friendly business environment • Increasing labour market participation through improved employment, social inclusion and education policies • Environment friendly and resource efficient economy

9. Link between Funding Priorities and Thematic Objectives

10. Modern network infrastructure for growth and jobs • Absolutefinancialterms: largestfunding area; relative share: decrease in comparison to 2007-13 • Improvingaccessibility • Modernisation of energy networks • Increasingtake up of ICT

11. Modern network infrastructure for growth and jobs • TO 7: Promoting sustainable transport and removing bottlenecks in key network infrastructures • TO 4 (part): Supporting the shift towards a low-carbon economy in all sectors (network infrastructure) • TO 2 (part): Enhancing access to, and use and quality of, information and communication technologies (network infrastructure);

12. TO 7: Promoting sustainable transport and removing bottlenecks in key network infrastructures • Relevant CSR: • Strengthen the role and resources of the railway market regulator and ensure effective and swift implementation of railway investment projects • Railways: TEN-T and connectingsecondary/tertiary nodes • Modernise existing corridors, complete gaps, deployment ERTMS • Modernise rolling stock • Road: TEN-T and connecting secondary/tertiary nodes • Complete gaps in core TEN-T road network • (Re)construction of main road corridors connecting growth poles and peripheral regions

13. TO 7: Promoting sustainable transport and removing bottlenecks in key network infrastructures • Environment friendly and sustainable urban transport • Intelligent transport systems and mobility plans, clean vehicles, integrate different modes and service providers • Intermodal transport systems and logistic centres (rail, sea and air ports) • Shift from road transport to other modes (especially rail) • Promote alternative low carbon fuels • Success factors: improve strategic planning, development of sustainable and prioritised project pipeline (with Jaspers support), strengthen administrative capacity (PKP PLK), restructure pricing and maintenance systems to increase competition

14. TO 4 (part): Supporting the shift towards a low-carbon economy in all sectors (network infrastructure) • Develop and modernise energy distribution systems • Low voltage electricity distribution networks, including smart grids an integration of distributed generation with the grid • Develop/upgrade urban heating networks • Success factors: bulk of investments should be made by private sector; public support should be complementary and where possible via revolving funds/guarantees. Public support should target market failures and development of new technologies. Effective and stable regulatory framework should be in place (e.g. Energy Performance Contracting)

15. TO 2 (part): Enhancing access to, and use and quality of, information and communication technologies (network infrastructure) • Extend broadband deployment and the roll out of high speed networks • Develop next generation access (NGA); normal broadband only in remote/rural areas • Develop complete solutions: distribution and access networks, including “last mile” investments with focus on remote/rural areas • Success factors: public support should target market failures and leave other investments to private sector; importance of technical neutrality; notify state aid schemes on time; explore synergies with other infrastructure projects (e.g. combine works for broadband with road works)

16. Innovation friendly business environment • Increase of allocation, both in absolute and relative terms • at least 50 % of ERDF resources to energy efficiency and renewables, ICT, innovation and SME support (Mazowieckie: 60%) • Increasing private R&I investment • Enhancing business innovation and competitiveness • Development of e-economy • Access to finance and advanced business services • Efficient and business friendly administration

17. Innovation friendly business environment • TO 1: Strengthening research, technological development and innovation • TO 2 (part): Enhancing access to, and use and quality of, information and communication technologies (non-network infrastructure) • TO 3: Enhancing the competitiveness of small and medium-sized enterprises, the agricultural sector and the fisheries and aquaculture sector • TO 11: Enhancing institutional capacity and an efficient public administration

18. TO 1: Strengthening research, technological development and innovation • Relevant CSR: • Take additional measures to ensure an innovation-friendly business environment, by ensuring better links between research, innovation and industry, and by establishing common priority areas and instruments supporting the whole innovation cycle; improve access to finance for research and innovation activities through guarantees and bridge financing. • Strengthen private R&I investments • Support to innovation, especially in SMEs, applied research, pilot lines, early product validation, Key Enabling technologies, eco-innovation, support to innovative start ups, co-inventions (cooperation POL and foreign firms), joint science-industry sectoral funds

19. TO 1: Strengthening research, technological development and innovation • Develop R&I Infrastructure and centres of excellence • Improve quality of research centres in Poland to develop R&I excellence, in order to stimulate and undertake collaborative projects with businesses and foreign research centres for co-inventions • Create innovation friendly environment for innovative businesses • Cluster policy, business networks, technological and science parks, incubators, high quality and tailor made services, internationalisation, financial instruments, support to patents/IPR • Success factors: improve coordination between science and innovation and industrial policies on the basis of review of Polish economy (Foresight 2030); coordination between smart specialisation strategies at national and regional level; early involvement of stakeholders in design and planning of policies

20. TO 2 (part): Enhancing access to, and use and quality of, information and communication technologies (network infrastructure) • Develop ICT products and services, e-commerce and enhance demand for ICT • Create new, innovative e-services for business and science • ICT applications in support of sustainability and competitiveness of remote and rural areas • Strengthen ICT applications for e-government • Support new applications linked to e-procurement, e-learning, e-culture, e-inclusion, e-health in line with EU Digital Agenda • Improve interoperability and accessibility of various systems • Success factors: experience 2007-13: improve coordination in ICT including improved delivery of projects (preparation, targets, implementation) in the area of e-government and B2B solution. There should be clear quantifiable results for society

21. TO 3: Enhancing the competitiveness of small and medium-sized enterprises, the agricultural sector and the fisheries and aquaculture sector • Increase productivity through entrepreneurship and innovation • Investments in machinery/equipment to adopt innovative technologies and produce innovative products • Promote innovation among SMEs (product, process, marketing, management/organisation); experimentation and commercialisation of innovative solutions • Tailored financing schemes based on risk sharing (venture capital, business angels, grants) • Support structural changes by developing new business models in SMEs • Support internationalisation and cooperation with other firms outside Poland, stimulate eco-innovation (e.g. use of renewable energy sources), application of green technologies

22. TO 3: Enhancing the competitiveness of small and medium-sized enterprises, the agricultural sector and the fisheries and aquaculture sector • Effective business support environment contributing to innovation, entrepreneurship and internationalisation • Targeted advisory services for e.g. start ups, access to new markets, resource efficiency, technology transfer, participation in clusters • Offer comprehensive package of support tools, combining grants (for start ups and early stage projects) and revolving funds (for more mature investments) • Success factors: better coordination of different innovation related strategies at national and regional level; gap analysis to understand financing needs of SMEs and in order to design the appropriate financial instruments; facilitate access to capital markets and simplify regulatory procedures for SMEs

23. TO 11: Enhancing institutional capacity and an efficient public administration Investments need to be concentrated on the basis of a clear strategy for reinforcing administrative efficiency. Objectives: • Reduce administrative burden and barriers for enterprises, • Improve the system of transposition and implementation of EU Directives, • Improve access and efficiency/quality of judiciary system, • Develop e-government with better integration and standardisation of offered services.

24. Increasing labour market participation through improved employment, social inclusion, and education policies • Increase of relative share in allocation in line with stipulations in new Regulations 2014-20 • 20% ESF to social inclusion/povertyreduction

25. Increasing labour market participation through improved employment, social inclusion, and education policies • TO 8: Promoting employment and supporting labour mobility • TO 9: Promoting social inclusion and combating poverty • TO 10: Investing in education, skills and lifelong learning

26. TO 8: Promoting employment and supporting labour mobility

27. TO 9: Promoting social inclusion and combating poverty

28. TO 10: Investing in education, skills and lifelong learning

29. Success factors TOs 8-11 - Ensure fulfillment of ex-ante conditionalities (especially in relation to strategies for poverty reduction, tertiary education, health sector and public administration), - Ensure a strong policy framework and ownership of measures, - Ensure job efficiency of actions addressed to individuals, - Tailor and restrict systemic solutions to alleviate existing legal and institutional bottlenecks, -Ensure complementarities of funds at policies level in order to establish clear targets and investment needs and translate them into practice through specific implementation solutions, especially for investments in education, health, good governance and support to enterprises, -Ensure a relevant implementation set-up compatible with a share of responsibilities for policies- EMPL position: keepthe current model of implementation.

30. Environment friendly and resource efficient economy • Relative increase of allocation, especially for energy efficiency and renewables • At least 6% of ERDF for shift to low carbon economy (Mazowieckie; 20%) • A shift to an energy efficient, low carbon economy • Environment protection and improved management of natural resources

31. Environment friendly and resource efficient economy • TO 4 (part): Supporting the shift towards a low-carbon economy in all sectors (non-network infrastructure) • TO 5: Promoting climate change adaptation, risk prevention and management • TO 6: Protecting the environment and promoting resource efficiency

32. TO 4 (part): Supporting the shift towards a low-carbon economy in all sectors (non-network infrastructure) • Relevant CSR: • Step up efforts to improve incentives for investment in energy generation and efficiency. • Promoting energy efficiency • Support deep energy retrofitting of public buildings and private housing, incl promotion of nearly zero energy buildings an efficient cooling and heating systems; investments in public lighting • Strengthen energy efficient measures in services, industry and agriculture, by promoting energy efficiency measures (especially SMEs) incl recovery of industrial waste heat

33. TO 4 (part): Supporting the shift towards a low-carbon economy in all sectors (non-network infrastructure) • Supporting investments in RES (renewables) • Increase share of RS in final energy consumption by production of electricity, combined power heating generation (CHP), heating and cooling from RES • Investments in facilitating reception of RES • RES in transport: biofuels • Promotion of use of RES in SMEs • Reduction of greenhouse gas emissions in agriculture and forestry • Success factors: focus on market roll out of new generation of technologies (SET Plan); coherent, stable and predictable RES policy; bulk of investments by private sector; public support should target market failure and use where possible revolving funds

34. TO 5: Promoting climate change adaptation, risk prevention and management • Adaptation to climate change in the field of water management and flood prevention • Sustainable water management incl. water efficiency, water retention, effective spatial planning considering inundation areas and natural water retention • Flood prevention measures incl. flood risk mapping, flood prevention projects at river basin level, in coordination with neighbouring countries and development of appropriate monitoring tools • Adaptation to climate change in other areas (forest management, land use, management of coastal zones) • Forest protection belts against erosion and fire • Afforestation and planting of forest belts alongside water courses; improved soil management • Integrated, sustainable development of coastal zones with link to Baltic Sea strategy • Improve disaster management systems and risk prevention management

35. TO 5: Promoting climate change adaptation, risk prevention and management • Success factors: set up of climate change strategy (due in early 2013); coordination of actions in field of flood prevention through integrated planning and efficient project pipeline; implement acquis related to river basin management plans; flood risk mapping in compliance with Floods Directive; strengthen governance and institutional capacity

36. TO 6: Protecting the environment and promoting resource efficiency • Investments in water and waste sectors to fulfil requirements of EU legislation • Treatment of waste water (extension of collection system, modernisation of WWTPs, sludge treatment), water (drinking water infrastructure, water treatment, leakage reduction) • Support waste infrastructure in line with waste hierarchy with priority for prevention, re-use and recycling; landfilling needs to be reduced • Improvement of urban environment, incl regeneration of brownfield sites and reduction of air pollution • Air quality measures for sectors causing largest pollution, drainage, soil desealing measures, rehabilitation of contaminated sites

37. TO 6: Protecting the environment and promoting resource efficiency • Protection of biodiversity, soil protection and promoting ecosystem services and green infrastructures • Management and restoration of valuable areas in particular Natura 2000 • Support transition to environmentally sustainable farming practices and fisheries/aquaculture • Success factors: transposition and implementation for relevant environmental directives linked to strengthening of institutional capacity of authorities to implement and manage projects; financing to Natura 2000 in line with Prioritised Action Framework

38. Ex-ante conditionalities • ex-ante conditionalitiesarepreconditions relating to the effective and efficient use of EU Funds • Most relevant for Poland are: • develop a comprehensive national transport plan (covering in particular rail and road transport); • develop a national or regional research and innovation strategy for smart specialisation (including an ICT chapter) and a national next generation access (NGA) plan; • provide actions for effective implementation of the Small Business Act; • develop a national strategy for poverty reduction; • develop a national or regional strategies for increasing tertiary education attainment;

39. Ex-ante conditionalities • ensure the effective implementation of EU environmental “acquis” in the sectors of waste management (Directive 2009/98/EC) and water management (Directive 2000/60/EC) as well as horizontal provisions concerning environment impact assessment and strategic environment impact assessment (Directives 85/337/EEC; 2001/42/EC); • transposition into national law of Renewable Energy Directive (2009/28/EC); • ensure a strategy for reinforcing administrative efficiency including public administration reform; • ensure national or regional strategy for health ensuring access to quality health services and economic stability; • in fisheries, improve data collection for fisheries management (to ensure a smooth shift from direct to shared management) and the implementation of a Union control, inspection and enforcement system.

40. Governance of Cohesion Policy in Poland • Distribution budget between national and regional programmes • The performance and absorption rates of the majority of the 16 regional programmes are very satisfactory. An eventual larger share for the regions in the total budget will be conditional on better coordination between regional and national policies. • Number of national OP's • Large national operational programmes had a slow take off mainly due to complex coordination structures and a large share of complex major projects.The Commission will support any proposal reducing the complexity and accelerating the take off of programmes. A larger number of national sector OP's could be considered 1) environment, climate change and energy, 2) transport, 3) research and innovation, 4) information society

41. Governance of Cohesion Policy in Poland • Multi fund OP's? • New Regulations offer to Member States option of ERDF/CF/ESF OP's • Integrated approach and better coordination is not automatically guaranteed by multi fund OP's: each proposal will have to be assessed on its own merits and added value • ESF: keep the current model of implementation and ensure complementarities at policies level: clarity on targets and investment needs and translate them into practice through specific implementation tools • Role of key projects • EC has no objections against the concept of early identification of projects of strategic importance, but it should be used only for those projects which are really of strategic importance • Ministry for Regional Development should take initiative for definition and clear guidelines for selecting and preparing key projects

42. Governance of Cohesion Policy in Poland • Development of coherent strategic frameworks for important areas of investment co-financed by EU Funds • Strategies need to become less fragmented, stable for a longer period and should be in place at the start of the next programming period. This will help to select the best quality projects. • This applies for example to innovation (smart specialisation strategy), rail and road infrastructure (Masterplans for rail and road) and broadband/ICT (Digital Agenda for Poland) • Follow up on implementation of public procurement rules and environmental legislation • national legislation is now compliant with EU directives and implementation of the legislation is also secured • Nevertheless, continuous efforts should be made to inform and train potential beneficiaries to follow up the correct procedures in order to avoid financial corrections afterwards

43. Tools for territorial dimension • ITI: Integrated Territorial Investment • Support from different priority axes of one or more OP's to achieve integrated investment in a particular territory • Can be both top down or bottom up: clear strategy should be in place for the related territory • ITI's should be mentioned separately in each OP with indication of financial allocation from each priority axis • Management ITI: either by managing authority or sub-delegated to intermediate body • Member States should indicate in their Partnership Contracts the arrangements for the use of ITIs. • Minimum 5% of ERDF earmarked for integrated sustainable development • To be implemented via ITI's with delegation to cities: degree of delegation depends on national context • List of cities mentioned in the Partnership Contract for Urban Development Platform should correspond to ITI for sustainable urban development

44. Tools for territorial dimension • CLLD: Community Led Local Development • Strictly bottom up approach for a well defined area • Small scale • Local action group determines content strategy and operations financed under it • Multi annual strategy to encourage innovation at local level via networking and local public private partnership • Link with macro strategies like e.g. Baltic Sea Strategy • Poland should seek synergies with neighbouring countries in the areas of research and technology transfer, infrastructure, protection of the environment and risk prevention, especially water in the Baltic Sea catchment area, and sustainable economic development at sea

45. Timetable • Sept/Oct 2012:Position paper submitted to Poland and launch event in Warsaw • Nov 2012 –mid 2013:Informal dialogue meetings and technical meetings between EC and Poland • Q2/Q3 2013 (tentative):submission draft Partnership Agreement Poland to EC • EC: negotiation mandate and observations on Partnership Agreement sent to Poland within 3 months after submission • End 2013: Adoption Partnership Agreement • Q3/Q4 (tentative):submission of OP's Poland to EC • EC: observations on OP's within 3 months after submission • May 2014 (tentative): ultimate deadline for adoption of OP's

46. For more information InfoRegio:ec.europa.eu/inforegio RegioNetwork:www.regionetwork2020.eu