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Workshop Legal Framework EU Structural Funds 2007 -2013

Workshop Legal Framework EU Structural Funds 2007 -2013 Riga, 4 December 2006 CHALLENGES FOR THE NEW PROGRAMMING PERIOD 2007-2013 Gerard van Gaalen Development Agency East Netherlands department European Affairs phone: +31 26 384 42 22 www.oostnv.com. Pleased to meet you !.

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Workshop Legal Framework EU Structural Funds 2007 -2013

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  1. Workshop Legal Framework EU Structural Funds 2007 -2013 Riga, 4 December 2006CHALLENGES FOR THE NEW PROGRAMMING PERIOD2007-2013 Gerard van Gaalen Development Agency East Netherlands department European Affairs phone: +31 26 384 42 22 www.oostnv.com

  2. Pleased to meet you !

  3. Mission Statement • Taking initiatives and supporting activities that lead to a stronger and more vibrant economy in the provinces of Gelderland and Overijssel. • The end goal is promoting a sustainable labor market.

  4. Where do we add value? Government Businesses Knowledge institutes

  5. Principals and shareholders • The principals and shareholders of the Development Agency East Netherlands NV are: • The Ministry of Economic Affairs (EZ) (57,62%) • The Province of Gelderland (33,56%) • The Province of Overijssel (8,82%)

  6. East Netherlands in figures Source: CBS/Statline, October 2006

  7. New Programme period 2007-2013 cornerstones • New Legislation • Council Regulation 1083/2006: General Provisions • Council Regulation 1080/2006: ERDF • Council Regulation 1081/2006: ESF • Council Regulation 1084/2006: Cohesion Fund • Council Regulation 1082/2006: European Grouping of Territorial • cooperation • Council Regulation 1085/2006: Instrument for Pre-Accession • (IPA) • Commission Regulation Implementing Regulation

  8. Where do ‘New programme period 2007-2013cornerstones’ we add value? • Budget Allocation • Allocation for cohesion policy: Council Dec. • 2005 • Allocation by Objective, Fund and Member • State: Comission Decisions July 2006 • Community Strategic Guidelines • Adopted October 2006 • Aide Mémoire for the desk officers • Manual for negotiating and implementing • programmes

  9. New programme period 2007-2013 first objective • CONVERGENCE AND COMPETITIVENESS • Regions less than 75% of EU 25 average GDP/head • States with less than 90% of EU 25 average GNI/head (Cohesion • Fund) • Statistical effect: regions with a GDP/head below 75% of EU15 and • above 75% of EU25 • Special programme for outermost regions

  10. New programme period 2007-2013 second objective • REGIONAL COMPETITIVENESS AND EMPLOYMENT • Cohesion policy at the service of all other regions outside • Convergence in the EU – no community zoning • Two elements: • Employment based on European Employment Strategy (ESF) • Regional competitiveness (ERDF) • Lisbon strategy • Innovation and the knowledge economy

  11. New programme period 2007-2013 third objective • EUROPEAN TERRITORIAL COOPERATION • The succes of INTERREG III, community added • value • Cross border co-operation (incl. sea borders) • Inter-regional co-operation • Transnational co-operation • Networking and exchange of experience • External cross-border co-operation - linked to new • European neighbourhood instrument

  12. infrastructure, innovation, investments etc. vocational training, employment aids etc. environmental and transport infra- structure, renewable energy all Member States and regions MemberStates with a GNI/head below 90% Objectives, Structural Funds and instruments 2007-2013 Structural Funds and instruments Convergence ERDF ESF Cohesion Fund ERDF ESF Regional Competitiveness and Employment European territorial Cooperation ERDF

  13. Geographical concentrationRegions below or close to 75% threshold GDP/head average 1999-2000-2001 below 75% in EU25 statististical effect below 75% in EU15 above in EU25 "naturally" above 75% because of growth other regions Art. 5+6 Gen.Reg. Index EU 25= 100 Source: Eurostat

  14. Cohesion Fund 2007-2013: Eligible Member States Allocation: EUR 61.56 bn. in 2004 prices Cohesion Fund 2007-2013 Transitional support

  15. European Territorial Cooperation 2007-2013 Allocation: EUR 7.75 bn. for cross-border, transnational and interregional cooperation Cross-border areas

  16. Budget new programming period 2007-2013 • Total budget € 307.6 billion (35.7% of EU budget) • Three new Objectives • Convergence: 81.7% of total (€ 251.3 billion) • Regional Competitiveness and Employment: 15.8% • of total (€ 48.8 billion) • European Territorial Cooperation2.5% of total (€ 7.5 • billion) • (all figures in 2004 prices)

  17. Programmes and Instruments Eligibility Priorities Allocations Convergence objective 81.7% (EUR 251.33 bn) Regional and national programmes ERDF ESF Regions with a GDP/head 75% of average EU25 • innovation; • environment/ • risk prevention; • accessibility; • infrastructure; • human resources; • administrative capacity 57.6% EUR 177.29 bn 4.1% EUR 12.52 bn Statistical effect: Regions with a GDP/head 75% of EU15 and >75% in EU25 Cohesion Fund including phasing-out Member States GNI/head 90% EU25 average • transport (TENs); • sustainable transport; • environment; • renewable energy 20.0% EUR 61.42 bn Regional competitiveness and employment objective 15.8% (EUR 48.79 bn.) Regional programmes (ERDF) and national programmes (ESF) Member States suggest a list of regions (NUTS I or II) • Innovation • environment/risk • prevention • accessibility • European Employment • Strategy 15.5% EUR 38.4 bn "Phasing-in" Regions covered by objec- tive 1 beween 2000-06 and not covered by the convergence objective 3.4% EUR 10.38 bn Cross-border and transnational programmes and networking (ERDF) Border regions and greater regions of transnational co-operation • innovation; • environment/ • risk prevention; • accessibility • culture, education of which: 77.6% cross-border 18.5% transnational 3.9% interregional + ENPI Cohesion Policy 2007-2013 3 Objectives Budget: EUR 307.6 bn (0.37% of EU-GNI) (2004 prices) European territorial co-operation objective 2.44% (EUR 7.5 bn.)

  18. EU25 EU27 Number of regions Population Number of regions Population million % of EU million % of EU Convergence Objective Convergence Regions 70 124 27.3 84 153.7 31.7 Statistical Effect Regions 16 16.4 3.6 16 16.4 3.4 Total 86 140.4 30.9 100 170.1 35.1 Competitiveness and Employment Objective Phasing-in Regions 4.0 13 19 4.2 13 19 3.9 Other Regions 155 295.2 64.9 155 295.2 61.0 Total 168 314.3 69.1 168 314.3 64.9 Convergence and Competitiveness and Employment ObjectivesRegions and population covered in EU25/27 (December 2005 figures)

  19. EU Cohesion Policy 2007-2013: Allocation by Objective and Member Statein 2004 prices

  20. New elements of programming period 2007-2013 • General: 3 instead of 7 objectives, 3 instead of 5 funds, mono-fund • programmes, no zoning outside “Convergence” objective • Three Funds: ERDF, ESF and Cohesion Fund • No more Community Initiatives • Programming: 2 steps instead of 3 • No Programming Complement, no measures • Stronger focus on strategic approach • National Strategic Reference Framework (NSRF) • clear link with National Reform Programmes (= national Lisbon • strategies) • Earmarking • clear link with Community Strategic Guidelines • Cohesion Fund integrated in programming approach • Exception for major projects (above 50 million Euro) and • environment (above 25 million Euro)

  21. New elements of programming period 2007-2013 • Stronger cooperation with other financial instruments (EIB, EIF) • JASPERS • JEREMIE • JESSICA • EC Initiative: Regions for Economic Change • Tool for better exchange of best practices • Support to housing under certain conditions • Urban issues: subdelegation to to urban authorities possible • Further decentralisation to Member States and regions • Shared management between the European, national, regional, urban and local level

  22. New elements of programming period 2007-2013 • Higher intervention rates (up to 85%) • Differentiation between different groups of countries • Additionality only to be verified for convergence objective • Financial management at priority axis level, allows greater • flexibility for programme adaptations • Eligibility of expenses defined according to national rules • (with a few exceptions) • Control system: proportional if Community cofinancing below 33% • and EUR 250 million of total costs • SFC 2007: electronic data exchange for all documents

  23. Structural funds 2007-2013 : Differentiated intervention rates Criteria Member States, regions ERDF, ESF Cohesion Fund (1) Member States whose average per capita/ GDP below 85% between 2001-03 CZ, EE, GR, CY, LV, LT, HU, MT, PL, PT, SI, SK, BG, RO 85% 85% (2) Member States other than those under (1) eligible to the Cohesion Fund ES 80%/50%* 85% (3) Member States other than those under (1) and (2) AT, BE, DK, DE, FR, IR, IT, LU, NL, SE, SF, UK 75%/50%* - (4) Outermost regions referred to in Article 299 (2) of the Treaty regions in ES, FR, PT 85% 85%** * The first rate concerns regions eligible under the "Convergence"; the second one those under the "Regional Competitiveness and Employment" objective ** If applicable

  24. Possible growth and employment effectsduring programme period 2007-2013 • Growth • Major gains in terms of additional GDP of • approximately 10% in most new MS by 2013 (8.9% in • Poland, more than 10% in Baltic States). • Productivity • Gains vary between 2.3% (Slovakia; Hungary) and 7% • (Bulgaria; Romania). • Employment • Overall 2.5 million new jobs (between + 4% to 8%).

  25. Community's strategic guidelines on cohesion proposed by the Commission, adpoted by the Council, assent by the European Parliament 1 National strategic reference framework proposed by the Member State in applying the partnership principle; reflects on the Union‘s orientations, lays down a national strategy and its programming; finally decided by the Commission 2 Operational Programmes one programme by fund and Member State or region, description of priorities, management and financial sources; proposed by Member State or region; finally decided by the Commission 3 Programme management and project selection by Member States and regions; “shared management“ principle = concertation with the Commission 4 Strategic follow-up and annual debate by the European Council in Spring, based on an annual report of the Commission and Member States 5 Strategic guidelines, programming and follow-up

  26. Timetable • 1 August 2006: Structural Funds Regulations enter into force • 6 October 2006: Council approves Community Strategic • Guidelines (CSG) • 10 October 2006: CSG enter into force • October/November 2006: Member States submit National • Strategic Reference Frameworks and Operational • Programmes • 2007:Commission adopts Operational Programmes • (about 350)

  27. Points for attention for (new) member states • Public procurement • - focus on implementation of EU compliant legislation: use TA • Strengthen inter-ministerial coordination • - cooperation between Managing authorities, Certifying • authority, Audit authority and Intermediate Bodies • Separation of financial management and control tasks • management checks vs. independent sample checks • 4. Adequate accounting systems • - shorten delays with positive effect on absorption capacity (N+2/N+3 rule) • - SFC 2007: submission via electronic data exchange • 5. Recruitment and training of additional staff also for intermediate bodies and regions

  28. Points for attention for (new) member states • 6. Clear definition of priorities keep flexibility but avoid • «grey zones»  Clear definition of areas of intervention • of OP’s, Funds and priorities (cross financing) • 7. Project pipeline reserve budget for project • preparation • 8. Partnership principle during programming and • implementation national, regional, local, social • partners, NGO's • 9. Operational and reliable monitoring systems need for • standardised monitoring tables assessment of • N+2/N+3 risks • 10. Careful planning of national co-financing integrate • EU into national budget

  29.   Convergence objectives (1) • Research and technological development (R&TD), innovation and entrepreneurship • Information society • Environment • Prevention of risks • Tourism

  30.   Convergence objectives (2) • Transport investments • Energy • Education investments • Health • Direct aid to investment in SMEs

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