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Regional Economy and Policies for 2014-2020

Learn about the objectives, instruments, and new developments in the regional policy and economy for the 2014-2020 period. Explore the focus on economic, social, and territorial cohesion, sustainable urban development, and more.

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Regional Economy and Policies for 2014-2020

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  1. Course 7 Regional economy and policies

  2. Contents • Cohesionpolicy for 2014-2020 • Objectives of the Regional Policy • Instruments of the Regional Policy • …aboutmoney….

  3. What’s new for 2014-2020 • Economic, social and territorial cohesion, reducing disparities among regions • Focusing cohesion policy’s resources on the objectives of the Europe 2020 Strategy • Thematic concentration: clear investment strategies, objectives and indicators, aligned with the thematic objectives for 2020 • Clear targets • Simplification through a more coherent programming process, clearer rules and implementation measures (harmonizing eligibility criteria, simplified costs) • Stronger role for partners in planning & implementation • A clearer orientation to efficiency and monitoring the results = conditionalities, performance reserve

  4. Territorial cohesionSustainable urban development: A priority for 2014-2020 At least 5% of European Regional Development Fund (ERDF) should be invested in integrated sustainable urban development at national level • Integrated urban development strategies developed by citiesto be implemented as Integrated Territorial Investment (ITI), a multi-thematic priority axis or a specific Operational programme. • Projects are selected by the cities in line with the strategies. • Urban-rural linkages have to be taken into account. • Use of community-led local development approaches possible (CLLD): consulting local citizens' organisations.

  5. Other instruments for Urban Development Innovative actions for sustainable urban development (from 2015) • €0.37 bln. for 7 years to promote innovative and experimental projects. • Calls for interest on annual basis. • At least 50.000 inhabitants involved. Urban development network • Direct dialogue between European Commission and cities implementing integrated urban development and innovative actions. • Managed by the European Commission. URBACT continues (URBACT III) • Programme within European Territorial Cooperation programme, all cities can apply.

  6. 11 thematic objectives Research and Innovation Combating climate change Employment and Mobility Information and Commu-nication technologies Environment andresource efficiency Social inclusion Competitiveness of SMEs Sustainable transport Better education, training Low-carbon economy Better publicadministration 1 5 8 2 6 9 3 7 10 4 11

  7. Smart growth Sustainable growth Inclusive growth

  8. Strategic developmentdirectionsEuropa 2020 - targets

  9. Indicators CLEAR Aims and Targets Reporting TRANSPARENT Monitoring Evaluation MEASURABLE Better focus on results Performance reserve 6% funding allocated in 2019 to programmes and priorities which have achieved 85% of their milestones.

  10. Strongerrole for partners in planning & implementation European Code of Conduct on Partnership • A common set of standards to improve consultation, participation and dialogue with partners during the planning, implementation, monitoring and evaluation stages of projects financed by all European Structural and Investment Funds (ESIF). • Partners: public authorities, trade unions, employers and NGOs and bodies responsible for promoting social inclusion, gender equality and non-discrimination.

  11. Necessity of pre-conditions for an effective EU investment Thematic ex ante conditionalities • Linked to the thematic objectives and investment priorities of Cohesion Policy and applied in relation to investments in the specific thematic area: strategic, regulatory and institutional pre-conditions, administrative capacity. General ex ante conditionalities • Linked to horizontal aspects of programme implementation and apply across all ESIF: anti-discrimination policy, gender equality policy.

  12. Objectives of the Economic and Social Cohesion Policy

  13. 2 Objectives Investments for growth and jobs European Territorial Cooperation General Regulation Objectives and instruments 2014-2020

  14. Investments in economic growth (research and innovation, information technologies and communication, SMEs competitiveness, low carbon economies) • Investments in people (employment, better education, social inclusion, competent public administration) • Investments in transport and environment infrastructure Eligibility: - all EU regions Objective ”Investments in growth and jobs” ERDF ESF CF

  15. Objective “European territorial cooperation” Is mend to improve the cross-border cooperation by cumulated local initiatives, that at transnational level are implemented through integrated territorial development actions connected to the community’s priorities, and through creation of networksandexperience exchange at adequate territorial level. ELIGIBILITY Cross-border regions and macro-regions for transnational cooperation ERDF

  16. European Territorial Co-operation (Interreg) 3 strands:Cross-border; Transnational; Interregional. Budget for 2014-20: €10.1bn = 2.9% of Cohesion Policy budget. Over 100 programmes, of which 60 are cross-border.

  17. Transnational Cooperation

  18. Cross-borderCooperation

  19. Macro-regional strategies EU Strategy for Baltic Sea Region; Danube Region; Adriatic & Ionian Region; Alpine Region Maritime Strategy for the Atlantic

  20. Instruments of the Economic and Social Cohesion Policy

  21. General Regulation Objectives and instruments 2014-2020 5 European Structural and Investments Funds (ESIF) • EFRD • ESF • Cohesion Fund • EAFRD • EFFMA

  22. 3 objectives + 4 initiatives – 5 instruments EAFRD EFF ERDF Objective 1 Objective 2 INTERREG URBAN ESF Objective 1 Objective 2 Objective 3 EQUAL EAGGF- Guidance Objective 1 LEADER+ FIFG Objective 1 Fisheries outside Objective 1 CF Transport and Environment Fund X X ERDF Convergence Regional Competitiveness and Employment European Territorial Cooperation ESF Convergence Regional Competitiveness and Employment CF Convergence 3 objectives – 3 instruments STRUCTURAL INSTRUMENTS COMPLEMENTARY INSTRUMENTS • EUROPEAN STRUCTURAL AND • INVESTMENTS FUNDS • EFRD • ESF • CF • EAFRD • EFFMA

  23. Infrastructure, innovation, investments etc. vocational education, support for employment etc. environment and transport infrastructure, renewable energy All member states/regions Member states with GNP/inhab. under 90% Obiectivesand Instruments 2014-2020 Obiectives Instruments ESF CF ERDF Growth and employment ERDF European Territorial Cooperation

  24. ERDF ~Objective 1 The ERDF aims to strengthen economic and social cohesion in the European Union by correcting imbalances between its regions.. ERDF shall support the following activities: (a) productive investment which contributes to creating and safeguarding sustainable jobs, through direct aid for investment in SMEs; (b) productive investment, irrespective of the size of the enterprise concerned, which contributes to the investment priorities set out in the thematic objectives; (c) investment in infrastructure providing basic services to citizens in the areas of energy, environment, transport and ICT; (d) investment in social, health, research, innovation, business and educational infrastructure; (e) investment in the development of endogenous potential through fixed investment in equipment and small-scale infrastructure, including small-scale cultural and sustainable tourism infrastructure, services toenterprises, support to research and innovation bodies and investment in technology and applied research in enterprises; (f) networking, cooperation and exchange of experience between competent regional, local, urban and other public authorities, economic and social partners and relevant bodies representing civil society, studies, preparatory actions and capacity-building.

  25. ERDF ~ Objective2 • the sharing of facilities and human resources, • all types of infrastructure across borders in all regions. • the development of cross-border economic, social and environmental activities through joint strategies for sustainable territorial development; • the establishment and development of transnational cooperation, including bilateral cooperation between maritime regions; • reinforcement of the effectiveness of regional policy by promoting: interregional cooperation focusing on innovation and the knowledge economy and environment and risk prevention; exchanges of experience concerning the identification, transfer and dissemination of best practice including on sustainable urban development and actions involving studies, data collection, and the observation and analysis of development trends

  26. Concentration of investmentson 4 thematic priorities (ERDF) Transitionregions Less developedregions More developed regions 1 60% 15% 50% 80% 2 12% 20% 3 4 • Research and Innovation. • Information and Communication Technology (ICT). • Competitiveness of Small & Medium Sized Entreprises (SME)-greater use of Financial Instruments. • Transition to a low CO2 emissions economy (energy efficiency & renewable energies).

  27. ESF The ESF invests in people, with a focus on improving employment and education opportunities across the European Union. It also aims to improve the situation of the most vulnerable people at risk of poverty • promotes high levels of employment and quality workplaces, • improves access on the market for labor force, • supports geographic and professional mobility of the labor force and facilitates their adaptation to the changes in the industry field, • encourages a high level of education and training for all and supports the transition from education to labor market for young people, • fights poverty, • improves social inclusion and promotes gender equality, non-discrimination and equal opportunities.

  28. ESF thematic concentration 20% of ESF resources in each Member State for social inclusion, fight against poverty and all forms of discrimination. Thematic concentration of each OP on up to 5 investment priorities (out of 19) for employment/mobility, education/training, social inclusion & institutional capacity. Transitionregions Less developedregions More developed regions 70% 60% 80%

  29. Youth Employment Initative (YEI) A budget of€ 6.4 billion for 2014-2015. In regions with a youth unemployment rate above 25%. Target group: Individuals "NEETs" aged below 25, or optionally below 30: inactive or unemployed (+long-term); registered or not as jobseekers; residing in the eligible regions. Adoption of Operational Programmes including YEI.

  30. ~ Cohesion fund~ The Cohesion Fund is aimed at Member States whose Gross National Income (GNI) per inhabitant is less than 90 % of the EU average. It aims to reduce economic and social disparities and to promote sustainable development. • The Cohesion Fund allocates a total of € 63.4 billion to activities under the following categories: • trans-European transport networks, notably priority projects of European interest as identified by the EU. The Cohesion Fund will support infrastructure projects under the Connecting Europe Facility; • environment: here, the Cohesion Fund can also support projects related to energy or transport, as long as they clearly benefit the environment in terms of energy efficiency, use of renewable energy, developing rail transport, supporting intermodality, strengthening public transport, etc.

  31. ~ EARDF ~ • contributes to the promotion of sustainable rural development throughout the Community in a complementary manner to the market and income support policies of the common agricultural policy, to cohesion policy and to the common fisheries policy. • Objectives of EARDF: • improving the competitiveness of agriculture and forestry by supporting restructuring, development and innovation; • improving the environment and the countryside by supporting land management; • improving the quality of life in rural areas and encouraging diversification of economic activity. • three thematic axis: • Improving the competitiveness of the agricultural and forestry sector; • Improving the environment and the countryside; • The quality of life in rural areas and diversification of the rural economy. • „Leader” axis – based on the experience gained in the LEADER Community initiatives - „bottom-up” local approaches of the rural development issues (using Local Action Groups).

  32. ~ EFFMA ~ • Supports sustainable economic, social and environment development by reducing the efforts in fishery field and protecting maritime environment. • objectives – facilitating the implementation of Fishery Common Policy and diversification of the activities in the fishery communities • five priority axis: • Adapting the Community fishery fleet • Acvaculture, internal fishery, processing and marketing • Common interest measures • Sustainable development of fishery areas • Technical assistance

  33. EU and Solidarity Fund European Union Solidarity Fund (EUSF) established in 2002 following severe flooding in Central Europe. Financial aid for reconstruction. To cope with major natural disasters and express EU solidarity towards devastated areas. EUSF intervention so far in 70 cases of natural disasters (forest fires, earthquakes, storms, drought, floods). 24 European countries have benefitted so far from over € 3.7 billion in aid.

  34. Community Initiatives

  35. Communityinitiatives – special supportinstrumentsJASPERS – JEREMIE – JESSICA - JASMINE • JASPERS:Joint Assistance to Support Projects in European Regions, is a technical assistance facility for the twelve EU countries which joined the EU in 2004 and 2007. It provides the Member States concerned with the support they need to prepare high quality major projects, which will be co-financed by EU funds. • JEREMIE:Joint European Resources for Micro to Medium Enterprises, is an initiative of the European Commission developed together with the European Investment Fund. It promotes the use of financial engineering instruments to improve access to finance for SMEs via Structural Funds interventions. • JESSICA: Joint European Support for Sustainable Investment in City Areas, is an initiative of the European Commission developed in co-operation with the European Investment Bank (EIB) and the Council of Europe Development Bank (CEB). It supports sustainable urban development and regeneration through financial engineering mechanisms. • JASMINE: Joint Action to Support Micro-finance Institutions in Europe, aims at providing both technical assistance and financial support to non-bank micro-credit providers and to help them to improve the quality of their operations, to expand and to become sustainable. JASMINE seeks also to promote good practices in the field of microcredit and to draft a code of good conduct for micro-credit institutions

  36. Cooperation programmes • INTERREG EUROPE Territorial Cooperation Programme (http://https://www.interregeurope.eu/) – promotes cross-border, transnational and interregional cooperation • ESPON 2020Interregional Cooperation Programme– studies and researches in the field of spatial development (http://www.espon.eu) • INTERACT III Territorial Cooperation Programme (http://www.interact-eu.net) – supports territorial cooperation among EU regions • URBACT IIIInterregional Cooperation Programme– cooperation among the EU cities (http://urbact.eu)

  37. EU Cohesion Policy 2014-2020: 1/3 of the EU budget The reforms agreed for the 2014-2020 period are designed to maximise the impact of the available EU funding. GROWTH OVERALL EU 2014-2020 BUDGET €1 082 billion 67.5% 32.5% Other EU policies Agruculture Research External Etc. COHESION POLICY €351.8 billion Sustainable Smart Inclusive €730.2 billion Cohesion Policy delivers Europe 2020 Strategy

  38. 3 funds to invest in growth and jobs COHESION POLICY FUNDING DELIVERED THROUGH 3 FUNDS EUROPEAN REGIONAL DEVELOPMENT FUND EUROPEAN SOCIAL FUND COHESION FUND EXPECTED PUBLIC & PRIVATE NATIONAL CONTRIBUTIONS € 351.8bn COHESION POLICY FUNDING LIKELY IMPACT OF COHESION POLICY € 500bn +

  39. Investing in all EU regions ALL EU REGIONS BENEFIT € 182 billion for less developed regions GDP < 75% of EU-27 average 27% ofEU pop. LEVEL OF INVESTMENT €35bn ADAPTED TO for transition regions GDP 75-90% of EU-27 average LEVEL OF DEVELOPMENT 12% ofEU pop. €54bn for more developed regions GDP > 90% of EU-27 average 61% ofEU pop. 50.5% 9.9% 15.1%

  40. Cohesion Policy Funding 2014-2020 (€ 351.8 bn) € 182.2 bn € 35.4 bn € 54.3bn € 10.2 bn € 0.4 bn € 3.2 bn € 63.3 bn € 1.6 bn € 1.2 bn Less developed regions Transition regions More developed regions European territorial cooperation Urban innovation actions Youth employement initiative (top-up) Cohesion fund Specific allocation for outermost and sparsely populated regions Technical assistance

  41. Budget allocations per Member State (2014-2020)

  42. Thanks to Cohesion Policy… So far, in the period 2007-2013: 600.000 jobs created – at least 1/3 in SMEs. 200.000 SMEs supported. 1.800 km of new or reconstructed railways. 25.000 km of new or reconstructed roads. Broadband access for 5 million citizens. Access to clean drinking water for 3 million citizens. ESF: 15 million participants per year. 940 financial instruments in 25 Member States raising €8.36 bn. funding for equity, loans and guarantees.

  43. Thanks to Cohesion Policy… and ESI Funds: Expectedresults for the 2014-2020 period: €454 billion from the EU budget invested through 535 programmes (€637 billion with national co-financing). 2 million companies will be directly supported 15 million households will have access to high-speed broadband thanks to ERDF Decrease of estimated annual greenhouse gas emissions of around 30 million tons of CO2 €120 billion will be allocated to employment, social inclusion, education and training

  44. OPEN DATA Portal Online funding information on financing and expected achievements under the ESI Funds 2014-2020. Possibility to explore planned investment data at EU level, at Member State level, by theme or by fund. Data sets can be visualised, embedded in other sites or downloaded for analysis. https://cohesiondata.ec.europa.eu/

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