European Union Regional, Urban and Cooperation Policy: aims, methods and reform

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1 Regional European Union Regional, Urban and Cooperation : aims, methods and reform Ronald Hall Principal Advisor, International Relations Directorate General for Regional and Urban European Commission kyiv 11 July 1

2 700 staff in total Director General Walter Deffaa Deputy Director General Nicholas Martyn Deputy Director General Normunds Popens 1 Chief Adviser 3 directorates addressing budgetary, audit and policy 5 directorates dealing with implementation in the Member States 5 units: Budgets, outermost regions 4 units: and research, territorial development, evaluation, legal affairs 4 units: Audit 23 units: programme management in 27 Member States and accession States Regional 2

3 Regional : A new policy framework

4 Budget ("MFF"), COMPARISON MFF / Billion in 2011 prices Difference (in %) 1. Smart and Inclusive Growth % Of which Cohesion % Of which infrastructure (Connecting Europe Facility) % Of which Competitiveness (CSF research & innovation; Education; Galileo etc) % 2. Sustainable Growth: natural resources % Of which Market related expenditure and direct payments in agriculture % 3. Security and Citizenship % 4. Global Europe % 5. Administration (including pensions and European schools) % 6. Compensations Total commitment appropriations % In % of EU-27 GNI Regional 1.12% 1.00%

5 Public expenditure in the EU in 2011 (% de PIB)

6 The internal policies,

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8 Cohesion policy,

9 : implementing the three principles of the EU regional and cooperation policy model Regional 9

10 Concentration of resources on the least prosperous regions Regional 10

11 Concentration on the poorest regions: today's policy targets less developed regions, whose GDP per capita is less than 75 % of the average GDP of the EU; transition regions, whose GDP per capita is between 75 % and 90 % of the average GDP of the EU; more developed regions, whose GDP per capita is above 90 % of the average GDP of the EU; border regions Regional 11

12 Regional policy: financial outcome by priority area Type of región % Population EU % Of resources (ERDF, ESF, CF ex ETC, YEI) Intensity of aid (EUR per capita p.a.) est. Less developed regions Regions in transition More developed regions 24 52, ,5 10, ,5 15,6 22 Regional polícy ,5 - Cohesion Fund (national) 25,8 18,2 62 Regional

13 The map of regional aid support, Regional 13

14 The map of regional aid support, Convergence objective (Regions > 75% in EU25) Convergence objective statistically affected regions Objective 'Regional Competitiveness and Employment' Phasing-in regions, "naturally" above 75% Objective 'Regional Competitiveness and Employment' Index EU 25 = 100 Source: Eurostat Regional 14

15 with a key role for cities in the programmes (7% live in agglomerations over 5 million) Regional

16 Regional Territorial cohesion through cooperation A key objective of the EU: achieving economic, social and territorial cohesion Cooperation has three strands: Cross-border: collaboration between two or more adjacent local and regional entities situated in different but neighbouring states (75% of resources) Inter-regional: collaboration between non-adjacent local and regional authorities (5%) Transnational: multi-lateral cooperation is linked to a specific geographic area aiming at an integrated and jointly planned spatial development (20%)

17 Regional Innovative forms of finance Support non-grant instruments (as well as grants where appropriate) such as: loans, secured debt financing for subordinate debt risk capital (seed and venture capital)

18 Regional Innovative forms of finance Use grants to build and maintain infrastructures facilitating access to finance, such as: technology transfer offices incubators business angels networks investment readiness programmes Guarantee and mutual guarantee mechanisms: SME micro credit Outreach to specific groups (young, female, ethnic)

19 Promoting best practice in managing public resources A managing authority (a national, regional or local public authority or public/private body to oversee the operational programme, and a monitoring committee to run it); A certification body (a national, regional or local public authority or body to certify the statement of expenditure and the payment applications before their transmission to the Commission); An auditing body (a national, regional or local public authority or body for each operational programme to enure sound and efficient financial management Regional 19

20 Promoting the evaluation culture/results orientation (some results from ) Regional 20

21 Regional Reinforcing conditionalities : earmarking Earmarking resources: In the poorest regions: 50% of resources transferred for energy efficiency, renewable energy, innovation, SMEs In the other regions: 80% for these priorities, of which minimum 20% for energy efficiency

22 Regional Reinforcing conditionalities : thematic conditions Not a new concept but applied in the past essentially to general themes derived from EU Directives, regulations and rules and policy priorities (equality of opportunity, sustainable development, etc) Post 2014: more specific, ex-ante conditionalities covering EU priority areas.

23 Reinforcing conditionalities : thematic conditions.example: Research and Innovation Ex-ante conditionality: Before approval of the programme, a national or regional research and innovation strategy for smart specialisation is required in line with the EUR2020 strategy. Should also indicate how private research and innovation expenditure will be attracted Proposals will be examined in the light of the following criteria: The national or regional research and innovation strategy for smart specialisation should include: a SWOT analysis to concentrate resources on a limited set of research and innovation priorities; A description of measures to stimulate private RTD investment; a monitoring and review system. Regional

24 Following international cooperation in EU regional policy General: International cooperation: nal/index_en.cfm Regional 24