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REGIONS 2020

Regional Responses to European Priorities

Wolfgang MunchEuropean Commission

DG REGIO

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Regions 2020 structure

• The policy context: from challenges to priorities

• Regions 2020 revisited• Policy Lessons

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The policy context: from challenges to priorities

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Context of the Regions 2020 discussion

• Budget review has marked the previous discussions.

• Europe 2020 Agenda: A new lead strategy for the EU

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European Priorities responding to global challengesEuropean

priorities: • smart growth

– skills, education, innovation

• inclusive growth– skills, jobs,

flexicurity

• sustainable growth– productivity, green

growth, low carbon economy

Corresponding challenges

• globalisation, social polarisation, demographic change

• globalisation, climate change, energy

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Regions 2020 revisited

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Globalisation

• Regions of North-West periphery well placed;

• Southern and Eastern regions more exposed;

• Mixed patterns in Western and Central Europe;

• Urban areas better placed.

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Absorption, diffusion and accessibilitytop performing regions:

•Pink: Metropolitan knowledge-intensive services regions

•Light blue: High-tech regions

many regions with mixed performance

low performing regions:

•Dark blue: Traditional Mediterranean Europe

Knowledge base for growth: InnovationSourc

e:

ETEPS

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Globalisation

• UK, Ireland, the Baltic's see worsening perspectives;

• improved position in Western and Central Europe

Source: ISMERI

Effects of the economic crisis (first results)

Diminished growth perspectives

The economic crisis

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Demographic change and social inclusion

• 33 % of regions will face population decline

• Highest share of elderly population (aged 65+) in Eastern Germany, Finland, Northern Spain, Italy

• low healthy life expectancy in Fin, most new Member States

• High share of foreign born in cities

Aging and Migration

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The neighbourhood and migration: Strong push and pull factors in the south, diminishing push factors in the East

Aging and Migration

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Climate change

• Southern Europe most vulnerable;

• 170 million people live in strongly affected regions;

• North and Western regions less affected, except lowland coastal areas.

Adaptation to Climate Change

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Energy

• determined by national energy policy choices;

• Eastern and southern periphery more affected by security of supply.

• Ireland, Poland, Czech Republic and Bulgaria face strong challenges (carbon intensity and security)

Low carbon economy

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Key Lessons: 1. Asymmetric impacts result in regional disparities.

2. Challenges create opportunities and vulnerabilities.

3. Regions will be affected by a number of challenges.

4. Strong differences in social, economic and environmental impact.

5. Challenges affect rich and poor regions alike.

6. Challenges don’t stop at borders (neighbourhood).

7. The crisis affects a number of drivers.

8. Cities are most impacted in terms of human systems but host many opportunities

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Lessons for the future Regional Policy• Need for continued support for all European Regions to drive forward regions to

focus on the promotion of new approaches, re-orientate private and public investments.

• Integrated solutions will be key for adapted responses.

• Mobilisation of territorial potentials.

• Cohesion Policy is crucial for achieving future objectives of the Europe 2020 Agenda.

– smart growth

– inclusive growth

– sustainable growth

• multilevel governance helps translating priorities into ownership and projects