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The Lisbon strategy for growth and jobs and EU

regional policy

DG REGIO

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Title

• INNOVATION INNOVATION PERFORMANCEPERFORMANCE

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EU regional policy 2007-13 – EU regional policy 2007-13 – based on:based on:

1. A concentration of resources on the least prosperous regions

2. A concentration of the effort on the Lisbon agenda

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1. Concentration on the 1. Concentration on the regions: policy targetsregions: policy targets

• Over ¼ of population lives in Over ¼ of population lives in regions below 75% of EU average regions below 75% of EU average GDPGDP

• 14 Member States have GDP below 14 Member States have GDP below 90% of average (34% of population)90% of average (34% of population)

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1. Concentration on the regions: 1. Concentration on the regions: basic principles of EU Regional basic principles of EU Regional

PolicyPolicy

• Regional approach – 268 (NUTS 2) Regional approach – 268 (NUTS 2) regionsregions>> average: ca. 16 000 km sq. – average: ca. 16 000 km sq. – 1.8 1.8 million populationmillion population

• NotNot income transfers – support for income transfers – support for programmesprogrammes

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1. Concentration on the regions: 1. Concentration on the regions: basic principles of EU Regional basic principles of EU Regional

PolicyPolicy• Concentration of EU budgetary Concentration of EU budgetary

resourcesresources

– 81.5% Convergence regions (32% of 81.5% Convergence regions (32% of population); up from 69% population); up from 69%

– 16.0% Competitiveness regions16.0% Competitiveness regions– 2.5% Territorial co-operation2.5% Territorial co-operation

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• Geographical Eligibility for Structural Funds Support 2007-2013

Objective 'RegionalCompetitiveness and Employment'

Convergence objective(Regions > 75% in EU25)

Geographical Eligibility for Structural Funds Support 2007-2013

Objective 'RegionalCompetitiveness and Employment'Phasing-in regions, "naturally" above 75%

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2. Concentration on the Lisbon 2. Concentration on the Lisbon agenda: what is the Lisbon agenda: what is the Lisbon

agenda?agenda?

1. Originally adopted in March 2000 (Gothenburg update in 2001)

2. Aims to make Europe the most competitive and dynamic economy in the world…

3. Updated in 2005 : the growth and jobs agenda

4. Two quantitative targets: employment rate of 70% by 2010, R&D 3% of GDP…

5. Since 2005, reinforced governance: detailed annual reporting; peer pressure

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2. Concentration on the Lisbon 2. Concentration on the Lisbon agenda: processagenda: process

Community Strategic Guidelines

National Strategies (NSRFs)

National and Regional programmes

Integrated Guidelines

National Reform Programmes

Annual Progress Report

• COHESION POLICY • LISBON AGENDA

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2. Concentration on the Lisbon 2. Concentration on the Lisbon agenda: substance (CSG)agenda: substance (CSG)

1. Making Europe and its regions a more attractive place to invest and work:

a. expand and improve transport infrastructures

b. improve the environmental contribution to growth and jobs

c. address the intensive use of traditional energy sources

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2. Concentration on the Lisbon 2. Concentration on the Lisbon agenda: substance (CSG)agenda: substance (CSG)

2. Knowledge and innovation for growth:

a. increase and improve investment in RTD

b. facilitate innovation and promote entrepreneurship

c. promote the information society for all

d. improve access to finance

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2. Concentration on the Lisbon 2. Concentration on the Lisbon agenda: substance (CSG)agenda: substance (CSG)

3. More and better jobs

a. attract and retain more people in employment and modernise social protection systems

b. improve adaptability of workers and enterprises and the flexibility of the labour market

c. increase investment in human capital through better education and skills

d. administrative capacity

e. health and the labour force

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2. Concentration on the Lisbon 2. Concentration on the Lisbon agenda: new instrumentsagenda: new instruments

• Closer co-operation with International Financial Institutions (IFIs):

– JASPERS: a new technical assistance/evaluation partnership with EIB and EBRD for large projects

– JEREMIE: finance for business development for micro to medium enterprises through European Investment Fund. Loans for the first time.

– JESSICA: financial engineering for sustainable urban development with EIB, CEB and other IFIs

• And to develop better cooperation between regions

– European Grouping of Territorial Cooperation: legal basis to implement joint programmes

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A policy that works: GDP trends A policy that works: GDP trends in the regions?in the regions?

• All EU15 Objective 1 regions: GDP per head up from 63% to 70% of EU15 average

– gap relative to EU15 reduced by one sixth 1988-2001.

• Ireland: GDP 64% of EU15 average in 1988 and 121% in 2003. Growth of 8% per year since 1995

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A policy that works: impact A policy that works: impact assessmentassessment

Increase in GDP levels attributable to regional policy:

• 1989-1999:– 10.0% in Greece and 8.5% in Portugal– 3.7% in Ireland and 3.1% in Spain

• 2000-2006:– 6.0% for Greece and Portugal– 4.0% in German Länder and 2.4% in Spain

• 2007-2013: preliminary estimates suggest:– 8.0% for Lithuania, Czech Republic and Slovakia– 6.0% for Bulgaria, Poland and Romania– 3.0% in Greece and 1.5% in Spain, German Länder and

Mezzogiorno

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A policy that works: other A policy that works: other impactsimpacts

• Internal market: trade between cohesion countries and rest of EU doubled in last decade (¼ of Objective 1 expenditures return as imports – particularly in Greece – 42% - and Portugal – 35%)

• €43 billion of Cohesion funding invested in transport in Objective 1 regions in the period 2000-2006

Motorway growth in Cohesion countries (km/ surface area)

1995 1999 2001 2004Greece 3,2 3,4 5,6 9,0Spain 13,8 17,6 19,0 20,4Portugal 21,2 44,5 51,2 61,7I reland 1,0 1,5 1,8 2,7EUR 15 13,8 15,7 16,7 18,8

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OutlookOutlook

• Reform Treaty before EP elections in 2009

• Budgetary review for post-2013: 2008-09