Cohesion Policy

EU Cohesion Policy2014 – 2020Proposals from the European Commission

│ 2

Structure of the presentation

1. What is the impact of EU cohesion policy?

2. Why is the Commission proposing changes for 2014-2020?

3. What are the main changes?

4. How will the funding be allocated?

5. When will the changes come into effect?

6. Where can I find further information?

Cohesion Policy

1. What is the impact of EU Cohesion Policy?

│ 4

EU Cohesion Policy invests in …

Transport

Renewableenergy

Researchand innovation

Training

Cooperationbetween regions

Energy efficiency

Supportfor SMEs

│ 5

Results of EU Cohesion Policy(figures from 2000-2006 period)

8400 km of rail built or improved

5100 km of road built or improved

Access to clean drinking water for 20 million more people

Training for 10 million people each year

Over 1 million jobs created

GDP/capita up 5 % in newer Member States

│ 6

Yet gaps between regions remain

Average2006 ‒ 2007 ‒ 2008► Closing these gaps remains a key objective

GDP/capita*

*index EU27=100

< 50 75-90 100-125

50-75 90-100 > 125

Regional GDP figures: 2006-07-08© EuroGeographics Association for the administrative boundaries

Canarias

Guyane

Réunion

Guadeloupe/Martinique

Madeira

Açores

Malta

│ 6

Cohesion Policy

2. Why is the Commission proposing changes for 2014-2020?

│ 8

Objectives

Deliver the Europe 2020 strategy objectives

of smart, sustainable and inclusive growth

Focus on results

Maximise the impact of EU funding

│ 9

Proposed EU budget 2014-2020

“Ambitious but realistic” proposals issued by the Commissionin June 2011 for the Multiannual Financial Framework (MFF) 2014-2020

Cohesion Policy

33 % (€336 billion)

ConnectingEurope Facility

4 % (€40 billion)

Other policies

(agriculture, research, external etc.)

63 % (€649 billion)

Cohesion Policy

3. What are the main changes?

│ 11

Reinforcing effectiveness and performance

Focus on results• Common & programme-specific indicators, reporting, monitoring &

evaluation

Performance framework for all programmes• Clear and measurable milestones and targets

Performance reserve• 5 % of national allocations (by Member State, fund and category of

region)

Ex-ante conditionality• Ensuring conditions for effective investment are in place

Macro-economic conditionality• Alignment with new economic governance

│ 12

More coherent use of available EU funds

• Comprehensive investment strategy: aligned with Europe 2020 objectives

• Coherence with National Reform Programmes• Coordination: cohesion policy, rural development, maritime &

fisheries funds• Objectives and indicators to measure progress towards Europe

2020 targets• Effectiveness: introduction of a performance framework• Efficiency: reinforcement of administrative capacity, cutting red tape

Operational Programmes

PartnershipContract

Common Strategic Framework

│ 13

A menu of thematic objectives

• Research & innovation• Information and communication technologies (ICT)• Competitiveness of Small and Medium-sized Enterprises (SMEs) • Shift towards a low-carbon economy• Climate change adaptation & risk prevention and management• Environmental protection & resource efficiency• Sustainable transport & removing bottlenecks in key network

infrastructures• Employment & supporting labour mobility• Social inclusion & combating poverty• Education, skills & lifelong learning• Institutional capacity building & efficient public administrations

│ 14

Less developed regionsMore developed &transitional regions

60% 20%

6%

44%

Concentrating resources to maximise impact

Flexibility – different regions have different needsSpecial arrangements for ex-convergence regions

Research & innovationEnergy efficiency & renewable energy Competitiveness of SMEs

Concentration of ERDF investments

│ 15

European Social Fund (ESF)

25%22%

Share of ESF within Cohesion Policy budget

2014-20202007-2013

Of total Structural Fund support (ERDF & ESF), ESF will represent:

• 25 % in less developed regions

• 40 % in transition regions

• 52 % in more developed regions

│ 16

European Social Fund (ESF)

Fully in line with the Europe 2020 strategy• Promoting employment & supporting labour mobility• Investing in education, skills & life-long learning• Promoting social inclusion & combating poverty • Enhancing institutional capacity & efficient public administration

Reinforced social dimension• 20 % of ESF allocations for social inclusion• Greater emphasis on fighting youth unemployment• Mainstreaming & specific support for gender equality &

non-discrimination

│ 17

Cohesion Fund

Supports Member States with GNI/capita < 90 % of EU27 average

Investing in environment• Climate change adaptation and risk prevention• Water and waste sectors• Biodiversity including through green infrastructures• Urban environment• Low carbon economy

Investing in transport• Trans-European Transport Networks (TEN-T)• Low-carbon transport systems and urban transport

│ 18

Simplification

Common rules - funds covered by Common Strategic Framework• Cohesion Policy, rural development and maritime & fisheries policy

Option of multi-fund programmes• ERDF, ESF and Cohesion Fund

Streamlined delivery system• Harmonised rules on eligibility and durability • Greater use of simplified costs• Linking payments with results• e-Cohesion: “one stop shop” for beneficiaries• Proportional approach to control

│ 19

Reinforcing Territorial Cohesion

Focus on sustainable urban development• At least 5 % of ERDF resources

Creation of urban development platform• Networking between cities and exchanges on urban policy

Innovative actions for sustainable urban development• Subject to a ceiling of 0.2 % of the annual funding

Areas with specific natural or demographic features• Additional allocation for outermost & sparsely populated regions

│ 20

An investment-oriented policy

Promoting the use of innovative financing instruments• Extending scope to all areas of investment• Clearer regulatory framework• 10 % bonus for innovative financing instruments & community-led

development• A range of options offering flexibility to programme managers

Maximum co-financing rates• 75-85 % in less developed and outermost regions• 60 % in transition regions • 50 % in more developed regions

│ 21

Management and control

Financial management

• New system of annual accounts

• Annual management declaration

• Annual clearance of accounts by the Commission

Management and control systems

• National accreditation (greater responsibility for Member States)

• Managing Authorities may act as Certifying Authorities

• Commission can review accreditation (taking into account risks & track record)

Greater proportionality

• Exemptions for low volume programmes

• Exemptions for systems that have delivered consistently good results

• Limitations on frequency of Commission audits on individual operations

Cohesion Policy

4. How will the funds be allocated?

│ 24

A fair system for all EU regions(eligibility simulation)

3 categoriesof regions

< 75 % of EU averageGDP/capita*

*index EU27=100

75-90 % > 90 %

Canarias

Guyane

Réunion

Guadeloupe/Martinique

Madeira

Açores

Malta

Less developed regions

Transition regions

More developed regions

Regional GDP figures: 2006-07-08© EuroGeographics Association for the administrative boundaries

│ 24

│ 25

How will funding be allocated?

68,7%

11,6%

15,8%

0

10

20

30

40

50

60

70

80

90

100

119,2

72,4

307.1

0

50

100

150

200

250

300

350

400

450

500

Budget allocation (in %)

Population covered(in millions)

Less developed regions/MS Transition regions More developed regions

Cohesion Fund¹ 68.7

Less developed regions 162.6

Transition regions 38.9

More developed regions 53.1

European Territorial Cooperation

11.7

Outermost regions and sparsely populated areas

0.9

Total 336.0

¹ €10 billion from the Cohesion Fund will be allocated to the Connecting Europe Facility

Cohesion Policy

5. When will these changescome into effect?

│ 27

Timeline

2014Nov.2010

2012 – 2013

5th Reporton Economic,

Social andTerritorial

Cohesion & public

consultation

Agreement on MFF and adoption of

new legislativepackage

Entry intoforce and adoption of

programmes

March2012

CommonStrategic

Framework

Oct.2011

Proposals for Cohesion

Policy2014-2020

June2011

Proposal by theCommission for

a MultiannualFinancial

Framework(MFF)

March2010

Adoption of Europe 2020

Strategy

│ 28

Where can I find further information?

Follow@EU_Regional on Twitter

www.inforegio.europa.eu