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Introduction to the Structural Funds

2007-13

DG REGIO – Unit B.1 - Coordination

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Part 1:The context

• Regional disparities in development in EU27

GDP per head in % and in purchasing power parities EU27 average in 2003

<50

50 - 75

75 - 90

90 - 100

100 - 125

125

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Part 1: The context

• Regional disparities

– 10% of EU27 population living in the most prosperous regions (19% of total EU-27 GDP)

– 1.5% of GDP for the 10% of population living in the least wealthy regions

– Convergence regions: 12.5% total share in EU27 GDP with 35% population share

– several regions in Romania and Bulgaria with GDP per head below 25% of the EU average GDP

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Part 2: The legal basis

• The Treaty

– Article 2 EC TREATY "promote economic and social progress as well as a high level of employment, and to achieve balanced and sustainable development"

– (Art. 158 of the Treaty ): "in particular, the Community aims to reduce the disparities between the levels of development of the different regions and the backwardness of the least favoured regions or islands, including rural areas"

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Part 2: The legal basis• Structural Funds legislation

– “General Regulation n°1083/2006

– Regulations for each Fund :

• “ERDF Regulation” n°1080/2006

• “ESF Regulation” n° 1081/2006

• “Cohesion Fund Regulation” n° 1084/2006

– Commission Implementing regulation n° 1828/2006

– (IPA Regulation n° 1085/2006, EGTC Regulation n°

1082/2006)

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Part 3: The method• Objectives, Structural Funds and

instruments 2007-2013

ERDF ESFESFCohesion

FundConvergence

Regional Competitiveness and Employment

European territorial Cooperation

ERDF

ERDF

ESFESF

Objectives Structural Funds and instruments

infrastructure, innovation,investments

etc.

vocational training,

employmentaids etc.

MemberStates with aGNI/head below 90%

environmental and transport infra-

structure, renewable energy

all Member States and regions

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Part 3: The method2000-06

• Financial instruments:– the 4 Structural Funds

(ERDF, ESF, EAGGF, FIFG)

– Cohesion Fund, ISPA– the EIB

• The priorities : – Objectives 1, 2 et 3– Community initiatives – Innovative Actions

2007-2013

• Financial instruments:– the 2 Structural Funds

(ERDF, ESF) – Cohesion Fund, IPA– the EIB

• The priorities : – 3 Objectives:

1) Convergence, 2) Regional Competitiveness and Employment (RCE), 3) Territorial Co-operation

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Structural funds allocation by type of region 2007-13

Convergence: €199.3 bn.

Phasing out: €13.9 bn.

Phasing in: €11.4 bn.

Competitiveness: €4.5 bn.

Cooperation: €7.8 bn.

Cohesion Fund: €69.6 bn.

Total: €347.4 billion

in current prices

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European Territorial Cooperation 2007-2013

Allocation: €7.75 bn. for cross-border,

transnational and interregional cooperation

Cross-border areas

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Part 3: The method

• The principles

– Multi-annual programming– Concentration of financial resources– Partnership - shared responsabilities:

Commission - Member State – regions – other partners

– Additionnality – EU resources are additional to the national effort – no replacement

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Part 3: The methodThe main tools and principles

Programme cycle

3. Day-to-day management

5. Monitoring/ Reporting

4. Project execution

1. National / Regional Plan[6. Evaluation]

2. Specific EU Programme

National RoleMixed Roles

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Part 4: The results

• Results of EU cohesion policy

– Strengthening of economic integration– Process effects – governance – EU's link with the citizen - publicity

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Part 4: The results

Strengthening of economic integration (1) (results from the 2000-06 period)

• Spending in transport infrastructure - 47% of SF and CF resources)

Example: ES and PT: road density higher than EU average • Increased focus on sustainability (fast speed trains, tramway

systems, metro in Athens)• Spending on environment - 63% of SF and CF resources,

mainly cohesion MS and Objective 1 regions to help comply with EU legislation

• Growing focus on renewable energy (PT specific programme)

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Part 4: The results

Strengthening of economic integration (2) (results from the

2000-06 period)

• SF investment in R&D - from 5% in ES to 18% in LTExample: in Catalonia 21% of region’s researches

and 37% of private sector investment involved in the OP

• Public-private partnerships in R&D strong in 7 MS (AT, DK, FI, DE, NL, SE, UK)

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Part 4: The results - governance

Contribution to Better Governance

• Multi-annual programming – strategic approach, stability and sharing of risk, Improves capacity for expenditure in general

• Additionality and leverage effects

• Partnership – better targeting of interventions and stimulation of development projects -institutions matter in development

• Exchange of experience and good practice

• Management, monitoring and evaluation

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Part 4: The results - visibility

Visibility of Community action

• EU more visible to citizens

• Catalyst for new initiatives

• "PEACE" – an important contribution from the EU to peace and stability in Northern Ireland, UK

• Solidarity Fund – solidarity with regions affected by natural catastrophes (e.g., floods in Eastern Germany and Czech Republic, fires in Portugal).

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Part 5: Expected impact

Expected impact of cohesion policy*

• 5-15% higher GDP in 2020 than without cohesion policy in most new MS

• 2 million new jobs by 2015 in convergence regions• Decrease of unemployment by 20-30%• Positive effects multiplied by sound national policies

(Ireland, Baltic states)• Overall positive effects on the whole EU-27 in a long

term

* source: the fourth cohesion report (May 2007)

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Further information

http://ec.europa.eu/regional_policy/index_en.htm