Page 1

EU Cohesion Policy 2014 – 2020 Preparation in Croatia

Sabine Germe, EC REGIO E4 20 September 2013 Sabine.germe@ec.europa.eu Cohesion Policy


Main points of the presentation

1. What is the EU cohesion policy? 2. The main principles 3. Main changes in 2014-20 4. Preparation in Croatia 5. Key success factors


Main points of the presentation

1. What is the EU cohesion policy? 2. The main principles 3. Main changes in 2014-20 4. Preparation in Croatia 5. Key success factors


Solidarity & boosting growth and jobs • Concentration of resources on least prosperous regions: solidarity between rich/poorer regions  Regions with GDP per head below 75% of EU average: over ¼ of population (2007-2013 figures)  Member States with GDP per head below 90% of average: 13 MS with 25% of population (2007-2013 period)

• Concentration of the effort on competitiveness and growth (EU 2020 targets) in all regions (rich and poor, in a different intensity)

4

 Member States must ‘earmark’ resources on such strategic investments (€230 billion now targeted on Lisbon priorities) (2007-2013 period)


Different categories of regions GDP/capita*

< 75 % of EU average

75-90 %

> 90 %

*index EU27=100

3 categories of regions Less developed regions Transition regions More developed regions

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

2024-2020: less developed regions, transition regions and more developed regions │5

   

Canarias

  

Madeira

Guyane Réunion Guadeloupe/ Martinique

Açores Malta


How are the funds allocated (2007-2013)? Less developed regions/MS

Cohesion Fund¹ Less developed regions

Transition regions

68.7

100

162.6 90

Transition regions

38.9 80

More developed regions

53.1 70 11.7 60

European Territorial Cooperation Outermost regions and sparsely populated areas

Total

336.0

40

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

500 450 400 350

307.1

300 250 68,7 %

200 150

20

100

10

50

0

6

11,6 %

0.9 50

30

15,8 %

More developed regions

Budget allocation (in %)

0

72,4

119,2

Population covered (in millions)


A set of five investment funds • •

European Regional Development Fund • and Cohesion Fund (€201 + 70 billion)

• •

European Social Fund (€76 billion)

Employment

Human capital

Environment

Transport

• • • •

• • • •

Research/Innovation

Information society • Social infrastructure• Energy •

Tourism •European Culture Institutional capacity •European

Adaptability of workers and firms Social inclusion Capacity building Technical assistance

Maritime and Fisheries Fund

Agricultural Fund for rural development


Main points of the presentation

1. What is the EU cohesion policy? 2. The main principles 3. Main changes in 2014-20 4. Preparation in Croatia 5. Key success factors


Multi-annual and strategic programming It funds multi-annual national programmes aligned on EU priorities and on national/regional strategies (National reform programme, innovation strategy, sectoral strategiesG) Commit EU & national public resources for 10 years: financial stability and visibility for investments and reforms! Concentration, focusing of investment Intergovernmental cooperation & coordination Coordination between the funds and with other policies Clear objectives for the country for 10 years.


Effective and efficient management • At national level (not by EC!!), at appropriate territorial level. Respect of institutional, legal and financial framework of the Member State (subsidiarity) • Sound financial management • Reduction of administrative burden • Lever for other financial support (private & public funds); financial engineering (not only grants!) • Ensure compliance with Union and national law (tender, state aid, environmental impact...) • Promotion of equality between men and women and non-discrimination & sustainable development • Effective monitoring and evaluation. Benchmark at EU level • Transparency (accountability: tax-payer money!!)


Partnership • Regional/local authorities, socio-economic stakeholders, civil society. • Programming, management , monitoring phases WHY? • ensure that action is adapted to local and regional needs and priorities. • More legitimacy to the decision-making process. • Wider range of expertise and knowledge. Innovation = often local-based! • Collective commitment and ownership • Development of project preparation/management capacity at sector/territorial levels • European Code of Conduct (2014-20)


Additionality • EU funds should not replace national spending ; ensure that the EU funds have an added value. • Agreement on the level of eligible public (or equivalent) spending to be maintained throughout the programming period. Average annual spending in real terms should not be less than in the previous programming period. Checks. • Not “business as usual”, but strengthen the growth potential and competitive advantage of the country and the regions (see the smart specialisation)


Main points of the presentation

1. What is the EU cohesion policy? 2. The main principles 3. Main changes in 2014-20 4. Preparation in Croatia 5. Key success factors


Target on competitiveness, environment, jobs & social inclusion (EU 2020 strategy) At least 50/60/80% of ERDF resources to energy, RDI, ICT, SMEs. At least 12/15/20% of ERDF to low carbon economy. ESF allocation minimum 25% (40%, 52%) of the ESF+ERDF Selection in a menu of EU thematic objectives / investment priorities and focus/adapt them based on its own needs, potential, strategy/ies

Focus on results Progress towards agreed results: EU Common & programmespecific indicators, reporting, monitoring & evaluation Performance framework for all programmes: Clear and measurable milestones and targets. EU benchmark. Performance reserve.

â&#x201D;&#x201A;


• Maximise the impact of EU funding Focussed, critical mass Ex-ante conditionality: Ensuring conditions for effective investment are in place. Macro-economic conditionality (economic governance) Improved coordination between EU funds

• Reinforce territorial (local) development & territorial cooperation (cross-border, macroregional) Minimum 5% ERDF for urban development, minimum 5%

• Simplifying delivery, cutting red-tape • Joint-action plan, unit costsG

15


The 11 EU Thematic objectives 1. Shift towards a low-carbon economy 2. Climate change adaptation & risk prevention and management 3. Environmental protection & resource efficiency MS/ 4. Sustainable transport & removing bottlenecks in key region network infrastructures select 5. Employment & supporting labour mobility and 6. Social inclusion & combating poverty specify 7. Education, skills & lifelong learning 8. Institutional capacity building & efficient public administrations â&#x201D;&#x201A;

16


Broken down in investment priorities • Each thematic objective is translated into a limited “investment priorities” (in Fund-specific regulations) MS/ region select • Investment priorities are also objectives, not types of and intervention. This leaves flexibility to design the optimal mix of actions appropriate to the national specify /local needs and growth potential. • The list of investment priorities is exhaustive


Programming documents Common Strategic Framework

Partnership Contract

Operational Programmes

Partnership agreement: Frame national document for all funds. Includes: Choice of selected EU thematic objectives, with a summary of the main expected results. Translated in a set of operational programmes. Operational programme: More focussed. Reference document for the project holders. Includes detailed results expected, type of actions supported, eligible costs â&#x201D;&#x201A;

18


Territorial approach

Territorial development •1) At European level •+ 30% allocation for territorial cooperation

•Crossborder cooperation •Slovenia •Hungary

•Macro-regional cooperation •Low-carbon •Resource-efficient •Risk-prevention •Transport

•2) At regional/local level •Minimum 5% ERDF for urban development

•Cities and towns •Deprived urban neighbourhoods •Functional urban areas, metropolitan regions •Territorial pacts and local initiatives for employment, education and social inclusion •Rural areas •Outermost and sparsely populated areas

•Governance mechanism

•I •T •I


EU level

National level

THE COMMON STRATEGIC FRAMEWORK ERDF, ESF, CF, EAFRD, EMFF

THE PARTNERSHIP CONTRACT ERDF, ESF, CF, EAFRD, EMFF Operational Programmes for ERDF

National or regional level

Operational Programmes for ESF Operational Programmes for CF Multifund Operational Programmes for ERDF, ESF, CF (2 or 3 Funds)

Rural development programmes (EAFRD)

Operational Programmes for (EMFF)


EU level

National level

THE COMMON STRATEGIC FRAMEWORK ERDF, ESF, CF, EAFRD, EMFF

THE PARTNERSHIP CONTRACT ERDF, ESF, CF, EAFRD, EMFF Operational Programmes for ERDF

National or regional level

Operational Programmes for ESF Operational Programmes for CF Multifund Operational Programmes for ERDF, ESF, CF (2 or 3 Funds)

Rural development programmes (EAFRD)

Operational Programmes for (EMFF)


Main points of the presentation

1. What is the EU cohesion policy? 2. The main principles 3. Main changes in 2014-20 4. Preparation in Croatia 5. Key success factors


Negotiation process for Partnership Agreement

POSITION PAPER sent to Croatia

LAUNCH EVENT

INFORMAL DIALOGUE with Croatia

Adoption of the PARTNERSHIP AGREEMENT (early 2014)

Adoption OPERATIONAL PROGRAMMES (before summer 2014?)

Regulations adopted

2013

November

2014 23


• 1st « complete » exercise in Croatia • EU cohesion allocation: EUR 8.58 billion in current prices (5.8 SF, 2.5 CF, 0.13 ETC): x 11,5 / current period! • Ministry of Regional Development and EU funds coordinator. Interministerial groups and partnership consultations (to be further developed) State of play: • Preparation of funding priorities for Croatia • Most probably 5 operational programmes (ERDF/CF, ESF, EMFF, EAFRD, TA) with 4 MAs • Preparation of strategies ongoing (SSS, transport)


Challenges/ 2007-2013 period • Strategic programming, 10 years • Less project-based: strategies, reforms • Alignment to EU acquis + develop specific growth potential, make a difference in the EU! • Top-down, sectoral approach partnership, mobilise local forces, potential, competitive advantage • EU money tax-payer money. Need for clear growth and jobs results, accountability • Allocation x by 11. Management capacity to follow, at national & local level


National reform programme 2013, Croatia 2020 targets in Croatia HEADLINE TARGET

1. Employment (Employment rate) 2. R&D (% R&D investments in GDP) 3. Climate change and energy 3a. Greenhouse gas emissions (% in relation to 1990) 3b. Share of renewable energy in gross final energy consumption (%)

CRO (2011)

CRO (2020)

EU (2020)

57%

59%

75%

0,75%

1.4%

3%

95.2%

106%

80%

13.8%

20%

20%

20% (9,192 TOE)

20% (1,474,000 TOE)

4.1%

4.0%

10%

24.5%

35%

40%

1,382,000

1,282,000

decrease by 20 m

3c. Energy efficiency 4. Education 4a. Early leavers from education and training (% of population aged 18-24) 4b. Tertiary education attainment (% of population aged 30-34) 5. Poverty / Social exclusion (Number of persons)


EC position paper: main challenges Strengthen the competitiveness of the economy

Preserving the environment and the natural resources & adapting to climate change

Increase labour market participation, ensure better education and skills and reduce poverty Inefficient public governance at central/local level and weak involvement of partners 27


Strengthen the competitiveness of the economy

• commercialisation of innovation, clusters, private sector's participation in RDI, university-industry projects • provision of high-quality business support and access to finance • modernisation, restructuring and competitiveness of enterprises (new technologies, green production, organisational and human resources development) • diversification of agriculture, fisheries and aquaculture sectors • balanced transport network (esp. railway infrastructure) within a comprehensive strategy • urban mobility systems • ICT networks and services 28


Increase labour market participation, ensure better education and skills and reduce poverty • enhance the labour market participation of the most vulnerable groups, particularly women, older workers, long term unemployed and young people • improve matching of labour market skills supply and demand, improve vocational education and training outcomes and enhance participation in the education system • improve social inclusion of the most vulnerable groups, including elderly, children, persons with disabilities and Roma • reduce discrimination • ensure high quality, accessible and decentralised social and health services and invest in basic services for the 29 rural population


Preserving the environment and the natural resources & adapting to climate change • improve the efficiency of the waste and water management sector and ensure compliance with the environment standards set by EU acquis • enhancing the protection, valorisation and management of the natural resources and avoid negative consequences of intensive agriculture on biodiversity and nature • develop the blue economy • support a low-carbon economy, stimulate the use of renewable energy • flood, drought and water management, fire prevention/restoration measures 30


Strengthening the administrative capacity, enhancing an efficient public administration and increasing the involvement of civil society and social partners â&#x20AC;˘ develop an effective and efficient public administration, promote efficient, reliable and service-oriented public service â&#x20AC;˘ improvement of the efficiency and quality in judiciary â&#x20AC;˘ strengthen the capacity of social partners and civil society organisations to be involved in policy-making and policydelivery 31


1. What is the EU cohesion policy? 2. The main principles 3. Main changes in 2014-20 4. Preparation in Croatia 5. Key success factors


Programming •Recent Member States: key role in their economic growth if used wisely • Stable and valuable support to the competitiveness and well-being in Croatia, so critical in the current difficult times (70% public investment) • Accompany structural reforms (additionality, not "business as usua”l) •Vision, strategies: investment block for alignment to EU acquis + how Croatia will make a difference in the EU (smart specialisationG) •Concentrate on few and country-specific funding priorities: think of impact and management capacity!! •the capacity to make sometimes difficult choices, to concentrate funds where it matters, to fix clear objectives. •Capacity to mobilize ideas and skills, to unlock the growth potential and consolidate the competitive advantage of the country and the 33 regions. –> partnership essential


Programming: main investment bocks in Croatia Alignment to the EU acquis (waste, water, Natura 2000â&#x20AC;Ś) Transeuropean networks (railway/waterway, energy)

BOOST SPECIFIC GROWTH POTENTIAL â&#x20AC;˘High level political decision. Consensus.

Targeted proposal (3/5 main concrete objectives)

Inclusion, labour market reform, education Territorial development (urban, rural, cross-border, macro-regional)

Prepare projects NOW!!! 34


Management of funds •Strong interministerial coordination & coordination with local authorities (regional policy!!) •No political interference, efficient & stable management system •Managing authorities fully responsible programme(s); strong audit authority

for

its

Operational

• Capacity in the management bodies (number + skills) • Cut unnecessary procedure/ red tape • Accountability (taxpayer money): managed in full transparency; evaluation, communication •Regular ex-ante / ex-post controls to avoid irregularity, conflict of interests and money recovery • Statistical systems and result indicators, monitoring and evaluation35


Preparation of projects • Project support at local level: awareness/partnership, identify/help in preparing project. Develop support & capacities at local level!!! •"overprogramming" • Project with environmental)

clear

results/impacts

(economic,

social,

• An infrastructure is not a project!!! Necessary to achieve env/economic/employment results. Services associated, sustainability •Appropriate project partnership •Match-funding ensured at national/local level. IFIs to provide financial support for preparation & implementation • State-aid & assessment •Jaspers support

procurement

rules,

Environmental

impact 36


What we hope to bring about

Spend,

spend,

spend !


More information on: www.inforegio.europa.eu

â&#x201D;&#x201A;

38


Urban and territorial dimension of the future CP

Community-led local development

Urban and territorial development

Thematic objectives, (Urban) investment priorities

ETC ITI

Minimum 5% of ERDF of each

Member State for urban development through delegated ITI

Urban development

Urban innovative actions

platform

(0,2% of ERDF at EU level)


Integrated Territorial instrument • Need for addressing territorial challenges • Tool to implement integrated territorial/urban strategies. Optional • For a functional area at the appropriate territorial scale (neighbourhoods, cities, city-regions, metropolitan areas, rural areas) • Correspond to one or more investment priorities of a thematic objective. Pool funding of different funds (ERDF, ESF, CF, EAFRD), from different priority axes and programmes including ETC • Possible delegation of the management to one or more intermediate bodies • Relevant to cross-border and trans-national programmes


Sustainable urban development and ITI Example: Member State A National/sectoral/ETC

Regional OP

ERDF OP

I

ESF OP

T I

City 3 CF OP

City 1 City 2 City 3

Arrangements between city and regional/national level on: Justification of planned actions (exante) Territorial and thematic objectives Planned measures and actions Synergy between different thematic actions Management (division of tasks) and capacity building needs Indicators Monitoring, evaluation


ITI is not CLLD

• Greater territorial coverage • Greater resources • Top-down, with the possibility of participation and involvement • Selection of the areas are not necessarily competitive • Key responsibility lies in the public sector


Community-Led Local Development • Leader experience • Focused on specific sub-regional territories. Considering local needs and potential • Community-led, by local action groups composed of representatives of public and private local socioeconomic interests, no majority partner. • Carried out through integrated and multi-sectoral areabased local development strategies • Optional for ERDF and ESF, standard for EAFRD

[PUBLIKACIJA] EU cohesion policy preparation in Croatia  

by Sabine Germe, EC REGIO E4