RegionalDevelopment. Cohesion Policy in the EU. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4

Regional Development Cohesion Policy in the EU

"Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

History of EU Cohesion Policy The EU founding fathers – representing the original 6 Member States - set out in the Treaty, that: "the Community shall aim at reducing the disparities between the levels of development of the various regions“ But: the differences between the regions were so minor at the beginning, that real action did not happen "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Key steps 1957. The Treaty of Rome established the European Economic Community (EEC), and with it the European Social Fund (ESF), to improve job opportunities in the Community by promoting employment and increasing the geographical and occupational mobility of workers.

1962. European Agricultural Guidance and Guarantee Fund (EAGGF), set up on the financing of the common agricultural policy


Key steps 1970s - idea of structural aid for deprived regions started taking shape

1968: creation of the Directorate General for Regional Policy

1971: Council Resolutions: incentives to regional development in CAP and co-ordination of financial aids "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Key steps 1975: European Regional Development Fund (ERDF) set up for a 3-year test period. Aim was to correct regional imbalances due to: ◦ predominance of agriculture ◦ industrial change ◦ structural unemployment In the early days operations were purely national - financing predetermined projects in the Member States - little European influence "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Key steps In the 1980s • New countries brought increased regional disparities - funding became key means of bringing wealth up to EU average • Set the basis for genuine cohesion policy designed to offset the burden of the single market for the less-favoured regions of the Community

1986: Single European Act "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Key steps 1988: Reform of the Cohesion Policy The Council adopted first regulation integrating on the Structural Funds Introduced 4 key principles:

CONCENTRATION: focusing on poorest regions PARTNERSHIP: involvement of regional and local partners PROGRAMMING: multi-annual programming ADDITIONALITY: EU expenditure must not substitute national "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Key steps During the next five years Integration of the structural funds 5 priority objectives Standardised rules Decentralised management Increase of the structural fund budget


Key steps 1994: In order to speed up economic, social and territorial convergence, the European Union set up a Cohesion Fund. The Fund is intended for countries whose per capita GDP is below 90% of the Community average. The purpose of the Cohesion Fund is to grant financing to environment and transport infrastructure projects.


Key steps Between 1994 and 1999: Simplification of procedures Financial Instrument for Fisheries Guidance, (FIFG). Increase of structural fund budget to ECU 32 billion (ca. 30% of EU budget)


Key steps 2000-2006: ‘Agenda 2000’ paved the way for biggest ever enlargement of the EU - 10 new Member States joining in May 2004. This historic enlargement brought 20% increase in the EU population, but only 5% increase in GDP

Other pre-accession instruments

Phare: capacity building SAPARD: rural development - ISPA: environment + transport "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Key steps 2007-2013: focus on growth and jobs

3 objectives Community initiatives mainstreamed All regions eligible Increase budget (ca. 36% of EU budget) Rural development and fisheries funds outside cohesion policy "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

EU Budget 2007-2013 COMMITMENT APPROPRIATIONS BY HEADING

In billion of EUR, at 2004 prices

1a. Competitiveness for growth and employment (research, innovation, competitiveness)

In %

72.1

8,4%

307.6

35,7%

371.2

43,1%

293.1

34,0%

3. Citizenship, freedom, security and justice (internal policies; public health, asylum, immigration)

10.3

1,2%

4. The EU as a global partner (humanitarian and development aid)

50.0

5,8%

5. Total administrative expenditure

50.3

5,8%

0.8

0,1%

1b. Cohesion for growth and employment (regional policy) 2. Preservation and management of natural resources (Common Agricultural Policy, rural development, environment) of which market-related expenditure (CAP)

6. Compensations Bulgaria and Romania (after accession expected in 2007) Total commitments In % of EU-27 GNI

source: http://ec.europa.eu

862.4

100

1.045% "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Questions What is the main objective of European Social Fund? 2. What is the relevance of the cohesion policy reform in 1988? 3. In which year was the historical enlargement? 1.


The Aims of Cohesoin Policy 2007-2013 For 2007-13, cohesion policy focuses on three main objectives: Convergence – solidarity among regions Regional Competitiveness and Employment European territorial cooperation


Convergence The aim is to reduce regional disparities in Europe by helping those regions whose per capitagross domestic product (GDP) is less than 75% of the EU to catch up with the ones which are better off.

Some regions in the EU as constituted before the two most recent enlargements are now above the 75% threshold simply because the EU average GDP has fallen with the addition of the newest member countries. Those regions still need help from the cohesion policy, so they now receive "phasing out" support until 2013. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Regional Competitiveness and Employment The aim is to create jobs by promoting competitiveness and making the regions concerned more attractive to businesses and investors. This objective covers all regions in Europe not covered by the convergence objective. In other words, it is intended to help the richer regions perform even better with a view to creating an knock-on effect for the whole of the EU to encourage more balanced development in these regions by eliminating any remaining pockets of poverty. Some regions, which used to be under the 75% threshold that would qualify them for inclusion in the convergence group, receive extra funding to help them "phase in" to their new objective. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Territorial Cooperation The aim is to encourage cooperation across borders - be it between countries or regions – that would not happen without help from the cohesion policy. In financial terms, the sums concerned are negligible in comparison with the other two objectives, but many countries and regions would like to see that change in future. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Which Funds support which objectives?

source: http://ec.europa.eu "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Future programme 2014-2020 In November 2010, the European Commission published its first ideas concerning the future of the EU’s cohesion policy after the current programming period comes to an end in 2013. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

1. Linking allocation of funds to the Europe 2020 objectives Objectives include:

raising the employment rate, tackling poverty, improving access to education, investing more money in research and technology, using energy more efficiently and promoting clean technologies to reduce carbon dioxide emissions. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

2. Focusing resources on a small number of priorities

The Commission is proposing that member states and regions should concentrate resources from the structural funds and national budgets on a small number of thematic priorities, linked to the Europe 2020 objectives.


3. Making payments depend on certain conditions The Commission proposes to agree a series of specific conditions with each member state. These could relate to the implementation of improvements to public administration or reforms to national legislation - for example regarding employment rules or environmental standards. Final payments would not be made until the pre-agreed conditions have been met. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

4. Stronger monitoring and evaluation The Commission believes that improved monitoring and evaluation systems are necessary for supporting the move to a more results-oriented approach. It would like clear and measurable targets and indicators to be agreed in advance, which can be used to assess the outcomes of programmes in the various member states. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

5. Reinforcing the territorial dimension The Lisbon Treaty states that the European Union should promote not only economic and social cohesion but also territorial cohesion. This implies that the EU should aim to ensure a more balanced development of economic activity across all of its regions including urban and rural areas, islands and peripheral regions. In particular, the Commission intends to pay more attention to urban areas, and to increase the involvement of local and regional authorities in operational programmes. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

6. Strengthening partnerships. The Commission wants to increase the involvement of local and regional stakeholders, social partners and civil society organisations in the implementation of operational programmes. It also wishes to encourage the spread of local development approaches based on partnerships among the various relevant actors. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Principles Four key principles underpin cohesion policy: ◦

CONCENTRATION

◦

PARTNERSHIP

◦

PROGRAMMING

◦

ADDITIONALITY "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Concentration This principle has three aspects:

Concentration of resources: the greater part of structural fund resources (81.9% for 2007-13) are concentrated on the poorest regions and countries. Concentration of effort: investment effort is focused on specific aspects. For 2007-13, it targets the knowledge economy: RTD, innovation, technology transfer, information and communication technologies, human resources development and business development. Concentration of spending: at the beginning of each programming period, annual funding is allocated to each programme. These funds must be spent by the end of the second year after their allocation "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Programming Cohesion policy does not fund individual projects. Instead, it funds multi-annual national programmes aligned on EU objectives and priorities.


Partnership Each programme is developed through a collective process involving authorities at European, regional and local level, social partners and organisations from civil society. This partnership applies to all stages of the programming process, from design, through management and implementation to monito ring and evaluation. This approach help ensure that action is adapted to local and regional needs and priorities.


Additionality

Financing from the European structural funds may not replace national spending by a member country. The Commission agrees with each country upon the level of eligible public (or equivalent) spending to be maintained throughout the programming period, and checks on compliance in the middle of the programming period, and at the end. The objective is to set realistic but ambitious targets for structural public spending to ensure that contribution of the structural funds really does add value. As a rule, average annual spending in real terms should not be less than in the previous programming period. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Questions Which three objectives are in focus in the period of 2007-2013? 2. What does the principle of partnership mean? 3. What are the benefits of making payments depend on certain conditions? 1.


Financial Instruments of Cohesion Policy Financial instruments can play an important role in the achievement of cohesion policy. The instruments are

gaining importance. applied flexibly according to the situation in Member States and regions. create a multiplier effect. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Cohesion Fund It is aimed at Member States whose Gross National Income

(GNI) per inhabitant is less than 90% of the Community average. It serves to reduce their economic and social shortfall, as well as to stabilise their economy. It supports actions in the framework of the Convergence objective. For the 2007-2013 period the Cohesion Fund concerns Bulgaria, Cyprus, the Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovakia and Slovenia. Spain is eligible to a phase-out fund only as its GNI per inhabitant is less than the average of the EU-15. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Cohesion Fund The Cohesion Fund finances activities under the following categories: trans-European transport networks, notably priority projects of European interest as identified by the Union; environment; here, Cohesion Fund can also support projects related to energy or transport, as long as they clearly present a benefit to the environment: energy efficiency, use of renewable energy, developing rail transport, supporting intermodality, strengthening public transport, etc. The financial assistance of the Cohesion Fund can be suspended by a Council decision (taken by qualified majority) if a Member State shows excessive public deficit and if it has not resolved the situation or has not taken the appropriate action to do so.


European Regional Development Fund The ERDF aims to strengthen economic and social cohesion in the European Union by correcting imbalances between its regions. In short, the ERDF finances:

direct aid to investments in companies (in particular SMEs) to create sustainable jobs; infrastructures linked notably to research and innovation, telecommunications, environment, energy and transport; financial instruments (capital risk funds, local development funds, etc.) to support regional and local development and to foster cooperation between towns and regions; technical assistance measures. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

European Regional Development Fund ERDF has specific territorial characteristics: gives particular attention to specific territorial characteristics. ERDF action is designed to reduce economic, environmental and social problems in towns. Naturally disadvantaged areas geographically speaking (remote, mountainous or sparsely populated areas) benefit from special treatment. the outermost areas also benefit from specific assistance from the ERDF to address possible disadvantages due to their remoteness.


European Social Fund The ESF sets out to improve employment and job opportunities in the European Union. It intervenes in the framework of the Convergence and Regional Competitiveness and Employment objectives.


European Social Fund The ESF supports actions in Member States in the following areas:

adapting workers and enterprises: lifelong learning schemes, designing and spreading innovative working organisations; access to employment for job seekers, the unemployed, women and migrants; social integration of disadvantaged people and combating discrimination in the job market; strengthening human capital by reforming education systems and setting up a network of teaching establishments. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Special support instruments Four joint initiatives were developed by the European Commission in co-operation with the European Investment Bank group and other financial institutions in the framework of the 2007-2013 programming period in order to make cohesion policy more efficient and sustainable.

JASPERS JEREMIE JESSICA JASMINE "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

JASPERS Joint Assistance to Support Projects in European Regions, is a technical assistance facility for the twelve EU countries which joined the EU in 2004 and 2007. -

It provides the Member States concerned with the support they need to prepare high quality major projects, which will be co-financed by EU funds. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

JEREMIE Joint European Resources for Micro to Medium Enterprises, is an initiative of the European Commission developed together with the European Investment Fund. -

It promotes the use of financial engineering instruments to improve access to finance for SMEs via Structural Funds interventions. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

JESSICA Joint European Support for Sustainable Investment in City Areas, is an initiative of the European Commission developed in co-operation with the European Investment Bank (EIB) and the Council of Europe Development Bank (CEB). - It supports sustainable urban development and regeneration through financial engineering mechanisms. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

JASMINE Joint Action to Support Micro-finance Institutions in Europe, aims at providing both technical assistance and financial support to non-bank micro-credit providers and to help them to improve the quality of their operations, to expand and to become sustainable. - It seeks also to promote good practices in the field of microcredit and to draft a code of good conduct for micro-credit institutions. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Instrument for Pre-Accession Assistance (IPA) From January 2007 onwards, the Instrument for PreAccession Assistance (IPA) replaces a series of European Union programmes and financial instruments for candidate countries or potential candidate countries, namely

PHARE, ISPA, SAPARD, CARDS and the financial instrument for Turkey. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Instrument for Pre-Accession Assistance (IPA) The IPA is made up of five different components:

Assistance for transition and institution building; Cross-border cooperation (with EU Member States and other countries eligible for IPA); Regional development (transport, environment, regional and economic development); Human resources (strengthening human capital and combating exclusion); Rural development. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Instrument for Pre-Accession Assistance (IPA) The IPA beneficiary countries are divided into two categories:

EU candidate countries (Croatia, Turkey and the former Yugoslav Republic of Macedonia) are eligible for all five components of IPA; Potential candidate countries in the Western Balkans (Albania, Bosnia-Herzegovina, Montenegro, Serbia, and Kosovo under UN Security Council Resolution 1244/99) are eligible only for the first two components. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Questions 1. Specify the financial instruments of EU cohesion policy! 2. Which Fund supports social integration of disadvantaged people and combating discrimination in the job market? 3. What are the cinditions of being supported by Cohesion Fund?


Cohesion Policy in Numbers and Graphics


EU 27 Member States GDP per capita in PPS in 2006 EU 27= 100

300

250

200

150

100

50

0

Source: Eurostat structural indicators "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008

Differences in development in the EU-27 GDP per head as a % of the community average

<50 50 - 75 75 - 90 90 - 100 100 - 125 ≥ 125




European Regional Development Fund and Cohesion Fund (€271 billion)

European Social Fund (€76 billion)

Employment Environment Transport

Human capital

Research/Innovation

Information society Social infrastructure Energy

Tourism Culture Institutional capacity

Adaptability of workers and firms Social inclusion Capacity building Technical assistance


Geographical Eligibility for Structural Funds Support 2007-2013

source: http://ec.europa.eu Convergence objective (Regions > 75% in EU25) Geographical Eligibility for Structural Funds Support 2007-2013

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


Increasing of EU Resources source: own graphic 3 500

3 000

2 500 Cohesion Fund Structural Funds

2 000

Norvegian Schengen #REF!

1 500

SAPARD ISPA

1 000

Phare

500

2013

2012

2011

2010

2009

2008

"Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4.4-09/2-C-20090008 2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

0

Questions and Tasks Do you know or work in any project was supported by the Funds? 2. Please analyse the „Geographical Eligibility for Structural Funds Support 2007-2013” graphic! 3. How much has your country been allocated by Cohesion Fund in 20072013? 1.


Required readings

Pike, Andy: Local and regional development. London ; New York : Routledge, 2006 Telň, Mario: Europe : A civilian power? European Union, global governance, world order. Houndmills ; New York : Palgrave Macmillan, 2006 Faragó, L.: The General Theory of Public (Spatial) Planning. The Social Technique for Creating the Future. Discussion Papers. 43. Pécs, Centre for Regional Studies of Hungarian Academy of Sciences. David Rusk. 1995. Cities Without Suburbs. Washington, DC: Woodrow Wilson Center Press (Pp. 5-47). J. Eric Oliver. 2001. Democracy in Suburbia. Princeton: Princeton University Press (Pp. 187-213). Todd Swanstrom and Brian Banks. 2009. Going regional: Community-based regionalism, transportation, and local hiring agreements. Journal of Planning Education and Research 28: 355-367. Jennifer Clark and Susan Christopherson. 2009. Integrating investment and equity: A critical regionalist agenda for progressive regionalism. Journal of Planning Education and Research 28: 341-354. H.V. Savitch & Ronald K. Vogel. 2000. Paths to new regionalism. State and Local Government Review 32: 158-68.


Useful links http://ec.europa.eu http://www.cerphg.unideb.hu http://www.euractiv.com


RegionalDevelopment. Cohesion Policy in the EU. "Reflektív szociális képzési rendszer a 21. században" TÁMOP 5.4

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