EUROPEAN COMMISSION
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Regional Policy
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Community EU Strategic Cohesion Guidelines Policy for Project and Cohesion programme 2007-2013 approaches to integration policy: sources of finance
Project and programme approaches to integration policy: sources of finance
Manfred Beschel Acting Director Directorate H
Interventions in Denmark, Estonia, Finland, Latvia, Lithuania, Poland, Sweden
DG Regional Policy European Commission
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Brazil, 26 May 2009
EUROPEAN COMMISSION Regional Policy
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Short history of EU Cohesion policy Community • 1958 – Preamble of Treaty of Rome: objective to reduce the gap between different regions and close the development lag of the EU Strategic least favoured, but no tools to this end (only EIB loans) Cohesion Guidelines • 1964 – first structural actions in agriculture (orientation section of Policy for the agricultural fund) Cohesion Project and programme • 1972 – European Social Fund to intervene also in lagging behind 2007-2013 approaches to • integration policy: sources of • finance • • 2
regions 1975 – European Regional Development Fund: project approach support for individual projects Structural Policy chapter in the Single European Act aimed at providing economic and social cohesion 1989 and 1993 – Reform of the structural funds (I and II Delors’ packages) Creation of Cohesion Fund in Maastricht Treaty to support convergence
EUROPEAN COMMISSION Regional Policy
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A need for a reform •
Community EU Strategic • Cohesion Guidelines Policy for • Cohesion Project and programme • 2007-2013 approaches to integration policy: sources of finance
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Not sufficient resources for European Structural Policy: yearly average budget of 2 mld ECU Dispersed grants: between 1975-1988 ERDF spent 24,4 mld ECU for 41 thousand projects (average size of a project ca 0,5 mln ECU) Lack of coordination and complematarity at European and national level Accession of poorer countries – Greece (1981) and Spain and Portugal (1985) Growing disparities between regions – a threat for integration processes Ambition to build Common Market and Monetary Union: a need for tool for convergence and compensation mechanism for stronger competition A need for long-term programme approach (project approach – testing phase)
EUROPEAN COMMISSION Regional Policy
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Reform: principles of the EU Cohesion policy Community EU Strategic Cohesion Guidelines Policy for Cohesion Project and programme 2007-2013 approaches to integration policy: sources of finance
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• Strategic programming: mid-term development strategies • Multiannual planning: 7-year budget security and integrated - non-sectoral approach • Concentration of resources on core priorities (financial, geographic, objective concentration) • Objective-driven policy: orienting grants to results • Additionality: match funding (mobilising national and private resources) • Multilevel governance and partnership ... And significant increase in spending (possible due to stronger efficiency and accountability mechanisms)
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EUROPEAN COMMISSION
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Regional Policy
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Budget: evolution of the structural funds Year
Community EU Strategic Cohesion Guidelines Policy for Cohesion Project and programme 2007-2013 approaches to integration policy: sources of finance
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M ecu/€
% EU budget
1975
257 ecu
4,8%
1981
1,540 ecu
7,3
1987
3,311 ecu
9.1
1992
18,557
25,0
1998
33,461
37,0
2002
34,615
35,0
2006
38,791
32,0
EUROPEAN COMMISSION Regional Policy
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Community EU Strategic Cohesion Guidelines Policy for Cohesion Project and programme 2007-2013 approaches to integration policy: sources of finance
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Reform 2007-2013 - Concentration and strategic framework Enhanced strategic approach • Reinforcing the Union's priorities; geographic - about 80% of funding to less-developed regions, thematic - focus on Lisbon and Gothenburg agendas • Overarching strategy for Cohesion policy: Lisbon Strategy – focus on Growth and Jobs • Strategic Community Guidelines – main development objectives at European level • National Strategic Reference Framework: an ‘umbrella’ for all development actions at national level including different sources of funding • Decentralised implementation
EUROPEAN COMMISSION Regional Policy
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Community EU Strategic Cohesion Guidelines Policy for Cohesion Project and programme 2007-2013 approaches to integration policy: sources of finance
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Cohesion Policy added value – chosen aspects • Improvement of administrative capacities and promotion of good governance • Enhancing the culture of monitoring and evaluation of public interventions • Improved cooperation between public and private sectors and promotion of the PPP • Financial leverage: mobilisation of the resources - 1 EURO of EU spending encouraged 0,9 EURO of additional spending in Convergence regions and up to 3 EURO in Competitiveness and employment regions
EUROPEAN COMMISSION Regional Policy
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Cohesion Policy – Social or economic objectives? Community • Integrated approach aimed at development of endogenous EU Strategic potential – from immediate remedies to long-term strategy Cohesion Guidelines Policy • First things first: basic social needs must be tackled to get for people out of poverty, but long-term impact actions must be Cohesion Project and initiated programme 2007-2013 approaches to integration policy: sources of finance
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Avoid „a vicious circle of poverty” and do not create dependency of social welfare – regional policy is not about redistribution Regional policy is placed along social, finance, health, educational policies – get a policy mix right and gradually increase budget for development goals Public intervention must create basis for sustainable development
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EUROPEAN COMMISSION Regional Policy
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Differentiated approach Community EU Strategic Cohesion Guidelines Policy for Cohesion Project and programme 2007-2013 approaches to integration policy: sources of finance
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• ‘Tailored made policy’ - strategy has to be adequate to the identified needs of the region and obstacles to the development • EU example - Differentiated approach to types of region Objective 1 – Convergence or lagging behind regions: interventions focused on infrastructure Objective 2 – Regional competitiveness and employment or regions with structural difficulties: interventions aimed at innovation and knowledge based economy, R&TD, business networks and clusters
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EUROPEAN COMMISSION Regional Policy
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A matter of ‘smart’ choice Community EU Strategic Cohesion Guidelines Policy for Cohesion Project and programme 2007-2013 approaches to integration policy: sources of finance
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A catalogue of potential areas of interventions – ERDF for Convergence regions Research and technological development, innovation, entrepreneurship – development of capacities, including SMEs Information society and ICT Local development activities Environment (water supply, waste water treatment, waste management, air pollution etc) Prevention of risks (plans to prevent and cope with natural and technological risks) Tourism Investment in culture and cultural heritage Transport investments Energy investment, energy efficiency Education investments Investments in health and social infrastructure
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EUROPEAN COMMISSION Regional Policy
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A matter of ‘smart’ choice 2 Community EU Strategic Cohesion Guidelines Policy for Cohesion Project and programme 2007-2013 approaches to integration policy: sources of finance
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Operational programme / strategic planning document covering a 7 years period ↓ choice of priorities on the basis of social and economic analysis ↓ definition of quantified goals ↓ definition of measures implementing the priorities ↓ definition of projects selection criteria ↓ projects selection procedure based on objective criteria
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EUROPEAN COMMISSION Regional Policy
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Delivery of the policy: from project to programme approach Community EU Strategic Cohesion Guidelines Policy for Cohesion Project and programme 2007-2013 approaches to integration policy: sources of finance
An example from Poland
• Pre-accession support (ISPA) and Cohesion Fund in Poland in 2000 – 2006 programming period • Broad definition of the main strands eligible for support: environment and transport infrastructure (based on EU regulation) • Financing of major investments • Projects assessed on the case by case basis (involvement of the EU)
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• Administrative support
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EUROPEAN COMMISSION Regional Policy
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From project to programme approach Community EU Strategic Cohesion Guidelines Policy for Cohesion Project and programme 2007-2013 approaches to integration policy: sources of finance
Strengths of project approach • Learning process: developing skills of beneficiaries and public administration • Promotion of project cycle management: identification, planning, realisation, financial settlement and evaluation • Orientation on results (indicators) • Project documentation: cost-benefit analysis, integration of environmental aspects • Stronger accountability and transparency
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EUROPEAN COMMISSION Regional Policy
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From project to programme approach: an example from Poland Community Shortcomings of project approach – lessons learned EU Strategic Cohesion Guidelines • A need for more strategic approach and better Policy for coordination: feasible projects, but with limited impact on Cohesion Project and social and economic situation programme 2007-2013 approaches • A need for a framework in which projects could produce to better results for the economy and society integration • A need for improved identification of strategic policy: sources of investment and complementarity of projects finance • A need for project pipeline to improve delivery of results for citizens (time!) • A need for improvement of the investment process (spatial planning, public procurement) 14
EUROPEAN COMMISSION Regional Policy
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Programme approach Community EU Strategic Cohesion Guidelines Policy for Cohesion Project and programme 2007-2013 approaches to integration policy: sources of finance
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Aim: strategic planning of development actions and budget security in a mid-term perspective • Key success factors in regional policy: proper strategy and effective implementation Operational programme: ‘a contract’ negotiated between EU and a member state or region defining development goals, management structure and funding Operational programme: a mid-term strategy (structure: diagnosis of social and economic situation, SWOT analysis, development objectives, priorities and targets – indicators of output and result and financing plan) • In Poland: first multiannual development plans that were operational in term of resources and administrative capacities
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EUROPEAN COMMISSION Regional Policy
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Different programme approaches: examples from Poland
Community Integrated regional development operational EU Strategic programme 2004-2006 Cohesion Guidelines Policy • One programme for 16 regions combining infrastructural for Cohesion Project and and active labour market priorities programme 2007-2013 approaches • Strategy drawn at national level – implementation at to regional level integration policy: sources of finance
• Regional allocations (according to level of development) • A ‘one size fit all’ solution due to EU concern about administrative capacity of Polish regions created in 1999 • Learning process: regional authorities responsible for project selection
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EUROPEAN COMMISSION Regional Policy
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Different programme approaches: examples from Poland
Regional Operational Programmes 2007 – 2013 • One programme for each of the region – decentralisation and adjustment to territorial needs • Programme reflects a long-term strategy of the region • Full responsibility of the regional authorities for approaches programme realisation (project identification and to selection, financial management etc.) integration • Integrated approach to development: infrastructure, policy: support for companies and business environment, sources of urban development, heath and educational finance infrastructure • A challenge of coordination and demarcation with national programmes and other regional programmes • Project selected mainly on the basis of competitions
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EUROPEAN COMMISSION Regional Policy
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Different programme approaches: examples from Poland
Community Operational programme for Eastern Poland 2007-2013 EU Strategic Cohesion • A programme for a macro-region for 5 poorest regions Guidelines Policy for in Poland to tackle common problems Cohesion Project and programme • Management at national level (Ministry of Regional 2007-2013 Development) in cooperation with regional authorities approaches to and beneficiaries integration policy: sources of finance
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• A list of key investments for each of the development priorities (e.g. development of the broadband network in Eastern Poland – ca. 300 M €) • Key issue: project identification (strategic for the macroregion to justify the intervention at this level, broad consultation is a must)
EUROPEAN COMMISSION Regional Policy
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Different programme approaches: examples from Poland
Community National programmes (e.g. OP Environment and Infrastructure and OP Innovative Economy) EU Strategic Cohesion • Guidelines National programmes aimed at strategic investment Policy for from the country perspective (e.g. main motorway Cohesion connections, support for main R&D centres or clusters) Project and programme • 2007-2013 Management at national level (Ministry of Regional approaches Development) in cooperation with state agencies or line to ministries responsible for infrastructure, education, integration science etc. policy: sources of • A list of key investments for each of the development finance priorities) – 400 projects underpinned to programme priorities • Key issue: project identification (strategic importance at a national level) 19
EUROPEAN COMMISSION Regional Policy
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The challenges of coordination Community • Tools for complementarity between national and regional programmes EU Strategic Cohesion Guidelines • Strategic coordination: NSRF and programme Policy for strategies, Cohesion Project and Provisions that regional transport infrastructure must programme 2007-2013 complement national projects approaches to Environmental projects are required to comply with integration national sewage plan and EU directives policy: sources of • Institutional coordination: joint (formal or informal) bodies between managers of different programmes finance • Operational coordination: selection criteria - higher scores for projects, which complement each other • Partnership: NSRF Monitoring Committee 20
EUROPEAN COMMISSION Regional Policy
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Example of coordination between Lodz and Warsaw
Community • Problems: distrust and competition over FDI, limited coordination between municipalities hampered development EU Strategic Cohesion Guidelines • Progress made thanks investment made form national Policy programmes. for Cohesion Project and An express train (to reduce commuting time between the two cities programme 2007-2013 from 2 hours today to only 40 minutes by year 2011). approaches to integration policy: sources of finance
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A motorway will also link Warsaw to Poznan (and Berlin) through Lodz. • Justification for national intervention: Exploiting the major pole of growth in the country is a national concern and raises a key priority in terms of strategic planning The long-term development of large urban pole, which could become a strong economic centre in Europe with complementary specialisations and functions.
EUROPEAN COMMISSION Regional Policy
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How to translate strategy into projects of good quality?
Community • Assistance in project development (support for beneficiaries: project pipeline, guidelines) EU Strategic Cohesion Guidelines • Effective system for project identification (project Policy for selection): Cohesion Project and Objective project selection criteria (formal, economic programme 2007-2013 and social, strategic) and transparent selection process approaches based on defined procedures and expertise to integration Key investments: strategic planning of good quality, policy: public consultations (social and economic partners, sources of experts in the field of regional development) finance • Develop administrative capacity: building in-house knowledge and effective use of external experts Design ‘Technical assistance instrument’ to develop capacities of administration (objective: qualified project and programme managers) 22
EUROPEAN COMMISSION Regional Policy
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Future challenges (Barca report) • An innovative concentration on core Community priorities: 2/3 of the funding on 3-4 priorities EU Strategic
Cohesion Guidelines • Orienting grants to results: stronger pressure Policy for on objectives and targets, improved system of Cohesion Project and programme 2007-2013 indicators approaches to integration policy: sources of finance
• Improved impact evaluation of programmes • Promoting experimentalism and mobilising local actors • Promoting additional, innovative and flexible spending
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EUROPEAN COMMISSION Regional Policy
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Questions? Community EU Strategic Cohesion Guidelines Policy for Cohesion Project and programme 2007-2013 approaches to integration policy: sources of finance
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Thank you for your attention
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