The Urban Dimension In European Cohesion Policy Marco Orani Directorate General Regional Policy Head of Unit Urban actions

Challenges and opportunities Over 60% of the population in the European Union lives in urban areas of over 50,000 inhabitants. Cities are the home of most jobs, businesses and higher education institutions and are key to achieving social cohesion and to achieving competitiveness. European cities attract the highly skilled, often creating a virtuous circle that stimulates innovation and business adding to their attractiveness to new talent. Cities concentrate not only opportunities but also challenges and account must be taken of the specific problems facing urban areas, such as unemployment and social exclusion, high and rising crime rates, increased congestion and the existence of pockets of deprivation within city boundaries.

New approach: integrating urban actions into mainstream programmes building on lessons learnt The aim is to provide a flexible approach which Member States, Regions and local authorities can adapt it to suit their needs and opportunities and their institutional structure The Regulation provides a set of tools in order to implement an effective urban strategy. It is up to Member States to make the best use of them.

The new approach to urban dimension implies: - to increase the added value of Structural Funds intervention - promoting an integrated approach to sustainable urban development - to increase the involvement of local authorities, as a key element for facilitating a successful urban policy - to valorise the URBAN “acquis”.

Cohesion guidelines Actions with a focus on urban areas can take several different forms First, actions to promote cities as motors of regional development. Second, actions to promote internal cohesion inside the urban areas that seek to improve the situation of crisis districts and fight against segregation and exclusion. Third, actions to promote a more balanced, polycentric development between the economically strongest cities and the rest of the urban network at national and Community level.

Cohesion guidelines:Key principles First, effective urban and regional policy requires multilevel governance where national, regional and local authorities cooperate in an organized way to reach the objective defined in common. Second, the preparation of a medium- to long-term development plan for sustainable urban development is generally a precondition for success as it ensures the coherence of investments and of their environmental quality. This will also help to secure the commitment and participation of all the partners both public and private in urban renewal and development.

The tools in the regulation The Regulations provide a tool-box for taking the urban dimension into account: it is recommended to include an urban strategy inside the National Strategic Reference Framework The eligibilities are broader (Articles 4,7 & 8 of the ERDF Regulation), there is the possibility of using financial engineering for urban-type investments (JESSICA), and to associate, when appropriate, local and regional authorities in the planning and implementation of Operational Programmes.

The National Strategic Reference Frameworks The National Strategic Reference Frameworks should include priorities related to sustainable urban development among the thematic and territorial priorities, where appropriate If no sustainable urban development priorities have been included in the NSRF, the Member States should explain why they consider this not to be relevant

Operational programmes Should, when appropriate, contain information on the approach to sustainable urban development Might contain a priority axis for urban development Might contain a list of cities and urban areas concerned Might contain the procedure for subdelegating to urban authorities, possibly by means of a global grant

ERDF Eligible priorities Article 4 specifies for the convergence regions the wide eligibility of interventions supporting integrated regional and local development, most of which may refer also to cities Article 8 offers an enlarged scope of eligibility in the specific context of area- based actions aiming to integrated urban development

Article 8 ERDF Regulation The Programmme might contain an urban development priority targeting well identified areas in selected cities: –Strengthening economic growth –Rehabilitation of physical environment –Brownfield redevelopment –Preservation and development of natural and cultural heritage –Provision of services to population –Promoting local economic development: SMEs, entrepreneurship and employment

Involvement of urban authorities as partners (art 10 Gen. Reg.) MS shall organize, where appropriate and in accordance with current national rules and practices, the partnership with the competent regional, local and urban authorities and shall designate the most representative partners at national, regional or local level The partnership will cover the preparation, implementation, monitoring and evaluation of the Operational Programs.

Housing ( art.7.2 ERDF. Reg.) Expenditure for housing shall be eligible for the new MS, when programmed within the framework of an integrated urban development operation or priority axis for areas experiencing or threatened by physical deterioration and social exclusion. It will be submitted to a ceiling of 3% per program and of 2% of the total ERDF allocation It will be limited to multi-family housing or buildings owned by public authorities or non profit operators for use as housing designated for low income households or people with special needs

Financial Engineering ( art. 42bis and 77 Gen. Reg.) Financial engineering instruments are particularly appropriate because they increase the leverage effect of Community and national public resources

Convergence programmes could support urban development : In thematic priorities for innovation, SMEs, environment and accessibility. In an urban priority, targeting urban areas that require an integrated, multisectoral approach and selected thematic actions related to the urban dimension

The urban priority axis Specifically, the Commission advocates the creation inside the majority of the Regional Programmes of a specific urban Priority Axis with an integrated approach to urban challenges and, possibly, a list of the urban areas concerned ( or at least a clear identification of the criteria for selecting these areas). In any case, the handling of urban matters must show added-value and visibility in the Structural Funds interventions

The urban priority axis A Priority Axis may have a different content depending on the specific necessities of the respective region and urban area. The Priority Axis may include: - integrated operations in neighbourhoods and urban areas with specific problems; - integrated operations in urban development poles; - thematic operations in a city or metropolitan area, for example sustainable transport, energy management, management of waste, electronic government etc.; - creation of networks between urban and rural areas.

Multi-level governance The Commission advocates multi-level governance of urban interventions, allowing for the participation and involvement of all those concerned. Regional Policy doesn't just mean devolution to the regions but also, when appropriate, to the local level. The possibility of the delegation of management via a global grant is also foreseen in the Regulations

PPP (Public Private Partnership) The provision of infrastructure in an urban context and of services of general interest based on PPP should be encouraged. It can assume the form of privatisation, accompanied by the setting up of a regulatory framework, concessions creation of joint companies between public and private partners. PPP requires high skilled administration in order to avoid a situation of asymmetrical bargaining power. The Structural Funds might intervene to support the establishment of the necessary administrative capacity in this respect (especially in the convergence regions).

Exchange of experience The Commission encourages a better exchange of experience and knowledge between cities and regions to allow for the effective mainstreaming of the urban dimension in programmes of the new period. This can also be realised through the URBACT network. URBACT was created in 2003 and in the new period will be a Priority Axis of the "Inter-regional Co-operation" under Objective 3.

Cohesion Policy and Cities: the urban contribution to growth and jobs in the regions Further develops the urban dimension of the draft Community Strategic Guidelines Main aim: to inspire the national, regional and local authorities as they develop the urban dimension of both NSRF and operational programmes.

Cohesion Policy and Cities Includes concrete recommendations for actions covering issues such as –accessibility and mobility –innovation and the knowledge economy –actions for SMEs and micro-enterprises –promoting social inclusion –improving natural and physical environment –governance –financial engineering

URBAN Initiative The URBAN programmes have targeted small areas of severe deprivation, focusing on social inclusion, integration of minorities, the natural and physical environment. They have strengthened local partnership in management and built a systematic learning cycle, which has been further reinforced through a programme for the exchange of experience and best practice (URBACT ).

The Urban Acquis Integrated approach (social, environmental and economic measures combined in the target area) “Leverage effect”: mobilisation of public / private contribution Strong local partnership Cities’ direct involvment Capacity building Citizens participation Importance of small and medium/sized cities for regional development Exchange of experience (Urbact)

Regeneration The regeneration of existing public spaces and industrial sites can play an important role in avoiding suburbanisation and urban sprawl, thereby helping to create the conditions sary for sustainable economic development. More generally, by improving the planning, design and maintenance of public spaces, cities can ‘plan out’ crime, helping to create attractive streets, parks and open spaces which are safe and feel safe. In urban areas, the environmental, economic and social dimensions are strongly interlinked. A high quality urban environment contributes to the priority of the renewed Lisbon Strategy to make Europe a more attractive place to work, live and invest

Integrated approach For area-based actions, promoting social inclusion requires that actions seeking to improve the quality of life (including the environment and housing) or the level of services to citizens are combined with actions to promote the development of new activities and job creation in order to secure the long-term future of the areas concerned.

Neighbourhood Disparities