John Bachtler, European Policies Research Centre, University of Strathclyde 1 Budget debate – answers? Leaked budget paper gives some ideas on the thinking of the Commission President (Secretary-General, DG Budget, BEPA): focus on three key axes: –sustainable growth and jobs – research, skills, convergence, innovation –climate and energy – energy efficiency, mitigation and adaptation –global Europe – poverty, migration management, neighbourhood cooperation budgetary discipline - stable budget of 1% of GNI? reform of EU financing –replacement of VAT by new own resource –phasing out of all correction mechanisms (over time) delivery –simplified procedures – delegation of financial control to Member States –more use of performance incentives, conditionalities –differentiation of management/control requirements based on capacity

John Bachtler, European Policies Research Centre, University of Strathclyde Rethinking Cohesion policy: reform proposals Proposals by Barroso in the leaked budget paper Proposals in the Barca Report Points of agreement and difference Key questions

John Bachtler, European Policies Research Centre, University of Strathclyde 3 Cohesion policy reform: Barroso proposals Structure/spatial focus of the policy –concentration on national convergence, and regional disparities within countries –questioning of value of Objective 2 – possible redirection of Competitiveness funding to areas like research, innovation and TENS –strengthened focus on cross-border cooperation –extended use of adjustment instruments in response to external shocks – economic crises, natural disasters, terrorism, public health emergencies Thematic focus - limited number of priorities –human capital development –infrastructure connections between lagging areas and growth centres –climate & biodiversity investments (climate proofing) –research and innovation

John Bachtler, European Policies Research Centre, University of Strathclyde 4 Cohesion policy reform: Barroso proposals Performance –strengthened conditionality based on agreed and measurable objectives –improved evaluation mechanisms –more use of performance indicators and incentives/sanctions Delivery –separation of European Social Fund from ERDF? –Single Strategic Framework for all Community funds under shared management (Cohesion, rural development, maritime) –more support for institutional capacity – know-how, networks

John Bachtler, European Policies Research Centre, University of Strathclyde 5 Cohesion policy reform: Reaction to Barroso proposals Critical comment from REGI (EP), CPMR and AER, and other regional networks Main objections –de facto renationalisation of Cohesion policy –downgrading of multi-level governance – no recognition of regional and local issues/interests or involvement –removal/downgrading of Objective 2 – “potential exclusion of 200 regions” –separation of ESF from Cohesion policy –shift of resources from lagging-behind regions to other policy areas