its financial instruments December 2004 EN Cohesion Policy and its financial instruments http://europa.eu.int/comm/regional_policy

EU Structural policy 2000-06 following enlargement 40% to 49,9% December 2004 EN EU Structural policy 2000-06 following enlargement 40% to 49,9% of EU population (155→224 Mio.) in eligible areas (Obj. 1&2) 213 to 233 bn. Euro for Structural funds by 2006 (one third of the EU budget) 400 to 480 Structural Funds’ programmes 211 to 264 NUTS 2-Regions

History Integration of the Structural funds 1989 1993 December 2004 EN History Integration of the Structural funds 5 common objectives Standardised administration rules Decentralised management Raising of the Structural funds' budget to 14 bn ECU p.a. (ca. 20% of EU-Budget) Introduction of a new Objective 4 Simplification of procedures New cohesion and fisheries instruments Raising of the Structural funds' budget to 32 bn ECU p.a. (ca. 30% of EU budget) 1994 1999 1989 1993 1960: The European Social Fund (ESF) enters into force 1974: Start of European Regional Development Fund (ERDF) 1957 1988 2000 2006 Concentration of regions covered and financial resources Phasing-out for some Objective 1,2 and 5b regions 3 common objectives Introduction of pre-accession instruments for candidates countries (ISPA)

Regional GDP per head in 2001 December 2004 EN Regional GDP per head in 2001 for EU27 in purchasing power parities < 50 50 - 75 75 - 90 90 - 100 100 - 125 >= 125 No data Index EU 25 = 100 Source: Eurostat

Funds Region EU Cohesion policy and funds linked Community policies: December 2004 EN EU Cohesion policy and funds Funds ERDF ESF EAGGF FIFG Cohesion Fund Regional development linked Community policies: State Aid Sustainable development Equal opportunities RTD SME promotion Information society Employment and social integration EU cohesion policy Rural development Region analysis, multi-annual programming, management, co-financing, evaluation Other EU policies and concepts: Lisbon/Gothenburg strategy, enlargement, budget, institutional Reform, Global influences: general economic development, foreign investment, national policies

Legal framework TEC December 2004 EN Council by unanimity, assent of EP, comments by ECS/CoR ERDF, ESF: Codecision EAGGF, FIFG, Cohesion Fund, General Regulation (EC) 1260/1999 on Structural Funds ERDF Regulation ESF Regulation EAGGF Regulation FIFG Regulation Cohesion Fund Regulation Commission‘s Regulations: EAGGF/SAPARD Regulations Regulation on Information/Publicity Eligible expenditure Financial control Financial corrections TEC Art. 161 Art. 162 Art. 148 Art. 37 Commission‘s Decisions: Decisons (Objective 1 and 2 regions) Communications (Community initiatives) Decisions on single programmes

Programming cycle 1 2 3 4 5 regulatory framework financial means, December 2004 EN Programming cycle 1 regulatory framework financial means, eligible regions/areas 2 regional analysis (SWOT), strategy, plan/programme draft/complement 3 negotiations: Member State/region-Commission 4 programme decision 5 programme management project selection evaluation/ modification

The Structural Funds and Instruments 2000-2006 (1) December 2004 EN The Structural Funds and Instruments 2000-2006 (1) ERDF ESF EAGGF-G FIFG European Regional Development Fund Social Agriculture Guidance and Guarantee Fund- Guidance Section Financial Instrument of Fisheries Guidance Infrastructure Investments RTD SME ... Vocational Training Employment Subsidies of rural areas Investment in tourism of Fishing Areas Modernising Fisheries' Industries Cohesion Fund for Member States with a GDP below 90% environmental and trans- port (TEN) infrastructure (project selection)

sustainable development December 2004 EN The Structural Funds and Instruments 2000-2006 (2) Community Initiatives INTERREG III URBAN II EQUAL Leader+ cross-border, transnational and inter- regional co-operation development of deprived urban areas transnational networking and exchange strategies for sustainable rural develop- ment ERDF Infrastructure sustainable development planning studies culture RTD SME ... ERDF Infrastructure public transport employment social inclusion culture information SME ... ESF innovative employment actions in EU networks EAGGF-G local action groups

December 2004 EN EU Structural Funds 2000-06 Amounts available in billions of Euro; for new Member States: 2004-2006 Objective 1 Objective 2 Objective 3 Community Initiatives Cohesion Fund Objective 1 Objective 2 Objective 3 Community Initiatives Cohesion Fund 60 AT BE CY CZ DK EE FI FR DE GR HU IR IT LV LT LU MT NL PL PT SK SL SP SW UK 50 40 30 20 10

December 2004 EN

Narva, Estonia: ISPA finances better environment December 2004 EN Narva, Estonia: ISPA finances better environment Several environmental projects in Estonia focus on waste water treatment. These projects include the improvement of the facilities in Narva City and Viljandi.

Bremen, Germany: new enterprises in old buildings December 2004 EN Bremen, Germany: new enterprises in old buildings The “Lichthaus” is a former workers’ council building, belonging to a bankrupt shipbuilding area. Funded by the URBAN initiative, it now hosts 10 new media companies and has created 50 new jobs.

Valencia, Spain: new motorway December 2004 EN Valencia, Spain: new motorway Cofinanced by the European Regional Develpment Fund, Objective 1.

Porto, Portugal: funding of biotechnology facilities December 2004 EN Porto, Portugal: funding of biotechnology facilities The University of Porto in the Norte region has received funding for new laboratories.

Northumberland, UK: energy from windmills December 2004 EN Northumberland, UK: energy from windmills Within the Northern Energy Initiative in Northumberland, Northeast England, the ERDF has financed this windmill park.

Cohesion Policy 2007-2013 3 Objectives Budget: € 336.1 bn December 2004 EN Programmes and Instruments Eligibility Priorities Allocations Convergence objective 78.5% including a special programme for outermost regions (EUR 264 bn.) Regional and national programmes ERDF ESF Cohesion Fund Regions with a GDP/head 75% of average EU25 Statistical effect: 75% of EU15 and >75% in EU25 Member States GNI/head 90% EU25 average innovation; environment/ risk prevention; accessibility; infrastructure; human ressources; administrative capacity transport (TENs); sustainable transport; environment; renewable energy 67.34% = 177.8 bn. EUR 8.38% = 22.14 bn. EUR 23.86% = 62.99 bn. EUR Cohesion Policy 2007-2013 3 Objectives Budget: € 336.1 bn (0.41% of EU-GDP) Regional competitiveness and employment objective 17.2% (EUR 57.9 bn.) Regional programmes (ERDF) and national programmes (ESF) Member States propose a list of regions (NUTS I or II) "Phasing-in" Regions covered by objec- tive 1 in 2000-06 period and not covered by the convergence objective Innovation environment/risk prevention accessibility European employment strategy 83.44% = 48.31 bn. EUR 16.56% = 9.58 bn. EUR European territorial co-operation objective 3.94% (EUR 13.2 bn.) Cross-border and transnational programmes and networking (ERDF) Border regions and greater regions of co-operation innovation; environment/ risk prevention; accessibility culture, education 35.61% cross-border 12.12% ENI 47.73% transnational 4.54% f. networks