What does the Community want? Structural funds What does the Community want? European identity Competitive industry Supporting small firms & innovation Skilled workforce Reduction of regional differentials Elimination of Social Exclusion Protection of the environment

Regional development Needs central support Is locally directed Is consistent across the Union Should assist the implementation of all EU policies Should involve local bodies in decisions and delivery

Guiding Principles intervention in economic development plurality social solidarity decentralisation of decision making

AGENDA 2000 EU Regional Policy EU funding regimes implement the EU’s defined policy objectives agreed by the Member States. These objectives are set out in policy documents, most recently: AGENDA 2000

AGENDA 2000: Aims Internal policy conditions for sustainable growth and employment A knowledge based society Modernising employment & improving living conditions The Common Agricultural policy Reform of the CAP

AGENDA 2000: Aims Economic and Social Cohesion Reducing disparities in economic and social development Concentration of funds on regions in greatest need of economic development or industrial restructuring Structural support for new Member States Enhancing cost effectiveness

Three Structural Funds European Regional Development Fund European Social Fund European Agricultural Guidance and Guarantee Fund and one financial instrument: Financial Instrument for Fisheries

The ERDF The European Regional Development Fund aims to reduce the gaps in development between the regions. Primarily the fund provides support for the creation or modernisation of economic infrastructure, which contributes to the development, or conversion of the regions concerned. Support is available for: Capital projects such as investment in transport infrastructure, telecommunications, tourism projects, research and development facilities or training centres. Business support projects such as technology transfer, supply chain management or new product development.

The ESF The European Social Fund is the European union’s main tool for developing human resources and improving the workings of the labour market throughout the union. The fund aims to improve employment opportunities by providing financial support for vocational training and job creation measures.

The EAGGF (Guidance section) This fund assists in the adaptation of agricultural structures and in developing and diversifying the Community’s rural areas. The fund divides into two sections: Guidance and Guarantee (CAP). The Guidance section essentially covers grants, mostly contributing to the multi- annual operational programmes operating under the criteria of the Structural Fund Objectives 1, 2, 5a, 5b and 6. It supports: The improvement of marketing and processing conditions for agricultural products. Improvements in the structure of agricultural holdings. The protection of environmentally sensitive areas.

Objectives Future Objectives (2000-2006) Objective 1 - promoting the development of the poorest regions. Objective 2 - support for areas faced with structural problems associated with socio-economic regeneration. Objective 3 - human resource development (ESF only)

Implementation A programme for each region covering a single objective using one or more funds meeting regional needs

EU Programmes Rationale Development Additionality Subsidiarity Respond to regional priorities Respond to EU priorities Plurality & partnership Development Iterative process - national/commission & regional actors Review & negotiation Implementation to Plan Management at Regional level

The steps to create an operational programme Regional Development Plans indicate regional priorities Community Support Frameworks a Commission response on context & strategy Single Programming Document specifies context, strategy, priorities & measures

Regional Development Plan The RDP is developed locally and aims to provide a clear steer for those using it to focus on regional priorities and to understand the types of project that are likely to be supported. The strategy will develop the national framework of priorities, which will be set out in the National Devellopment Plan (prepared by central government) to provide:

Regional Development Plan a) strategic objectives, that accurately reflect the needs of the region; b) clear priorities for action based on an analysis of information about the region and consultations with a wide range of organisations c) guidance on the type of projects and approaches that will be encouraged

Community Support Framework: Structure 1 Regional Development Context & Analysis 2 Regional Development Strategy & Forms of Assistance 3 Financial Tables & Additionality 4 Implementation of the Community Support Framework

Community Support Framework Regional Development Context & Analysis The plan’s goals The key role of the Common Task Measures for vocational training and employment promotion The effort for agricultural and fishery reconstruction and rural development Other sources of European financial support

Community Support Framework Regional Development Context & Analysis basic infrastructure production and use of energy the border areas the productive sector the services sector research and development capability human resources potential agriculture and rural development rural areas fisheries

Community Support Framework Development priorities Support for productive investment and accompanying production related infrastructure Measures to support small and medium-sized enterprises Measures to promote research and technological development as well as innovation Measures to protect and improve the environment Measures to promote the development of human resources, vocational training and further training as well as employment Measures to promote agriculture, the development of rural areas and fisheries Technical assistance

Community Support Framework The Environmental impact Legal framework for the improvement of the protection of the environment in the new Federal Lander the role of the environmental authorities in the implementation of the Community Support Framework Financial Tables and Additionality EIB lending ECSC reconversion loans under Article 56 of the ECSC Treaty Additionality

Typical regional targets Industrial Restructuring Improvement in employment in the area; Improvement of the business structure in the area; Improvement in the level of company services; Improvement in product quality, company technical skills and levels of innovation Improvement of productivity; Increase in the rate of SME formation; Increase in the survival rate of SMEs; Improved networking between customers and suppliers to increase opportunities for local supply Improvement of attractiveness of the area for investment (foreign or local); Improvement in the areas image; Improvement in the level and application of technology; Increased provision of appropriate facilities for new technologically based companies; Encouragement of new enterprises to utilise new technologies and production methods in growth sectors; Increase in business expenditure on R & T D; and Establishment of Centres of Excellence: (Key growth)

Single Programming Document Results from negotiations combines aspects of regional plan and community support framework is the detailed basis for the operational programme has targets to be met

Typical regional targets Labour Market Issues Creation of new employment opportunities; Maintenance of employment at such a level that demand for and supply of labour is closer to balance; Development of such training and educational structures to respond better to the needs of business, particularly in the area of specific high level skill needs in new and emergent technologies; Co-operation between educational and research organisations and businesses; Introduction of training plans and programmes into established enterprises (particularly medium-sized enterprises) and evidence that this will lead to investment in human resource development; Graduate retention and regional opportunities for graduates; Fostering innovation and the use of new technologies in SMEs; and Increasing the number of people with technological qualifications in appropriate growth sector

Typical regional targets Rural Development Improvement of agricultural product quality or reorientation to meet demand; Other developments in area of product processing, handling, storage and packaging; Development of by-product recycling; Reduction of adverse environmental impacts associated with production; Scale of producer and marketing groups to reach minimum levels for appropriate agricultural sectors as defined by the relevant Ministry; Collaborative marketing of tourism and recreation activities based on the rural environment; Increased rural tourism per capita expenditure; Increased regional income and employment from tourism; Improvement in the number and quality of tourist facilities; Improvement in quality and quantity of rural tourist accommodation and facilities; Improved skills of those employed in tourist trade; Ensuring the retention, in a good state, of the region’s most historic sites and buildings; Demonstrate an integrated approach to village development; The conversion of redundant farm buildings to non-agricultural economic activity; Community enterprise development schemes (ie. Grass-roots local initiatives): a) helping people to access appropriate education; b) to provide them with the skills needed to enter training; c) to facilitate easier access to training; and d) to help them to get real jobs

Measures Must use one structural fund Must reflect a priority Must reflect an element of need May focus on a cross cutting theme May reflect one element of the priority, by industry or type of activity

Participation Should include the major public bodies Should include the representatives of the main economic actors, e.g trade unions May include direct involvement of the private sector Must have a formal structure Is usually led by Central Government representatives

Criteria Must Should reflect the overall priorities of the programme be applied to each measure reflect the goals of the single programming document be quantifiable be objective Should reflect the overall priorities of the programme reflect the impact of the project on the cross cutting themes

Selection process is vital to the programme should be transparent, all aspects of the decision making clear must be based on the criteria should be prompt should facilitate the execution of the programme should be unbiased

Project Selection Criteria Core A demonstration of additional benefit to the region as a result of the programme A demonstration of need for programme support

Project Selection Criteria Job creation or attainment of other relevant specified outputs; Leverage of extra investments, especially from the private sector; Value for Money, including the cost per unit Level of disadvantage in the geographic area of the project;

Project Selection Criteria Collaborative or partnership venture, particularly those involving the private sector The innovative character of the project Synergy with other schemes and measures; The extent of support from other partners; The strategic nature of the project in the regional context Positive environmental impact

Project Selection Criteria (Preferential) Comprehensive area-based regeneration effects Contribution to more than one of the three programme components: industrial restructuring, labour market issues, rural development Significant contribution to regional competitiveness

Optional group work session In groups of six responding to local priorities develop an aspect of a programme

Construct an Operational Programme Base this on the given draft Create Measures Criteria Eligible bodies Selection process