The Role of the European Commission in Fostering Local Development OECD LEED "Building Development Strategies for Cities and Regions", Trento 23-27 October 2006 OECD LEED Programme: Building Development Strategies for Cities and Regions The Role of the European Commission in Fostering Local Development Rovereto - Trento, Italy Wednesday 25, October 2006 By Sue BIRD European Commission DG Employment, Social Affairs and Equal Opportunities

What is Local Employment Development? Activities to develop employment locally, involving key local actors, generally in partnership with other EU, national, or regional stakeholders Everything has a local dimension Promoting the local dimension of Lisbon and the European Employment Strategy

OECD LEED "Building Development Strategies for Cities and Regions", Trento 23-27 October 2006 The Lisbon Strategy EU lagging behind in terms of GDP per capita, employment, productivity rates Need to face up to challenges of demographic change, global economic integration, new technologies, enlargement Perception that EU coordination needed (governance) EU to become the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth, with more and better jobs, greater social cohesion, respect for the environment

Mid-Term Review of the Lisbon Strategy A new partnership with Member States based on a simpler reporting system and greater ownership A Community Lisbon Programme (20 July 2005), setting out action at EU level (knowledge and innovation, making Europe more attractive, more and better jobs) An Annual Progress Report (every January) to review progress for the Spring European Council

Mid-Term Review of the Lisbon Strategy New integrated EU Guidelines for Growth and Jobs (2005-2008), combining Broad Economic Policy Guidelines (BEPGs - covering macro- and micro-economic policies), the Employment Guidelines (EGs - for employment policies) Member States to develop National Reform Programmes for 2005-2008 (Autumn 2005), with updates in 2006/2007

The Lisbon Strategy for Growth and Jobs More people working 63.8 % of the EU’s working age population has a job (target 70% will make Europe more productive and will finance welfare - but, only +/-67% by 2010) Give people of all ages real help to find work By end 2007, offer education leavers job/training within 6 months Affordable childcare, gender equality, better “work-life balance” More training, opportunities and incentives for the over 45s “Social summit” in autumn 2007

European Employment Strategy Common European guidelines and recommendations Annual national action plans for employment Monitoring, evaluation and mutual learning at EU level (open method of coordination) Member States have responsibility for implementation A policy framework which complements EU action in the field of employment (legislation, social dialogue, European Social Fund)

The EES and the Lisbon Agenda + Macro-economic policy coordination stability and growth pact, monetary policy Micro-economic reforms industrial policy, innovation and R&D, reforms in product, service and financial markets Employment policy coordination attracting more people, adaptability of workers and enterprises, investment in human capital Sustainable Development Strategy Coordination on social protection & social inclusion EES  The Lisbon Strategy initiated a comprehensive set of structural reforms. The EES is the employment pillar.

European Employment Strategy - Employment Guidelines (2005-2008) Introductory text to Employment Guidelines for 2005-2008 (integrated guidelines 17-24): "In taking action, Member States should ensure good governance of employment policies. They should establish a broad partnership for change by involving parliamentary bodies and stakeholders, including those at regional and local levels. European and national social partners should play a central role."

European Employment Strategy - Commission's Annual Progress Report 2006 "… as the Lisbon Strategy is a medium- to long-term agenda requiring implementation on the ground, the sustained involvement of parliaments, local governments, social partners and civil society is essential"

EU Support for Local Employment Development (LED) 1986: LEDA Programme 1993: White Paper on Growth, Competitiveness and Employment 1997: Territorial Employment Pacts (TEPs) 1997: European Employment Strategy (EES) 2001: Communication Strengthening the local dimension of the European Employment Strategy (2001) 2005: Strategy for Growth and Jobs - for EES European Social Fund - EQUAL, Article 6, global grants

Current LED Support Raising awareness of EES at local level, and of LED Identifying, sharing, disseminating and promoting good practice, issuing guidance Encouraging co-operation, at all levels, and promoting partnerships Exchange of experiences between projects in similar situations Building on the experience of a wide range of LED activity

European Commission LED activities Joint work with the OECD LEED programme IDELE: Identification, Dissemination and Exchange of good practice in Local Employment Development (2004-6) Grants towards pilot projects (Preparatory Measures 2000-3) Practical Handbooks for Local Employment Strategies (2004-7) Benchmarking & Local Employment Development (2005) New Member States and Local Employment Development: taking stock and planning for the future (2005-6) Linking Local Actors (2006-7)

LED - What Questions Do We Ask Ourselves? What are common factors, and what is transferable? How to overcome barriers to local action, under different kinds of geographical, economic and political circumstances? How can local strategies be effective in giving focus, purpose and integration to policy actions of all kinds? How can locally influenced action help to create and enhance a spirit of entrepreneurship and enterprise? How can local activities be persuaded to move from grant-based funding to sustainable development?

Emerging Issues (1) A lot is going on out there! No 'one-size fits all'… BUT common factors and issues Governance issues: "wired up" to other levels, flexibility Effective where local strategies/action plans are developed – should link vertically and horizontally Local authorities play a crucial role in LED … BUT leadership not ownership Maximise local assets Local action profits from strong social and trust relationships

Emerging Issues (2) Finance: avoid grant dependency, sustainability, attract capital Best practice in LED often comes from organisations formed as companies May exist because of, or in spite of, external policies and environment (and can change over time) National governments can: provide commitment, acknowledge diverse needs at local level, remove barriers to partnership, balance accountability with freedom and flexibility Have to work harder at involvement of private sector Do not always need radical overhaul – adapt existing structures

Emerging Issues (3) But… Objective is not creation of partnerships, but delivery of effective and efficient (public) services, responsive to local needs, that have a positive impact Crowded platforms problem in some areas Limits to the "local" – local level cannot/should not be involved in everything (if local is not appropriate, move to next level up)

Cohesion Policy 2007-2013 More strategic approach - revised Lisbon Strategy, Integrated Guidelines 3 Funds: ERDF, ESF, Cohesion Fund 5 New Regulations Commission's "Community Strategic Guidelines" for cohesion "National Strategic Reference Frameworks" – produced by Member States Operational Programmes in each Member State

European Social Fund (ESF) (1) ESF Regulation 2007-2013, Article 3: "… the involvement of local communities and enterprises and the promotion of local employment initiatives" "Promoting partnerships, pacts and initiatives through networking of relevant stakeholders, such as social partners and NGOs, at national, regional, local and transnational level…" "Strengthening institutional capacity and the efficiency of public administrations and public services at national, regional and local level…"

European Social Fund (ESF) (2) ESF Regulation, Article 5: "Its support shall be designed and implemented at the appropriate territorial level taking into account the national, regional and local level according to the institutional arrangements specific to each Member State" "The Member States shall ensure the involvement of the social partners and adequate consultation and participation of other stakeholders, at the appropriate territorial level…" Article 6: "Member States shall promote a balanced participation of women and men in the management and realisation of the operational programmes at local, regional and national level, as appropriate"