The future of LEADER/CLLD: DG AGRI's vision ELARD conference, 22 November, Tartu Mihail Dumitru Deputy Director General DG Agriculture and Rural Development 25 years of LEADER is a good opportunity to take stock of the experience collected to date. Jean-Michel has taken us to the roots of the initiative, reminded us of the philosophy behind it, the expectations and achievements. I was asked to speak about the future of LEADER. In fact, although we have only recently started implementation of the fifth round of LEADER, discussions are already ongoing about the next funding period post-2020. We need to remember that LEADER operates in the context of Rural Development Policy, but it has also become a territorial tool common to 4 Structural and Investment Funds, with a single set of rules (on the method) included in the Common Provisions Regulation. I would like to share with you some thoughts which could feed into discussions on shaping LEADER in the future. Let me therefore start with some facts and figures about the current period. I will then refer to the main developments and activities underway in DG AGRI and the Commission, which we expect will have an impact on the evolution of LEADER and CLLD. I will close with some remarks on the opportunities and challenges that stand before LEADER in the years to come.

LEADER/CLLD: facts and figures As we have heard, LEADER has gone a long way since it was launched in the early 90ies. From a Community initiative which was meant to test out a novel type of support for disadvantaged rural areas, LEADER has developed over the years into a territorial development tool, common to four major EU policies (rural development, fisheries, regional policy, and social affairs and inclusion), and now called "Community-Led Local Development (CLLD)". It has grown more than ten times in terms of the number of local action groups supported: we are expecting around 2500 rural LAGs, to be completed by fisheries partnerships and urban LAGs (the latter expected in 11 MS). In 20 Member States LAGs have more than one Fund at their disposal to support their local strategies. 18 Member States decided to apply CLLD in cohesion policy, allocating to it 1,8 bln euros from both ERDF and ESF. This is completed by a further 6, 9 bln euros coming from EAFRD and 0,5 bln from EMFF. Leader has become a model. Its extension to other policies was meant to be an opportunity to reach out to new target groups, including disadvantaged ones; to provide even more integrated support going beyond the scope of one policy area; to make the urban and rural linkages more easy; and to channel more funding to an area which would be spent on priorities established locally. This opportunity must be well understood and translated into programmes and strategies to make the best of the tool.

LEADER targets for 2014-2020: 54% of EU rural population to be covered As regards LEADER, MS are planning to cover more than half of the EU’s rural areas with local development strategies. By the end of last year, only 22% were covered. This shows that in some MS the selection has taken place this year or is still going to happen. MS have two years from the adoption of their Partnership Agreement to organise a first call and it's of crucial importance that they do so to allow LAGs enough time for the implementation and to limit the funding gap for LAGs between the last and the current period.

LEADER targets for 2014-2020: 44057 jobs to be created MS expect to create more that 44 000 jobs with the support from LEADER. By 2015, the contribution to this target was less clear; this is understandable given the time needed for the projects to be carried out and to achieve results. The (enhanced) annual implementation reports for 2017 will give us a better picture of the role played by LEADER in the local development of rural areas. The Managing Authorities are expected to show not only progress towards the EU targets on LEADER, but also use programme-specific and local indicators to capture the value added by LEADER for the countryside, including that related to governance.

Cork declaration In September more than 340 CAP stakeholders met in Cork to develop a new CORK declaration on the future of agriculture and rural areas "A better life in rural areas"; 20 years after Cork 1. The declaration addresses policy makers with clear recommendations for future policy developments. It has the backing of the entire spectrum of CAP stakeholders (farmers, environmental NGOs, local development groups, etc). The declaration gives particularly strong recommendations on the kind of policies needed to meet 21st century challenges and opportunities. It calls for a result-oriented CAP where expenditure is linked to targets that reflect well defined economic, social and environmental objectives as well as local needs. It calls for subsidiarity, streamlining of the CAP regulatory framework and reducing administrative burden. 4 working groups discussed different aspects of life in rural areas, one of them focussed in particular on rural viability. LEADER and CLLD where at the heart of these discussions.

Cork policy orientations The Cork Declaration has ten policy orientations: Rural prosperity Strengthening Rural Value Chains Investing in Rural Viability and Vitality Preserving Rural Environment Managing natural resources Encouraging climate action Boosting knowledge and innovation Enhancing rural governance Advancing policy delivery and simplification Improving policy performance and accountability These points have been summed up into 5 conclusions: Improve awareness of rural potential Invest in rural communities Develop agricultural and rural policies that are result oriented, simple and flexible, reflecting union objectives and local needs Systematically review other macro and sector policies through a rural lens Incorporate the ten point programme and the vision and orientations into future policy development Many of those fields are core business for LEADER and show the main directions towards which it could contribute. At the same time, the recommendations concerning policy simplification, improved performance and accountability are also going to have a direct impact on LEADER's future developments. The declaration includes numerous direct or indirect references to the importance of bottom-up approaches. They show the trust in the LEADER method and offer further food for thought on the role which LEADER and CLLD could continue to play or could take on in the future, e.g. The Declaration urges to "strengthen the integration of local initiatives and rural capacity building in mainstream EU policy making, in particular through bottom-up approaches to local development such as LEADER and Community-led local development". It highlights the role that interactive bottom-up approaches can play in fostering innovation directed towards economic growth and sustainability; along with research. "Rural and agricultural policies should build on the identity and dynamism of rural areas through the implementation of integrated strategies and multi-sectoral approaches". "Union policies should focus on integrated approaches to developing and strengthening rural value chains and local productive networks." "Union support should strengthen rural-urban linkages and align the sustainable development of both rural and urban areas" "the administrative capacity and effectiveness of regional and local governments and community-based groups must be enhanced (…). Building on the success of LEADER and the European Innovation Partnership for Agriculture, bottom-up and locally led initiatives should be rolled out to mobilise rural potentials." "Initiatives to restore and build the trust of stakeholders are a priority" Finally, some crosscutting pleas linked to policy delivery and simplification, as well as improving performance and accountability. The delivery system of LEADER can certainly benefit from them, e.g.: "Smart administrative tools and procedures must be developed, so as to reduce the administrative burden on beneficiaries and national and regional administrations. Proportionality in requirements and sanctions is important." "Policies must be accountable and fit for purpose. (…). Stakeholders must get a stronger roles in assessing performance through peer learning and performance reviews." The Cork declaration is a meaningful mirror of the current rural development policy, the needs of rural areas and the gap that needs to be addressed. Commissioner Hogan committed himself to give the declaration the most serious considerations. He believes it provides an important orientation for the up-coming debates on the future of rural and agricultural policies. However, implementation of the Cork Declaration is not a one-man job or a one- institution job. The participatory process from Cork must continue. Stakeholders and policy makers at EU, National, Regional and Local level, rural citizens must be involved to translate the orientations into effective policy initiatives.

Commission activities towards simplified and better law Proposal for Omnibus regulation ESIF High level group on simplification DG AGRI and ESIF studies Commission Work Programme 2017 Commissioner Hogan has been mandated by President Juncker to focus on simplification during his mandate. The purpose is to ensure that policies, the mechanisms chosen to implement them, and the necessary legal framework are never more complex than is necessary to achieve the intended objectives effectively. Farmers, local economic operators and other beneficiaries of the CAP, including LAGs and local communities, should not carry the burden of red tape and requirements which are not necessary to achieve the political objectives or to ensure sound management of taxpayer's money. For Rural Development, the 2014-2020 programming exercise was completed in December 2015. Thus, as a first step, it has been necessary to assess the use made by the Member States of the simplification options included in the new legal framework and to identify good practices which could be further disseminated. As regards LEADER, we have particularly encouraged the use of simplified cost options. DG AGRI together with ENRD has endeavoured to facilitate their use by providing guidance and organising a dedicated workshop. A series of simplification measures have are also proposed in the so-called Omnibus regulation (which includes CPR and Rural development regulation) proposed by the Commission in September this year. If adopted, the changes proposed will clarify the role of the LAGs in the selection of projects. They will also enable establishing simplified costs on the local level, thus allowing a LAG to negotiate estimated project budgets submitted by an applicant in order to establish lump sums. Another initiative concerning the ESI Funds, in which DG AGRI takes an active part, is the ESIF High Level Group of Independent Experts on Monitoring Simplification for Beneficiaries. Its mandate goes from July 2015 to February 2018 and the topics discussed include simplified costs options, financial instruments, gold plating and auditing. The group is identifying good practice concerning the reduction of administrative burden on beneficiaries; and making recommendations to improve the uptake of simplification measures for 2014-2020, in particular in view of the mid-term review in 2016, and on the way forward for the post-2020 regulatory framework for ESI Funds. New territorial tools such as LEADER and ITIs are on the agenda of the group for next year. DG AGRI also carries out its own studies and participates in ESIF studies, in particular, on the use of the simplification options chosen by Member States and on the harmonisation of ESIF with other EU instruments. All those activities demonstrate the strong commitment of the Commission to ensure that the support framework is as simple and efficient as possible. This orientation will certainly be maintained when making legislative proposals post-2020. Finally, the Commission’s work programme for 2017 plans to take this work forward and to launch a wide consultation on simplification and modernisation of the Common Agricultural Policy. This will focus on how to maximise the CAP contribution to the Commission's policy priorities and to the Sustainable Development Goals, without pre- empting the proposals for Multiannual Financial Framework post 2020.

Opportunities & challenges of LEADER/CLLD in the future Focus on results - allowing time to capture them Respect the method Build inclusive communities Facilitate integration of key players, sectors, delivery chain links Use the capacity to deliver innovative, inclusive and sustainable solutions Be resilient towards societal challenges Enhance complementarity between countryside and urban centres As regards LEADER in future, I see the following elements: Trust and enthusiasm of stakeholders has to be preserved. We are heading towards less complex support schemes, which are however more focussed on results. Rules for LEADER and CLLD need to be simplified. We cannot afford red tape suffocating the enthusiasm on the ground. At the same time LAGs will have to be prepared to demonstrate the value added of funding channelled through local development strategies. We have to allow time to capture these results. LEADER has evolved from a small Community initiative into a powerful governance and territorial development tool. However, if it is to survive its future must remain rooted in its principles. The 7 features of the method are the core elements which have to be respected. The regulatory framework has to ensure they can be used to their full potential and the bottom-up approach has to be fully respected. LEADER has an important role to play in connecting to local people, especially those parts of the community that are difficult to reach (marginalised, minorities, etc.). LAGs development work cannot therefore be reduced to job or income generation. This in turn also needs to be reflected when assessing the impacts of LEADER. LAGs can bring together key players in the area and facilitate their interaction. LEADER should be a laboratory of ideas: linking up different sectors and actors in the supply chain generates new approaches and opportunities. Some challenges have persisted (urban/rural divide) since LAGs first started operating, some are more recent (climate change, economic and social fragility in globalised economies, migration, …). As LAGs have the capacity to propose tailor made responses to new challenges, they cannot waste this potential. They have to be put in a position to make the most of it and be innovative in adapting to a rapidly changing world. There is no question of continuing the business as usual. Finally, LEADER/CLLD has a great potential to create links between cities and surrounding rural areas, based on their indigenous assets. Ways to enhance creation of partnerships in mixed areas or cooperation between urban and rural LAGs based on functional links should be further explored. To close let me assure you that LEADER has a prominent place in the rural development policy and as such it should be further promoted in the CAP. We will put each effort to make it more user friendly and we count on your contributions in this regard.

Your ideas are most welcome!