Mechanisms under the Human Capital OP counteracting economic slowdown Paweł Chorąży Director Department for ESF Management Ministry of Regional Development Poland ESF Technical Working Group Paphos, June 2009 Ministry of Regional Development - 2018-12-04

Macroeconomic situation in Poland In comparison to the EU, the effects of the economic slowdown in Poland are delayed According to the Polish central bank prognosis the biggest slowdown of the Polish economy is expected in 3Q 2009 Ministry of Regional Development - 2018-12-04

Macroeconomic situation in Poland The unemployment rate has gone up from the beginning of 2009 (from 9.5% in 4Q 2008 to 11.2% in 1Q 2009) Ministry of Regional Development - 2018-12-04

Pillar 1. Raising the ESF contract level Main measures undertaken by the ESF Managing Authority in Poland in the context of economic slowdown are based on 4 pillars: Pillar 1. Raising the ESF contract level Pillar 2. Improving procedures and introducing new ones to speed up application process Pillar 3. Broadening support and introducing new instruments supporting professional activity Pillar 4. Legal changes broadening the scope of State aid schemes in accordance with the Communication from the Commission — „new measure” up to 44.2% of ESF total allocation for 2007-2013 by the end of 2009 Ministry of Regional Development - 2018-12-04

Scale of anti-crisis measures under the HC OP projected contraction level for 2009: ca. 4.1 bln EUR (44.2% of HC OP allocation for 2007-2013) of which direct anti-crisis measures in 2009: ca. 200 mln EUR up to 44.2% of ESF total allocation for 2007-2013 by the end of 2009 Ministry of Regional Development - 2018-12-04

Pillar 1. Raising the ESF contract level up to 44.2% of ESF total allocation for 2007-2013 by the end of 2009 Ministry of Regional Development - 2018-12-04

Purpose / main principles Pillar 2 Pillar 2. Improving procedures and introducing new ones to speed up application process Mechanism „Fast assessment track” in the application procedure Purpose / main principles application assessment period is shortened to 30 days the shortened procedure can be used in 2009 and 2010 this solution can be used by the Institution Organising the Call for proposals (IOC) in order to select the projects that are directed at people in danger of unemployment or the unemployed (especially concerning outplacement projects) using such a mechanism is justified if an area is suffering from the economic slowdown that can contribute to the mass redundancy Entry into force 1 April 2009 Ministry of Regional Development - 2018-12-04

Purpose / main principles Pillar 2 Pillar 2. Improving procedures and introducing new ones to speed up application process Mechanism Annex contracts with the beneficiaries who already are implementing the projects concerning starts up allowances and „bridging support” Purpose / main principles to increase the value of projects and direct support to a greater number of people in shorter time additional amount of funds allow to provide support to those project participants who did not receive it previously, because of limited project budget Entry into force June 2009 Ministry of Regional Development - 2018-12-04

Purpose / main principles Pillar 2 Pillar 2. Improving procedures and introducing new ones to speed up application process Mechanism Increasing the allocation of call for proposals Purpose / main principles flexible financial management in the time of economic slowdown it allows to increase the number of projects corresponding to the local labour market needs Entry into force June 2009 (dependent on the timetables of call for proposals) Ministry of Regional Development - 2018-12-04

Purpose / main principles Pillar 3 Pillar 3. Broadening support and introducing new instruments supporting professional activity Mechanism Implementation of „rapid reaction” projects Purpose / main principles regional Intermediate Bodies in the region could decide to implement such systemic project the aid operator could deliver immediate support to the workers from the companies undergoing restructuring (including e.g. counselling, training or job-search assistance and allowances) Entry into force August/September 2009 Ministry of Regional Development - 2018-12-04

Purpose / main principles Pillar 3 Pillar 3. Broadening support and introducing new instruments supporting professional activity Mechanism Broadening the scope of support in outplacement projects to the start-up grants and „bridging support” Purpose / main principles it allows to deliver more comprehensive support under one outplacement project to workers in companies undergoing restructuring Entry into force June 2009 Ministry of Regional Development - 2018-12-04

Purpose / main principles Pillar 3 Pillar 3. Broadening support and introducing new instruments supporting professional activity Mechanism Imposing additional project selection criteria related to economic slowdown Purpose / main principles the criteria will be proposed by the Managing Authority for specific types of operation and then approved by the Monitoring Committee the criteria will be set on the basis of the needs analysis of the target groups that suffer from the economic slowdown i.e.: 10% of project target group are people whose job contract has been terminated due to reasons not concerning the worker the outplacement project is implemented in partnership with the company undergoing restructuring Entry into force June 2009 Ministry of Regional Development - 2018-12-04

Purpose / main principles Pillar 3 Pillar 3. Broadening support and introducing new instruments supporting professional activity Mechanism Mobility (relocation) allowance Purpose / main principles new instrument of support delivered in the HC OP projects aimed at re-integration into employment (as a part of a broader set of services, including also e.g. counselling, training or job-search assistance) one-off allowance could be offered to those project participants who take up a job in place located more than 50 km from the present place of living in order to cover commuting expenses or costs of settling in a new place it will be an equivalent of six unemployment benefits – 3.45 thousand zlotys (ca. 775 euros) the allowance will be irreclaimable if the worker keeps his new job for at least 3 months Entry into force June/July 2009 Ministry of Regional Development - 2018-12-04

Purpose / main principles Pillar 3 Pillar 3. Broadening support and introducing new instruments supporting professional activity Mechanism Top-up compensation Purpose / main principles complementarity with the European Globalisation Adjustment Fund new instrument of support delivered in the HC OP projects aimed at re-integration into employment (as a part of a broader set of services, including also e.g. counselling, training or job-search assistance) one-off allowance could be offered to those outplacement project participants who take up lower-paying job than the previous one it will be an equivalent of three times the difference between the old (i.e. higher) and the new (i.e. lower) wage, with a maximum of 4 thousand zlotys (ca. 900 euros) the allowance will be irreclaimable if the worker keeps his new job for at least 3 months Entry into force June/July 2009 Ministry of Regional Development - 2018-12-04

Purpose / main principles Pillar 4 Pillar 4. Legal changes broadening the scope of State aid schemes in accordance with the Communication from the Commission — „new measure” Mechanism Law changes in the scope of State aid schemes Purpose / main principles introducing de minimis aid for training & consultancy projects implementing Temporary framework for state aid measures into training & consultancy projects the aid schemes are being prepared by the Managing Authority Entry into force October/November 2009 Ministry of Regional Development - 2018-12-04

Thank you for your attention Ministry of Regional Development Department for ESF Management www.efs.gov.pl zarzadzanieefs@mrr.gov.pl Thank you for your attention Ministry of Regional Development - 2018-12-04