Key features of the draft cohesion policy and ETC regulations 2014-2020

Structure of my presentation Main objectives and principles for the future cohesion policy as a whole Key features of the draft ETC Regulation Timeline, next steps

Main cohesion policy objectives and principles for 2014-2020

Objectives Reduce disparities between Europe's regions strengthening economic, social and territorial cohesion Deliver the Europe 2020 strategy objectives of smart, sustainable and inclusive growth

Connecting Europe Facility Proposed EU budget 2014-2020 Cohesion Policy 33 % (€336 billion) Other policies (agriculture, research, external etc.) 63 % (€649 billion) Connecting Europe Facility 4 % (€40 billion)

Legislative package General regulation Common provisions for cohesion policy, the rural development policy and the maritime and fisheries policies Common provisions for cohesion policy only (ERDF, ESF, CF) Fund-specific regulations for ERDF, ESF, CF Specific ETC Regulation EGTC regulation Delegated acts (Art. 290 TFEU) Implementing acts (Art. 291 TFEU) Article 1 Article 1(3): GenReg + Chapter I of ERDF apply, Unless otherwise provided or applies logically to IGJ goal only

Principles: Reinforcing effectiveness and performance Conditionalities: Ex-ante (not applicable to ETC) Macro - economic (not applicable to ETC) Performance framework Clear and measurable milestones and targets Performance reserve (not applicable to ETC) Ex-ante conditionality Ensuring conditions for effective investment are in place Performance framework for all programmes Clear and measurable milestones and targets Focus on results Common & programme-specific indicators, reporting, monitoring & evaluation Performance reserve 5 % of national allocations (by Member State, fund and category of region) Macro-economic conditionality Alignment with new economic governance

Thematic concentration Research & innovation Information and communication technologies (ICT) Competitiveness of Small and Medium-sized Enterprises (SMEs) Shift towards a low-carbon economy Climate change adaptation & risk prevention and management Environmental protection & resource efficiency Sustainable transport & removing bottlenecks in key network infrastructures Employment & supporting labour mobility Social inclusion & combating poverty Education, skills & lifelong learning Institutional capacity building & efficient public administrations

Succession of strategic documents: Common Strategic Framework (CSF) Partnership Contract Operational Programmes CSF – adopted on the EU level Content (selected features): EU2020 objectives translated into key actions for each CSF fund Priority areas for cooperation activities for each CSF fund, taking account of macroregional strategies Coordination mechanisms for ensuring coherence among CSF funds Comprehensive investment strategy: aligned with Europe 2020 objectives Coherence with National Reform Programmes Coordination: cohesion policy, rural development, maritime & fisheries funds Objectives and indicators to measure progress towards Europe 2020 targets Effectiveness: introduction of a performance framework Efficiency: reinforcement of administrative capacity, cutting red tape

Succession of strategic documents: Partnership Contract Agreed between COM and a Member State (MS) for the period 1.1.2014 – 31.12.2020 Content (selected features): Analysis of disparities and development needs Milestones and targets (coherent with EU2020 objectives) Main priority areas for cooperation (incl. macroregional strategies) Integrated approach to territorial development and coordination among CSF funds Comprehensive investment strategy: aligned with Europe 2020 objectives Coherence with National Reform Programmes Coordination: cohesion policy, rural development, maritime & fisheries funds Objectives and indicators to measure progress towards Europe 2020 targets Effectiveness: introduction of a performance framework Efficiency: reinforcement of administrative capacity, cutting red tape

...and Investment priorities Each thematic objective is translated into “investment priorities” (in Fund-specific regulations) For ETC: Art.5 of the draft ERDF Regulation + Art.6 of the draft ETC Regulation Flexibility for a programme to choose an optimal mix of them

Streamlining delivery Aim: to make life simpler for beneficiaries Harmonisation and clarification of basic rules (for regional, agriculture and fisheries funds) Accreditation instead of compliance assessment Increased proportionality in controls Wider application of simplified costs (flat rates, lump sums and unit costs) E- cohesion policy

Key features of the draft ETC Regulation 2014-2020 (CBC elements)

Financial resources proposal: 11,7 bn € Transnational 2,4 bn € Interregional 0.7 bn € Population = criterion for breakdown by Member State 75% co-financing rate Cross border 8,6 bn €

Thematic concentration 4 thematic objectives for cbc and transnational Interregional can cover all thematic objectives Definitions of investment priorities in ERDF Regulation apply Additional elements in ETC Regulation: ESF-type actions legal and administrative cooperation and cooperation between citizens and institutions macro-regional strategies (transnational)

Decision on eligible areas – cross border programmes COM to adopt the list of cross-border areas to receive support by programme (at NUTS 3 level) Based on preliminary discussions with programmes Continuity encouraged, adjustements possible Addition of adjacent NUTS 3 regions may be proposed when submitting draft programmes to COM

Content of programme documents Strategy for a programme contribution to Europe 2020 Justification for choice of thematic objectives and corresponding investment priorities, indicators More detailed implementing provisions Confirmation of agreement to programme content in writing and commitment to provide necessary co-financing COM to adopt programme model

Selection of operations Concept of sole beneficiary Beneficiaries to fulfil all four cooperation criteria: development, implementation, staffing and financing of operations MA to provide lead beneficiary with document setting out conditions of support, including products and services to be delivered and time-limit for execution

Eligibility of expenditure Common Provisions Regulation rules Specific ETC rules proposed by the COM (optional) Rules adopted by the Monitoring Committee for the programme as a whole National rules (as the last resort)

New territorial options Community-led local development Integrated territorial investment Joint Action Plan Adapted to multi-country context Article 9 CLLD  Art. 28 Article 8 JAP  Art. 93(1) GenReg Article 10 ITI  Art. 99(3) “sustainable urban development”  Chapter III ERDF ?? ITI ≠ integrated terr development under TN Article 10 ERDF “particular attention to addressing the specific difficulties” [does not apply]  Art. 111(4) GenReg [applies] islands, mountain areas, sparsely populated areas

Management and control – main changes N+3 rule Authorities´ changes Managing Authority (MA) to do also CA work, need for accreditation Strenghtened joint management (if possible): MA to do the first level control AA to do the control work on all programme area Annual clearance of accounts and closure of finalized projects Proportionality for controls Lighter annual reports Article 20 Designation of authorities MA = CA (NOT an option) Article 21 EGTC overrules Art. 113 GenReg Art. 113(7) intermediate body for ‘global grant’ Article 22 Functions of MA Article 23 Functions of AA Article 24 Accreditation

Timeline, next steps

Timeline 2012-13(?) 2011 │ 23 Regulations + budget negotiated (Council+EP) and adopted Regulations proposed 2012: CSF in public consultation - adopted Timeline 2012-13(?) 2011 CSF proposed (December) List of eligible areas for cooperation (implementing act) Adoption 3 months later Partnership contracts Cooperation programmes + Ex-ante evaluations Submission 3 months later Submission 6 months later 16 November 2011 Monitoring Committee AT-CZ cross border cooperation programme, 30 November-1 December 2011, Jindřichův Hradec │ 23

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