Structural and cohesion funds and the European Semester process –experiences from the past, lessons for the future for the European Structural and Investment Funds Interparliamentary Committee Meeting organised by the Committee on Budgets 22nd January 2014 Presentation by Walter Deffaa, Director General for Regional and Urban policy European Commission

Outline How do European Structural and Investment Funds support growth and jobs in a fundamentally changed environment? Experience from 2007-2013 programming period during crisis New perspectives for the period 2014-2020

1.1 Cohesion Policy delivers in the crisis In the past Cohesion Policy increased GDP by over 1% on average. Some key achievements 2007-2012: 594 000 jobs created – at least 262 000 in SMEs 77 800 start-up companies supported 2 700 KM of new or reconstructed Railway 25 800 KM of new or reconstructed roads Broadband access for 5 million citizens Access to clean drinking water for 3.2 million citizens ESF: 15 Million participants per year But regional disparities are again growing with the crisis.

1.2 Cohesion Policy response to crisis Public Finances under consolidation pressure Increase in EU advances, an extra EUR 6.2 bn (in 2009) Increase EU co-financing to max – EUR 28.6 bn Top up of maximum EU co-financing (to 95%) EUR 1.8 bn for 6 MS Crisis affects all sectors of the economy, youth unemployment and SMEs Broader scope of support: Financial instruments for energy efficiency and working capital for SMEs; social housing; Thematic reprogramming 2007-13 of EUR 45 bn: Includes work of 2012 Youth / SME action teams with 8 MS

2.1 ESI Funds 2014-2020 – key pillar of economic policy mix Budget consolidation European Semester Country-specific recommendations Take slide from presentation to staff (last July) with all the arrows etc. In the centre: European Semester CSR Growth support & investment Structural reforms

2.1 ESI Funds 2014-2020 – key pillar of economic policy mix Budget consolidation Macro-economic conditionality European Semester Country-specific recommendations Preserve growth friendly expenditures Growth support & investment Structural reforms Ex-ante conditionalities Capacity building

2.2 New Programmes to focus on results A. Focus on medium and long term drivers of growth = thematic + financial concentration: R&D and innovation, SMEs, digital and low carbon economy, labour market, Social Inclusion and Human capital; Youth employment initiative, SME initiative Customized to needs: Address Country Specific Recommendations; Smart Specialisation Strategies B. Design strategies for paths to growth and jobs: Identify clearly change sought, robust indicators, reporting, monitoring & evaluation mechanisms Performance framework and reserve will steer funds to best use with ma C. Ex-ante conditionalities will ensure pre-conditions for effective investment

2.3 2014: Pivotal Year for Shaping future growth and jobs When What? 2013 Legislation adopted EUR 325 billion available 2014-2020 Preparation of programming in MS + COM 1st Qtr 2014 Submission of National "Partnership agreements" expected and adopted (taking account of European Semester recommendations; based on broad partnership of all stakeholders) 2nd + Qtr 2014 Presentation and adoption of detailed national and regional programmes Translate jointly adopted objectives, regulations, and financial allocations into relevant strategies, objectives and and actions.

Thank You for Your Attention

Cohesion policy 2007-2013 and national counterpart is a significant proportion of public investment in Europe.

Thematic objectives to Deliver Europe 2020 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