The new European Union Strategy for Rural Development AER Rural Development Conference 19-20 October 2005, Exeter, Devon (UK) The new European Union Strategy for Rural Development JB. Benhaiem European Commission Co-ordinator for UK Rural Programmes

Current EU Rural Development Policy (2000-06) THE AGENDA Context Current EU Rural Development Policy (2000-06) Rural Development and Lisbon objectives New EU Rural Development Policy (2007-13) Conclusion

RURAL AREAS: PROBLEMS AND CHALLENGES 56 % population of EU-25 in rural areas 92% of the EU territory 53 % of the EU employment Lower : income (1/3) higher education ICT broadband access, etc Lack of : business opportunities contacts (remoteness, peripherality) training infrastructure Rural areas face challenges re. : growth, jobs and sustainability But high potential for : growth in new sectors, rural amenities, tourism, place to live and work, natural resources and highly value added landscapes

COMMON AGRICULTURE POLICY TO-DATE 1st pillar Support to market financed by EAGGF-Guarantee 2003 reform Decoupling (from production) Conditionnality (cross-compliance) Modulation (money transfer to 2nd pillar) 2nd pillar Rural development EAGGF-Guarantee + Guidance 2003 reform Principles unchanged Reinforcement (modulation) New measures (quality, animal welfare)

RURAL DEVELOPMENT COVERAGE (2000-06) Land Management Environment LFA Afforestation Infrastructure Basic Services Physical Capital Investment Human Training (ESF) (EAAGF - Guarantee and Guidance) Modernisation Restructuring Economic Diversification (ERDF) Employment Urban/ Rural Linkage Rural Economy Social Fund Agricultural Fund Regional Fund Land Management Environment LFA Afforestation Infrastructure Basic Services Physical Capital Investment Human Training (ESF) (EAAGF - Guarantee and Guidance) Modernisation Restructuring Economic Diversification (ERDF) Employment Urban/ Rural Linkage Rural Economy Social Fund Agricultural Fund Regional Fund LEADER APPROACH

BREAKDOWN OF RD EU FUNDING FOR EU-15 (2000-06) EU funding : bn € 52.5 National funding : bn € 52.5 Total RD budget: bn € 105

CURRENT RD AND COMMUNITY PRIORITIES Agriculture (incl. RD) largest user of rural land key determinant factor for the quality of the countryside, the environment importance and relevance of the EU CAP Göteborg agenda and Rural Development RD relevant to sustainable development Promotion of high quality products, organic production, renewable raw marerial, biodiversity Lisbon agenda and RD RD is central to the Lisbon process RD is a key tool for diversification, restructuration and innovation in rural areas RD help promote competitiveness in agri-food processing (ICT, R&D) environment and associated tourism as a major source of income and jobs

RURAL DEVELOPMENT POLICY 2007-2013 New regulation (2007-13) “tool kit” (approved Sept. 2005 ) new strategic approach for rural development with clear focus on EU priorities (Community Strategic Guidelines) new “European Agriculture Fund for Rural Development (EAFRD) strengthened “bottom-up” approach but, budget still under discussion Broader scope addresses innovation and restructuring needs in farming and forestry improves environmental protection should create more jobs and opportunities in rural areas Simpler implementation one fund one programming instrument Responding better to citizens’ concerns food safety and quality rural amenities

For all rural areas in the EU RURAL DEVELOPMENT POLICY 2007-2013 Simplification in future: today: Sources of finance (funds) systems for financial management and controls 5 types of programming 1 fund 1 system for financial management and controls 1 programming system For all rural areas in the EU 9

Three core objectives: RURAL DEVELOPMENT POLICY 2007-2013 Three core objectives: Improving the competitiveness of the farm and forestry sector through support for restructuring, modernisation/innovation and quality production Enhancing the environment and the countryside through support for land management Improving the quality of life in rural areas and promoting diversification of economic activity 10

RURAL DEVELOPMENT POLICY 2007-2013 4 axes to implement the objectives: To each core objective corresponds a thematic axis in the rural development programme The three thematic axes are complemented by a « methodological » axis dedicated to the LEADER approach (LEADER axis) A minimum funding for each axis is required to ensure some overall balance in the programme (10% - 25% - 10% - 5%) As building blocks for each thematic axis a range of pre-defined measures is available 11

« LEADER » Axis Rural Development 2007-2013 Axis 1 Competi-tiveness Axis 2 Environment + Land Management Axis 2 Environment + Land Management Axis 3 Economic Divers. + Quality of Life Axis 3 Economic Divers. + Quality of Life Single set of programming, financing, monitoring, auditing rules Single Rural Development Fund

Axis 1: Increasing Competitiveness RURAL DEVELOPMENT POLICY 2007-2013 Axis 1: Increasing Competitiveness Measures aiming at improving human potential: vocational training/information; setting up of young farmers; early retirement; management, relief and advisory services Measures aiming at restructuring physical potential: investments to improve production, processing and marketing structures Measures aiming at improving the quality of agricultural production and products: adaptation to new EU-standards; participation in food quality schemes; promotion for quality products Transitional measures for the new Member States (until 2013): semi-subsistence farms; setting up of producer groups 13

Axis 2: Land management RURAL DEVELOPMENT POLICY 2007-2013 Measures targeting the sustainable use of agricultural land: mountain areas and other areas with handicaps (LFA); Natura 2000 areas; agri-environment; animal welfare; ... Measures targeting the sustainable use of forestry land: first afforestation; first establishment of agro-forestry systems; Natura 2000 areas; forest-environment; restoring forestry production potential and introducing prevention actions; ... Note: Agri-environment measures are compulsory for each programme 14

RURAL DEVELOPMENT POLICY 2007-2013 Axis 2: Land management/environment Less favoured areas: Designation of areas; max. amounts; calculation of allowance Current regime continued until 2010 Report and proposal by the Commission in 2008 Council decision in 2009 New regime to enter into force in 2010

RURAL DEVELOPMENT POLICY 2007-2013 Axis 3: Diversification of the rural economy and quality of life in rural areas Measures aiming at the diversification of the rural economy: on farm diversification to non-agricultural activities; support for micro-enterprises; rural tourism Measures aiming at the improvement of the quality of life: Basic services; village renewal; conservation and upgrading of the rural heritage (natural and cultural) Training and capacity building 16

RURAL DEVELOPMENT POLICY 2007-2013 “LEADER” Axis Implementation of local development strategies through a LEADER approach to contribute to the achievement of the objectives of one or several of the three thematic axes Inter-territorial and trans-national cooperation Capacity building and working of Local Action Groups 17

Programming Steps RURAL DEVELOPMENT POLICY 2007-2013 Community Strategy Guidelines setting out the EU priorities for the three thematic axes National strategy plans translation the EU priorities to the national situation and ensuring complementarity with other policies (Cohesion policy – ESF/ERDF) National or regional rural development programmes articulating the four axes

Regulation and Guidelines RURAL DEVELOPMENT POLICY 2007-2013 Regulation and Guidelines Rural Development Regulation => purpose and scope of assistance from the RD fund Community Strategy Guidelines => EU level priorities within the RDR framework, in particular focus on sustainability (Göteborg) and growth and jobs (Lisbon)

The Community Strategy Guidelines will help to: RURAL DEVELOPMENT POLICY 2007-2013 The Community Strategy Guidelines will help to: identify and agree the areas where the use of EU support for rural development will create the most value added at EU level; make the link with the main EU priorities (Lisbon, Göteborg) and translate them into RD policy; ensure consistency with other EU policies, in particular in the field of cohesion and environment; accompany the implementation of the new market oriented Common Agricultural Policy and the necessary restructuring that it will entail in the old and the new Member States.

RURAL DEVELOPMENT POLICY 2007-2013 Community guidelines Axis 1 priorities: knowledge transfer and innovation in the food chain and focus on priority sectors for investment in physical and human capital. Axis 2 three EU level priority areas: biodiversity and preservation of high nature value farming and forestry systems, water, and climate change. Axis 3 the overarching priority of the creation of employment opportunities in the fields of diversification and quality of life.

RURAL DEVELOPMENT POLICY 2007-2013 Community Guidelines Axis 4 (Leader) priority: improving governance and mobilising the endogenous development potential of rural areas. Horizontal: Member States should ensure that synergies between and within the axes are maximised and potential contradictions avoided. They will also wish to reflect on how other EU level strategies can be taken into account. Horizontal: The synergy between structural, employment and rural development policies needs to be encouraged.

MEETING THE LISBON STRATEGY THROUGH NEW RD: EXAMPLES ICT take up by farms and food processing farms Extension of broadband coverage to promote new way of selling Facilitating on-farm tourism through ICT use (booking, promotion and links) Facilitating innovation in the supply chain Targeted investment in equipment, process and training Innovation initiatives for quality product Co-operation in Research & Development Networking between R&D centres, food industry and farmers Take up of new technologies and processes Public-Private partnership Leader approach Local services designed by local people Increasing competitiveness Entrepreneurship Product quality and promotion Quality schemes and « niche » products Job creation and rural diversification Tourism, craft and rural amenities Micro businesses (training, coaching, etc.) Child care facilities Co-operation activities on high quality farms and local products

The timetable RURAL DEVELOPMENT POLICY 2007-2013 Legislative framework: Council regulation & Implementing Rules in place by end of 2005 Community Strategic Guidelines: adoption Autumn 2005 National strategy plans: end of 2005/beginning 2006 RD programmes: submission 1st half 2006, approval 2nd half 2006

At the level of the axis as share of total eligible public expenditure COMMUNITY FINANCING RATES At the level of the axis as share of total eligible public expenditure For axis 1 and 3 a maximum cofinancing rate of 50% (75% in Convergence regions) For axis 2 and 4 a maximum cofinancing rate of 55% (80% in Convergence regions)

SUPPORT AND NETWORKS Technical assistance at programme level for preparation, management, monitoring, evaluation, information and control activities (up to 4% of programme funding) A national rural network supporting and bringing together the organisations and administrations active in rural development (financed from the technical assistance at programme level) A European rural development network to interface with the national networks and administrations (financed from the technical assistance at Commission initiative, 0.25% of RD funding)

CONCLUSION EU Rural development policy : takes into account the needs of European rural areas and faces their challenges complements national/regional/local policies is an important element of the Lisbon process, in particular for rural economies should create more jobs and opportunities in rural areas RD programmes are just now being designed in synergy with the “cohesion” programmes at national and regional level The challenge for all of the stakeholders in rural economies is to take part somehow in the process (planning, development, implementation) and in the rural networks.