European Structural & Investment Funds: Update on Developments: 15 November 2013

New Programmes: Key Stages 2013 Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future Projects Start: January 2014 Projects Approved Programmes Agreed Partnership Agreement Signed Regulations Adopted European Budget Agreed

New Programmes: Key Stages 2013 Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future Projects Start: early 2014 Projects Approved Programmes Agreed Partnership Agreement Signed Regulations Adopted European Budget Agreed

Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future No material developments since last update: February 2013: European Council agree package: bad news for Wales – reduction of circa £400m. 27 June 2013: Political agreement on budget reached by leaders of Parliament, Council and Commission - 3 July 2013: European Parliament approved EU Budget. UK Government, under pressure from DAs to mitigate scale of reductions, subsequently proposed redistribution of funds from England to the DAs (each UK nation to take equal reduction of around 5%, subject to EC agreement). Wales offered additional €375m - with East Wales seeing potentially sizeable increase in funding. Distribution of the Welsh allocation between WW&V and East Wales restricted by programme flexibilities. Agreement of European Budget

Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future UK Government intends to distribute funding as follows, subject to the approval of the European Commission via the UK Partnership Agreement: Indicative Regional Allocations 2011 Prices EU AllocationUK RedistributionUplifted Allocation West Wales and Valleys 1692m 1,692m+91m1,783m East Wales 77m +284m 361m Total1761,769m+375m2,144m

New Programmes: Key Stages 2013 Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future Projects Start: January 2014 Projects Approved Programmes Agreed Partnership Agreement Signed Regulations Adopted European Budget Agreed

Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future The Structural Funds legislative package consists of: –Common Provisions Regulation (All ESI Funds) –General Provisions Regulation (Structural Funds) –ERDF Regulation –ESF Regulation –European Territorial Cooperation Regulation –Number of additional Commission Regulations (Delegated and Implementing Acts) for non-essential technical matters and standard implementation arrangements. (Discussed at 5 September Forum meeting) –‘Fund for the Most Deprived’: compulsory for Member States. Draft SF Regulations: Agreement

Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future ‘Fund for most Deprived ‘ involves top-slicing SFs to create funding pot – replacing previous CAP related arrangements. Seeks to address food deprivation, homelessness and material deprivation for children through the provision of material goods and small scale actions to support social inclusion – each require a separate OP. UK wide Operational Programmes envisaged– one for provision of material goods and or one for social innovation. Wider SF negotiations – European Parliament vote 19 November - Regulations hopefully adopted in December Parallel negotiations on Common Agriculture Policy / Common Fisheries Policy legislative packages. Under latest regulation changes, Commission will consider accepting Partnership Agreements with only some – not all - of the EU funds covered if the fund-specific regulations are likely to be delayed (i.e.: > 2 months from adoption of the main ‘common provisions’ regulation). Fisheries fund is likely to be the last fund regulation to be adopted (likely to be > 2 months). Could have implications for timing of RDP submission. Draft SF Regulations: Agreement

New Programmes: Key Stages 2013 Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future Projects Start: January 2014 Projects Approved Programmes Agreed Partnership Agreement Signed Regulations Adopted European Budget Agreed

Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future First draft UKPA seen by Commission in early October and seen as requiring strengthening to be fit for purpose. BIS has undertaken redrafting during October/November to align the National Chapters and overarching UK chapter to ensure they read as one document. The draft Welsh Chapter has been assessed separately by the Commission and the Welsh Ex-Ante Evaluators. Feedback has been generally positive and work has been undertaken to respond to points raised. UK delegation meeting Commission on 21 November to discuss latest draft. This will give rise to further comments which will need to be addressed before formal submission of the UKPA- which it is hoped will occur at the end of the year. Partnership Agreement: Progress

New Programmes: Key Stages 2013 Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future Projects Start: January 2014 Projects Approved Programmes Agreed Partnership Agreement Signed Regulations Adopted European Budget Agreed

Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future Good progress on converting draft programmes – as set out in consultation documents - onto Commission templates. Work takes account of consultation feedback / ex-ante evaluators’ comments / Commission’s views. As previously reported - key Commission message ‘not business as usual – need to be more specific over our investment priorities’. 24 September - final draft Programmes noted by Cabinet. 21 November - further discussions with Commission. End November – draft proposals to be published on WEFO website. December - Start informal negotiations with Commission– to enable SF programmes to start early RDP / EMFF starting 2015 – detailed update will be provided at 25 November meeting. Draft Programmes: State of Play

New Programmes: Key Stages 2013 Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future Projects Start: January 2014 Projects Approved Programmes Agreed Partnership Agreement Signed Regulations Adopted European Budget Agreed

Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future Guilford Review informs new approach to deployment. Economic Prioritisation Framework (EPF) taking shape: discussions have been held with officials across all WG policy departments. Latest thinking to be shared with members at the meeting on 25 November (Agenda Item 6). Further discussion ongoing in respect of Regional Planning mechanisms. Significant thinking / work continuing in respect of ‘simplification’ (Discussed at 5 September Forum meeting) Will inform the content of the Partnership Agreement / Programme Strategy. Development of Future Projects

SF Programmes: ‘Traffic Lights’ Ewrop & Chymru: Buddsoddi yn eich Dyfodol Europe and Wales: Investing in your future Ewrop & Chymru: Buddsoddi yn eich dyfodol Europe & Wales: Investing in your future Projects Start: January 2014 Projects Approved Programmes Agreed Partnership Agreement Signed Regulations Adopted European Budget Agreed

Thank You. Happy to answer questions at 25 November meeting. Wales European Funding Office