Cohesion Policy 2007-2013 Incorporating the Lisbon Strategy Referring to the financial perspectives 2007-2013 and the latest progress report on Cohesion.

Discussion up to February 2004 EN Discussion up to February 2004 General support for assisting areas below 75% of EU average GDP Pressure to help 'statistically affected' regions Pressure for 'territorial cohesion' (town/country, islands, mountains) The great success and importance of Objective 2 (restructuring of economies hit by change) Divergence over cash and method ( 'one per cent budget', re-nationalisation) Divergence over the Lisbon Agenda Background

The Lisbon Agenda: growth, competitiveness, employment The Agenda was adopted on 23-24 March 2000 Aims to make Europe the most competitive and dynamic economy in the world… Measures on sustainable development were adopted in May 2001 (Gothenburg agenda) Various benchmarks and targets: employment 70% by 2010, R&D 3% of GDP… Recent reports indicate slow progress background

The Lisbon Agenda: mid term review Key recommendations: The need for a spending instrument at EU level The need for increased ownership involving the regions and social partners The need for a more strategic approach background

Cohesion Policy in support of Growth and Jobs EN Cohesion Policy in support of Growth and Jobs Europe must: renew the basis of its competitiveness, increase its growth potential and its productivity strengthen social cohesion, placing the main emphasis on knowledge, innovation and the optimisation of human capital. To achieve these objectives it must mobilise all appropriate national and Community resources- including Cohesion Policy European Council, March 2005

Spring European Council EN Key recommendations 1) Community resources, including cohesion policy, should be mobilised for 3 dimensions of the strategy – economic, social and environmental. 2) Regional and local actors should take greater ownership of the strategy 3) Greater synergies between Community funds and the EIB in R&D Spring European Council

Key recommendations (cont.) 4) Reduction in the general level of state aid 5) Investment in infrastructure 6) Create more jobs with more active employment policies. 7) Integrated guidelines to be issued at Community-level; MS to establish national reform programmes on growth and jobs Spring European Council

A more strategic approach EN A more strategic approach Staff Working Document SEC (2005) 622 of 2 May 2005 provides guidance to MS in drawing up national reform programmes new reporting structure to include cohesion policy Community Lisbon Programme (what can be done at EU level) Clearer division of responsibilities

New reporting structure EN New reporting structure October 2005: National Reform Programmes submission by Member States 1 January 2006: first Annual Progress Report submitted by the Commission on the basis of analysis of national reform programmes 2 March 2006: Spring European Council adoption by European Council of updated recommendations 3 5. Integrated Guidelines October 2006: submission by Member States of implementation reports Includes chapter on national strategic reference frameworks and new OPs 4

Financial perspectives 2007-2013 EN Financial perspectives 2007-2013 The budget is now about 1.07% of GNI The Commission proposed 1.21% Six MS want 1% Parliament has proposed 1.18% (with Cohesion getting 0.41% of GDP) Proposed compromise for June Summit was 1.06%, with, for Cohesion Policy: €307bn (not 336bn): 0.37% GDP (not 0.41%) Convergence 82% (not 78%) Competitiveness 15% (not 18%) Territorial co-operation 2% (not 4%) Financial aspects

Priorities of the reform Three new objectives Convergence and competitiveness (regions below 75% GDP, statistical effect regions and the Cohesion fund) Regional competitiveness (former Obj 2&3 with accent on Lisbon/Gothenburg, mainstream URBAN) Territorial co-operation (all former INTERREG elements with encouragement to mainstream them also in above objectives) Reform of the policy Conclusions

Priorities of the reform Administrative simplification EN Priorities of the reform Administrative simplification Keep what is known to be effective (programming, leverage, partnership, decentralised management) Reduce the more complicated aspects (number of instruments, stages of programming etc.) while augmenting the role of the Council (adoption of strategic guidelines) Reform of the policy Conclusions

Cohesion Policy 2007-2013 Incorporating the Lisbon Strategy The latest progress report on Cohesion.

EN Disparity levels Disparities in GDP per head between EU-25 still considerable (2003): Latvia – 41% of EU average Ireland – 132% of EU average Luxembourg – 215% of EU average New Member States – below 90% of EU average Third progress report

Regional disparities Regional disparities remain high (2002) EN Regional disparities Regional disparities remain high (2002) 189% of the EU-25 average in the 10 most prosperous regions 36% in the 10 least prosperous ones. Over 1/4 of the EU’s population in 64 regions have GDP per head below 75% of EU average. 90% of population in the new Member States living in regions with GDP per head below 75% of EU average 13% of population in EU-15 living in regions with GDP per head below 75% of EU average Third progress report, Part I

EN Trends in disparities since the mid-1990s, average EU growth growth has average just over 2% per year regional disparity levels are higher than national disparities but are also falling 10% of EU25 population living in poorest regions (2.2% of total GDP in 2002; 1.5% in 1995) still high levels of internal disparities Part I

Regional Disparities in EU27 EN Regional Disparities in EU27 GDP per head in % in PPP (2002) <50 50 - 75 75 - 90 90 - 100 100 - 125  125 Index, EUR-27 = 100

EN Employment rates Employment rates – well short of the 70% Lisbon target 62.9% for the EU25 in 2003 Denmark, Sweden, the Netherlands and the UK – only MS with 70% 22 million additional jobs needed to meet 70% target In the new Member States, 7 million additional jobs needed to meet 70% target (increase of ¼) 200 of the 254 EU regions are below the target rate almost 15% of the population lives in regions where the rate is below 55% employment rates remain low among most of the least prosperous regions. Part I

Geographical Eligibility for Structural Funds Support 2007-2013 EN Geographical Eligibility for Structural Funds Support 2007-2013 Draft April 2005, GDP/head  2000-2001-2002 Objective 'Regional Competitiveness and Employment' Convergence objective Regions > 75% in EU25) Convergence objective statistically affected regions Objective 'Regional Competitiveness and Employment' Phasing-in regions, "naturally" above 75% Index EU 25 = 100 Source: Eurostat

Cohesion Policy 2007-2013 Incorporating the Lisbon Strategy The Strategic guidelines.

The new Strategic guidelines: building in the Lisbon agenda (1) I) Making Europe and its regions a more attractive place to invest and work expand and improve transport infrastructures improve the environmental contribution to growth and jobs address the intensive use of traditional energy sources II) Knowledge and innovation for growth increase and improve investment in RTD facilitate innovation and promote entrepreneurship promote the information society for all improve access to finance Priorities

The new Strategic guidelines: building in the Lisbon agenda (2) III) More and better jobs attract and retain more people in employment and modernise social protection systems improve adaptability of workers and enterprises and the flexibility of the labour market increase investment in human capital through better education and skills administrative capacity health and the labour force Part IV) Territorial Cohesion and co-operation The contribution of cities to growth and jobs Supporting the economic diversification of rural areas Co-operation: cross border/trans-national/inter-regional Priorities

EN Timetable June 2005: (No) Decision by Council on Financial Perspectives July 2005 Draft Community Strategic Guidelines adopted by Commission: public consultation Autumn 2005: - Decision by Council and European Parliament on cohesion policy regulations - Community Strategic Guidelines published - Preparation of National Strategic Reference Frameworks 2006 (?): Preparation of programmes for period 2007-2013 1 Jan 2007: Implementation begins: regime of 12ths if no budget Next stages