CONVERGENCE REGIONS ON THE WAY TO COHESION COHESION POLICY should benefit all MMSS, to promote a harmonious and balanced development and growth of the EU, reducing differences between regions. Regions abandoning convergence objective: Success

CONVERGENCE REGIONS ON THE WAY TO COHESION BUT: Regions facing significant social and economic challenges Especial attention to regions which have not yet completed their process of catching up, with a simple and fair system of transitional support to avoid the economic shock due to a sudden drop of funding to guarantee some financial stability during the exit process thus consolidating the improvements

CONVERGENCE REGIONS ON THE WAY TO COHESION Contribution ES to the 5th Report on economic, social and territorial cohesion EU 2020 is the objective, but: Should take into account different situation/different development path of EU regions (bottom up process) Flexibility when implementing the Strategy to adapt to specificities Different development level Reinforce each region´s potential. MMSS and regions should play a key role when translating the Strategy (adapt it to needs and bottlenecks for growth)

CONVERGENCE REGIONS ON THE WAY TO COHESION Contribution ES to the V Cohesion Report Keep current Architecture convergence/competitiveness. Learn from past mistakes: fair treatment for regions under transitional mechanisms Different treatment for regions which just reached 75% EU average/regions that kept its GDP over 75% during most of the period.

CONVERGENCE REGIONS ON THE WAY TO COHESION Some ideas: Consolidate exit of the convergence objective and avoid moving backwards. Consolidate investments to strengthen the economic structure, by keeping enough intensity. Avoid dramatic changes in the financing, to limit the risk, both of an economic (paralyzing investments) and financial (budgetary unbalances) nature. Flexibility in the distribution of funds. Create a smooth and sustained transition to Competitiveness.

CONVERGENCE REGIONS ON THE WAY TO COHESION Some ideas: Different degree of satisfaction with the Commission´s proposal. Does it give response to the challenges and specific problems of these regions? The purest indicator is GDP per capita, but other indicators could/must be considered (for example, non-balanced distribution of wealth in a region). (two levels: GDP per capita to include the region, and then, distribution with additional criteria). Same priorities and areas than the ones under the scope of the convergence objective. Flexibility in the distribution of funds.