Cohesion Policy 2014-2020: Integrated territorial approaches Christian Svanfeldt European Commission Directorate-General for Regional and Urban Policy ‘Inclusive growth, Urban and territorial development’ Bucharest 11 October 2013

We need to invest in our cities… …but not just question of levels of investment We need adopt an integrated territorial approach within new governance frameworks with new ways of working across sectoral boundaries with a wider set of partners, including citizens focusing on long-term shared objectives A qualitative shift to exploit the full potential of our cities http://ec.europa.eu/regional_policy/sources/docgener/studies/pdf/citiesoftomorrow/citiesoftomorrow_final.pdf 2

Urban dimension of future cohesion policy

Reinforced urban dimension 2014 - 2020 Need for investments in urban areas Specific urban investment priorities Need for metropolitan governance Integrated Territorial Investments Need for integrated interventions at neighbourhood and local level Urban integrated development Community-led local development Need for innovative approaches Innovative urban actions Need for exchange of experience and cooperation Urban development network + URBACT III

Investment priorities targeted at urban areas article 5 of the ERDF regulation 4(e) promoting low-carbon strategies for all types of territories, in particular for urban areas, including the promotion of sustainable multi-modal urban mobility and mitigation relevant adaptation measures; 6(e) action to improve the urban environment, revitalisation of cities, […] regeneration and decontamination of brownfield sites (including conversion areas), reduction of air pollution and promotion of noise-reduction measures; 9(b) support for physical, economic and social regeneration of deprived communities in urban and rural areas.

CLLD I TI Concentration on Europe 2020 priorities Instruments Thematic dimension: Concentration on Europe 2020 priorities Smart growth Research & Innovation ICT SME Sustainable growth Low-carbon Resource-efficiency Risk-prevention Transport Inclusive growth Employment Social inclusion Education Territorial dimension: Instruments Integrated strategies and actions Urban <=> rural linkages Urban neighbourhoods I TI CLLD Cities and towns Functional urban areas, metropolitan regions Other functional economic or geographic areas Rural areas

Reinforced integrated urban dimension Earmarking for integrated sustainable urban development At least 5% of the ERDF dedicated to integrated actions for sustainable urban development delegated to urban authorities to tackle economic, environmental, climate, demographic and social challenges…… affecting urban areas […], including cities, peri-urban areas and deprived urban neighbourhoods taking into account the need to promote urban-rural linkages Innovative actions in sustainable urban development Support new ways of working, focusing on tomorrow's challenges 330 M€ in MFF Urban development network To promote exchange of experience ensure the quality of the implementation of sustainable urban development

Sustainable urban development article 7 of the ERDF regulation 1. support through strategies setting out integrated actions 1a. undertaken through Integrated Territorial Investments or through a specific operational programme, or a specific [multi-thematic] priority axis [CPR Article 87(1)(c)]. 2. principles for the selection of urban areas and an indicative allocation for national level in Partnership Agreement 2a. Delegation to “Urban Authorities; shall be responsible for tasks relating at least to the selection of operations CPR = Common Provisions Regulation

Integrated long-term strategies Functional urban areas ..need to invest in our cities… ...integrated territorial approach …new governance frameworks …across sectoral boundaries …wider set of partners …long-term shared objectives Integrated long-term strategies Functional urban areas Place- and people-based Participative approaches Intervention logic: What are the needs, challenges and potential of the urban areas? What change is desired? What are the specific urban development objectives? Which thematic objectives that can help to achieve the change? How can the thematic investments be delivered in an integrated way? 9

Territorial tools Integrated Territorial Investments (ITI) Community-Led Local Development (CLLD)

ITI & CLLD - inside the strategic framework Partnership Agreement Overall priorities, territorial challenges & approaches CF Idem ERDF Fund specific investment priorities related to Europe 2020 thematic objectives ESF Idem EAFRD Idem EMFF Idem CLLD ITI

Integrated Territorial Investments (ITI)

Integrated Territorial Investment (ex. art Integrated Territorial Investment (ex. art. 99 of the Common Provisions for ERDF & ESF) Implementation tool for area-based strategies requiring integrated investments under more than one priority axis or operational programme Focused on urban areas or other functional territories Can be implemented by a Managing Authority, a local administration (e.g. city) or other entity Operational Programme should identify planned ITIs and set out indicative financial allocations

Basic features A voluntary tool for Member States Must be based on an integrated territorial strategy Can cover any sub-national territory as well as multiple categories of regions Can cross national borders Can include any form of support (including Financial Instruments, FIs) Can include elements implemented through community-led local development (CLLD)

ITI –interventions 15 Intervention logic Scope Interventions under ITI should contribute to the objectives of the corresponding investment priorities and to the objectives of the territorial strategy Scope What for? instead of What? Determined by the territorial strategy and the investment priorities of the priority axes contributing to ITI 15

ITI – what are the advantages? ITI secures various funding streams at its inception – allow a greater degree of certainty and predictability for implementation Selection of operations: not nesessarily competitive (calls for proposals), can be negotiated programming Potential synergies (using different funds in a timely, strategic way) may lead to better aggregate outcome Delegation of management has the potential to empower the sub-regional actors by insuring their involvement from the beginning of the programme Increased ownership of strategy and actions 16

Strategic programming requirements Approach should ensure a coordinated use of the ESI Funds Partnership Agreement sets out the approach to integrated territorial development including the general approach to the use of ITIs (types of) areas where ITIs will be used, the ESI funds to be implemented through ITIs, basic implementation and coordination arrangements between ESI Funds Operational programmes sets out where and how ITIs will be used the indicative (overall) financial allocation to ITIs from each priority axis, the arrangements for coordination between MAs concerned + elements related to integrated actions for sustainable urban development ESI = European Structural and Investment Funds

Delegation of tasks, control & audit Delegation of implementation tasks is not mandatory (except for integrated actions for sustainable urban development under ERDF Art 7) Delegation of MA and CA tasks=delegation of tasks to an intermediate body All general rules and principles as regards the delegation of management tasks apply The arrangements for delegation, management and control require careful consideration and coordination – simpler if the extent of delegation from all MAs is the same, if control and audit are coordinated

Monitoring and reporting ITI is an implementation tool, not an objective in itself ITI must contribute to the achievement of the thematic objectives, investment priorities and specific objectives set out in the contributing programmes Financial and indicator data is traced back to contributing priority axes Specific indicators can be used at management level to assess the implementation of individual ITIs

Possible implementation arrangements for multi-OP ITI MS designate an IB for management and implementation of an ITI Define investment priorities of priority axes of the OPs contributing to the ITI Agreed compliance and eligibility rules adopted by each MC of participating OPs Joint Monitoring Sub-Committee with relevant OPs Common monitoring and evaluation, progress report Financial management: monitoring system for the programmes provides for the identification of operations of a priority axis 20

ITI: possible implementation arrangement Regional ERDF-OP National/sectoral ERDF-OP ESF-OP Intermediate body (Urban) Territory + Complementary funding from EAFRD and/or EMFF Strategy

ITI in ETC Relevant to cross-border and trans-national programmes ETC general rules and principles apply Cross –border impact must be preserved Delegation of implementation tasks – only to joint bodies (EGTC or other joint legal body established under the laws of one of the participating countries) ITI creates the possibility to combine actions financed from different strands of ETC and mainstream programmes

Community-Led Local Development (CLLD)

Community-Led Local Development article 28§1 of Common Provisions focused on specific sub-regional territories; community-led, by local action groups composed of representatives of public and private local socio- economic interests, no majority partner Carried out through integrated and multi-sectoral area- based local development strategies; considering local needs and potential, include networking and (where relevant) cooperation. ERDF article 5 investment priority 9 (d): investments undertaken in the context of Community-led local development strategies

Community-led local development under future cohesion policy Optional for ERDF and ESF Member States should indicate in their Partnership Agreement and Operational Programmes whether and where community CLLD will be implemented (can concern entire territory) Incentives: CLLD actions financed under one thematic objective - (ERDF, ESF & EAFRD: promoting social inclusion and combating poverty) – but allows funding strategies and projects with wider scope An entire priority axis dedicated to CLLD benefits from 10% higher co-financing rate

Support to CLLD from the CSF Funds article 31 of Common Provisions costs of preparatory support; implementation of operations under the local development strategy; preparation and implementation of cooperation activities of the local action group; running costs and animation of the local development strategy up to the limit of 25 % of the total public expenditure incurred within the local development strategy.

Why CLLD in all CSF Funds? Integrated territorial approach allowing more coherence and synergies between the CSF Funds URBAN Community Initiatives have proven relevance in urban areas Allows interventions in peri-urban Supports urban-rural partnerships No more white spots on the map

CLLD in the strategic programming Partnership Agreement implementation arrangements of CLLD: (types of) territories, focus, funding, Fund coordination ERDF national/ regional programme(s) EAFRD national/ regional programme(s) ESF national/ regional programme(s) EMFF national programme(s) Coordinated call and selection procedure between Funds ESF LAGs ERDF LAGs Multi-fund LAGs EARDF LAGs EMFF LAGs

Programming multiple ESI Funds CLLD strategy Partnership Agreement ESF national/ regional programme(s) ERDF national/ regional programme(s) EAFRD national/ regional programme(s) EMFF national programme(s) Indicative allocation for CLLD Joint Selection committee Multiple ESI Funds Local Development Strategy

CLLD strategies – selection (article 29 of Common Provisions) Selected for EU funding under the responsibility of the relevant managing authorities Approval decision should set out: the allocations of each CSF Fund the roles of the authorities responsible for the implementation of the relevant programmes for the implementation tasks relating to the strategy NOTE: First round of selection to be completed within two years of the approval of the Partnership Agreement Member States may select additional CLLD strategies after that date but no later than by 31 December 2017

Multiple ESI Funds CLLD strategy - optional LOCAL DEVELOPMENT STRATEGY ERDF funding EAFRD funding ESF funding EMFF funding LOCAL DEVELOPMENT STRATEGY ESF project EMFF project Financing of running costs, animation, networking possible by "lead Fund" ERDF project EAFRD project Local Action Group Local governments Local entrepreneurs (local) NGOs, civil society

Strategic choices to be made in Partnership Agreement Challenges to tackle & objectives of CLLD Territories to target Which funds to use Interaction and coordination between funds Mono vs. multiple ESI funded strategies Lead fund Preparatory support => Need to be reflected in Operational Programmes

Mono vs. multi-fund; areas to target Simplicity vs. scope and resources Distinct rural, urban, fisheries areas vs. mixed territories (e.g., peri-urban areas, etc) Demarcation vs. integration (e.g., urban-rural partnerships) Community engagement vs. critical mass

- Lead Fund option for multi-funded LDS Tools to simplify implementation of "multi- funded" local development strategies - Lead Fund option for multi-funded LDS A “Lead Fund” can be designated at the level of each LDS to cover the running costs, animation and networking activities - Use of a "joint" intermediate body as "a one stop shop" - LAGs as intermediate bodies

Critical issues Use of CLLD in urban areas CLLD optional for ERDF & ESF - reluctance of MS to invest due to small scale of operations and potentially high error rates lack of capacity to set up LAGs where CLLD could make a real difference (e.g., deprived neighbourhoods) Deadline for selection and approval of CLLD strategies need to accommodate for continuity of existing groups, time required to set up new groups and time needed for implementation of strategies;

CLLD in cities: URBACT experiences Small areas within cities, e.g., deprived urban neighbourhoods and historic centres etc. URBACT examples: REG GOV, SURE, CTUR, REDIS, LINKS, REPAIR, HERO Smaller cities and their surrounding rural areas URBACT examples: Esimec, Creative Clusters….. Target group approaches URBACT examples: My Generation, Romanet, Active Age… Thematic approaches URBACT examples: Active Travel, EVUE, CASH, SUITE, HERO Conditions: strong involvement of community of users, focussed but integrated strategy, appropriate (functional) areas - larger if justified .Possibility of dealing with urban-rural links for the theme or target group. Source: Paul Soto URBACT

CLLD in cities: Berlin Neighbourhood Management programme Transformation of deprived city areas Offering local people the opportunity to take decisions about their own neighbourhoods through Neighbourhood Councils Help people to build partnerships and revitalise their urban environment Enabling Berlin to become a ‘socially integrative city’ Co-financed by the European Regional Development Fund REGIO STARS 2013 winner of CityStar category http://ec.europa.eu/regional_policy/videos/video-details.cfm?vid=1282&LAN=SV#embedcode

Relation between ITI and CLLD

ITI CLLD Urban development strategy or other territorial strategy or pact Bottom-up integrated area-based strategy Flexible – but generally top-down, public sector-led Bottom-up, community-led (public, private, civil society) Target areas or the principles by which strategies will be selected should be set out in Partnership Agreement MS define selection criteria and target areas, selection of CLLD strategies through competitive procedure by responsible MA(s) Any size as long as focused on a coherent functional geography Sub-regional (10.000–150.000 inh.- except duly justified cases) Single fund (ERDF, ESF or CF) or several funds (ERDF, ESF and/or CF complemented by EAFRD and/or EMFF) Single fund or several funds (ERDF, ESF, EAFRD and/or EMFF) Implementation by designated intermediate body or MA Strategy & implementation by local action group Optional Optional (except for EAFRD)

Relation between ITI and CLLD Territorial strategy implemented through ITI can have CLLD as one component (e.g., urban strategy ITI with specific neighbourhood targeting through CLLD) BUT consistency have to be ensured between ITI and CLLD strategies AND CLLD should go through selection procedure required in Art 29(3)–(5) of CPR and described in the PA and OPs 40

More information: Future regional policy http://ec.europa.eu/regional_policy/index_en.cfm http://ec.europa.eu/regional_policy/information/brochures/index_en.cfm#1 http://ec.europa.eu/regional_policy/what/future/proposals_2014_2020_en.cfm Examples of Local Development approaches funded by ESF http://ec.europa.eu/esf/main.jsp?catId=358&langId=en&videosId=2501&vl=en&furtherVideos=yes http://ec.europa.eu/esf/main.jsp?catId=352&langId=en&videosId=2507&vl=en&furtherVideos=yes ERDF http://ec.europa.eu/regional_policy/videos/video-details.cfm?vid=561&LAN=EN http://ec.europa.eu/regional_policy/videos/video-details.cfm?vid=405&LAN=EN http://ec.europa.eu/regional_policy/videos/video-details.cfm?vid=823&LAN=EN EFF http://ec.europa.eu/avservices/video/videoplayer.cfm?ref=I071373&sitelang=en

Thank you! christian.svanfeldt@ec.europa.eu ec.europa.eu/inforegio