1 La dimension territoriale Ronald Hall Commission européenne Directeur relations internationales Politique régionale November 2009

2 Territorial cohesion in Europe: work-in progress Who thinks it is important in Europe? Countries with aménagement du territoire ministers Authorities and associations representing specific types of territories (mountains, islands, far- North, outermost regions) The European Parliament Some landmarks in the European debate: Structured debate on territorial cohesion started in 1990 (Europe 2000 and reports, ESDP) Action under EU INTERREG, URBAN and ESPON initiatives and ‘balanced development’ programmes Territorial Agenda and Action programme agreed in 2007 Green paper (2008)

3 Who thinks territorial cohesion is important outside Europe? The World Bank’s 2009 report, in calling for a new emphasis on territory,… ‘advances the influence of geography on economic opportunity by elevating space and place from mere undercurrents in policy to a major focus’.

4 What is territorial cohesion? Similar starting points in the World Bank and the EU: For the World Bank and the EU, traditional regional policy (World Bank: ‘territorial development policy’) is a subset of a broader effort to promote growth and prosperity.

5 What is territorial cohesion? Is it 3-D or 3-C? …but different approaches: For the World Bank, ‘cities, migration and trade’ are the ‘main catalysts of progress in the developed world over the past two centuries’. This gives rise to the “3-D” approach based on: Higher densities due to urbanisation Shorter distances as people and business move to cities Fewer divisions as economic borders are thinned and world markets entered

6 What is territorial cohesion? 3-D or 3-C? For the EU, the approach could be described as “3-C”: Cohesion: creating opportunities where people live Connection: improving accessibility and reducing the economic significance of distance Cooperation: reducing the impact of international and inter-regional boundaries

7 What is territorial cohesion? 3-D or 3-C? Principal emerging difference for policy : Urbanisation and rural-urban migration (World Bank) versus the creation of opportunities where people live (EU). Differences partly explained by different US-EU histories… …the politics of territory are important.

8 EU and USA: distinct settlement structures

9 25% live in agglomerations over 5 million

10 7% lives in agglomerations over 5 million

11 Of course urbanisation is linked to growth, but is it sustainable? Advantages and disadvantages of agglomeration Particulate matter 2.5µm emissions per km2, 2006 Authors of EPO patent applications per million inhabitants EU27=100 Rural Remote regions Rural regions close to a city Intermediate regions Urban regions

12 …and the effects of congestion

13 What is territorial cohesion? A European view How is it different from traditional regional policy? a particular emphasis on the environmental dimension and the principles of sustainable development, including the prevention of climate change and natural risks, which is relevant because environmental problems are not confined to manmade administrative boundaries; a greater focus on development opportunities, presented by particular territories rather than the problems. This can be seen in the promotion of products unique to certain areas with the help of geographical designations;

14 What is territorial cohesion? A European view How is it different from traditional regional policy? actions in the field of cooperation and networking (in both "soft" and "hard" (infrastructure) forms) which are generally multi-regional and contribute to harmonious and balanced development; actions to promote services of general interest throughout national and European territory;

15 What is territorial cohesion? A European view How is it different from traditional regional policy? attention should be paid to promoting consistency and coordination between different policies and ministries affecting the territory in order to maximise synergies; decentralised forms of governance are necessary involving the regions, localities (including urban authorities) and other stakeholders.

16 The challenge of governance Regional authorities implement regional policy. So who is responsible for territorial policy? –The central ministries for transport, telecommunications, energy, etc. –The regions working in combination (Baltic Sea region, Alpine region) –The sub-regions (the city authorities)

17 The challenge of governance …but they need to work to a common agenda. Hence the efforts in Europe to promote a common vision: European Spatial Development Perspective Territorial Agenda Note that implementation has mostly used the “Open Method of Coordination” and not the “Community Method”.

18 The challenge of governance Open Method of Coordination: targets and benchmarks sets at European level, implementation by Member States (including financial support), peer review. Commission as secretariat. Community Method: central role for the Commission (conception and execution), mobilisation of the EU budget.

19 The challenge of governance Some examples of success for the Community method ( programmes): Greece: Improvement of Accessibility programme Netherlands: Four multi-regional programmes Poland: Development of Eastern Poland programme Portugal: Territorial Enhancement Programme Romania: Regional Operational Programme

20 …and the territorial cooperation priority,

21 …with interest in macro-regions

22 Aims of the Baltic Sea Strategy: Environmental sustainability (e.g. reducing pollution in the sea); Prosperity (e.g. promoting innovation in small and medium enterprises); Accessibility and attractiveness (e.g. better transport links); Safety and security (e.g. improving accident response).

23 and neighbourhood policy

24 Outlook for territorial cohesion in EU Some elements: Lisbon Treaty : economic, social and territorial cohesion; Possible reinforcement of the territorial cooperation priority (financially; additional emphasis on macro-regions); Growing emphasis on ‘territorial themes’: environment; climate change; demographic change and migration; etc; Continued support for the urban question (Note: URBAN initiative discontinued for ); Ongoing debate on whether rural development is territorial or agricultural;

25 Outlook for territorial cohesion But any policy change is likely to be in combination with strong geographic targeting of resources on the lagging regions (World Bank: traditional territorial policies ‘over-emphasize geographic targeting’)… …and using a combination of OMC (no supra-national budget) and the Community method (with budget), reflecting the degree of integration of the EU.

26 What if supra-national funds existed? Principles of governance in the EU A strategic vision of what is to be achieved: developing sectors or geography, or both An objective (non-political) method for raising and allocating resources. Exclusive or inclusive approach to beneficiaries?

27 What if supra-national funds existed? Principles of governance in the EU Grants or loans or both; Flexibility to move resources between countries to accelerate execution; Integrated programmes or projects; Dissociation of the legal framework from project decisions - what institutional architecture?

28 What if supra-national funds existed? Principles of governance in the EU Importance of formal and informal institutional capacities: financial management and control; economic development capacities; identification of suitable partners; Monitoring and evaluation; What conditionality? Importance of competition/public procurement rules Transparency: communicating results