NrPriority axisTO / IP 1Qualifications and skills meeting the needs of society and labour market TO 10 ESF iii and TO 10 ERDF 2 Increasing social inclusionTO 9 ESF i and TO 9 ERDF a 3Improvement of access to, and prevention of dropping out of, the labour market TO 8 ESF ii 4Growth, smart specialisation and R&D&ITO 1 ERDF a and b 5Development of SMEs and local entrepreneurshipTO 3 ERDF d 6Energy efficencyTO 4 CF ii 7Water protectionTO 6 CF ii 8Green infrastructure and climate change and prepairdness for emergencies TO 5 CF ii and TO 6 CF iii 9Sustainable urban developmentTO 4 ERDF e TO 6 ERDF e TO 9 ERDF a

NrPriority axisTO / IP 10Sustainable transportTE 7 CF i and TE 7 CF ii 11Infrastructure for ICT servicesTE 2 ERDF a and c 12Administrative capacityTE 11 ERDF and ESF 13-14Technical assistanceCF and ERDF

Main changes Clarification of intervention logic (education, social inclusion, RDI, SME competitiveness, energy, transport, ICT, public administration) Misunderstanding on: RIS3 framework vs RIS3 areas Setting baselines and target levels for ESF indicators Clearer commitment to DI under TO 9

Key outstanding issues in official negotiations of OP 1)Adding common indicator on creation of jobs under TO3 2)Setting 5 mln limit for investments into tourism and culture infrastructure 3)Setting baselines and target levels for ESF indicators

5 CSRs 1.Budget ja Buplic spending 2.Incentives to work (low income earners, family policy, childcare, regions faced with high unemployment). 3.Labour‐market relevance of education and training, specialisation in the research and innovation, cooperation between businesses. 4.Energy efficiency of residential and industrial buildings & environmental incentives for the transport sector. Cross‐border connections, improved integration of the Baltic energy markets. 5.Balance local government revenue against devolved responsibilities. Efficiency and better quality puplic services at local level.

5 CSRs 1.Strengthen medium-term budget framework and continue to enhance the efficiency of public spending. 2.Improve incentives to work through measures targeted at low income earners. Increase the efficiency and cost‐effectiveness of family policy, improve the availability and accessibility of childcare. Deploy coordinated measures for fostering economic development and entrepreneurship in regions faced with high unemployment. 3.Ensure the labour‐market relevance of education and training systems. Further intensify prioritisation and specialisation in the research and innovation systems and enhance cooperation between businesses, higher education and research institutions to contribute to international competitiveness. 4.Step up efforts to improve energy efficiency, in particular in residential and industrial buildings. Substantially strengthen environmental incentives for the transport sector to contribute to less resource‐intensive mobility. Continue the development of cross‐border connections to neighbouring Member States to diversify energy sources and promote competition through improved integration of the Baltic energy markets. 5.Better balance local government revenue against devolved responsibilities. Improve the efficiency of local governments and ensure the provision of quality public services at local level, especially social services complementing activation measures.

CSR 2 Improve incentives to work through measures targeted at low income earners. Increase the efficiency and cost‐effectiveness of family policy, improve the availability and accessibility of childcare. Deploy coordinated measures for fostering economic development and entrepreneurship in regions faced with high unemployment. Planned actions: Work-ablity reform Better access to welfare services Better access and quality of childcare service Involvement of NEET youth Prevention of young people dropping out of school or labour market

CSR 3: Ensure the labour‐market relevance of education and training systems. Further intensify prioritisation and specialisation in the research and innovation systems and enhance cooperation between businesses, higher education and research institutions to contribute to international competitiveness. Planned actions: Linking better education and the needs of labour market (monitoring, apprenticeship) Training of low skilled adults and development of their key competences Reorganisation of school network Smart specialisation measures Cooperation between research and enterpreneurship, internationalisation of research Reform of higher education and research institutions

CSR 4: Step up efforts to improve energy efficiency, in particular in residential and industrial buildings. Substantially strengthen environmental incentives for the transport sector to contribute to less resource‐intensive mobility. Continue the development of cross‐border connections to neighbouring Member States to diversify energy sources and promote competition through improved integration of the Baltic energy markets. Planned activities: -Increasing energy efficency of housing sector -Development of public transport -Increasing efficency of district heating -Development of resource efficient technologies in enterpreneurship

CSR 5: Better balance local government revenue against devolved responsibilities. Improve the efficiency of local governments and ensure the provision of quality public services at local level, especially social services complementing activation measures Planned activities: - Better provision of services -welfare services -education -youthwork -childcare -public transport -health care - Efficiency of local governments -Training of local governments -Development capacity (institutional capacity)