1. EU Budget for the future Cohesion Policy 2021-27 Cosenza, 10 July 2018
#CohesionPolicy #EUinmyRegion

2. Key themes Modern Simple & flexible For all regions
Focus on smart, low carbon
Enabling conditions, link to Semester
Simple & flexible
50% shorter regulations
50 key simplifications
Adapts to emerging needs (migration, economy)
For all regions
Objective method
75% for poorest regions
Present for emerging needs elsewhere

3. Allocations

4. Cohesion Policy within the new MFF
A BUDGET FOR EUROPE’S PRIORITIES
The future long-term budget will be a budget for the Union’s priorities.
The Commission’s proposals will bring the structure and the programmes of the EU budget fully into line with the positive agenda of the Union post as agreed in Bratislava and Rome. The new architecture of the future Multiannual Financial Framework will provide greater transparency on what the EU budget is for and how the different parts of the budget will contribute. It will also provide the flexibility necessary to respond to evolving needs.
Programmes will be arranged around the main thematic spending priorities. These will correspond to the headings in the formal budget structure. Within each priority, programmes will be grouped in policy clusters, which will be reflected in the titles of the annual budget. This will provide greater clarity on how they will contribute to policy goals.
In practice, the formal structure of the budget only tells part of the story. Many of the Union’s priorities are complex and multi-faceted. It would not be possible to tackle every aspect with a single programme.
Under the Commission’s proposals, investment from multiple programmes will combine to address key crosscutting priorities such the digital economy, sustainability, security, migration, human capital and skills, as well as support for small businesses and innovation. The Commission proposes to simplify these interactions under the future framework, providing a much more coherent response to Europe’s challenges. The following sections set out the main reforms and programmes under each of the spending priorities.
ALLOCATIONS BY SUB-HEADINGS (current prices, in billion EUR):
Research & innovation: (of which Horizon Europe 97.6)
European Strategic Investments: 50 (of which InvestEU 14.7, CEF transport 12.8, CEF energy 8.6, CEF digital 3, Digital Europe 9.2)
Single Market: 6.4
Space: 16.2
Regional Development and Cohesion: (of which ERDF 226.3, CF 46.7)
Economic and Monetary Union: 25.1 (of which Reform Support Programme 25)
Investing in People, Social Cohesion and Values: (of which ESF , Erasmus 30)
Agriculture and Maritime Policy: (of which EAGF 286.2, EAFRD 78.8, EMFF 6.1)
Environment and Climate Action: 5.7 (of which LIFE 5.4)
Migration: 11.3 (of which AMIF 10.4)
Border Management: 21.3 (of which IBMF 9.3)
Security: 4.8 (of which ISF 2.5)
Defence: 19.5 (of which EDF 13)
Crisis Response (RescEU): 1.4
External Action: 105.2
Pre-Accession Assistance: 14.5
European Public Administration: 85.3

5. MATCHING PRIORITIES WITH RESOURCES Rebalancing and fairness
Evolution of main policy areas in the EU budget
Source: visual communication, chapter 4, title Communication chapter 4, text: communication p.17
The Commission has critically examined where savings can be made without undermining the added value of EU programmes. As part of this effort, the Commission proposes that the budget allocation to the Common Agricultural Policy and Cohesion Policy be moderately reduced to reflect the new context and to free up resources for other activities. The modernisation of these policies will allow them to continue to deliver on their core objectives while also contributing to new priorities. For example, Cohesion Policy will have an increasingly important role to play in supporting structural reform and the integration of migrants.
The result of these changes will be a rebalancing of the budget and an increasing focus on the areas where the European added value is highest.
*Adjusted for 1995 enlargement
Source: European Commission

6. MFF priorities MATCHING PRIORITIES WITH RESOURCES
To turn the political priorities agreed at EU level into results on the ground, well-designed programmes must be equipped with sufficient resources to make a difference. As explained in the Commission’s contribution to the Informal Leaders’ Meeting in February, decisions taken on levels of financing for the future long-term budget cannot be separated from the Union’s ambitions in each of the priority areas.
The Commission’s proposals are based on a rigorous assessment of the resources needed to deliver efficiently on the Union’s goals, and of the efficiency and added value of spending in each area. Through well- designed programmes, efficient implementation and intelligent combination with other sources of financing, even a modest EU budget can have a significant impact. However, there are limits to what this can achieve and, if Europe wants to move forward together on its positive agenda, it will require a budget to match.
The key challenge for the future EU budget is to provide adequate support for new and existing priorities while also addressing the shortfall in national contributions resulting from the United Kingdom’s withdrawal. The Commission proposes a balanced approach. New priorities should be financed predominantly by new resources. The shortfall arising from the United Kingdom’s departure should be partly matched by new resources and partly by savings and redeployments from existing programmes.
In order for the EU budget to make a meaningful contribution in many of the new priority areas, in particular where new instruments are being created, current levels of funding will need to be increased. Investing now in areas such as research and innovation, young people and the digital economy will pay rich dividends for future generations. This is why the Commission proposes significant increases in priority areas.
Note: Compared to MFF at EU-27 (including European Development Fund)

7. Allocations by Member State within the coehesion policy

9. GDP per capita as the main driver of changevs
The deep impact of the crisis on the Spanish GDP is well reflected in the new allocation.

11. Innovation remains concentrated

12. In 2015 deaths outnumbered births

13. Migration & mobility
Migration and mobility is main determinant of population change
Two out of three people in EU-13 live in a shrinking NUTS 3 region

14. Unemployment
Unemployment is still above pre-crisis level and regional disparities have not started narrowing yet
In particular youth unemployment remains high

15. Employment
Employment at an all time high, but the 2020 target of 75% is unlikely to be reached on time
Between 2008 and 2016, it only increased by 0.8% points
Many regions in the south and east of the EU still have (very) low employment rates

17. New regional eligibility map
The new Spanish eligibility map is composed of 5 less developed regions (Extremadura, Andalucía, Castilla-La Mancha, Ceuta and Melilla), 9 transition (Galicia, Asturias, Cantabria, La Rioja, Castilla y León, Comunidad Valenciana, Illes Balears, Murcia, Canarias) and only 5 more developed (País Vasco, Navarra, Aragón, Madrid and Cataluña).
Overall, 4 new regions fall to less developed and another 7 move from more developed to transition.

18. EUR 201 ERDf, EUR 41 mln CF, EUR 89 mln ESF+ This graph was published by El País and is thus widely known. Only poorer MS like BG, RO and GR (this latter hardly hit by the crisis) are better off. Italy's move has to be read in connection with the overall performance and the reception of migrants (so far…).

19. How are Cohesion Policy allocations set? The revised 'Berlin method'
GDP (incl. GNI for Cohesion Fund)
86%
81%
Labour market, education, demographics
14%
15%
Climate -  1%
Migration 3%
Total
100%
Labour market: unemployment rate, youth unemployment rate, employment rate
Education: early school leavers, tertiary level of education, low level of education
Demographics: population of regions, low density of population
Climate: Greenhouse gas emissions in the non-ESD sectors
Migration: Net migration of non-EU citizens
In addition, caps and safety nets apply to 17 MS (but not to ES or PT)