1. Mechanisms under the Human Capital OP counteracting economic slowdown
Paweł Chorąży
Director
Department for ESF Management
Ministry of Regional Development
Poland
ESF Technical Working Group
Paphos, June 2009
Ministry of Regional Development -

2. Macroeconomic situation in Poland
In comparison to the EU, the effects of the economic slowdown in Poland are delayed
According to the Polish central bank prognosis the biggest slowdown of the Polish economy is expected in 3Q 2009
Ministry of Regional Development -

3. Macroeconomic situation in Poland
The unemployment rate has gone up from the beginning of (from 9.5% in 4Q 2008 to 11.2% in 1Q 2009)
Ministry of Regional Development -

4. Pillar 1. Raising the ESF contract level
Main measures undertaken by the ESF Managing Authority in Poland in the context of economic slowdown are based on 4 pillars:
Pillar 1. Raising the ESF contract level
Pillar 2. Improving procedures and introducing new ones to speed up application process
Pillar 3. Broadening support and introducing new instruments supporting professional activity
Pillar 4. Legal changes broadening the scope of State aid schemes in accordance with the Communication from the Commission — „new measure”
up to 44.2% of ESF total allocation for by the end of 2009
Ministry of Regional Development -

5. Scale of anti-crisis measures under the HC OP
projected contraction level for 2009:
ca. 4.1 bln EUR
(44.2% of HC OP allocation for )
of which
direct anti-crisis measures in 2009:
ca. 200 mln EUR
up to 44.2% of ESF total allocation for by the end of 2009
Ministry of Regional Development -

6. Pillar 1. Raising the ESF contract level
up to 44.2% of ESF total allocation for by the end of 2009
Ministry of Regional Development -

7. Purpose / main principles
Pillar 2
Pillar 2. Improving procedures and introducing new ones to speed up application process
Mechanism
„Fast assessment track” in the application procedure
Purpose / main principles
application assessment period is shortened to 30 days
the shortened procedure can be used in 2009 and 2010
this solution can be used by the Institution Organising the Call for proposals (IOC) in order to select the projects that are directed at people in danger of unemployment or the unemployed (especially concerning outplacement projects)
using such a mechanism is justified if an area is suffering from the economic slowdown that can contribute to the mass redundancy
Entry into force
1 April 2009
Ministry of Regional Development -

8. Purpose / main principles
Pillar 2
Pillar 2. Improving procedures and introducing new ones to speed up application process
Mechanism
Annex contracts with the beneficiaries who already are implementing the projects concerning starts up allowances and „bridging support”
Purpose / main principles
to increase the value of projects and direct support to a greater number of people in shorter time
additional amount of funds allow to provide support to those project participants who did not receive it previously, because of limited project budget
Entry into force
June 2009
Ministry of Regional Development -

9. Purpose / main principles
Pillar 2
Pillar 2. Improving procedures and introducing new ones to speed up application process
Mechanism
Increasing the allocation of call for proposals
Purpose / main principles
flexible financial management in the time of economic slowdown
it allows to increase the number of projects corresponding to the local labour market needs
Entry into force
June 2009 (dependent on the timetables of call for proposals)
Ministry of Regional Development -

10. Purpose / main principles
Pillar 3
Pillar 3. Broadening support and introducing new instruments supporting professional activity
Mechanism
Implementation of „rapid reaction” projects
Purpose / main principles
regional Intermediate Bodies in the region could decide to implement such systemic project
the aid operator could deliver immediate support to the workers from the companies undergoing restructuring (including e.g. counselling, training or job-search assistance and allowances)
Entry into force
August/September 2009
Ministry of Regional Development -

11. Purpose / main principles
Pillar 3
Pillar 3. Broadening support and introducing new instruments supporting professional activity
Mechanism
Broadening the scope of support in outplacement projects to the start-up grants and „bridging support”
Purpose / main principles
it allows to deliver more comprehensive support under one outplacement project to workers in companies undergoing restructuring
Entry into force
June 2009
Ministry of Regional Development -

12. Purpose / main principles
Pillar 3
Pillar 3. Broadening support and introducing new instruments supporting professional activity
Mechanism
Imposing additional project selection criteria related to economic slowdown
Purpose / main principles
the criteria will be proposed by the Managing Authority for specific types of operation and then approved by the Monitoring Committee
the criteria will be set on the basis of the needs analysis of the target groups that suffer from the economic slowdown
i.e.:
10% of project target group are people whose job contract has been terminated due to reasons not concerning the worker
the outplacement project is implemented in partnership with the company undergoing restructuring
Entry into force
June 2009
Ministry of Regional Development -

13. Purpose / main principles
Pillar 3
Pillar 3. Broadening support and introducing new instruments supporting professional activity
Mechanism
Mobility (relocation) allowance
Purpose / main principles
new instrument of support delivered in the HC OP projects aimed at re-integration into employment (as a part of a broader set of services, including also e.g. counselling, training or job-search assistance)
one-off allowance could be offered to those project participants who take up a job in place located more than 50 km from the present place of living in order to cover commuting expenses or costs of settling in a new place
it will be an equivalent of six unemployment benefits – 3.45 thousand zlotys (ca euros)
the allowance will be irreclaimable if the worker keeps his new job for at least 3 months
Entry into force
June/July 2009
Ministry of Regional Development -

14. Purpose / main principles
Pillar 3
Pillar 3. Broadening support and introducing new instruments supporting professional activity
Mechanism
Top-up compensation
Purpose / main principles
complementarity with the European Globalisation Adjustment Fund
new instrument of support delivered in the HC OP projects aimed at re-integration into employment (as a part of a broader set of services, including also e.g. counselling, training or job-search assistance)
one-off allowance could be offered to those outplacement project participants who take up lower-paying job than the previous one
it will be an equivalent of three times the difference between the old (i.e. higher) and the new (i.e. lower) wage, with a maximum of 4 thousand zlotys (ca. 900 euros)
the allowance will be irreclaimable if the worker keeps his new job for at least 3 months
Entry into force
June/July 2009
Ministry of Regional Development -

15. Purpose / main principles
Pillar 4
Pillar 4. Legal changes broadening the scope of State aid schemes in accordance with the Communication from the Commission — „new measure”
Mechanism
Law changes in the scope of State aid schemes
Purpose / main principles
introducing de minimis aid for training & consultancy projects
implementing Temporary framework for state aid measures into training & consultancy projects
the aid schemes are being prepared by the Managing Authority
Entry into force
October/November 2009
Ministry of Regional Development -

16. Thank you for your attention
Ministry of Regional Development Department for ESF Management
Thank you for your attention
Ministry of Regional Development -