1. EU Cohesion Policy 2014 – 2020 Proposals from the European Commission
NO FINAL DECISIONS YET. NEGOTIATIONS ONGOING
European Union Cohesion Policy

2. 1. What is the impact of EU Cohesion Policy?
European Union Cohesion Policy

3. EU Cohesion Policy invests in …
Support for SMEs
Training
Energy efficiency
Renewable energy
Transport
Cooperation between regions
Research
and innovation
European Union Cohesion Policy

4. Results of EU Cohesion Policy (figures from 2000-2006 period)
8400 km of rail built or improved
5100 km of road built or improved
Access to clean drinking water for 20 million more people
Training for 10 million people each year
Over 1 million jobs created
GDP/capita up 5 % in newer Member States
European Union Cohesion Policy

5. 2. Why is the Commission proposing changes for 2014-2020?
European Union Cohesion Policy

6. Objectives Deliver the Europe 2020 strategy objectives
of smart, sustainable and inclusive growth
Focus on results
Maximise the impact of EU funding
European Union Cohesion Policy

7. Connecting Europe Facility
Proposed EU budget
“Ambitious but realistic” proposals issued by the Commission in June 2011 for the Multiannual Financial Framework (MFF)
Cohesion Policy
33 % (€336 billion)
Other policies
(agriculture, research, external etc.)
63 % (€649 billion)
Connecting Europe Facility
4 % (€40 billion)
European Union Cohesion Policy

8. 3. What are the main changes?
European Union Cohesion Policy

9. Reinforcing effectiveness and performance
Focus on results
Common & programme-specific indicators, reporting, monitoring & evaluation
Performance framework for all programmes
Clear and measurable milestones and targets
Performance reserve
5 % of national allocations (by Member State, fund and category of region)
Ex-ante conditionality
Ensuring conditions for effective investment are in place
Macro-economic conditionality
Alignment with new economic governance
European Union Cohesion Policy

10. More coherent use of available EU funds
Comprehensive investment strategy: aligned with Europe 2020 objectives
Coherence with National Reform Programmes
Coordination: cohesion policy, rural development, maritime & fisheries funds
Objectives and indicators to measure progress towards Europe 2020 targets
Effectiveness: introduction of a performance framework
Efficiency: reinforcement of administrative capacity, cutting red tape
Common Strategic Framework
Partnership Agreement
Operational Programmes
European Union Cohesion Policy

11. A menu of thematic objectives
Research & innovation
Information and communication technologies (ICT)
Competitiveness of Small and Medium-sized Enterprises (SMEs)
Shift towards a low-carbon economy
Climate change adaptation & risk prevention and management
Environmental protection & resource efficiency
Sustainable transport & removing bottlenecks in key network infrastructures
Employment & supporting labour mobility
Social inclusion & combating poverty
Education, skills & lifelong learning
Institutional capacity building & efficient public administrations
European Union Cohesion Policy

12. Concentrating resources to maximise impact
Concentration of ERDF investments
Energy efficiency & renewable energy
Research & innovation
Competitiveness of SMEs
More developed & transitional regions
Less developed regions
Flexibility – different regions have different needs Special arrangements for ex-convergence regions
European Union Cohesion Policy

13. European Social Fund (ESF)
Share of ESF within Cohesion Policy budget
Of total Structural Fund support (ERDF & ESF), ESF will represent:
25 % in less developed regions
40 % in transition regions
52 % in more developed regions
European Union Cohesion Policy

14. European Social Fund (ESF)
Fully in line with the Europe 2020 strategy
Promoting employment & supporting labour mobility
Investing in education, skills & life-long learning
Promoting social inclusion & combating poverty
Enhancing institutional capacity & efficient public administration
Reinforced social dimension
20 % of ESF allocations for social inclusion
Greater emphasis on fighting youth unemployment
Mainstreaming & specific support for gender equality & non-discrimination
European Union Cohesion Policy

15. Cohesion Fund
Supports Member States with GNI/capita < 90 % of EU27 average
Investing in environment
Climate change adaptation and risk prevention
Water and waste sectors
Biodiversity including through green infrastructures
Urban environment
Low carbon economy
Investing in transport
Trans-European Transport Networks (TEN-T)
Low-carbon transport systems and urban transport
European Union Cohesion Policy

16. Simplification
Common rules - funds covered by Common Strategic Framework
Cohesion Policy, rural development and maritime & fisheries policy
Option of multi-fund programmes
ERDF, ESF and Cohesion Fund
Streamlined delivery system
Harmonised rules on eligibility and durability
Greater use of simplified costs
Linking payments with results
e-Cohesion: “one stop shop” for beneficiaries
Proportional approach to control
European Union Cohesion Policy

17. Reinforcing Territorial Cohesion
Focus on sustainable urban development
At least 5 % of ERDF resources
Creation of urban development platform
Networking between cities and exchanges on urban policy
Innovative actions for sustainable urban development
Subject to a ceiling of 0.2 % of the annual funding
Areas with specific natural or demographic features
Additional allocation for outermost & sparsely populated regions
European Union Cohesion Policy

18. An investment-oriented policy
Promoting the use of innovative financing instruments
Extending scope to all areas of investment
Clearer regulatory framework
10 % bonus for innovative financing instruments & community-led development
A range of options offering flexibility to programme managers
Maximum co-financing rates
75-85 % in less developed and outermost regions
60 % in transition regions
50 % in more developed regions
European Union Cohesion Policy

19. Management and control
Financial management
New system of annual accounts
Annual management declaration
Annual clearance of accounts by the Commission
Management and control systems
National accreditation (greater responsibility for Member States)
Managing Authorities may act as Certifying Authorities
Commission can review accreditation (taking into account risks & track record)
Greater proportionality
Exemptions for low volume programmes
Exemptions for systems that have delivered consistently good results
Limitations on frequency of Commission audits on individual operations
European Union Cohesion Policy

20. 4. How will the funds be allocated?
European Union Cohesion Policy

21. MFF vs
In million EUR, 2011 prices
Cohesion policy

22. Results of the European Council (2)
Cuts of EUR 85 bn in commitments and EUR 90 bn in payments in comparison with the Commission proposal for MFF, + cuts of EUR 9.4 bn in elements outside the MFF:
MFF
CAP*: bn
Fisheries and Life bn
Cohesion: bn
Connecting Europe Facility bn
Competitiveness**: bn
Security and citizenship: bn
External action: bn
Administration: bn
* Including the reserve for crisis in the agricultural sector
** including ITER et Copernicus (GMES)
Instruments outside the MFF
Flexibility instrument: bn
Emergency aid reserve: bn
EU Solidarity Fund: bn
EGF: bn
EDF: bn

23. Despite the cuts in important areas, positive aspects remain
+ EUR 34 bn (+37 %) for competitiveness, notably research and development, education and mobility (Erasmus) and the Connecting Europe Facility
Cohesion Policy: Result-orientation and strict application of conditionality to reinforce link with the Europe 2020 Strategy and structural reforms
Climate: objective to commit 20% of EU spending to climate action objectives

24. New architecture of Cohesion Policy
Three categories of regions
Less developed regions (GDP per capita less than 75% of EU average)
Transition regions (GDP per capita between 75% and 90% of EU)
More developed regions (GDP per capita more than 90% of EU average)
Cohesion Fund for Member States with GNI per capita <90%
Territorial cooperation (3 strands: cross-border, transnational, interregional cooperation)

26. Changes in regional eligibility 2007-13 vs. 14-20
Difference in population covered between and
million inhabitants and (in parenthesis) number of regions (excluding Croatia)
Convergence
154.7
123.3
Less developed
(84)
(69)
Phasing-in and -out
36.5
68.1
Transition
(28)
(51)
Competitiveness
307.1
307.0
More developed
(159)
(151)
Total
498.4
(271)
* based on GDP/head figures ( )

27. Cohesion Policy budget (commitments) - billion EUR (2011 prices)
Less developed regions
164.3
Convergence
201.8
Transition regions
31.7
Phasing in/Phasing out
25.5
More developed regions
49.5
RCE
44.0
Cohesion Fund
66.4
70.7
European territorial cooperation
8.9
Of which
Cross border cooperation
6.6
Transnational cooperation
1.8
Interregional cooperation
0.5
Outermost regions and northern sparsely populated regions
1.4
1.7
Youth Employment initiative
3.0 --
TOTAL
325.1
353.8

28. Average annual investment intensity: Balanced support for the 3 categories of regions

29. Where can I find further information?
on Twitter
European Union Cohesion Policy