1. Bilateral cooperation between Italy and Turkey Evolution of EU Regional Policies in Italy The Italian experience in dealing with Structural Funds

2. Bilateral cooperation between Italy and Turkey Challenges in cohesion Population Total 58.750.000 (12% of EU)Total 58.750.000 (12% of EU) North39.300.000 (appr. 2/3rd)North39.300.000 (appr. 2/3rd) South19.450.000 (appr. 1/3rd)South19.450.000 (appr. 1/3rd)Welfare GDP Total107% of EU av.GDP Total107% of EU av. GDP North120% of EU av.GDP North120% of EU av. GDP South 72% of EU av.GDP South 72% of EU av. Languages and dialects 34 different dialects34 different dialects 12 different languages12 different languagesUrbanisation Urban population approx. 20% of the totalUrban population approx. 20% of the total Rome (2.800.000) - 7.400.000Rome (2.800.000) - 7.400.000 Milan (1.300.000) – 3.700.000Milan (1.300.000) – 3.700.000 Naples (1.000.000) – 3.100.000Naples (1.000.000) – 3.100.000 ROMEMILANNAPLES

3. Bilateral cooperation between Italy and Turkey South Italy: the “Mezzogiorno” ROMA BOLOGNA MILANO PALERMO BARI NAPOLI TORINO Poverty rate: North: 31,6% Mezzogiorno : 68,4% Unemployment rate: Italy: 8,7% Mezzogiorno : 17,7% AgricultureIndustryServicesMezzogiorno8.424.667.0 Italy4.931.863.3 EU4.028.267.8

4. Bilateral cooperation between Italy and Turkey ASSISTANCE POLICY SUBSIDIES AND NOT INCENTIVES ASSISTANCE POLICY SUBSIDIES AND NOT INCENTIVES GEOGRAPHICAL UNBALANCES DIFFERENT STAGES OF DEVELOPMENT GEOGRAPHICAL UNBALANCES DIFFERENT STAGES OF DEVELOPMENT Problems of “Mezzogiorno” SCARCE PROGRAMMING THE CATHEDRALS IN THE DESERT SCARCE PROGRAMMING THE CATHEDRALS IN THE DESERT

5. Bilateral cooperation between Italy and Turkey Breakdown of regional finances SOURCESTYPOLOGIESNORTHSOUTH Own income Regional taxes on cars, utilities, education, productive activities and personal income, concessions, others… 38,7%20,5% State transfers % of VAT, % of oil taxes, other contributions… 44,3%56% Contributions (also from the EU) Co-financing of Regional Operational Programmes, National fund for under-utilised areas 17%23,5%

6. Bilateral cooperation between Italy and Turkey NEGOTIATED PROGRAMMING National Policy for Mezzogiorno The Fund for Under-utilised Areas Need for more convergence with the EU SFs in terms of rules and criteria … Framework Programme Agreements Institutional Agreements

7. Bilateral cooperation between Italy and Turkey NEGOTIATED PROGRAMMING  INTERACTION AMONG ADMINISTRATIVE LEVELS  COMPROMISE BETWEEN DIFFERENT INTERESTS  TRANSPARENCY IN PROCEDURES NEGOTIATED PROGRAMMING  INTERACTION AMONG ADMINISTRATIVE LEVELS  COMPROMISE BETWEEN DIFFERENT INTERESTS  TRANSPARENCY IN PROCEDURES MANAGEMENT PROCEDURES  DECENTRALISATION  INTEGRATED APPROACH  PERFOMANCE BONUSES MANAGEMENT PROCEDURES  DECENTRALISATION  INTEGRATED APPROACH  PERFOMANCE BONUSES PARTNERSHIP SCHEMES  PUBLIC/PRIVATE PARTNERSHIP  INSTITUTIONAL PARTNERSHIP  SOCIAL PARTNERSHIP PARTNERSHIP SCHEMES  PUBLIC/PRIVATE PARTNERSHIP  INSTITUTIONAL PARTNERSHIP  SOCIAL PARTNERSHIP Key elements of Italian Reg. Pol.

8. Bilateral cooperation between Italy and Turkey The “Mezzogiorno” in the SFs Structural Funds 2000-2006 50.000.000.000€ Approx. 50% co-funded by the EC Approx. 70% managed by Regional Governments Objective 1 regions 108.000 km2 19.300.000 pop. Structural Funds 2000-2006 50.000.000.000€ Approx. 50% co-funded by the EC Approx. 70% managed by Regional Governments Objective 1 regions 108.000 km2 19.300.000 pop. OBJECTIVE 1 REGIONS ROMA BOLOGNA MILANO PALERMO BARI NAPOLI TORINO

9. Bilateral cooperation between Italy and Turkey The Italian Community Support Framework - its structure AXES TOTAL € Natural resources 7.766.970.000 € Cultural resources 2.577.800.000 € Human resources 8.320.430.000 € Local dev. systems 14.956.420.000 € Urban dev. 2.041.195.000 € Networks 9.533.400.000 € Technical assistance 880.500.000 € TOTAL 46.076.715.000 € 94% Absorbed

10. Bilateral cooperation between Italy and Turkey National Operative Programmes (NOP) 14.123.667.000 € Research, innovation and Academy Research, innovation and Academy Education Education Crime prevention and control Crime prevention and control Enterprise support schemes Enterprise support schemes Interregional transports Interregional transports Fishery Fishery Technical Assistance Technical Assistance National Operative Programmes (NOP) 14.123.667.000 € Research, innovation and Academy Research, innovation and Academy Education Education Crime prevention and control Crime prevention and control Enterprise support schemes Enterprise support schemes Interregional transports Interregional transports Fishery Fishery Technical Assistance Technical Assistance Regional Operative Programmes (ROP) 31.953.048.000 € Basilicata Region Basilicata Region Calabria Region Calabria Region Campania Region Campania Region Apulia Region Apulia Region Sardinia Region Sardinia Region Sicily Region Sicily Region Regional Operative Programmes (ROP) 31.953.048.000 € Basilicata Region Basilicata Region Calabria Region Calabria Region Campania Region Campania Region Apulia Region Apulia Region Sardinia Region Sardinia Region Sicily Region Sicily Region Operational Programmes in the Italian CSF

11. Bilateral cooperation between Italy and Turkey The new SFs programming period ROMA BOLOGNA MILANO PALERMO BARI NAPOLI TORINO Structural Funds 2007-2013 46.000.000.000€ Approx. -8% compared to the previous period 15 Regional Programmes for Competitiveness 5 Regional Programmes for Convergence 5 National Programmes for Convergence 1 National Programme for Competitiveness 2 Interregional Programmes for Convergence Structural Funds 2007-2013 46.000.000.000€ Approx. -8% compared to the previous period 15 Regional Programmes for Competitiveness 5 Regional Programmes for Convergence 5 National Programmes for Convergence 1 National Programme for Competitiveness 2 Interregional Programmes for Convergence CONVERGENCE REGIONS COMPETITIVENESS REGIONS

12. Bilateral cooperation between Italy and Turkey The Italian choice for 2007/13 To make National Policy for “Mezzogiorno” completely coherent with the European development and cohesion Policy and share its objectives of economic, social and territorial cohesion and national competitiveness Italy (Central Government and all the Regional Governments) decided to have a single strategic document designed through a single programming scheme. This entails that the NSF (QSN) includes both the EC and National Policies ThusThus

13. Bilateral cooperation between Italy and Turkey In practical terms... The budget law proposal being discussed in the Parliament has allocated about 63 billion € for the Fund for Under-utilised Areas The allocation among regions is being discussed on the basis of the SF allocation The budget law proposal being discussed in the Parliament has allocated about 63 billion € for the Fund for Under-utilised Areas The allocation among regions is being discussed on the basis of the SF allocation The allocation between Centre- North and Southern Regions is 15% and 85% respectively The proportion of resources allocated between Centre and Regions is respectively 30% and 70% The allocation between Centre- North and Southern Regions is 15% and 85% respectively The proportion of resources allocated between Centre and Regions is respectively 30% and 70% NATIONAL SIDE EUROPEAN SIDE

14. Bilateral cooperation between Italy and Turkey The Italian National Strategic Framework - its structure NSRF Macro-Objectives NSRF Priorities NSRF Priorities 1. Develop the knowledge area 1. Improvement and valorization of human resources 2. Research and innovation for competitiveness 2. Improve quality of life, security and inclusion 3. Sustainable and effective use of environmental resources 4. Social inclusion and service for quality of life and territorial attractiveness 3. Reinforce productive chains, services and competition 5. Valorization of natural and cultural resources 6. Networks and links for mobility 7. Competitiveness of productive systems and employment 8. Competitiveness and attractiveness of urban systems 4. Internationalise and modernise 9. Internationalization and investment attraction 10. Governance and Institutional building

15. Bilateral cooperation between Italy and Turkey Synergies between EU and National resources in the Italian NSF ConvergenceERDFESFNational Safety and crime prevention X EducationXXX Research and competitiveness XX Networks and mobility XX Governance and TA XXX 5 Regional Programmes XXX Convergence (Inter-regional programmes) ERDFESFNational Renweable energy XX Culture and Tourism XX CompetitivenessERDFESFNational Systems’ development actions X 15 Regional Programmes XX