1. The cohesion policy of the European Union Pelle Anita University of Szeged Faculty of Economics and Business Administration

2. Cohesion policy the expression has been used for a couple of years the expression has been used for a couple of years earlier: regional policy, structural policy earlier: regional policy, structural policy this change has some relevance: this change has some relevance: disparities within the EU cannot necessarily only be reduced by decreasing the differences in development of certain territories disparities within the EU cannot necessarily only be reduced by decreasing the differences in development of certain territories the inner cohesion of the EU has to be strengthened in order to improve the EU’s position in the global competition the inner cohesion of the EU has to be strengthened in order to improve the EU’s position in the global competition the first document that calls this EU policy by the new name is: the first document that calls this EU policy by the new name is: Third Report on Economic and Social Cohesion, February 2004 Third Report on Economic and Social Cohesion, February 2004

3. Principles have remained unchanged since 1988 have remained unchanged since 1988 programming – projects are pipelined into multiannual programmes programming – projects are pipelined into multiannual programmes current period: 2007-2013 current period: 2007-2013 concentration – primarily of resources, implementation of integrated projects concentration – primarily of resources, implementation of integrated projects partnership – cooperation between different levels, among local actors partnership – cooperation between different levels, among local actors additionality – own resources, national contribution additionality – own resources, national contributionfurthermore: subsidiarity – problems have to be handled at the lowest level possible subsidiarity – problems have to be handled at the lowest level possible

4. The cohesion report other aspects outside regional development: other aspects outside regional development: society’s ageing is putting a constantly increasing burden on active employees and on social security systems society’s ageing is putting a constantly increasing burden on active employees and on social security systems strengthening social cohesion is crucial in the battle against poverty strengthening social cohesion is crucial in the battle against poverty the ability to create new workplaces makes a considerable contribution to global competitiveness – and not only in territories and industries that are lagging behind! the ability to create new workplaces makes a considerable contribution to global competitiveness – and not only in territories and industries that are lagging behind! further factors of competitiveness: infrastructure of all kind, development of human capital, innovation capacities further factors of competitiveness: infrastructure of all kind, development of human capital, innovation capacities

5. New set of targets earlier: reduction of regional/territorial disparities earlier: reduction of regional/territorial disparities currently: competitiveness – employment – cohesion currently: competitiveness – employment – cohesion further targets: further targets: building a knowledge-based society building a knowledge-based society social inclusion social inclusion sustainable development sustainable development completion of the single market completion of the single market

6. Recommendations of the cohesion report three priorities: three priorities: convergence: supporting growth and job creation in the least developed regions convergence: supporting growth and job creation in the least developed regions regional competitiveness and employment: anticipating and promoting change regional competitiveness and employment: anticipating and promoting change European territorial cooperation: fostering the balanced development of the territory of the EU European territorial cooperation: fostering the balanced development of the territory of the EU more expressive application of subsidiarity in implementation more expressive application of subsidiarity in implementation greater concentration greater concentration

7. Eligible areas innovation and knowledge-based society innovation and knowledge-based society accessibility and services of general economic interest accessibility and services of general economic interest not only physical infrastructure but also ICT! not only physical infrastructure but also ICT! environment and risk prevention environment and risk prevention principles: prevention, intervention at source principles: prevention, intervention at source education, employment and social support systems education, employment and social support systems adaptability of workers adaptability of workers geographical, professional and organisational mobility geographical, professional and organisational mobility human capital and labour supply human capital and labour supply

8. Support schemes non-reimbursable grants are given through: non-reimbursable grants are given through: European Regional Development Fund (ERDF) European Regional Development Fund (ERDF) support to infrastructural (small scale) projects support to infrastructural (small scale) projects European Social Fund (ESF) European Social Fund (ESF) support to human projects support to human projects Cohesion Fund (CF) Cohesion Fund (CF) support to (large scale) environmental and transport infrastructure projects support to (large scale) environmental and transport infrastructure projects favourable credits and loans (low interest rate, long period) are available at: favourable credits and loans (low interest rate, long period) are available at: European Investment Bank (EIB) European Investment Bank (EIB)

9. Regulation in force (2007-2013) the three priorities of the cohesion report have been adopted the three priorities of the cohesion report have been adopted The Convergence objective is quite close to the previous "Objective 1". It aims to help the least-developed Member States and regions catch up more quickly with the EU average by improving conditions for growth and employment. It covers the Member States and regions whose development is lagging behind. The fields of action will be physical and human capital, innovation, knowledge-based society, adaptability to change, the environment and administrative effectiveness. It will be financed by the ERDF, the ESF and the Cohesion Fund. The Convergence objective is quite close to the previous "Objective 1". It aims to help the least-developed Member States and regions catch up more quickly with the EU average by improving conditions for growth and employment. It covers the Member States and regions whose development is lagging behind. The fields of action will be physical and human capital, innovation, knowledge-based society, adaptability to change, the environment and administrative effectiveness. It will be financed by the ERDF, the ESF and the Cohesion Fund.

10. Regulation in force II. (2007-2013) The Regional Competitiveness and Employment objective aims to strengthen the competitiveness, employment and attractiveness of regions other than those which are the most disadvantaged. It must help to anticipate economic and social changes, promote innovation, entrepreneurship, protection of the environment, accessibility, adaptability and the development of inclusive labour markets. It will be financed by the ERDF and the ESF. The Regional Competitiveness and Employment objective aims to strengthen the competitiveness, employment and attractiveness of regions other than those which are the most disadvantaged. It must help to anticipate economic and social changes, promote innovation, entrepreneurship, protection of the environment, accessibility, adaptability and the development of inclusive labour markets. It will be financed by the ERDF and the ESF.

11. Regulation in force III. (2007-2013) The European Territorial Cooperation objective aims to strengthen cross-border, transnational and inter- regional cooperation. It is based on the old INTERREG initiative and will be financed by the ERDF. It aims to promote common solutions for neighbouring authorities in the fields of urban, rural and coastal development, the development of economic relations and the creation of networks of small and medium-sized enterprises (SMEs). Cooperation will be based around research, development, information society, the environment, risk prevention and integrated water management. The European Territorial Cooperation objective aims to strengthen cross-border, transnational and inter- regional cooperation. It is based on the old INTERREG initiative and will be financed by the ERDF. It aims to promote common solutions for neighbouring authorities in the fields of urban, rural and coastal development, the development of economic relations and the creation of networks of small and medium-sized enterprises (SMEs). Cooperation will be based around research, development, information society, the environment, risk prevention and integrated water management.

12. Framework for implementation: objectives 1 and 2 it is decided at the Member States’ level it is decided at the Member States’ level the EU regulates the institutional framework, within which the Member States have great freedom the EU regulates the institutional framework, within which the Member States have great freedom defined at the EU level : defined at the EU level : National Strategic Reference Framework (NSRF) National Strategic Reference Framework (NSRF) to show the relations between EU targets and the national reform programme to show the relations between EU targets and the national reform programme is in force between January 1, 2007 and December 31, 2013 is in force between January 1, 2007 and December 31, 2013 Operative Programmes (OPs) Operative Programmes (OPs) based on the NSRF, related to the whole programming period based on the NSRF, related to the whole programming period are the basis for the specific calls for proposals are the basis for the specific calls for proposals

13. Institutions for implementation: objectives 1 and 2 according to Member States’ decision according to Member States’ decision basic orgranisations at the level of the OPs : basic orgranisations at the level of the OPs : Managing Authority (MA) Managing Authority (MA) publishing the calls for proposals, contracting, program level monitoring publishing the calls for proposals, contracting, program level monitoring Intermediate Bodies (IBs) Intermediate Bodies (IBs) take over certain tasks from the MA take over certain tasks from the MA Paying Authority (PA) Paying Authority (PA) provides financial assistance on account of payment requests of beneficiaries provides financial assistance on account of payment requests of beneficiaries

14. Framework for implementation: objective 3 has been developed based on the experiences of INTERREG has been developed based on the experiences of INTERREG three main areas: three main areas: 1. joint local and regional cross-border initiatives 2. transnational cooperation to promote integrated spatial development 3. interregional cooperation and exchange of views 37.5 per cent of the EU’s population lives in cross- border areas 37.5 per cent of the EU’s population lives in cross- border areas budgetary proportions: budgetary proportions: 1. 6,44 billion EUR 2. 1,83 billion EUR 3. 445 million EUR

15. Other support schemes of the EU I. the European Union provides financial assistance through other common policies, in order to achieve the common goals the European Union provides financial assistance through other common policies, in order to achieve the common goals these, except for agricultural policy, are considerably smaller in volume than cohesion policy support these, except for agricultural policy, are considerably smaller in volume than cohesion policy support relevant areas: relevant areas: agricultural policy agricultural policy environmental policy environmental policy research and development policy research and development policy enterprise development policy enterprise development policy transport policy transport policy

16. Other support schemes of the EU II. these grants are also available through application for calls these grants are also available through application for calls many of these schemes are Brussel-centered many of these schemes are Brussel-centered the participation of non-EU-countries is limited (e.g. as partners) or not possible, and it is also influenced by the country’s status (e.g. member of the European Economic Area, Candidate Country, has signed a Stability Agreement) the participation of non-EU-countries is limited (e.g. as partners) or not possible, and it is also influenced by the country’s status (e.g. member of the European Economic Area, Candidate Country, has signed a Stability Agreement) further information for non-EU-countries: further information for non-EU-countries: http://ec.europa.eu/europeaid/index_en.htm http://ec.europa.eu/europeaid/index_en.htm

17. Thank you for your attention!