1. Cohesion Policy 2007-2013 Incorporating the Lisbon Strategy
Referring to the financial perspectives and the latest progress report on Cohesion.

2. Discussion up to February 2004EN
Discussion up to February 2004
General support for assisting areas below 75% of EU average GDP
Pressure to help 'statistically affected' regions
Pressure for 'territorial cohesion' (town/country, islands, mountains)
The great success and importance of Objective 2 (restructuring of economies hit by change)
Divergence over cash and method ( 'one per cent budget', re-nationalisation)
Divergence over the Lisbon Agenda
Background

3. The Lisbon Agenda: growth, competitiveness, employment
The Agenda was adopted on March 2000
Aims to make Europe the most competitive and dynamic economy in the world…
Measures on sustainable development were adopted in May 2001 (Gothenburg agenda)
Various benchmarks and targets: employment 70% by 2010, R&D 3% of GDP…
Recent reports indicate slow progress
background

4. The Lisbon Agenda: mid term review
Key recommendations:
The need for a spending instrument at EU level
The need for increased ownership involving the regions and social partners
The need for a more strategic approach
background

5. Cohesion Policy in support of Growth and JobsEN
Cohesion Policy in support of Growth and Jobs
Europe must:
renew the basis of its competitiveness,
increase its growth potential and its productivity
strengthen social cohesion, placing the main emphasis on knowledge, innovation and the optimisation of human capital.
To achieve these objectives it must
mobilise all appropriate national and Community resources- including Cohesion Policy
European Council, March 2005

6. Spring European CouncilEN
Key recommendations
1) Community resources, including cohesion policy, should be mobilised for 3 dimensions of the strategy – economic, social and environmental.
2) Regional and local actors should take greater ownership of the strategy
3) Greater synergies between Community funds and the EIB in R&D
Spring European Council

7. Key recommendations (cont.)
4) Reduction in the general level of state aid
5) Investment in infrastructure
6) Create more jobs with more active employment policies.
7) Integrated guidelines to be issued at Community-level;
MS to establish national reform programmes on growth and jobs
Spring European Council

8. A more strategic approachEN
A more strategic approach
Staff Working Document SEC (2005) 622 of 2 May 2005
provides guidance to MS in drawing up national reform programmes
new reporting structure to include cohesion policy
Community Lisbon Programme (what can be done at EU level)
Clearer division of
responsibilities

9. New reporting structureEN
New reporting structure
October 2005:
National Reform Programmes
submission by Member States 1
January 2006:
first Annual Progress Report
submitted by the Commission on the basis
of analysis of national reform programmes 2
March 2006:
Spring European Council
adoption by European Council of updated recommendations 3
5. Integrated Guidelines
October 2006:
submission by Member States of implementation reports
Includes chapter on national strategic reference frameworks and new OPs 4

10. Financial perspectives 2007-2013EN
Financial perspectives
The budget is now about 1.07% of GNI
The Commission proposed 1.21%
Six MS want 1%
Parliament has proposed 1.18% (with Cohesion getting 0.41% of GDP)
Proposed compromise for June Summit was 1.06%, with, for Cohesion Policy:
€307bn (not 336bn): 0.37% GDP (not 0.41%)
Convergence 82% (not 78%)
Competitiveness 15% (not 18%)
Territorial co-operation 2% (not 4%)
Financial aspects

11. Priorities of the reform Three new objectives
Convergence and competitiveness (regions below 75% GDP, statistical effect regions and the Cohesion fund)
Regional competitiveness (former Obj 2&3 with accent on Lisbon/Gothenburg, mainstream URBAN)
Territorial co-operation (all former INTERREG elements with encouragement to mainstream them also in above objectives)
Reform of the policy
Conclusions

12. Priorities of the reform Administrative simplificationEN
Priorities of the reform Administrative simplification
Keep what is known to be effective (programming, leverage, partnership, decentralised management)
Reduce the more complicated aspects (number of instruments, stages of programming etc.) while augmenting the role of the Council (adoption of strategic guidelines)
Reform of the policy
Conclusions

13. Cohesion Policy 2007-2013 Incorporating the Lisbon Strategy
The latest progress report on Cohesion.

14. EN
Disparity levels
Disparities in GDP per head between EU-25 still considerable (2003):
Latvia – 41% of EU average
Ireland – 132% of EU average
Luxembourg – 215% of EU average
New Member States – below 90% of EU average
Third
progress report

15. Regional disparities Regional disparities remain high (2002)EN
Regional disparities
Regional disparities remain high (2002)
189% of the EU-25 average in the 10 most prosperous regions
36% in the 10 least prosperous ones.
Over 1/4 of the EU’s population in 64 regions have GDP per head below 75% of EU average.
90% of population in the new Member States living in regions with GDP per head below 75% of EU average
13% of population in EU-15 living in regions with GDP per head below 75% of EU average
Third
progress
report, Part I

16. EN
Trends in disparities
since the mid-1990s, average EU growth growth has average just over 2% per year
regional disparity levels are higher than national disparities but are also falling
10% of EU25 population living in poorest regions (2.2% of total GDP in 2002; 1.5% in 1995)
still high levels of internal disparities
Part I

17. Regional Disparities in EU27EN
Regional Disparities in EU27
GDP per head in % in PPP (2002)
<50
 125
Index, EUR-27 = 100

18. EN
Employment rates
Employment rates – well short of the 70% Lisbon target
62.9% for the EU25 in 2003
Denmark, Sweden, the Netherlands and the UK – only MS with 70%
22 million additional jobs needed to meet 70% target
In the new Member States, 7 million additional jobs needed to meet 70% target (increase of ¼)
200 of the 254 EU regions are below the target rate
almost 15% of the population lives in regions where the rate is below 55%
employment rates remain low among most of the least prosperous regions.
Part I

19. Geographical Eligibility for Structural Funds Support 2007-2013EN
Geographical Eligibility for Structural Funds Support
Draft April 2005, GDP/head 
Objective 'Regional
Competitiveness and Employment'
Convergence objective
Regions > 75% in EU25)
Convergence objective
statistically affected regions
Objective 'Regional
Competitiveness and Employment'
Phasing-in regions,
"naturally" above 75%
Index EU 25 = 100
Source: Eurostat

20. Cohesion Policy 2007-2013 Incorporating the Lisbon Strategy
The Strategic guidelines.

21. The new Strategic guidelines: building in the Lisbon agenda (1)
I) Making Europe and its regions a more attractive place to invest and work
expand and improve transport infrastructures
improve the environmental contribution to growth and jobs
address the intensive use of traditional energy sources
II) Knowledge and innovation for growth
increase and improve investment in RTD
facilitate innovation and promote entrepreneurship
promote the information society for all
improve access to finance
Priorities

22. The new Strategic guidelines: building in the Lisbon agenda (2)
III) More and better jobs
attract and retain more people in employment and modernise social protection systems
improve adaptability of workers and enterprises and the flexibility of the labour market
increase investment in human capital through better education and skills
administrative capacity
health and the labour force
Part IV) Territorial Cohesion and co-operation
The contribution of cities to growth and jobs
Supporting the economic diversification of rural areas
Co-operation: cross border/trans-national/inter-regional
Priorities

23. EN
Timetable
June 2005: (No) Decision by Council on Financial Perspectives
July 2005 Draft Community Strategic Guidelines adopted by Commission: public consultation
Autumn 2005: - Decision by Council and European Parliament on cohesion policy regulations
- Community Strategic Guidelines published
- Preparation of National Strategic Reference Frameworks
2006 (?): Preparation of programmes for period
1 Jan 2007: Implementation begins: regime of 12ths if no budget
Next stages