eu policies, funds and regulations jela tvrdonova nr 2007
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EU policies, funds and regulations
Jela Tvrdonova
NR 2007
Lisbon strategy 2000
The conclusions of the March 2000 European Council in Lisbon
The basic text defining the Lisbon strategy – defined a strategy and a broad range of objectives and policy tools with the aim of making the European Union more competitive.
Lisbon strategy 2000
• “Europe must renew the basis of itscompetitiveness, increase its growthpotential and its productivity and strengthensocial cohesion, placing the main emphasison knowledge, innovation and theoptimisation of human capital.• To achieve these objectives, the Union mustmobilise all appropriate national andCommunity resources – including theCohesion policy“
Lisbon strategy 2000
Art. 158 of the Treaty states that, in order tostrengthen its economic and social cohesion, the Community shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions or islands, including rural areas.
Lisbon strategy 2000
The enlargement of the Union to 25 Member States, later to 27 or more,presents an unprecedented challenge for the competitiveness and internal cohesion of the Union.
At the same time, some of the poorest parts of the new Member States have someof the highest growth rates in the Union
Lisbon strategy 2000
In meeting the political objectives and in particular the key objective of fostering real convergence,
The actions should be concentrated where needs are greatest in pursuit of priorities that promote
• growth, • competitiveness and • employment as set out in the renewed Lisbon strategy. These are also basic principles of the reform of cohesion
policy for the period 2007- 2013 presented by the EC in the Third Cohesion Report of February 2004 and in budgetary and legislative form in July 2004.
Lisbon strategy 2000
The success of cohesion policy depends on a range of
conditions which favour investment in:• macroeconomic stability, • structural and administrative reforms, • good governance, • a business-friendly climate • including the availability of a highly qualified
workforce
Re-newed Lisbon Agenda
Although the poor economic performance has partly been the result of the cyclical slowdowns at world level, more needs to be done to stimulate economic growth in Europe.
In February 2005, the Commission proposed anew Partnership for Growth and Jobs to the
European Council of March 2005. The Council confirmed its objectives and
underlined the need to re-launch the Lisbon Strategy.
Re-newed Lisbon Agenda
In the period since the March 2005 European Council and the Commission has adopted guidelines for the growth and jobs agenda in order to assist Member States in developing national reform programmes.
In parallel, the Commission prepared
a Lisbon Community Programme.
Strategic guidelines for the new Cohesion policy
For the EU Cohesion policy – new – strategic approach set up in the Strategic guidelines for 2007 - 2013
The Commission’s proposals seek improvements in two main areas:• First, the strategic dimension of this policy is strengthened to ensure
that Community priorities (expressed in renewed Lisbon Agenda) are better integrated into national and regional development programmes.
• Second, efforts are made to ensure greater ownership of cohesion policy on the ground.
This is reflected in a reinforced dialogue between the Commission, the Member States and the regions and in a clearer and more decentralised sharing of responsibilities in relation to key areas such as:
• financial management and control, • promotion public-private partnerships.
Strategic guidelines for the new Cohesion policy
The Community Strategic Guidelines have the following main characteristics:• The financial instruments at the disposal of Cohesion policy are the
Structural Funds (the ERDF and the ESF) and the Cohesion Fund.• Their key objective is to identify Community priorities for support under
cohesion policy with a view to strengthening synergies and helping to deliver, the Lisbon strategy for growth and jobs;
• They concern only the part of national and regional investments co-financed by the Structural Funds and the Cohesion fund;
• They need to be understood along with relevant regultions, which set up the purpose and the scope of assistance of each Fund.
• While the Community Strategic Guidelines seek to identify within that scope the areas important for the realisation of Community priorities, particularly those of the renewed Lisbon strategy;
• They reflect discussion with the Member States and within the different Commission services.
• They create the base for setting up national strategic reference frameworks
Contribution of the Cohesion Policy
Cohesion policy already contributes to the Lisbon strategy:• significant macro-economic impact in the less developed
Member States and regions, • multiplier effect on the EU as a whole.• contributIONS to the competitiveness of regions by
tapping underutilised resources and mobilising endogenous potential.
• strengthening economic and political integration through, developing infrastructure networks,
• raising the skills of the Community’s citizens, • enhancing the accessibility of remote regions• promoting cooperation.
Contribution of the Cohesion Policy
There are several ways in which cohesion policy can continue to make a significant contribution to the Lisbon priorities by:
• Key support for investment in physical and human capital to address structural weaknesses, particularly in less developed countries and regions, thus contributing to an increase in the Union’s economic and employment growth potential.
• It is the only policy to provide a stable seven-year framework of investment.
• Developing synergies and complementarities• with other Community policies SUCH AS: Trans European
Network projects, environmental and RTD policies• Leverage effect - shifting resources for investment to areas where
expenditure can have the greatest impact and added value.
Contribution of the Cohesion Policy
Improving governance via• favourising public–private partnerships; improvements in
institutional capabilities in policy design and delivery; • The diffusion of an evaluation culture; • transparency;• regional cooperation and the exchange of bestpractices. It also contributes to better governance• at all levels by improving responsibility and ownership of
the Lisbon strategy at sub-national level.
Policies and actionsGrowth in economic output is essentially dependent on two mutualy
related drivers, which must be boosted simultaneously : • employment• productivity growth.
To promote a sustainable development path and strengthen competitiveness in the knowledgebased economy, it is essential to ensure availability of:
• basic infrastructures, • increase investment in human capital, • promote innovation, including access and strategic use of
information and communication technologies (ICTs).
Both tangible and intangible assets are required.
Policies and actions
Objectives of Cohesion policy:• Convergence - the key objective to promote growth,
enhancing conditions which lead to growth rates above the Community average,reducing disparities accross EU,
• Regional competitiveness and employment with the aim to anticipate and promote the economic change by improving the competitiveness and attractiveness of EU regions; supporting the adaptability of workers and enterprises; reinforcing participation in the labour market; and promoting social inclusion.
• European territorial cooperation - The aim of this objective is to promote a stronger integration of the territory of the Union in all its dimensions (economic, social and cultural).
Policies and actionsConvergence• Investments and collective services which are required to increase long-term
competitiveness, • Job creation • Sustainable development. • Up grading and expansion of Infrastructures and services in order to open up regional
and local economies and exploit the opportunities afforded by the Single Market. • Investment in human capital;• Increase access to employment; • Strengthen social inclusion; • Introduce and implement reform in education and training systems.• The strengthening of institutional capacities.• Modernise and restructure the productive capacity of regions by providing services to
enterprises, particularly SMEs; • Improving access to finance;• Promoting RTD and innovation; • Developing human resources; • Promoting the penetration, diffusion and take-up of ICTs
Policies and actionsRegional competitiveness and employment among various urban regions:• Traditional industrial regions - many with large manufacturing firms,
high population densities and high economic growth rates• Regions combinng modern industry and a relatively rapidly growing
service sector. • Areas characterised by a low population density, economic
development, often driven by small firms but The challenges are very similar for all of them being confronted by:• pockets of urban decline and poverty, • by congestion and environmental pressure,• by the effects of globalisation • by the need to adapt to economic change.
Policies and actions
Regional competitivenessWide variation in the economic situation of rural
areas. • Some with good links to urban centres, with
agriculture continuing to play a significant role, are experiencing increasing economic diversification and growing activities in the agro-industry or service sector, tourism in particular.
• Other more remote rural areas are confronted by a highly dispersed and ageing population, poor infrastructures, inadequate services, and weak links with the rest of the economy.
Policies and actions
Regional competitiveness
• The need for concentration on key priorities, and in particular on innovation and job creation
• Investment in human capital can play an important role.
Policies and actions
European territorial cooperationCohesion policy supports• the balanced and sustainable development of the
territory of the Union at the level of its macro-regions, • reduction of the “barrier effects” through cross-border• cooperation and the exchange of best practices.These actions are based on• shared developmentstrategies of the territories
concerned (national, regional, local) • the networking of the key stakeholders.
Policies and actions
GovernanceThe revised Lisbon Strategy calls for
betterlegislation, policy design and delivery to create the conditions for economic growth and job creation.
A key element in this regard is the human capital of administration and public services at all territorial levels.
Promoting effective policy design and implementation, in close cooperation with all relevant stakeholders
Policies and actions
GovernanceTo strengthen institutional capacities and
governance where they are considered to be weak.
The rule of law; its non-discriminatory,predicable and transparent enforcement;
The assignment and enforcement of tradable property rights;
Public administration which minimises the administrative burden for economic agents
Policies and actions
GovernanceTo improve the capacity of Member States in managing
and implementing the cohesion policy.To create an appropriate and effective structures in central
and regional administrations, which are able to perform the tasks related to the implementation of the Funds, such as:
• Public procurement, • Financial control, • Monitoring, • Evaluation• Prevention of, and fight against, fraud and corruption.
Policies and actionsGovernancePublic private partnership at program level - The quality of the
partnership between all stakeholders, including those at regional and local level, in the preparation and implementation of programmes.
In addition, a strong partnership between the Commission and the Member States is the basis for the determination of cohesion strategy and its implementation
Public private partnership at project level improves the quality of the implementation and subsequent management of projects.
Regions are encouraged to develop regional development strategies building consensus on the objectives to be achieved through regular and systematic dialogue with key stakeholders.
Policies and actionsConcentrationProgrammes co-financed by cohesion policy should seek to target
resources on the following three priorities:• Improving the attractiveness of Member States regions and
cities by improving accessibility, ensuring adequate quality and level of services, and preserving their environmental potential;
• Encouraging innovation, entrepreneurship and the growth of the knowledge economy by research and innovation capacities, including new information and communication technologies; and
• Creating more and better jobs by attracting more people into employment or entrepreneurial activity, improving adaptability of workers and enterprises and increasing investment in human capital
Policies and actions
ConcentrationThe most appropriate mix of investments depends
on the analysis of the strengths and weaknesses of each region.
Not all actions presented in the Guidelines will be relevant to all regions.
The guidelines rather represent a single framework which Member States and regions are invited to use at the moment of the development of national and regional programmes,
Policies and actions
Attractiveness of MSExpand and improve transport infrastructures, movement
of goods, services´and people including of:• cross border projects, giving priority to projects of
European interest, • European Rail Transport Management System
(ERTMS), • “motorways of the sea” and to short-sea, shipping as a
viable alternative to long distanceroad and rail transport.• the connectivity of landlocked territories to the Trans-
European network (TEN-T).• promoting environmentally sustainable transport in
urban and between urban areas.
Policies and actionsAttractiveness of MS Improve the environmental contribution to growth and jobs• for investment in infrastructures in the Convergence
regions,particularly in the NMS, to comply with environmental legislation, whether in the field of water, waste, and air.
• ensuring that attractive conditions exist forbusiness and their highly-qualified staff ensuring by promoting land-use planning
• investments in sustainable energy and transport covered elsewhere, investments that contribute to the EU Kyoto commitments.
• undertaking risk prevention measures through an improved management of natural resources, more targeted research and better use of ICTs, and more innovative public management policies
Policies and actions
Attractiveness of MS Address Europe’s intensive use of traditional
energy sourcesefficiency, and diffusion of low energy intensity
development models.• supporting the development of renewable and
alternative technologies (wind, solar, biomass)• These investments also contribute to the Lisbon
objective of ensuring that, by 2010, 21 % of electricity is generated from renewable sources.
Help maintain a healthy labour force
Policies and actions
Improving knowledge and innovation for growthStructural shift in the economy towards knowledge-based
activities. This requires actions:• to address low levels of Research and Technological
Development (RTD), especially in the private sector; (incease from 1,9% to 3% of GDP)
• to promote innovation through new or improved products, processes and services which can withstand international competition;
• to increase regional capacity to generate and absorb new technologies (ICTs in particular);
• to provide more support for risk-taking.
Policies and actionsImproving knowledge and innovation for growth• To enhance the RTD absorption capacity of firms, and SMEs in particular;• Direct grants remain important, need to focus on the provision of collective
business and technology services to groups of firms,• Direct grants to individual firms should be targeted at improving the RTD
and innovation capacity of the firm, rather than at a temporary reduction of its production costs.
• To encourage the creation and exploitation of a larger pool of high-quality research talent in Europe;
• To raise private and public RTD and innovation investment;• To encourage RTD partnerships across the different regions of the Union.• This is particularly important in traditional sectors (such as textile, wood,
leather, agrifood, and ceramics), and in SMEs which oftenrepresent the highest source of employment at the regional level.
• National and regional strategies must be based on a comprehensive analysis of RTD investment opportunities and policies adapted to the particular conditions of each region,
Policies and actions
Improving knowledge and innovation for growth – two areas of innovation activities
• First - helping regions to develop regional innovation strategies and action plans which have a high potential effect on competitiveness,
• Second - contributing to increased research and innovation capacity in the region up to a level where it can participate in trans-national projects for research excellence.
Policies and actions
Improving knowledge and innovation for growthIncrease and improve investment in RTD• strengthening co-operation between businesses and
between businesses and public research institutions by supporting the creation of regional and trans-regional clusters of excellence
• setting up of trans-national European technology initiatives
• supporting RTD activities in SMEs and enabling SMEs to access RTD services in publicly-funded research institutions.
Policies and actionsImproving knowledge and innovation for growthFacilitate innovation and promote entrepreneurship• making regional RTD innovation and education supply more efficient and accessible
to firms, in particular SMEs, for example by establishing poles of excellence, bringing together high technology SMEs around research and technological institutions, or by developing and
• creating regional clusters around large companies.• ensuring business support services to enable enterprises, and in particular SMEs,
to increase competitiveness and to internationalise, notably (e.g. technology transfer, science parks, ICT communication centres, incubators and related services, co-operation with clusters)
• Give more traditional support in the areas of management, marketing, technical support,recruitment, and other professional and commercial services.
• ensuring full exploitation of European strengthsthe domain of eco-innovations. through the introduction of environmental management
• Clear link to the Framework Programme for Competitiveness and Innovation.• Promoting entrepreneurship, facilitating the creation and development of new
firms, and promoting spin-out and spin-off companies from research institutions or firms through a variety of
• techniques.
Policies and actions
Improving knowledge and innovation for growth
Promote the information society for all• ensuring uptake by firms and households
of ICTs• promoting support for the supply and
demand of ICT products and services. • promote an open and competitive digital
economy
Policies and actions
Improving knowledge and innovation for growth
Improve the access to finance• Supporting non-grant instruments such as
loans, secured debt financing for subordinate convertible instruments and risk capital
• outreaching to specific groups, such as young or female entrepreneurs or those from disadvantaged groups including ethnic minorities.
Policies and actions
More and better jobsIn accordance with regulations, the priorities of the
Community Strategic Guidelines on cohesion in the sphere of employment and human resources shall be those of the European Employment Strategy highlights three priorities for action:
• to attract and retain more people in employment and modernise social protection systems;
• to improve adaptability of workers and enterprises and the flexibility of the labour markets;
• to increase investment in human capital through better education and skills, and through enhanced administrative capacity at national, regional and local level.
Policies and actionsMore and better jobsAttract and retain more people in employment and modernise
social protection systems• achieving full employment, improving quality and productivity at
work, and strengthening social and territorial cohesion• promote a lifecycle approach to work• ensure inclusive labour markets for jobseekers and
disadvantaged people• improve matching of labour market needs.• Modernisation of labour market institutions,• Supporting occupational and geographic mobility• Special attention to youth, women, social inclusion and
discrimination• Livehood learning strategies • Low skilled and older workers
Policies and actions
More and better jobs
Increase investment in human capital through better education and skills
• expand and improve investment in human capital
• adapt education and training systems in response to new competence requirements.
Policies and actions
Territorial cohesion and cooperation• The contribution of cities to growth and
jobs• Supporting the economic diversification of
rural areas (entrepreneurship, local employment and community development, an integrated approach
• Cooperation – cross border, transnational and interregional
Funds/instruments and regulations
The new instruments for the reformed Cohesion Policy 2007-2013
• European Regional Development Fund (ERDF).
• European Social Fund (ESF).
• Cohesion Fund.
• European grouping of cross-border co-operation (EGCC).
Funds/instruments and regulations
European Regional Development Fund (ERDF). The role of the ERDF is:• to promote investment • to help reduce regional imbalances across the Union. Funding priorities would include:• research, • innovation, • environmental issues and risk prevention, • infrastructure, especially in the least developed regions.
Funds/instrumnets and regulations
European Social Fund (ESF).
supports policies and priorities aimed at: • achieving more and better jobs,• improving quality and productivity at work,• promoting social inclusion and cohesion
The Fund is implemented in line with the guidelines and recommendations under the European Employment Strategy (EES).
Funds/instrumnets and regulations
Cohesion Fund.contributes to interventions in the field of the environment
and trans-European networks. It applies to Member States with a Gross National Income (GNI) of less than 90% of the Community average.
On current statistics, it covers 10 NMS as well as Greece and Portugal.
It contributes alongside the ERDF to multi-annual investment programmes managed in a decentralised way, rather than being subject to individual project approval at the level of the Commission.
Funds/instruments and regulations
European grouping of cross-border co-operation (EGCC) – new legal instrument.
Contributes to overcoming existing obstacles hindering cross-border co-operation,
An optional framework for the creation of European authorities for co-operation.
These would be invested with legal personality for the implementation of cross-border co-operation programmes and based on al convention agreed between the participating national, regional, local or other public authorities.
More information: http://europa.eu.int/comm/regional_policy/debate/forum_en.htm
Funds/instruments and regulations
The list of regulationsCouncil Regulation (EC) No 1083/2006 of 11 July 2006 laying down
general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1260/1999
Regulation (EC) No 1080/2006 of the European Parliament and of the Council of 5 July 2006 on the European Regional Development Fund and repealing Regulation (EC) No 1783/1999
Regulation (EC) No 1081/2006 of the European Parliament and of the Council of 5 July 2006 on the European Social Fund and repealing Regulation (EC) No 1784/1999
Regulation (EC) No 1082/2006 of the European Parliament and of the Council of 5 July 2006 on a European grouping of territorial cooperation (EGTC)
Council Regulation (EC) No 1084/2006 of 11 July 2006 establishing a Cohesion Fund and repealing Regulation (EC) No 1164/94
Funds/instruments and regulations2000 - 2006 2007 - 2013
Objectives Financial instruments
Objectives Financial instruments
Cohesion fund Cohesion fund Cohesion fund ERDF
Objective 1 ERDF, ESF, EAGGF – both sub-sections, FIFG
ESF
Urban EFRD
Objective 2 ERDF and ESF Regiopnal competitiveness and employment-Regional level-National level – E. employment strategy
ERDFESF
Objective 3 ESF
EQUAL ESF
Interreg ERDF European territorial cooperation EGTC
The EU BudgetWhat does the EU Budget look like?• The EU budget is published in two volumes in all official languages of the
Union. • Volume I provides a detailed statement of EU budget revenue as well as the
revenue and expenditure of each of the institutions, apart from the European Commission, in sections ordered according to their order in the Treaties. It covers the European Parliament (Section I), the Council (Section II), the Court of Justice (Section IV), the European Court of Auditors (Section V), the European Economic and Social Committee (Section VI), the Committee of the Regions (Section VII), the European Ombudsman and European Data-protection Supervisor (Section VIII).
• Volume II covers all Commission revenue and expenditure (Section III) linked to EU policies. Appropriations entered in sections other than Section III are of administrative nature.
• Relevant documents are published on a regular basis from the time that the Commission brings forward the preliminary draft budget in late April or early May until the adopted budget is published in February of the year in question.
The EU BudgetStructured according to policy areas• The appropriations for EU policies, the operational budget, are
contained in Volume II (Section III – European Commission). • Since 2004, this section is activity based (ABB short for “activity-
based budgeting”); the budget is divided into some 30 policy areas, each of which described within a title.
• Each title is broken down into chapters (each corresponding to an activity), which in turn may be broken down into articles, and those in turn, where necessary, into items.
• The equivalence of activity and chapter provides the link between policies and the necessary resources for these policies.
• The cost of each policy can be estimated from the budget in this form.
• The Commission establishes objectives for each activity in its annual management plans.
The EU Budget
The present financial framework (2007-2013) comprises six headings:
1. Sustainable growth – 1a. Competitiveness for growth and employment – 1b. Cohesion for growth and employment
2. Preservation and management of natural resources3. Citizenship, freedom, security and justice
– 3a. Freedom, security and justice – 3b. Citizenship
4. The European Union as a global player5. Administration6. Compensations (related to the latest enlargement of the
Union)
The EU Budget
ACTS• Commission communication of 10 February
2004 "Building our common future - Policy challenges and budgetary means of the enlarged Union 2007-2013" [COM(2004) 101 final - Not published in the Official Journal]
• Commission communication of 14 July 2004 to the Council and the European Parliament "Financial Perspectives 2007 - 2013" [COM(2004) 487 - Not published in the Official Journal]
The EU Budget
Priorities for the financial framework 2007-2013• Promoting sustainable development. This means
completing the internal market and mobilising the various policies (economic, social and environmental) to that end. The objectives of competitiveness , cohesion and the protection and management of natural resources also fall under this heading;
• Giving meaning to the concept of European citizenship by completing the area of freedom, justice and security and ensuring access to basic public goods and services;
• Promoting a coherent role for Europe as a global partner.
The EU Budget
Promoting sustainable development:
• The competitiveness for growth and employment component, with a budget of EUR 133 billion,
• Greater cohesion for growth and employment, the second component of Heading 1, with a budget of approximately EUR 339 billion
The EU Budget
The heading sustainable management and protection of natural resources is to receive a total of EUR 405 billion for the period 2007-2013, of which 72% for agriculture (EUR 301 billion).
Key actions are the common agricultural policy (CAP), rural development policy and fisheries policy
The EU Budget
The share of the heading citizenship, freedom, security and justice in the financial perspective will increase over the years and amount to EUR 25 billion over the period as a whole.
The heading the European Union as a global partner A total of EUR 95 billion is allocated.
The EU Budget
Three instruments directly support European external policies (94 EUR bilion):
• the Pre-Accession Policy (IPA), • the European Neighbourhood and Partnership
Instrument • the Development Cooperation and Economic
Cooperation Instrument, which will be the main means of cooperation with other non-EU countries not covered by the first two instruments.
The EU BudgetCommitment appropriations
2007 2008 2009 2010 2011 2012 2013
Sustainable development
58735 61875 64895 67350 69795 72865 75950
1a. Competitiveness for growth and employment
12105 14390 16680 18965 21250 23540 25825
1b. Cohesion for growth and employment (a)
46630 47485 48215 48385 48545 49325 50125
The EU Budget
Commitment appropriations
2007 2008 2009 2010 2011 2012 2013
Conservation and management of natural resources
57180 57900 58115 57980 57850 57825 57805
of which: Agriculture - market support measures and direct aid payments
43500 43673 43354 43034 42714 42506 42293
The EU Budget
Commitment appropriations
2007 2008 2009 2010 2011 2012 2013
Citizenship, freedom, security and justice
2570 2935 3235 3530 3835 4145 4455
EU as global partner (b)
11280 12115 12885 13720 14495 15115 15740
Administration (c) 3675 3815 3950 4090 4225 4365 4500
Compensation (d) 120 60 60 0 0 0 0
Total commitment appropriations
133560 138700 143140 146670 150200 154315 158450
Thank you for your
attention!Jela TvrdonovaJela Tvrdonovajelatvrdonovajelatvrdonova@yahoo.co.uk00421 91570953100421 915709531
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