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COHESION POLICY investments in 2021-2027 European Semester Romania Country report Annex D

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Page 1: COHESION POLICY€¦ · Achievements of Cohesion policy in Romania • As from 2007 to present, cohesion policy has contributed to: • 2 700 SMEs received direct support and it is

COHESION POLICY

investments in 2021-2027

European Semester Romania Country report Annex D

Page 2: COHESION POLICY€¦ · Achievements of Cohesion policy in Romania • As from 2007 to present, cohesion policy has contributed to: • 2 700 SMEs received direct support and it is

AGENDA

1. Introduction

2. Achievements of Cohesion policy to date in Romania

3. Future of Cohesion policy (including the envelope and thematic concentration

requirements for Romania)

4. Commission priorities for 2021-2027 Cohesion policy funding in Romania

***Coffee/lunch break***

5. Conclusions and next steps

European Semester country report, Cohesion policy investments in 2021-2027

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Stronger articulation between challenges identified in the European Semester and Cohesion Policy funding

o Strong link in two directions

• Policy analysis guides Funds’ investments

• Funds’ investments deliver policy results

o Expected benefits

• More consistency between different policies

• Higher impact and better outreach to stakeholders

• Transparency and accountability

o Implications for European Semester deliverables

• Stronger focus of the 2019 EC country analysis (CRs) on regional and territorial disparities

• Investment needs and guidance to be derived from this analysis

European Semester country report, Cohesion policy investments in 2021-2027

Page 4: COHESION POLICY€¦ · Achievements of Cohesion policy in Romania • As from 2007 to present, cohesion policy has contributed to: • 2 700 SMEs received direct support and it is

Achievements of Cohesion policy in Romania

• As from 2007 to present, cohesion policy has contributed to:

• 2 700 SMEs received direct support and it is planed that 4 500 more firms will receive

support by 2023.

• 370 km of new TEN-T roads have been constructed and 300 more will be built by 2023

• more than 2 400 km of county roads rehabilitated and 2400 km are planned to be

reconstructed by 2023

• more than 60 000 apartments benefitted from investments in energy efficiency; and

80 000 more apartments will improve energy consumption classification by the end of

2023

• 90 investments in cultural heritage assets and it is foreseen that 45 more will be

renovated by the end of 2023

European Semester country report, Cohesion policy investments in 2021-2027

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Achievements of Cohesion policy in Romania

EU Funds contributed to the rehabilitation of Alba Iulia’s urban heritage

transforming the city and its economy

Objective: The main aim of this project was to revive the Alba Carolina Citadel through the conservation and rehabilitation of the urban heritage

and improve the infrastructure to boost the city’s tourism sector.

Programme: Regional OP - Ministry of Regional Development and Public Administration

Total cost: EUR 44 670 000

EU contribution: EUR 35 878 000 (ERDF)

Location: Centru Region, Alba Iulia Municipality

Time: 2009 - 2013

European Semester country report, Cohesion policy investments in 2021-2027

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Achievements of Cohesion policy in Romania

EU Funds contributes to the development of the

community integrated services in the most

marginalised areas

Objective: - Support the local public authorities in 139 marginalized communities to set up

integrated community teams (social assistant, community nurse and educational counselor

and/or mediator) and develop community-based integrated services (providing personalized

guidance and support).

Expected results: Between 23,000 and 34,000 vulnerable people will benefit from this

project. Integrated model and delivery tools will be developed, with the aim to be scaled up

at national level.

Programme: Human Capital Operational programme

Total cost: 23,771,601 EUR

EU contribution: 20,205,861 EUR

Location: 139 communities – see map (in yellow and purple)

Time: 2018 –2022

European Semester country report, Cohesion policy investments in 2021-2027

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Achievements of Cohesion policy in Romania

EU Funds contributed to the development and creation of Research and

Development infrastructure, boosting the region’s competitiveness

Objective: - Center for Advanced Research on New Materials, Products and Innovative Processes - The objectives of this project were to

increase competitiveness through Research, Technological Development and Innovation, and development and creation of R&D Infrastructures

(labs, research centers). The investment attracted more than 100 researchers developing innovative, applied research in fields such as:

bioenergy, alternative fuels, aerospace technology, automotive technologies, robotics etc.

Programme: Sectoral OP for the Increase of the Economic Competitiveness

Total cost: 26 000 000

EU contribution: EUR 23 800 000

Location: Bucharest-Ilfov Region, Bucharest Municipality

Time: 2012 –2015

European Semester country report, Cohesion policy investments in 2021-2027

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Achievements of Cohesion policy in Romania

• Finacial implementation progress 2014-2020

• Planned: 26,8 EUR billion

• Decided: 20,5 EUR billion

• Spent by beneficiaries: 4,6 EUR billion

• Paid by the EU: 4,6 EUR billion

European Semester country report, Cohesion policy investments in 2021-2027

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Romania on ESIF Open data 1/2

European Semester country report, Cohesion policy investments in 2021-2027

• #ESIFOpenData provides access to data on financial and physical progress;

• Financial progress at EU and

National level by fund

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Romania on ESIF Open data 2/2

• Achievements at country level are

reported annually and

available here:

https://cohesiondata.ec.europa.eu/countries

/RO#achievements

European Semester country report, Cohesion policy investments in 2021-2027

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Future of Cohesion policy

European Semester country report, Cohesion policy investments in 2021-2027

Policy objectives

Former objectives are simplified and consolidated into 5 Policy Objectives

1. A smarter Europe (innovative & smart economic transformation)

2. A greener, low-carbon Europe (including energy transition, the circular economy, climate adaptation and risk management)

3. A more connected Europe (mobility and ICT connectivity)

4. A more social Europe (the European Pillar of Social Rights)

5. A Europe closer to citizens (sustainable development of urban, rural and coastal areas and local initiatives)

Horizontal issues: partnership administrative capacity building, cooperation outside the programme area

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Future of Cohesion policy European Semester country report, Cohesion policy investments in 2021-2027

Architecture

Common Provisions Regulation (CPR)

Covers 7 funds, i.e. ERDF,

CF, ESF+, EMFF, AMIF, ISF

and BMVI

Joint rules for the delivery

of the funds

Code of Conduct on

partnership remains in

force

ERDF/CF regulation

Specific objectives and

thematic concentration

requirements

ETC regulation

Territorial co-operation

including external

assistance

ESF+ regulation

Enhanced scope (ESF, FEAD, YEI, EaSI,

Health)

Implementing the European Pillar of

Social Rights

Specific objectives and thematic

concentration requirements

Policy reforms, social innovation &

transnational cooperation

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Future of Cohesion policy

European Semester country report, Cohesion policy investments in 2021-2027

Modernising investment

Focus on smart, low carbon and inclusive growth

Link to Semester

Enabling conditions

Flexible

Mid-term review

Adapt to emerging circumstances, e.g.

o Migration

o Changes in economy linked to globalisation, technology and demography

Simpler

Easier and faster to programme

Substantial reduction of administrative cost

Single audit principle and proportionality for low risk programmes

Modernising ERDF, CF and ESF+

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Embedding cooperation and contributing to macro-regional strategies

in mainstream programmes

Intensify cooperation with other regions and Member States, incl. under macro-regional and sea-basin strategies, to be “embedded” in “mainstream” programmes.

A macro-regional strategy is an integrated framework endorsed by the European Council to address common challenges faced by a defined geographical area

Romania is a part of the EU Strategy for the Danube Region (EUSDR)

European Semester country report, Cohesion policy investments in 2021-2027

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Future of Cohesion policy

European Semester country report, Cohesion policy investments in 2021-2027

ERDF / ESF+ Thematic Concentration in Romania

Total allocations for cohesion policy in million EUR in current prices: EUR 30 599 (ERDF including Interreg: EUR

17 715, CF: EUR 4 499, ESF+: EUR 8 385)

Thematic concentration amounts:

For ERDF PO1 EUR 6 063 million (35 % of ERDF)

P0 2 EUR 5 197 million (30 % of ERDF)

At least 6% sustainable urban development EUR 1 039 million

For ESF+ EUR 3 103 million

CSRs - an adequate amount, which may include:

At least 25% social inclusion + EUR 2 096 million

At least 2% material deprivation EUR 168 million

At least 10% youth employment EUR 839 million

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European Semester country report, Cohesion policy investments in 2021-2027

Investment-relevant challenges in Romania

Policy Objective 1 challenges

Romania's innovation performance remains far below the EU average, much of which is due

to insufficient public research and development investments , modest cooperation of public

and private innovation and growing skills mismatches, which hamper the growth of

innovative and fast-developing sectors .

Romania performs significantly below the EU average in terms of digital public services and

the integration of digital technologies by businesses.

Romania’s share of innovative companies is behind the EU average and the country is

confronted with a persistent low level of business investment in research and innovation.

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European Semester country report, Cohesion policy investments in 2021-2027

Investment-relevant challenges in Romania

Policy Objective 2 challenges

Energy intensity remains above the EU average and energy poverty affects one household out of

four.

Romania is lagging behind regarding measures for tackling climate change adaptation, the

rehabilitation of old contaminated sites and the prevention of floods and other natural hazards.

Water and wastewater infrastructure is largely insufficient.

The waste management system is underdeveloped, with high landfilling rates and the poor

quality of waste infrastructure.

Important gaps remain in reaching the EU’s objectives in the areas of maintaining biodiversity,

restoring ecologically damaged areas and reducing pollution, in particular in highly sensitive

areas.

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European Semester country report, Cohesion policy investments in 2021-2027

Investment-relevant challenges in Romania

Policy objective 3 challenges

The general condition and reliability of road and rail infrastructure in Romania are

poor and its transport networks remain among the least developed in the EU, without

tackling geographical obstacles to traffic, such as the Carpathian Mountains and

crossing the Danube to Bulgaria.

Sustainable multimodal mobility in urban areas is poorly developed.

Romania is lagging behind in rural broadband coverage. Despite outstanding fast

broadband take-up, overall broadband coverage is still below the EU average.

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European Semester country report, Cohesion policy investments in 2021-2027

Investment-relevant challenges in Romania

Policy objective 4 challenges

Unfavorable demographics, high labour force emigration, lack of relevant skills, lead

to tight labour market conditions.

The education system is characterized by low attainment levels in basic, digital and

soft skills, high early school leaving, and low labour market relevance of vocational

education and training and higher education.

Poverty, social exclusion and inequalities remain among the highest in the EU, with

significant regional and local disparities in quality and access to social, employment,

and healthcare services.. Children, marginalized groups, persons with disabilities and

elderly are particularly affected.

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European Semester country report, Cohesion policy investments in 2021-2027

Investment-relevant challenges in Romania

Policy objective 5 challenges

Growth is mainly confined to strong agglomerations and is marked by increasing sub-

urbanisation challenges. Smaller cities and surrounding territories face different

challenges related to access to labour market, education, healthcare and other social

services.

Disparities between regions, between rural and urban areas and between citizens

remain very strong and call for tailor-made investment priorities based on specific

territorial and socio-economic needs and development potential.

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European Semester country report, Cohesion policy investments in 2021-2027

Commission priorities for 2021-2027 Cohesion policy funding in Romania

Investment needs under PO1:

• enhance R&I capacities and the uptake of advanced technologies

• increase SMEs’ competitiveness and internationalisation

• reap the benefits of digitisation for citizens, companies and governments

• enhance skills within SMEs and research institutions as regards smart specialisation areas,

industrial transition and entrepreneurship

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European Semester country report, Cohesion policy investments in 2021-2027

Commission priorities for 2021-2027 Cohesion policy funding in Romania

Investment needs under PO2:

• promote energy efficiency measures and renewable energy

• promote climate change adaptation, risk prevention and disaster resilience

• promote sustainable water management

• enhance biodiversity, green infrastructure in the urban environment, and reducing pollution

• promote the transition to a circular economy

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European Semester country report, Cohesion policy investments in 2021-2027

Commission priorities for 2021-2027 Cohesion policy funding in Romania

Investment needs under PO3:

• enhance digital connectivity

• develop a sustainable, climate resilient, intelligent, secure and intermodal TEN-T

• develop sustainable, climate resilient, intelligent and intermodal national, regional and

local mobility, including improved access to TEN-T and cross-border mobility

• promote sustainable multimodal urban mobility

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European Semester country report, Cohesion policy investments in 2021-2027

Commission priorities for 2021-2027 Cohesion policy funding in Romania

Investment needs under PO4:

• Tailored-made assistance to job seekers better integrating education and social services. Skills anticipation

system, and targeted upskilling and reskilling that meet labour market needs. Social entrepreneurship and

social economy. Employability of persons with disabilities and older workers.

• Early childhood education, early school leaving, by a learner-centred approach for children at risk, and flexible

second chance. Labour market relevance of vocational education and training, and tertiary education.

Inclusiveness of education in particular for Roma, learners with disabilities.

• Quality and availability of social services and individualized integrated services. Targeted measures to

support children and marginalized groups at risk of poverty and social exclusion. Deinstitutionalization

reforms. Home care, long-term care and community based services and infrastructure, in particular for elderly

and disabled. Outpatient care and e-health solutions.

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European Semester country report, Cohesion policy investments in 2021-2027

Commission priorities for 2021-2027 Cohesion policy funding in Romania

Investment needs under PO5:

• foster the integrated social, economic and environmental development, cultural heritage

and security in urban areas, mainly in county capitals (growth poles)

• foster the integrated social, economic and environmental local development, cultural

heritage and security, including for rural and coastal areas also through community-led

local development in particular in structurally challenged areas

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Conclusion and next steps

o Commission ready to start informal dialogue, important to make as much progress as possible in 2019 and 2020

o Engage from the start in dialogue with all relevant stakeholders (Code of Conduct!)

o Member State programming plans by end of June 2019 (roadmap)

o Technical seminar with Managing Authorities on 14 June

o Joint objective to adopt all Partnership Agreements and programmes by end of 2020

European Semester country report, Cohesion policy investments in 2021-2027