Operational ProgrammeInvestment prioritiesEx-ante conditionalities

Magnus Urb23.10.2014

Jurmala

Overview of ESI funds

ERDF1 874 mln €

ESF 587 mln €

CF1 073 mln €

EAFRD; 726 mln

€*

EMFF 101 mln €

Main focuses in 2014-2020

Education, employment,

social inclusion31%

RD&I, entre-preneurship

31%

Resource efficiency,

environment17%

Transport15%

ICT, admin. capacity

6%

Distribution between thematic objectives

TO1 TO2 TO3 TO4 TO5 TO6 TO7 TO8 TO9 TO10 TO11 TA0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

642,313,830

84,574,468

301,329,787

48,936,170

166,305,585

254,458,777217,897,992

89,132,97969,311,805

247117021

56259043

254292553

475904255

39749010

228122335133753104194889771

30211800

CFESFERDF

Structure of the OP (1)Nr Priority axis TO / IP1 Qualifications and skills meeting the needs of society

and labour marketTO 10 ESF iiiand TO 10 ERDF

2 Increasing social inclusion TO 9 ESF i and TO 9 ERDF a3 Improvement of access to, and prevention of dropping

out of, the labour market TO 8 ESF ii

4 Growth, smart specialisation and R&D&I TO 1 ERDF a and b

5 Development of SMEs and local entrepreneurship TO 3 ERDF d

6 Energy efficency TO 4 CF ii7 Water protection TO 6 CF ii8 Green infrastructure and climate change and

prepairdness for emergenciesTO 5 CF ii and TO 6 CF iii

9 Sustainable urban development TO 4 ERDF e TO 6 ERDF e TO 9 ERDF a

Structure of the OP (2)

Nr Priority axis TO / IP10 Sustainable transport TE 7 CF i and TE 7 CF ii

11 Infrastructure for ICT services TE 2 ERDF a and c

12 Administrative capacity TE 11 ERDF and ESF

13-14 Technical assistance CF and ERDF

Main changes made as a result of negotiations• Clarification of intervention logic

(education, social inclusion, RDI, SME competitiveness, energy, transport, ICT, public administration)

• Setting baselines and target levels for ESF indicators

• Clearer commitment to DI under TO 9

Key outstanding issues in official negotiations of the OP• Smart specialisation – TO1 100% in

line with RIS3 areas vs RIS3 framework

• Targeting jobs as an output indicator under TO3 (SMEs) and TO8 (regional competitiveness)

• Setting a limit of 5 mln € for small scale investments into culture and tourism

• Setting baselines and target levels for ESF indicators

Overview of RIS3 strategy (1)

• RIS3 strategy consists of the RD&I strategy and the business growth strategy;

• Both have a dedicated section for RIS3 areas, but…

• Both strategies combined and in their entirety are considered in the OP as RIS3 framework;

• EC considered the relevant ex ante conditionality fulfilled;

Overview of RIS3 strategy (2)• 3 main areas

– ICT horizontally through other sectors– Health technologies and services– More efficient use of resources

• narrower niches (sub-areas) with greatest potential are being defined

• Coordination committee led by MoE an MoR with a yearly rotation; includes other ministries and entrepreneurs

• Secretariat and the analytic body is the Estonian Development Fund

Overview of RIS3 strategy (3)

• Programme for applied research in RIS3 areas for research institutions

• higher education scholarships in RIS3 areas• Clusters and technology development centres• Encouraging start-up entrepreneurship• Promoting the role of the state as the contracting

authority for innovative solutions• In other measures under TO1 preference will be

given activities that contribute to the needs of RIS3 areas.

Planned use of Financial instruments (1)• We received the ex ante assessment

draft just last Friday from PWC• The ex ante assessment coverd half of

the required analysis to the cut down the nr of possible instruments

• 15 measures in a variety of policy areas were covered and 2 measures are left for finalizing the assessment

Planned use of Financial instruments (2)• TO3: 145,5 mln €

– security products– insurance of export transactions;– starting loan for starting companies– risk capital by creating an early phase

fund type instrument

• TO1: up to 109 mln €– resource efficiency in enterprises

• The ex ante assessment proposes a conditional loan, but not sure yet weather this can be facilitated to be in line with legislative framework of ESI funds

5 CSRs1. Strengthen medium-term budget framework and continue to enhance the

efficiency of public spending.2. Improve incentives to work through measures targeted at low income earners.

Increase the efficiency and cost‐effectiveness of family policy, improve the availability and accessibility of childcare. Deploy coordinated measures for fostering economic development and entrepreneurship in regions faced with high unemployment.

3. Ensure the labour‐market relevance of education and training systems. Further intensify prioritisation and specialisation in the research and innovation systems and enhance cooperation between businesses, higher education and research institutions to contribute to international competitiveness.

4. Step up efforts to improve energy efficiency, in particular in residential and industrial buildings. Substantially strengthen environmental incentives for the transport sector to contribute to less resource‐intensive mobility. Continue the development of cross‐border connections to neighbouring Member States to diversify energy sources and promote competition through improved integration of the Baltic energy markets.

5. Better balance local government revenue against devolved responsibilities. Improve the efficiency of local governments and ensure the provision of quality public services at local level, especially social services complementing activation measures.

CSR 2Improve incentives to work through measures targeted at low income earners. Increase the efficiency and cost‐effectiveness of family policy, improve the availability and accessibility of childcare. Deploy coordinated measures for fostering economic development and entrepreneurship in regions faced with high unemployment.

Planned actions:• Work-ablity reform• Better access to welfare services• Better access and quality of childcare service• Involvement of NEET youth • Prevention of young people dropping out of school

or labour market

CSR 3:Ensure the labour‐market relevance of education and training systems. Further intensify prioritisation and specialisation in the research and innovation systems and enhance cooperation between businesses, higher education and research institutions to contribute to international competitiveness.

Planned actions:• Linking better education and the needs of labour

market • Training of low skilled adults and development of

their key competences• Reorganisation of school network• Smart specialisation measures• Cooperation between research and

enterpreneurship, internationalisation of research• Reform of higher education and research

institutions

CSR 4:Step up efforts to improve energy efficiency, in particular in residential and industrial buildings. Substantially strengthen environmental incentives for the transport sector to contribute to less resource‐intensive mobility. Continue the development of cross‐border connections to neighbouring Member States to diversify energy sources and promote competition through improved integration of the Baltic energy markets.

Planned activities:- Development of resource efficient technologies in

enterpreneurship- Increasing efficency of district heating - Increasing energy efficency of housing sector- Development of public transport

CSR 5:Better balance local government revenue against devolved responsibilities. Improve the efficiency of local governments and ensure the provision of quality public services at local level, especially social services complementing activation measures

Planned activities:Better provision of services

- welfare services- education - youthwork- childcare- public transport - health care