STRUCTURAL FUNDS2007 – 2013

new opportunities for local development

by Laura Modestino for the Italian Ministry for EU Policies

Plovdiv, March 5 2007

The present slides are exscusively meant to support the Author’s speech

2

introduction

This presentation consists of four sections:

1. The enlargement process of the EU2. Cohesion in the revised Lisbon

Agenda 3. The 2006 Reform of Structural Funds4. Innovative elements for the

Regional/Local Authorities in 2006-2013 package

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

3

section 1

The enlargement process of the European Union

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

4

1/introduction 1

1957 Belgiun, France, Germany, Italy, Luxembourg and Netherlands

established the European Economic Community and

the European Community for Atomic Energy (Euratom)

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

5

1/introduction 2

From the 6 founding States, to… …9 in 1973 - Denmark, Ireland and the United Kngdom

…10 in 1981- Greece…12 in 1986 – Portugal and Spain

…15 in 1995 - Austria, Finland and Sweden…25 in 2004 – starts the 5th enlargement with the

membership of 10 States:

Cyprus, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Czech Republic, Slovakia, Slovenia… 27 in 2007 –accomplishment of the 5th

enlargement with the membership of Bulgaria and RomaniaThe event allows the reunification of

Europe

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

6

1/the scenery of enlargement

• Increased development disparities, • Heavier disparities in Eastern Regions• More difficult employment situation

Beyond that, the EU shall cope with • economic reconstruction deriving from globalisation, • opening of new international markets, • technological revolution, • economic growth and the development of the

knowledge society, • ageing increase • migration flows increase.

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

7

section 2

Cohesion in the Lisbon Agenda(according to the mid-term review held in

2005)

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

8

2/introduction

Intervention key sectors in the Lisbon strategy

• Internal Market (effective)• Trade (free and fair)• Legislative procedures (trasparent, participated and more

effective)• Infrastructures (better)• Research&Development (more investments)• Innovation (support to)• Industrialisation (reinforcing the industrial platform)• Employment (job creation, improve access of women in the

labour market towards equal treatment for men and women, better working conditions)

• Working force (higher qualification pro adaptability)• Education and Training (systems improvement and long life

learning)

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

9

2/Lisbon Agenda and cohesion policy 2007-2013

Lisbon National Reform Programmes - Ensuring that Lisbon priorities are fully integrated into cohesion policy programmes

Earmarking - Increase the share of cohesion policy spending on "Lisbon" activities through earmarking– 60% Convergence – 75% Regional Competitiveness and Employment

New instruments – JASPERS, JEREMIE, and JESSICA

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

10

2/The Community Strategic Guidelines 2007

- 2013 Accoring to the Lisbon strategy, the co-financed programmes within the cohesion policy will have to converge the assigned resources for implementing three main priorities:

1.improving the attractiveness of Regions and Cities in member States by improving their accessability, as well as by assuring fair services quality also through the safeguard of their environment potential

2.encouraging innovation, entrepreneurship and growth in the knowledge economy by supporting research and innovation, including new information/communication technologies

3.creating more better jobs, by encouraging business creation, and supporting companies, improving workers as well as enterprises adaptability with increased investment in human resources.

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

11

Section 3

The 2006 Structural Funds Reform

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

12

3/introduction

Key principles of the Reform

Concentration: a more strategic approach according to the Community geographic or thematic priorities

Simplification: reduction of regulations and objectives; one fund per each programme; proportionality within evaluation and control

Decentralization: stronger participation of Regions and local Authorities

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

13

3/key principles 2007- 2013 – 1concentration

Objectives of strategic intervention:-Convergence and competitiveness (reducing the disparities)

- Regional competitiveness and employment (to encourage economic growth in industrial areas as well as in urban and rural ones)

- European Territorial cooperation (to promote cooperation between member States, to support integration)

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

14

3/key principles – 2 simplification - lawmaking

EFRD RegulationESF RegulationCohesion fund Regulation

EFRD RegulationESF RegulationCohesion fund Regulation

Commission Regulation information and publicity, financial control, financial corrections

Commission Regulation information and publicity, financial control, financial corrections

Council unanimous decision, EP opinion

EFRD, ESF: co-decision procedure;Cohesion fund: consultation

Regulation for the European grouping of territorialcooperation (EGTC)

Regulation for the European grouping of territorialcooperation (EGTC)

General Regulation on EFRD, ESF and Cohesion Fund

General Regulation on EFRD, ESF and Cohesion Fund

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

15

3/key principles – 2.1 simplification - financial instruments

Only 3 Structural funds

Cohesion Regional Social

Development

in coordination withEIB EAFRD FIFG

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

Financial allocation 308.041.000.000 €

16

3/key principles – 3decentralisation

•Institutional partnership

•Concentration

Territorialization

17

3/2000-2006 vs. 2007 - 2013

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

2000-2006 - 2007-2013 -

ObjectivesFinancial instruments Objectives

Financial instruments

Cohesion Fund Cohesion Fund Convergence ERDF

Objective 1 ERDF - ESF

- ESF - Cohesion Fund

-

EAGGF-Guarantee and

- -EAGGF- Guidance

- FIFG - -

Objective 2 ERDF

Regional Competitiveness and Employment ERDF

- ESF regional level ESF

Objective 3 ESF

national level: European Employment Strategy -

Interreg ERDFEuropean Territorial Cooperation ERDF

URBAN ERDF - -

EQUAL ESF - -

Leader+ EAGGF - Guidance - -

Rural development and restructuring of the fisheries sector apart from Objective 1

EAGGF - Guarantee - -

FIFG - -

9 Objectives 6 instruments 3 Objectives 3 instruments

18

ESFESF Cohesion FundConvergence

Regional Competitivenessand Employment

European Territorial Co-operation

EFRD

EFRD

infrastructures, innovation,

Investmentis,etc.

training,employment, etc.

Member StatesGDP/pc < 90%

Infrastructures environment

and transportation Renewable energy

All member States and Regions

Objectives Structural Funds and Actions

3/ Objectives, Structural Funds, Actions

(fonte Commissione europea)

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

ESFESF

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

19

3/territorialization of objectives

(source European Commission)

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

20

6,6

32,1

47,4

0,9

6,5 5,6

35,7

9,9

40,4

6,4

1,5

6,1

0

5

10

15

20

25

30

35

40

45

50

1A Competitiveness 1B Cohesion 2 Natural resources 3 Justice 4 Global role 5 Administration

2006

2013

2006 vs. 2013 in % (fonte Commissione

europea)

3/ financial allocation per objectives

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

21

3/ new financial instruments

Jaspers – Joint Assistance in Supporting Projects in European Regions (Commission – EIB – EBRD)

Jeremie – Joint European Resources for Micro to medium Enterprises (Commission – EIB – EIF)

Jessica - Joint European Support for Sustainable Investment in City Areas (Commission – EIB – Council of Europe Development Bank)

TA major projects

Convergence

Financial support

Growth and cohesion policy in the enlarged Union

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

22

3/new managing instrumentsThe European Grouping for Territorial Co-operation

EGTC the first EU instrument offering a legal framework to

territorial cooperation joint bodies Aimto facilitate cross-border, transnational and/or inter-regional co-operation between regional and local authorities.

CompostionMember States Regional AuthoritiesLocal Athorities Bodies governed by public law

Associations consisting of such bodies

EGTC members coming from at least two member States

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

23

section 4

2007-2013 packageDecentralization

Innovative elements for Regional/Local Authorities

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

24

4/Decentralization – 1 institutional partnership

Council’s Regulation 1083/2006

AIMS•Integration of interventions and actions•Integration with local development instruments•Coordination and integration of the instruments for local government

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

FRAMEWORKSProgramming Management Control

IMPLEMENTATIONSub-delegation AuthoritiesGlobal grant ManagingAudit Intermediate Body Certifying

25

4/Decentralization – 2 the Italian approach

Laura Modestino 2007 for the Italian Ministry for EU Policies

Twinning Bulgaria

GIURIDICAL FRAMEWORK• Italian Constitution – Title V• Act 265/199 (Legge 3 agosto 1999, n. 265)• TUEL – Unified Text for Local Authorities• CIPE Deliberation of March 31 1997

MANAGEMENT INSTRUMENTS• Programme Institutional Agreement

Government – Regions• Framework Programme Agreements

(Govt/Regions, interregional)