European Territorial Review

Territorial Cooperation for the future of Europe

ESPON contribution to the debate on Cohesion Policy post-2020

Inspire Policy Making with Territorial Evidence

This Territorial Review is conducted within the framework of the ESPON 2020 Cooperation ­Programme,­partly­financed­by­the­European­Regional­Development­Fund.

The­ESPON­EGTC­is­the­Single­Beneficiary­of­the­ESPON­2020­Cooperation­Programme.­The­Single­Operation­within­the­programme­is­implemented­by­the­ESPON­EGTC­and­­co-financed­by­the­European­Regional­Development­Fund,­the­EU­Member­States­and­the­­Partner­States,­Iceland,­Liechtenstein,­Norway­and­Switzerland.

This­delivery­does­not­necessarily­reflect­the­opinions­of­members­of­the­ESPON­2020­­Monitoring­Committee.

Coordination: Ilona­Raugze,­Sandra­Di­Biaggio,­ESPON­EGTC

Outreach:Piera Petruzzi, Vassilen Iotzov, ESPON EGTC

AuthorsKai­Böhme,­Maria­Toptsidou,­Frank­Holstein,­Derek­Martin,­Spatial­Foresight­(Luxembourg)

Technical Support Tim­Wills­(language­editing),­Sebastian­Hans­(mapping)Martin­Gauk,­Zintis­Hermansons,­Silvia­Pierik,­ESPON­EGTC­

Acknowledgements This­publication­is­based­on­reports­from­ESPON­projects­available­by­July­2017.­These­reports­were­prepared­by­transnational­project­groups­of­researchers­and­experts­carrying­out­applied­research­projects­and­targeted­analyses­for­ESPON.­

To develop this report a wide range of interviews with stakeholders throughout Europe have been­conducted­as­well­as­two­focus­groups­with­policy­makers­to­discuss­draft­results­and­­findings­to­be­presented­in­the­report.­

The ESPON EGTC has supported the development of this report in various discussions and rounds­of­commenting­as­well­as­with­regard­of­making­information­available­and­processing­information­and­mapping­requirements.­

There is also an online version of this report, which allows to generate tailor-made short reports on­specific­thematic­aspects­or­types­of­territories.­The­online­version­is­available­at:

https://territorial-review.espon.eu/

Information on ESPON and its projects can be found at www.espon.eu. The­website­provides­the­possibility­to­download­and­examine­the­most­recent­documents­­produced­by­finalised­and­ongoing­ESPON­projects.

ISBN:­978-99959-55-13-7

© ESPON, 2017Printed­in­Luxembourg,­September­2017Printed on paper produced environmentally friendly

Layout­and­graphic­design­by­BGRAPHIC,­Denmark

Printing, reproduction or quotation is authorised provided the source is acknowledged and a­copy­is­forwarded­to­the­ESPON­EGTC­in­Luxembourg.

Contact:­info@espon.eu

Highlights for policy makers

1. Highlights for policy makers

This­Territorial­Review­is­essentially­an­evidence-based­analysis­of­the­European­territory.­Most­issues­concerning territorial development, and certainly those dealt with in this Review, need cooperation between­territorial­entities­to­ensure­an­effective­policy­response.­

Pointers for policy at different governmental levels and for redesigning Cohesion Policy post-2020 have been­ identified­based­on­ territorial­evidence­produced­by­ESPON.­This­Review­uses­ the­analyses­of­territorial­diversity­as­well­as­flows,­links­and­interconnections­between­places­to­illustrate­lines­of­policy­at­different­administrative­levels­and­for­different­functional­areas.­The­sections­of­the­Review­highlight­the­level­of­administration­or­non-administrative­territorial­entity­(such­as­functional­areas)­which­could­develop­these­policies,­and­for­which­type­of­territory­the­policies­could­be­particularly­relevant.­These­specific­authorities­are­merely­indicating­that­the­analyses­point­to­certain­lines­of­policy­involving­territo-rial­cooperation.­Policy­pointers­towards­the­EU­level­are­a­different­matter.­As­a­programme­financed­by­the­European­Structural­and­Investment­Funds­(ESIF),­ESPON­does­actually­have­the­obligation­to­rec-ommend­elements­of­policy­renewal­from­its­findings­and­indeed­does­so­by­concluding­that­territorial­cooperation­–­in­principle­for­all­topics­addressed­–­should­be­integrated­into­the­mainstream­of­Cohesion­Policy­post-2020.­The­policy­pointers­are­for­every­territorial­entity­to­consider­as­they­wish.­It­is,­however,­being­published­at­a­time­when­the­process­of­preparing­the­new­phase­of­ESIF­after­2020­is­getting­underway.­Ideally,­new­ideas­on­policy­measures­for­the­next­ESIF­period­should­be­evidence-based;­that­increases­their­effectiveness.­ESPON­is­therefore­convinced­that­its­research­on­the­often­quite­complex­issues­of­territorial­development­can­and­should­assist­that­process.­That­is­why­the­Territorial­Review­translates­its­analytical­findings­into­pointers­for­policy­to­assist­in­redesigning­Cohesion­Policy­post-2020.­The­core­message­here,­substantiated­in­Chapter­9,­is­that­territorial­cooperation­should­be­integrated­into­the­mainstream­of­Cohesion­Policy­post-2020.­

1.1. Key messages from Territorial Review topics The following paragraphs discuss the main messages per topic addressed in the report and discuss the main conclusions on territorial cooperation on these topics against recent trends in European integration and­cooperation.­This­publication­deals­with­seven­important­contemporary­issues­with­the­most­signifi-cant­territorial­impact:­

▪ finding­answers­to­the­important­demographic­issues­of­ageing­and­migration;

▪ stimulating­employment­in­the­knowledge­economy;­

▪ promoting­economic­growth­through­SMEs­and­FDI;­

▪ boosting­renewable­energy­sources;­

▪ developing­the­circular­economy;­

▪ developing­physical­and­digital­connectivity;­

▪ improving­the­quality­of­life­through­SGIs.

Ageing,­ and­more­specifically­ the­ rapid­ increase­ in­ the­old-age­dependency­ ratio,­ is­an­ issue­ facing­Europe­as­a­whole­but­very­unequally­across­the­continent.­The­analyses­point­to­a­number­of­ways­in­which­territorial­entities­could­cooperate­to­improve­the­quality­of­life­for­the­elderly.­

Many­policies­are­already­widely­applied­by­neighbouring­local­authorities­across­Europe.­These­include­creating­age-friendly­and­ fully­accessible­public­and­recreational­spaces­ for­ the­elderly,­or­ ­developing­mentor­programmes­between­seniors­and­young­entrepreneurs­who­can­benefit­from­their­experience­and­knowledge.­Keeping­newly­retired­people­economically­active,­also­called­‘pretired’,­is­another­policy­enjoying­increasing­popularity.­

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European Territorial Review // Territorial Cooperation for the future of Europe

However,­many­less­densely­populated­areas­and­smaller­settlements­are­experiencing­problems­with­a­considerable­and­increasing­age­imbalance.­For­these,­effective­policies­such­as­one-stop-shop­admin-istration­or­joint­e-healthcare­advice­for­the­elderly,­are­more­dependent­on­territorial­cooperation.­In­these­areas,­the­problem­can­also­be­tackled­by­making­such­settlements­more­attractive­for­young­people­by­creating­better­educational­or­cultural­facilities.

Developing­sound­policy­that­deals­effectively­but­humanely­with­international­migration­is­arguably­the­most­divisive­issue­in­Europe­at­the­present­time.­This­issue­demands­a­high­degree­of­policy­cooperation­between­nation­states,­but­at­the­same­time­the­willingness­to­cooperate­is­not­forthcoming.­The­Territorial­Review­presents­some­interesting­facts,­but­in­terms­of­policy­there­is­very­little­on­this­issue­that­has­not­been­said­before.­However,­the­Review­draws­conclusions­from­its­own­evidence.­These­include­the­need­to­develop­ joint­systems­ to­ regulate­controls­and­flows­of­external­EU­migrants,­ to­establish­ twinning­projects­ between­ regions­ where­most­ external,­ non-EU­migrants­ settle­ and­ other­ regions.­ Evidence­points­ to­ the­ need­ to­ establish­ joint­ labour­ mobility­ platforms­ to­ better­ integrate­ EU­ immigrants­ in­ the­ labour­market,­ or­ to­ support­ cultural­ activities,­ sports­activities­and­classes­ to­encourage­greater­integration­of­non-EU­migrants­into­European­society.

Much­ESPON­research­evidence­points­to­the­importance­of­the­knowledge economy to create employ-ment­and­a­higher­overall­ level­of­economic­well-being­ in­many­regions­and­towns.­Against­ the­back-ground­ of­ the­ need­ to­ maintain­ Europe’s­ competitiveness,­ the­ overriding­ problem­ that­ needs­ to­ be­addressed­is­the­increasing­territorial­imbalance­within­Europe­of­the­knowledge­economy­between­less­wealthy­and­less­densely­populated­regions,­and­relatively­few­larger­and­specialist­cities.­

To­reduce­disparities­while­maintaining­the­global­competitiveness­of­such­well-endowed­cities,­policies­could­be­developed­that­attract­skilled­employees­from­inside­and­outside­the­EU­by­promoting­the­image­of­top­knowledge­economy­regions­and­improving­their­visibility­at­a­global­level.­At­the­same­time,­the­so-called­value­chains­of­European­knowledge­economies­can­be­enhanced­by­furthering­their­coopera-tion­with­other­territories­offering­complementarities.­In­less­endowed­regions­potential­can­be­increased­by­ supporting­ training­ and­ education­ programmes.­ Labour­ mobility­ strategies­ can­ be­ developed­ to­­generate­win-win­situations­between­receiving­and­sending­regions.­These­are­­examples­of­cooperation­measures­that­could­counterbalance­an­increasing­concentration­of­the­­knowledge­economy.

Small­ and­ Medium-sized­ Enterprises­ (SMEs)­ and­ Foreign­ Direct­ Investments­ (FDIs)­ are­ important­­generators­of­economic­growth.­

SMEs­are­everywhere­in­Europe;­their­growth­has­to­be­encouraged­and­supported,­especially­by­good­governance.­Local­authorities­can­work­together­to­cut­the­costs­of­this­support­and­improve­SME­access­to­information,­for­example­on­potential­suppliers,­clients,­knowledge­institutes,­or­taxation­in­networks­and­clusters­elsewhere.­Also­the­internationalisation­of­SMEs­can­be­supported­in­all­regions.­

FDI,­however,­tends­to­be­concentrated­in­larger­urban­areas,­especially­large-scale,­long-term­FDI.­The­key­is­then­to­ensure­there­are­productivity­spill-overs­from­these­areas.­In­lower-tier­settlements,­territo-rial­cooperation­can­help­create­a­critical­mass­of­skilled­labour­together­with­the­other­locational­require-ments­that­attract­FDI.­

There­ is­ overwhelmingly­ broad­ political­ support­ for­ increasing­ the­ proportion­ of­ renewable energy sources­in­Europe’s­total­energy­supply.­Although­this­objective­can­only­be­achieved­by­the­collective­results­of­policy­measures­in­many­fields,­the­land­management­dimension­is­essential.­Suitable­­locations­have­to­be­found­for­wind­turbines­and­large­scale­solar­farms,­for­energy­grids­and­so­on.­Sun,­wind,­production­potential,­consumption­and­network­connections­are­unequally­distributed­across­Europe.­

The­need­ for­cooperation­ to­overcome­ these­ territorial­mismatches­at­all­ levels­ is­evident.­ Integrated­regional­strategies­to­boost­renewable­energy­in­functional­regions­and­urban-rural­partnership­areas­can­link­production­with­distribution­ to­consumers.­These­can­also­be­used­ to­channel­private­and­public­investment­into­renewables.­

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European Territorial Review // Territorial Cooperation for the future of Europe

Similarly,­at­the­macro-regional­level,­transnational­energy­markets­and­renewable­energy­clusters­can­be­ developed,­ and­ interconnection­ plans­ implemented.­ Lastly­ the­ global­ dimension­ of­ renewables­demands­cooperation­between­Europe,­its­neighbours­and­more­distant­countries.

Developing­the­circular, resource-efficient economy requires a mega-shift in production and transport as­well­as­in­consumer­behaviour­and­is­therefore­a­(very)­long-term­policy­orientation.­This­is­now­only­at­ a­ preliminary­ stage­ in­ Europe.­ Recognition­ of­ the­ urgency­ of­ its­ implementation­ varies­ but­ could­increase­considerably.­Certain­territorial­cooperation­measures­emerge­from­the­analyses­which­would­enable­development­of­the­circular­economy­to­be­taken­to­the­next­stage­of­policy-forming­and­imple-mentation.­

Moving­ towards­ a­ circular­ economy­ requires­ critical­mass­ to­ allow­ industrial­ symbiosis­ in­ production­processes­and­for­approaches­to­the­sharing­economy­to­be­taken­up­at­ local­and­regional­ levels.­To­achieve­this,­the­proximity­of­industries­in­a­functional­urban­region,­from­raw­materials­through­manufac-turing­to­waste­management,­needs­to­be­exploited.­

Joint­regional­sharing­economy­platforms,­such­as­car­sharing­or­tool­sharing­could­also­be­developed.­Moving­towards­a­circular­economy­also­implies­substantial­changes­in­production­and­transport­­systems.­This­contains­potential­for­the­development­of­polycentric­and­more­decentralised­structures,­for­example­through­additive­manufacturing­(3D­printing)­as­well­as­repair­and­reuse­industries­(e.g.­in­smart­special-isation­strategies).­This­could­provide­new­opportunities­for­lagging­areas.­Joint­strategies­could­be­devel-oped­between­ territorial­ entities­ on­ how­ to­ adjust­ (freight)­ transport­ systems­ to­ the­ circular­ economy­through­transport­pooling.

Moving­towards­a­circular­economy­requires­new­solutions­and­innovations­to­transform­production­pro-cesses­and­change­consumer­behaviour,­ for­example­ in­waste­prevention,­ recycling­and­ the­sharing­economy.­This­implies­the­need­for­information­exchange­to­speed­up­the­process.­So­circular­economy­knowledge­transfer­networks­could­be­set­up­for­innovative­ideas­in­both­production­processes­and­con-sumer­behaviour.­

Territorial cooperation on connectivity­ has,­ by­ its­ very­ nature,­ been­ going­ on­ for­ centuries.­What­ is­­(relatively)­new­is­ the­development­of­efficient­and­faster­cross-border,­multi-modal­ forms­of­physical connectivity­that­are­more­eco-friendly,­as­well­as­the­completely­new­field­of­ICT­connectivity.­

With­physical­connectivity,­there­is­still­room­for­know-how­and­experience­to­be­exchanged­and­shared,­for­example­on­the­coordination­of­eco-friendly­solutions­for­ports­and­of­investments­in­the­further­devel-opment­ of­ multimodal­ transport­ for­ eco-friendly­ connectivity­ across­ administrative­ borders.­ Common­ticket­services­for­commuters­and­passengers­across­borders­–­not­only­national­ones­–­are­still­under-de-veloped.­

ICT connectivity­offers­potential­for­peripheral­areas­to­counterbalance­the­greater­problems­of­physical­connectivity.­Through­ICT­provision,­often­building­on­cooperation­with­players­in­other­territories,­­services­such­as­e-commerce­or­e-governance,­hackathons­or­similar­e-solutions­can­offer­new­opportunities.­These­could­be­initiated­to­help­solve­local­territorial­development­challenges.­In­addition,­the­territorial­analyses­highlight­the­advantages­of­developing­joint­ICT­platforms­for­different­transnational­e-services,­such­ as­ for­ transport­ and­ tourist­ information.­ Cooperation­ would­ also­ help­ in­ tackling­ cyber­ security­issues.

The­last­policy­objective­is­to­improve­the­access­to,­and­the­level­of­provision­of,­services of general interest (SGI),­such­as­healthcare,­schools,­waste­collection­/­disposal­etc.,­particularly­in­more­sparsely­populated,­peripheral­areas.­

Here­a­distinction­is­made­between­daily­local­services­and­more­specialised­ones­which­need­a­wider­area­and­more­people.­Local­authorities­in­(inner)­peripheral­areas­could­form­collective­functional­areas­to­share­daily­services,­ introduce­demand-driven­public­ transport­and­mobile­services,­pool­resources­and­ensure­that­municipal­borders­do­not­form­a­barrier­to­such­cooperation­(e.g.­due­to­differences­in­local­ taxes,­ procedures­ or­ by-laws).­ This­ could­ be­ achieved­ by­ joint­ agreements­ or,­ in­ cross-border­regions,­by­forming­EGTCs.­

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European Territorial Review // Territorial Cooperation for the future of Europe

­

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Providing larger scale, more specialised services such as digital solutions for e-health and other e ser-vices­may­provide­an­improvement,­especially­in­less­accessible­areas.­Such­policies­could­be­of­particu-lar­significance­for­tackling­the­age-dependency­issue­in­these­areas.

ESPON­findings­provide­solid­evidence­on­these­seven­contemporary­themes­of­high­policy­relevance­and­territorial­impact.­In­light­of­the­preparation­of­Cohesion­Policy­post-2020,­this­Territorial­Review­puts­the­spotlight­on­cooperation­as­a­necessary­way­to­develop­more­effective­policies,­counterbalance­cur-rent disintegration trends and keep the unity and strength in diversity­mind-set­alive.­

Territorial cooperation counterbalancing European disintegration trends Territorial cooperation has the opportunity to counterbalance European disintegration trends. Comparing the main policy opportunities for territorial cooperation, in particular at functional levels, against­recent­trends­in­European­cooperation­shows­considerable­differences­and­calls­for­strengthened­policy­focus­on­territorial­cooperation.

The­number­of­EU­Member­States­has­grown­considerably­to­today’s­28.­The­European­Single­Market­and­trans-European­transport­networks­have­been­constantly­developed­and­political,­social­and­cultural barriers­ reduced.­This­ integration­process,­be­ it­at­a­ less­ intensive­ level,­ is­also­ true­ for­ relationships­between­the­EU­and­non-EU­countries­in­Europe­as­well­as­with­neighbouring­countries­in­Africa­and­the Middle­East.­However,­ there­are­signs­ that­ the­European­ integration­processes­could­come­ to­a­halt ­or­even­be­reversed.­Brexit­is­the­most­prominent­example.­The­recent­and­ongoing­controversial­dis-cussions­about­financial­ support­mechanisms­ for­ losers­under­globalisation­and­ the­economic­crises, about­ joint­handling­of­ the­refugee­ issue,­ joint­police­efforts,­ i.e.­about­solidarity­ in­general­ in­Europe,­show­that­further­European­integration­may­not­necessarily­remain­the­main­trend­in­coming­years.­

Disintegration trends can be translated into increasing border effects and border obstacles. This can­take­different­directions­and­increase­border­effects­within­Europe.­This­may­imply­increasing­border­waiting­times­at­EU­and­EEA­internal­and­external­borders­and­different­degrees­of­enhanced­political­and­cultural­borders­between­countries­in­Europe.­To­illustrate­the­effect­of­such­disintegration­trends,­ESPON­has­run­a­model.­To­model­the­direction­of­change­of­reduced­European­integration,­two­variants­of­an­exploratory­scenario­were­implemented,­without­and­with­increasing­border­effects.

The effects of disintegration in Europe are reductions in economic growth in all regions.­So­GDP­per­capita­would­be­lower­everywhere­compared­with­continued­integration.­In­addition,­the­impacts­of­disintegration­on­territorial­cohesion­are­negative.­An­impression­of­the­territorial­distribution­of­tentative­changes­in­terms­of­GDP­per­capita­relative­to­the­European­average­is­shown­on­the­map.­Many­of­the­lagging­regions­face­stronger­reductions,­i.e.­falling­behind­compared­to­the­European­average.­These­are mostly regions in eastern and south-eastern Europe, though several regions in northern Europe would­lose­compared­to­the­European­average.­Most­of­the­stronger­regions­will­also­lose­out­in­absolute­terms­but­gain­in­relative­terms­compared­to­the­European­average.­This­would­be­true­particularly­for­most­regions­in­Germany­and­middle­and­southern­parts­of­Italy.­Other­countries­such­as­Portugal,­Spain,­France,­Switzerland­and­Austria­would­not­change­their­position,­i.e.­the­cohesion­effect­would­be­neutral.

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Map 1 Territorial cohesion effects of European disintegration 2030

500 km

Malta

Acores (PT)

Guyane (FR)

Madeira (PT)

Reunion (FR)Mayotte (FR)

Canarias (ES)

Liechtenstein

Martinique (FR)

Guadeloupe (FR)

Territorial cohesion effects of European disintegration 2030

Regional level: NUTS 3 (version 2013)Source: Spiekerman and Wegener Urban and Regional Research (S&W), Territorial Futures

Origin of data: SASI ModelUMS RIATE for administrative boundaries

© ESPON, 2017

GDP per capitaIndex change in relation to the EU average

-1,4 - -0,3

-0,3 - -0,1

-0,1 - 0,1

0,1 - 0,3

no data

0,3 - 1,3

So­in­the­light­of­the­above,­two­general­conclusions­can­be­drawn.

Firstly,­ it­ is­not­unthinkable­that­Europe­can­turn­once­again­towards­a­more­fragmented­territory.­The­desire­ for­ greater­ fragmentation­ and­ division­ is­ essentially­ political;­ it­ is­ not­ environmental,­ it­ is­ not­­economic­and,­although­the­feelings­of­ insecurity­and­a­desire­to­return­to­ ‘how­things­were’­amongst­sections­of­the­(mainly­older)­population­have­to­be­recognized,­it­is­not­social.­

Secondly, due to this very fact, the impact of a return to a greater degree of territorial fragmentation will be­negative:­economically,­environmentally­and­socially.­‘Territorial­cohesion’­is­not­just­an­empty­word,­or­‘European­jargon’;­it­is­a­reflection­of­Europe’s­high­level­of­territorial­interdependence­and­is­therefore­an­essential­pre-condition­for­the­furtherance­of­the­well-being­and­quality­of­life­of­its­people.­By­provid-ing the evidence underlying territorial interdependence, the Review illustrates clearly the other three interdependencies.­

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European Territorial Review // Territorial Cooperation for the future of Europe

In short, mainstreaming territorial cooperation in the ESIF should be thoroughly considered in the preparation of Cohesion Policy post-2020. This Territorial Review shows that there is a need to strengthen­the­territorial­dimension­of­the­future­Cohesion­Policy­by:

▪ integrating elements of territorial cooperation into their post-2020 Cohesion Policy programmes,thereby­amplifying­territorial­cooperation­beyond­the­experience­of­INTERREG;

▪ encouraging­eligible­regions­and­cities­to­include­a­certain­level­of­territorial­cooperation­in­their­investment­frameworks,­thereby­provoking­broader­thinking­about­the­wider­territorial­implications­of­their­investment­proposals,­using­the­above­policy­pointers­as­ideas­if,­when­and­where­applicable;­

▪ further­encouraging­member­states,­regions­and­cities­to­plan­and­implement­their­investment­initia-tives­at­functional­geographical­levels,­i.e.­looking­beyond­administrative­borders.

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European Territorial Review // Territorial Cooperation for the future of Europe

Inspire Policy Making with Territorial Evidence

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