Transcript Slide 1

Position of the Commission
Services on the development of
Partnership Agreement
and programmes in
ROMANIA
for the period 2014 – 2020
Bucharest, 5 November 2012
Main Economic challenges
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Economic slowdown, fuelling budget deficit
Low employment rate: 62,8%
Shrinking FDI flows
Widening regional disparities
Structural weaknesses on competitiveness
factors
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D
P
&
B
U
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G
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Economic Slowdown
Main Challenges
10.0
G
D
P8.0
•&6.0Economic slowdown, fuelling budget deficit
•B4.0Low employment rate: 62,8%
U
•DG2.0Shrinking FDI flows
GDP growth
•ET0.0Widening
regional
disparities
budget deficit
2007
2008
2009
2010
2011
2012*
2013*
•D-2.0Structural weaknesses on competitiveness
E
factors
F-4.0
I
C-6.0
I
T-8.0
-10.0
G
D
P
&
B
U
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G
E
T
D
E
F
I
C
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T
Main challenges – Global Vision
Europe 2020 headline targets
3% of expenditure on research and
development
20% greenhouse gas (GHG) emissions
reduction compared to 1990
20% of energy from renewables
Current situation in
Romania
National 2020 target
in the NRP
0,47%
2%
+9% (2010 emissions
compared to 2005)
-7% (2020 emissions
compared to 2005
+19% (national binding
target for non ETS sectors
compared to 2005)
23,4
24%
Under revision
10 Mtoe
62,8 (2011)
70%
The share of early school leavers should be
under 10%
17,5% (2011)
11,3%
At least 40% of 30-34 years old should have
completed a tertiary or equivalent education
20,4% (2011)
26,7%
-788,000 (2011)
-580,000
20% increase in energy efficiency
75% of population aged 20-64 should be
employed
Reducing the number of people at risk of
poverty or exclusion by 20 mill. In the EU
Cohesion Policy in Romania
• Extremely low absorption rate (<10%)
• Failure to overcome the corresponding
shortcomings (Priority Action Plan)
• Deficiencies in the management and control
system
Low labour
market
participation
Underdeveloped
infrastructure
endowment
Main
Challenges:
Low competitiveness
and weak RDI system
Inefficient use of
natural resources
Weak
administration
and public
governance
Low labour
market
participation
Challenges
Labour force potential insufficiently tapped
• Low employment levels combined with increasing youth
unemployment
• High share employed in agricultural activities
• Difficult labour market integration for vulnerable groups,
Roma in particular
Total Unemployment rate and youth
Bottlenecks
education
and training
Total
Employment ratein
(20-64
years) and youth
unemployment rate (15-24 years)
employment rate (20-29 years)
• Romania underperforming for early school leaving, tertiary
attainment and basic skills
• Mismatch between labour market needs and labour skills
• Low participation in lifelong learning
High share of population at risk of poverty & social exclusion
• People living in rural areas and vulnerable groups especially
affected, particularly the Roma
Year
Year
Low labour
market
participation
Challenges
Bottlenecks in education and training
• Romania underperforming for early school leaving, tertiary
attainment and basic skills
• Mismatch between labour market needs and labour skills
• Low participation in lifelong learning
High share of population at risk of poverty & social exclusion
• People living in rural areas and vulnerable groups especially
affected, particularly the Roma
Early leavers from education and training, by country (%) - 2011
Data for 2011 for ME, US and JP not available
Low labour
market
participation
Improving human capital through higher employment
and better social inclusion and education policies
1. Funding
priority:
Increasing the
employment rates
of young people
and vulnerable
groups
• Integration of young people not in
employment, education or training into the
labour market – more individualised measures
and access to apprenticeship and work-based
training
• Target vulnerable groups (Roma, elderly,
women, long-term unemployed, inactive,
people with disabilities and employed in low
productivity agriculture) through active and
preventive labour market measures and
personalised support
Low labour
market
participation
Improving human capital through higher employment
and better social inclusion and education policies
2. Funding
priority: Improve
access to,
participation in and
quality of
education and
training
• Reducing early school leaving – targeting
particularly students from rural and
disadvantaged areas
• Improving quality, efficiency and labour
market relevance of education and training
• Promotion and diversification of life-long
learning (LLL) – targeting mainly low skilled
• Upgrading and modernising education and
training infrastructure
Low labour
market
participation
Improving human capital through higher employment
and better social inclusion and education policies
3. Funding
priority:
Promoting social
inclusion, in
particular by
enhancing access
to healthcare and
social services
• Expanding, diversifying and improving access
to social and healthcare services – in particular
for vulnerable groups and isolated localities
• Modernisation of the health system, including
through the rehabilitation of infrastructures
• Fostering community-led local developments in
rural areas, to promote social inclusion
• Diversification of activities in coastal and
maritime areas affected by the restructuring of
the fisheries sectors
Low labour
market
participation
Improving human capital through higher employment
and better social inclusion and education policies
Elements of
particular
relevance for rural
areas
• Creating new employment
opportunities in agricultural and nonagricultural sectors
• Promoting acquisition of new skills for
farmers and non-farmers
• Fostering community-led local
development initiatives for increasing
growth and employment and retaining
population
Underdeveloped
infrastructure
endowment
Challenges
Continuous decline of the rail sector:
• Shrinking demand due to declining reliability
• Excessive length of the network with respect to the traffic &
maintenance capacity
• Low performance of the railway companies and obsolete
equipment
Low international accessibility and regional connectivity:
• Low motorway endowment hampers attractiveness for FDIs and
contributes to congestion and fatalities rate
• Untapped potential of inland navigation
Low broadband coverage
• Low broadband take-up and low rate of internet usage
• Rural areas more affected
Underdeveloped
infrastructure
endowment
Developing modern infrastructure for growth and jobs
1. Funding
priority: Building
accessibility of
growth poles to the
internal market by
investing in the
TEN-T network
• Streamlining the railway system, upgrading
the core networks, including ERTMS
investments and modernising the railway
companies;
• Extending and upgrading the road and
motorway network, improving connectivity
of major urban agglomerations
• Supporting other modes and
interconnecting points, in particular to
foster navigability of the Danube
Underdeveloped
infrastructure
endowment
Developing modern infrastructure for growth and jobs
2. Funding
priority:
Enhancing access
to and use and
quality of ICT
• Extension of broadband infrastructures in
market failure areas, in particular rural
areas
• Promoting the extension of New Generation
Access in case of market failure
• Developing monitoring and mapping tools
• Fostering the use and demand for ICT,
through development of products and
services and e-commerce and the
promotion of ICT training
Low competitiveness
and weak RDI system
Challenges
Fragile economic structure, largely composed of SMEs:
• Specialised in low added value areas
• Low productivity
• Obstacles to development
Territorial imbalances
• Uneven development between regions and urban / rural areas
• Need to tackle the untapped potential of rural and fisheries and
maritime areas
Inefficient RDI system
• Low public expenditure, poorly demand driven
• Fragmented R&I system
• Low private expenditure reflecting unfavourable framework
conditions for business R&I
Low competitiveness
and weak RDI system
Promoting economic competitiveness and local
development
1. Funding
priority:
Supporting
innovation and
competitiveness of
economic operators
and improving
business
environment
• Fostering innovation and transfer of
knowledge, including through the
development of clusters and providing
tailored access to services;
• Supporting the life cycle of enterprises:
from the setting-up and during their
lifetime;
• Improving the business environment and
facilitating access to public funding (onestop-shop mechanism)
Low competitiveness
and weak RDI system
Promoting economic competitiveness and local
development
2. Funding
priority: Promoting
entrepreneurship,
including in rural,
maritime & fisheries
areas and improving
the economic
environment in rural
& coastal areas,
including related
local infrastructure
• Promoting entrepreneur skills for potential
and existing managers
• Facilitating the reconversion and
diversification of agricultural activities, by
supporting the conditions for local
development, including through investments
in local infrastructures
• Promoting supply structures in the fisheries
sector to support producer groups
• Diversifying the economic base e.g. better
exploit the potential of the blue economy
Low competitiveness
and weak RDI system
Promoting economic competitiveness and local
development
3. Funding
priority: Smoothing
access to finance
and advanced
business services
for SMEs
• Supporting access to tailored
services for SMEs, including to
access international markets;
• Promoting access to finance,
through financing engineering
instruments;
• Easing access to microfinance, in
particular in agricultural sector
and for young people
Low competitiveness
and weak RDI system
Promoting economic competitiveness and local
development
4. Funding
priority: Boosting
demand driven R&D
capacity and
infrastructures
• Supporting public research, focussing on
key sectors stemming from demand driven
national strategy and excellence centres
• Promoting private research, tackling
current impediments and facilitating the
commercialisation of research outcomes
• Enhancing the capacity of Romanian R&D
institutions to integrate EU and
international networks
Low competitiveness
and weak RDI system
Promoting economic competitiveness and local
development
Elements of
particular relevance
for rural areas
• Increasing added-value of agricultural
and forestry products through
processing and marketing and better
integration in the food chain
• Developing new products, services
and activities
• Improving and developing local
infrastructure and services for
economic development
Inefficient use of
natural resources
Challenges
High energy intensity and GHG emission levels
•
Hinder the competitiveness of economic operators
•
Low profitability of energy efficiency measures due to regulated prices
Low endowment of environmental infrastructures
• Slow investment pace of water supply & wastewater infrastructures
•
Highly deficient waste management system
•
Significant source of water pollution and eutrophication
• Numerous polluted soils, hindering development
High energy intensity and GHG emission levels
•
Hinder the competitiveness of economic operators
•
Low profitability of energy efficiency measures due to regulated prices
Fragile biodiversity
• Confronted with challenging threats of losses, including in the Black Sea
Vulnerability to risks
• Exposure to extreme weather conditions, exacerbated by climate change
• Lack of skills and tools to prepare risk prevention plans and implement risk
management structures
Inefficient use of
natural resources
Optimising the use and protection of natural resources
and assets
1. Funding
priority:
Promoting energy
efficiency and lowcarbon economy
and strategies
• Increasing energy efficiency
• Supporting sustainable urban
transport strategies and
infrastructures
• Promoting carbon
sequestration through agroforestry systems
Inefficient use of
natural resources
Optimising the use and protection of natural resources
and assets
2. Funding
priority: Reducing
vulnerability to
risks, supporting
adaptation to
climate change and
developing disaster
management
systems
• Supporting the national
adaptation strategy
• Promoting risk prevention
capacity
• Supporting risk management
skills and structures
Inefficient use of
natural resources
Optimising the use and protection of natural resources
and assets
3. Funding
priority:
Protecting
environment and
biodiversity by
valorising natural
sites and
implementing
acquis related
investments
• Continuing water and wastewater
investments
• Treatment of polluted soils
• Promotion of agricultural practices
improving buffer and filter function
of soils
• Preserving and enhancing
biodiversity
Weak administration
and public
governance
Challenges
Ineffectiveness of the public administration
• Lack of policy making capacity
• Overregulated environment prejudicing business environment
and public investment capacity
Rooted in structural governance deficiencies
• Political interferences and blame and shame management
• => Fuels in turn aversion to decision and risks, together with
bureaucracy and lack of ownership
Inefficiency and poor performance of the judiciary
Scattered e-government initiatives
• Ineffective as not mainstreamed in holistic modernisation
schemes
• => Minimum endogenous conditions to efficiently make
use of external assistance, wasted in vain, are not met
Weak administration
and public
governance
Modernisation and reinforcement of the national
administration and of the judiciary
1. Funding
priority:
Enhancing
institutional
capacity and an
efficient public
administration
2. Funding
priority:
Strengthening
ICT applications
for e-government
•Increasing efficiency and effectiveness of the
administration, through streamlined and simplified
procedures
•Reinforcing coordination and policy making capacities
and empowerment, including by improved recourse
to partnership mechanisms
•Enhancing the professionalism, independence and
attractiveness of the administration
•Tackling through structural endogenous reforms
governance deficiencies
•Supporting the recommendations issued from the
Cooperation and Verification Mechanism (CVM)
•Supporting the development of e-government
instruments and measures, as part of underlying
comprehensive ministerial modernisation schemes
European Territorial Cooperation
Most relevant priorities:
• RDI fostering integration in international networks
• Climate change adaptation and risk prevention and
management
• Initiatives in favour of marginalised communities
• Improvement of transport connections under the TEN-T
policy
Coordination and alignment between operational programmes
and the EU strategy for the Danube Region (EUSDR) required
Ex-ante conditionalities
Aim at ensuring effective and efficient use of EU Funds
1. Strategy for reinforcing administrative capacity
2. Comprehensive and multimodal transport master plan
3. Adoption of national R&I strategy for smart specialisation
4. National strategy for poverty reduction
5. Effective public procurement system
6. National / regional strategy(ies) for health
7. Strategy for reducing early school leaving
8. Modernisation and strengthening of labour market institutions
9. Improved data collection for fisheries management
10. Reliable recording system for monitoring State aid expenditure
11. Agricultural strategy and functional cadastre system
12. Advisory capacity in agriculture and forestry sectors
13. Strategic plan for aquaculture
Effective programme design & delivery
Drawing lessons from the current period
• Programmes supporting sectoral strategies, anchored in
overarching mid-term development strategic policy
• Preparation of pipeline of mature projects, support to
reinforce the beneficiary capacity and streamline
procedures
• Enhanced coordination (ACIS), possibly extended to other
Funds (EAFRD, EFF, ECT, Connecting Europe Facility)
• Overcome weaknesses in the management and control
systems
Any management model cannot substitute reforms
required to overcome current shortcomings
Next steps: the way forward
Negotiation process for Partnership Agreement (PA) in
Romania
Position
paper sent
to Romania
Launch
event
Informal
dialogue
with
Romania
(working
groups)
Romania
sends PA
through SFC
CPR
adopted
October
2012
November
December
2013
observations
sent to
Romania