EUROPEAN COMMISSION Regional Policy EN Third Cohesion report February 2004 Convergence, Competitiveness and Co-operation EUROPEAN COMMISSION Regional Policy 18/02/2004 EN EN Importance of the Cohesion reports Third Cohesion report context • Every 3 years Commission.
Download ReportTranscript EUROPEAN COMMISSION Regional Policy EN Third Cohesion report February 2004 Convergence, Competitiveness and Co-operation EUROPEAN COMMISSION Regional Policy 18/02/2004 EN EN Importance of the Cohesion reports Third Cohesion report context • Every 3 years Commission.
EUROPEAN COMMISSION Regional Policy EN Third Cohesion report February 2004 Convergence, Competitiveness and Co-operation EUROPEAN COMMISSION Regional Policy 18/02/2004 EN EN Importance of the Cohesion reports Third Cohesion report context • Every 3 years Commission analyses state of cohesion and contribution of its policies (Art. 159 of the Treaty) •1st report (1996) the premises of Agenda 2000 •2nd report: (2001) launched debate on cohesion policy after enlargement • 3 report (February 2004): presents proposals for reformed cohesion policy after 2007 rd 2 EUROPEAN COMMISSION Regional Policy EN The report contains 4 parts Third Cohesion report structure 1. Analysis of situation and trends in the regions and factors of competitiveness 2. The contribution of national policies to cohesion 3. The contribution of community policies 4. The impact of Cohesion Policy 3 18/02/2004 EN EUROPEAN COMMISSION Regional Policy 18/02/2004 EN EN Financial perspectives 2007-2013 Third Cohesion report Financial aspects 4 Promoting Europe's wealth - Policy challenges and budgetary means of the enlarged Union 2007-2013 Keeping the current expenditure ceiling (1.24% of the Union's GNI) Commission proposal: commitments 1.22% and 1.14% for payments A distinct change in the financial perspectives Four political priorities for the Union: • Sustainable development – competitiveness, cohesion (for growth and employment) • conservation and management of natural resources • Citizenship, freedom, security and justice • The EU – a global partner EUROPEAN COMMISSION Regional Policy EN Third Cohesion report 18/02/2004 EN Reminder: EU budget 2000-2006 Ceiling as regards committments per year: € 108.5 billion for EU25, of which € 37 billion for structural actions, at 2004 prices Financial Perspectives 2007-2013 Ceiling as regards committments per year: € 146.4 billion for EU27, of which € 48 billion for structural actions, at 2004 prices (excluding rural development) 5 18/02/2004 EN EUROPEAN COMMISSION Regional Policy EN Third Cohesion report BRU Expenditure on cohesion policy, 2000-2013 4711 Rural development deductions Expenditure in EU15 (left axis) EUR million (at 1999 prices) % of GNI Expenditure in N12 (left axis) 70000 0,40 Expenditure in EU15 as % of GNI in EU27 (right axis) 0,35 60000 0,30 50000 0,25 40000 0,20 30000 0,15 Expenditure in N12 as % of GNI in EU27 (right axis) 20000 0,10 10000 0,05 0 0,00 2000 2001 Source: DG REGIO 6 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 EUROPEAN COMMISSION Regional Policy EN Third Cohesion report Context Proportions of expenditure Cohesion Policy • Is 34% of EU budget (€ 336 billion for the period 2007-2013, at 2004 prices) • Is about 0.41% of Union GDP (with rural development and fisheries: 0.46%) • About 50-50 between current and new Member States • More than ¾ of the budget for regions and Member States lagging behind in development 7 18/02/2004 EN 18/02/2004 EN EUROPEAN COMMISSION Regional Policy EN Third Cohesion report Categories of expenditure in Structural Funds 4,3 Breakdown of Structural Fund allocation in Objective 1 regions: all Member States, 2000-2006 Other 2% Context Productive environment 34% Infrastructure 41% Human resources 23% Source: DG REGIO For 2007-2013 + strengthening administrative capacity 8 EUROPEAN COMMISSION Regional Policy EN Observations Third Cohesion report Part 1 situation and trends: some results 9 • Significant convergence of cohesion countries • Positive trend in Obj. 1 regions overall • GDP, employment and productivity growth above European average • Modernisation of economic structures and management methods • Better governance at regional level • Greater regional co-operation at European level 18/02/2004 EN EUROPEAN COMMISSION Regional Policy 18/02/2004 EN EN GDP Growth in Cohesion Countries GDP per head growth in Spain, Portugal and Greece between 1998 and 2002 compared to average GDP growth in EU15 Third Cohesion report Spain Portugal Greece Cohesion 3 10 4,0 4,0 3,0 3,0 2,0 2,0 1,0 1,0 0,0 0,0 -1,0 -1,0 -2,0 -2,0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 18/02/2004 EN EUROPEAN COMMISSION Regional Policy EN Unemployment rates 1996-2001 Third Cohesion report Part I Situation and trends Unemployment rates in EU15, 1996 and 2002 (% of labour force) 1996 2002 EU15 Cohesion countries Greece Spain Ireland Portugal Other Member States Source: Eurostat, LFS 11 10,7 7,8 17,0 9,6 9,7 10,0 22,3 11,4 11,9 4,3 7,4 5,1 9,5 7,5 18/02/2004 EN EUROPEAN COMMISSION Regional Policy EN Third Cohesion report Impact and added value of Structural Policies European cohesion policy or simple budgetary transfer? Proportion of EU transfers to main beneficiaries spent on imports purchased from other Member States 42,6 % Greece 35,2 % Portugal Ireland 26,7 % 18,9 % New Länder 17,4 % Mezzogiorno Spain 14,7 % 0 12 10 20 30 40 50 EUROPEAN COMMISSION Regional Policy 18/02/2004 EN EN Impact of enlargement Third Cohesion report Part I • Population of the Union grows from 380 to 454 million (EU 25) or 485 million (EU 27) • New MS bring more dynamic growth (4% per year against 2.5% in EU 15) • GDP per head drops: -12.5% EU 25; -18% EU 27 in euros 13 EUROPEAN COMMISSION Regional Policy 18/02/2004 EN EN Impact of enlargement Third Cohesion report Part I • Population in the convergence objective goes from 84 million to 123 million • Development gap between regions doubles: average GDP in Obj. 1 is 69%: new MS 46% • Employment rate in EU 15 grew from 60% to 64% (1996 – 2002). In NMS 10 it was 56%: (59% in 1999) 14 18/02/2004 EN EUROPEAN COMMISSION Regional Policy EN Third Cohesion report Part I Situation and trends GDP per head PPS 2002 200.0 Index, EU25 = 100 180.0 160.0 140.0 120.0 100.0 Average EU25 80.0 60.0 40.0 20.0 0.0 LU IE DK NL AT UK BE FR SE FI DE IT 15 Source: Eurostat, National Accounts ES CY EL PT MT SI CZ HU SK PL EE LT LV RO BG EUROPEAN COMMISSION Regional Policy EN Third Cohesion report Part I Situation and trends < 50 50 - 75 75 - 90 90 - 100 100 - 125 >= 125 No data Index EU 25 = 100 Source: Eurostat 16 Regional GDP 2001 GDP per head (PPS), 2001 18/02/2004 EN EUROPEAN COMMISSION Regional Policy EN Employment rate 2002 Third Cohesion report < 56 < 56.0 – 60.2 < 60.2 – 64.4 64.4 – 68.6 >= 68.6 No data EU-27 = 62.4 Standard deviation = 8.4 Source: Eurostat and NSI 17 % of population between 15-64 18/02/2004 EN 18/02/2004 EN EUROPEAN COMMISSION Regional Policy EN Educational level 2002 % of total population aged 25-64 Third LOW Cohesion report < 19.2 19.2 – 28.0 28.0 – 36.8 36.8 – 45.6 >= 45.6 no 18data EU-27 = 32.4 Standard deviation = 17.7 MEDIUM < 35.05 35.05 – 43.35 43.35 – 51.65 51.65 – 59.95 >= 59.95 no data EU-27 = 47.5 Standard deviation = 16.59 HIGH < 13.65 13.65 – 17.95 17.95 – 22.25 22.25 – 26.55 >= 26.55 no data EU-27 = 20.01 Standard deviation = 8.57 Source: Eurostat (LFS) EUROPEAN COMMISSION Regional Policy EN Third Cohesion report < 7.45 < 7.45 – 9.55 < 9.55 – 11.65 11.65 – 13.75 >= 13.75 No data Average = 10.6 Standard deviation = 4.30 Sources: Eurostat 19 Employment hi-tech 2002 Regional competitive factors 18/02/2004 EN EUROPEAN COMMISSION Regional Policy 18/02/2004 EN EN The contribution of national policies Third Cohesion report • National budgets are 47% of GDP on average • The Cohesion budget is 0.43% of GDP Part II Different approaches to promote growth 20 • National budgets give priority to basic services and income support • The Structural Funds aim to improve the factors of regional convergence and support physical and human investment – about 80% of the total EUROPEAN COMMISSION Regional Policy EN Third Cohesion report 18/02/2004 EN The contribution of other Community policies • Aim at specific objectives set out in the treaty • Do not always have cohesion as an objective • But there have been improvements Part III Need to promote coherence of policies 21 • A need to strengthen coherence between these policies and the objective of cohesion, especially for the new MS. EUROPEAN COMMISSION Regional Policy 18/02/2004 EN EN The impact of Cohesion policy Third Cohesion report • Increase public and private investment in beneficiary regions (growth) • Contribute to increasing GDP (convergence) Part IV Mobilising resources to promote growth • Create jobs and maximise potential of human resources • Increase physical and human capital • Better regional and local governance • Financial stability over 7 years 22 EUROPEAN COMMISSION Regional Policy 18/02/2004 EN EN A new partnership for Cohesion Third Cohesion report Reform of the policy Conclusions 23 1. In respect of the Union's priorities 2. In respect of enlargement and the increased responsibilities of cohesion policy 3. Covers all States, regions and towns – greater subsidiarity EUROPEAN COMMISSION Regional Policy EN Third Cohesion report Reform of the policy Conclusions 24 18/02/2004 EN Priorities of the reform (I) First objective: Convergence and competitiveness • Regions less than 75% of EU 25 average GDP/head • Statistical effect regions: less than 75% of EU 15 GDP/head but more than 75% of EU 25. • States with less than 90% of EU 25 average GNI/head (Cohesion Fund) • Special accessibility programme for OMR • Budget: about 78% of the total EUROPEAN COMMISSION Regional Policy EN Third Cohesion report Priorities of the reform (II) Second objective: regional competitiveness and employment • Cohesion policy at the service of all other regions in the Union – no community zoning Contains two elements: • first element: regional competitiveness - Reform of the policy • Conclusions innovation and the knowledge society accessibility and services of general interest environment and risk prevention would include responsibility for cities delegated to the regions (URBAN+), no community initiative (Lisbon and Gothenburg strategy) second element: employment - based on European Employment Strategy - adaptability of the workforce, - job creation, accessibility to the labour market for vulnerable persons Budget: ca 18% of total FS= current objectives 2 and 3 25 18/02/2004 EN EUROPEAN COMMISSION Regional Policy EN Third Cohesion report 18/02/2004 EN Priorities of the reform (III) Third objective: European Territorial cooperation The success of INTERREG, community added value Makes possible harmonious and balanced integration of the whole Union Border regions, including sea borders Reform of the • policy • Cross border co-operation (MS to propose changes to the 13 present zones of INTERREG III B) • Interregional co-operation (also within mainstream) Conclusions • External cross-border co-operation – linked to the new european neighborhood instrument, including multiannual programming and just one financial instrument Budget: around 4 % of the total 26 EUROPEAN COMMISSION Regional Policy 18/02/2004 EN EN Implementation system: evolution not revolution Third Cohesion report • • Confirmation of the principles which made this policy a success –multi-annual programming, partnership, evaluation, co-finance, shared responsibility Retention of n+2 rule and system of advances Simplification: • More strategic approach: Reform of the policy Conclusions 27 reduction in number of financial instruments: 3 not 6 and single fund programmes only Clearer division of responsibilities with the sustainable development policy Reducing the stages of programming (policy document from each MS, operational programmes) Simplification of financial management (priority axes) Controls: introduction of proportionality, contracts Political discussion in Council, EP opinion, Commission mandate, annual report presented to spring Council EUROPEAN COMMISSION Regional Policy 18/02/2004 EN EN Proposed timetable Third Cohesion report 10 and 11 May 2004: European cohesion forum, Brussels July 2004: Commission adopts the legislative packet Next stages End 2005: Decision by Council and European Parliament 2006: Preparation of programmes for period 2007-2013 1 Jan 2007: Implementation begins 28