Final Conference

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LiRa-2 From Vision to ActionCharles
WhitePrincipal AdministratorRegional Policy
Directorate-GeneralEuropean Commission

• Final Conference
• 15 September 2005

Museum of Science and Industry Manchester, UK
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European CohesionPolicy

• Presentation to participants at
• LIRA conference, Manchester
• 15 September 2005

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Four things to remember

• This is the second biggest budget of the EU and
  is the effective arm of other policies
  (environment, transport, energy)
• This policy has successfully reduced the gaps
  between the regions in Europe.
• It works by investing in people, business, the
  environment and transport not through hand outs
• It has improved management, governance growth and
  productivity in all the places it has been applied

A European Cohesion Policy
Simple message
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A short history

• After a period of differing practices there were
  three reforms between 1988 and 2000
• The Commission proposes a fourth one to enable
  the structural funds to face up to the future
• Greater disparities with enlargement
• Achieving growth and sustainable development
• the Lisbon and Gothenburg agendas
• Globalisation and restructuring
• Dealing with ageing population, slower growth

The early days
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Position now and to end 2006

• 3 Structural Funds
• ERDF European Regional Development Fund
• ESF European Social Fund
• EAGGF Agricultural Guidance and
• Financial Instrument for Fisheries (tiny)
• Cohesion Fund (based on GNP/GNI)
• Pre accession instruments (ISPA, PHARE etc.)
• Budget of 37billion p.a. fixed till end of
  period

Money
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Position now and to end 2006

• 3 Objectives
• Obj 1, biggest budget (69), widest range
• Obj 2, (11.7) concentrated on job creation
• Obj 3, (12.6) education and training systems
• 4 Community Initiatives (4)
• INTERREG
• URBAN2
• LEADER
• EQUAL
• Some Innovative Measures (0.7)
• Regional Information Society, Innovation Transfer

Mechanisms
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Benefits of Community method

• Multi annual programming brings objectivity,
  improved management (North Jutland, Ireland,
  Mezzogiorno, Basque country)
• Partnership principle has improved governance,
  involvement of civil society (UK, Austria)
• Decentralisation means greater responsibilities
  for the regions, greater confidence
• Leverage effect makes EC Euro more effective,
  encourages greater national investment (Portugal,
  Sweden)

context
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Priorities of the reformThree new objectives

• Convergence and competitiveness (regions below
  75 GDP, statistical effect regions and the
  Cohesion fund) 78 of budget
• Regional competitiveness (former Obj 23 with
  accent on Lisbon/Gothenburg, mainstream URBAN)
  18 of budget
• Territorial co-operation (all former INTERREG
  elements with encouragement to mainstream them
  also in above objectives) 4 of budget

Reform of the policy
Conclusions
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Implementation system evolution not
revolution

• We keep the principles which made this policy a
  success multi-annual programming, partnership,
  evaluation, co-finance, shared responsibility
• We keep the n2 rule and system of advances
• Simplification
• Cut down number of financial instruments 3 not 6
  and single fund programmes only
• Clearer division of responsibilities with the
  sustainable development policy
• Reduce the stages of programming (policy document
  from each MS, operational programmes)
  
• Simplify financial management (priority axes)
  and controls introduce proportionality,
  contracts
• More strategic approach
  
  Political discussion in Council, EP opinion,
  Commission mandate, annual report presented to
  spring Council

Reform of the policy
Conclusions
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Financial perspectives 2007-2013

• The budget is now about 1.07 of GNI
• The Commission proposed 1.21
• Six MS want 1
• Parliament has proposed 1.18 (with Cohesion
  getting 0.41 of GDP)
• Proposed compromise for June Summit was 1.06,
  with, for Cohesion Policy
• 307bn (not 336bn) 0.37 GDP (not 0.41)
• Convergence 82 (not 78)
• Competitiveness 15 (not 18)
• Territorial co-operation 2 (not 4)

Financial aspects
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Timetable

• June 2005 (No) Decision by Council on
  Financial Perspectives
• July 2005 Draft Community Strategic Guidelines
  adopted by
• Commission public consultation
• Autumn 2005 - Decision by Council and European
  Parliament on
• cohesion policy regulations
• - Community Strategic Guidelines published
• - Preparation of National Strategic Reference
• Frameworks
• 2006 (?) Preparation of programmes for period
  2007-2013
• 1 Jan 2007 Implementation begins regime of
  12ths if no budget

Next stages
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The new Strategic guidelines building in the
Lisbon agenda (1)

• 4.1 Making Europe and its regions a more
  attractive place to invest and work
• Expand and improve transport infrastructures
• Improve the environmental contribution to growth
  and jobs
• Address the intensive use of traditional energy
  sources
• 4.2 Knowledge and innovation for growth
• Increase and improve investment in RTD
• Facilitate innovation and promote
  entrepreneurship
• Promote the information society for all
• Improve access to finance

Priorities
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The new Strategic guidelines building in the
Lisbon agenda (2)

• 4.3 More and better jobs
• Attracting and retaining more people in
  employment and modernising social protection
  systems
• Improving adaptability of workers and enterprises
  and the flexibility of the labour market
• Increasing investment in human capital through
  better education and skills

Priorities
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The new Strategic guidelines building in the
Lisbon agenda (3)

• 5 Taking account of the Territorial Dimension of
  Cohesion Policy
• The contribution of cities to growth and jobs
• Supporting the economic diversification of rural
  areas
• Co-operation cross-border/trans-national/interreg
  ional

Priorities
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I) Expanding and improving transport
Infrastructures

• International and interregional connections offer
  higher returns in terms of competitiveness than
  small scale regional transport infrastructure
• Cohesion Fund focuses on TENs esp.
  environmentally sustainable transport and urban
  transport systems
• ERDF focuses on growth (tourism, attractiveness
  etc)

a more attractive place
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I) Expanding and improving transport
Infrastructures (cont.)

• Priority to projects of European interest (in
  areas eligible under 'convergence') such as
• Cross border links (cf trans-national strand of
  territorial co-operation objective)
• Those overseen by a European co-ordinator (which
  can shorten lapse between planning building)
• Support greater access to rail infrastructure,
  interoperability, ERTMS systems on board/track
• Support Motorways of the sea as alternative to
  long-distance rail and road
• Improve connectivity of land locked territory
  (TEN-T)
• Promote environmentally sustainable urban
  transport

a more attractive place
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IV) Increase and improve investment in RTD

• Strengthen co-operation between businesses and
  between business and public research institutions
  by
• Supporting regional and trans-regional clusters
  of excellence
• Setting up trans-national European technology
  initiatives
• Support RTD activities in SMEs, enable SMEs to
  access RTD services in publicly funded research
  institutions
• Complement 7th Framework Programme for RTD

Knowledge, innovation for growth
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IV) Increase and improve investment in RTD

• Design RTD actions bearing in mind indicators of
• Patenting at regional level
• Employment/mobility of RTD workers, post-grad
  students
• Geographical location of private/public research
  institutions
• Existence of clusters of innovative businesses

Knowledge, innovation for growth
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V) Facilitate innovation and promote
entrepreneurship (1)

• Make regional RTD innovation and education supply
  more efficient and accessible to firms with poles
  of excellence, regional clusters.
• Ensure business support services, technology
  transfer, science parks, ICT centres, incubators,
  clusters, plus more traditional services like
  management, marketing, technical support,
  recruitment, other professional and commercial
  services

Knowledge, innovation for growth
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V) Facilitate innovation and promote
entrepreneurship (2)

• Fully exploit European strengths in
  eco-innovations, introduce environmental
  management systems (cf FP for Competitiveness and
  innovation)
• Promote entrepreneurship, and the creation of new
  firms, spin out and spin off for example through
• Awareness raising, prototyping
• Tutoring, managerial and technological support to
  entrepreneurs-to-be

Knowledge, innovation for growth
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(XII) The contribution of cities to growth and
jobs

• Improve competitiveness of neighbouring cities
  and balance between strongest regions and rest of
  urban structure
• Rehabilitate physical environment,
  preserve/develop heritage
• Promote entrepreneurship, local employment and
  community development
• Strengthen security, economic social and cultural
  integration
• Fight discrimination
• Prepare medium to long term development plan for
  urban regeneration

Territorial cohesion and co-operation
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(XIV) Cross border/trans-national/inter-regional
co-operation

• Closer co-operation should focus on Growth and
  Jobs Agenda
• Actions that contribute to economic and social
  integration, esp. where there are wide
  cross-border disparities
• Improve existing transport and communication
  infrastructure

Territorial cohesion and co-operation
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Bigger challenges in future

• Enlargement will widen development gap
• Globalisation accelerates restructuring
• Effects of technological revolution
• Development of the knowledge economy
• Achieving the Lisbon/Gothenburg agenda
• Ageing population, growing immigration
• Slowing economic growth and economic
  restructuring will increase unemployment
• Europe needs a reinforced Cohesion Policy

Why a European Cohesion policy?
Challenges for The Future
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Metro Valencia
Why a European Cohesion policy?
Challenges for The Future
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Tramway Valencia
Why a European Cohesion policy?
Challenges for The Future
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Mobility scheme Limburg
Why a European Cohesion policy?
Challenges for The Future
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Metro Madrid
Why a European Cohesion policy?
Challenges for The Future
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Metro Bilbao
Why a European Cohesion policy?
Challenges for The Future
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Wolverhampton light rail
Why a European Cohesion policy?
Challenges for The Future
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Athens Metro
Why a European Cohesion policy?
Challenges for The Future
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Athens Tramway
Why a European Cohesion policy?
Challenges for The Future
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Athens Suburban Railway
Why a European Cohesion policy?
Challenges for The Future
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Police motorcycles, Spain
Why a European Cohesion policy?
Challenges for The Future
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LiRa-2 The International Network of Light Rail
CitiesFrom Vision to Action

• LiRa-2 Final Conference
• 15 September 2005

Museum of Science and Industry Manchester, UK