cohesion policy investments in cyprus 2021-2027 · exemplary projects † integrated installations...

COHESION POLICY

Investments in Cyprus2021-2027

European SemesterCountry report - Annex D

AGENDA

1. Introduction

2. Achievements of Cohesion policy to date in Cyprus

3. Future of Cohesion policy (including the envelope and thematic concentration requirements for Cyprus)

4. Investment challenges and Commission priorities for 2021-2027 Cohesion policy funding in Cyprus

5. Conclusions and next steps

European Semester country report, Cohesion policy investments in 2021-2027

Stronger articulation between challenges identified in the European Semester and Cohesion Policy funding

o Strong link in two directions

• Policy analysis guides Funds’ investments• Funds’ investments deliver policy results

o Expected benefits

• More consistency between different policies• Higher impact and better outreach to stakeholders• Transparency and accountability

o Implications for European Semester deliverables

• Stronger focus of the 2019 EC country analysis (CRs) on regional and territorial disparities• Investment needs and guidance to be derived from this analysis


Achievements of Cohesion policy in Cyprus2007-2013 – to be presented by CY

• Cohesion Policy funding – 7.1% of government capital investment (EU average 6.5%)

• ERDF and Cohesion Fund support amounted to EUR 493 million (0.4% of GDP), ESF - EUR 119,8 million

• By area: Environment ( 32%), Enterprise support. (22%), Urban development (16%), Culture and tourism (5%)


• ESIF allocation (EUR million): ERDF 300, CF 295, ESF 114, YEI (Youth Employment Initiative) 36, EAFRD 132, EMFF 40, Total 917

• By area: Environment ( 35%), Low-Carbon Economy (18.3%), Competitiveness of SMEs (16%), Social Inclusion (12%), Sustainable & Quality Employment (10%)

• Total cumulative EU payments by fund (15.03.2019):


Achievements of Cohesion policy in Cyprus2014-2020 - to be presented by CY

• Financial execution – ERDF / ESF – highest execution


Achievements of Cohesion policy in Cyprus2014-2020

Exemplary projects

• Integrated installations for the management of municipal solid waste (IMSW) in Limassol, serving 235 000 people: Total investment - EUR 72.6 million, CF - EUR 46.5 million [2007-13 period]

• Urban regeneration of Limassol town centre: Total investment - EUR 18.4 million, ERDF - EUR 15.6 million [2007-13 period]

• Paphos urban development projects EU Cultural Capital 2017: ERDF EUR 26 million

• Nicosia Information Center / Library of the University of Cyprus: ERDF - EUR 30 million

• Training program for secondary schools’ teachers, training 6 000 educators: ESF EUR 16 million


Achievements of Cohesion policy in Cyprus2014-2020

Cyprus on ESIF Open data 1/3 European Semester country report, Cohesion policy investments in 2021-2027

• High financial execution [2014-20]: Cyprus was 1st Member State in EU in terms of payments made until end of 2018 for ESF (48% of total allocation), ERDF (46% of total allocation) and 3rd for CF (33.3% of total)

• Financial progress at EUand National level :

Cyprus on ESIF Open data 2/3


Future of Cohesion policyEuropean Semester country report, Cohesion policy investments in 2021-2027

Policy objectivesFormer objectives are simplified and consolidated into 5 Policy Objectives:

1. A smarter Europe (innovative and smart economic transformation)

2. A greener, low-carbon Europe (including energy transition, the circular economy, climate adaptation and risk management)

3. A more connected Europe (mobility and ICT connectivity)

4. A more social Europe (the European Pillar of Social Rights)

5. A Europe closer to citizens (sustainable development of urban, rural and coastal areas and local initiatives)

Horizontal issues: partnership; administrative capacity building; cooperation outside the programme area


ArchitectureCommon Provisions Regulation (CPR)

Covers 7 funds, i.e. ERDF, CF, ESF+, EMFF, AMIF, ISF and BMVI

Joint rules for the delivery of the funds

Code of Conduct on partnership remains in force

ERDF/CF regulation

Specific objectives and thematic concentration requirements

ETC regulation

Territorial co-operationincluding externalassistance

ESF+ regulation Enhanced scope (ESF, FEAD, YEI, EaSI,

Health)

Implementing the European Pillar of Social Rights

Specific objectives and thematic concentration requirements

Policy reforms, social innovation and transnational cooperation


Modernising investment Focus on smart, low

carbon and inclusive growth

Link to Semester

Enabling conditions

Flexible

Mid-term review

Adapt to emerging circumstances, e.g.

o Migration

o Changes in economy linked to globalisation, technology and demography

Simpler

Easier and faster to programme

Substantial reduction of administrative costs

Single audit principle and proportionality for low riskprogrammes

Modernising ERDF, CF and ESF+

Future of Cohesion policy ERDF / ESF+ Thematic Concentration in Cyprus


Total allocation for Cohesion Policy: EUR 984 million(ERDF including ETC 458 million; ESF+ 207 million; CF 319 million)

For ERDF: PO1 EUR 195 million (45% of ERDF)(concentration) PO2 EUR 130 million (30% of ERDF)

At least 6% for sustainable urban development EUR 26 million

For ESF+:

CSRs - adequate amount, which may include:At least 25% social inclusion + EUR 52 millionat least 2% material deprivation * EUR 4 millionAt least 10% youth employment * EUR 21 million

(amounts in current prices)


Investment-relevant challengesand Commission priorities

for 2021-2027 Cohesion policy funding in Cyprus


A Smarter Europe (PO1)Investment-relevant challenges

Cypriot economy is characterized by very low public and private investments in research and innovation and very limited interaction between academia and businesses

Innovation capacity of SMEs and export market share remain limited.

Low performance on digital transformation – Supply of e-government and e-commerce below EU average.

Access to finance for SMEs remains challenging; SMEs rely on grants more than on market based instruments.


A Smarter Europe (1)Commission priorities for 2021-2027 funding

• promote business investment in RDI and foster collaboration between public and private research on targeted smart specialization areas

• facilitate business technology transfer, networking, clusters and open innovation

• support activities that allow innovations to reach the market, especially for start-ups and SMES in the digital market

• Support Living Labs and ecosystems to promote the development of innovative solutions



• support the increase of ICT uptake in SMEs

• Increase the range of e-service provision (e-government, e-procurement, e-inclusion, e-health, e learning, e-skilling, e-commerce)

• boost the uptake of ICT by citizens and businesses



• foster the creation of new firms; growth of start-ups / scale-ups and accelerators; develop integrated business advisory services

• facilitate access to finance

• boost internationalization of SMEs through cooperation/clusters; participation in new export markets

• develop skills related to smart specialization areas, in particular reskilling and digital skills


A low carbon and greener Europe – (PO2)Investment-relevant challenges

Building stock in Cyprus is aged; public, residential and commercial buildings show low levels of thermal protection

Heavy dependence on fossil fuels; while opportunities for renewable power generation (particularly, solar) remain underexploited

High level of greenhouse gas emissions (GHG), mainly due to transport and energy production

Cyprus still relies on landfilling of waste; lags behind in separation/recycling/reuse and the circular economy.

Wastewater is still discharged without collection or treatment in many areas; water scarcity

Multiple natural and environmental risks - floods and wildfires, loss of biodiversity, drought


A low carbon and greener Europe (1)Commission priorities for 2021-2027 funding

Improve energy efficiency in:

• public buildings

• private/residential buildings and

• small and medium sized enterprises premises and installations



• Promotion of e small-scale electricity generation based on renewable energy sources, e.g. by renewable energy self-consumers

• Promotion of locally led initiatives, related to RES, notably in rural



• upgrade the water supply networks, water saving measures, water leakage control, water reuse

• waste water collection and treatment

• promote separate collection for waste streams (paper, plastic, metal, glass, bio-waste)

• facilitate transition to circular economy: waste prevention and recycling and sorting, reuse centers and composting and sorting plants

• modernize and upgrade existing recycling infrastructure; awareness measures



• support prevention and preparedness measures for disaster risk management; flood protection, fires, early warning systems, civil protection; land, forest and river basin management measures

• support of green infrastructures, protection of NATURA 2000 areas


A more connected Europe (PO3)Investment-relevant challenges

road and port infrastructures are rather well developed

very low use of green urban transport

High GHG emissions from road transport

Need to promote sustainable urban mobility strategies

Urban road congestion


A more connected Europe Commission priorities for 2021-2027 funding

• Promote a shift towards sustainable and accessible modes of transport, low-carbon collective public transport

• support infrastructure investments into the backbone of the urban transport system, such as light rail or tramlines, in particular in Nicosia

• Support for cycling friendly infrastructure


A Social Europe - EU Pillar of Social Rights (PO4)Investment-relevant challenges

Youth unemployment and share of youth not in employment, education or training is high;

Participation in, and targeting of, activation measures are limited;

Participation in vocational education and training and adult participation in learning remain low;

STEM and ICT skills and a comprehensive lifelong learning approach is missing

Material deprivation and social exclusion rates are above pre-crisis levels and the number of asylum seekers is growing;

Healthcare spending is low and out-of-pocket payments are high

A Social Europe (1)Commission priorities for 2021-2027 funding


Regarding Employment, investments aiming to:

• improve labour market matching, upskilling/reskilling of employees and promote a tailored and inclusive strategy to the labour market integration of the youth, in particular through mapping and profiling of youth not in education, employment or training;

• support active labour market measures accessible to all through the validation of competences, skills and career outplacement and targeted subsidies among others;

• support self-employment, job creation and social innovation by facilitating, access to micro-finance and business development services, including for inactive people.



For Education and Training, investments aiming to:

• improve basic skills attainments, including for disadvantaged groups, and support digital skills’ development and validation;

• improve the labour market relevance of education and training through enhanced monitoring and evaluation, including graduate tracking;

• make vocational education and training more attractive by combating stereotypes;

• support continuous training for educators;

• implement adult learning programmes in consultation with social partners and civil society.



For Social Inclusion, investments aiming to:

• strengthen cooperation between relevant stakeholders for increased outreach and personalisedservices to disadvantaged people and provide social inclusion and long-term integration measures; deliver basic material assistance to people most in need, including migrants and refugees, and community-based services for vulnerable groups;

• increase the provision of affordable high-quality early childhood education and care;

• improve the healthcare system and ensure integration of primary, hospital and long-term care.


A Europe closer to citizens (PO5)Investment-relevant challenges

Remote mountainous and rural areas: population decrease and lack of job opportunities or basic services

Some Urban core areas face depopulation, deterioration of historic urban cores and of economic and social conditions

Need to promote “Clean Energy for EU islands” Initiative fostering the integrated territorial development of urban, rural and mountainous areas


A Europe closer to citizens Commission priorities for 2021-2027 funding

• promote Sustainable Urban Development strategies in the main urban centres, fostering their social, economic and environmental development, cultural heritage and security

• promote integration of smaller urban centres in the urban network, including urban-rural linkages

• regenerate disadvantaged zones/areas in the urban areas

• promote circular economy, sustainable tourism, culture and cultural heritage and alternative economic activities in mountainous and rural areas


Factors for effective deliveryrelevant challenges

Extensive experience in management and implementation of Cohesion Policy; skilled and specialised staff; reliable management and control system and competent managing, certifying and audit authorities

BUT bottlenecks in the design and implementation of ESIF:• inefficiencies in the management cycle (at programme and project level) due to lengthy

procedures (e.g.: project approval and funding)• Complex and lengthy judicial procedures.


Factors for effective delivery (1)Commission priorities for 2021-2027 funding

• Broader use of Financial Instruments and/or contributions to a Cyprus’ compartment under InvestEU for revenue-generating and cost-saving activities

• Have in place a clear division of responsibilities in the programming, management and implementation cycle

• Improve public procurement performance, in particular by optimising the number of contracting authorities, while at the same time ensuring sufficient administrative capacity necessary for the effective administration and implementation of the Funds and its necessary support


Factors for effective delivery (2)Commission priorities for 2021-2027 funding

• Ensure simplification and transparency of selection and implementation procedures

• Put in place improved and more efficient measures to prevent and address conflict of interest, fraud and corruption

• Strengthen Public Employment Services' effectiveness and enhance autonomy based on a multi-annual strategic roadmap

• Strengthen authorities' capacity to develop and implement training policy measures

• Promote social dialogue and social partners' capacity

Conclusion and next steps

o Commission ready to start informal dialogue - important to make as much progress aspossible in 2019 and 2020

o Engage from the start in dialogue with all relevant stakeholders (Code of Conduct!)

o Member State programming plans by end of June 2019 - roadmap

o Technical seminar with Managing Authorities on 14 June 2019

o Joint objective: adopt PA and programmes by end of 2020


cohesion policy investments in cyprus 2021-2027 · exemplary projects † integrated installations...

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