ec presentation.bucharest 05.11.2012

7/30/2019 EC Presentation.bucharest 05.11.2012

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Position of the Commission

Services on the development of

Partnership Agreement

and programmes in

ROMANIAfor the period 2014 2020

Bucharest, 5 November 2012


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Main Economic challenges

Economic slowdown, fuelling budget deficit Low employment rate: 62,8% Shrinking FDI flows Widening regional disparities Structural weaknesses on competitiveness

factors

G

D

P

&

B

U

D

G

E

T

D

E

F

I

C

I

T


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Main Challenges

Economic slowdown, fuelling budget deficit Low employment rate: 62,8% Shrinking FDI flows Widening regional disparities Structural weaknesses on competitiveness

factors

G

D

P

&

B

U

D

G

E

T

D

E

F

I

C

I

T

-10.0

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

2007 2008 2009 2010 2011 2012* 2013*

Economic Slowdown

GDP growth

budget deficit

G

D

P

&

B

U

D

G

E

T

D

E

F

I

C

I

T


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Europe 2020 headline targets Current situation inRomania

National 2020 targetin the NRP

3% of expenditure on research anddevelopment

0,47% 2%

20% greenhouse gas (GHG) emissionsreduction compared to 1990

+9% (2010 emissionscompared to 2005)-7% (2020 emissionscompared to 2005

+19% (national bindingtarget for non ETS sectorscompared to 2005)

20% of energy from renewables 23,4 24%

20% increase in energy efficiency Under revision 10 Mtoe

75% of population aged 20-64 should beemployed

62,8 (2011) 70%

The share of early school leavers should beunder 10%

17,5% (2011) 11,3%

At least 40% of 30-34 years old should havecompleted a tertiary or equivalent education

20,4% (2011) 26,7%

Reducing the number of people at risk of poverty or exclusion by 20 mill. In the EU

-788,000 (2011) -580,000

Main challenges Global Vision


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Cohesion Policy in Romania

Extremely low absorption rate (


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Low labourmarket

participation

Underdevelopedinfrastructure

endowment

Low competitivenessand weak RDI system

Inefficient use of natural resources

Weakadministration

and publicgovernance

MainChallenges:


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Low labourmarket

participation

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 particularBottlenecks 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

Challenges

Total Employment rate (20-64 years) and youthemployment rate (20-29 years)

Total Unemployment rate and youthunemployment rate (15-24 years)

YearYear


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Low labourmarket

participation

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

Challenges

Early leavers from education and training, by country (%) - 2011

Data for 2011 for ME, US and JP not available


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Improving human capital through higher employmentand better social inclusion and education policies

Reducing early school leaving targetingparticularly students from rural anddisadvantaged areas

Improving quality, efficiency and labourmarket relevance of education and training

Promotion and diversification of life-longlearning (LLL) targeting mainly low skilled

Upgrading and modernising education andtraining infrastructure

2. Fundingpriority: Improve

access to,participation in and

quality of education and

training

Low labourmarket

participation


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Expanding, diversifying and improving accessto social and healthcare services in particularfor vulnerable groups and isolated localities

Modernisation of the health system, includingthrough the rehabilitation of infrastructures

Fostering community-led local developments in

rural areas, to promote social inclusion Diversification of activities in coastal andmaritime areas affected by the restructuring of the fisheries sectors

3. Fundingpriority:

Promoting socialinclusion, inparticular by

enhancing accessto healthcare andsocial services

Low labourmarket

participation


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Creating new employmentopportunities in agricultural and non-agricultural sectors

Promoting acquisition of new skills forfarmers and non-farmers

Fostering community-led localdevelopment initiatives for increasinggrowth and employment and retainingpopulation

Elements of particular

relevance for rural

areas

Low labourmarket

participation


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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

equipmentLow international accessibility and regional connectivity:

Low motorway endowment hampers attractiveness for FDIs andcontributes to congestion and fatalities rate

Untapped potential of inland navigationLow broadband coverage

Low broadband take-up and low rate of internet usage Rural areas more affected


endowment

Challenges


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Developing modern infrastructure for growth and jobs

Streamlining the railway system, upgradingthe core networks, including ERTMSinvestments and modernising the railwaycompanies;

Extending and upgrading the road andmotorway network, improving connectivity

of major urban agglomerations Supporting other modes andinterconnecting points, in particular tofoster navigability of the Danube

1. Fundingpriority: Building

accessibility of growth poles to theinternal market by

investing in theTEN-T network


endowment


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Developing modern infrastructure for growth and jobs

Extension of broadband infrastructures inmarket failure areas, in particular ruralareas

Promoting the extension of New GenerationAccess in case of market failure

Developing monitoring and mapping tools

Fostering the use and demand for ICT,through development of products andservices and e-commerce and thepromotion of ICT training

2. Fundingpriority:

Enhancing accessto and use andquality of ICT


endowment


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Challenges

Fragile economic structure, largely composed of SMEs: Specialised in low added value areas Low productivity

Obstacles to developmentTerritorial 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



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Promoting economic competitiveness and localdevelopment

Fostering innovation and transfer of knowledge, including through thedevelopment of clusters and providingtailored access to services;

Supporting the life cycle of enterprises:from the setting-up and during their

lifetime; Improving the business environment andfacilitating access to public funding (one-stop-shop mechanism)

1. Fundingpriority:

Supportinginnovation and

competitiveness of economic operators

and improvingbusiness

environment



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Promoting entrepreneur skills for potentialand existing managers Facilitating the reconversion and

diversification of agricultural activities, bysupporting the conditions for localdevelopment, including through investmentsin local infrastructures

Promoting supply structures in the fisheriessector to support producer groups

Diversifying the economic base e.g. betterexploit the potential of the blue economy

2. Fundingpriority: Promoting

entrepreneurship,including in rural,

maritime & fisheriesareas and improving

the economicenvironment in rural

& coastal areas,including related

local infrastructure



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Supporting access to tailoredservices for SMEs, including toaccess international markets;

Promoting access to finance,through financing engineeringinstruments;

Easing access to microfinance, inparticular in agricultural sectorand for young people

3. Fundingpriority: Smoothing

access to financeand advanced

business servicesfor SMEs



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Supporting public research, focussing onkey sectors stemming from demand drivennational strategy and excellence centres

Promoting private research, tacklingcurrent impediments and facilitating thecommercialisation of research outcomes

Enhancing the capacity of Romanian R&Dinstitutions to integrate EU andinternational networks

4. Fundingpriority: Boosting

demand driven R&Dcapacity and

infrastructures



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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 developmentHigh 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

Challenges



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Optimising the use and protection of natural resourcesand assets

Increasing energy efficiency Supporting sustainable urban

transport strategies andinfrastructures

Promoting carbonsequestration through agro-forestry systems

1. Fundingpriority:

Promoting energyefficiency and low-

carbon economyand strategies



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Supporting the nationaladaptation strategy

Promoting risk preventioncapacity

Supporting risk managementskills and structures

2. Fundingpriority: Reducing

vulnerability torisks, supporting

adaptation toclimate change anddeveloping disaster

managementsystems



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Continuing water and wastewaterinvestments

Treatment of polluted soils Promotion of agricultural practices

improving buffer and filter function

of soils Preserving and enhancing

biodiversity

3. Fundingpriority:Protecting

environment andbiodiversity by

valorising natural

sites andimplementingacquis relatedinvestments



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Ineffectiveness of the public administration Lack of policy making capacity Overregulated environment prejudicing business environment

and public investment capacityRooted 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 ownershipInefficiency and poor performance of the judiciaryScattered e-government initiatives

Ineffective as not mainstreamed in holistic modernisationschemes

=> Minimum endogenous conditions to efficiently makeuse of external assistance, wasted in vain, are not met

Challenges

Weak administrationand public

governance


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Modernisation and reinforcement of the nationaladministration and of the judiciary

Increasing efficiency and effectiveness of theadministration, through streamlined and simplified

procedures Reinforcing coordination and policy making capacitiesand empowerment, including by improved recourseto partnership mechanisms

Enhancing the professionalism, independence andattractiveness of the administration

Tackling through structural endogenous reformsgovernance deficiencies

Supporting the recommendations issued from theCooperation and Verification Mechanism (CVM)

1. Fundingpriority:Enhancing

institutionalcapacity and anefficient publicadministration

Supporting the development of e-governmentinstruments and measures, as part of underlyingcomprehensive ministerial modernisation schemes

2. Fundingpriority:

StrengtheningICT applications

for e-government

Weak administrationand public

governance


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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 programmesand the EU strategy for the Danube Region (EUSDR) required


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Ex-ante conditionalitiesAim at ensuring effective and efficient use of EU Funds1. Strategy for reinforcing administrative capacity2. Comprehensive and multimodal transport master plan

3. Adoption of national R&I strategy for smart specialisation4. National strategy for poverty reduction5. Effective public procurement system6. National / regional strategy(ies) for health7. Strategy for reducing early school leaving

8. Modernisation and strengthening of labour market institutions9. Improved data collection for fisheries management10. Reliable recording system for monitoring State aid expenditure11. Agricultural strategy and functional cadastre system12. Advisory capacity in agriculture and forestry sectors

13. Strategic plan for aquaculture


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Effective programme design & deliveryDrawing lessons from the current period

Programmes supporting sectoral strategies, anchored inoverarching mid-term development strategic policy

Preparation of pipeline of mature projects, support toreinforce the beneficiary capacity and streamlineprocedures

Enhanced coordination (ACIS), possibly extended to otherFunds (EAFRD, EFF, ECT, Connecting Europe Facility)

Overcome weaknesses in the management and controlsystems

Any management model cannot substitute reformsrequired to overcome current shortcomings


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Next steps: the way forwardNegotiation process for Partnership Agreement (PA) inRomania

Positionpaper sentto Romania

Launchevent

Informaldialogue

withRomania(workinggroups)

Romaniasends PA

through SFC

observationssent to

Romania

2012 2013

CPRadopted

October November December

ec presentation.bucharest 05.11.2012

Documents