en regional policy european commission third progress report on cohesion 17 may 2005 towards a new...
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Regional Policy EUROPEAN COMMISSION EN Third Progress Report on Cohesion EN 3 Disparity levels Disparities in GDP per head between EU-25 still considerable (2003): Latvia – 41% of EU average Ireland – 132% of EU average Luxembourg – 215% of EU average New Member States – below 90% of EU average Part ITRANSCRIPT
ENRegional PolicyEUROPEAN COMMISSION
Third progress report on Third progress report on cohesion cohesion
17 May 200517 May 2005
Towards a new partnership for growth, jobs and cohesion
Regional PolicyEUROPEAN COMMISSION
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Third Progress
Report on Cohesion
The report contains 3 partsThe report contains 3 parts
1. Analysis of economic and social disparities in the enlarged EU
2. EU cohesion policy and the Lisbon Strategy in 2000-2006
3. The future of cohesion policy and the Growth and Jobs Agenda
Structure
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Disparity levelsDisparity levels
Disparities in GDP per head between EU-25 still considerable (2003):•Latvia – 41% of EU average•Ireland – 132% of EU average•Luxembourg – 215% of EU average•New Member States – below 90% of EU average
Part I
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0
50
100
150
200
250
lu ie dk at nl uk be se fr fi de it es cy gr sl pt mt cz hu sk ee pl lt lv bg ro tr us
EU25=100
GDP per head in PPS in 2003
Part I
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Regional disparitiesRegional disparities
•Regional disparities remain high (2002)•189% of the EU-25 average in the 10 most prosperous regions•36% in the 10 least prosperous ones. •Over 1/4 of the EU’s population in 64 regions have GDP per head below 75% of EU average. •90% of population in the new Member States living in regions with GDP per head below 75% of EU average •13% of population in EU-15 living in regions with GDP per head below 75% of EU average
Part I
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50 - 75
75 - 90
90 - 100
100 - 125
125
Index, EUR-27 = 100
<50
Regional Disparities in EU27GDP per head in % in PPP (2002)
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1.48 – 2.182.18 – 2.75
2.75 – 3.62
>= 3.62
no data
EUR-27 = 2.25
Regional GDP Growth 1995-2002 Average growth rate in %
< 1.48
HU = 1995-2001
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Employment ratesEmployment rates
•Employment rates – well short of the 70% Lisbon target •62.9% for the EU25 in 2003•Denmark, Sweden, the Netherlands and the UK – only MS with 70% •22 million additional jobs needed to meet 70% target •In the new Member States, 7 million additional jobs needed to meet 70% target (increase of ¼)•200 of the 254 EU regions are below the target rate•almost 15% of the population lives in regions where the rate is below 55%•employment rates remain low among most of the least prosperous regions.
Part I
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99
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Regional Employment Rates 2003Employed persons between 15 und 65 in %
EUR-27 = 62.5
< 55
60 - 65
65 - 70
70 - 75
>= 75
55 - 60
no data
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Productivity: recent improvementsProductivity: recent improvements
•strong productivity growth in recent years but still noticeable differences:
– less than 30% of the EU25 average in Poland and the three Baltic states
– 150% in Luxembourg and Ireland.
•productivity was below 25% of the EU average in 15 regions•but…link between productivity and GDP•productivity exceeds the EU average regions with above-average per capital GDP
Part I
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EUR-27 = 1.92
< 0.45
0.8 – 1.16
1.16 – 1.88
>= 1.88
0.45 – 0.8
no data
Regional Expenditure in Research and Development 2002 in % of GDP
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1212
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Trends in disparitiesTrends in disparities
•since the mid-1990s, average EU growth growth has average just over 2% per year•regional disparity levels are higher than national disparities but are also falling •10% of EU25 population living in poorest regions (2.2% of total GDP in 2002; 1.5% in 1995)•still high levels of internal disparities
Part I
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Index EU 25= 100
Geographical Eligibility for Structural Funds Support 2007-2013 Draft April 2005, GDP/head 2000-2001-2002
Objective 'RegionalCompetitiveness and Employment'Phasing-in regions, "naturally" above 75%
Convergence objectivestatistically affected regions
Objective 'RegionalCompetitiveness and Employment'
Convergence objectiveRegions > 75% in EU25)
Source: Eurostat
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Cohesion policy and the Lisbon AgendaCohesion policy and the Lisbon Agenda
•Growing orientation of SF programmes towards Lisbon objectives (above 50% in some programmes)
– significantly higher in relatively more prosperous regions but lower in the less developed regions
•Decentralised delivery system key to develop synergies with Lisbon• More ownership of the Lisbon strategy through cohesion policy
Part II
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Mid-term reviewMid-term review
•Mid-term evaluations – more emphasis on Lisbon•Allocation of the performance reserve. Over €8 billion allocated to successful programmes or priorities•Objective 1 – continues to be oriented towards transport and other infrastructure
– some Member States with large Objective 1 areas - more emphasis seems to have been placed on research and innovation
•Objective 2 – more emphasis on economic growth and competitiveness •Both Obj. 1 and 2 - education and vocational training continues to be important
Part II
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Spring European Council – March 2005Spring European Council – March 2005
•Explicit endorsement of importance of cohesion policy as an instrument for achieving the Lisbon strategy.
Key recommendations:1.Community resources, including cohesion policy, should be mobilised for 3 dimensions of the strategy – economic, social and environmental.2.Regional and local actors should take greater ownership of the strategy 3.Greater synergies between Community funds and the EIB in R&D
Part III
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Spring European Council – March 2005 Spring European Council – March 2005 (cont.)(cont.)
Key recommendations (continued):1.Reduction in the general level of state aid 2.Investment in infrastructure3.Create more jobs with more active employment policies. 4.Integrated guidelines to be issued at Community-level;
• MS to establish national reform programmes on growth and jobs
Part III
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Community Strategic Guidelines 2007-2013Community Strategic Guidelines 2007-2013
• Commission proposals for 2007-2013 - more strategic approach targeted on growth and jobs•Strategic Guidelines established at Community level by Council decision•Basis for National Strategic Reference Framework - to define clear priorities for MS and regions
– synergies between cohesion policy and the Lisbon strategy
– consistency with the Broad Economic Policy Guidelines and the European Employment Strategy
•Consistency with other Community policies and priorities would be enhanced
Part III
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TimetableTimetable
May 2005: Commission proposal on 2007-2013 Strategic Guidelines
June 2005: Decision by Council on Financial PerspectivesDraft Community Strategic Guidelines adopted by Commission
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
Next stages