workshop legal framework eu structural funds 2007 -2013

Workshop Legal Framework EU Structural Funds 2007 -2013

Riga, 4 December 2006

CHALLENGES FOR THE NEW PROGRAMMING PERIOD2007-2013

Gerard van Gaalen

Development Agency East Netherlands department European Affairs

phone: +31 26 384 42 22

www.oostnv.com

Riga 4 december 2006 |

2

Pleased to meet you !


3

Mission Statement

Taking initiatives and supporting activities that lead to a stronger and more vibrant economy in the provinces of Gelderland and Overijssel.

The end goal is promoting a sustainable labor market.


4

Where do we add value?

BusinessesGovernment

Knowledge institutes


5

Principals and shareholders

The principals and shareholders of the Development Agency East Netherlands NV are:

• The Ministry of Economic Affairs (EZ) (57,62%) • The Province of Gelderland (33,56%) • The Province of Overijssel (8,82%)


6

East Netherlands in figures

Netherlands East Netherlands Gelderland Overijssel

Population (1 August 2006) 16,336.346 3,091,723 1,976,161 1,115,562

Land surface (km2) 41,528.03 8,557.36 5,136.51 3,420.85

Population density per km2 393 361 385 326

Labor force (age 15-64), 2005 7,401,000 1,365,000 870,000 495,000

- primary education (%), 2005 24.4 25.4 25.7 25.1

- secondary education (%), 2005 44.3 45.5 44.6 47.4

- higher education (%), 2005 31.3 28.9 29.7 27.5

GDP (* million €), 2003 476,349 76,053 48,319 27,734

GDP per head (* 1,000 €), 2003 29 25 25 25

Number of jobs, 2006 6,975,400 1,246,400 789,400 457,200

Number of R&D jobs, 2003 85,987 15,935 11,162 4,773

Source: CBS/Statline, October 2006


7

New Programme period 2007-2013 cornerstones

• New Legislation• Council Regulation 1083/2006: General Provisions• Council Regulation 1080/2006: ERDF • Council Regulation 1081/2006: ESF • Council Regulation 1084/2006: Cohesion Fund• Council Regulation 1082/2006: European Grouping of Territorial cooperation• Council Regulation 1085/2006: Instrument for Pre-Accession (IPA)• Commission Regulation Implementing Regulation


8

Where do ‘New programme period 2007-2013cornerstones’ we add value?

• Budget Allocation

• Allocation for cohesion policy: Council Dec. 2005

• Allocation by Objective, Fund and Member State: Comission Decisions July 2006

• Community Strategic Guidelines

• Adopted October 2006

• Aide Mémoire for the desk officers

• Manual for negotiating and implementing programmes


9

New programme period 2007-2013 first objective

• CONVERGENCE AND COMPETITIVENESS

• Regions less than 75% of EU 25 average GDP/head

• States with less than 90% of EU 25 average GNI/head (Cohesion

Fund)

• Statistical effect: regions with a GDP/head below 75% of EU15 and

above 75% of EU25

• Special programme for outermost regions


10

New programme period 2007-2013 second objective

• REGIONAL COMPETITIVENESS AND EMPLOYMENT

• Cohesion policy at the service of all other regions outside

Convergence in the EU – no community zoning

• Two elements:

1. Employment based on European Employment Strategy (ESF)

2. Regional competitiveness (ERDF)

Lisbon strategy

Innovation and the knowledge economy


11

New programme period 2007-2013 third objective

• EUROPEAN TERRITORIAL COOPERATION

• The succes of INTERREG III, community added value

• Cross border co-operation (incl. sea borders)

• Inter-regional co-operation

• Transnational co-operation

• Networking and exchange of experience

• External cross-border co-operation - linked to new European neighbourhood instrument


12

Objectives, Structural Funds and instruments 2007-2013

ERDF ESFESFCohesion

FundConvergence

Regional Competitiveness and Employment

European territorial Cooperation

ERDF

ERDF

ESFESF

infrastructure, innovation,investments

etc.

vocational training,

employmentaids etc.

MemberStates with aGNI/head below 90%

environmental and transport infra-

structure, renewable energy

all Member States and regions

Structural Funds and instruments


13

Geographical concentrationRegions below or close to 75% threshold

Guyane (F)

GuadeloupeMartinique Réunion

Canarias (E)

Açores (P)

Madeira

EU-25 = 100

regions below the 75% (EU-25) threshold

statistical effect (below 75% of EU-15 but above 75% of EU-25)

regions losing Obj. 1 status due to growth

other regionsBased on GDP data availabled.d. 12/02/2004

0 km100 500

gRe oi GI Sge oi GI SR

© EuroGeographics Association for the administrative boundaries

below 75% in EU25

statististical effect below 75% in EU15 above in EU25

"naturally" above 75% because of growth

other regions

Index EU 25= 100

Source: Eurostat

Art. 5+6 Gen.Reg.

GDP/head average 1999-2000-2001


14

Cohesion Fund 2007-2013: Eligible Member States

Allocation: EUR 61.56 bn. in 2004 prices

Cohesion Fund 2007-2013

Transitional support


15

European Territorial Cooperation 2007-2013

Allocation: EUR 7.75 bn. for cross-border, transnational

and interregional cooperation

Cross-border areas


16

Budget new programming period 2007-2013

• Total budget € 307.6 billion (35.7% of EU budget)

• Three new Objectives

• Convergence: 81.7% of total (€ 251.3 billion)

• Regional Competitiveness and Employment: 15.8% of total (€ 48.8 billion)

• European Territorial Cooperation 2.5% of total (€ 7.5 billion)

• (all figures in 2004 prices)


17

Programmes and Instruments

Eligibility Priorities Allocations

Cohesion Policy2007-2013

3 Objectives

Budget: EUR 307.6 bn(0.37% of EU-GNI)

(2004 prices)

Convergence objective 81.7% (EUR 251.33 bn)

Regional and nationalprogrammes ERDFESF

Cohesion Fundincluding phasing-out

Regions with a GDP/head75% of average EU25

Statistical effect:Regions with a GDP/head

75% of EU15 and >75% in EU25

Member StatesGNI/head 90% EU25 average

•innovation;•environment/ risk prevention; •accessibility; •infrastructure; •human resources; •administrative capacity

•transport (TENs); •sustainable transport; •environment; •renewable energy

57.6% EUR 177.29 bn

4.1%EUR 12.52 bn

20.0%EUR 61.42 bn

Regional competitiveness and employment objective 15.8% (EUR 48.79 bn.)

Regional programmes (ERDF) and national programmes(ESF)

Member States suggest a list of

regions (NUTS I or II)

"Phasing-in"Regions covered by objec-

tive 1 beween 2000-06 and not covered by theconvergence objective

•Innovation•environment/risk prevention•accessibility•European Employment Strategy

15.5%EUR 38.4 bn

3.4%EUR 10.38 bn

European territorial co-operation objective 2.44% (EUR 7.5 bn.)

Cross-border and transnational

programmes andnetworking (ERDF)

Border regions and greater regions of

transnational co-operation

•innovation;•environment/ risk prevention; •accessibility•culture, education

of which:77.6% cross-border18.5% transnational 3.9% interregional + ENPI


18

Convergence and Competitiveness and Employment ObjectivesRegions and population covered in EU25/27 (December 2005 figures)

EU25 EU27

Number ofregions

Population

million % of EU

Number ofregions

Population

million % of EU

Competitiveness and Employment Objective

Phasing-in Regions

Other Regions

Total

Convergence Objective

Convergence Regions

Statistical Effect Regions

Total

70 124 27.3 84 153.7 31.7

16 16.4 3.6 16 16.4 3.4

86 140.4 30.9 100 170.1 35.1

13 19 3.913 19 4.0

155 295.2 61.0

168 314.3 64.9

155 295.2 64.9

168 314.3 69.1

4.2


19

EU Cohesion Policy 2007-2013: Allocation by Objective and Member Statein 2004 prices


20

New elements of programming period 2007-2013• General: 3 instead of 7 objectives, 3 instead of 5 funds, mono-fund programmes, no zoning outside “Convergence” objective

- Three Funds: ERDF, ESF and Cohesion Fund

• No more Community Initiatives

• Programming: 2 steps instead of 3

• No Programming Complement, no measures

• Stronger focus on strategic approach- National Strategic Reference Framework (NSRF)- clear link with National Reform Programmes (= national Lisbon strategies)- Earmarking- clear link with Community Strategic Guidelines

• Cohesion Fund integrated in programming approach- Exception for major projects (above 50 million Euro) and environment (above 25 million Euro)


21

New elements of programming period 2007-2013

• Stronger cooperation with other financial instruments (EIB, EIF)– JASPERS– JEREMIE– JESSICA

• EC Initiative: Regions for Economic Change– Tool for better exchange of best practices

• Support to housing under certain conditions

• Urban issues: subdelegation to to urban authorities possible

• Further decentralisation to Member States and regions– Shared management between the European, national,

regional, urban and local level


22

New elements of programming period 2007-2013

• Higher intervention rates (up to 85%) - Differentiation between different groups of countries

Additionality only to be verified for convergence objective

• Financial management at priority axis level, allows greater

flexibility for programme adaptations

•Eligibility of expenses defined according to national rules

(with a few exceptions)

•Control system: proportional if Community cofinancing below 33%

and EUR 250 million of total costs

•SFC 2007: electronic data exchange for all documents


23

Structural funds 2007-2013 : Differentiated intervention rates

(1) Member States whose average per capita/ GDP below 85% between 2001-03

CZ, EE, GR, CY, LV, LT, HU, MT, PL, PT,

SI, SK, BG, RO85% 85%

CriteriaMember States,

regionsERDF,

ESFCohesion

Fund

(2) Member States other than those under (1) eligible to the Cohesion Fund

ES 80%/50%* 85%

* The first rate concerns regions eligible under the "Convergence"; the second one those under the "Regional Competitiveness and Employment" objective** If applicable

(3) Member States other than those under (1) and (2)

AT, BE, DK, DE, FR, IR, IT, LU, NL, SE,

SF, UK75%/50%* -

(4) Outermost regions referred to in Article 299 (2) of the Treaty regions in ES, FR, PT 85% 85%**


24

Possible growth and employment effectsduring programme period 2007-2013

• Growth

Major gains in terms of additional GDP of

approximately 10% in most new MS by 2013 (8.9% in

Poland, more than 10% in Baltic States).

• Productivity

Gains vary between 2.3% (Slovakia; Hungary) and 7%

(Bulgaria; Romania).

• Employment

Overall 2.5 million new jobs (between + 4% to 8%).


25

Strategic guidelines, programming and follow-up

Community's strategic guidelines on cohesion proposed by the Commission,

adpoted by the Council, assent by the European Parliament

11

National strategic reference frameworkproposed by the Member State in applying the

partnership principle; reflects on the Union‘s orientations, lays down a national strategy and its programming;

finally decided by the Commission

22

Operational Programmesone programme by fund and Member State

or region, description of priorities, management and financial sources; proposed by Member State or region;

finally decided by the Commission

33

Programme management and project selectionby Member States and regions; “shared management“

principle = concertation with the Commission44

55Strategic follow-up and annual debate

by the European Council in Spring, based on anannual report of the Commission and Member States


26

Timetable

• 1 August 2006: Structural Funds Regulations enter into force

• 6 October 2006: Council approves Community Strategic

Guidelines (CSG)

• 10 October 2006: CSG enter into force

• October/November 2006: Member States submit National

Strategic Reference Frameworks and Operational

Programmes

• 2007: Commission adopts Operational Programmes

(about 350)


27

Points for attention for (new) member states

1. Public procurement - focus on implementation of EU compliant legislation: use TA

2. Strengthen inter-ministerial coordination - cooperation between Managing authorities, Certifying authority, Audit authority and Intermediate Bodies

3. Separation of financial management and control tasks management checks vs. independent sample checks

4. Adequate accounting systems - shorten delays with positive effect on absorption capacity

(N+2/N+3 rule) - SFC 2007: submission via electronic data exchange

5. Recruitment and training of additional staff also for intermediate bodies and regions


28

Points for attention for (new) member states

6. Clear definition of priorities keep flexibility but avoid «grey zones» Clear definition of areas of intervention of OP’s, Funds and priorities (cross financing)

7. Project pipeline reserve budget for project preparation 8. Partnership principle during programming and implementation national, regional, local, social partners, NGO's

9. Operational and reliable monitoring systems need for standardised monitoring tables assessment of N+2/N+3 risks

10. Careful planning of national co-financing integrate EU into national budget


29

Convergence objectives (1)

1. Research and technological development (R&TD), innovation and entrepreneurship

2. Information society

3. Environment

4. Prevention of risks

5. Tourism


30

Convergence objectives (2)

6. Transport investments

7. Energy

8. Education investments

9. Health

10. Direct aid to investment in SMEs

workshop legal framework eu structural funds 2007 -2013

Documents

erdf council regulation

esf council regulation

programmesnew programme

new programming period

competitiveness regions

eu25 special programme

objective convergence

budget allocation allocation