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EUROPEAN COHESION POLICY AT A GLANCE Introduction to the EU Structural Funds. Sergej Muravjov. Ctibor Kostal. www.governance.sk. www.transparency.lt. EU Cohesion policy: background. 1957 – Treaty of Rome. 1958 – Setting up of the European Social Fund (ESF).

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  1. EUROPEAN COHESION POLICY AT A GLANCE Introduction to the EU Structural Funds Sergej Muravjov Ctibor Kostal www.governance.sk www.transparency.lt

  2. EU Cohesion policy: background 1957 – Treaty of Rome 1958 – Setting up of the European Social Fund (ESF) 1962 – Creation of the Agricultural Guidance and Guarantee Fund (EAGGF) 1975 – Creation of the European Regional Development Fund (ERDF) 1986 – The Single European Act lays the ground for EU cohesion policy 1988 – Overhaul of the operation of then Solidarity Funds (SF now) 1992 – Treaty of European Union establishes cohesion as one of its objectives 1993 – The Council creates a new financial instrument for Fisheries

  3. EU Cohesion policy at a glance The Cohesion Policy programme for 2007-2013: €347 billion or 35.7 % EU budget Three financial instruments: European Regional Development Fund European Social Fund Cohesion Fund

  4. EU Cohesion policy at a glance The Cohesion Policy has three objectives: Convergence objectivefor regions with a GDP below 75% of the Community average (81,5% of the Cohesion policy funds); Regional competitiveness and employment objectivefor all other regions (16% of the Cohesion policy funds); European territorial cooperation objective for cross-border, transnational and interregional co-operation (2,5% of the Cohesion policy funds).

  5. Convergence objective The goal: to promote growth-enhancing conditions and factors leading to real convergence for the least-developed Member States and regions. 17 new member states and their 84 regions, 154 million people - with per capita GDP at less than 75 % community average “Phasing-out” regions – 16 regions, 16.4 million people – with per capita GDP only slightly above the threshold The Splits – €282.8 billion Convergence regions: €199.3 billion“Phasing-out” regions: €14 billionThe Cohesion Fund (15 old EU states): €69.5 billion

  6. Regional Competitiveness and Employment objective The goal: to strengthen the competitiveness and attractiveness, as well as employment, through anticipation and promotion of economic change and adapting the workforce and investing in human resources. The Splits – 55 billion Euros 19 member states 168 regions – 43.6 billion Euros, 314 million people 13 “phasing-out” regions – 11.4 billion Euros, 13 regions, 19 million people

  7. 166 %the financial assistance to new EU member states is 166 % higher than in the previous programming period; 30 % the old EU15 states will receive 30 % less aid.

  8. The Cohesion Fund Member States with a Gross National Income less than 90% of the Community average receive a total of €69.5billion for investment programmes in the fields of environment and trans-European transport networks

  9. European Territorial Co-operation objective The goal: to strengthen cross-border co-operation through joint local and regional initiatives, trans-national co-operation aimed at integrated territorial development and interregional co-operation and exchange of experience. The Splits – 8.7 billion Euros 181.7 million people / 13 transnational co-operation areas Cross-border co-operation – 6.44 billion EurosTransnational co-operation – 1.83 billion EurosInter-regional co-operation – 445 million Euros

  10. Objectives, structural funds & instruments

  11. EU Cohesion policy: funds available Source: European Commission

  12. EU Cohesion policy: allocation by programs

  13. EU Cohesion policy: allocation by states

  14. ImportantStages • Setting up rules – regulations • Regulations introduced by the EC • Council WG – Member States • Programming • Important stage for the partners (NGOs, local authorities etc.) • Sets up national rules, priorities, management authorities etc. • NSRF and OPs • Implementation • Calls • Different types of projects • Evaluations • Monitoring

  15. Key actors in SF • EC • DG Regio • Member States • Managing authority • Intermediate bodies • Certifying authority • Audit authority • Social partners, local and regional governments • Other partners – NGOs • Final beneficiaries

  16. Role of NGOs NGOs should participate in the followingstages: • Programming • Active role in designing national priorities and management system • Implementation • As final beneficiaries • As members of selection committees • Evaluation • Taking part in required evaluations • Independent evaluations • Monitoring • As member of Monitoring Committee • Independent monitoring - watchdog

  17. Legislative background • Period 2007 to 2013 • Three main regulations: • Regulation (EC) No 1083/2006 of 11 July 2006 laying downgeneral provisions on the European Regional Development Fund, theEuropean Social Fund and the Cohesion Fund • Regulation (EC) No 1080/2006 of the European Parliament and of theCouncil of 5 July 2006 on the European Regional Development Fund • Regulation (EC) No 1081/2006 of the European Parliament and of the Council of 5 July 2006 on the European Social Fund • Proposed by the EC • Council working group – Structural Actions

  18. Regulation – general provisions on ERDF, ESF and CF • Reg. has 73 recitals (!) • Sets basic principles and rules for SF in 2007-13 such as: • partnership • objectives for contributions • eligibility criteria • management • monitoring • evaluation • programming • financial resources available • criteria for financial allocations

  19. Regulation – general provisions on ERDF, ESF and CF Partnership principle – Art.11 Each Member State shall organize, where appropriate and in accordance with current national rules and practices, a partnershipwith authorities and bodies such as: (a) the competent regional, local, urban and other publicauthorities; (b) the economic and social partners; (c) any other appropriate body representing civil society, environmentalpartners, non-governmental organizations, andbodies responsible for promoting equality between menand women. Each Member State shall designate the most representative partners at national, regional and local level and in the economic, social, environmental or other spheres (hereinafter referred to as partners), in accordance with national rules and practices... The partnership shall cover the preparation, implementation, monitoring and evaluation of operational programmes.

  20. Regulation – general provisions on ERDF, ESF and CF • Objectives • Reducing economic, social and other disparities • Objectives 1, 2, 3 • Eligibility • For each objective – geographical eligibility • Obj.1 = GDP per capita is less than 75% of the EU average • Obj.2 = other

  21. Regulation – general provisions on ERDF, ESF and CF Principles of assistance = 4C • Complementarity - SF provide assistance which complements national actions • Consistency - assistance from the SF is consistent with the activities, policies and priorities of the EU • Coordination – EC and MS ensure the coordination between the assistance from the Funds, the EAFRD, the EFF and the interventions of the EIB and of other existing financial instruments • Compliance – operations financed by SF comply with the provisions of the Treaty and of acts adopted under it

  22. Regulation – general provisions on ERDF, ESF and CF Management of SF • Set up by MS – designation of authorities • Managing authority • Management and implementation of Ops • Any public or private body designed by the MS • Intermediate bodies • Certifying authority • Draws up and submits certified statements of expenditures and applications for payments • Audit authority • Carries out audits verifying the effective functioning of the management and control system of OPs

  23. Regulation – general provisions on ERDF, ESF and CF Monitoring • Monitoring Committee • Considers and approves criteria for selection of support • Reviews progress • Examines the results of implementation • Approves annual and final reports

  24. Regulation – general provisions on ERDF, ESF and CF Evaluation • Aiming to improve the quality, effectiveness and consistency of SF • EC can carry out strategic evaluations • Ex-ante evaluation • To improve programing and financial allocations • Mid-term evaluation • Ex-post evaluation • Effectiveness and efficiency; socio-economic impact • Carried out under the responsibility of the Member State or the Commission by experts or bodies, internal or external, functionally independent of the authorities • Results are accessible to the public

  25. Regulation – general provisions on ERDF, ESF and CF Programming • NSRF = main framework for MS • OPs = priorities and activities • Both prepared by MS with inclusion of partners (NGOs) • Working groups on governmental level • Importance of one voice

  26. Regulation – general provisions on ERDF, ESF and CF Financial management • Sets rules for payments between MS and EC • Certifying authority • Responsible for statements of expenditure and applications for payments

  27. Regulation on the ERDF Defines: • Tasks of the ERDF • Redressing regional imbalances • The scope of assistance • Productive investments – sustainable jobs • Investments in infrastructure • Services • Examples of investments: research, innovations, IT, environment, tourism, culture, transport, energy, education, social infrastructure • Rules on eligibility • System of management and control

  28. Regulation on the ESF Defines: • Tasks of the ESF • Improving employment and job opportunities • The scope of assistance • Increasing adaptability of workers, enterprises • Enhancing access to employment • Modernizations of labor market institutions • Social inclusion • Enhancing human capital • Rules on eligibility

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