What is EoRPA?

1. New Policy Frameworks, New Policy Approaches Recent regional policy developments in EuropeDouglas YuillPresentation at Ministry of Regional Development, Warsaw, 8 December 2008

2. What is EoRPA? • EoRPA is the Gaelic word for Europe • It is also the acronym for the European Regional Policy Research Consortium run by EPRC at the University of Strathclyde, Glasgow • EoRPA funds comparative EPRC research into regional policy developments in all EU countries (and Norway) • The consortium consists of regional policy departments from 10 countries: Austria, Finland, France, Germany, Italy, Netherlands, Norway, Poland, Sweden, United Kingdom.

3. What is EoRPA? • EPRC produces five major reports for EoRPA each year and also disseminates the results of the research: • An overview of policy change across Europe (EoRPA Paper 08/1) • Policy change: a country-by-country review (EoRPA Paper 08/2) • Regional policy and EU State aid control (EoRPA Paper 08/3) • Regional policy and EU Cohesion policy (EoRPA Paper 08/4) • Territorial cohesion and cooperation (EoRPA Paper 08/5) • This presentation focuses on national regional policy developments.

4. Purpose of presentation • Period of significant policy change: new EU policy frameworks and period of domestic policy review • Aim to chart the main changes taking place – by country and theme, identifying broad trends and country groupings • Aim to address the issue of why particular changes have been taking place

5. Definition and scope of regional policy • Cohesion policy major importance : regional policy largely synonymous with Cohesion policy: programme-based, all-region, thematic & regional elements, growth-oriented – PL, NMS, GR, PO, SP, IT (2000-06). • Narrow (top-down, aid-based, investment-oriented, aid-area-targeted) andbroad policy (regional impact of sectoral policies, coordination) – (DE), SW, FI, NO • Regional policy low-key: small countries, limited problems – NE, IR, LU, BE, AU • Policy important, coordination key: FR – coordination via DIACT; GE – regional GA (coordination); UK – productivity-oriented, devolved; IT(2007-13) unitary

6. Nature and perception of the regional problem • Limited disparities, limited intervention – AU, DE, LU, NE • Differentiated problems, calling for fine-tuned regional responses (also sub-regionally) – BE, FR, IR, UK • Problems of sparse population/remoteness, but also growth components to policy – FI, SW, NO • Severe regional differences (macro-regions) – GE, IT • Significant internal disparities, but national development key – GR, PO, SP • Marked internal disparities (capitals vs periphery), but also major gap with the rest of the EU – PL, rest of NMS

7. Changing policy response: the degree of policy change Countries with major recent developments • Denmark: new policy approach from 2007 – reform of local government, new Business Development Act, new programme-based policymaking. • Netherlands: Peaks in the Delta White Paper implemented. Geographic policymaking. Regional strengths targeted in line with national priorities. • Italy: New unitary regional policy based on 2007-13 NSD and related OPs. Utilises EU and domestic budgets within EU-based programming regime but with domestic targets. Funding challenges.

8. Changing policy response: the degree of policy change Countries with important domestic changes • Sweden: Renamed regional growth policy – stronger focus on developing growth potential in the regions and regional competitiveness. • Finland: Regional Development Act revisions. Coordination role of Regional Councils strengthened. Revised policy objectives for new government. • Germany: 2006 federalism reform – regional GA retained. Annual Framework Plan to multi-annual Coordination Framework. New regional aid map. Investment Allowance continued but phased out by 2013.

9. Changing policy response: the degree of policy change Countries with interesting new developments • France: New generation of State-region project contracts, new SF programmes. PAT changes, new aid map, major-project focus. New competitiveness poles. Policy goals maintained but stress on sustainability • UK: 2007 Sub-National Review in England: productivity focus plus decentralised delivery. 2008 consultation on delivery: aim for sustainable growth at every level. Support measures rationalised, new aid map.

10. Changing policy response: the degree of policy change Countries impacted by Cohesion policy developments • Poland: High policy profile. 2007-13 programming framework created a coherent and strategic approach. Debates forward-looking, introspective: focus on internal growth, growth centres. Coordination issues. • Significant changes also in Greece, Portugal, Spain, including focus on improved governance • Austria: NSRF development brought active collaboration, ‘STRATH.AT plus’ process. Land strategies reviewed. New regional aid map, young entrepreneurs scheme.

11. Changing policy response: the degree of policy change Limited changes • Norway: Relatively low-key change – taking forward 2006 White Paper. But: new maps and reintroduced social security concession • Belgium: New regional aid laws in Flanders & Wallonia; federal elections cast doubt on institutional set-up. • Ireland: Domestically-funded National Development Plan; regional gateways • Luxembourg: No change. New regional aid legislation pending.

12. Changing regional policyobjectives Main developments: • Strong move towards the promotion of growth and competitiveness: Examples: Netherlands, Sweden, France, Belgium, Poland, other NMS, Portugal • Some recent developments have equity elements: Denmark, Greece, Norway • Other objectives include stronger territorial structures (e.g. Nordic countries, Ireland), sustainable development (e.g. Belgium, France), better governance

13. Factors underpinning policyobjectives • Growth and competitiveness: broader growth imperatives (including Lisbon agenda); endogenous growth; utilising regional potential; link between regional growth and territorial balance • Equity: constitutional commitments; broader commitment to equity/nature of the regional problem; core aspect of regional policy (funding allocations) • Maintaining territorial structures: uniform service provision; viable structures; spatial planning priorities • Sustainable development – sustainability agenda

14. Changing spatial orientationof regional policy Main developments: • Significant aspects of policy have an all-region focus: Austria; Denmark; Finland; France; Germany, Greece, Ireland; Italy; Netherlands; Sweden; UK; Poland; Norway • However, regional aid maps target designated areas: significant cutbacks in coverage for 2007-13 • Also, funding flows favour weaker regions e.g. Denmark; Germany; Italy; Netherlands; Sweden; Poland; plus regional aid in Norway, Finland; Obj. 1 focus in Spain. • Specific area targeting: urban, rural, mountains, islands

15. Changing regional incentives Main developments: • New aid maps: much reduced coverage but more flexible system: difficulties in Italy; reserve in France • New aid maxima: much lower for large firms (cut in half over the past 10 years). • Changed regional aids (RAG-related): SSC in Norway; new business support in Austria, Norway • Aid simplification: Finland, France, Portugal, Scotland • Important domestic developments: Investment Allowance to be phased out (Germany); new tax aids & more targeted support (Italy)

16. Changing business environmentsupport • Move towards wider business environment support – reflects EU frameworks & domestic regional programmes • Infrastructure focus in Convergence countries/regions; accessibility also stressed in Nordic area, Netherlands. • Business infrastructure: central to Danish approach; industrial estates review in Netherlands, Flanders; business infrastructure important under Cohesion policy. • Innovation-oriented changes: Denmark; Finland; France; Germany; Ireland; Italy; Portugal, Spain; Poland; Norway • Advice/support changes: Austria; Ireland; Italy; Sweden; UK; improved admin capacity in Cohesion countries.

17. Summary Summary of the main developments: • Overall level of change has been considerable. • In part, reflects the new EU frameworks: Cohesion policy pivotal in Poland and other NMS, as well as Greece, Portugal and Spain, and has also impacted elsewhere. New RAG has changed maps, ceilings & instruments. • Also domestic drivers of change: regional reform (Den); Peaks approach (Neths); unitary regional policy (Italy); regional growth policy (Swe); Regional Development Act revised (Fin); reaffirmed GA (Ger); new NDP (Ire); integrated strategies (Eng); new State contracts (Fra). Globalisation pressures, regional potential, innovation.