Investing in the Real Economy: Role of Cohesion Policy in the Financial Crisis

1. EU Cohesion Policy: Investing in the real economy European Commission, DG Regional Policy REGIO D2 – Thematic coordination, innovation

2. Role of Cohesion Policy in the current financial crises • 347 billion euro for the 2007-2013 period investing in the real economy • Important role in restoring confidence by supporting priority infrastructure, business capacity and human potential • Powerful instrument for stability REGIO D2 – Thematic coordination, innovation

3. Accelerate implementation by maximising existing tools • Increasing the capacity of JASPERS ("Joint Assistance in Supporting Projects in European Regions“) to accelerate implementation of major projects • Promoting entrepreneurship (JEREMIE “Joint European Resources for Micro to Medium Enterprises", micro-credits) • Enhancing co-operation with the EIB and EIF • Adapting programmes to focus more on areas with growth potential • Simplifying the delivery mechanism REGIO D2 – Thematic coordination, innovation

4. Mobilisation of Cohesion Policy resources: the legislative package • Increase in advances with extra EUR 6.25 billion cash flow to Member States REGIO D2 – Thematic coordination, innovation

5. Mobilisation of Cohesion Policy resources: the legislative package • Accelerate intermediate payments to major projects and state aid schemes • Simplifying eligibility of expenditure • Facilitating the management of financial engineering instruments REGIO D2 – Thematic coordination, innovation

6. New initiatives • Extension of the final eligibility date for implementation under the 2000-2006 period • More action in support in energy efficiency and renewable energies in housing REGIO D2 – Thematic coordination, innovation

7. Conclusions • Maintaining agreed priorities while optimising resources • Legislative changes to be adopted by the Council and the EP before end of June 2009 • Communication on “Cohesion Policy investing in the real economy” will provide concrete recommendations REGIO D2 – Thematic coordination, innovation

8. Small Business Act • A comprehensive policy framework • EU and national level actions • 10 principles to guide EU and national policies • Specific EU proposals • State aid general block exemption • European Private Company statute • Amendment of late payment Directive • VAT proposal - lower rates for local services REGIO D2 – Thematic coordination, innovation

9. Small Business Act • Create an entrepreneurship environment • In case of bankruptcy => a second chance to honest entrepreneurs • “Think Small First” when designing rules • Responsive public administration • Adapt policy tools to SME needs: procurement, state aid • Access to finance, timely payments • Opportunities of the Single Market • Upgrading skills in SMEs and all forms of innovation • Turn environmental challenges into opportunities for SMEs • Support SMEs to benefit from the growth of markets REGIO D2 – Thematic coordination, innovation