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Financial instruments in Cross Border Regions

Financial instruments in Cross Border Regions. Marco FERRI European Commission DG Employment, Social Affairs and Inclusion Unit C4: Employment Services, EURES. Content of the presentation. Facts and figures of cross-border commuting in the EU/EEA EURES support to cross-border activities

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Financial instruments in Cross Border Regions

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  1. Financial instruments in Cross Border Regions Marco FERRI European Commission DG Employment, Social Affairs and Inclusion Unit C4: Employment Services, EURES

  2. Content of the presentation • Facts and figures of cross-border commuting in the EU/EEA • EURES support to cross-border activities • Other financing instruments to support cross-border activities • Challenges for cross-border co-operation Directorate-General for Employment, Social Affairs and Equal Opportunities

  3. Content of the presentation • Facts and figures of cross-border commuting in the EU/EEA • EURES support to cross-border activities • Other financing instruments to support cross-border activities • Challenges for cross-border co-operation Directorate-General for Employment, Social Affairs and Equal Opportunities

  4. Cross-border commuting • Cross-border commuting is the predominant form of mobility between cross-border regions; it is defined as living in one country but working in another country; with daily or weekly return; • Latest research suggests that there are around 800.000 cross-border commuters in EU/EEA (daily or weekly return); • In comparison: Intra-European mobility at the level of 2.1%, 10.5 million EU citizens live in another EU Member State, 6.3 million EU citizens living and active in another EU Member State; Directorate-General for Employment, Social Affairs and Equal Opportunities

  5. European cross-border commuters – by countries of origin (2006/07) Directorate-General for Employment, Social Affairs and Equal Opportunities

  6. European cross-border commuters – by countries of destination (2006/07) Directorate-General for Employment, Social Affairs and Equal Opportunities

  7. Border regions with the highest number of cross-border workers EU-15, EFTA/EEA countries 2006/07: • France Switzerland (111,241) • France Luxembourg (64,100) • France Germany (51,221) • Italy Switzerland (44,416) • Germany Switzerland (42,476) • Belgium Luxembourg (34,633) • Belgium The Netherlands (31,481) • France Belgium (29,665) • Germany Luxembourg (28,800) Directorate-General for Employment, Social Affairs and Equal Opportunities

  8. Border regions with the highest number of cross-border workers EU-12 countries 2006/07: • EstoniaFinland(ca. 20,000) • Slovenia Italy (ca. 16,000) • Slovakia Czech Republic (ca. 12,000) • Slovakia Hungary (ca. 10,500) • Hungary Austria (ca. 10,000) • Slovakia Austria (ca. 9,000) • Poland Czech Republic (ca. 7,700) • Czech Rep. Austria (ca. 7,000) • Bulgaria Greece (ca. 5,600) Directorate-General for Employment, Social Affairs and Equal Opportunities

  9. Obstacles on cb commuters mobility (mean values) white minor obstacle (1.00 – 2.25) medium obstacle (2.26 – 3.00) major obstacle (above 3.00) yellow orange Directorate-General for Employment, Social Affairs and Equal Opportunities

  10. Importance as commuting branches (mean values) white minor importance (1.0 – 2.9) high importance (3.0 – 3.3) very high importance (above 3.3) yellow orange Directorate-General for Employment, Social Affairs and Equal Opportunities

  11. Content of the presentation • Facts and figures of cross-border commuting in the EU/EEA • EURES support to cross-border activities • Other financing instruments to support cross-border activities • Challenges for cross-border co-operation Directorate-General for Employment, Social Affairs and Equal Opportunities

  12. EURES support to cross-border activities • Option 1: • Cross border cooperation between the involved EURES members, included in the respective national activity plans of the members. • Option 2: • Cross-border partnership with co-operation activities between the involved EURES members, complemented by other partners activities and then included in the respective national activity plans of the members. The involved EURES members take care of the coordination of the activities. • Option 3: • EURES cross-border partnership that applies directly under the EURES call for partnership 2010-2013 (specific criteria) • Option 4: • Cross-border partnerships without financial support by EURES. It is still part of the EURES network: receives information, can use the EURES logo, is invited to EURES trainings. Directorate-General for Employment, Social Affairs and Equal Opportunities

  13. OPTION1: EURES small-scale cross-border initiatives (2008-2009) • BE–NL • SI-HU • RO-HU • RO-BG • AT-CZ • CZ-SK • HU-SI-AT • AT-SK • LT-LV • LT-PL • LV-EE (Valka-Valga and others) • FR-CH (Franche Comté/Neuchâtel) • FR-BE (Champagne-Ardenne/Wallonie) • FR-UK (Haute-Normandie/Sussex) • PT-ES (various regions) • ES-FR (various regions) • SK-PL (Zamagurie region) IS FI SE NO EE 11 LV 9 DK LT 10 IE UK PL NL DE 1 BE 14 17 13 CZ 6 SK 5 8 AT 12 7 FR HU 3 CH RO 2 SI 4 BG 16 IT 15 ES PT GR CY Directorate-General for Employment, Social Affairs and Equal Opportunities

  14. EURES cross-border 2010 • EuresChannel (BE-FR-UK) • Scheldemond (BE-NL) • EURES Maas-Rhin (BE-DE-NL) • P.E.D. (BE-FR-LUX) • S.L.L.R (DE-FR-LUX) • Bayern-Tschechien (DE-CZ) • Sønderjylland-Schleswig (DK-DE) • EUREGIO Rhein-Waal (DE-NL) • Danubius (SK-HU) • Triregio (DE-PL-CZ)) • Northern Ireland/Ireland (UK-IE) • TransTirolia (IT-AT-CH) • ØRESUND (DK-SE) • Galicia/Região Norte (ES-PT) • Oberrhein (FR-DE-CH) • Tornedalen (SE-FI) • Bodensee (DE-AT-CH) • Euradria (IT-SL) • Beskydy (SL-CZ-PL) • Pannonia (AT-HU) 16 IS FI SE NO EE LV 13 DK LT IE 11 7 UK PL NL 8 2 1 DE 10 BE 3 CZ 6 19 4 5 SK 9 17 15 AT 20 FR HU CH 12 RO SI 18 BG IT 14 ES PT GR CY Option 2 Option3 Option4 Directorate-General for Employment, Social Affairs and Equal Opportunities

  15. Content of the presentation • Facts and figures of cross-border commuting in the EU/EEA • EURES support to cross-border activities • Other financing instruments to support cross-border activities • Challenges for cross-border co-operation Directorate-General for Employment, Social Affairs and Equal Opportunities

  16. Treaty on the Functioning of the EU • ECONOMIC, SOCIAL AND TERRITORIAL COHESION • Article 174 • In order to promote its overall harmonious development, the Union shall develop and pursue its actions leading to the strengthening of its economic, social and territorial cohesion. • In particular, the Union shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions. • Among the regions concerned, particular attention shall be paid to rural areas, areas affected by industrial transition, and regions which suffer from severe and permanent natural or demographic handicaps such as the northernmost regions with very low population density and island, cross‑border and mountain regions. Directorate-General for Employment, Social Affairs and Equal Opportunities

  17. Other financing instruments to support cross-border activities European Social Fund ESF (1) • ESF regulation – Article 3.6– scope of assistance • The ESF shall also support transnational and interregional actions in particular through the sharing of information, experiences, results and good practices, and through developing complementary approaches and coordinated or joint action. Directorate-General for Employment, Social Affairs and Equal Opportunities

  18. Other financing instruments to support cross-border activities European Social Fund ESF (1) • ESF regulation – Article 3 – scope of assistance • the modernisation and strengthening of labour market institutions, in particular employment services and other relevant initiatives in the context of the strategies of the European Union and the Member States for full employment; • the implementation of active and preventive measures ensuring the early identification of needs with individual action plans and personalised support, such as tailored training, job search, outplacement and mobility, self-employment and business creation, including cooperative enterprises, incentives to encourage participation in the labour market, flexible measures to keep older workers in employment longer, and measures to reconcile work and private life, such as facilitating access to childcare and care for dependent persons Directorate-General for Employment, Social Affairs and Equal Opportunities

  19. Other financing instruments to support cross-border activities European Social Fund ESF (2) ESF interventions in period 2007-2013 : Almost two thirds of EU Member States and morethan one third of the ESF programmes address labour mobility related issues; About 675,000 persons benefited from ESF supported activities with an explicit link to labour mobility; At least 17,000 organisations, mostly companies, were encouraged through the ESF to adjust and/or improve their organisational functioning with the aim to further mobility; More than 100,000 workers and trainees were supported to move jobs or perform a first on-the-job training away from home; Almost 100,000 researchers benefited from scholarships, most of which were granted to work in another region or country; Almost 60,000 people had their competences and skills recognised and certified. Directorate-General for Employment, Social Affairs and Equal Opportunities

  20. Other financing instruments to support cross-border activities INTERREG IV A (1) • Support strategic cross-border co-operation for a more prosperous and • sustainable region • Cross-border co-operation programmes: • For example: CBC SE/FI/NO Nord, CBC Hungary – Slovak Republic, CBC Germany – the Netherlands • Examples how DE-NL EURES partnerships use INTERREG IV A: • Job roboter (search tool for vacancies posted on business websites), • Cross-border apprenticeships (training and preparation), • Monitoring of cross-border labour market, • Network of vocational training institutions, • University projects, • Financing work of EURES advisers, • Seminars • Etc. Directorate-General for Employment, Social Affairs and Equal Opportunities

  21. Other financing instruments • Actions for Cooperation and Information on Social Security Coordination • The European Commission has published a call for proposals to financially support: • transnational actions for cooperation between social security institutions; • transnational awareness raising actions improving citizens' knowledge on their rights and obligations deriving from the EU Regulations on social security coordination; • transnational or national actions for preparing and implementing the system for electronic data exchange (EESSI). Directorate-General for Employment, Social Affairs and Equal Opportunities

  22. Other financing instruments About Training and Reporting on European Social Security (trESS) trESS organises seminars and establishes networks between people involved in social security coordination at national level. It moreover reports to the European Commission on implementation problems encountered in the EU Member States and undertakes legal analysis on the coordination Regulations. The trESS network consists of independent experts in the field of European social security law, coordinated by Ghent University. Directorate-General for Employment, Social Affairs and Equal Opportunities

  23. Interreg Cooperation objective 2007-2013 Crossborder Cooperation regions Directorate-General for Employment, Social Affairs and Equal Opportunities Source: EC- Regional Policy: Cohesion policy 2007-2013

  24. Content of the presentation • Facts and figures of cross-border commuting in the EU/EEA • EURES support to cross-border activities • Other financing instruments to support cross-border activities • Challenges for cross-border co-operation Directorate-General for Employment, Social Affairs and Equal Opportunities

  25. Challenges for cross-border co-operation (1) • “Push-factors” have less importance than “pull-effects”: the attraction of markets/earnings in the destination country is crucial. • Cross-border commuting still prevails within EU-15 states (Alp area, Benelux), while some EU-12 states (Slovakia, Estonia, Hungary, Czech Republic) gain significance, mainly as countries of origin. • Commuters are predominantly daily commuters, although it is necessary to boaden the definition of cross-border commuting with regard to its temporal scale  increasing importance of “long-term commuting” • Significant level of illegal employment in the border regions Slovenia→Italy, Bulgaria→Greece and Hungary→Austria • Commuters are predominantly male in medium age groups, in the sector of health and social work there is female prevalence, the sector of hotels and restaurants is equally balanced. • The importance of the secondary sector at the present point slightly prevails the tertiary sector, whereas there are observable tendencies towards a tertiarisation with regard to cross-border commuting. Directorate-General for Employment, Social Affairs and Equal Opportunities

  26. Challenges for cross-border co-operation (2) Labour displacement or complement of domestic workforce • Commuters are predominantly noticed as necessary and complementary working resources to the local labour force pool. • In most cross-border regions they occupy peripheral activities and economic niches which are of little interest for domestic workers. • Switzerland shows the highest level of resentments and felt labour displacement due to the reason that in-commuters often occupy well remunerated, attractive job positions in great quantities (e.g. high-skilled Germans like physicians, lawyers or engineers). • But: • While actual labour displacement remains rather small in Switzerland several studies assess substantial positive effects on productivity and economical growth to foreign migrants and commuters (“brains”). • Commuter streams of Slovenia→Italy, Bulgaria→Greece and Slovenia→Austria show an obvious correlation of felt displacement of domestic workers and a significant level of illegal employment estimated in these cross-border regions Directorate-General for Employment, Social Affairs and Equal Opportunities

  27. Challenges for cross-border co-operationmainly for EURES cross-border partnerships • Commuting increased in several regions and might further increase • New cross-border initiatives mainly from new EU-MS are coming up • EURES grants are under pressure – how can additional funds contribute to financing of Xborder activities • Partnerships should start measures to ensure self-sustainability and/or gain access to other financing instruments • Strong focus on information and advice functions; hardly any placements activities • Shortcomings in defining the expected outputs • Partnerships are often lacking a coherent integrated strategy – too often stand-alone activities – systematic links between information, advice and placement functions not identifiable • The number of EURES advisers is not sufficient to cope with the number of requests Directorate-General for Employment, Social Affairs and Equal Opportunities

  28. Conclusion • Thank you • http://ec.europa.eu/eures • Scientific report: • http://ec.europa.eu/social/BlobServlet?docId=3459&langId=en Directorate-General for Employment, Social Affairs and Equal Opportunities

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