2014 - 2020

1. Poland: Partnership agreement and Operational Programmes 2014 -2020

2. Background: EU funds for Poland BUDGET FOR POLAND 2014-2020 ca.82.5blnEUR Cohesion policy (ERDF, ESF, CF) CAP (bothpillars) ca.32.1 bln EUR Instruments and programmes without national envelopes (np. Horizon, Erasmus) ca. 5 bln EUR ca.119.6 bln EUR Partnership agreement covers: 119,6b EUR - ca. 5b EUR (Horizon, Erasmus etc.) - ca. 23,5b EUR (direct payments) - ca. 0.7b EUR (ETC) ca. 90.4b EUR, including ca. 5.2bEUR for transfers (CEF, FEAD etc.) and YEI

3. Background: Europe 2020 / NRP Main targets related to Europe 2020 Employment 71%of population 20-64 employed Research & Development 1.7 % GDP for R+D Reducing greenhouse gas emmissions 79.5; Increasing RES share to 15%; Reducing energy use by 96 Mtoe Sustainable use of energy Reduction of early school leavers 4.5%; At least 45% of people from age group 30-34 with tertiary education Education Combating poverty and social exclusion Reducing number of people at risk of poverty or social exclusion by 1.5 million

4. State of play and next steps - summary • Partnership agreement: • Submitted: January 2014 • official comments from the Commission: March 2014 • approved: 23 May 2014, 10 a.m. • National operational programmes: • submitted: March 2014 • official comments from the Commission: May-June 2014 • approved: ? • Regional operational programmes: • submitted: April 2014 • official comments from the Commission – expected by the end of July • approved: ?

5. Horizontal rules in Partnership Agreement Some horizontal principles agreed: • Cross-financing possible except for multi-fund priority axes – potential use of cross-financing should be indicated in OPs in the description of priority axes Pro-rata mechanism – pre-defined shares of contribution from more-developed Mazowsze region described in detail: • For national ESF – 13.6% (based on population); • For thematic objective 2 at national level (OP Digital Poland) – 7%; • For national programmes’ technical assistance (TO3, TO2) – 7%; • „Standard priority axes” – a function of number of regions: for national projects 1/16 – the ratios automatically applied in the ICT system • Ex ante conditionalities – the table annexed to the PA very concise, indicating just a date(s) and institutions responsible; some conditionalities (including horizontal one related to result indicators) to be discussed at programme level • Selection of projects without open calls for proposals possible only if: • Explicitly justified in the OP; • Open calls for proposals would be inefficient or impossible to apply, namely: (1) legal monopoly or similar arrangements or (2) transparent upstream identification in OP (major projects, ITIs, „positively appraised by MA in accordance with MA’s criteria” • Specific rules for EFS • Poland „aims at” spending 20% of EU Funds (ESIF, CEF, 1st pillar) for climate objectives • Maximum co-financing rates, review on the basis of progress reports

6. Ring-fencing: required vs. actual Actuallevel Fund(s) Minimal ring-fencinglevels LESS DEVELOPED REGIONS min. 50% for TO1-4 środków (RDI, ICT, SMEs, low-carbon economy) 60.3% ERDF MAZOWSZE 20% EFS min. 60% for TO1-4 środków (RDI, ICT, SMEs, low-carbon economy) ERDF 69.8% Fundusz LESS DEVELOPED REGIONS and MAZOWSZE 65% EFRR 21.9% ESF min. 20% for poverty reduction and social inclusion (ESF share is equal to 24.7% - the minimum for Poland is 24%) EFRR i FS ERDF + CF min. 15% of ERDF for low-carbon economy 23.1% 20% EFS

7. RDI – ca. 10b EUR Main principles for thematic objective 1 agreed in Partnership Agreement: Focus on applications - financing industrial research and development aimed at direct application of the R+D results in economic activities of specific enterprises 1 national and 16 regional smart innovation strategies – still to be finalised; all operations must be consistent with the smart specialisation strategies; focus on (very selective) Research Infrastructure Roadmap, approval by minister responsible for research needed even for regional investments (to avoid overlaps) Focus on SMEs; large enterprises – the need to show specific spillover effects „to Polish economy” and preference for projects implemented together or in cooperation with SMEs Infrastructure investment in business-support institutions only if needed to complement 2007-2013 projects; ICT in research institutions only if necessary for a specific R+D project R+D infrastructure supported to be made available to people/entities outside, not only beneficiaries

8. ICT (ca. 3.1b EUR, ERDF only) Main principles for thematic objective 2 agreed in Partnership Agreement: ERDF interventions in broadband cover whole territory of Poland – including rural areas 30Mb/s in principle is required, but in justified cases (estimated 6-8% of households) lower speeds possible Investments in infrastructure to be implemented together with road, sewage etc. whenever possible Equipment for e-administration only if shortages demonstrated e-business in TO3

9. Competitiveness of SMEs (ca. 9.4b EUR, including 3.8b EUR from EAFRD) Main principles for thematic objective 3 agreed in Partnership Agreement: Priority for smart specialisation strategies, but possible to support other SMEs as well Specific conditions for infrastructure investment for business-environment institutions – e.g. no spare capacity or overlap, including with neighbouring regions; part of regional or national innovation strategy; private co-financing. „Infrastructure for economic development” (new or improvement/extension) – preparation of industrial zones etc. – access must constitute <50% of a given project’s budget (access provided by complementary investments under TO4, TO7 or TO9); preference for brownfields or areas next to newly constructed road, railway infrastructure; need to prove no spare capacity in already available locations No grants – only financial instruments - for investments with low business risk Individual verification of financing needs under State aid – regional aid maximum intensities only a starting point, to be used for high-risk ventures

10. Low-carbon economy (ca. 9.2b EUR) Main principles for thematic objective 4 agreed in Partnership Agreement: Energy efficiency in large enterprises taking into account (1) their potential to finance the investments from own resources, (2) social benefits (3) potential to create new jobs Energy audit obligatory, financed as a part of a project Profitability of investments to be taken into account („cost effectiveness” as the criterion); for renewables and energy efficiency – financial instruments if this is shown by ex ante assessment Urban mobility projects should be comprehensive and form a part of a broader strategy Electrical grid not only „smart” but also in order to enable connection of RESs

11. Transport and network infrastructure (23.8b EUR) • Railways (including CEF) – 10.2b euro • Investments in national roads outside TEN-Ts only to close gaps or if there is no alternative connection with enough capacity; no investments (in particular – capacity extensions) in airports – except for safety and/or environment. • Investments in regional roads, to close gaps, connecting regional and subregionalcenters, on the basis of diagnosis of accessibility of local job markets • ERDF investments in so-called local roads only if: • they contribute to physical, economic and social revitalisation and regeneration of urban functional areas (as a part of local revitalisation plans, under TO9) • they are connected to sustainable urban mobility (as a part of local mobility plan, local low-emission strategy, or ITI, under TO4) • they ensure direct connections with TEN-T, border crossings, airports, seaports, cargo terminals, logistical centers, under TO7) • The total amount should not exceed 15% of the total amount for roads under any given programme; in regional programmes – the total should not exceed 450m EUR. • Local roads from EAFRD • Access roads for towns with important functions or institutions; • roads ensuring better access for more inhabitants; • Preference for roads in municipalities with low tax base or high unemployment

12. Employment – 10.6b EUR Regional, indicative employment rate targets to be developed YEI for people in the 25-30 age group as well Support „focused” on certain groups (an open list of criteria defined in PA, demarcation with TO9) Exclusively demand-driven approach for adaptability – regions to decide on methods, e.g. vouchers Focus on most effective measures, such as training. No support for conferences and seminars. Standalone awareness raising campaigns not eligible For investment priority 8b („endogenous potential”) separate ESF and ERDF projects. Minimum effectiveness of measures (percentage of people finding employment) defined and reviewed periodically; uniform methodology defined – for monitoring employment after the 6-month period, based on regular evaluation

13. Nationalprogrammes(mln EUR) Smart growth 8614 Inf&Env 27414 ESF POWER 4437 Digital Poland 2172 TA 700 Eastern PL 2000 POWER dodatkowo środki na YEI – ok. 252,4 mln EUR

14. OP Smart Growth (ERDF) TO1 – 7.5b TO3 – 0.8b Focus on highest value added – smart specialization Form of support dependent on level of risk – more use of financial instrument and combination of grants with financial instruments Consolidation of services offered to entrepreneurs – more demand driven approach Examples of operations Support for all parts of process of creation of innovation (focus on national innovation), tailor made instruments – from an idea to industrial application; innovation vouchers for entrepreneurs Support for selected R+D infrastructure projects (Polish Research Infrastructure Roadmap) Financial instruments for entrepreneurs starting innovative activities Support and preferences for key national clusters Thematic grants for institutions preparing HRD strategies for R&D staff

15. OP Digital Poland - 2,2b in TO2 Broadband infrastructure – where market failure exists (including in rural areas) Development of e-public services, e-administration, digital resources (projects implemented by government bodies) Comprehensive projects improving digital competences, e-inclusion, e.g. increasing coverage of public internet hotspots Developing competences of talented programmers (e-pionier)

16. OP Infrastructure and Environment TO4 – 3.5b Comprehensive thermal rehabilitation of buildings development of CHP Energy efficiency in entreprises Renewables rozwój OZE uwarunkowany terytorialnie – kryterium efektywności kosztowej sustainable urban transport – network infrastructure, rolling stock (trams, trolley-buses, buses) TO5 – 3.5b Small retention; other flood prevention infrastructure – dependent on water framework directive Emergency response services Protection of coastal areas TO7 – 18.8b National roads and railways in TEN-T and connecting to it, including ringroads and sidepasses National roads and railways outside TEN-T including in biggest urban areas Inland waterways Access to seaports and port infrastructure Safety in roads, rail and air traffic Development and modernisation of gas transmission and distribution networks, LNG terminal and gas storage

17. OP Infrastructure and Environment TO6 – 3.6b Wastewater projects – agglomerations with at least 10 000 PE Comprehensive solid waste management systems with incinerators Biodiversity (Natura 2000, national parks) Air quality in enterprises – installations to reduce pollution Cultural heritage – no new museums TO9 – 0.5b Health services – within a specially set-up national coordination system, for key areas identified in a policy paper

18. POWER (OP Knowledge - Education - Growth) – ESFTO8 – 1.6b, TO9 – 0.25b, TO10 – 1.6b, TO11 – 0.2b support for youth NEETs (including YEI) Adjusting competences to job market needs Life-long learning National qualification system Improving business environment, better regulation, more effective public institutions, strategic management Improving regulatory environment, support for institutions and systems providing services for individuals and systems Social innovation, transnational cooperation; increasing effectiveness of public policy (including transborder mobility)

19. Employment and mobility Developing framework for implementation of labor market policy Developing mechanisms to support enterprises to adress strategic challenges Support for youth NEETs (within YEI, and beyond) – traineeships, trainings, vocational training, co-finanancing postgraduate studies, scholarships, educational loans, start-up grants, etc. Support for people with disabilities at labor market Measures to increase quality and effectiveness of health services (accreditations, restructuring), better monitoring of health needs, training for health sector managers, pilots and implementation of coordinated care organisation; addaptation of hospitals to needs of people with disabilities and elderly, including in terms of communication Preventive activities to ensure early detection of deseases and more effective early medical intervention działania profilaktyczne pozwalające na wykrycie chorób we wczesnym ich stadium i na rozpoczęcie leczenia Comprehensive and specialized diagnostics for ilnessess having the biggest impact on labor market participation

20. Education and higher education Improving framework of functioning of education policy, higher education and LLL Modern curricula – better adjusted to socio-economic needs Targeted specializations – in areas which are essential for the economy – on request from employers Traineeships for students, trainings for PhD students and academic teachers Support for students entering job market– improving quality of services provided International mobility – international PhD programmes, support for guest lecturers from abroad, English-language curricula, support for foreigners coming to study in Poland Accreditation of Polish universities and programmes by foreign bodies Modern management techniques in Polish universities

21. Other areas of support Poverty and social inclusion Activities aimed at improving framework for social care and inclusion Increasing competences of employees in this field Direct support for Roma and prisoners Public administration Better regulation – improving legislative process, simplification, etc. Improving access to courts and effectiveness of its functioning – standardization, management, competences of managers Quality of public services – monitoring, studies, standardization etc. Quality of spatial planning

22. OP Eastern Poland (ERDF)TO3 – 769m, TO4 – 440m, TO7 – 756m Specific systemic support for SMEs (complementary to support in regional programmes) Support for clusters and internationalisation of SMEs Road infrastructure, in particular in regional capitals Strengthening railway connections in the region Development of public transport in functional areas of the regional capitals

23. Regional programmes (ROPs)ca. 31.3b EUR 15 programmes for less developed regions (ERDF and ESF) and one for Mazowsze (ERDF and ESF) ca. 60 % of Structural Funds managed at regional level ROPs cover up to 10 thematic objectives (except TO11, which is exclusively at national level) TO1 in accordance with each region’s own smart specialisation within 16 ROPs - 17 Integrated Territorial Investments for functional areas around regional capitals, complementary support (but outside ITIs) in national programmes Split by thematic objective [millions EUR]:

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