Strengthening the Link Between Economic Policies and EU Funds: The European Semester

2. Cohesion Policy and the European Semester Linking economic policies and EU funds Miguel Gil Tertre, Head of Unit European Semester, European Strategic Investments & Cohesion, SG Mariana Hristcheva, Head of Unit Evaluation and European Semester, DG REGIO

3. The European Semester: • Introduced in 2011, the European Semester is an established tool of policy coordination combining annual and multiannual features • Annual cycle of analysis and monitoring of EU level (Annual Growth Survey) and national level (Country Reports) developments • Focus on mid- to long-term challenges implies importance of multiannual perspective: • Strategic goals and targets • Commission political priorities • Continuity of the CSRs, including their monitoring

4. “Cohesion Policy will play an increasingly important role in supporting the ongoing economic reform process in the Member States. The Commission proposes to strengthen the link between the EU budget and the European Semester of economic policy coordination, which takes regional specificities into account”. Communication from the Commission: A Modern Budget for a Union that Protects, Empowers and Defends, 2 May 2018

5. Previously existing links but need for strengthening; • Greater synergies and complementarity between the coordination of economic policies and spending of the cohesion policy funds; • To achieve this, the 2019 European Semester documents had stronger focus on identifying and prioritising investment needs at national level to guide upcoming programming decisions; • To be repeated in 2024 for the mid-term review.

6. What practical implications: • European Semester Country Reports in 2019 focused more on investment needs and regional/territorial disparities; • Analysis used to guide investments financed by the European Regional Development Fund, the European Social Fund Plus and the Cohesion Fund for the 2021-2017 period; • More links with National Reform Programmes; • 2019 country-specific recommendations (CSRs) identified priority areas for public and private investment to further facilitate the implementation of growth-enhancing reforms at national level. Benefits: • More consistency and stronger analytical basis for dialogue on the Partnership Agreements; • Better use of EU funds to address challenges identified in the European Semester; • Multilateral endorsement of priority areas for investment via CSRs (n.b. not limited to EU funds); • Greater outreach to stakeholders and transparency.

7. What next for the 2020 cycle? • Report on monitoring of cohesion policy funds contribution to addressing investment needs identified in the CSRs • Look at other EU funds and their support to identified challenges under the Semester • Climate/Energy/Digital transition – focus on key national investment needs and reform priorities

8. 2019 European Semester Country reports and investment guidance • 2019 Country reports presented the Commission services views on how to maximise the country-specific positive impact of the three Cohesion policy funds on economic development and convergence. • CRs Identify priority areas for policy action regarding public and private investment in Member States including sectoral and regional dimensions • Provide the analytical basis for a successful programming of Cohesion policy funds in 2021-2027 (Commission’s starting negotiating position) • Based on this analysis, a new annex (D) to the country report identified the investment priorities for the ERDF, CF and ESF+.

9. Investment guidance • Challenges stem from the analysis in the CR • Investment guidance is structured along the 5 policy objectives and specifies factors for effective delivery (for each MS) • Particular attention is paid to regional specificities (and outermost regions) • Identification of priority investment areas, along the Specific Objectives proposed in the fund-specific regulations • Factors for effective delivery (administrative capacity, …. Conflict-of-interest, fraud and corruption, etc.)

10. This investment guidance was the starting point of the programming processes • Launch events were held in all member states in the first half or 2019 • Member states have established programming roadmaps • Pending the finalisation of the MFF and of the CPR an informal programming dialogue with MS has started

11. Way ahead until programme adoption and implementation • Informal dialogue is conducted with programming authorities in member states • Different stakeholders (national, regional, local, other partners) are involved within partnership and consultation processes initiated by national authorities (in line with the Code of Conduct on Partnership) • Way ahead until programme adoption and implementation - calendar

12. Roadmaps - timetable Submission of mature draft PAs and Ps 4Q2019 | 1Q2020 | 2Q2020 | 3Q2020 | 4Q2020 | 1Q2021 Formal submission of draft PAs and Ps Adoption MFF CPR and Fund specific regulations Informal Negotiations Formal dialogue