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Context for Cohesion policy reform Cohesion policy reform proposals Key issues in he debate

EU Cohesion Policy at the Crossroads: How much will change? John Bachtler Paths and Crossroads of Regional Development in the European Union, 2014-2020, University of Craiova, 21 April 2012. Context for Cohesion policy reform Cohesion policy reform proposals Key issues in he debate.

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Context for Cohesion policy reform Cohesion policy reform proposals Key issues in he debate

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  1. EU Cohesion Policy at the Crossroads: How much will change?John BachtlerPaths and Crossroads of Regional Development in the European Union, 2014-2020, University of Craiova, 21 April 2012

  2. Context for Cohesion policy reform Cohesion policy reform proposals Key issues in he debate Budget and Cohesion Policy for Europe 2020

  3. Context for Cohesion policy reform Current reform is responding to two types of criticisms related to the performance of the policy: critics questioning the rationale/necessity of the policy itself policy is recognised as necessary, but implementation is criticised on grounds of priorities, effectiveness and delivery. These concerns – and external circumstances (globalisation, climate change, economic crisis) - have driven the reflection process on the future of Cohesion policy post-2013

  4. Context for Cohesion policy reform Fourth Report on Economic and Social Cohesion (2007) Prospective work on 2020 regional challenges (2008) Debate on territorial cohesion (2008) Enhanced dialogue with academia, international organisations Barca Report ‘Agenda for a reformed Cohesion policy (April 2009) Commissioner Hübner Reflection Paper on the future Cohesion Policy + joint ministerial communiqué (April 2009) Ex-post evaluations and studies (2009-10) High-level group discussions with MS experts (2009-10) Commissioner Samecki policy orientation paper (2010) Fifth Cohesion Report (Nov 2010) Draft legislative package (Oct 2011)

  5. Context for Cohesion policy reform Policy failures – the Barca Report highlighted two aspects in particular: a failure of the contractual arrangements to focus on results and to provide enough leverage for the Commission and Member States to promote changes a remarkable lack of political and policy debate on results in terms of the well-being of people, at both local and EU level, most of the attention being focused on financial absorption and irregularities.

  6. Context for Cohesion Policy reform EC Proposals on 2014-2020 MFF (Budget 2020)

  7. EU Cohesion policy: the reform proposals • New architecture – objectives, funding, eligibility, concentration, governance • Territorial dimension – integrated approach, local development, territorial cooperation • Focus on performance – conditionalities, results focus • Simplification and assurance

  8. New architecture: objectives • Treaty goal of economic, social and territorial cohesion • Two core objectives • Investment in growth and jobs • European territorial cooperation • Three categories of region (based on GDP per head): • Less-developed regions (formerly Convergence): <75% of EU27 average • Transition regions (replacing phasing in/out): 75-90% of EU27 average • More-developed regions (replacing RCE): >90% of EU27 average • National eligibility for Cohesion Fund: <90% of EU27 GNI ph

  9. New architecture: funding

  10. New architecture: eligibility Convergence coverage concentrated in 16 MS Transition category concentrated in EU15 Considerable volatility of data

  11. New architecture: concentration 11 thematic priorities

  12. New architecture: governance New strategic planning framework Common Strategic Framework EU level: Joint framework for ERDF, ESF, CF, EAFRD, EMFF Partnership Contracts (Agreements) Member State level: translation of CSF into national strategy Operational Programmes National/regional level: management instrument for interventions

  13. Territorial dimension 1. Integrated approach to territorial development • CSF – should facilitate sectoral and territorial coordination under CSF funds and other relevant EU policies and instruments • Partnership contract: should set out an integrated approach to territorial development including: coordination mechanisms, arrangements for areas with specific territorial features, local development • Operational programmes: should set out mechanisms for coordination, integrated approach to specific territories, local development areas, links with territorial cooperation

  14. Territorial dimension • Integrated local development • Community-led local development: integrated and multi-sectoral, area-based local development strategies led by local action groups • Integrated territorial investments: urban development strategies or other territorial strategies or pacts • Sustainable urban development: ring-fencing of 5% of ERDF funding, list of cities for implementation of urban actions, urban development platform • Specific territorial features: provisions on areas with handicaps, outermost regions

  15. Territorial dimension • European Territorial cooperation • One of two core goals; specific regulation • Reinforcement of strategic dimension • focus on four out of 11 priorities • coordination with national/regional programmes • coordination with macro-region and sea-basin strategies • common indicators to strengthen performance orientation • Simplification/clarification of implementation requirements

  16. Performance • New conditionalities • Ex ante conditionalities • Macro-economic conditionalities • Performance framework • Target setting • Progress reporting • Performance review • Monitoring and evaluation

  17. Performance: conditionalities Ex ante conditionalities

  18. Performance: conditionalities Macro-economic conditionalities Provisions for suspension of commitments and payments to Member State programmes where there is: • non-compliance with EU budgetary discipline / lack of effective corrective action • inadequate implementation of adjustment programme • failure to meet conditions attached to assistance under the European Stability Mechanism

  19. Performance: results focus Performance framework • Partnership Contract: setting of targets (milestones) for each priority in the PC and programmes for 2016 and 2018 and implementation steps • Performance reserve (5% of national allocations, allocated following performance review • Progress reports in 2017 and 2019 • Monitoring on the basis of common indicators • More prescriptive evaluation obligations • Investment in institutional capacity

  20. Simplification and assurance Simplification of policy delivery • harmonisation of the rules of different funds • establishment of common principles on management and control across all the funds • risk-based approach to assurance • mandatory annual closure and clearance of accounts • more use of simplified cost options • setting-up of e-governance systems for data exchange with beneficiaries

  21. Key issues in the debate • Budget allocations • overall budget in the Multi-annual Financial Framework • funding for Cohesion policy • allocations of Structural and Cohesion Funds (and other funds) • Thematic concentration • degree of flexibility with ring-fencing • tensions between thematic and territorial objectives • Conditionalities – rigour, application • Simplification – implications of changes

  22. Thank you for your attention ! john.bachtler@strath.ac.uk

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