A European Cohesion policy perpective Peter Berkowitz European Commission, DG for Regional Policy Conception, forward st

1. A European Cohesion policy perpective Peter Berkowitz European Commission, DG for Regional Policy Conception, forward studies, impact assessment

2. What is cohesion policy for? • “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.” (Lisbon Treaty) • Cohesion policy accounts for around 0,5 % of total GDP in EU. National equalization policies for 15 % of GDP.

3. Budget review • European value added • EU priorities – new challenges, climate change, globalisation, demographic change • Transparencyand accountability • Flexibility • Effectiveness • Efficiency

4. Drawing Lessons Consultation • Discussion of Barca report • Feedback by Member States on the Reflection Paper of Commissioner Hübner • Joint communiqué of Ministers of regional development • Green Paper on territorial cohesion • Consultation with academics, policy analysts Analytical work • Studies • Evaluations • Exchange with the OECD and the World Bank

5. Implications of the crisis • Focus on real economy, infrastructure and exit strategies • Sustainability of public finances • Crisis as structural break in EU economies with impact on fiscal constraints; • Relevance of Stockholm Strategy to all MS (managing demographic change) • Deficit and debt reduction • Increasing employment rates • Reform of social protection systems (pensions) • Increase in quality of public expenditure • Additionality, cofinancing, growth and stability pact

6. Mission and Objectives of Cohesion Policy Mission of the policy • Social and economic cohesion remains central to the European integration process in the 21st century. • Treaty commitment to cohesion, implications of the new Lisbon treaty • A structural policy for all regions linked to the Single Market, Economic and Monetary Union, importance of current crisis Objectives of the policy • The objectives of the policy need to be clarified (risk of mission creep). There is a need for stronger focus on European value-added. • Promoting growth in lagging regions • Improving competitiveness (Lisbon) • Addressing problems with cross-border and transnational spillovers

7. A More Effective Policy • Need for concentration of resources on a limited number of priorities • Addressing key bottlenecks to sustainable growth in lagging regions (linkages and endowments – infrastructure, human capital) • Innovation • Shift to a low-carbon economy • Adapting and anticipating economic and social change, possibility of flexible instrument to tackle emerging challenges • Promoting employment and social cohesion

8. More coherence in the delivery of strategic priorities • Need for better coordination of policies and instruments at EU level. • Lisbon process • Sustainable development • Other Community policies • Possibility of conditionalities (structural reform) and joint programming, single fund? • Stronger focus on institutions and framework conditions

9. Promoting growth in NMS-10, 2007-2013

10. Evaluation, performance and impact • Emphasis in programme design and negotiations on fewer but better indicators focusing on what the programmes want to achieve • Evaluation as an instrument for assessing results as well as a management tool • For a limited number of priorities, agreement on targets and conditionalities set to performance. • High-level political debate on policy effectiveness

11. Delivery Mechanisms • Simplification • More differentiated approach (proportionality) • Increased role of financial engineering • Block grants, budget support, payment for results? • Reinforcement of the role of civil society • Reinforcement of current multi-level governance system respecting both adminstrative structures and economic realities of Member States • Greater role of regional and local actors in implementation of relevant EU priorities (Lisbon etc.)

12. Regional and national expenditure under the convergence objective