EU rural development policy – today and after 2013

1. EU rural development policy – today and after 2013 Jean-Bernard Benhaiem DG for Agriculture and Rural Development European Commission

2. Contents • A reminder about rural areas • Why have a rural development (RD) policy at EU level? • RD policy 2007-2013 – structure, budget, achievements • Ongoing challenges for rural areas, Europe 2020 strategy • Objectives and priorities • Links with other funds, structure • Tools (measures) – key areas • Delivery

3. How “rural” is the EU? Predominantly and significantly rural areas account for: 92% of area 53% of employment 45% of gross value creation

4. Land use in the EU • Agriculture and forestry account for 78 % of land use

5. Rural areas are extremely varied • Some rural regions in economic difficulties; others show good rates of growth / employment compared to urban areas • No “typical rural region” in terms of growth and employment: different types of “rurality” determined by the regional “mix of functions” rather than a single economic activity

6. Why have an RD policy at EU level? A policy… • because rural areas face challenges which market forces alone will not solve A common policy… • because challenges do not start / end at national boundaries (climate change!) An EU policy… • to address the particular characteristics of the EU situation With a focus on added value!

7. RD policy in the current period • The only integrated policy addressing all aspects of rural areas: economic, environmental, social • Clear objectives • Pre-defined measures to guarantee targeted outcome and EU value added • Delivery system: strategic approach, flexibility for MS • Monitoring and evaluating system

8. Rural development policy 2007-2013:themes and measures LEADER axis (min. 5%): integrated, bottom up, innovative Axis 1: Competitiveness (min. 10%): Axis 2: Environmentand land management (min.25%): Axis 3: Diversification and quality of life (min.10%): • Farm modernisation • Processing • Infrastructure • Natural disaster aid • Training • Diversification • Tourism • - Micro-enterprises • - Village renewal • - Basic services • LFAs • Natura 2000 • - Agri-environment • - Forestry measures EAFRD: European Agricultural Fundfor Rural Development National and Private Co-financing

9. The strategic approach, 2007-13 1. EU StrategicGuidelines establish the Community Priorities for the period 2007-2013 2. NationalStrategies reflect EU-priorities according to the situation in the Member State concerned 3. Establishment of national or regional programmes on the basis of SWOT analysis 4. Programme measures used by interested parties (farmers and others); results monitored continuously

10. Planned spending on RD policy, 2007-2013 • EAFRD (EU funding): € 96 billion • Total public and private spending: € 232 billion

11. Division of spending between axes

12. 20 17 10 33 What is the policy achieving? (1) Axis 1:Monitoringindicators * September 2010 data %

13. 98 48 57 12 What is the policy achieving? (2) Axis2: Monitoring indicators * September 2010 data %

14. 7 9 40 5 What is the policy achieving? (3) Axis 3 and 4: Monitoring indicators * September 2010 data %

15. Key issues for after 2013 • Ongoing challenges facing rural areas • Overarching goals of EU2020 – general policy context • Links with other EU policies • Structure • Measures • Delivery mechanisms

16. Ongoing challenges facing rural areas Socio-economic challenges Environmental challenges Territorial challenges • GHG emissions • Soil depletion • Water/air quality • Habitats and biodiversity • Vitality of rural areas • Diversity of EU agriculture • Income gaps • Price volatility, risk management • Under-developedrural regions Food security, food safety Synergies and co-ordination with: CAP first pillar, structural funds Contribution to Europe 2020 strategy

17. Europe 2020 strategy • Smart growth - an economy based on knowledge and innovation: • R&D and innovation • Education, training and lifelong learning • Digital society • Sustainable growth - promoting a more resource efficient, greener and more competitive economy: • Competitiveness • Combating climate change • Clean and efficient energy • Inclusive growth - a high-employment economy delivering economic, social and territorial cohesion: • Employment • Skills • Fighting poverty

18. Europe 2020 and RD policy: clear common ground! • INCLUSIVE growth: • Unlocking local potential, diversifying rural economies and developing local markets and jobs • Opening up alternative opportunities to accompany agricultural restructuring • SMART growth: • Supporting innovation and skills, green technologies and uptake of research • Providing incentives for social innovation Ruraldevelopment • SUSTAINABLE growth: • Increasing resource efficiency and the provision of public goods • Reducing GHG emissions, enhancing carbon sequestration and developing bio-energy • Ensuring sustainable land management and addressing biodiversity loss 18

19. Objectives and priorities for RD policy - overview Long-term strategic objectives Competitiveness of agriculture Sustainable management of natural resources Balanced territorial development Interpreted in the light of Europe 2020: smart, sustainable, inclusive growth • Operational priorities with: • areas of intervention • improved target indicators All MS / regions must address these in their RD programmes

20. Getting our priorities right (1) 1. Knowledge transfer in agriculture and forestry • (Cross-cutting priority) • Human capital and smart networking in agriculture & forestry • Innovation, knowledge base in agriculture & forestry • Strengthening links between agriculture & forestry / research & development 2. Competitiveness of agriculture, farm viability • Restructuring of farms facing major structural problems • Generational renewal in agricultural sector

21. Getting our priorities right (2) 3. Food chain organisation, risk management in agriculture • Integrating primary producers into food chain • Supporting farm risk management 4. Preserving & enhancing ecosystems dependent on agriculture & forestry With regard to: • biodiversity / landscapes • water management • soil management • carbon sequestration

22. Getting our priorities right (3) 5. Resource efficiency & transition to low-carbon economy in agri-food and forestry sectors • With a focus on water & energy • Production of (feedstocks for) renewable energy in ag & forestry • Cutting nitrous oxide & methane emissions from agriculture 6. Realising jobs potential & development of rural areas • Diversification & job creation • Social inclusion & poverty reduction • Local development in rural areas

23. Links with other EU funds Common Strategic Framework (CSF) • Sets out, co-ordinates funds’ contributions to Europe 2020 • Provisions for territorial action (including Leader) Joint national frameworks (“Partnership Contracts”?) • Frameworks to co-ordinate funds at national level • Should reflect CSF Rules and procedures • Harmonise as far as possible

24. How should the elements fit together? Common Strategic Framework (CSF) – reflecting Europe 2020 National frameworks – reflecting CSF RD policy Other EU policies (cohesion policy, fisheries) RD programmes: Objectives / priorities Targets Sets of measures

25. What measures will be needed? Current measures (2007-2013) Streamline measure menu Adjust conditions, scope New measures?

26. Measures – some key areas (1) Knowledge transfer • Vocational training, advisory services, demonstrations of new technologies Co-operation: technological • Development / application of technology, techniques, products Co-operation: economic • E.g. short supply chains, sharing of resources Co-operation: environmental • Collective action for better results (e.g. larger areas, bigger projects)

27. Measures – some key areas (2) Business development • Including young farmers Risk management • New toolkit of measures

28. Delivery mechanisms: key elements Strengthening strategic approach and ex-ante evaluation Quantified target levels against common indicators (“target indicators”) for each of the priorities Abolition of the axis system Measures used more flexibly in combination 28

29. CAP after 2013 – timetable 2013 (n-1) 2012 (n-2) 2011 (n-3) 2014 (n) 2010 (n-4) Publicconsultation Conference Communi- cation on CAP after 2013 Publicationof legalproposals Negotiationsbegin with EP, Council Negotiationswith EP and Council over legal proposals Drafting of programmes Implementation of the new policy

30. For further information • CAP Health Check http://ec.europa.eu/agriculture/healthcheck/index_en.htm • EU agriculture and CAP reform http://ec.europa.eu/agriculture/index_en.htm • EU rural development policy 2007-2013http://ec.europa.eu/agriculture/rurdev/index_en.htm • Agricultural Policy Analysis and Perspectives http://ec.europa.eu/agriculture/analysis/perspec/index_en.htm

31. Thank you!