The cohesion policy of the European Union

1. The cohesion policy of the European Union Pelle Anita University of Szeged Faculty of Economics and Business Administration

2. Cohesion policy • the expression has been used for a couple of years • earlier: regional policy, structural policy • this change has somerelevance: • disparities within the EU cannot necessarily only be reduced by decreasing the differences in development of certain territories • the inner cohesion of the EU has to be strengthened in order to improve the EU’s position in the global competition • the first document that calls this EU policy by the new name is: • Third Report on Economic and Social Cohesion, February 2004

3. Principles • have remained unchanged since 1988 • programming – projects are pipelined into multiannual programmes • current period: 2007-2013 • concentration – primarily of resources, implementation of integrated projects • partnership – cooperation between different levels, among local actors • additionality – own resources, national contribution furthermore: • subsidiarity– problems have to be handled at the lowest level possible

4. The cohesion report • other aspects outside regional development: • society’s ageing is putting a constantly increasing burden on active employees and on social security systems • strengthening social cohesion is crucial in the battle against poverty • the ability to create new workplaces makes a considerable contribution to global competitiveness – and not only in territories and industries that are lagging behind! • further factors of competitiveness: infrastructure of all kind, development of human capital, innovation capacities

5. New set of targets • earlier: reduction of regional/territorial disparities • currently: competitiveness – employment – cohesion • further targets: • building a knowledge-based society • social inclusion • sustainable development • completion of the single market

6. Recommendations of the cohesion report • three priorities: • convergence: supporting growth and job creation in the least developed regions • regional competitiveness and employment: anticipating and promoting change • European territorial cooperation: fostering the balanced development of the territory of the EU • more expressive application of subsidiarity in implementation • greater concentration

7. Eligible areas • innovation and knowledge-based society • accessibility and services of general economic interest • not only physical infrastructure but also ICT! • environment and risk prevention • principles: prevention, intervention at source • education, employment and social support systems • adaptability of workers • geographical, professional and organisational mobility • human capital and labour supply

8. Support schemes • non-reimbursable grants are given through: • European Regional Development Fund (ERDF) • support to infrastructural (small scale) projects • European Social Fund (ESF) • support to human projects • Cohesion Fund (CF) • support to (large scale) environmental and transport infrastructure projects • favourable credits and loans (low interest rate, long period) are available at: • European Investment Bank (EIB)

9. Regulation in force(2007-2013) • the three priorities of the cohesion report have been adopted • The Convergence objective is quite close to the previous "Objective 1". It aims to help the least-developed Member States and regions catch up more quickly with the EU average by improving conditions for growth and employment. It covers the Member States and regions whose development is lagging behind. The fields of action will be physical and human capital, innovation, knowledge-based society, adaptability to change, the environment and administrative effectiveness. It will be financed by the ERDF, the ESF and the Cohesion Fund.

10. Regulation in force II.(2007-2013) • The Regional Competitiveness and Employment objective aims to strengthen the competitiveness, employment and attractiveness of regions other than those which are the most disadvantaged. It must help to anticipate economic and social changes, promote innovation, entrepreneurship, protection of the environment, accessibility, adaptability and the development of inclusive labour markets. It will be financed by the ERDF and the ESF.

11. Regulation in force III.(2007-2013) • The European Territorial Cooperation objective aims to strengthen cross-border, transnational and inter-regional cooperation. It is based on the old INTERREG initiative and will be financed by the ERDF. It aims to promote common solutions for neighbouring authorities in the fields of urban, rural and coastal development, the development of economic relations and the creation of networks of small and medium-sized enterprises (SMEs). Cooperation will be based around research, development, information society, the environment, risk prevention and integrated water management.

12. Framework for implementation:objectives 1 and 2 • it is decided at the Member States’ level • the EU regulates the institutional framework, within which the Member States have great freedom • defined at the EU level : • National Strategic Reference Framework (NSRF) • to show the relations between EU targets and the national reform programme • is in force between January 1, 2007 and December 31, 2013 • Operative Programmes (OPs) • based on the NSRF, related to the whole programming period • are the basis for the specific calls for proposals

13. Institutions for implementation:objectives 1 and 2 • according to Member States’ decision • basic orgranisations at the level of the OPs : • Managing Authority (MA) • publishing the calls for proposals, contracting, program level monitoring • Intermediate Bodies (IBs) • take over certain tasks from the MA • Paying Authority (PA) • provides financial assistance on account of payment requests of beneficiaries

14. Framework for implementation:objective 3 • has been developed based on the experiences of INTERREG • three main areas: • joint local and regional cross-border initiatives • transnational cooperation to promote integrated spatial development • interregional cooperation and exchange of views • 37.5 per cent of the EU’s population lives in cross-border areas • budgetary proportions: • 6,44 billion EUR • 1,83 billion EUR • 445 million EUR

15. Other support schemes of the EU I. • the European Union provides financial assistance through other common policies, in order to achieve the common goals • these, except for agricultural policy, are considerably smaller in volume than cohesion policy support • relevant areas: • agricultural policy • environmental policy • research and development policy • enterprise development policy • transport policy

16. Other support schemes of the EU II. • these grants are also available through application for calls • many of these schemes are Brussel-centered • the participation of non-EU-countries is limited (e.g. as partners) or not possible, and it is also influenced by the country’s status (e.g. member of the European Economic Area, Candidate Country, has signed a Stability Agreement) • further information for non-EU-countries: • http://ec.europa.eu/europeaid/index_en.htm

17. Thank you for your attention!