EUROPEAN COHESION POLICY AT A GLANCE

Introduction to the EU Structural Funds

Sergej Muravjov Ctibor Kostal www.governance.sk

www.transparency.lt

EU Cohesion policy: background

1957 Treaty of Rome 1958 Setting up of the European Social Fund (ESF) 1962 Creation of the Agricultural Guidance and Guarantee Fund (EAGGF) 1975 Creation of the European Regional Development Fund (ERDF) 1986 The Single European Act lays the ground for EU cohesion policy 1988 Overhaul of the operation of then Solidarity Funds (SF now) 1992 Treaty of European Union establishes cohesion as one of its objectives 1993 The Council creates a new financial instrument for Fisheries

EU Cohesion policy at a glance

The Cohesion Policy programme for 2007-2013:

347 billion or 35.7 % EU budget

Three financial instruments:

European Regional Development Fund European Social Fund Cohesion Fund

EU Cohesion policy at a glance

The Cohesion Policy has three objectives:

Convergence objective
for regions with a GDP below 75% of the Community average (81,5% of the Cohesion policy funds); Regional competitiveness and employment objective for all other regions (16% of the Cohesion policy funds); European territorial cooperation objective for cross-border, transnational and interregional co-operation (2,5% of the Cohesion policy funds).

Convergence objective
The goal: to promote growth-enhancing conditions and factors leading to real convergence for the least-developed Member States and regions.

17 new member states and their 84 regions, 154 million people - with per capita GDP at less than 75 % community average Phasing-out regions 16 regions, 16.4 million people with per capita GDP only slightly above the threshold
The Splits 282.8 billion Convergence regions: 199.3 billion

Phasing-out regions: 14 billion

The Cohesion Fund (15 old EU states): 69.5 billion

Regional Competitiveness and Employment objective

The goal: to strengthen the competitiveness and attractiveness, as well as employment, through anticipation and promotion of economic change and adapting the workforce and investing in human resources.

The Splits 55 billion Euros

19 member states 168 regions 43.6 billion Euros, 314 million people 13 phasing-out regions 11.4 billion Euros, 13 regions, 19 million people

166 %
the financial assistance to new EU member states is 166 % higher than in the previous programming period;

30 %
the old EU15 states will receive 30 % less aid.

The Cohesion Fund

Member States with a Gross National Income less than 90% of the Community average receive a total of 69.5 billion for investment programmes in the fields of

environment and transEuropean transport networks

European Territorial Co-operation objective

The goal: to strengthen cross-border co-operation through joint local and regional initiatives, trans-national co-operation aimed at integrated territorial development and interregional co-operation and exchange of experience.

The Splits 8.7 billion Euros 181.7 million people / 13 transnational co-operation areas Cross-border co-operation 6.44 billion Euros

Transnational co-operation 1.83 billion Euros

Inter-regional co-operation 445 million Euros

Objectives, structural funds & instruments

EU Cohesion policy: funds available

Source: European Commission

EU Cohesion policy: allocation by programs

EU Cohesion policy: allocation by states

Important Stages
Setting up rules regulations
Regulations introduced by the EC Council WG Member States

Programming
Important stage for the partners (NGOs, local authorities etc.) Sets up national rules, priorities, management authorities etc. NSRF and OPs

Implementation
Calls Different types of projects

Evaluations Monitoring

Key actors in SF
EC
DG Regio

Member States
Managing authority Intermediate bodies Certifying authority Audit authority Social partners, local and regional governments Other partners NGOs Final beneficiaries

Role of NGOs
NGOs should participate in the following stages: Programming
Active role in designing national priorities and management system

Implementation
As final beneficiaries As members of selection committees

Evaluation
Taking part in required evaluations Independent evaluations

Monitoring
As member of Monitoring Committee Independent monitoring - watchdog

Legislative background
Period 2007 to 2013
Three main regulations:
Regulation (EC) No 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund Regulation (EC) No 1080/2006 of the European Parliament and of the Council of 5 July 2006 on the European Regional Development Fund Regulation (EC) No 1081/2006 of the European Parliament and of the Council of 5 July 2006 on the European Social Fund

Proposed by the EC Council working group Structural Actions

Regulation general provisions on ERDF, ESF and CF

Reg. has 73 recitals (!) Sets basic principles and rules for SF in 2007-13 such as:
partnership objectives for contributions eligibility criteria management monitoring evaluation programming financial resources available criteria for financial allocations

Regulation general provisions on ERDF, ESF and CF

Partnership principle Art.11
Each Member State shall organize, where appropriate and in accordance with current national rules and practices, a partnership with authorities and bodies such as: (a) the competent regional, local, urban and other public authorities; (b) the economic and social partners; (c) any other appropriate body representing civil society, environmental partners, non-governmental organizations, and bodies responsible for promoting equality between men and women.
Each Member State shall designate the most representative partners at national, regional and local level and in the economic, social, environmental or other spheres (hereinafter referred to as partners), in accordance with national rules and practices... The partnership shall cover the preparation, implementation, monitoring and evaluation of operational programmes.

Regulation general provisions on ERDF, ESF and CF

Objectives
Reducing economic, social and other disparities Objectives 1, 2, 3

Eligibility
For each objective geographical eligibility Obj.1 = GDP per capita is less than 75% of the EU average Obj.2 = other

Regulation general provisions on ERDF, ESF and CF

Principles of assistance = 4C
Complementarity - SF provide assistance which complements national actions Consistency - assistance from the SF is consistent with the activities, policies and priorities of the EU Coordination EC and MS ensure the coordination between the assistance from the Funds, the EAFRD, the EFF and the interventions of the EIB and of other existing financial instruments Compliance operations financed by SF comply with the provisions of the Treaty and of acts adopted under it

Regulation general provisions on ERDF, ESF and CF

Management of SF Set up by MS designation of authorities
Managing authority
Management and implementation of Ops Any public or private body designed by the MS Intermediate bodies

Certifying authority
Draws up and submits certified statements of expenditures and applications for payments

Audit authority
Carries out audits verifying the effective functioning of the management and control system of OPs

Regulation general provisions on ERDF, ESF and CF

Monitoring Monitoring Committee
Considers and approves criteria for selection of support Reviews progress Examines the results of implementation Approves annual and final reports

Regulation general provisions on ERDF, ESF and CF

Evaluation
Aiming to improve the quality, effectiveness and consistency of SF EC can carry out strategic evaluations Ex-ante evaluation
To improve programing and financial allocations

Mid-term evaluation Ex-post evaluation

Effectiveness and efficiency; socio-economic impact

Carried out under the responsibility of the Member State or the Commission by experts or bodies, internal or external, functionally independent of the authorities Results are accessible to the public

Regulation general provisions on ERDF, ESF and CF

Programming NSRF = main framework for MS OPs = priorities and activities Both prepared by MS with inclusion of partners (NGOs)
Working groups on governmental level Importance of one voice

Regulation general provisions on ERDF, ESF and CF

Financial management Sets rules for payments between MS and EC Certifying authority
Responsible for statements of expenditure and applications for payments

Regulation on the ERDF

Defines: Tasks of the ERDF
Redressing regional imbalances

The scope of assistance

Productive investments sustainable jobs Investments in infrastructure Services

Examples of investments: research, innovations, IT,

environment, tourism, culture, transport, energy, education, social infrastructure

Rules on eligibility System of management and control

Regulation on the ESF

Defines: Tasks of the ESF
Improving employment and job opportunities

The scope of assistance

Increasing adaptability of workers, enterprises Enhancing access to employment Modernizations of labor market institutions Social inclusion Enhancing human capital

Rules on eligibility