1 Reflections on the future Cohesion Policy DG Regional Policy European Commission.

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ReflectionsReflections on the on the future Cohesion Policyfuture Cohesion Policy

DG Regional Policy European Commission

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Main stages of the reflection processMain stages of the reflection process

• Fourth Report on Economic and Social Cohesion, 2007• Fifth Progress Report on Economic and Social Cohesion, 2008• Prospective work on 2020 challenges, 2008• Debate on territorial cohesion, 2008• Enhanced dialogue with academia, international organisations• Barca Report April 2009 • 6th Progress Report in June 2009 • Ex-post evaluations and studies 2009• Technical discussions with MS experts begin October 2009• Fifth Cohesion Report 2010

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Budget review

• European value added• EU priorities – new challenges, climate change, globalisation,

demographic change• Transparency and accountability• Flexibility• Effectiveness• Efficiency

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Global challenges have a strong territorial Global challenges have a strong territorial dimensiondimension

• Rapid globalisation, competitive pressures • Population change, migration flows• Global climate change• Rising energy prices, energy security

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Divergent patterns and dynamics across Europe

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Note: Index based on estimated productivity, employment rate, high education rate and low education rate in 2020.

Globalisation

Globalisation vulnerability index,

2020

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Demographic change

Note: Index based on the estimated share of people aged 65 and above in total population, share of working age in total population and population decline in 2020

Source: EUROSTAT

Demographic vulnerability index,

2020

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Note: Index based on change in population affected by river floods, population in costal areas below 5m, potential drought hazard, vulnerability of agriculture, fisheries and tourism, taking into account temperature and precipitation changes.

Source: EUROSTAT, JRC, DG REGIO

Climate change

Climate change vulnerability index,

2020

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Implications of the economic 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

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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

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A policy for all European regionsA policy for all European regions

• The European economic integration, driven by the

Single Market can only work if all regions can

contribute and reap the benefits.

• There is potential for growth across all types of

regions, dependent on how well regions mobilize their

assets and potentials.

• Cohesion policy should play a stronger role in

strengthening inter-connections between lagging and

leading regions (maximising spill-over effects of

leading areas).

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A More Effective Policy

• Need for concentration of resources on a limited number of priorities

– Modernising the economy– Enhancing environmental sustainability– Promoting employment and sociao cohesion

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More coherence in delivering 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

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Delivery Mechanism

• 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.)

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Thank you for your attention!