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EUROPEAN COMMISSION

Brussels, 14.3.2012

SWD(2012) 61 final

Part I

COMMISSION STAFF WORKING DOCUMENT

Elements for a Common Strategic Framework 2014 to 2020

the European Regional Development Fund

the European Social Fund,

the Cohesion Fund,

the European Agricultural Fund for Rural Development and

the European Maritime and Fisheries Fund


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Elements for a Common Strategic Framework 2014 to 2020 for

the European Regional Development Fundthe European Social Fund,

the Cohesion Fund,



This staff working document has been drawn up on the basis of the proposals for regulations

adopted by the European Commission on 6 October 2011, 12 October 2011 and 2 December

2011. It does not prejudge the final nature of the acts, nor the content of any delegated or

implementing acts that may be prepared by the Commission.


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1. INTRODUCTION

Europe needs to put its economy back on a sustainable growth path. This requires a

combination of budgetary consolidation, structural reforms, and environmentally sustainable

growth-enhancing investments.

The European Regional Development Fund (ERDF), the European Social Fund (ESF), the

Cohesion Fund (CF), the European Agricultural Fund for Rural Development (EAFRD) and

the European Maritime and Fisheries Fund (EMFF) pursue complementary policy objectives

and their management is shared between the Member States and the Commission. They are

the main source of investment at EU level to help Member States to restore and increase

growth and ensure a job rich recovery while ensuring sustainable development, in line with

Europe 2020 objectives.

The Treaty on the Functioning of the European Union (TFEU) assigns clear objectives to

these instruments. The Commission considers that they can be more effectively pursued if thefive Funds are better coordinated to avoid overlaps and maximise synergies, integrated fully

into the economic governance of the European Union, and contribute to the delivery of

Europe 2020 by engaging national, regional and local stakeholders.

This is why the Commission has proposed a Common Provisions Regulation for all five

Funds. The proposal provides for much closer coordination of the funds to achieve:

concentration of resources on the objectives of Europe 2020 through a common set ofthematic objectives to which the funds will contribute;

simplification through more coherent planning and implementation arrangements; a reinforced focus on results through a performance framework and reserve; harmonisation of eligibility rules and an extension of simplified cost options to reduce

the administrative burden for beneficiaries and managing authorities.

Furthermore, the proposal foresees the adoption of Partnership Contracts which will set out

the commitments of the partners at national and regional level. These contracts will be linked

to the objectives of the Europe 2020 Strategy and the National Reform Programmes. They

will set out "an integrated approach for territorial development supported by all CSF Funds".1

In order to facilitate the development of Partnership Contracts and programmes, the proposal

foresees the adoption of a Common Strategic Framework (CSF). The CSF should increase

coherence between policy commitments made in the context of Europe 2020 and investment

on the ground. It should encourage integration by setting out how the funds can work

together. It will provide a source of strategic direction to be translated by Member States and

regions into the programming of the CSF Funds in the context of their specific needs,

opportunities and challenges.

1 COM(2011) 500/II final, Communication from the Commission to the European Parliament, the Council,the European Economic and Social Committee and the Committee of the Regions 'A Budget For Europe2020 - Part II - Policy Fiches', p. 5.


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The purpose of this Staff Working Document is to set out the main elements of the CSF as a

basis for discussion with the European Parliament and the Council. These include:

for each of the thematic objectives set out in the proposal for the Common ProvisionsRegulation,

o the main Europe 2020 targets and policy objectives that should be addressed byMember States in their Partnership Contracts, closely linked to their National

Reform Programmes,

o and key actions, corresponding to investment priorities and Union priorities,which are expected to generate the greatest impact on growth, jobs and

sustainability during implementation of the programmes;2

the linkages with the governance process of the European Semester;

the coordination and integration of the CSF Funds;

horizontal principles and policy objectives for the implementation of the CSF Funds; the development of Partnership Contracts and programmes to address the territorial

challenges of smart, sustainable and inclusive growth;

priorities for cooperation activities.The document addresses each of these elements in the following sections.

2. THEMATIC OBJECTIVES AND KEY ACTIONS

In June 2010, the European Council adopted the Europe 2020 Strategy with the aim of

stimulating smart, sustainable and inclusive growth. The strategy spells out EU headline

targets for research and innovation, climate change and energy, employment, education and

poverty reduction for 2020, to be translated into national targets. The Europe 2020 Integrated

Guidelines3and seven flagship initiatives set out in more detail the path towards sustainable

and job-creating growth.4However, in order to maximise the contribution of the CSF Funds,

this strategy needs to be further developed within national and regional contexts. In this way,

economic, social and territorial cohesion can be at the heart of the Europe 2020 strategy

2 The proposal for Common Provisions Regulations establishes a hierarchy of objectives in which thematicobjectives, based on Europe 2020, are common to all five CSF Funds. These are translated into investment

priorities (ERDF, ESF, CF) and Union priorities (EAFRD and EMFF) specific to each Fund (and set out inthe proposals for the ERDF, ESF, CF, EAFRD and EMFF regulations. Each programme should describe theactions to deliver the investment priorities and Union priorities for each of the CSF Funds. Programmesshould take into account those key actions which are expected to generate the greatest impact on growth,jobs and sustainability in the specific context of a Member State or region.

3 Council Recommendation of 13 July 2010 on broad guidelines for the economic policies of the MemberStates and the Union (OJ L 191, 23.07.2010, p. 28) and Council decision of 21 October 2010 on guidelinesfor the employment policies of the Member States (OJ L 308, 24.11.2010, p. 46).

4

Digital agenda for Europe, Innovation Union, Youth on the move, Resource efficient Europe, Anindustrial policy for the globalisation era, An agenda for new skills and jobs and European platformagainst poverty.


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ensuring that all energies and capacities are mobilised and focused on the pursuit of the

strategy's priorities.

The proposal for the Common Provision Regulation identifies eleven thematic objectives. By

identifying the main goals of Europe 2020 to be addressed by the CSF Funds and the range of

key actions that could be carried out together under these thematic objectives, the CSF canprovide further guidance on how the CSF Funds can most effectively target growth in the

Partnership Contracts and programmes:

the ERDF will contribute to all thematic objectives and focus on areas of investmentlinked to the context in which firms operate (infrastructure, business services, support

for business, innovation, ICT and research) and to the provision of services to citizens

in certain areas (energy, on-line services, education, health, social and research

infrastructures, accessibility, quality of the environment). The Cohesion Fund will

focus on improving the environment, sustainable development and TEN-T;

the ESF will be programmed under four thematic objectives: employment and labourmobility; education, skills and lifelong learning; promoting social inclusion andcombating poverty as well as administrative capacity building. Actions supported by

the ESF will, however, also contribute to the other thematic objectives;

the EAFRDs six priorities will target smart, sustainable and inclusive growth in theagricultural, food and forestry sectors and in rural areas as a whole. They cover

knowledge transfer and innovation, the competitiveness of agriculture, management

of natural resources and climate action, and the inclusive development of rural areas;

the EMFF priorities, in line with the Common Fisheries Policy reform, will focus onthe viability and competitiveness of fisheries and aquaculture, while at the same timesupporting their environmental sustainability. The EMFF will promote social

cohesion and job creation in fisheries dependent communities, in particular through

diversification into other maritime sectors, as well as action in the field of Integrated

Maritime Policy.

Annex I sets out in an integrated manner for each of the thematic objectives the main goals to

be addressed, the key actions for each CSF Fund and corresponding general implementation

principles to ensure effective and efficient use of the funds.

3. COHERENCE AND CONSISTENCY WITHEUECONOMIC GOVERNANCE

The Europe 2020 strategy constitutes the policy framework for the European Union in the

current decade: its five headline targets define where the EU wants to be in 2020 and the

Integrated Guidelines set out the policy orientations for the medium-term. In order to deliver

results, stronger economic governance has been put in place. It translates the Europe 2020

thematic priorities and targets into an annual cycle of multilateral surveillance centred on

national reporting and country specific recommendations.

In January 2011, the first European Semester on policy coordination was launched with the

presentation of the Annual Growth Survey (AGS). Every year the AGS identifies the priority

actions for the European Union, including growth-enhancing measures, for the followingtwelve months in the context of the overall Europe 2020 strategy consistent with its longer

term priorities. Each Spring, the Member States present National Reform Programmes


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(NRPs) outlining policy measures to address the AGS policy priorities and Euro Plus Pact

commitments in order to boost growth and jobs and reach national targets set in relation to

European headline targets. Stability and Convergence Programmes (SGP) ensure sound

public finances. On the basis of a detailed assessment of the NRPs and SGPs, the Commission

proposes country-specific recommendations (CSRs) which are then endorsed by the June

European Council. The CSRs should then feed into the economic and budgetary decisions inthe second half of the year and in the NRPs the following year.

The country-specific recommendations relevant to the CSF Funds are those of a long-term

nature, reflecting deep underlying structural challenges that need to be addressed by multi-

annual investment strategies. Some of the recommendations will be regulatory in character.

However, others will be of direct relevance to the areas of intervention of the CSF Funds

requiring a combination of regulation and budgetary decisions, including public investment.

Examples of relevant countr y specif ic recommendations

- Recommendations linked to the Broad Economic Policy Guidelines concern growth-enhancingmeasures defined in National Reform Programmes: in particular those related to research andinnovation, to ICT infrastructure and services; enhancing the capacity of SMEs to grow andinternationalise, including enhanced access to non-bank funding; new sources of growth such as low-carbon technologies, energy efficiency or renewable energies; support for waste and water management

and price-setting schemes and the sustainable exploitation and management of natural resources; to thesetting up of multiannual plans for investment in railway, infrastructures; and health systems reform.

- Recommendations based on the Employment Guidelines, in particular those to increase theeffectiveness of active labour market policies and to improve the capacity of the Public Employment

Services, to promote gender equality and foster a better work balance, to better integrate vulnerablegroups on the labour market, to improve educational outcomes, to adapt skills to labour market needs,

to adopt and implement comprehensive lifelong learning strategies, to tackle early school leaving andimprove access to education.

The CSF Funds have a central role to play in supporting the measures outlined by the country-

specific recommendations to bring about necessary structural change and address gaps in

relation to the Europe 2020 headline targets. In particular, the Commission has highlighted in

the 2012 Annual Growth Survey that Member States should give particular attention to

prioritising growth-friendly expenditure, such as spending on education, research, innovation

and energy and ensuring the efficiency of such spending. Particular attention should also be

paid to maintaining or reinforcing the coverage and effectiveness of employment services and

active labour market policies, with a focus on youth unemployment, and to facilitating the

access of SMEs to finance.

In preparing their Partnership Contracts, the Member States and regions need to programme

the CSF Funds taking into account the most recent relevant country-specific

recommendations issued by the Council on the basis of Articles 121(2) and 148(4) TFEU and

reflecting their National Reform Programmes. Member States should also take into account

Council recommendations based on the Stability and Growth Pact. Each Member State should

set out in the partnership contract how different EU and national funding streams contribute to

addressing the challenges identified by the country-specific recommendations concerned.

The global context in which the CSF Funds operate can change and new priorities may

emerge, so the programming mechanisms of the CSF Funds need to be flexible enough torefocus financial resources to address these new critical challenges. The Commission proposal

foresees that where there are relevant changes in the Union Strategy for Smart, Sustainable


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and Inclusive Growth, the Common Strategic Framework and the Partnership Contracts can

be revised. Furthermore, the Commission may request a Member State to review and propose

amendments to its Partnership Contract and relevant programmes to support the

implementation of a country-specific recommendation.

4. REINFORCING COORDINATION AND INTEGRATION

In its proposals for a Multiannual Financial Framework, the Commission has set out an

ambitious agenda to simplify and rationalise the EU budget.5In line with this approach, it has

proposed in the Common Provisions Regulation a framework to ensure greater cross-sector

consistency and coordination as well as to encourage potential synergies. These

rationalisation measures should facilitate the submission and the processing of applications

for financial assistance and reduce the administrative burden for applicants and beneficiaries

of the CSF Funds. At the same time, it has sought greater harmonisation of rules within both

the Financial Regulation and between sector-specific regulations to promote simplification

and coordination.

4.1. Coordination mechanisms among the CSF Funds

The basis for coordination between the CSF Funds is provided through a common delivery

framework established in the proposal for the Common Provisions Regulation. Delegated and

implementing acts will further enhance coordination and consistency between the CSF Funds.

The integration of the CSF Funds in each Member State's Partnership Contract provides a

framework for close coordination to ensure that interventions financed create synergies and

that streamlining leads to a reduction of administrative cost and administrative burden on the

ground.

It is essential that Member States ensure that all ministries and managing authoritiesresponsible for the implementation of the CSF funds work closely together in the preparation,

implementation, monitoring and evaluation of the Partnership Contract and programmes. The

Partnership Contracts should set out the arrangements for ensuring this coordination and the

concrete measures that will be taken to maintain this coordination throughout the

programming period. Such coordination should include:

the identification of areas of intervention where the CSF Funds can work together in acomplementary manner to achieve the thematic objectives set out in the proposed

Common Provisions Regulation. This can be achieved by close coordination of

programming under different monofund programmes. Alternatively, Member States

have the option to prepare and implement multifund programmes combining theERDF, ESF and the Cohesion Fund in a single programme;

the involvement by managing authorities responsible for one of the CSF Funds ofother managing authorities and relevant ministries in the development of support

schemes to ensure synergies and avoid overlaps;

the establishment, where appropriate, of joint monitoring committees for programmesimplementing CSF Funds, and the development of other joint management and

control arrangements to facilitate coordination between authorities responsible for the

implementation of CSF Funds;

5 COM(2012) 42 final, 'A Simplification Agenda for the MFF 2014-2020'.


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greater use of joint eGovernance solutions aimed at applicants and beneficiaries and"one-stop shops" for advice on possibilities of support from all CSF Funds can

contribute greatly to reducing the administrative burden for beneficiaries.

4.2.

Coordination mechanisms for the CSF Funds with other EU policies andinstruments

It is imperative to ensure the consistency of actions financed from the CSF Funds with other

EU policies. The EAFRD and the EMFF in particular are essential parts of the overall policy

framework for the common agricultural policy, the common fisheries policy and the

integrated maritime policy. Furthermore, investment from all the CSF Funds can directly

support the achievement of objectives established under other Union policies in areas such as

environment, climate action, education and employment, but also indirectly in areas such as

the single market. Member States should ensure consistency at programming and

implementation stages between interventions supported by the CSF Funds and the objectives

of these policies.

In many areas, more than one EU instrument can provide resources to support the

achievement of Europe 2020 objectives. These instruments may be under shared management

with the Member States in areas such as justice and home affairs, but also under direct

management of the Commission, such as the Connecting Europe Facility in the field of

infrastructure, Horizon 2020 in the area of research and innovation, the Erasmus for All

programme in the field of education and training, the Leonardo da Vinci programme for

vocational education and training, the Programme for Social Change and Innovation in the

area of employment and social inclusion or the LIFE programme in the areas of environment

and climate action. In these policy domains, it is important that Member States and regions

identify and exploit complementarities between different Union instruments at national andregional level, both in the phase of planning and during implementation.

They should establish structures that facilitate the strategic identification of priorities for the

different instruments and structures for coordination at national level. Such structures should

also seek to avoid duplication of effort and identify areas where additional financial support is

needed. These structures should be set out in the Partnership Contract, and where appropriate,

in programmes.

Member States should also make full use of the possibility to integrate support from different

instruments to support individual operations. This has been facilitated by the harmonisation of

rules applied to different Union instruments at EU level. Furthermore, it will be particularlyimportant that national and regional authorities responsible for the implementation of the CSF

Funds work closely with those responsible for implementing other national instruments to

deliver coherent and streamlined funding opportunities for beneficiaries.

The scope for complementarity between the CSF Funds and other Union policies and

instruments is set out in greater detail in Annex I under each of the thematic objectives.


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4.3. Encouraging integrated approaches to the delivery of the CSF Funds

The Common Provisions Regulation proposes a number of mechanisms to encourage

integrated approaches to programming, to achieve coordination and synergies during

implementation. Member States should set out in their Partnership Contracts and programmes

how they intend to make use of these to achieve integration.

In order to promote integrated approaches to territorial development, the proposal for a

Common Provisions Regulation provides for two mechanisms to facilitate the development of

local and sub-regional approaches. These are Community Led Local Development and

Integrated Territorial Investments for the ERDF, ESF and Cohesion Fund. Both seek to

engage regional and local actors and local communities in the implementation of

programmes.

Commun ity-led local development

Community-led local development (based on the experience of LEADER under rural development) cancomplement and enhance the delivery of public policies for all CSF Funds. It aims at increasing effectivenessand efficiency of territorial development strategies by delegating decision-making and implementation to a localpartnership of public, private and civil society actors. Community-led local development should be implementedin the context of a strategic approach followed by public policy-makers, to ensure that the bottom-up definitionof local needs takes account of priorities set at a higher level. Member States will therefore have to define theapproach to community-led local development across the CSF Funds and should include references to

community-led local development in the Partnership Contracts. The Partnership Contract should detail the mainchallenges that Member States intend to tackle, setting out the main objectives and priorities and indicate thetypes of territories where this approach should be implemented and which specific role will be attributed to thelocal action groups in its delivery. In addition, they should indicate how the CSF Funds will be used together andexplain the role envisaged for the different Funds in different types of territories (rural, urban etc.). Under theEAFRD, LEADER will continue to be a compulsory element in each rural development programme.

I ntegrated terr itor ial investments for the ERDF , ESF and Cohesion F und

An Integrated Territorial Investment (ITI) is an instrument which provides for integrated delivery arrangementsfor investments under more than one priority axis of one or more operational programmes. Funding from several

priority axes and programmes can be bundled into an integrated investment strategy for a certain territory orfunctional area. This can take the form of an integrated strategy for urban development, but also for inter-

municipal cooperation in specific territories. It allows the managing authorities to delegate the implementation ofparts of different priority axes to one body (a local authority) to ensure that investments are undertaken in acomplementary manner. Within an ITI certain components can be implemented through community-led localdevelopment, combining the two approaches.

The proposed Common Provisions Regulation also introduces new mechanisms to encouragethe development of integrated operations. This allows the joint implementation by a single

beneficiary of a number of projects from different sources within the CSF Funds, and in

certain cases from other EU instruments.

I ntegrated Operations

Unlike the current period, an operation may receive support from one or more CSF Funds and from other Unioninstruments. This is subject to the condition that an expenditure item is not funded twice under the CSF Funds orother Union instrument. This would allow, for example, a single operation to receive support from both theERDF and the ESF, or the ERDF and Horizon 2020.


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Joint Action Plans

A Joint Action Plan is a new type of integrated operation implemented through a result based approach in orderto achieve specific objectives jointly agreed between the Member State and the Commission. It comprises a

group of projects which are carried out under the responsibility of a designated beneficiary. In practice the

financial management of the Joint Action Plan will be exclusively based on the outputs and the results it seeks toachieve. The Joint Action Plan may be funded by the ESF and the ERDF. However, it may not be used tosupport infrastructure. It may be part of one or several operational programmes and thus may constitute a usefulinstrument to foster better integration of the different Funds towards a common objective.

5. HORIZONTAL PRINCIPLES AND POLICY OBJECTIVES

The proposal for the Common Provisions Regulation contains horizontal provisions and

policy objectives which apply to the implementation of the CSF funds.

Promotion of equal ity between men and women and non-discr imination

Member States should pursue the objective of equality between men and women as set out in

Article 8 of the TFEU and ensure its mainstreaming in the preparation, implementation,

monitoring and evaluation of actions under all the CSF Funds. ERDF, ESF and Cohesion

Fund programmes should explicitly specify the expected contribution of these Funds to

gender equality, by setting out in detail objectives and instruments. Gender analysis should be

included in the analysis of the objectives of the intervention. The participation of the relevant

bodies responsible for promoting gender equality in the partnership should be ensured. It is

strongly recommended to organise permanent structures or explicitly assign a function to

existing structures to advise on gender equality in order to provide the necessary expertise in

the preparation, monitoring and evaluation of the CSF Funds.

Monitoring systems and data collection are also essential to provide a clear picture of how

programmes are meeting gender equality objectives. In this respect, rather than a general

requirement to address these issues in all evaluation activities, it is recommended that

managing authorities, in conjunction with the monitoring committees, should undertake either

general self-assessment exercises, specific evaluation studies or a structured reflection

focusing on the application of the gender mainstreaming principle. The composition of the

monitoring committees should be gender balanced and should include a gender

expertise/responsibility function.

Member States should take appropriate steps to prevent any discrimination based on sex,racial or ethnic origin, religion or belief, disability, age or sexual orientation6 as well as to

ensure accessibility during the preparation and implementation of programmes and operations

co-financed by the CSF Funds and describe explicitly the actions to take into account this

principle in the programmes.

6 This does not prevent any Member State from maintaining or adopting positive actions to prevent orcompensate for disadvantages linked to any of these grounds (Art. 5 of Council Directive 2000/43/EC of 29June 2000 implementing the principle of equal treatment between persons irrespective of racial or ethnic

origin (OJ, L 180, 19.07.2000, p. 22) and Art. 7 of Council Directive 2000/78/EC of 27 November 2000establishing a general framework for equal treatment in employment and occupation (OJ L 303, 2.12.2000, p.16).


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The opinion issued by the equality bodies on the programmes for the ESF, ERDF and

Cohesion Fund aims to ensure that all necessary provisions are in place. In addition, the

involvement of equality bodies or other organisations active in combating discrimination is

strongly recommended in order to provide the necessary expertise in the preparation,

monitoring and evaluation of the Funds.

All programmes will need to combat discrimination and promote equal opportunities as well

as to ensure accessibility for persons with disabilities during their preparation and

implementation. Accessibility should be a characteristic of all products and services offered to

the public and co-financed by the CSF Funds. In particular, accessibility to the built

environment, transport and information and communication, including new technologies,

should be required by the Managing Authorities. Besides the principle of mainstreaming,

Member States will need to put in place positive actions to be supported by the ESF to

promote equal opportunities.

Sustainable development

Sustainable development requires compliance with the environmental acquis.Since the CSF

Funds are the major source of EU funding for the environment, the Funds also need to

contribute substantially to environmental enhancement, and at least 20% of the EU budget in

the period 2014-2020 should be allocated to climate change objectives. It is therefore essential

that Member States provide timely and comprehensive information on the amount of climate

related expenditure in accordance with the methodology set out in the Common Provisions

Regulation. Member States should track biodiversity-related expenditure based on the

proposed reporting arrangements.

To ensure the horizontal integration of sustainable development, the polluter pays principle as

set out in Article 192 of the Treaty on the Functioning of the European Union implies thatthose who cause environmental damage should bear the costs of avoiding it or compensating

for it. As a general rule, this means that funding should not be used to meet the costs of

complying with existing legislation. The polluter pays principle should be systematically

applied across programmes and projects. The polluter pays principle also applies to funding

provided for potentially environmentally harmful activities, particularly the financing of

infrastructure. In such cases, funding should be provided only if user charging and the

internalisation of externalities do not cover the cost of the investment and the cost of any

harm caused. At the same time it should be shown that overall the investment results in net

social benefits.

In certain cases it may not be possible to apply the user pays and polluter pays principles, or itmay only be possible to apply it partially:

if the cost of measures to protect the environment are deemed disproportionate for thepublic authorities of Member States, the Treaty on the Functioning of the European

Union provides for financial support from the Cohesion Fund;

if the source of pollution or the user of natural resources is the general population, itmay not be possible in low-income regions to cover the entire cost of avoiding

environmental damage or the cost of producing the resource by charging users (for

example, in the case of waste water treatment or waste where EU legislation allows for

social aspects to be taken into consideration);


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if the polluters cannot be identified and legal liability for environmental damage cannotbe assigned to the polluter or other stakeholders (for example, contaminated land where

contamination cannot be clearly assigned to the polluter)7.

Support from the EAFRD can be provided to land managers where mandatory environmental

requirements create area-specific disadvantages.

Investments made with the support of the CSF-Funds should be resilient to the impact of

climate change and natural disasters (increased risks of flooding, heat waves, extreme weather

events, etc.).

6. MEETING THE TERRITORIAL CHALLENGES OF SMART, SUSTAINABLE AND INCLUSIVE

GROWTH

The major societal challenges faced by the European Union today - globalisation,

demographic change, environmental degradation, migration, climate change and energy use as

well as the need to cope with the economic and social consequences of the crisis - will havedifferent impacts in different regions.8The capacity of Member States and regions to achieve

smart, sustainable and inclusive growth depends on their specific development potential and

their assets in terms of human, physical and natural capital, knowledge, institutions and

networks. This in turn requires that programmes under the CSF Funds reflect the diversity of

European regions, whether in terms of employment and labour market characteristics,

commuting patterns, population ageing and demographic shifts, cultural, landscape and

heritage features, climate change vulnerabilities and impacts, land use and resource

constraints, institutional and governance arrangements, connectivity or accessibility, and

linkages between rural and urban areas. Member States and regions should therefore take into

account five elements when designing their Partnership Contracts and programmes:

the first element is an analysis of the Member States or regions development potentialand capacity, particularly in relation to the key challenges identified in Europe 2020, the

National Reform Programmes and the relevant country-specific recommendations. This

requires the responsible authorities to undertake a detailed analysis of national, regional

and local characteristics;

the second element, building directly on the first element, is an assessment of the majorchallenges to be addressed by the region or Member State. Central to this process is the

identification of the bottlenecks and missing links, innovation gaps, including the lack

of planning and implementation capacity that inhibit the long-term potential for growth

and jobs. This will highlight the possible fields and activities for policy prioritisation,intervention and concentration;

many of the societal and environmental challenges faced by EU regions and MemberStates transcend administrative boundaries and national borders. The third element,

therefore, requires consideration of the cross-sectoral, cross-jurisdictional or even cross-

border coordination challenges, particularly in the context of macro-regional and sea-

basin strategies;

7 See in particular paragraph 132 in the Community guidelines on state aid for environmental protection

(OJ C 82, 1.4.2008, pp. 1-33).8 Commission Staff Working Document, Regions 2020 An assessment of future challenges for EUregions, November 2008.


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fourthly, in many cases, an integrated approach linking Europe 2020 with regional andlocal actors will require improved coordination across different territorial levels and

sources of funding. The Partnership Contract will be a key element in developing such

an approach;

the fifth element involves developing a Partnership Contract and programmes based onthe thematic objectives set out in the proposal for the Common Provisions Regulation todeliver results. The specific objectives of each programme should therefore be

expressed by appropriate result indicators to capture the changes that the programme is

intended to facilitate.

The development of Partnership Contracts and programmes which take into account these

elements will allow Member States and regions to build on the European Unions diversity in

a manner appropriately tailored to local challenges, knowledge and possibilities. Such an

approach will provide a solid basis to identify how the CSF Funds can best operate together to

unlock the potential to achieve smart, sustainable and inclusive growth.

The Lisbon Treaty has added territorial cohesion to the principles of economic and social

cohesion, and it is clear that geographic or demographic features can intensify development

problems9. This overall approach to promoting smart, sustainable and inclusive growth will

therefore have to reflect the role of cities, rural areas, fisheries and coastal areas, areas facing

specific geographical or demographic problems. It will also have to take account of the

specific challenges of the outermost regions, the northernmost regions with a very low

population density and of island, cross-border or mountain regions, as explicitly recognised

by the Lisbon Treaty. Finally, territorial cohesion also means addressing urban-rural linkages,

in terms of access to affordable, quality infrastructures and services, and problems in regions

with a high concentration of socially marginalised communities.

7. PRIORITIES FOR COOPERATION ACTIVITIES

The challenges faced by regions and Member States often cut across national and regional

boundaries. An effective response requires joint, cooperative action and sharing of knowledge

at the appropriate territorial level. This action should be supported by both the ERDF and the

ESF. Where macro-regional and sea basin strategies have been put in place, all the CSF funds

should support their implementation.

In order to ensure the effective contribution of European territorial cooperation programmes

to the objectives of the Europe 2020 strategy and to avoid the fragmentation of the availablefunding, it is necessary to concentrate ERDF resources and ensure coordination with other

EU-funded programmes. Particular attention should be dedicated to addressing the cross-

border challenges confronting outermost regions and sparsely populated areas.

In order to enhance the effectiveness of policies supported by the ESF through mutual

learning, it is important to promote transnational cooperation between partners at national

and/or regional level.

9 COM(2010) 642 final, Communication from the Commission, Conclusions of the fifth report on economic,

social and territorial cohesion: the future of cohesion policy, p. 7.


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Annex II sets out in greater detail the areas which should be the focus of territorial

cooperation activities.


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EUROPEAN COMMISSION

Brussels, 14.3.2012

SWD(2012) 61 final

Part II


Elements for a Common Strategic Framework 2014 to 2020

the European Regional Development Fund

the European Social Fund,

the Cohesion Fund,



ANNEXES


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Contents

Annex I: Thematic Objectives

1. STRENGTHENING RESEARCH, TECHNOLOGICAL DEVELOPMENT AND INNOVATION.. 32. ENHANCING ACCESS TO AND, USE AND QUALITY OF INFORMATION ANDCOMMUNICATION TECHNOLOGIES ............................................................ .............................................. 73. ENHANCING THE COMPETITIVENESS OF SMES, THE AGRICULTURAL SECTOR (FORTHE EAFRD) AND THE FISHERIES AND AQUACULTURE SECTOR (FOR THE EMFF) ................ 104. SUPPORTING THE SHIFT TOWARDS A LOW-CARBON ECONOMY IN ALL SECTORS...... 135. PROMOTING CLIMATE CHANGE ADAPTATION AND RISK PREVENTION ANDMANAGEMENT ........................................................... ............................................................... ...................... 176. PROTECTING THE ENVIRONMENT AND PROMOTING RESOURCE EFFICIENCY ............ 197. PROMOTING SUSTAINABLE TRANSPORT AND REMOVING BOTTLENECKS IN KEYNETWORK INFRASTRUCTURES....................................................................... .......................................... 238. PROMOTING EMPLOYMENT AND SUPPORTING LABOUR MOBILITY................................. 269. PROMOTING SOCIAL INCLUSION AND COMBATING POVERTY ........................................... 3010. INVESTING IN EDUCATION, SKILLS AND LIFELONG LEARNING...................................... .... 3511. ENHANCING INSTITUTIONAL CAPACITY AND ENSURING AN EFFICIENT PUBLICADMINISTRATION............................................................ ................................................................... ........... 39

Annex II: Priorities for cooperation


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ANNEX I:THEMATIC OBJECTIVES

1. STRENGTHENING RESEARCH,TECHNOLOGICAL DEVELOPMENT AND INNOVATION

1.1 Key targets and objectives addressed by the CSF Funds

Europe 2020 headline target:

Improving the conditions for research and development, in particular with the aim of

bringing combined public and private investment levels in this sector to 3 % of GDPState of play:

By 2020 and based on national targets, the EU would still fall short of the 3% target by

approximately 0.3 percentage points. The R&D investment rate stood at 2.01% in 2009.1.

Europes competitiveness, our capacity to create millions of new jobs to replace those lost in

the crisis and, overall, our future standard of living depends on our ability to drive innovation

in products, services, business and social processes and models.2 The major focus for the

Funds is therefore to address bottlenecks to innovation and increase investment in business

research and development through close collaboration between public and private actors.

Key actions for the ERDF:

innovation in enterprises. This includes the dissemination and adoption of newtechnologies, in particular key enabling technologies, through cooperation with actors in

the world of research and education, technology transfer, applied research, technologydevelopment and demonstration facilities, in order to help companies develop more

innovative products, processes, marketing and services and diversify the

national/regional economy through new high-growth activities;

capacity-building in Member States and regions for R&I excellence and technologicalchange, by investing in innovative solutions and research infrastructures and equipment,

in particular those of European interest in the context of Joint Programming Initiatives 3,

the ESFRI ('European Strategy Forum on Research Infrastructures')4 research

infrastructures, the development of the Regional Partner Facilities and within the

Strategic Energy Technology Plan5. This includes support for national/regional research

facilities and technology centres, competence centres and science parks, with a clearfocus on enhancing applied research, through reinforced cooperation with industry to

1 COM(2011) 815 final, AGS 2012 Annex I.

2 COM(2010) 546 final, Communication from the Commission to the European Parliament, the Council, the

Economic and Social Committee and the Committee of Regions, Europe 2020 Flagship Initiative -Innovation Union.

3 Special competence could be build up in key areas for industry and economic development like the

metrology sector, as part of the European Metrology Research Programme, which supports capacity buildingin certain countries/regions through a joint programme between 22 countries and the European Union.

4 Innovation Union Commitment 5, COM (2010) 546 final, Communication from the Commission to the

European Parliament, the Council, the Economic and Social Committee and the Committee of Regions'Europe 2020 Flagship Initiative - Innovation Union.5 COM(2009) 519 final,'Investing in the Development of Low Carbon Technologies (SET-Plan)'.


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leverage private R&I investment;

capacity-building in Member States and regions for the swift economic exploitation ofnew ideas stemming from research and innovation (R&I). This includes support for

clusters, cooperative partnerships between research, education and innovation actors,

business R&I infrastructures, promotion of R&I business advisory services, also in thefield of services, creative hubs, cultural and creative industries and social innovation,

pilots and demonstration activities, and creating more demand for innovative products

through public procurement of innovation.

Key actions for the EAFRD:

Fostering innovation and the knowledge base in rural areas, through:

cooperation between the agriculture, food and forestry sectors and other actors and thecreation of clusters and networks. Cooperation in this context may take the form of pilot

projects and the development of new products, practices, processes and technologies,including the introduction of low carbon and green technologies;

the establishment and use of advisory services, including farm management and farmand forestry advisory services, while also enabling farmers, forest holders and SMEs in

rural areas to access advisory services in order to improve economic and environmental

performance.

Strengthening the links between agriculture and forestry and research and innovation through:

setting up operational groups bringing together farmers, researchers, advisors, civilsociety and businesses involved in the agriculture and food sectors in order to develop

and implement innovative projects on topics of common interest. These operational

groups will form part of the European Innovation Partnership for agricultural

productivity and sustainability.

1.2 General implementation principles

The Flagship Initiative "Innovation Union" has highlighted that the funds should be fully

exploited to develop research and innovation capacities across Europe, based on smart

specialisation strategies. These can ensure a more effective use of public funds and can

stimulate private investment6. Such strategies will provide the context for investment in

research and innovation and will focus these activities on the specific economic strengths andpotentials of regions and Member States, identify niche specialisations, technological

diversification and differentiation in products, processes and services, and help avoid

duplication and fragmentation of policy effort.

R&I investments are relevant for all types of regions in the EU. However, the focus of

investment will reflect the level of development: technologically leading regions will focus on

remaining ahead while peripheral regions will seek to catch up and build stairways to

excellence. Building up research and innovation capacity7 and increasing accessibility to

6 COM(2011) 17 final, Communication from the Commission 'Regional Policy contributing to smart growth

in Europe 2020'.7 Policy implications arising from ex-post evaluations of Cohesion Policy programmes 2000-2006 co-financed by the ERDF (Objective 1 &2), Synthesis report, March 2010.


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knowledge and R&I absorption by focusing on technology transfer or co-inventing

applications of generic technology in one or more important domains of the national/regional

economy8 and commercialising research results will be of particular relevance for the less

developed and transition regions, to help them participate in the European Research Area and

to develop an innovation-friendly environment for business and civil society. The focus of

investment for the more developed regions should be on the promoting new, fast growing,technology-based companies and the swift economic and commercial exploitation of R&I

results. Thus, regional diversity calls for differentiated policies depending on the type of

region, with differing emphasis on the generation, dissemination and adoption of knowledge

in the economy but with the common objective of developing efficient innovation systems.

Interregional cooperation should aim to reinforce the effectiveness of cohesion policy by

encouraging exchange of experience between regions to enhance design and implementation

of operational programmes.

EU funding should not displace private funding; instead, use should be made of financial

instruments to leverage private finance for research and innovation.9

Gender equality should be considered in the definition of the areas for actions for

strengthening research and innovation. Considering the gender dimension in funded research

and innovation could improve methods and outputs of research products.

1.3 Complementarity and coordination

It is crucial to strengthen synergies and complementarities between Cohesion Policy and

Horizon 2020, while establishing a clear division of labour between them. This can help in

increasing the value added of R&I European policies, further exploit the European dimension

in the European Research Area in particular, and at the same time avoid duplication andfragmentation of effort at national and regional level.

In order to strengthen these synergies in practice, it is essential that the smart specialisation

strategies be elaborated10 by national and/or regional managing authorities for Cohesion

Policy funds in close collaboration with the authorities responsible for research and

innovation most directly concerned by Horizon 2020 and involving stakeholders such as

universities and higher education institutions, local industry and social partners. The Smart

Specialisation Platform11 established by the Commission should be used to support the

development of these strategies. These strategies should consider both upstream and

downstream actions to and from Horizon 2020 financed by the CSF Funds. As set out above,

both sets of options, upstream and downstream, are considered as key actions under thecurrent Community Strategic Framework.

Horizon 2020 will not support capacity-building and will not take into accountgeographic specificities in allocating funding. Upstream actions to prepare regional R&I

players to participate in Horizon 2020 projects should therefore be developed through

8 Knowledge for Growth: prospects for science, technology and innovation, EU Commission, November

2009.9 COM(2010) 546 final, Europe 2020 Flagship Initiative Innovation Union, COM(2010) 546 final, p. 20.

10 EU Parliament resolution, 2011/C 161 E/16 "Implementation of the synergies of research and innovation

earmarked funds in Regulation (EC) N 1080/2006 concerning the European Fund of RegionalDevelopment and the Seventh Framework Programme for Research and Development".

11 COM2010) 546 final, 'Europe 2020 Flagship Initiative - Innovation Union, p. 21.


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capacity building under the CSF Funds, in particular through the ERDF. This can

involve enhancing R&I infrastructures and equipment of European interest, but also

smaller research partnering facilities of regional importance upgrading into research

excellence, the modernisation of universities and higher education institutions and

research organisations, as well as developing technology auditing, international partner

search and information campaigns in firms and technology centres to stimulate andfacilitate participation in Horizon 2020.

Downstream actions should provide the means to exploit and diffuse swiftly R&I resultsstemming from Horizon 2020 into the market, with particular attention at creating an

innovation-friendly business environment for SMEs12and regional industry. There is a

need to use the CSF Funds to deploy business services, finance incubators, start

dedicated networks, and develop projects in universities to support the first-time access

of regional SMEs to European programmes such as Horizon 2020;

The measures proposed by the Commission under the Closing the innovation dividepart of the societal challenge Inclusive, innovative and secure societies under Horizon2020 will be instrumental in creating synergies with cohesion policy.

Actions under this thematic objective should be coordinated with actions under the thematic

objectives related to ICT development, enhancing SME competitiveness and investing in

education, skills and lifelong learning. They should also be coordinated with the Marie

Skodowska-Curie Actions and with ESF funding for the development of human resources in

R&I under the thematic objectives for employment, education and social inclusion. Member

States are encouraged to fully exploit the synergies between investments in R&I and the use

of the ESF to fund the modernisation of tertiary education, including the development of post-

graduate studies, the improvement of research capacities and skills of students, the training of

researchers, and networking activities and partnerships between research and technologicalcentres, higher education institutions and enterprises. Both ESF and ERDF can co-finance

partnerships between education, businesses and research.

These actions should be coordinated with transnational partnerships between enterprises and

education institutes in the form of Knowledge Alliances and Sector Skills Alliances which

can be supported by the 'Erasmus for All'13programme. Pilots and demonstration activities

and public procurement of innovation should take account of the priorities of the European

Innovation Partnerships;14

For the EAFRD, in addition to the general principles described above, support should focus

on stimulating research responding to the specific needs of farmers and foresters, particularlythose operating on a small-scale, and on fostering the take-up of research results and

application of innovation in these sectors. The new European Innovation Partnership (EIP) for

agricultural productivity and sustainability will be an important approach for better linkages

between research and farming practice, especially through the EIP network. The measures

proposed under the societal challenge "Food security, sustainable agriculture, marine and

maritime research and the bio-economy" under Horizon 2020 should enhance synergies with

rural development policy and the EMFF.

12 Expert Group on synergies between FP7, the CIP and the Cohesion Policy Funds, Final Report of the

Synergies Expert Group, EU Commission June 2011.13 COM(2011) 788 final, 'The Union programme for Education, Training, Youth and Sport'.14

COM(2010) 546 final, Europe 2020 Flagship Initiative - Innovation Union p. 22.


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2. ENHANCING ACCESS TO AND, USE AND QUALITY OF INFORMATION AND

COMMUNICATION TECHNOLOGIES


As outlined in the Integrated Guidelines, Member States should promote the roll-out and

take-up of high-speed internet as an essential means for acceding to knowledge and

participating in its creation.15 The Digital Agenda for Europe16 aims to deliver smart,

sustainable and inclusive economic growth through the realisation of the digital single market

and exploitation of the potential for innovation with fast and ultra-fast internet and

interoperable services and applications.17Information and communication technologies (ICT)

are a powerful driver of economic growth, innovation and productivity that cuts across a large

number of domains.

Key actions for the ERDF:

roll-out of open, affordable and future-proof Next Generation Access Infrastructures(NGA) that are accessible to all in under-served areas and in the economic centres of the

less developed regions with the aim of creating jobs and contributing to higher

productivity levels and a more competitive European economy;

eGovernment applications with the aim of enhancing innovation, the modernisation ofpublic administrations and access to these services by citizens, including marginalised

groups and people with disabilities;

ICT applications that contribute to meeting future societal challenges and opportunitiessuch as eHealth, ageing population, reducing carbon emissions, resource-efficiency,education, eInclusion, energy efficiency, eGovernment, integrated ICT solutions for

'smart cities', consumer information and empowerment;

investment in the large-scale uptake of ICT-based innovations within and betweenregions to address key societal challenges.


Enhancing the accessibility, use and quality of ICT in rural areas accessible to all, through:

the creation, improvement and expansion of broadband infrastructure, including passivebroadband infrastructure;

ICT applications and services in support of the sustainability and competitiveness ofrural areas and of agriculture and food processing;

e-content relevant to the development of rural tourism;

15 Integrated Guidelines, Guideline 4.16 COM(2010) 245 final/2, A Digital Agenda for Europe,.17

Commitment 48, Communication from the Commission to the European Parliament, the Council, theEconomic and Social Committee and the Committee of Regions, Flagship Initiative: A digital agenda forEurope.


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promotion of digital competence outside formal education systems among farmers,forestry managers and rural businesses.


As a general rule, support through the CSF Funds, in particular through grant instruments,should be targeted on areas not sufficiently served by private investment where the market

fails to deliver. Where possible, support should be provided through financial instruments.18

The possibility to attract private capital for investment and innovative service development

through credit enhancement using the ERDF also in synergy with Connecting Europe Facility

should be actively explored. The adoption of long-term investment models should be in line

with EU guidance on broadband investment19and respect of state aid rules should strengthen

regional innovation and competitiveness, ensure a high level of competition and create a level

playing field for all market players. The resulting infrastructure should enable disaggregation

of services at end-user level, and the differentiation of services and end-to-end independence

of operators and service suppliers.

ICT-based Key Enabling Technologies are powerful cross cutting drivers for innovation

across a large number of economic and social sectors. Investments in developing ICT

products, services and applications, and demand-related actions should focus on the use of

these technologies to tackle key societal challenges and opportunities such as health and

demographic change, energy efficiency, eGovernment as well as the strengthening regional

capacity to plan these actions in all regions. Action in this field should aim to empower

individuals, strengthen business competitiveness and the efficiency of public administrations

including the better use and sharing of data, enhance the attractiveness of regions against

other areas of the world and prevent de-location of economic activity and depopulation of less

developed areas.


To enhance the use of ICT and actively contribute to the development of digital literacy,

actions under this thematic objective should be complemented by actions supported by the

ESF20 to promote digital competences in formal education and training systems, to raise

awareness and to provide effective ICT training and certification outside formal education

systems, including the use of online tools and digital media for re-skilling and continuing

professional development. Particular attention will need to be paid to improve the

attractiveness of the ICT sector for youngsters between the ages of 15-24 and for women. As

the benefits of the digital society should be available to all, support should also aim to

integrate and empower members of disadvantaged social groups within the digital society,

including e-services and other support measures (such as eSkills and easy access to

eLearning, eEducation, eGovernment, eEnvironment, eHealth services) as well as addressing

specific eAccessibility challenges.

EAFRD investment in ICT should be used in a way that complements similar investments in

rural areas by the ERDF (where ERDF support is available) and related training actions under

the ESF.

18 Communication from the Commission to the European Parliament, the Council, the Economic and Social

Committee and the Committee of Regions, Flagship Initiative: A digital agenda for Europe.19

http://ec.europa.eu/regional_policy/sources/docgener/presenta/broadband2011/broadband2011_en.pdf20

Under the thematic objectives for employment, education and social inclusion.


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Coordination should be ensured with the 'Erasmus for All'21 programme, in particular with

strategic cooperation projects that will support the promotion of digital competences and the

use of ICT in education and training institutes through transnational activities.

Finally, the CSF Funds should finance actions that complement investments by the

Connecting Europe Facility (CEF),22

which will contribute to financing the infrastructureneeded to roll out e-ID, eProcurement, electronic health care records, Europeana, eJustice and

customs-related services. The CEF would also serve to ensure interoperability and meet the

costs of running infrastructure at European level, linking up Member State infrastructures.

Coordination at national level between cohesion, CEF and Horizon 2020 actions will be

essential to ensure synergy, complementarity and avoid duplication of efforts.

21

COM(2011) 788 final, 'The Union programme for Education, Training, Youth and Sport'.22 COM(2011) 665, Proposal for a Regulation of the European Parliament and of the Council establishing theConnecting Europe Facility.


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3. ENHANCING THE COMPETITIVENESS OF SMES,THE AGRICULTURAL SECTOR (FOR

THE EAFRD)AND THE FISHERIES AND AQUACULTURE SECTOR(FOR THE EMFF)


Small and medium-sized enterprises constitute the backbone of the European economy and

are key drivers of growth, job creation and cohesion, providing two out of three private-sector

jobs and contributing 58% of the total value added created by businesses in the EU.Investment in SMEs therefore has a strong contribution to make to growth, employment and

cohesion. SMEs have a clear role to play in managing structural change and transition in a

global knowledge-based economy and in creating new employment opportunities. On their

own, SMEs lack the power to implement value chains on a large scale and therefore depend

on creating links within and outside their region of origin.

EAFRD interventions to enhance the competitiveness of the agricultural sector will help to

secure viable food production in the EU and contribute to job creation and maintenance andgrowth in rural areas. Particular challenges to be addressed are the size of agricultural

holdings in some regions which forms an obstacle to competitiveness, the sector's age

structure, with only around 6% of farmers under 35, and the need to foster productivity and

efficiency to respond to competition from third countries, rising input costs, market volatility,

and environmental challenges.

Key actions for the ERDF:23

investment in entrepreneurship, including the provision of start-up capital, guarantees,loans and mezzanine and seed capital through financial instruments and support for the

development of business plans;

investment in the commercial exploitation of new ideas and research results and thecreation of more knowledge-intensive businesses through interventions tailored to the

needs of SMEs at their various stages of development and along the innovation value

chain;

business advisory services, in particular in the areas of business start-up, businesstransfer, access to new markets, business strategy and monitoring, technology transfer

and foresight as well as user-oriented and design-driven innovation, raising innovation

management capacity and encouraging the development and use of such services

through innovation voucher programmes;

support the development of web-tools to provide targeted information and facilitateregulatory procedures for SMEs, particularly in the area of public procurement,

employment law, social security, taxation and standardisation;

the development of new business models, including new value chains and marketingorganisation, in particular to facilitate internationalisation;

23

COM(2010) 614, Communication from the Commission to the European Parliament, the Council, theEconomic and Social Committee and the Committee of Regions, Flagship Initiative: An IntegratedIndustrial Policy for the Globalisation Era Putting Competitiveness and Sustainability at Centre Stage.


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the development of SMEs in emerging areas linked to European and regional challengessuch as creative and cultural industries, new forms of tourism, and innovative services

reflecting new societal demands or products and services linked to ageing population,

care and health, eco-innovations, the low carbon economy and resource efficiency,

including coordination with public procurement to speed up the market take-up of

innovative solutions to address these challenges.


the restructuring of farms facing major structural problems, in particular through on-farm investments to improve the performance of an agricultural holding or to support

farm viability, economic sustainability, investments related to the processing, marketing

and development of agricultural products or investments in infrastructure for the

development and adaptation of agriculture;

generational renewal in the agricultural sector, especially through business start-up aidfor young farmers;

integration of primary producers into the food chain, through support for qualityschemes, promotion in local markets, horizontal and vertical cooperation, new

marketing and networking opportunities, the development of short supply chains and

the setting up of producer groups;

farm risk management, through a range of tools to assist farmers with the effectivemanagement of increasing economic and environmental risks, including animal and

plant diseases, and support for investments in preventive and restoration actions.

Key actions for the EMFF:

business development, business skills and entrepreneurship in fisheries and aquaculturein order to enhance their competitiveness, viability and sustainability;

introduction or development of new or improved products, processes, technologies, andmanagement and organisation systems across all levels of the supply chain in the

fisheries and aquaculture sectors in order the increase the added value of fisheries and

aquaculture products and to lower production costs;

improvement of market organisation in the fisheries and aquaculture sectors.3.2 General implementation principles

EU support for SMEs from the ERDF, EAFRD and EMFF needs to be more targeted,

focusing on enhancing the competitiveness and growth performance of SMEs in line with the

Small Business Act and its Review24. Intervention should cover the whole range of SME

policy instruments. Member States should make a decisive shift from grant-based to financial

instruments such as the provision of start-up capital, guarantees, loans, mezzanine and seed

capital in supporting SMEs. This should include provision through the EAFRD of financial

instruments providing access to capital for productive investments in the agricultural, forestry

and food-processing sectors, as well as for SMEs located in rural areas. Support should be

24COM(2008) 394 final and COM(2011) 78 final


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provided in the context of ongoing initiatives to analyse and reduce the administrative and

regulatory burden for SMEs, with a particular focus on micro businesses.


Actions under this thematic objective should be implemented taking into account that Europe

has too few entrepreneurs and disproportionately even fewer women than men entrepreneurs.Particular attention should be paid to tackling the factors discouraging women from becoming

entrepreneurs. Actions under this thematic objective should be reinforced by actions financed

by the ESF25to boost the competitiveness of SMEs. These actions should focus on developing

the capacity of SMEs to anticipate and manage change through identification of employment

and skills trends, on providing support for the organisational development, information and

counselling of SMEs, on introducing innovative forms of work organisation and/or flexible

working time arrangements and on promoting enterprise investment in training. Actions under

this thematic objective should also complement actions financed by the ESF to support

entrepreneurship, self-employment and business creation (under the employment thematic

objective) and actions supporting social enterprises which can be provided by the ESF and

ERDF (under the social inclusion thematic objective).

Actions under this thematic objective should complement actions financed under the EU

Programme for the Competitiveness of Enterprises and SMEs,26which will focus on financial

instruments and support for the internationalisation of enterprises by: 1) improving access to

finance for SMEs in the form of equity and debt; 2) establishing a loan facility to provide

SMEs with direct or other risk-sharing arrangements with financial intermediaries in order to

cover loans; 3) improving access to markets inside the EU and globally; and 4) promoting

entrepreneurship: activities will include developing entrepreneurial skills and attitudes,

especially among new entrepreneurs, young people, women and vulnerable groups such as

people with disabilities.

25 Under the thematic objectives for employment, education and social inclusion.

26 COM(2011) 834 final.


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Key actions for the ERDF and the Cohesion Fund:

energy efficiency and renewable heating and cooling in public buildings, in particularthe demonstration of zero-emission and positive-energy buildings, as well as deep

renovation of existing buildings to beyond cost-optimal levels;

energy efficiency measures and renewable energy use in SMEs (including informationcampaigns);

innovative renewable energy technologies, in particular technologies mentioned in theStrategic Energy Technology Plan35 and in the Energy Roadmap 2050, along with

second- and third-generation biofuels;

supporting marine-based renewable energy production, including tidal and waveenergy;

integrated low-carbon strategies and sustainable energy action plans for urban areas,including public lighting systems and smart grids.


increased efficiency in energy use in agriculture and food processing throughinvestments in more energy-efficient buildings and facilities, together with advice on

energy-efficiency;

facilitating the supply and use of renewable sources of energy, and of by-products,wastes, residues and other non-food raw material to promote the bio-economy through:

investments in the on-farm production and use of renewable energy; pilot projects for

improving by-product use; investments in new forestry technologies for the processing

of biomass; and investments in renewable energy infrastructures in rural areas;

reducing nitrous oxide and methane emissions from agriculture through: support forlower use of nitrogen fertilisers; improved livestock management practices (for the

treatment of animal wastes); and support for more climate-friendly crop rotation;

enhancing carbon sequestration and emission reduction in agriculture and forestrythrough: agro-forestry systems; forest planting and maintenance; climate-friendly

management of new and existing forests; establishing or maintaining healthy grassland;

and maintaining peatlands.

Key actions for the EMFF:

support deployment of low carbon technologies and solutions and increase energyefficiency of fisheries and aquaculture activities, including fishing vessels, ports,

aquaculture farms and processing of fisheries and aquaculture products.


The CSF Funds should effectively contribute to achieving the climate and energy targets for

2020, in particular the annual binding greenhouse gas emission targets for Member States in

35 COM(2009) 519 final, Investing in the Development of Low Carbon Technologies (SET-Plan).


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the period 20132020 under the Effort Sharing Decision.36However, support should focus not

only on the targets for 2020, but also on the long-term decarbonisation target for 2050. In

particular, investments should avoid lock-in, provide incentives for technologies of the future,

and aim to minimise the cost of emission reductions over the 40-year period until 2050.

The bulk of climate-related investment should be made by the private sector. Member Statesand regions should ensure that public funding complements private investment, leveraging it,

and not crowding it out. In the energy efficiency sector, the option of creating value for

energy savings through market mechanisms (energy saving obligations, energy service

companies, etc.) should be considered before public funding.

Financial instruments should be supported in instances where the potential for private revenue

or cost savings is large, including revolving funds and guarantee schemes. In the case of

physical investment, grants should be used primarily to address market failures or to support

innovative technologies and investments going beyond cost-efficient energy efficiency

performance, thus making sure that energy savings and greenhouse-gas emission reductions

are above those attainable with business as usual.


It is important to ensure coordination with already existing climate-related instruments,

including both funding and non-funding instruments. Support from the CSF Funds should not

duplicate support from revenue obtained from auctioning allowances under the European

Emission Trading Scheme and should complement support schemes for renewable energy.

Support should therefore focus on areas where current incentives are insufficient. Financing

from the CSF Funds should be coordinated with support from the NER300 Programme, which

uses revenue from auctioning allowances under the European Emissions Trading Scheme to

finance demonstration projects for innovative renewable energy technologies.37

Complementarity and coordination with LIFE, in particular with integrated projects in the

areas of climate change mitigation should be pursued in order to enhance European added

value and national and regional development benefits.

Synergies should be enhanced between actions under this thematic objective with actions

enhancing the competitiveness of SMEs by supporting new businesses and activities in low-

carbon and climate-resilient sectors, strengthening research, technological development and

innovation in energy efficiency and renewable energy, and promoting employment and labour

mobility. The ESF should contribute towards the shift towards a low carbon economy through

support for the early detection of labour and skill needs and shortages, the reform of education

and training systems, the adaptation of skills and qualifications, the up-skilling of the labourforce to improve its employability, and enhancing the creation of new jobs in sustainable low

carbon industry and energy sectors.

The EAFRD should support the potential for agriculture to contribute to emission cuts, in

particular by reducing nitrous oxide emissions from agricultural soils (linked to fertiliser use)

and from manure and should contribute to increasing carbon in soil by protecting and

36 Decision No 406/2009/EC.37 Commission Decision of 3 November 2010 laying down criteria and measures for the financing of

commercial demonstration projects that aim at the environmentally safe capture and geological storage of

CO2 as well as demonstration projects of innovative renewable energy technologies under the scheme forgreenhouse gas emission allowance trading within the Community established by Directive 2003/87/EC ofthe European Parliament and of the Council (2010/670/EU).


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enhancing soil organic matter. EAFRD support in this area could create important synergies

with activities under the thematic objective protecting the environment and promoting

resource efficiency, by reducing the excessive use of fertilisers and pesticides, which can

seriously endanger terrestrial and aquatic ecosystems.

Area-based forms of support from EAFRD should in particular contribute to the provision ofenvironmental-friendly farming and forestry practices, especially in areas at risk of

agricultural intensification or land abandonment.

The EMFF should support diversification of fisheries activities into other sectors of maritime

economy and growth of maritime economy, including mitigation of climate change. In

preparing their programmes, it is important to take into account specific needs with regards to

climate change mitigation and adaptation.


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5. PROMOTING CLIMATE CHANGE ADAPTATION AND RISK PREVENTION AND

MANAGEMENT


The White Paper Adapting to climate change: Towards a European framework for action38

sets out the EU framework for adaptation to climate change, including objectives and actions.

The Communications 'A Community approach on the prevention of natural and man-made

disasters'39 and 'Towards a stronger European disaster response: the role of civil protection

and humanitarian assistance'40set out the key elements of the EU approach on risk prevention

and management.

Key actions for the ERDF and Cohesion Fund:

development of strategies and action plans for adaptation to climate change and riskprevention and management plans at national, regional and local level and for buildingup a knowledge base and data observation capacities, and mechanisms for the exchange

of information;

increased investment in adaptation to climate change and risk prevention andmanagement, including: avoiding damage and increasing resilience to the built

environment and other infrastructure; protecting human health; decreasing future

pressure on water resources; investing in flood and coastal defences; and decreasing the

vulnerability of ecosystems in order to increase ecosystem resilience and enable

ecosystem-based adaptation;

development of tools (detection, early warning and alert systems, risk mapping andassessment); and increased investment disaster management systems, to facilitatedisaster resilience and risk prevention and management for natural risks, including

weather-related risks (such as storms, extreme temperature events, forest fires, droughts,

floods) and geophysical risks (such as avalanches, landslides, earthquakes, volcanoes),

and to support societal responses to industrial risks (early warning systems, risk

mapping).


sustainable water management, including water efficiency (with regard to ecosystems),through the creation of on-farm water storage zones; support for water-efficientcropping patterns; and the establishment and management of forest protection belts

against erosion;

improved soil management through support for practices to prevent soil degradation anddepletion of soil carbon stock, such as low tillage, winter green cover, and the

establishment of agro-forestry systems and new forests;

ensuring a high potential for adaptation to climate change and diseases and maintaining38 COM(2009) 147 final, White Paper Adapting to climate change: Towards a European framework for

action.39 COM(2009) 82.40

COM(2010) 600.


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genetic diversity, especially by supporting local crop varieties and livestock breeds.


Cooperation across regions and Member States should be pursued in adaptation and risk

prevention and management activities to deal with cross-border spillover effects, in particularin relation to flood protection, protection of forests against fires and pests, and coastal

protection.

The CSF Funds should be used to invest in ecosystem-based risk prevention and management

and adaptation measures, including the integration of climate change adaptation and risk

prevention within coastal and maritime planning and management systems. Synergies with

climate change mitigation, environmental protection and resource efficiency should be

exploited where possible.

Synergies should be pursued with activities under other thematic objectives, including

innovation and technological development for adaptation to climate change, support forbusinesses in taking up adaptation measures and technology, and actions to reduce water

pollution from agriculture, such as reducing the excessive use of fertilisers and pesticides.


Synergies and complementarities between CSF Funds should be sought particularly in types

of interventions that could be funded by different funds. Complementarity and coordination

with LIFE, in particular with integrated projects in the areas of climate change mitigation

should be ensured at national and regional level. The ESF can complement activities in this

area through targeted education, training and up-skilling of the labour force with regard to

risk prevention, risk management and adaptation to climate change. The EAFRD cancomplement activities in this area by integrating climate change adaptation in farm advisory

services, knowledge transfer and information actions.


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6. PROTECTING THE ENVIRONMENT AND PROMOTING RESOURCE EFFICIENCY


The flagship initiative Resource Efficient Europe41

aims to create a framework for policiesto support the shift towards a resource-efficient and low-carbon economy. The Integrated

Guidelines refer to the need for Member States to decouple economic growth from resource

use, turning environmental challenges into growth opportunities and making efficient use of

their natural resources. Specific targets in relation to the environment are set out in the EU

environmental acquisand at EU level.

The Water Framework Directive,42 along with the rest of the EU water acquis,43 aims to

protect water resources and the aquatic environment and obliges Member States to implement

measures to ensure the sound condition (ecological, chemical and quantitative) of water

bodies. The Waste Framework Directive44sets out obligations and targets for Member States

with respect to waste prevention and treatment. The EUs Biodiversity Strategy45sets the goalof halting the loss of biodiversity and the degradation of ecosystem services by 2020, and

restoring them as far as is feasible. The Birds46 and Habitats47Directives together form the

cornerstone of the EUs nature protection policy and set out obligations for Member States.

The Soil Thematic Strategy48 and the proposed Soil Framework Directive is aimed at the

protection and sustainable use of soil resources.49The Air Quality Framework Directive aims

to improve ambient air quality and provide cleaner air.50 Finally, the Marine Directive,51

whose objectives are to be achieved with contributions from the CSF Funds, is intended to

deliver the environmental pillar of the EUs maritime policy.

41 COM(2011) 21, Communication

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