CASTILLA-LA MANCHA STRATEGIC FRAMEWORK FOR THE IMPLEMENTATION OF STRUCTURAL

FUNDS 2007-2013

Brussels, 11th October 2007

Second Vicepresidency and Regional Ministry of the Economy and the Budget

OVERVIEW

Introduction: personal and organisational information

Background:

Castilla-La Mancha: geographical context

Main socio economic features

Evolution of the convergence index

Major Issues:

Basic contents of the Castilla-La Mancha Strategic Framework

Architecture of the Strategic Framework

European Funds implementation: the role of the Operational Programmes

Expected impacts

Conclusions

INTRODUCTION: PERSONAL AND ORGANISATIONAL INFORMATION

The coordination of the Castilla-La Mancha Strategic Framework has been implemented jointly between:

Ildefonso Martinez

Economist & Master in EC Law

Structural Funds Coordinator. Junta de Comunidades de Castilla-La Mancha

E-mail: imartinez@jccm.es

Web: http://www.jccm.es/economia/index2.php

David Gago

Consultant. Red2Red Consultants

Economist, MSc in Economics. PhD in Economics (Forthcoming)

E-mail: dgs@red2red.net

Web: http://www.red2red.net/indexE.htm

CASTILLA-LA MANCHA: REGIONAL CONTEXT

Castilla- La Mancha is located in the very center of Spain. An extensive plain dominates the territory. It is known as LA MANCHA after the famous novel EL QUIXOTE

Year 2005

Castilla- La

ManchaSpain

% CLM/ Spain

Area (Km2) 79.463 505.988 15,70

Population 1.894.66744.108.53

0 4,29

Density (hab./Km2) 23,84 87,18 27,34

Number ofMunicipalities 919 8.133 11,30

GDP mp (constant M€) 25.245 735.923 3,43

Agriculture (%) 10,4 3,26 -----

Industry (%) 18,96 17,7 -----

Building sector (%) 14,3 11,61 -----

Services (%) 56,3 67,4 -----

GDP per capita (€) 13.325 16.684 79,87

Activity rate 54 57,4 -----

Unemployment rate 9,2 9,2 -----

MAIN SOCIOECONOMIC FEATURES (related to the content of Operational Programmes)

Entrepreneurship: Recent dynamism but scarce pulse of the entrerprise innovation and weak comercialisation channels.

Employment and formation, Advances in occupation but still weak women incorporation to the labour market. More effort needed to improve skills

R&D&I and Information Society: Important effort in the provision of ICT infrastructures but low levels of R&D&I

Transport infrastructures, Substantial progress in motorways. More effort needed to improve connectivity.

Energy and environment fields: Good starting point in renewable sources provision but high levels of energy intensity and water shortages.

CONVERGENCE EVOLUTION OF CASTILLA-LA MANCHA

Convergence Index with respect EU15=100, EU25=100 and EU27=100

European Funds have triggered a significant effect over regional per capita income during the 1988-2006 period: Castilla-La Mancha is currently over the

75% threshold

European Funds during 1988-2006 have enabled an estimated GDP increase of 4,49% with respect to the baseline scenario (no European Funds) according

to the HERMIN model.

BASIC CONTENTS OF THE CASTILLA-LA MANCHA STRATEGIC FRAMEWORK

The Strategic Framework of the Region: a bridge between the Regional Pact and the Lisbon Agenda objectives, through

Structural Funds.

Castilla-La Mancha Strategic Framework has basically consisted of the elaboration of:

A diagnostic study & SWOT matrix.

The setting of the strategic priorities

The analysis of the coherence with respect to the most important institutional agreements

The estimation of the potential impact

The executive summary of the priorities contained in the Regional Operational Programmes ERDF and ESF

The definition of the implementing provisions and a compilation of procedures

ARCHITECTURE OF THE STRATEGIC FRAMEWORK

Regional Strategic Framework 2. Priorities

(Strategy)

1. Diagnostic study(SWOT)

Input/output analysisStatistic&econom.

analyses

Regional and Central

Government Coordination

Thematic meetings

Operational Programme ERDF

3. Priorities

4. Implementingprovisions

Operational Programme ESF

3. Priorities

4. Implementingprovisions

5. Ex-Ante Evaluation

5. Ex- ante Evaluation

Strategic Environmental

Evaluation

Built under partnership horizontal principle

Equal Opportunities

Principle

Sustainable Development

Principle

6. Procedures

Regional and Central

Government Coordination

THE ROLE OF OPERATIONAL PROGRAMMES

Coherence with... CLM

STRATEGIC

FRAMEWORK

EARDF COHESION

FUND

Developed through

Operational ProgrammesERDF

(74,6%)

ESF

(24,4%)

Regional & Multiregional Programmes

Regional

Programmes

Multiregional

Programmes

Reg Govern (40%)

Central Govern (60%)Partnership

Central Govern

EXPECTED IMPACT OF EUROPEAN FUNDS 2007-2013 IN CASTILLA-LA MANCHA (ERDF)

Employment (%)Employment

(number) OutputAccumulated

outputCastile-La Mancha 0,10% 837 0,21% 1,46%Total Aut. Communities 0,04% 7.200 0,07%

Short term Long termCastile-La Mancha 0,127% 3,810%Total Aut. Communities 0,026% 0,780%

Impact of ERDF (excluding R&D).Output

Impact of R&D ERDF

Impact of Total ERDF.Output

Infraestructure and other capital R&D Total

Castile-La Mancha 0,212% 0,127% 0,339%Total Aut. Communities 0,073% 0,026% 0,099%

CONCLUSIONS OF THE STRATEGIC FRAMEWORK

•Strategic evaluation: It bridges key issues of the Regional Pact with Lisbon Agenda Issues (National Reforms Programme and European Guidelines)

•Achievement of desirable (and measurable) goals and a monitoring process

•Partnership principle.

• Development of monofund Operational Programmes: Regional Operational Programmes ERDF and ESF and Multiregional Programmes.

Thank you very much for your attention!