European Regional Policy 2007-2013

Jaume Garau Taberner

General Director of European Funds

Mallorca, October 20, 2009

1 Introduction to the EU’s Regional Policy 2007-13

2 Regional Policy in Spain

3 Regional Policy in the Balearic Islands

4 Territorial cooperation policy and European projects

Why a European regional policy?

Since the creation of the European Union as we know it today, economic and social cohesion has been one of the main pillars for European integrationSpecifically, the explicit objective is: “... Reduce the disparities between the levels of development of the various regions”.

Articles 158 of the EC Treaty

Europe of the states

Per capita GDP in the EU regions (2004)

Pc GDP of the 27 MS

Pc GDP between the regions

The EU’s budget1.126,5 M€ is shared out in the following way:

6% 1% 5%

11%

34%

43%Sustainable Development Competitiveness CohestionNatural Resources Agricultural policy Rural development and protection of the EnvironmentThe EU as a Global ActorCitizenship, freedom, security and justiveOther costs

The Lisbon Strategy

Strategy to maintain and reinforce Europe’s economic role.

Lisbon is the General Framework used to design regional policy in the EU

4 pillars 1. A more attractive place to invest and work

2. Knowledge and Innovation

3. More and better jobs

4. Solid macroeconomic base

EU Regional Policy, 2007-13: 347 Bilion€Programmes and Tools Elegibility Priorities Grant

Convergence objective 81,54% 251.163M€

National and regional programmes (ERDF & ESF)

Regions with a GDP/res < 75% than the average EU-25

Innovation Environment

70,5% 177.354m€

ERDF

Statistical effect: Regions with a GDP/res. < 75% of the UE-15 and >75% of the EU-25

Accessibility Infrastructures Human Resources Administrative capacity

4,99% 12.251M€

Cohesion fundsGNI/res. <90% of the average of the EU-25 Phasing-out for Spain

Transport (TEN) Sustainable transport Environment Renewable energies

23,22% 12.251M€ 1,29% 3.250M€

Regional competitiveness & Employment objective 15,95% 49.127M€

National (ESF) and regional (ERDF) programmes

List of regions (NUTS I or II) presented by the Member States

Innovation Environment/ risk prevention

78,86% 38.742M€

Phasing-in. Regions covered by the old Objective 1 in the 2000-06 period and that are not elegible in the present Convergence objective

Accessibility European Employment Strategy

21,14% 10.385M€

European Territorial Cooperation objective 2,51% 7.750M€

Crossborder, transnational and interregional programmes and networks, networks for the exchange of experiences (ERDF)

Crossborder regions Transnational regions (list from the Commission) Interregional cooperation (all of the EU's territory)

Innovation Environment/risk prevention Accessibility Culture, education

73,86% 5.576 M€ 20,95% 1.581M€ 5,19% 392M€

ERDF: European Regional Development Fund

Priorities:

Innovation

Aid for businesses

Environment

Accessibility

Amount:

193.000 m. € (shared with the ESF)

ESF: European Social Fund

Priorities:

Labour Market Training

Amount:

193.000 m. € (shared with the ERDF)

CF: Cohesion Funds

Priorities:

Environment

Transport

(LARGE projects)

Amount:

58.500 m. €

EU Regional Policy, 2007-13

Per capita GDP in the EU regions (2004)

EU Regional Policy, 2007-13: 347 Bilion€

Programmes and Tools Elegibility Priorities Grant

Convergence objective 81,54% 251.163M€

National and regional programmes (ERDF & ESF)

Regions with a GDP/res < 75% than the average EU-25

Innovation Environment

70,5% 177.354m€

ERDF

Statistical effect: Regions with a GDP/res. < 75% of the UE-15 and >75% of the EU-25

Accessibility Infrastructures Human Resources Administrative capacity

4,99% 12.251M€

Cohesion fundsGNI/res. <90% of the average of the EU-25 Phasing-out for Spain

Transport (TEN) Sustainable transport Environment Renewable energies

23,22% 12.251M€ 1,29% 3.250M€

Regional competitiveness & Employment objective 15,95% 49.127M€

National (ESF) and regional (ERDF) programmes

List of regions (NUTS I or II) presented by the Member States

Innovation Environment/ risk prevention

78,86% 38.742M€

Phasing-in. Regions covered by the old Objective 1 in the 2000-06 period and that are not elegible in the present Convergence objective

Accessibility European Employment Strategy

21,14% 10.385M€

European Territorial Cooperation objective 2,51% 7.750M€

Crossborder, transnational and interregional programmes and networks, networks for the exchange of experiences (ERDF)

Crossborder regions Transnational regions (list from the Commission) Interregional cooperation (all of the EU's territory)

Innovation Environment/risk prevention Accessibility Culture, education

73,86% 5.576 M€ 20,95% 1.581M€ 5,19% 392M€

European Territorial Cooperation

1 Introduction to the EU’s Regional Policy 2007-13

2 Regional Policy in Spain

3 Regional Policy in the Balearic Islands

4 Territorial cooperation policy and European projects

Regional Policy in Spain, 2007-13

Spain puts forward its National Strategic Reference Framework 

-Analysis of the socio-economic situation

-Priorities for2007-13

Main socio-economic problems

1. Regions that have a lower GDP pc than the EU’s average

2. No regions achieve R+D+i objectives

3. Lack of public capital (infrastructures)

Distribution of the ERDF and the ESF in Spain 2007-13

M. € ERDF ESF

Convergence 19.480 14.587 4.893

Phasing Out 1.471 1.120 351

Phasing In 4.128 2.909 1.219

RUP Canary Islands 490 490

Competitiveness 3.298 1.707 1.591

Total EEFF 28.867 20.813 8.054

ERDF R+D+i 2.248 2.248

TOTAL 31.115 23.061 8.054

1 Introduction to the EU’s Regional Policy 2007-13

2 Regional Policy in Spain

3 Regional Policy in the Balearic Islands

4 Territorial cooperation policy and European projects

Synthesis of the socio-economic diagnosis

Weaknesses and Threats:-Insular nature, geographical discontinuity, limited territorial extension, double insular nature-Small-scale economies: industrial and business atomization-Economic specialisation (tourism) and dependence on foreign situations. -Densely populated area and a high level of pressure on the limited natural resources. -Behind in matters concerning Researchm Development and Innvoation.

Strengths and Opportunities: -Extraordinary geographical location and good flight connections with Europe. -Industrial sector for shoes, furniture and fashion jewellery-Diversification of the tourist amenity-Established activities, a good basis for R+D+i projects (agro-food, renewables, waste…)-Territorial integration in each of the islands

Introduction to the Balearic Islands OP (Diagnosis and Objectives)

Educational level of the population (between 25 and 64 years old (2002)

Low Medium High

Regional Innovation index (2002-2003)

Density if train lines in relation to the population

GDP growth in relation to the unemployed (1995-2004)

EU Regional Policy, 2007-2013Programmes and Tools Elegibility Priorities Grant

Convergence objective 81,54% 251.163M€

National and regional programmes (ERDF & ESF)

Regions with a GDP/res < 75% than the average EU-25

Innovation Environment

70,5% 177.354m€

ERDF

Statistical effect: Regions with a GDP/res. < 75% of the UE-15 and >75% of the EU-25

Accessibility Infrastructures Human Resources Administrative capacity

4,99% 12.251M€

Cohesion fundsGNI/res. <90% of the average of the EU-25 Phasing-out for Spain

Transport (TEN) Sustainable transport Environment Renewable energies

23,22% 12.251M€ 1,29% 3.250M€

Regional competitiveness & Employment objective 15,95% 49.127M€

National (ESF) and regional (ERDF) programmes

List of regions (NUTS I or II) presented by the Member States

Innovation Environment/ risk prevention

78,86% 38.742M€

Phasing-in. Regions covered by the old Objective 1 in the 2000-06 period and that are not elegible in the present Convergence objective

Accessibility European Employment Strategy

21,14% 10.385M€

European Territorial Cooperation objective 2,51% 7.750M€

Crossborder, transnational and interregional programmes and networks, networks for the exchange of experiences (ERDF)

Crossborder regions Transnational regions (list from the Commission) Interregional cooperation (all of the EU's territory)

Innovation Environment/risk prevention Accessibility Culture, education

73,86% 5.576 M€ 20,95% 1.581M€ 5,19% 392M€

EU resources that are available for the Balearic Islands 2007-13

Funds M€ How it works

Objective of competitiveness

ERDF 107,2 OP (GD for European Funds)

ESF 34,4 OP (GD for Training/Education)

Cohesion Funds Local stretch 21

4 local entities must submit projects E: water and waste)

Rural Development Plan

FEADER 44,8 OP (GD for Agriculture)

EU Fisheries sector EFF 4 OP (GD for Fisheries)

European Territorial Cooperation Projects with other regions

European projects Projects signed with the Commission

Objective of the Balearic Islansd ERDF Operational Programme 2007-2013

General objective:Establish a competitive economic base

Priorities:1.Competitiveness: Innovation, business development and knowledge ec2. Energetic resources and access to transport services3.Rural and urban sustainable development

Introduction to the Balearic Islands’ OP (Diagnosis and Objectives)

EU Finance

State/CAIB Finance

Total Investment

2000-2006 PROGRAMME 92,5 98,5 191

2007-2013 PROGRAMME 107,2 119,2 226,4

What has been achieved:

1) An increase in the resources received

2) The area of action has also increased

Achieve specific finance for the Balearics to compensate for its insular nature.

1) ERDF funds per resident and year in the Islands EU

CAN

Reason:1)BI’s GDP pc is “higher”2)“The outermost regions indicated (…) will receive additional financing to that of the ERDF funds. The amount will be 35€ a year per resident, due to the regions’ specific limitations (1083/2006)

IB SICMAD CORSAR

2) INTERREG Funds

Main challenge for the GD for Europan Funds

. TOTALFinance

EU Contrib.

AGE Contrib.

CAIB Contrib

Priority Axis1: Knowledge economy (R+D+i, Information society), business innovation and design

126,6 63,26 21,7 41,6

Priority Axis 2: Environment and prevention of risks 6 3 0 3

Priority Axis 3: Energetic resources and access to networks and transport and telecommunication services.

67 27,5 0 39,5

Priority Axis 4: Rural and urban sustainable design 23,5 11,7 2,9 8,8

Priority Axis 5: Technical Assistance 3,4 1,7 0 1,7

TOTAL 226,4 107,2 24,6 92,6

ADM. GENERAL DEL ESTADO

20%

ADM. REGIONAL80%

GASTO PROGRAMADO 2007-2013POR ADMINISTRACIONES

EJE 156%

EJE 26%

EJE 326%

EJE 410%

EJE 52%

GASTO PROGRAMADO E M (€)

ERDF Operational Programme in the BI (2007-13)

Business % increase Export (1,3% to 2%) 25 km. Railway Network 17 research centres have benefited from this investment 32 urban regeneration projects 4 protected historical groups 60 newly created businesses (R+D+i) Privat investment 1.441 businesses benefited from this investment % renewable energy power / installed power: from 2,2% to 6%

Outcomes of the investment

1 Introduction to the EU’s Regional Policy 2007-13

2 Regional Policy in Spain

3 Regional Policy in the Balearic Islands

4 Territorial cooperation policy and European projects

Funds M.€ How it works

Objective of competitiveness

ERDF 107,2 Operational Programme

ESF 34,4 Operational Programme

Cohesion Funds Local stretch 21 Local entities

Rural Dev. Plan EAFRD 44,8 Operational Progamme

European Territorial

Cooperation

TRANSNATIONAL: INTERREG IV B

SUDOE

Projects submited together with other regions

TRANSNATIONAL: INTERREG IV B

MED

INTERREGIONAL: INTERREG IV C

European projects

European Commission

Projects sent directly to the Commission

Transnational cooperation programmes in which the Balearic Islands can submit projects

Community Programmes 2007-2013Some examples

Competitiveness for the growth of employment Citizenship - VII Framework Programme RTD - Young people in action- Life learning - MEDIA 2007- PROGRESS - CULTURA 2000- Innovation and CIP competitiveness - Citizens for Europe - Public health and consummer protectionPreservation and management of natural resources-Life + The EU as a Global Actor - European neighbourhood Freedom, Security and Justice financial instrument -Fundamental rights and justice - URB-AL III-Solidarity and migrational flows

Jaume Garau Taberner

General Director for European Funds

Regional Ministry of Trade, Industry and Energy

Palau Reial, 17, planta baixa. 07001. Palma

971 78 43 46 jgarau@dgfonseu.caib.es

Thank you for your attention