Implementing cohesion policy, by Peter Heil and Tibor Polgar, at the workshop organised by SIGMA in Podgorica on 23-24 June 2015, the objective of which is to provide the relevant national authorities with an overview of the EU's cohesion policy (Chapter 22). For further information please contact: klas.klaas@oecd.org.
27. Agenda
• Main types of measures – major projects,
financial instruments, competitive selection
• Territorial instruments (ITI, CLLD, SUD),
programmes in regions with permanent
natural handicaps
• Connections to rural development and
fisheries policy
29. Main types of measures – major
projects
Major Projects are usually large-scale infrastructure
projects in
• transport,
• environment and
• other sectors (culture, education, R&D, energy or ICT).
A major project can be an infrastructure project or even
productive investment (2014-20)
more than € 50 ERDF and/or Cohesion Fund, they are
subject to an assessment and approved by a specific
decision by the European Commission.
A single major project can be co-financed by more
than one operational programme!
31. A major project comprises a series of works,
procurement, or services to accomplish
• an indivisible task
• of a precise economic or technical nature
which
• has clearly identified goals;
(MPs cannot be programmes)
Financial instruments are not considered to be
major projects
Main types of measures – major
projects
33. Information necessary for the approval
of major projects 2014-2020
• the body to be responsible for implementation of the major project, and its capacity;
• a description of investment and its location;
• total cost and total eligible cost, taking account of the requirements set out in Article 61;
• feasibility studies carried out, including the options analysis, and the results;
• a cost-benefit analysis, including an economic and a financial analysis, and a risk
assessment;
• an analysis of the environmental impact, taking into account climate change adaptation
and mitigation needs, and disaster resilience;
• the consistency with the relevant priority axes of the operational programme or
operational programmes concerned, and its expected contribution to achieving the
specific objectives of those priority axes and the expected contribution to socio-
economic development;
• the financing plan showing the total planned financial resources and the planned
support from the Funds, the EIB, and all other sources of financing, together with
physical and financial indicators for monitoring progress, taking account of the
identified risks;
• the timetable for implementing the major project and, where the implementation period
is expected to be longer than the programming period, the phases for which support
from the Funds is requested during the 2014 to 2020 programming period.
34. Information necessary for the approval
of major projects 2014-2020
Cost-Benefit Analysis for major projects
• Required for all major projects;
• An objective method to assess the project from the
point of view of society and the project promoter;
Two basic questions:
• is the project worth financing (economic analysis)?
• does the project need EU financing (financial
analysis)?
It should be done ex ante, not ex post;
Challenging tool for the public administration
35. Major projects - during implementation
• The follow-up of implementation of major projects will
be made on the basis of the description of the physical
object included in the Commission decision.
• Monitoring Committees review it periodically
• Annual reports of Ops have to present progress made
Key challenges for major projects
• Timely implementation, management of changes
• Procurement procedures;
• Environmental Impact Assessment needed;
• State Aid aspects (ceilings for public contribution);
• Consistency with the programme(s)
• Use of the Euro for relevant countries
37. • Specific provisions on financial instruments are set out
in Regulation (EU) No 1303/2013
• + Fund specific rules apply
• Managing authorities shall consider the use of
financial instruments as an option wherever suitable,
but not for reasons of absorption (Financial
instruments cannot be considered as a way of
frontloading expenditure or for avoidance of automatic
decommitment.)
• They are a delivery mode and not a stand-alone
objective
• FIS can be used for EAFRD rural development and
EMFF maritime and fisheries programmes, too
Financial instruments - basics
38. Benefits linked with financial
instruments
• Leverage resources and increased impact of ESIF
programmes;
• Efficiency and effectiveness gains due to revolving
nature of funds, which stay in the programme area for
future use for similar objectives;
• Better quality of projects as investment must be
repaid;
• Access to a wider spectrum of financial tools for policy
delivery & private sector involvement and expertise;
• Move away from “grant dependency” culture; and
• Attract private sector support (and financing) to public
policy objectives
39. Launching FIs
A detailed ex-ante assessment is needed including:
• an analysis of market failures
• an assessment of the value added of the financial instruments
considered
• an estimate of additional public and private resources to be
potentially raised
• an assessment of lessons learnt from similar instruments
• the proposed investment strategy
• a specification of the expected results and how the financial
instrument concerned is expected to contribute to the achievement
of the specific objectives set out under the relevant priority or
measure including indicators for that contribution
The assessment can be funded by the programme's technical
assistance and
must be submitted to the programme monitoring committee for
information and its summary findings and conclusions must be
published
40. Four basic options for FIs:
Examination of these four basic options is a compulsory part
of the ex-ante assessment:
• Implementation under shared management through an
entrusted entity (e.g. EIB or other IFI)
• Implementation under shared management through
investment in capital of existing or newly created legal
entity
• Implementation under shared management of loans or
guarantees directly (or through an intermediate body) -
this option can be used for cases where there are a
limited number of interventions not enough to justify the
establishment of a stand-alone fund. National law has to
allow the MA/IB to issue loans and guarantees.
• Contribution of ESIF programmes' allocation to EU level
41. Financial management
FIs will take the form of loans, guarantees and equity/venture capital.
Standalone interest rate subsidies and guarantee fee subsidies are not FIs.
ESIF share of capital resources paid back from investments and of
gains/earnings/yields generated by investments during the eligibility period
must be used for:
• Further investments in the same or other financial instruments, in line with
the OP;
• Where applicable, preferential remuneration of investors operating under
the market economy investor principle (MEIP) and providing co-investment
at the level of financial instrument or final recipient.
• Where applicable, management costs/fees.
State aid rules should be considered at different levels:
• the fund manager (who is remunerated),
• the private investor (who is co- investing and may receive aid)
• and the final recipient.
42. Specific rules for reporting
• Annual and final implementation reports: MAs
need to provide specific reporting on operations
comprising financial instruments as an annex to
the annual implementation report.
• Monitoring Committee: Has to receive the ex-
ante assessment 'for information‚ the strategy
document for the financial instrument implemented
directly by managing authority or intermediate
body, should be informed of the methodology for
management costs and fees, as well as the
specific annex to the Annual Report on financial
instruments
44. Competitive selection processes:
definition
No specific EU-level regulation is regulating these
processes, project selection under 50 meur is fully
national responsibility
1083/2006: ‚operation’: a project or group of projects
• selected by the managing authority of the
operational programme concerned
• or under its responsibility according to
• criteria laid down by the monitoring committee and
implemented by one or more beneficiaries
allowing achievement of the goals of the priority
axis to which it relates
45. Pre-accession grant schemes are excellent for
learning-by-doing
When to use it?
• If there is no explicit sectoral strategy and/or
action plan selecting specific operations (e.g.
environment, education, employment)
• If there is high added value in competition of
project ideas (SMEs, NGOs, innovative
projects)
• If the expected number of project ideas is
exceeding the available budget by far
Competitive selection processes
46. How to use competitive selection
processes?
Application forms, project selection criteria, the selection
process and contract templates have to be designed
considering the following important aspects:
• Contribution to programme outputs, results and objectives
• Transparency - Simplicity
• Trust - Accountability
• Continuity
• Absorption - Cost effectiveness
Audits carried out by the Audit Authority, the EC and the
ECA might review the selection processes according to
similar criteria
47. Competitive selection methods
• Priority projects
• One step application process
• Two step application process
• Continuous application scheme with regular
decisions
• General (for an OP/priority axis) or targeted
for specific interventions
Advantages - Disadvantages
48. Who can be involved in preparing
project selection decisions of the MA?
• MA staff
• IB staff
• Independent assessors
• MC members or subcommittees
MA retains full responsibility – e.g. a national
government decree might be not sufficient for
the EC
Audit Authority and EC, ECA audits have to
review the selection process
49. Conclusions
• Different delivery mechanisms have to be
chosen consciously in order to achieve
development objectives at PA/OP level
• They have to complement each other –
coordination in the phases of planning,
implementation and monitoring/evalauation is
vital for achieving synergies – use the MC!
• Institutional and capacity issues have to be
considered in all cases
51. Integrated approaches - Integrated
Territorial Investment (ITI)
• Tailored to place-specific features and outcomes, ITI is based on
Article 36 of the CPR
• Allows EU Member States to combine investments from several
priority axes of one or more OPs for the purposes of multi-
dimensional and cross-sectoral intervention.
• ITIs can be mono-fund, they can also combine ERDF, ESF and the
Cohesion Fund, and be complemented by financial support from
the EAFRD and EMFF where complementarities exist.
• Relevant OP(s) shall describe the approach to the use of the ITI
instrument and the indicative financial allocation from each priority
axis in accordance with the Fund-specific rules.
• An ITI can include the use of non-repayable grants, repayable
assistance as well as financial instruments.
• It is possible that an ITI includes elements implemented through
communityled local development.
52. Key elements of an ITI
1. a designated territory (where?)
2. an integrated territorial development
strategy (why?)
3. a package of actions to be implemented;
(what? how?) and
4. governance arrangements to manage the
ITI (with whom?)
54. Potential benefits of ITIs
• They have the potential to lead to a better
aggregate outcome for the same amount of public
investment
• The possible delegation of management tasks and
responsibilities empowers sub-regional actors
(local/urban stakeholders) by ensuring their
involvement and ownership of programme
preparation and implementation.
• As an ITI will have its funding sources secured at its
inception, there will be greater certainty regarding the
funding for integrated actions.
• ITI is an instrument designed for a place-based
approach to development that can assist in unlocking
the under-utilised potential contained at local and
regional levels.
55. Programming ITIs
The PA should outline the
• main territorial challenges and
• the main elements of the territorial strategy, including the means to
achieve an integrated approach at regional and sub-regional level,
identifying, inter alia, the implementation arrangements to be used,
including the arrangements for the use of ITIs
The OPs for the ESF, ERDF and the Cohesion Fund should outline:
• the approach to the use of the ITIs, whether ITIs will constitute a
significant delivery mechanism for the particular operational
programme
• types of areas where ITIs will be used, or concrete areas
• the arrangements for the management and implementation of the
ITI including the coordination between the managing authorities
• indicative financial allocations per each priority axis for all ITIs
and individual allocations for urban ITIs (SUDs)
56. Management of the ITI – main features
• There is no specific procedure for the assessment or
approval of ITIs by the Commission.
• The MSor the MA may designate one or more intermediate
bodies, including local authorities, regional development
bodies or non-governmental organisations in accordance with
the Fund-specific rules. Delegation of management tasks
linked to an ITI is generally not mandatory.
• Monitoring and reporting arrangements set up under an ITI
must provide for the identification of operations and
indicators by priority axis or Union priority contributing to an
ITI.
• Article 11 of the ETC Regulation specifies the management
arrangements for ITIs under the European Territorial
Cooperation – common body or EGTC can be responsible
• Budget shifts among priorities are possible within the OP
financial framework allocated for ITIs
58. Integrated approaches 2 – Community
Lead Local Development (CLLD)
Articles 32-35 (4) of the Common Provisions Regulation (EU) No
1303/2013, for CLLD are based on the LEADER approach and concern
four of the Funds covered by the Common Strategic Framework
• focuses on specific sub-regional areas;
• is community-led, by local action groups composed of
representatives of local public and private socio-economic interests;
• is carried out through integrated and multi-sectoral area-based
local development strategies, designed taking into consideration
local needs and potential; and
• includes innovative features in the local context, networking and,
where appropriate, co-operation (ETC, too)
• Can be used under each European Fund, compulsory 5% of each
Member State’s EAFRD allocation
• A single methodology for CLLD provided by the EC
• Incentive: in OPs where an entire priority axis is delivered through
CLLD, the maximum co-financing rate from the ERDF and/or the
ESF at the level of a priority axis will be increased by 10 %
59. Area and population coverage (where?)
• Should be coherent, targeted and offer
sufficient critical mass for its effective
implementation.
• It is up to the LAGs to define their areas and
population, but they must be consistent with
criteria that are laid down in Article 33(6) of
the Common Provisions Regulation.
• The population coverage should be minimum
10000 and maximum of 150000
Key elements of a CLLD
60. Key elements of a CLLD
Local action group (with/by whom?)
LAGs should be made up of representatives of local
public and private socio-economic interests, such as
– entrepreneurs and their associations,
– local authorities,
– neighbourhood or rural associations,
– groups of citizens (such as minorities, senior citizens,
women/ men, youth, entrepreneurs, etc.),
– community and voluntary organisations, etc.
At least 50% of the votes in selection decisions
should be cast by partners which are not public
authorities and no single interest group should
have more than 49% of the votes.
61. Local development strategy (why? what? how?):
• Coherent with the relevant programmes of the ESI
Funds through which they are supported.
• Define the area and population covered by the
strategy; include an analysis of the development
needs and potential of the area, including a Strengths,
Weaknesses, Opportunities, Threats (SWOT) analysis;
and describe the objectives, as well as the integrated
and innovative features of the strategy, including
measurable targets for outputs or results.
• Include an action plan demonstrating how objectives
are translated into concrete projects, management and
monitoring arrangements, and a financial plan.
Key elements of a CLLD
62. Programming CLLDs
MSs have to specify in their Partnership Agreement
• how they intend to support CLLD and
• indicate in which types of areas CLLD may be used.
CLLD is optional for the ERDF, the ESF, and the EMFF, it is compulsory
for the EAFRD.
CLLD is programmed under a single thematic priority (TO9 for ERDF
and ESF).
CLLD strategies created by LAGs may cover operations for one or
more Funds
MAs have to define criteria for the selection of local development
strategies and ensure that calls and procedures are coordinated
between the Funds.
In areas in which the Member States indicate that CLLD may be used,
Managing Authorities need to ensure capacity-building activities to
ensure that local communities, especially those in vulnerable areas with
limited capacity, are enabled to fully participate.
63. For a better understanding…
Differences between ITI and CLLD
• CLLD is always bottom up. ITI is more likely to be top down.
• CLLD can be part of an ITI but ITI could not be part of CLLD
• ITI is always integrated. CLLD doesn’t have to be
• ITI is public sector led, CLLD is multi sectoral and there is an inbuilt
balance between public, private and civil society actors none of which
have more than 49% of the votes
• ITI brings together funding from several priorities of a programme or of
several programmes and/or funds. CLLD is programmed under a single
priority (TO9 for ERDF and ESF).
• ITIs report back their outputs and results to the parent priorities in the
programmes from which they draw funds whereas CLLD can report all
outputs and results against a single thematic objective 9 while having the
scope of all Thematic Objectives.
• Funding for a single ITI would normally be much larger than funding for a
single CLLD local action group.
• You can have more CLLDs in one city but you would normally only have
one ITI – although the ITI could take several forms
64. For a better understanding…
Similar features of ITI and CLLD
• Both are territorial tools with a focus on areas (e.g. in cities, in rural
urban areas, in rural areas, in maritime and fisheries areas)
• Both require a strategy phase to prepare an action plan
• Both bring together packages of projects
• Both are driven by partnerships (but CLLD can be only bottom-up)
• Both are new in programme period 2014-20
• Both can be single fund or multi fund
• Neither are well understood (except CLLD in rural areas after 25
years of LEADER)
• Both are perceived as complicated, and even complex
• Both are being avoided by most Managing Authorities – low take-up
is predicted for both in the new programme period…
65. SUSTAINABLE URBAN
DEVELOPMENT (SUD)
A minimum of 5% of the ERDF resources allocated
to each Member State shall be invested in the
implementation of integrated strategies for
sustainable urban development
Projects are selected by urban authorities in line
with pre-defined integrated urban development
strategies, developed by the them.
The strategies are to be implemented:
• as Integrated Territorial Investment (ITI) or
• through a specific operational programme, or
• through a specific priority axis.
66. Regions with natural or demographic
handicaps
Covered by ERDF Regulation – Article 10 „particular attention shall be paid to
addressing the specific difficulties of those areas”
Types of areas (Art. 174 TFEU)
• Northernmost regions with very low population density(Art. 174 TFEU)
• Mountains (relatively high share of employment in agriculture sector, relatively
lower share in service sector; natural resources are major assets, availability of
renewable energy sources, great diversity in economic performance)
• Islands (higher share of employment in service sector due to importance of
tourism industry, small size of local markets, problems to reach larger mainland
markets, access to basic services more difficult)
• Sparsely populated regions (support for extra costs for diseconomies of scale
and for lack of critical mass)
These regions
do not present the same socioeconomic profile and
do not face the same development constraints…
Specific solutions accompanied with mutual learning from similar
areas are needed!
67. Tools provided by the CPR
Modulation of the co-financing rate Article 121 of CPR:
The co-financing rate from the Funds to a priority axis may be modulated in
the case of :
• island Member States eligible under the Cohesion Fund, and other
islands except those on which the capital of a Member State is situated
or which have a fixed link to the mainland;
• mountainous areas as defined by the national legislation of the Member
State;
• sparsely (less than 50 inhabitants per square kilometre) and very
sparsely (less than 8 inhabitants per square kilometre) populated areas;
• the inclusion of the outermost regions as referred to in Article 349
TFEU.
Art. 10 ERDF-regulation: Operational programmes financed by ERDF shall
pay particular attention to addressing specific difficulties of areas with
severe and permanent and natural or demographic handicaps
Use of inegrated appoaches is recommended – ITI and/or CLLD
68. Handicapped regions and programming
Member States have to take account of geographic or demographic features and
take steps to address the specific territorial challenges of each region to unlock
their specific development potential. Particular attention shall be paid to regions
which suffer from severe and permanent natural or demographic handicaps
Pas and Ops have to describe the approach to handicapped regions:
Partnership Agreements :
• an analysis of disparities, development needs, and growth potentials with
reference to the thematic objectives and the territorial challenges, and
• the specific development needs in regions which suffer from severe and
permanent natural or demographic handicaps such as the northernmost
regions with very low population density and island, cross- border and mountain
regions, which require integrated intervention from the ESI Funds.
Operational Programmes have to contain information on:
• how the operational programme addresses demographic challenges of
regions and the specific development needs of certain regions with severe and
permanent natural or demographic handicaps in an integrated way.
69. Conclusions
Territorial coordination brings added value - Mainstream
programmes, Rural development (incl. Fisheries), and ETC
programmes are financing initiatives in the the same regions
Regions with natural or demographic handicaps:
• Specific solutions accompanied with mutual learning from
similar areas are needed!
• Use of inegrated approaches is recommended – CLLD and/or
ITI
Integrated delivery mechanisms:
• Community based processes are successful in local socio-
economic development
• Choosing integrated approaches when
– added value can be achieved
– necessary capacities can be put in place in time
85. MA: decentralization advisable only in case of federal constitutional structures (fully legal
and financial responsibility)
Decentralizing IB tasks makes sense if :
• There is a high number of applications/projects to finance
• Beneficiaries are local municipalities/NGOs/intsitiutions that need personalized
assistance on the spot
• The content of the OP needs substantial project development efforts
IB functions/tasks that can be decentralized
• Front office: Publicity, measures info-days, helpdesk
• Project development (not compulsory IB task)
• Managing the application process
• Contract management: signature,conditionalities, changes, closure
• First level control: verification of costs, publuc procurememt, on-the-spot checks,
managing audits, investigating irregularity cases, managing vindications of unuly paid
grants
• Programme level reporting towards MC
Programme management tasks and
capacities at regional level
86. IB tasks not to be decentralized:
• Managing programme accounts
• Handling irregularities
• Programme level reporting towards EC
Deconcentration or decentralization?
Potential benefits:
• Learning process can be more effective (better future
calls/programmes)
• Project development (is essential to deliver programme results and
impacts) can be more effective
• Motivation/keeping of staff
• Troubleshooting / change management can be more effective leading
to better absorption
But: Take care of conflict of ineterests! Organisational culture is vital!
Programme management tasks and
capacities at subnational level
87. What kind of people we need?
• Managers able to coomunicate with leaders (mayors, CEOs,
polititians)
• Operative team managers
• Project managers / Financial managers
• Technical expert for on-the-spot checks
• Regional development experts
• Communication managers
How manny?
• Make and review capacity plans at least every 6 months
• Possible models: „specialists” vs. „generalists” (No uniform answer)
• National legal backround and internal procedures influennce
necessary staff levels substantially: 4 eyes principle, handling
irregularities, contract changes, control of public procurement
• Keep staff numbers low, teams flexible - matrix structures prevail,
one person can cover more fields of the above
• Outsourcing is a good tool to involve specific expertise or cope with
peak periods
Programme management tasks and
capacities at subnational level
88. Final beneficiaries and target groups of grants:
– Local municipalities and their associations
– Local branches of central bodies
– Global grant managers
– LEADER/CLLD Local Action Groups
– EGTCS
– NGOs
– SMEs
– Private persons
Training, training, training…..
Capacities at local level
89. Cross-border and transnational programmes
CBC: Memoranda of Understanding among National states setting up
the structure for each period, transnational programmes are based on
macro-regional strategy (E.g. Maritime Strategy for the Adriatic and
Ionian Seas for ADRION or EUSDR for Danube programme). Main
players:
• Task forces: MSs delegate experts to prepare the programme:
strategy, institutional arrangements
• Joint Monitoring Committee – adoption of the programme,
selection criteria, project selection
• Joint Managing Authority: focus on programme level tasks: chairs
MC, monitoring, evaluation, reports, programme changes
• Joint Technical Secretariat: the main operative body, manages all
tasks related to the application process, contracting, monitoring and
reporting towards EC. Share of workload with MA can be different in
tasks related to programme level - „MA thinks, JTS works”
• National first level control bodies: verify costs at partner level
• Lead partners: have to have good financial and human capacities
• Project partners
90. European Groupings of Territorial Cooperation -
European legal instrument designed to facilitate
and promote cross-border, transnational and
interregional cooperation
EGTCs can act without requiring a prior
international agreement to be signed and
ratified by national parliaments
EGTC members can be:
Member States
Regional or local authorities
Associations
Any other public body
EGTC – what is it?
91. • Can act as a broad institutional framework for
developing joint strategies and actions –
Especially useful to establish close cooperation
between two regions with a sensitive historical
and cultural identity (e.g. EGTCs Galicia-Norte
del Portugal, Arrabona, Ister Granum)
• Can take over the role of Managing Authority, JTS
(e.g. EGTC Greater Region in InterregIVA)
• Can operate project development and
implementation services for the area covered - no
further financing partners needed at project level
EGTC – what is it for?
96. Cohesion policy
in practice
The EU: 27 Member States, 271 regions, 493 million citizens.
Disparities
Different institutional and legal structures
Aim of CP is to improve the competitive position
• of the Union as a whole, and
• of its weakest regions
Budget of CP
2007–13 €347 billion
2014-2020 €351.8 billion
Cohesion policy makes a real difference, investing up to 4 % of
GDP in some MSs)
97. Impact: growth and jobs in the EU
in 2007-2012
• Increasing per capita GDP in the EU’s least developed regions –
GDP per capita in the so-called Convergence Regions increased
from 60.5 % of the EU-27 average to 62.7 % between 2007 and
2010.
• It is estimated that cohesion policy generated an additional 600 000
jobs from 2007 to 2012, at least one third of them in small and
medium sized enterprises (SMEs).
• 25 000 km of roads and 1 800 km of railways were constructed or
modernized in 2007-2012 to help establish an efficient trans-
European transport network (TEN-T).
• 200 000 SMEs received direct financial support, and cohesion policy
helped 77 800 start-ups to get up and running.
• Over 60 000 research projects were supported in the period 2007-
2012.
• 1.9 million more people now have broadband access.
98. Principles of Cohesion Policy in practice
Programming
– Programme cycle management: timing, capacities are important
– Common challenges – local answers
– 2009: flexibility to change,
Concentration:
• Concentration of resources: the greater part of structural fund resources (70% for 2014-
2020) are concentrated on the poorest regions and countries
• Concentration of efforts: Targeting Investments on Key Growth Priorities
– Research and Innovation
– ICT
– Enhancing competitiveness of SMEs
– Supporting the shift towards a low-carbon economy
• Concentration of spending : N+2(3) rule
Partnership
• Programmes are developed and managed through a collective process involving authorities
at European, regional and local level, social partners and organisations from civil society.
This approach help ensure that action is adapted to local and regional needs and priorities.
Additionality/co-financing
• Financing from the European structural funds may not replace national spending by a
member country.
• The MS has to contribute financially to each operation – but not necessarily the project
holders
99. National development from EU funding –
how to integrate it?
Integrated (IE, GB, FR) vs parallel
programme structures (SI,HU,AT)
Level of integration:
• Long-term development concepts and mid
term strategies (national, regional, local)
• Spatial plan (national, regional, local)
• Programmes (OP, regional programme,
local programme)
• Action plans
100. Impact and results in Hungary
2004-06:
20 000 projects,13 000 SMEs supported,
and nearly 22 000 new jobs created.
47 Cohesion Fund projects:
25 environment (4 million inhabitants with
improved solid waste collection services, 2
million with improved waste water treatment and
106 000 with improved drinking water supply),
9 transport (570 km of railway, 40 km of
motorway, 450 km of public roads rehabilitated)
101. Impact and results in Hungary
2007-2013 €25.3 billion
€22.9 bn Objective 1, €2.03 bn Objective 2,
€386 million ETC (Obj3)
15 Operational programmes: 13 ERDF+CF, 2 ESF
7 regional, 8 sectoral Ops
ETC programmes with all neighbours, participation
in SEE, Central, InterregIVC
102. • More than €7.2 billion for transport infrastructure (e.g. 500 km of
new and reconstructed railways)
• Over €2.16 billion to be invested in R&D and innovation
• €2.98 billion for education and training, including measures to
help people adapt to the changing working environment
• €829 million to directly support SMEs
Impact and results in Hungary
6000 meur
103. • Economic crisis (from 2008 on)
• lack of real regional and sectoral strategies,
focuses
• national regulatory environment (taxation, public
procurement)
– Two overall goals of CSF could not be attained -
economic growth and increased employment
– Territorial disparities did not decrease (2,8 between
strongest and weakest regions, 3,7 urban-rural gap at
NUTSIII level)
– All development funding have become co-funded by
EC
– OP modifications were good tools
But: key infrastructure bottlenecks have been removed
Impact and results in Hungary
104. Conclusions
• CP principles are really useful for practical
management EU funds
• Quality and co-ordination of local, regional
and sectoral strategies behind OPs is vital
• Harmony between regulatory frameworks
and development programmes is crucial
• Quality of projects is important: motivate
and invest into project development
106. Thematic concentration
List of Thematic Objectives (Art 9. of CPR):
• 1. research, technological development and innovation;
• 2. access to, and use and quality of, ICT;
• 3. competitiveness of SMEs
• 4. shift towards a low-carbon economy in all sectors;
• 5. climate change adaptation, risk prevention and management;
• 6. environment and promoting resource efficiency;
• 7. sustainable transport, key network infrastructures;
• 8. sustainable and quality employment, labour mobility;
• 9. social inclusion, combating poverty and any discrimination;
• 10. education, training and vocational training for skills and lifelong
learning;
• 11. capacity of public authorities and stakeholders, efficient public
administration
107. Each thematic objective is broken down into 2-6
investment priorities in Fund specific regulations
• Investment from the ERDF supports all 11
objectives, but 1-4 are the main priorities for
investment.
• Main priorities for the ESF are 8-11 (Art3, a-d in
ESF Regulation), though the Fund also supports
1-4.
• The Cohesion Fund supports objectives 4-7 and
11.
Thematic concentration
108. Thematic concentration
• New „menue approach”
• 11 Thematic objectives with Investment Priorities
• ERDF – concentration (50-60-80%) on…
• innovation and research,
• the digital agenda,
• support for SMEs and
• the low-carbon economy (12-15-20%)
• ESF
• Concentration on up to 5 inv. priorities (60-70-80%)
• 20% on social inclusion, vs. poverty, discrimination
• ETC
• 80% concentrated on max. 4 Thematic Objectives
109. TO1 strengthening research, technological
development and innovation
• enhancing research and innovation (R&I) infrastructure and
capacities to develop R&I excellence
• promoting business investment in R&I,
• developing links and synergies between enterprises,
research and development centres and the higher
education sector, in particular (product and service
development, technology transfer, social innovation, eco-
innovation, public service applications, demand stimulation,
networking, clusters and open innovation through smart
specialisation),
• supporting technological and applied research, pilot lines,
early product validation actions, advanced manufacturing
capabilities and first production, in particular in key enabling
technologies and diffusion of general purpose technologies;
110. Examples TO1
Smaller and bigger innovation centres:
Győr: automotive sector
SMEs with high adde value
Geolit, Jaén, Spain: Innovation centre, industrial
park cluster and museum in topic of
processing of olive seeds and oil
500.000 - 15.000.000 eur
111. TO2 Enhancing access to, and use and quality
of, ICT
• extending broadband deployment and the
roll-out of high-speed networks and
supporting the adoption of emerging
technologies and networks for the digital
economy;
• developing ICT products and services, e-
commerce, and enhancing demand for ICT;
• strengthening ICT applications for e-
government, e-learning, e-inclusion, e-culture
and e-health;
112. TO2 examples
Public administration online –
Hungary
Smart work centres
in rural areas with broadband internet - incubation, co-working, e-
learning and meeting points for local community
Examples TO2
113. TO3 enhancing the competitiveness of SMEs
• promoting entrepreneurship, in particular by facilitating
the economic exploitation of new ideas and fostering
the creation of new firms, including through
business incubators;
• developing and implementing new business models
for SMEs, in particular with regard to
internationalisation;
• supporting the creation and the extension of
advanced capacities for product and service
development;
• supporting the capacity of SMEs to grow in regional,
national and international markets, and to engage in
innovation processes;
114. Site development of Szintézis-net Ltd, HU
Example TO3
Approved Funding:
132.280 Eur
intensity of support:
40%
Szintézis-NET Ltd. is
a well established
software engineering
company in Cental
Europe which also
operates in the U.S.
Size of established spaces : 1238 m2
Number of jobs retained: 33,87
Number of created new jobs: 32,6
115. TO4 supporting the shift towards a low-carbon
economy in all sectors
• promoting the production and distribution of energy derived
from renewable sources;
• promoting energy efficiency and renewable energy use in
enterprises;
• supporting energy efficiency, smart energy management and
renewable energy use in public infrastructure, including in
public buildings, and in the housing sector;
• developing and implementing smart distribution systems
that operate at low and medium voltage levels;
• promoting low-carbon strategies for all types of territories, in
particular for urban areas, including the promotion of
sustainable multimodal urban mobility and mitigation-
relevant adaptation measures;
• promoting research and innovation in, and adoption of, low-
carbon technologies;
• promoting the use of high-efficiency co-generation of heat
and power based on useful heat demand;
118. TO5 promoting climate change adaptation, risk
prevention and management
• supporting investment for adaptation to
climate change, including ecosystem-
based approaches;
• promoting investment to address specific
risks, ensuring disaster resilience and
developing disaster management
systems;
119. Examples TO5
Flood protection
facilities protecting
bigger agglomerations
Complex ecosystem preservation and
renewal projects in national parks
Visitor/educational
centres
120. TO6 preserving and protecting the environment
and promoting resource efficiency
• waste sector
• water sector
• (conserving, protecting, promoting and developing natural
and cultural heritage;
• protecting and restoring biodiversity and soil and
promoting ecosystem services, including through Natura
2000, and green infrastructure;
• improve the urban environment, regenerate brownfield sites
reduce air pollution and promote noise-reduction measures;
• promoting innovative technologies in the above sectors
• supporting industrial transition towards a resource efficient
economy, promoting green growth, eco-innovation and
environmental performance management in the public and
private sectors;
121. Examples TO6
Sewage treatment plants with biogas
production
Solid waste deposits with
selective waste collection and
biogas production
122. Development of world heritage sites, Archabbeys of Tihany
and Pannonhalma, Hungary
Examples TO6
Tihany:
• Renovation of heritage sites, visitor centre
• Renewal of inner city
• Cycling and public transport friendly
developments
Pannonhalma
• Renovation of heritage sites
• New visitor centre
• Renewal of botanic garden
• Winery
• Accomodations
123. TO7 Promoting sustainable transport and removing
bottlenecks in key network infrastructures
• investing in the TEN-T;
• enhancing regional mobility by connecting
secondary and tertiary nodes to TEN-T infrastructure,
including multimodal nodes;
• developing and improving environmentally-friendly
(including low-noise) and low-carbon transport
systems, including inland waterways and maritime
transport, ports, multimodal links and airport
infrastructure, in order to promote sustainable
regional and local mobility;
• developing and rehabilitating comprehensive, high
quality and interoperable railway systems, and
promoting noise-reduction measures;
124. 198 million euros for upgrading the Hungarian
section of single track Vienna- Graz
Example TO7
• Extension two two tracks
• Flyovers and underpasses in big
cities
• Cargo platforms
• New passenger trains suitable for
daily commuting
Improved safety, reduced air and noise
pollution
Passenger numbers had risen by 20-26
% since completion
Follow-up projects: railway - tourism
125. TO8 promoting sustainable and quality employment
and
supporting labour mobility
• supporting the development of business incubators and
investment support for self-employment, micro-
enterprises and business creation;
• supporting employment-friendly growth through the
development of endogenous potential as part of a
territorial strategy for specific areas, including the
conversion of declining industrial regions and
enhancement of accessibility to, and development of,
specific natural and cultural resources;
• supporting local development initiatives
• investing in infrastructure for employment services;
126. Health Centre in Kőszeg, 700.00 eur, 100% financing
Municipality of Kőszeg also serving 15 settlements in the area
• Number of new or renovated doctor’s surgery: 11
• Number of new or renovated premises: 25
• Number of persons involved in quality outpatient care: 17350
Examples TO8
128. TO9 promoting social inclusion, combating poverty
and discrimination
• investing in health and social infrastructure which
contributes to national, regional and local
development, reducing inequalities in terms of
health status, promoting social inclusion through
improved access to social, cultural and
recreational services and the transition from
institutional to community-based services;
• providing support for physical, economic and
social regeneration of deprived communities in
urban and rural areas;
• providing support for social enterprises;
• undertaking investment in the context of
community led local development strategies;
129. Supporting Roma integration in Hungary
Health
Training and screening projects for healthy lifestylles and preventive. 10 NGOs
reaching out to 2 000 Roma people in 33 micro-regions.
Employment
Training, consulting and total quality management (TQM) services for SMEs and
micro-businesses in regions of high long-term unemployment is contributing greatly
to job creation.
Education
300 school buildings and pre-school facilities have been renovated and the
teachers have been re-trained for more inclusive, cooperative instruction methods.
Over 1 300 Roma students are now receiving support annually from special tuition
and mentoring networks.
know-how from the ‘Sure Start’ programme in the UK has been used to implement
a similar programme for young children (the ‘Biztos Kezdet’ programme).
Examples TO9
130. Housing
Project preparation a complex housing intervention that will de-segregate 100
ghetto-like shanty towns
Pilot programme in the micro-region of Szécsény
Hungarian Academy of Sciences as project leader
The micro-region is located in the deprived north-east of Hungary and is
characterised by high unemployment, a high percentage of Roma population
settlements and social disadvantages
• early development of skills;
• improvement of nutrition and health care for children;
• modernisation of social and children’s services
• improvement of housing conditions
• employment opportunities for parents
• education
Supporting Roma integration in Hungary
131. Social settlement rehabilitation in
SOPRON
Approved Funding: 1.815.740 Eur
The intensity of the support: 100%
Housing functions: energy efficient complex renovation of 4 buildings,
equipping 40 flats owned 100% by the municipality
Community functions:
• energy efficient renovation of Halász Miklós Sports hall
• development of public premises: renewal and expansion of the 1200
m2 playground in Kuruc street
Public service soft activites:
life skills-social-child welfare services,
Summer Vacation for all age groups
Number of inhabitants in the rehabilitated parts of settlements: 479
Size of area concerned with settlement rehabilitation interventions: 10,8
ha
Number of buildings concerned with the development: 5
Number of renovated flats: 40
133. • TO10 investing in education, training and
vocational training for skills and lifelong
learning by developing education and
training infrastructure
• TO11 enhancing institutional capacity of
public authorities and stakeholders and
efficient public administration
TO10 and 11
134. Examples TO 10
Kindergarten and school projects
1. Infrastructure:
2. Soft measures (ESF) are important:
• Improving teachers skills
• Improving curricula
• Equal opportunity trainings
Including
barrier free arcitecture
Energy saving equipent, renewaable energy
Leisure/sport facilities – community
functions
135. Cohesion Fund investment priorities
Art. 4 of CF Regulation (1300/2013)
• (d) promoting sustainable transport and removing
bottlenecks in key network infrastructures by:
– supporting a multimodal Single European Transport Area
by investing in the TEN-T;
– developing and improving environmentally-friendly
(including low-noise) and low-carbon transport systems,
including inland waterways and maritime transport, ports,
multimodal links and airport infrastructure, in order to
promote sustainable regional and local mobility;
– developing and rehabilitating comprehensive, high quality
and interoperable railway systems, and promoting noise-
reduction measures;
137. Intervention logic
– Outputs are the direct products of programmes;
they are intended to contribute to results.
– „Results” – new definition: the specific dimension
of well-being and progress for people3 that
motivates policy action, i.e. what is intended to be
changed
Change in result indicator ═ contribution of
intervention + contribution of other factors (former
impact indicator)
– Impact is the change that can be credibly
attributed to an intervention.
138. Conclusions
• OPs are financing documents: they should be
few in number and they should be simple
• Multi-fund programmes allow flexibility in what
types of actions an OP finances
• EU funding has to be more targeted – set
realistic targets in mainstream OPs and support
these targets with
– ETC and other European Funds
– National funding schemes
– Regulatory measures
139. Sectoral vs territorial approaches
Example of Hungary:
2004-06: 1 RDOP (359 meur of ESF, ERDF) through one single call, regional
sub-committees
• Tourism
• regional infrastructure and the communal environment (local roads, schools,
PT)
• human resource development
2007-13: 7 ROPs (460- 900 meur of ERDF), priority projects + more than 300
calls, 1 monitoring committee, uniform structure
• Economic development (SMEs, Industrial parks, incubators, clusters)
• Tourism attractions, accommodations and destination management
• Urban development
• Environmental protection and transport infrastructure
• Development of local and regional public services (schools, kindergarten,
crèches, hospitals)
2014-20: 1 Territorial and Settlement Development OP (ESF, ERDF), priority
projects form NUTSIII level+ calls
• Local economic development
• Urban development
• Environment and resource efficiency, Low-carbon economy measures
140. • Distribution of tasks among levels of public administration
– local,
– regional (NUTSIII or II)
– and central
Note: EU funding can not be expected change existing state structures
• Nature of challenges: local, regional, multiregional
• Size of regions or other territorial actors
• Type of potential beneficiaries: SME, NGO, local/regional public
body, central public body
• Added value of local initiatives
• Co-financing capacities and decisions
• Project generation, development and project selection have to
reflect the partnership principle (subsidiarity)
• Decentralization / deconcentration
• MA and IB functions are not the only way to empower regional/local
level - global grants, experimental projects, LEADER, EGTC, CLLD,
ITIs
Sectoral vs territorial approaches:
Important factors, conclusions