Cohesion Policy Looks to the Future SPECIAL EDITION

PANORAMASUMMER 2017 / No. 61

Cohesion Policy looks to the future SPECIAL EDITION

Regional and Urban Policy SUMMER 2017 / No. 61 PANORAMA EDITORIAL...... 03 Prof. Dominique Foray, Chair in Economics and Management of Innovation, Ecole Polytechnique Fédérale de Lausanne (CH)...... 28 Jüri Ratas, Prime Minister of the Republic of Estonia...... 04 CONVERGENCE BACK ON TRACK...... 06 Emma Marcegaglia, President of BusinessEurope...... 29

Brigitte Zypries, Federal Minister for Economic Affairs Kevin Morgan, Professor of Governance and Development and Energy (DE)...... 08 and Dean of Engagement at Cardiff University (UK)...... 30

Harris Georgiades, Minister of Finance (CY)...... 09 Neil Bradford, PhD, Chair, Department of Political Science Huron University College, Western University (CA)...... 31 Günther Oettinger, European Commissioner for Budget and Human Resources...... 10 Mario Monti, Chair of the High-level group on own resources.....32

Paul Magnette, Minister-President of Wallonia (BE)...... 12 DATA POINT 3: INDICATORS FOR ESIF...... 34 Stavros Arnaoutakis, Regional Governor of Crete (EL)...... 13 Eleni Marianou, Secretary General of the CPMR...... 36 Lena Micko, President of the Swedish Association of Local Authorities and Regions (SE)...... 14 Robin Huguenot-Noël, and Alison Hunter, European Policy Centre...... 37 František Lukl, President of the Union of Towns and Municipalities of the Czech Republic (CZ)...... 15 Daniël Termont, Mayor of Ghent and President of EUROCITIES...... 38 REGIONAL POINTERS IN EUROBAROMETER SPRING SURVEY...... 16 Leo Williams, Director of the European Anti-Poverty Network...39

Mari Kiviniemi, Deputy Secretary-General of the OECD...... 18 Karl-Heinz Lambertz, President of the Association Andrzej Porawski, Executive Director of the Association of European Border Regions...... 40 of Polish Cities (PL)...... 20 Michiel Rijsberman, AER Rapporteur Cohesion Policy post 2020....42 Iskra Mihaylova, Chair of the EP REGI Committee...... 21 Karen Coleman, broadcaster/journalist/moderator...... 43 Kalev Härk, Mayor of Valga (EE), and Vents Armands Krauklis, Mayor of Valka (LV) ...... 22 EUROPEAN WEEK OF REGIONS AND CITIES 2017...... 44 Xavier Valderrama, Coordinator of European urban development INTERREG VOLUNTEER YOUTH...... 46 projects, Santa Coloma de Gramenet Town Council (ES)...... 23 STUDENTS ON INTERREG PROJECTS IN MALTA...... 48 Michael Storper, Professor of Economic Geography at the London School of Economics (UK)...... 24 NEWS IN BRIEF...... 50 SMART SPECIALISATION COMPLEMENTS INNOVATION...... 26 AGENDA...... 51

Dear reader, this topic in more detail in the September issue, due to be published just before the European Week of Regions and Cities. The Cohesion Forum, which takes place on 26-27 June in We are also interested to hear your views on this topic: your Brussels, will be an important milestone in the discussion on experience, results, hopes, doubts and suggestions. Cohesion Policy post 2020 (#EU7CF). Please send your responses to [email protected] This special edition of Panorama gives the floor to representatives – ! of EU institutions, national governments, regional authorities, and have your say various associations and universities. We would like to express Happy reading our gratitude for their contributions. If you wish, you can also send us your thoughts (maximum 300 words) to be published in the "In Your Own Words" section of a future issue of the magazine. AGNÈS MONFRET Smart Specialisation strategies are mentioned several times in Head of Communication Unit, Directorate-General this issue, and many people underline their importance and would for Regional and Urban Policy, European Commission like to see the concept developed further. We will come back to

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EDITORIAL

We are at a crucial moment in the history of course, on what shape the future Cohesion of our continent. In recent years, Europe Policy should take. Our aim and under- has had to face a number of crises – standing is to achieve a Cohesion Policy economic, financial and political. that cares for everyone, is simple, fast, cost-effective, more flexible and able Yet, I believe that future historians will to encourage more reforms in the Mem- say that these crises have acted as a ber States. We aim to do this through catalyst, prompting Europe and more incentives and less focus on Europeans to ask themselves the key sanctions. questions: What Europe for tomorrow? What should it do? And how? In our thoughts about the next decade, we must keep in mind one thing most dear: our duty The biggest mistake we can make is to take Europe and to all Europeans to be as close as possible to their needs. its achievements for granted. In my mind, Cohesion Policy is And to make sure that everyone, no matter where she or he the cement that keeps our common values and objectives lives, can benefit concretely from the benefits linked to the together; the rock on which what we have built and the world Union and access the same opportunities. envies us for, rests. This is why, this issue of Panorama is dedicated to the post-2020 period, and therefore to tomor- Cohesion Policy is Europe at its best, a Europe that cares, and row's Cohesion Policy. a Europe that is building a better future for its children. 

In this issue, you will hear the views of a great many people from different backgrounds, including my colleague Günther Oettinger, Commissioner in charge of the EU budget. In a way, Panorama is kick-starting the broad debate on the future of our Cohesion Policy.

The Cohesion Forum, which will take place on 26 and 27 June, will also allow us to discuss the future of this policy, by CORINA CREŢU exchanging ideas face to face, and sometimes disagreeing European Commissioner for Regional Policy

3 Shared opportunities at home and abroad

As Estonia prepares to take over the EU Presidency later this year, Jüri Ratas, Prime Minister of the Republic of Estonia explains the importance of Cohesion Policy to his country and its citizens and how Europe as a whole can benefit in future.

How important have the EU cohesion state online. Cohesion Policy funds are important to regions and organ funds been for the Estonian citizens have stimulated the growth of exports isations when facing either specific since Estonia’s accession to the EU? and innovation as the number of regional cross-border challenges, like exporting enterprises has increased, protecting the Baltic Sea, or finding U Cohesion Policy has made and companies pay more attention solutions to Europe-wide joint problems a remarkable contribution to to innovation and product development. in different areas, for example energy EEstonia’s economic development Many schools, universities and hos efficiency. and competitiveness. Along with national pitals have been modernised. Cohesion funding, Cohesion Policy has enabled funds have also helped some Seamless physical and digital connec- important structural changes which 95 000 people to find jobs. Therefore, tions allow Member States to fully would otherwise have been very difficult Estonians feel the benefits Cohesion enjoy the economic benefits of the or even impossible to implement. Our Policy funds have brought very closely, Single Market and increase the experience shows that Cohesion Policy, which help to create and maintain jobs, Union’s competitiveness. We have combined with sound economic policy, increase productivity and support the good experiences and tangible results leads to convergence, which is the policy’s convergence of Estonia. in developing cross-border digital ser- main objective. vices, for example between Estonia Since its accession to the EU, what and Finland, where we see great There are also many very practical benefits has Estonia experienced potential for Europe overall. Develop- results of cohesion funds that Esto from collaborating with other ing a new high-speed European-gauge nians experience on a daily basis. For Member States and EU regions? Are railway, Rail Baltic, is an example of example, our citizens have better there any examples of lessons learnt cooperation with not only immediate access to clean drinking water, better which Estonia is applying? neighbours but also with other states roads and rail transport services, and which are affected by the construc- better access to fast broadband ser- Collaborating with other Member tion of this missing part of the core vices all over Estonia. With the help of States is vital to be able to overcome EU railway network. It has taught us EU funding, 99 % of the public sector challenges which cross borders and that it is crucial to achieve a common is now paper free, which has given encompass several states. One good understanding of the benefits of such Estonians an opportunity to conduct example is related to the European Ter- projects for citizens and businesses most of their daily affairs with the ritorial Cooperation programmes. These across countries.

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finances, and more. The second priority is continuing the work on the so-called The EU does not just need to speak ‘omnibus’ regulation which is aiming to as one, but also to act as one, because unity simplify the policy. This is a rather complex file, but we will certainly do our best shows its true value in action to advance it.

How do you see Cohesion Policy The second half of 2017 sees Estonia and prosperity. Keeping that in mind, the priorities and delivery mechanisms holding the Presidency of the Council goal of the Estonian Presidency is to work evolving aftter 2020? What are you of the EU, for the first time since with issues that help build and promote expecting from the Cohesion Forum accession in 2004. How does Estonia a Europe with an open and innovative taking place in Brussels end of June? perceive this opportunity? economy, keep Europe safe and secure, promote a digital Europe and free move- As Cohesion Policy is the only EU policy Estonia’s Presidency of the Council of the ment of data, and ensure that the EU’s that provides the stability and financial EU falls at a defining time for the EU. The activities are inclusive and sustainable. means for long-term structural reforms EU does not just need to speak as one, but it is a critical area of EU policy. Without also to act as one, because unity shows What are the priorities of Estonia's this, many reforms and much of the its true value in action. During our Presidency in the field of Cohesion economic progress in the Member Presidency, we aim to make an effort to Policy and how will you proceed? States and regions would stall. As we be stronger in the future so that the discuss how to make Cohesion Policy benefits coming from the EU should We have two main priorities in the area more efficient, we need to consider sim- eventually reach every country, city, of Cohesion Policy. The first is to advance plifying it and making it more results municipality and family. The Presidency’s discussions on the future of Cohesion based, as well as its harmonisation role is full of responsibility because the EU Policy in the Council. We are looking within the policy and with other EU has become an inseparable part of our forward to the 7th Cohesion Report, pro- funding instruments. The Cohesion everyday life. posals of the High Level Group on Forum in June is an ideal opportunity to Simplification led by Siim Kallas, the discuss how to make the Cohesion Policy What challenges does the Presidency reflection paper on the future of EU work best for Europe.  present to your country and how did these influence the setting up of the Presidency’s priorities? There are many very practical results Estonia’s main goal during the Presidency of cohesion funds that Estonians experience is to keep the EU united and decisive. The EU stands on the four fundamental free- on a daily basis doms and a shared understanding of peace

5 EU regions are converging again

This article shows how regional disparities in the Due to the economic crisis, the situation in Greek regions has EU have changed since 2000. The EU is committed deteriorated. In 2011, four of the 13 regions had a GDP per to reducing such disparities and Cohesion Policy head above 75 % of the EU average. In 2015, this fell to just two: the capital region Attiki (95 %) and Notio Aigaio (75 %). provides more support to less-developed regions to Italy also suffered during the crisis. In 2011, five regions help them catch up. A more detailed analysis will be reported a GDP per head below 75 % of the EU average, while included in the forthcoming 7th Cohesion Report. in 2015, seven regions did.

n 2015, more than one in four EU residents (27 % of total In Portugal, only two regions are above the 75 % threshold, EU population) lived in a region with a GDP per head (PPS) the metropolitan area of Lisbon (103 %) and Algarve (79 %), Ibelow 75 % of the EU average (see map) according to the with very little change since 2011. latest data published by Eurostat.

Most of these regions are located in central and eastern EU Convergence back on track Member States, but also in Greece, Southern Italy, Portugal and several of the outermost regions. All regions in Bulgaria The most recent data on GDP show the process of conver- and Romania – with the exception of the capital city regions gence among European regions, which was interrupted by the of Yugozapaden and Bucureşti-llfov – have levels below crisis but has slowly started to pick up again. Prior to the crisis, 50 % of the EU average. disparities between regional economies in the EU were shrinking (the coefficient of variation of regional GDP per head fell Nevertheless, between 2000 and 2015, all the regions in the by 12 % between 2000 and 2008). This was mainly due to central and eastern Member States increased their GDP per the regions with the lowest GDP per head growing faster than head relative to the EU average. Large increases can generally average and catching up with the more prosperous ones. be observed in capital city regions, as in Bulgaria and Romania where the GDP per head doubled relative to the EU average. and Slovakia where it almost doubled.

COEFFICIENT OF VARIATION OF GDP PER HEAD, EMPLOYMENT RATE (20-64), UNEMPLOYMENT RATE, EU-28 NUTS 2 REGIONS, 2000-2016

Coefficient of variation, 2000=100 Unemployment rate Employment rate GDP per head 120

100

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: Eurostat and DG REGIO calculations

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However, the crisis seems to have brought this trend to an Disparities in employment rates have been shrinking since end; between 2008 and 2015, regional disparities widened 2013, although this was preceded by a significant increase slightly (the coefficient of variation increased by 4 %), but as the result of the crisis. Disparities here still remain well remained well below the level in 2000. Between 2014 and above the pre-crisis levels. In contrast, disparities in regional 2015, disparities started to fall again, although it is too early unemployment rates continue to rise, but since 2012 the to say if this trend will be sustained. increases have slowed. 

Canarias

Guadeloupe Guyane Martinique

Mayotte Réunion

Açores Madeira

GDP per head (PPS, 2015)

Values for the 2 regions of Ireland have been estimated by using the national value.

Source: Eurostat, DG REGIO

7 Requirements of the future EU Cohesion Policy

At a time when many people are Because of its fundamental role in interlinking with country-specific rec- Eurosceptic, and in the face of strengthening the EU’s economic, social ommendations that can be addressed new global challenges, European and territorial cohesion, Cohesion Policy through the Cohesion Policy. will continue to be an investment Cohesion Policy is growing in area of outstanding importance and It is clear that requirements for the importance. It is an expression a key element of EU economic and existing management and control of our community of shared employment policy. In future, all system need to be simplified. Thus, it values and of the solidarity that regions within the EU will continue to would make more sense to simplify exists between the Member be supported by Cohesion Policy – support within the existing legal differentiated according to their framework, rather than announcing States of the European Union. respective structural development and again a complete system changeover. In all Member States and their regional needs. Therefore, the This includes a new, differentiated regions, numerous projects are most important goal remains to reduce approach. On the basis of objective and having a direct local impact. the backlog of severely disadvantaged non-discriminatory criteria, the vast regions. At the same time, however, differences between individual Member Cohesion Policy should also provide States should be better met than is the funds to help regions effectively tackle case today.  new challenges, such as migration and demographic change. Within the framework of the fund-specific Cohesion Policy can only objectives, Cohesion Policy supports smart, sustainable, innovative and be successful in the long term inclusive growth and employment. We if we simultaneously provide intend to continue the greater thematic the right macroeconomic concentration introduced in the current framework conditions funding period. Brigitte Zypries Federal Minister for Cohesion Policy can only be successful Economic Affairs and Energy in the long term if we simultaneously Germany provide the right macroeconomic framework conditions. In future, the t is already clear that the EU’s future emphasis should therefore be on multiannual financial framework will structural reforms in the Member Iface special challenges. Conse- States, as these require more support. quently, the weighting of European In this context, EU Structural Funds policy will shift somewhat. Faced with can serve as a major lever for neces- the likelihood of diminishing funds and sary structural reforms. To this end, thus the subsequent need to make cuts, we need to link Cohesion Policy more all areas of expenditure must make closely with EU economic coordination a contribution and Cohesion Policy is no and put in place effective incentives exception. In future, assistance from the for structural reforms. From our per- EU Structural and Investment Funds spective, in addition to strengthening must be better integrated and more the ex-ante conditionalities, this also efficient than ever before. requires closer and more systematic

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Cyprus' views on Cohesion Policy beyond 2020

The current and forthcoming In parallel, the trend of further aligning Furthermore, the ongoing efforts to discussions on Cohesion Policy Cohesion Policy with the EU’s wider simplify Cohesion Policy procedures and for the post-2020 period are objectives on growth and jobs should to streamline the control, monitoring continue in the post-2020 period. There- and reporting requirements will also being conducted in a strikingly fore, coherence and consistency with the render Cohesion Policy more accessible changed environment compared European Semester should be further to citizens and less intimidating in terms to the talks held for the period strengthened. of procedures/bureaucracy.  2014-2020. Regarding the future modes of financ- The Mid-Term Review of the Multiannual ing, the increasing momentum towards The role of financial Financial Framework, the debates on the a more intensive use of financial instru- instruments in the post-2020 future of EU spending and financing ments provides a good basis for focus- period will become more beyond 2020 and the upcoming Brexit ing investment on EU priorities. The role prominent due to the benefits negotiations render the circumstances of financial instruments in the post- for discussing the future of Cohesion 2020 period will become more promi- they provide in terms of both Policy complex and unique. nent due to the benefits they provide in the efficiency and sustainability terms of both the efficiency and sus- of public funding Post-2020 Cohesion Policy should con- tainability of public funding. tinue to pursue the reduction of regional disparities. In order to do so, the relative weight of Cohesion Policy in the forthcoming post-2020 MFF should remain high. The importance of maintaining a strong Cohesion Policy is particularly evident in small Member States like Cyprus, where the adverse effects of the recent economic and monetary crisis have seriously hampered its competitiveness and growth potential and imposed severe budgetary restrictions. Harris Georgiades Minister of Finance While maintaining its focus on dispari- Cyprus ties, future Cohesion Policy should also be capable of addressing the different social, territorial and economic realities in Member States. In this respect, the Another challenge the future Cohesion forthcoming discussions regarding the Policy will face is to make its perfor- allocation mechanism of the next Cohe- mance more visible to the wider society. sion Policy and its thematic concentra- The policy’s relevance to the economic tion could also explore some new and social aspects of citizens’ everyday avenues such as introducing specific life should be communicated more criteria related to national and/or meticulously, especially in Member regional needs and particularities. States at the periphery of the EU.

9 Overcoming economic and political challenges together

Günther Oettinger, European Commissioner for Budget and Human Resources reflects on the future role for Cohesion Policy in the EU’s budget

How can the next financial period be more in tune with current political I am particularly encouraged by the and economic challenges? common recognition of the key role the EU This is exactly what the reflection budget plays in the European construction, process on the future of the EU at 27 launched by the Commission should that it brings stability and is an expression tell us. Together with my colleague Com- of solidarity and the value of doing missioner Creţu, I am preparing a reflection paper on the future of the EU’s things together finances. It will contribute to the debate on the future of Europe together with without EU added value" should be our many regions. So, this policy should other papers on the EU’s political and guiding principle, reflecting that Europe remain an important part of the future economic priorities: the social dimension can best overcome both economic and EU budget. But we should be thinking of Europe, globalisation, defence and the political challenges together. if we can further enhance its EU added future of the Economic and Monetary value by focusing even more on pro- Union. It will present the various issues, What role do you see for Cohesion jects that contribute strongly to EU options and trade-offs which we might Policy beyond 2020 in helping priorities, notably growth and jobs. An have to address based on which scenarios Europe's economy grow? important question is whether we we choose for the future of the EU. should focus more on regions in need. Cohesion Policy has been a driver for We need to reflect how we can help I want this to be a positive debate. economic growth and jobs and has regions that are strongly affected by I believe this is possible: as long as the helped many regions to develop. There- globalisation and technological change. EU budget is better aligned with polit fore, it clearly has European added And finally, we need to be mindful ical priorities and focuses on pro- value. During and in the aftermath of to simplify its implementation rules grammes and policy areas with clear the economic and financial crises it in order to reduce the administrative European added value. "No euro spent helped to prevent major disruptions in burden for everyone.

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Communicating the results of Cohesion Policy in an effective manner is a must. It is a shared responsibility with the Member States, local and regional authorities

What I also find quite convincing, based States, local and regional authorities. construction, that it brings stability on current experience, is that cohesion But, while the regulations include a legal and is an expression of solidarity and policy is most effective when combined obligation to provide information about the value of doing things together. The with a national economic framework the projects funded by Cohesion Policy, demand to make the budget more conducive to growth, i.e. where the nec- it is important to find the right distribu- responsive to changing political prior essary structural reforms are being tion channels and to target the right ities and to bring it closer to the EU carried out to ensure the relevant legal audience so as to ensure the message citizens is certainly a common thread. framework, administrative capacity and gets across about the benefits of Euro- business environment are in place. So pean support. These are valid expectations of course, for me, the link between Cohesion Pol- but there are different ways and views icy and the larger economic governance The concrete actions to be taken must on how to achieve them. At this stage, agenda should be strengthened in the use all the existing tools, engage with I have no preconceived ideas on what the next financial framework. the national, regional and local author future MFF should look like… it is simply ities, and also balance the use of media too early to say. Although I have my pref- How would/can Cohesion Policy help and social media campaigns with public erences of course, most importantly the EU reconnect with its citizens? debates/events that both raise aware- I remain open to all stakeholders' views ness and give people the opportunity and the results of the public debate on The best way Cohesion Policy can dem- to give their feedback. the future of the EU at 27.  onstrate its value to the EU citizens is by meeting their needs and expectations: Various people and associations with deliver jobs and growth and contribute different interests have expressed their to addressing new priorities such as own views on the future Multiannual energy security, migration and defence Financial Framework (MFF). Do you and security. see one or more common threads in those opinions and, if yes, which ones? Of course, communicating the results of Cohesion policy in an effective manner I am particularly encouraged by the is also a must. Communication is common recognition of the key role a shared responsibility with the Member the EU budget plays in the European

11 Cohesion Policy: real added value for the regions

Faced with the current tool. This approach must not only be dissatisfaction in Europe – maintained; but must be further devel- judging by the many ongoing oped to ensure that Cohesion Policy is a major mechanism for regional strategies crises sweeping through it – the already in place across the EU. European Union must capitalise on its most efficient policies. Within the framework of the work initiated Of these, Cohesion Policy is by the ‘White Paper on the future of a core element and has proved Europe’, it is crucial that Cohesion Policy remains a core focus of discussions. While time and again to be one of the the 28, soon to be 27 Member States seek only policies able to help the EU Paul Magnette to re-establish the essence of the Euro- restore a positive public image. Minister-President of Wallonia pean project, the EU must avoid becoming a stranger to its own citizens by neglecting he 2014-2020 programming part of research and development this policy of solidarity between people. strengthened the Union both as activities. Meanwhile, as part of Euro- On the contrary, it must strengthen it in Ta major investment tool and as pean Social Fund initiatives, a million order to face the greatest challenge it has an essential mechanism for imple- participants, the majority of whom ever had to overcome: the emergence of menting the European agenda. By act- had particularly poor access to an EU strong in its multiple heritages and ing as a catalyst for public and private employment opportunities, received common future, and one that "speaks with investment in high-added-value Euro- support or training. one voice, in all its languages, from all pean projects and collaborations its souls".  through the Union, Cohesion Policy makes it possible to establish greater solidarity between the EU, Member Cohesion Policy is a core States and their regions, and more par- element and has proved time ticularly between the latter, businesses and again to be one of the only and citizens. policies able to help the EU restore a positive public The Forum is an opportunity, therefore, for the Wallonia region to show- image case the added value brought by Cohesion Policy, together with the policy’s many proponents. It is also important to stress the importance of developing an integrated In Wallonia, during the 2007-2013 approach to regional development, programming, 10 996 jobs were cre- strong ecosystems and collaborations ated through business and job-crea- with other European regions, and, in par- tion support measures funded by the ticular, developing a regional strategy for European Regional Development Fund, smart specialisation, which has proved and 401 researchers were recruited as to be a remarkably effective coordination

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Making adjustments and going for growth

Developments in the context of resources. The evaluation of the 2007- the EU’s Cohesion Policy signify 2013 period reveals that, especially for a change in direction, based on the Convergence Regions, the Structural Funds secured a 4 % increase in GDP. In recognition of the importance of addition, 122 000 new small and medium- the territorial approach towards sized enterprises and 322 000 jobs were regional development. created. In total, more than 940 000 new jobs have been created by all the Funds. At the same time, the course of the Greek and European economies is bound As many European regions are being up with developments in the global eco- affected by the economic crisis, Cohesion nomic sphere. At a European level, the Policy is being called upon to make a sub- Stavros Arnaoutakis nature of the crisis and the close inter- stantial contribution to efforts towards Regional Governor of Crete connection of the economies require the recovery of national and regional a new form of international understanding economies. Indeed, the regulatory frame- and coordinated action. work for the 2014-2020 period encour- this policy, with the aim of safeguarding ages us to direct the available resources it from short-sighted political consid- towards those sectors and activities which erations. We are willing to engage in result in the greatest growth. a meaningful dialogue which will iden- Cohesion Policy is being tify the necessary institutional adjust- called upon to make It is a fact that the added value and effi- ments, procedural simplifications and a substantial contribution cacy of the Cohesion Policy is now being strategic options that will strengthen towards the recovery of discussed by policymakers, academics Cohesion Policy, with obvious implica- and other interested parties. tions at both the European and the national and regional international level.  economies As a representative of Crete – a European island region – I would like to emphasise that the Cohesion Policy is a vital policy Given this, Cohesion Policy is one of the for the progress of European regions and basic pillars of the structure. In this way, the prosperity of the citizens. It is one of Greek Regions – including the Region of the main pillars of the European Union Crete – have benefitted significantly, which must be continued after the end since community resources of around of the current programming period. EUR 64 billion have flowed into our Indeed, the possibility of additional sup- country in the last two decades. port should be considered so that it is in a position to respond to the role it is These resources have contributed being called upon to perform. to the development of a significant infrastructure network, enhancing entre For that reason, all of us who represent preneurship, modernising public European regions have a duty to high- administration and improving human light the benefits and significance of

13 Cohesion Policy is crucial for a broad innovation capacity throughout Sweden’s regions

Against the backdrop of the frictions that are being felt within the EU at present, a strong Cohesion Policy is more important than ever. It is through the Cohesion It is through Cohesion Policy that local Policy that local authorities and authorities and regions are linked with regions are linked with the the European project. At a local level, the EU becomes visible and makes a dif- European project. At a local ference for citizens through these level, the EU becomes visible and investments. Cohesion Policy can play makes a difference for citizens a decisive role in restoring a part of the through these investments EU's lost credibility.

In Sweden, the European Social Fund (ESF) In Sweden, Cohesion Policy also plays has played an important role in helping a decisive role in supporting the regions’ Lena Micko the large number of newly arrived immi- work with innovation. Smart specialisation President of the Swedish Association of Local Authorities grants in many municipalities and regions. is a particularly successful working meth- and Regions (SALAR) For example, measures in guidance and odology for focusing resources regionally. language training are being financed with It is based on each region’s specific he EU is currently facing major the aim of helping newly arrived female strength and is important for the whole challenges. The flow of refugees immigrants with professional qualifi- of Europe to develop. A clearer focus on Thas placed a tremendous strain, cations to find employment. However, smart specialisation in the next program- not only on many individual Member SALAR feels that certain adjustments in ming period would lead to a more strate- States, but also on European cooperation orientation will become necessary. gic linkage between projects, better as a whole. The result of the UK referen- synergies with other EU programmes, and dum has also contributed to frictions in We believe that the funds can be used in better complementarity and cooperation European cohesiveness. In addition, the an even more effective manner to support between regions across Europe.  EU is facing major global challenges, integration initiatives. We advocate the such as climate change, urbanisation, an establishment of a specific employment ageing population as well as structural initiative for newly-arrived immigrants challenges in the labour market due to within the ESF, similar to the employment rapid technical development. These chal- initiative for young people which the Euro- lenges will certainly need to be addressed pean Commission launched in the current in the upcoming financial framework. programming period.

The existing Cohesion Policy already Such an initiative would be aimed at All of Sweden’s 290 municipalities and addresses many of these challenges and the Member States and regions that 20 county councils and regions are contributes to mobilisation at a local and have received the greatest number of members of the Swedish Association of regional level, which is crucial when it immigrants, and its objective would be Local Authorities and Regions. SALAR comes to achieving concrete results. I am to create conditions for integration and represents and acts on their initiative with convinced that this policy must also have training for this target group. In this way, the mission to provide them with better a prominent role in the upcoming multi- the ESF would meet the competence conditions for self-government. annual financial framework. and skills needs regionally. https://skl.se/english

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municipalities’ ability to use Cohesion Going local to overcome Policy tools. Primarily, these are a heavy administrative burden, and complicated regional disparities and non-uniform rules that are difficult to follow, especially by smaller towns In the Czech Republic, the pre and municipalities. This is why these local governments are less successful conditions for local governments in drawing European subsidies. to access more European subsidies include less red tape, fewer checks A complex control system is another big and a better system. problem in the Czech Republic. Different control bodies check the same projects, often reaching different conclusions. uring the 2007-2013 program- Thus, municipalities live in constant fear ming period, local governments of sanctions. This certainly does nothing Din the Czech Republic imple- for the stability of the system for draw- mented over 23 000 projects, worth more František Lukl ing European subsidies, and even com- than CZK 153 billion (approximately President of the Union of Towns and pletely discourages many local EUR 5.46 billion), using European subsi- Municipalities of the Czech Republic governments from implementing any dies. Thus, EU funds have played, and are EU-financed projects. still playing, an important role in public- Cohesion Policy tools are sector financing. They have allowed sig- When preparing the next programming nificant investments to be made in the a heavy administrative burden, period, it is essential that local informa- environment, for example, and smaller and complicated and non- tion and experiences be taken into con- projects to be supported that are essential uniform rules that are difficult sideration. The administration necessary for local development. to follow, especially by smaller for European projects should be reduced, the subsidies system simpli- To benefit a specific location and its towns and municipalities fied, and checks streamlined. Only then population, towns and villages could will local governments have the appetite draw double the amount of money A territory’s real needs can only be ascer- (and courage :-)) to implement projects from the European funds than was tained locally, from below, which means financed by European subsidies and fur- available in the first programming a territorial approach has to be pro- ther pursue Cohesion Policy’s main goal period. The use of economic, social and moted. For this reason, any future calls of reducing regional disparities.  territorial Cohesion Policy funds has should focus on overcoming regional been, is, and – it may be expected – will economic differences. By now, it is clear continue to be one of the greatest that Cohesion Policy should not focus on opportunities the Czech Republic has economic, investment topics only but gained by joining the EU. should seek to make remote rural and mountainous areas and interior peripher- In terms of effective absorption, ies more attractive by supporting their future Cohesion Policy should be growth and increasing local employment based on the outputs of individual and quality of life. The goal should be states’ regional and national strate- for people to remain in these areas and The Union of Towns and Municipalities gies. Simply put, it should be based further develop their territory. of the Czech Republic is a voluntary, on the specific needs of the given apolitical and non-governmental country. Appropriate settings in coop- As president of the Union of Towns and organisation founded as an interest eration with regional partners accur Municipalities of the Czech Republic and group of legal entities: ately show the areas that need to be mayor of the Czech town of Kyjov, focused on, and therefore supported, I would also like to point out that there http://www.smocr.cz/default. in the Cohesion Policy. are some obstacles that restrict the aspx?languageCode=EN

15 Citizens’ awareness and perception of EU Regional Policy on the rise

The latest regional policy specific Eurobarometer their country). This impressive result may be linked to the survey (Spring 2017) provides many interesting results coverage disaster relief is given on national prime-time TV which, once again, provide useful pointers for every- news across Europe. one working in EU regional policy communications. Greater awareness and positive perception Awareness of regional policy projects is slightly higher at the The European Solidarity Fund is very popular EU level, compared to the previous survey in 2015: 35 % of For the first time, citizens were asked about the European respondents said they had heard about EU co-financed projects Solidarity Fund. An impressive 59 % said they had heard about in their city or region, which is an increase of 1 percentage it (of whom 38 % were not sure whether or not it was used in point (pp). There are significant variations between countries,

Chart 1 and Chart 2 Europe provides financial support to regions and cities. Have you heard about any EU co-financed projects to improve the area where you live? (% – YES)

PL 80 EU28 35 61 - 100 CZ 68 IE 35 LT 66 CY 33 40 - 60 FI SI 65 ES 30 SE SK 63 PT 29 26 - 39 LV 62 LU 27 EE HR 62 FR 27 0 - 25 HU 60 DE 25 LV MT 59 FI 24 DK LT EE 54 SE 22 IE RO UK UK 44 18 NL PL EL 43 NL 18 BE DE IT 40 BE 17 CZ BG 40 AT 16 SK DK 14 AT HU RO FR SI HR BG IT PT ES EL CY MT

Chart 2 80 68 66 65 63 62 62 60 59 54 44 43 40 40 35

61 - 100 69 80 76 58 67 73 66 67 69 59 60 52 71 65 63 68 65 64 39 57 59 62 67 39 35 59 57 53 50 64 46 45 45 38 73 45 62 43 33 48 43 17 27 24

40 - 60 PL CZ LT SL SK LV HR HU MT EE RO EL BG IT IE

35 33 30 26 - 39 29 27 27 25 24 22 18 18 17 16 14 0 - 25 34 34 34 41 24 28 43 33 67 50 51 29 25 28 26 26 27 32 19 15 26 34 24 22 28 23 21 19 15 21 13 10 9 15 17 21 22 16 17 16 13 16 EU28 CY ES PT FR LU DE FI SE NL UK BE AT DK

June 2010 Sept. 2013 June 2015 Mar. 2017

16 PANORAMA / SUMMER 2017 / No. 61

Chart 3 Taking into consideration all the 2 3 3 6 6 1 2 5 7 4 7 7 4 7 4 8 7 8 5 11 7 4 7 9 6 13 8 12 14 0 2 4 5 4 6 2 2 4 6 2 2 5 4 4 6 7 4 11 5 8 7 6 projects you have heard about, would 4 9 12 16 1 9 23 1 1 1 3 5 5 3 3 5 6 6 8 you say that this support has had 0 5 3 4 6 9 9 8 11 97 94 5 6 5 9 92 91 89 89 89 88 3 a positive or negative impact on the 87 87 86 85 85 84 84 83 82 82 5 79 79 79 79 78 77 77 20 75 71 development of your city or region? 67

(% – YES) 43

IE PL MT EE LT CY HU LV AT SI LU CZ BG UK EL FI DE SK HR NL ES RO EU28 PT FR SE BE DK IT

Positive Negative No impact (SPONTANEOUS) Don't know

0 10 20 30 40 NATIONAL TV 37 3 Chart 4 Where did you hear about it? LOCAL OR REGIONAL NEWSPAPERS 33 = And when? (multiple answers possible) INTERNET 30 3 (% – EU) LOCAL OR REGIONAL TV 23 = Mar. 2017 NATIONAL NEWSPAPERS 20 = 19 1 June 2015 BILLBOARD PERSONAL KNOWLEDGE 19 1 WORKPLACE 14 1 NATIONAL RADIO 13 1 LOCAL OR REGIONAL RADIO 12 1 ONLINE SOCIAL NETWORKS 9 2 OTHER (SPONTANEOUS) 13 2 DON'T KNOW 2 1

ranging from Poland (80 %), the Czech Republic (68 %) and Which media to prioritise? Lithuania (66 %) to 14 % in Denmark, 16 % in Austria and The survey also provides detailed analysis about the type of 17 % in Belgium. See chart 1 for details. media through which citizens hear about EU regional policy projects. Broadly speaking, TV (national and regional combined) Slovenia (+13pp), Ireland (+11pp) and the United Kingdom remains the most important source, with 60 % of mentions, (+9pp) demonstrate the biggest increase in awareness, followed by newspapers (regional and national) with 53 %, then whereas Hungary (-7pp), the Czech Republic and Luxembourg the internet and social media with a combined 39 % of men- (-5pp each) face a decline in awareness. Chart 2 highlights tions (multiple answers were possible). With 19 % mentions, this trend. billboards and commemorative plaques also play an important role (see chart 4).  Attracting citizens' attention is only really worthwhile if EU investments in the regions are perceived positively. The results are encouraging: 78 % of the respondents who said they were KEY FINDINGS AT A GLANCE IN THE aware of such projects had a positive opinion on their impact COUNTRY FACT SHEETS (see ). This is up 3pp from the last survey. Overall, chart 3 Readers interested in the key findings for a specific country with the exception of Italy, at least two-thirds of citizens in should refer to the regional policy country fact sheets all Member States acknowledge the positive impact of these available online in the national language(s) and English investments, with Ireland (97 %), Poland (94 %) and Malta (see: http://europa.eu/!fp74dJ). For a detailed analysis by (92 %) leading the way. country, a closer look at the Eurobarometer report or even the data sets is recommended.

17 Making the most of ESI Funds

Panorama speaks to Mari Kiviniemi, Deputy Secretary-General of the OECD. The Organisation for Economic Co-operation and Development explains the importance of place-based initiatives and the efficient coordination and application of European funding instruments to improve investment and its impact at the local, national and regional level across the EU.

What are the general views of the that they add to, rather OECD about the European than replace, national Structural and Investment Funds? public spending and that ESI funds are one of the funds are spent effi- The European Structural and Invest- ciently. The third, but few instruments of solidarity ment funds are an important place- equally important, is to across EU countries, which is based dimension in the EU’s policy ensure they are well toolkit. In recent years, these funds coordinated across levels particularly important for have gradually become part of the of government and align euro-zone countries for which overall package of structural policies, with investment decisions given their growing focus on key across national, regional there are no intergovernmental enablers for economic growth, including and local spheres, which budget transfers infrastructure, innovation and skills. would help to improve The ESIF should continue to focus on investment efficiency. these growth-enhancing objectives and upon an OECD analysis, currently being resist rising pressures to divert such What should the role of these funds be finalised, EU budgetary practices include funds to other needs. However, these within the EU budget and, more gener- many effective and innovative aspects policies must be complemented by ally, in achieving economic policy goals? that may hold lessons for national gov- important considerations. The first is a ernments reflecting on their own agen- need to differentiate them across Compared to OECD standards, the EU’s das of performance-focused budgetary regions, to ensure that they can priori- system of budgeting for performance reform. In particular, the EU’s ‘Budget tise the most pressing needs of each and results is amongst the most focused on Results’ is a worthwhile ini- place. The second is to ensure addition- advanced in the standard index of per- tiative aimed at further strengthening ality in EU regional policy to guarantee formance budgeting frameworks. Based the linkages between money spent and

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A unique feature of ESI Funds is the longer time frame of the formalised commitment, which is over seven years, as compared with shorter time frames for territorial policies in countries outside of Europe visible impacts. The OECD sees scope capacity are key to maximising their or local economy. In the case of ESIF, over for EU budget practices to benefit further impact at national and sub-national level. the last decade, many countries where by developing clear, concise articulations To help manage this mutual dependency these funds have supported convergence of economic and other policy goals on public investment, the OECD has have also experienced fiscal consolida- and results, ex ante and ex post, helping developed 12 principles on Effective Pub- tion/tightening in the aftermath of the both the Parliament and Council to lic Investment Across Levels of Govern- financial crisis, leading to a strong con- engage more fully with the EU budget’s ment which have been endorsed by the traction in public investment in Europe. policy substance. EU Committee of the Regions. The guide- However, these funds have been one of lines cover how to manage challenges the few stable sources supporting invest- In line with the OECD inclusive growth linked to vertical coordination, horizontal ment during this period, particularly for agenda, the EU budget funds actions to coordination across jurisdictions to invest sub-national governments. address both growth and cohesion object at the relevant scale, sub-national capac- ives. Given the funds’ strong orientation ities and broad framework conditions for A unique feature of ESIF is the longer toward investments, they should aim to effective public investment. time frame of the formalised commit- increase the productivity growth of Euro- ment, which is over seven years, as pean economies. At the same time, the The OECD recommendation highlights compared to shorter time frames for funds are one of the few instruments of that governance instruments are territorial policies in countries outside solidarity across EU countries, which is needed to manage this coordination, of Europe. Therefore, ESIF provides particularly important for euro-zone which does not happen spontaneously. a long-term structural adjustment countries for which there are no inter Such tools include, for example, dia- policy tool to help regional economies governmental budget transfers. However, logue platforms, co-financing arrange- anticipate and adapt in order to offer there are important questions concerning ments, and financial incentives for residents everywhere an opportunity to the type of investments made, as Euro- coordination. Conditionalities can also find viable development options. Our pean value added may be less clear cut, foster better governance of public studies on countries across the OECD particularly when resources are used for investment, under certain conditions. reveal two key ingredients for the short-term relief. In the EU, ex-ante conditionalities, design of successful territorial policies. introduced in the 2014-20 financial The first is the need to build effective What major conditions are required period, ensure a direct link between the linkages between cities and rural areas to maximise their impact and for their investments co-financed by the ESI in terms of infrastructure policies, spa- efficient implementation? Funds and EU-level policies, and help tial planning, labour market integration trigger policy reforms to promote the and governance responses. The second It is important for ESIF investments to be better implementation of funds. is the importance of the tradable sec- growth-friendly to leverage their impact tor, i.e. those exposed to international in terms of the composition and effi- How do you assess European competition, for the catching-up pro- ciency of public finances. If deployed to Cohesion Policy and these funds cess of lagging regions. Our studies “crowd in” national public funds and pri- compared to other territorial policies reveal that the regions catching up vate investment, they can foster greater in non-EU countries? tend to be more specialised in these investment and productivity. Sound tradable activities.  governance frameworks better able to It is extremely difficult to evaluate coordinate investment across levels of the impact of any policy on the perfor- government and upgrade administrative mance of one particular country, region

19 Territorial tools to tackle regional and local priorities

The sustainable development of the whole of Europe will not only Territorial instruments should focus on the improve its economic attractiveness, but will also improve its ability challenges facing functional urban areas to solve various – both existing and future – financial, economic in optimising the use of local resources and improving living and business condi- and social crises. tions. Such instruments dedicated to the greater inclusion of rural areas in develop- he fundamental importance of ment processes are also required. The Cohesion Policy has resulted specific nature of the challenges facing Tdirectly from the Lisbon Treaty and these areas requires the creation of ter- continues today. The elimination of devel- ritorial tools within Operational Pro- opment disparities is a decisive factor in grammes that also take into account the Europe’s competitive position on a global resources of the European Agricultural level. This is reflected above all in the Fund for Rural Development. fact confirmed by EU institutions that every euro invested in Cohesion Policy A radical change is required in the way EU generates on average EUR 2.75, despite citizens are informed about the effects of the excessive bureaucracy and complex- Cohesion Policy. Although undeniable, ity of the policy’s instruments. Andrzej Porawski these effects are almost completely Executive Director of the unknown to citizens who are unaware of Association of Polish Cities the significance of the policy’s social, eco- A radical change is required in nomic, environmental, cultural and civili- The concentration of interventions in sation results. And it is Cohesion Policy the way EU citizens are informed priority areas is one great advantage that can contribute most to overcoming about the effects of Cohesion Policy. of Cohesion Policy. Obviously, the new identity crisis in the EU – all the more so Although undeniable, these effects programming period may see an because its effects are enjoyed both by are almost completely unknown adjustment in priorities, adapting them beneficiaries and by highly developed to citizens to rapidly evolving needs and chal- areas, for example in the form of addi- lenges. However, it should also enable tional orders, growth in exports, capital better flexibility in determining detailed expenditure and new jobs.  Faster development of many parts of objectives in priority areas. Europe does not only activate the so far unused inherent potential, but also From this perspective, empowering makes these areas more attractive to regional and local authorities to specify investors, tourists and other partners in detail objectives for adopted interven- from all over the world. tion areas is important. The regional and The Association of Polish Cities helps the local (as regards urban functional areas) country’s cities to develop socially and Cohesion Policy also delivers measur- Operational Programmes should be the economically, and to disseminate good able results, which can be seen in tools used to implement Cohesion Policy. practices in modern and innovative govern- Poland, for example, by the develop- The regional authorities or local authori- ance of communities. It works with public ment of areas covered by the special ties’ consortia should operate these and private entities to create the best ‘Eastern Poland’ programme and the programmes, which should be created possible conditions to enable cities to pro- current faster rate of increase in the and implemented in accordance with the vide public services of the highest quality: development indicators for rural areas principle of the territorial orientation of as compared to cities. interventions. http://www.zmp.poznan.pl/en

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Flexibility, simplification, competitiveness and innovation for post-2020 Cohesion Policy

Today, the European Union is the further prolongation of the EU Struc- confronted with unforeseen tural Reform Support Programme will challenges of an unprecedented contribute to the efficient and more effective use of Union funds. Enhanced scale. There is a strong need complementarity in the implementation to focus on public and private of ESI Funds, EFSI and other financial investment, to enhance the instruments, must be assured to help EU’s competitiveness, to achieve countries and regions unlock new growth better coherence between potential and raise their productivity and competitiveness. different strategies, as well Iskra Mihaylova as their links with national Chair of the EP Regional I would like also to point out the sectoral and regional strategies. Development Committee importance of the prolongation of EFSI and completion of the revision of the ohesion Policy remains the main Semester and EU economic governance Financial Regulation 2014-2020 and its investment policy and has the process should be maintained to ensure subordinate acts, which will pave the way Cpotential to contribute signifi- the right framework for investment to flexibility, simplification, leverage cantly to Europe’s sustainable develop- from the European Structural and effects and more investments. ment, to achieve economic, social and Investment (ESI) Funds. territorial cohesion in Europe. These goals It is extremely important to establish are more relevant than ever, given European territorial cooperation (Inter- mechanisms and broad institutionalised the crises that threaten the very heart of reg) has proved its effectiveness and platforms for cooperation to ensure bet- the European Project. added value to EU objectives, contribut- ter visibility and awareness-raising of the ing to strengthening territorial cohesion successes and best practices achieved in The Committee on Regional Develop- and, as such, should remain an important the implementation of ESI Funds.  ment has been coordinating well with instrument post 2020. the European Commission, the Council, the Committee of the Regions and inter- The EU Structural Reform regional cooperation organisations. It Support Programme will has been focusing its efforts on providing support for, and scrutiny of the contribute to the efficient implementation of Cohesion Policy, its and more effective use of overall impact, as well as outlining Union funds trends for its future development. Urbanisation will be the defining trend The future modernised Cohesion Policy over the next few decades which means should be based on performance-based that better coordination of EU policies budgeting, ex-ante conditionalities and impacting on cities will be essential. thematic concentration while, at the same time, allowing for flexibility to Better coordination is needed between respond to specific needs which may the EU’s priorities, national needs, arise suddenly. Links to the European regional and local needs. In this context,

21 Double vision for Cohesion Policy post 2020

Mayors from the cross-border twin-city of Valga and Valka present their vision and dreams post 2020 for the EU’s regional and urban policy.

he cities of Valga (Estonia) and Valka (Latvia) present one of Tthe most vivid examples of how two neighbouring countries carry out the EU’s basic values. These focus on Vents Armands Krauklis Kalev Härk free people, employees, capital, and Mayor of Valka (LV) Mayor of Valga (EE) movement of services which promote development both in Latvia and Esto- nia – hence joint projects are a neces- We hope that with greater support example to convince Eurosceptics that sity for life and the future. from the Latvian and Estonian govern- the EU is the only option on how to be ments and EU institutions we can take competitive in the world.  steps towards functioning as one city Valga-Valka is ready to set in reality with a highly skilled joint a model for similar areas and medical service, an improved educa- tional system, and joint business cities as we have the experience, development and labour market. good will, and plans for joint development Differences in legislation, including taxes, should not hinder this development. Twin cities need special laws This cooperation will be strengthened and agreements between the states with the help of the EU project `Valga- and at the European level. Valka twin town centre development`, which is also a remarkable example of Valga-Valka is ready to set a model for how the EU takes care of regional similar areas and cities as we have the development. Here, we should also experience, good will and plans for joint mention that architects from Spain, development. Nowadays, when the Estonia, Latvia and Italy will change future of the EU is being debated, our these visions into reality. success story can serve as an excellent

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Cohesion through inclusion: that is our challenge for the future

We often hear that the European as a whole, the most worrying being the Union is removed from the growing number of people living at risk people and is only concerned of social exclusion. The economic crisis has caused greater inequality in our with major economic policies. societies and is one of the main reasons I would like to invite these for the political indifference affecting all critics to visit Santa Coloma levels of government. A paradox could de Gramenet and discover how occur whereby, after what I have just a structural policy has directly explained about how essential participation in the EU is for improving people’s and tangibly changed the lives lives, and despite the efforts made to of many people. Xavier Valderrama convey this, the public continue to blame Coordinator of European urban institutions and attribute some respon- n Santa Coloma de Gramenet in development projects, Santa sibility to them if levels of government Catalonia, people can enjoy the Coloma de Gramenet Town become more distant. Council Iwonderful rehabilitated natural setting of Besòs Waterways Park, stop at the Therefore, the new post-2020 Cohesion public library located opposite a municipal We see these opportunities as part of Policy should reaffirm its priorities for company centre, go swimming in the an ongoing process to make the city social inclusion in all its regional policy sports centre or do some shopping in more balanced and self-sufficient, and frameworks. And specifically it should Fondo Market while waiting for their we have added an integrated approach put forward, as a requirement, that urban children to come out of the state nursery to sustainability, public participation and development strategies must include in the same building. A large part of this new local governance to our existing a plan to combat social exclusion, includ- route can also be followed along streets local heritage. ing quantifiable goals, and that this prior- which, like the areas and infrastructures ity should be given greater funding. From mentioned above, have received Cohesion now on, the strategies in our towns and Policy financing. cities should focus on urban development I would like to invite these that is sustainable, integrated and inclu- In a metropolitan town with few financial critics to visit Santa Coloma sive. Nobody in society should be left resources like ours, we understood the de Gramenet and discover how behind. We can only achieve cohesion need to secure financing to implement a structural policy has directly through inclusion, and can only grow by our projects right from the start. We did becoming more cohesive.  this through the first URBAN Community and tangibly changed the lives Initiative – part of the Structural Funds of many people – for specific urban actions in the Cata- lonia Operational Programme. And we are continuing to do it in the 2014-2020 Although the Cohesion Policy experience period through integrated sustainable has been very beneficial, enormous urban development strategies. challenges remain for European cities

23 INTERVIEW WITH MICHAEL STORPER, PROFESSOR OF ECONOMIC GEOGRAPHY AT THE LONDON SCHOOL OF ECONOMICS

Regions matter more than ever in a globalised world

Shortly before the Commission You started your presentation by by “efficiency” we mean that we published the reflection paper quoting The Economist saying: concentrate everything in the highest “Regional inequality is proving too income regions and expect that there on Harnessing Globalisation, politically dangerous to ignore”, and you will be a diffusion of benefits to all it organised a high-level seminar go on to note that this inequality further other regions. on ‘Globalisation: Why regions accentuates the dilemma we have about matter’ to discuss the geography whether to invest in more developed or The mechanisms of diffusion have weak- ened: skills are becoming concentrated of growth, jobs and inequalities less developed regions. So what is more important: efficiency or equity? in fewer places; innovation is doing the in Europe, as globalisation, same; migration is slowing down and technological change and For this high-level meeting I worked with becoming more selective, with one circuit sustainable development impact my colleagues Simona Iammarino and for skilled people and another for the less EU regions in different ways. Andres Rodriguez-Pose to prepare skilled. This means that in the long-run, a study entitled ‘Regional Development people who are being underutilised in Professor Michael Storper at the Centre of Europe’s Economic many regions cannot develop their tal- attended this seminar. Future’. We argue that there is no longer ents, it is more and more difficult to a simple trade-off between efficiency migrate, and entrepreneurs are not able and equity: this is an outmoded idea if to effectively enter the market.

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We want to get the benefits of concentration and specialisation, but we also want to spread these benefits to more regions by overcoming the barriers to innovation, entrepreneurship, skilling and mobility that exist

Therefore, a policy that invests in the more effective. Realistically, not every and income in metropolitan areas long-term capabilities of people, firms region can specialise in the same type around the world, in every country. So, and individuals in all regions will be of thing: thus, there's no point in pro- regions actually matter more than ever more efficient than one that assumes posing that every region should try to in a globalised world. In light of this, we that geographical concentration will become a ‘little Silicon Valley’. want to get the benefits of concentra- benefit all people and all regions. At tion and specialisation, but we also the same time, this is not an either-or: Instead of a blanket approach to want to spread these benefits to more we must continue to support Europe’s innovation and specialisation, we regions by overcoming the barriers to world-class metropolitan regions and introduce the concept of ‘development innovation, entrepreneurship, skilling clusters in the face of ongoing global clubs’ which refers to regions at and mobility that exist. These barriers competition. This policy is based on a different levels of per-capita income. are in some way being reinforced by redefined notion of “equity”: it rejects The challenges and near-term goals for current market trends, and diffusion the older notion of redistributing from low-, middle- and high-income regions mechanisms are too weak to do the job the most successful regions to all are very different. What is ‘smart’ is for of spreading wealth and opportunity. other regions, and replaces it with a regions to understand which develop- definition of equity that is based on ment club they are in, and their realistic To do this, we propose what we call stimulating development in all regions. smart specialisations in the medium ‘place-sensitive distributed development term. This notion gives additional strategies’ (PSDDP), which are develop- Indeed, you mention talents, and you precision to the concept of smart ment strategies adapted to the precise might already know that regional specialisation. but different needs of low-, middle- and policy has introduced a new concept: high-income clubs of regions in Europe. smart specialisation. This basically Lastly, I would paraphrase the title Each of these clubs has a different stra- means that we encourage regions to of your presentation: Globalisation: tegic guiding principle and hence differ- identify their own strengths, their do regions matter? ent mixes of policies and measures for comparative advantages, and invest each type of territory.  in those areas. And you also introduce In fact, globalisation has made regions in your presentation a policy based on matter more and more, because it differentiation. Do you find turns out that while globalisation similarities between the two? spreads wealth around the world, and there are 500 million Chinese who have Yes, we propose to deepen the concept now entered the global middle class of smart specialisation and to give it because of it, at the same time within some additional tools so that it can be every country it concentrates wealth

25 The international dimension of smart specialisation

Corina Crețu, European Commissioner for Regional Policy, Smart Regions Conference, Helsinki

Smart specialisation is a fresh bottom-up, place- building cannot be done in isolation or in a purely inward- based approach to innovation and economic trans- looking perspective. It needs international benchmarks and formation in Europe. It is also a strong component cooperation to develop strategic capacities, make choices, be challenged by critical friends and develop partnerships. of regional development through innovation, with Such interregional cooperation networks enable mutual a perspective for all regions in Europe to reap the learning on good innovation governance and benefits from benefits of knowledge-driven growth. knowledge spillovers.

Smart specialisation is opening up new opportunities for interregional cooperation around shared priorities, thereby com- Outward-looking innovation strategies plementing one other's strengths and reshaping the European growth and integration model. The European Council, the The development of smart specialisation strategies has often European Parliament and the European Committee of the focused initially on governance2 to identify promising invest- Regions have all highlighted the need to further build on this ment areas in a region to build its comparative advantages, approach1. but often with little attention to other regions and their competitive advantages. Many regions have since realised that international comparisons and cooperation can help avoid the Capacity building risk of duplication or sub-critical investments, and help to sharpen the competitive stance of their smart specialisation The core of Cohesion Policy is to enable all regions to priorities. Through interregional cooperation, regions can become competitive and grasp the opportunities within improve their international competitiveness in global value the internal and global markets. However, such capacity chains together.

1) Council Conclusions of 10 June 2016 on ‘A more R&I friendly, smart and simple Cohesion Policy’, European Parliament Resolution of 13 September 2016 on Cohesion Policy and Research and Innovation Strategies for Smart Specialisation (2015/2278(INI)); Committee of the Regions opinion of 22 March 2017 on ‘Smart Specialisation Strategies: impact for regions and inter-regional cooperation’. 2) 'Entrepreneurial discovery process' with local innovation actors to establish consensus on the strengths and priorities.

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Smart specialisation as a coordination match their investments in new European value chains4. The mechanism European Commission supports these partnerships to develop common roadmaps for co-investment in specific priority areas, Smart specialisation in outward-looking innovation strategies such as efficient and sustainable manufacturing, traceability that seek differentiation and alignment with other regions can and big data in agri-food value chains or heating and cooling. also be a powerful mechanism for improving the quality of More than 85 regions are already engaged and are building innovation investments. They exploit complementarities between capacities for cluster development, pilots and demonstrators specialisations in new European value chains. For example, in and for leveraging business investments that benefit the the emerging bioeconomy different regions specialise in different regions and Europe as a whole.  sources of biomass production, in processing bio-plastics or in applying these in different consumer products.

The competitiveness of regions and regional clusters for new growth and jobs in such emerging markets and industries hinges on the capacity to coordinate each other's resources to offer integrated solutions, while smart specialisation provides a means to identify cooperation partners across all of Europe.

Diversity as competitive advantage

Diversity is Europe’s competitive advantage in working together to develop new solutions for common challenges, to provide jobs, clean energy, mobility or healthcare to citizens, and turn these challenges into opportunities for economic development by providing innovative solutions.

Developing and testing solutions for these challenges often Jyrki Katainen, Vice-President of the European Commission leading the project team 'Jobs, Growth, Investment and Competitiveness', go beyond the capacity of individual regions or countries. Smart Regions Conference, Helsinki Smart specialisation is the European way to respond to societal challenges by valorising the unique capacities of all EU regions which can become Living Labs for the future.

Thematic smart specialisation drives FIND OUT MORE interregional cooperation Smart Regions Conference: In early June, Helsinki hosted the second edition of the conference on smart specialisation Thus, smart specialisation also requires ‘smart cooperation’. in European regions, assessing what has been achieved and Thematic smart specialisation platforms3 support interregional paving the way for future development. partnerships to help innovation actors in the partner regions http://europa.eu/!mf36Hu

3) See S3 Platform: http://s3platform.jrc.ec.europa.eu/s3-thematic-platforms 4) Thematic Smart Specialisation Platforms for Energy, Industrial Modernisation and Agri-Food have been working since June 2016 to gather regions and their innovation actors in partnerships to align their investments in priority areas. At the end of May 2017, 18 such partnerships had been formally launched, engaging about 85 regions.

27 RIS3 – raison d’être, first results and its future

The smart specialisation approach aims to encourage regions to identify some strategic domains for developing R&D and innovation activities. In so doing, regions can address a dual problem – that of differentiation and specialisation of their innovation capacities – which is generally poorly dealt with by standard innovation policies. Prof. Dominique Foray Chair in Economics and Management of Innovation, IS3 provides tools and pro- While it is too early to evaluate the Ecole Polytechnique Fédérale cesses to handle regional het- impact of RIS3 on innovation, productiv- de Lausanne (CH) Rerogeneities and helps regions ity and growth, some results are already to recognise and take advantage of observable if not measurable. their differences and translate them shares a few priorities with several other into future competitive advantages. One fundamental outcome is that the regions – and this creates a rationale for very process of designing a strategy has building networks and partnerships. This is the raison d’être for smart special- generated beneficial effects resulting isation: concentrating attention and from regions’ commitment to the pro- There is no doubt that the impact of this resources on a certain number of strategic cess of entrepreneurial discovery. For approach has been huge in Europe and domains to activate virtuous processes of instance, today, regions themselves elsewhere. Given such impact and the sig- particularisation and specialisation with know better than before because self- nificant mobilisation of both the public regard to innovations. assessment and discovery of potentials and private sectors at regional level, it and capacities were required. would be simply absurd to discontinue the RIS3 approach. The policy-learning pro- It is both useful and productive for cess has been significant and regions now The raison d’être for smart regions to put more effort into discover- know much better how to proceed to specialisation: concentrating ing and choosing, in detail and for the design and implement an S3 than they did attention and resources on future, priority areas for R&D and innov- five years ago when the concept was ation. The knowledge and experience introduced. They have learned a lot and a certain number of strategic acquired from discovering and choosing continue to do so. We can therefore be domains to activate virtuous the right directions for R&D and innov- sure that regional agencies and stake- processes of particularisation and ation can be valuable in carrying out holders will be much more efficient and specialisation with regard the subsequent stages of product/pro- effective in delivering a RIS3 if they are to innovations cess/market design, production and asked to do it again for the next period.  distribution.

Designing smart specialisation strate- A new policy mindset is slowly being gies does not mean that “all the rest” instilled into policymakers – comprising should be neglected. The most generic decentralisation, public-private inter- and horizontal policies naturally remain actions, self-discovery and prioritisation. essential and smart specialisation becomes an additional option that Another important result is that this regions are well advised to activate if approach provides a new rationale for they are capable of setting up an intel- knowledge sharing and cooperation ligent process of identifying strategic between regions because smart speciali- domains and developing them. sation helps to show that any one region

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Building an investment policy for a more cohesive Europe

EU Cohesion Policy supports Cohesion Policy must hundreds of thousands of modernise and simplify the way projects in all European regions. it operates, setting a medium- It is the EU’s largest source of to long-term framework but investment, encouraging with enough flexibility to important real economy projects readapt to new events, and contributing to structural supporting projects with clear change in EU Member States. EU value added, and providing the right incentives for Emma Marcegaglia ohesion Policy is part of the Treat- President of BusinessEurope performance ies and reflects the EU’s solidarity. CBut more than that, the policy is very important for supporting a more Finally, Cohesion Policy must better cohesive Europe in all its forms: economic, Investment (ESI) funds, and are strongly understand that the EU and its mem- social and territorial. anchored to the positive side effects it bers operate and compete on a global brings. These are visible in terms of cap- scale. For instance, ESI funds must However, it is now time to move past acity building, the definition of long-term remain open to companies of all sizes. a mindset of redistribution and fast priorities, regional specialisation strategies, We must not forget that mid-caps and spending to think about this policy within partnership, and others. large enterprises have strong positive a logic of investment, competitiveness spillover effects on the local economy, and structural improvement. This will be But these benefits must be amplified. including for SME growth. Therefore, necessary to boost Cohesion Policy’s suc- To do so, Cohesion Policy must mod- the EU must avoid creating a phenom- cesses while, at the same time, achieving ernise and simplify the way it oper- enon of investment leakage in Europe greater convergence between Member ates, setting a medium- to long-term but rather use its tools to ensure it is States, which is a necessary condition for framework but with enough flexibility an attractive destination for invest- the proper functioning of the EU, and the to readapt to new events, supporting ment, continuing to build a strong and euro area in particular. projects with clear EU value added, cohesive Europe.  and providing the right incentives for Cohesion Policy must be an integral part performance. of a European investment strategy, with a strong territorial approach, aiming to In particular, we must continue moving empower each region with the neces- towards a policy that ‘focuses on results’ sary tools to build up their competi- and less on purely formal compliance. We tiveness. It must lead to economic and must render Structural Funds more structural transformation, securing a accessible and understandable with BusinessEurope is the leading advocate resilient base in each region, based on a simplified, integrated and propor- for growth and competitiveness at its own strengths. tional control system. We must con- European level, standing up for tinue building administrative and companies across the continent and It is important to acknowledge that Cohe- technical capacity at regional level campaigning on the issues that most sion Policy achievements go way beyond and a real partnership in all stages influence their performance: the financial envelope made available of the programmes and at all levels through the European Structural and of administration. https://www.businesseurope.eu/

29 Cohesion Policy and the public-sector paradox

The Cohesion Policy of tomorrow will have a lot in common with that of today. Why? Because the goals of the current programming period – to secure smart, sustainable and inclusive growth – will become more rather than less important in the future.

urthermore, many of the key food security, dignified care of the elderly themes of the 2014-2020 pro- – which contribute so much to smart, F gramme – such as the empha- sustainable and inclusive growth. sis on results, enhancing the quality of institutions, and the simplification The calibre of institutions, of regulations – will also assume Kevin Morgan Professor of Governance more importance in the future. especially public institutions, and Development and is arguably the single most Dean of Engagement at Cardiff Achieving tangible results is more important ingredient in University (UK) important when the EU is under pres- the recipe for innovation sure to prove its value to European citizens. The new emphasis on results and development – on the outcomes and impact of regional policy – is long overdue If it is to deliver more tangible results in A Cohesion Policy that addresses these because, in the past, there was too the future, Cohesion Policy needs to work concerns can rightly claim to be serious much emphasis on a region’s capacity with a smart public sector rather than about securing smart, sustainable and to absorb the funds, as a means to an a shrunken one. To this end, public inclusive growth.  end rather than the end itself. The administrations and their agencies must emphasis on results highlights the jettison the ‘command-and-control’ style significance of the second theme – of leadership they have displayed in the institutional calibre. past and adapt the style of the most successful agencies – agencies like SPRI The calibre of institutions, especially in the Basque Country, Aster in Emilia- public institutions, is arguably the sin- Romagna and JIC in South Moravia. These gle most important ingredient in the agencies are adept at nurturing regional recipe for innovation and development. innovation ecosystems in which public, However, the Cohesion Policy of tomorrow private and third-sector stakeholders will need to resolve the public-sector learn to collaborate for mutually beneficial paradox. ends.

This paradox is due to two radically dif- Finally, regulatory simplification must ferent trends. On the one hand, the remain a top priority. At present, the public sector has been under pressure public sector is getting mixed signals: from austerity for nearly a decade, the rhetoric of Cohesion Policy invites it reducing its capacity for action. On the to be more agile, creative and experi- other hand, the public sector looms large mental, while the audit culture is intoler- in the societal challenge sectors – sectors ant of failure and stymies creativity in like energy, health, education, transport, the name of compliance.

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Cohesion Policy: achievements and aspirations, a Canadian perspective

The European Union and its flagship Cohesion Policy have Aspirations long been of interest to policy communities in Canada. This commentary offers a Canadian perspective on the policy’s Changing demography: EU Cohesion Policy confronts complex migration chal- notable achievements and future aspirations. lenges as refugees seek new homelands goals, focusing simultaneously on the and skilled labour relocates among Mem- sustainability of regional economies and ber States. At the same time, the Euro- social investments to stimulate growth. pean population overall is ageing. The EU integrated development brings policy needs innovative settlement pro- together, rather than trades-off, economic, gramming for deep diversity and creative social and ecological priorities welfare reforms across the life course.

Digital transformation: Cohesion Policy The European Union and confronts complex regional and social its flagship Cohesion Policy challenges as technologies transform have long been of interest work, production and consumption in Neil Bradford, PhD, Chair, platform economies. A digital divide Department of Political Science to policy communities threatens territorial and social cohesion Huron University College, Western University (CA) in Canada when investment concentrates in urban hubs. The policy requires ‘inclusive innov- s a highly decentralised federation Multi-level governance: Cohesion Policy ation’ to spread digital opportunity with a vast geography and pro- builds on the principles of subsidiarity through e-service enhancements, skills Anounced regional identities, Canada and partnership. Multi-level policy coord- upgrading and social innovations. confronts many of the same “unity through ination flows from consultation and com- diversity” challenges as the EU. Since the munication, and through governance Administrative Innovation: Cohesion 1960s, Canadian governments have imple- contracts for ‘flexible conditionality’ that Policy confronts complex governance mented territorial strategies for regional clarify EU funding expectations while challenges as national governments and economic convergence and national social enabling regional programme adaptation. regional authorities find programme cohesion, and have looked to the EU for EU multi-level governance combines access bureaucratic, and oversight innovative ideas and best practices. ‘place-based policy’ with hierarchical controlling. Policy administration needs oversight and support. to be simplified, and programme implementation based on ‘shared manage- Achievements Learning and Adaptation: Cohesion Pol- ment’. Evaluation protocols should icy creatively applies data to inform and incentivise compliance with Cohesion Integrative economic development: EU improve regional programming. A robust Policy goals, and use peer-review to Cohesion Policy has been a leader in two three-tier framework for differentiating strengthen administrative capacity regional dimensions. First, it has moved regional assets and potential guides EU for both EU policy design and regional from major infrastructure investments investments. Programme evaluation programme delivery.  in lagging regions to endogenous growth increasingly relies on targets, indicators, through productivity and entrepreneur- benchmarking and monitoring. The EU ship in all regions, and most recently to mix of quantitative and qualitative ‘smart specialisation’ through regional measures clarifies public investment innovation systems. Second, the policy effectiveness and fine-tunes regional incorporates social and environmental implementation.

31 The EU’s future finances

The High-level group on own resources (HLGOR) was established in February 2014 to reflect on finding more transparent, simple, fair and democratically accountable ways to finance the EU. The Group was chaired by former Italian Prime Minister and EU Commissioner Mario Monti and comprises members designated by the European Parliament, the Council and the European Commission. The final report and recommendations were presented in the European Parliament and in the Council in January 2017.

In your view, what are the major These are the issues challenges for EU finances after 2020? on which the EU is EU policies, and notably expected and being The major challenges for EU finances pressured to act on cohesion, benefit to all countries, are already here today and are similar today, and yet they even the 'net contributors' to the challenges the EU itself faces: are often not part of how can we regain trust from our citi- its traditional core zens? How can we provide more legit- business, in particular internal and exter- from Member States – favours the status imacy to European spending? The EU nal security which remain within the quo and are a hindrance to focusing on has been hit by multiple crises in recent realm of national sovereignty. Although new needs. Thus, in the High-level group years, most of them highlighting new recent annual budgets have used the on own resources’ report, we make nine priorities: reinforce the competitiveness flexibility tools, their implementation recommendations conducive to change. of the European economy, and in par- remains to be seen. ticular address youth unemployment; Among these, I think the most likely to secure our external borders and improve What major changes are you proposing have a strong impact are the focus on our cooperation on internal security and compared to the current system? expenditure with the highest European defence; fulfil our commitments to fight added value, the abolition of rebates climate change and environmental deg- Reforming the revenue system is part of in favour of certain countries, and the radation; and finally, ensure a smooth this overall shift, because the current introduction of one or several new own transition from EU-28 to EU-27 when financing system – based on an over- resources linked to EU flagship policies. the UK leaves the EU. whelming share of national contributions For example, own resources based on

32 PANORAMA / SUMMER 2017 / No. 61

FUTURE FINANCING OF THE EU Final report and recommendations of the High Level Group on Own Resources December 2016

Future Structural Investment Funds will play a crucial part in our reform efforts

because they have often been in the crossfire Executive Summary & Recommendations available in of criticism for financing too many projects 23 languages: http://ec.europa.eu/ with questionable European added value budget/mff/hlgor/index_en.cfm a common reformed VAT or a common There are other obstacles linked to the crossfire of criticism for financing corporate tax can be designed to the fact that in most cases leaders too many projects with questionable contribute to a better functioning of who go through one negotiation are European added value. This is particu- the Single Market, to simplify the life rarely present at a second, which dis- larly true in the more developed regions of our companies, and to support the perses the memory and experience, in the richer Member States. Moreover, fight against tax fraud or evasion; or leads to misunderstanding about their financing through national envel- environmental own resources can how EU finances work. A common fal- opes makes it a major feature of the contribute to decarbonisation efforts lacious argument used to reject real focus on net balances. and green growth. In my view, this own resources, for example, is to con- latter recommendation represents how sider that only national contributions Future reform will have the difficult task EU revenue can bring extra added allow for Member State control over of claiming back the legitimacy of EU value: the EU cannot levy taxes, but its EU finances, and that more autono- action in many regions, by focusing on revenue can contribute to achieving EU mous own resources would lead to EU-wide public goods rather than local policies and objectives. uncontrolled budget increases. This is ones. It will also need to show the bene- not the case. Real own resources fits they bring beyond the immediate What are the major obstacles to would change the composition of rev- beneficiaries. Cross-border benefits, making those changes possible? enue (and lower national contribu- spillover or leverage effects are currently tions). The volume of the budget is ignored or hidden in budgetary negoti- The most obvious obstacle lies in the decided by the multiannual financial ations, yet they provide a measure of decision-making procedure applicable framework. And since the EU budget European added value. This needs to to the financing system, which imbeds must be in balance and cannot resort change to make the budget more trans- an asymmetry of power between the to debt, revenue is automatically cal- parent, accountable and fair. EU policies, European Parliament and the Council. culated once the expenditure is known notably cohesion, benefit all countries, The European Parliament is only con- – not the other way around. even the ‘net contributors’.  sulted on own resources, while its con- sent is required for the multiannual What place do you see for the financial framework, and it co-decides European Structural and on the annual budget. In addition, deci- Investment Funds? sions within the Council must be taken at unanimity and after ratification in Future Structural and Investment Funds all national parliaments. This is the will play a crucial part in our reform heaviest procedure that exists. efforts because they have often been in

33 DATA POINT: 3 – OPEN DATA PLATFORM

DO YOU HAVE AN ISSUE YOU WOULD LIKE DISCUSSED IN FUTURE PANORAMA DATA POINT FEATURES? IS THERE A DATASET YOU WOULD LIKE US TO PUT ON THE ESIF OPEN DATA PLATFORM? IF SO, PLEASE E-MAIL: [email protected]

Communicating on ESIF performance: the growing importance of common indicators

The need to monitor and report on performance under each specific fund with indicators adapted to the fund- specific objectives, the target sectors and the intervention must be a shared responsibility and an essential rationale applied. part of all meaningful debates on EU policy. Two main concerns have influenced the choice of indicator he 2014-2020 programmes have seen improvements concepts and the definition of common indicators: in the use of indicators to measure the outputs and Tresults of the different ESI Funds – common indicators >> Are the indicators a meaningful measure of the interventions are a powerful tool to communicate aggregate policy and objectives of the specific fund? achievements across Member States. These developments >> Are the indicators readily available without creating have accompanied other performance-related improve- excessive cost and burden for managers and beneficiaries? ments, such as the more robust setting of objectives, clearer target setting, and the new performance framework linked For the period 2014-2020, the answers to those questions to the performance reserve. One of the effects of a greater were developed in partnership with stakeholders and focus on performance is that indicators must no longer be experts from the Member States during several years of the concern of a few technicians. reflection.

The current system of indicators has been developed over the The most visible product of the current indicator system years based on experience and learning specific to each fund. on the ESIF open data platform is the presentation of Thus, the common indicators are common to the programmes ‘achievement’ tiles for common indicators by fund and by

TWO EXAMPLES FROM THE ESF AND ERDF BY END-2015

ESF: Participant employment status 2 500 000 Implemented: 2 707 055 participants 2 000 000 Of which Unemployment supported: 1 574 509 participants 1 500 000

Employed: 435 940 participants 1 000 000 Inactive supported: 696 606 participants 500 000

0 2015 EmployedEmployed InactiveInactive supported supported UnemployedUnemployed supported supported

Overview of program implemented values (2015)

Cyprus Hungary Austria Croatia Luxembourg Slovenia Denmark Estonia Slovak Republic Sweden United Kingdom Bulgaria Czech Republic Lithuania Finland Latvia Portugal Netherlands Greece Poland Ireland Belgium Germany Italy France Spain

34 PANORAMA / SUMMER 2017 / No. 61

theme. Other improvements include an expanded list of Perhaps the right questions are: “Do the common indicators common indicators and better methodologies for collecting capture key achievements in the different thematic areas?” and and reporting ERDF and ESF indicators. “Are there areas where we do not capture key achievements?”

Are there too many indicators? Where to next?

This question has been raised at the highest level of the EU In the debate on the post-2020 EU multiannual financial institutions, not least because it would be simpler to commu- framework and the future of shared management through nicate at the EU level with a few, easy-to-aggregate indicators. the ESI Funds, the issue of performance and measuring The European Court of Auditors also recently questioned the achievement is a hot topic. The main questions are: relevance and use of so many programme-specific indicators and the difficulty of their aggregation to the EU level. >> Can we improve the measurement of the funds’ performance while reducing the burden for stakeholders? On the other hand, different stakeholders have different >> Can the different indicator concepts be rationalised across the needs and propose a broad range of indicators, many of which funds? Do different stakeholders need different indicators? are relevant for them and already available in their region or >> Would there be benefits in the definition of common EU Member State. indicators across funds to measure and communicate achievements? Should we focus on reducing the number of specific national MANY COMMON INDICATORS BY FUND TRANSLATE >> indicators? Or is the quality of the indicators and their policy TO A FEW INDICATORS BY ‘THEME’: THE ERDF CASE relevance more important?

RTDI: ICT: Firms: It may seem like a technical debate but it is a key one for the future 6 indicators 1 indicators 9 indicators of the policy. Watch this space or, better still, engage in it! 

Energy Climate: Environment: Transport: 5 indicators 7 indicators 6 indicators FIND OUT MORE ESIF Open Data platform: https://cohesiondata.ec.europa.eu/ Select the "achievement" sections on the "Theme", "Country" Social Infra: URBAN: Interreg: or "Fund" pages: 2 indicators 4 indicators 6 indicators Open Data FAQ on “Achievements”: http://ec.europa.eu/regional_policy/en/faq/about_open_data/ Another explanation for the seemingly large number of EU ECA special report No 2/2017: The Commission’s nego- common indicators is the very wide thematic scope of actions tiation of 2014-2020 Partnership Agreements and pro- and sectors financed by the ESI Funds. For instance, there grammes in Cohesion: http://www.eca.europa.eu/en/Pages/ are 46 common indicators for the ERDF. DocItem.aspx?did=41008

ERDF: Firms receiving support Planned: 1 098 048 enterprises Decided: 137 463 Enterprises Implemented: 36 379 Enterprises Austria Malta Cyprus Romania Netherlands Latvia Denmark Croatia Slovenia Estonia Bulgaria Belgium Finland Slovak Republic Czech Republic Sweden Portugal Interreg Greece Overview of programme targets Germany Poland Hungary Ireland Italy Spain France United Kingdom

ImplementationImplementation Progress Progress

0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

PlannedPlanned DecidedDecided ImplementedImplemented

35 Why a reinforced Cohesion Policy should be the EU’s top priority

Europe has never needed Cohesion Policy more in today’s troubled to preserve the central role of Cohesion and uncertain times. European unity is under threat, questioning Policy in supporting regional develop- the future of the EU as a whole. ment, the Commission should establish clear boundaries between these two instruments and provide guidance on n its most recent reflection paper how best to combine them. on harnessing globalisation, the Rather than opposing grants IEuropean Commission rightly recog- and financial instruments, the And thirdly, we believe that Europe nised the need to “target regional and Commission should define where needs an ambitious follow-up strategy local investment needs […] to ensure financial instruments add most to the Europe 2020 Strategy. Indeed, that all regions can benefit from the Cohesion Policy will only meet its object- internal market and better prepare value within a future Cohesion ives if it is based on a comprehensive, themselves for the challenges of Policy that should continue ambitious and long-term European globalisation”. to rely primarily on grants strategy for sustainable growth and development across the EU. This is why the Conference of Peripheral Maritime Regions (CPMR) believes that The expectations of the CPMR remain a reinforced and reinvigorated Cohesion high for the post-2020 period, but the Policy, covering all regions, should be the future of Europe is at stake!  top priority on the Commission’s agenda in years to come. For this to become a reality, here are some of our key messages for the future.

First, we believe that the territorial dimension of the next Cohesion Policy should be widened further. The European project needs Cohesion Policy to achieve Eleni Marianou EU objectives across Member States and Secretary General of the CPMR regions. It is vital for EU objectives to be realised everywhere in Europe, including Secondly, regarding financial instruments, in specific territories such as island our vision for the post-2020 period is a The Conference of Peripheral Maritime regions, outermost regions and Northern constructive one: rather than opposing Regions brings together some Sparsely Populated Areas (NSPA). grants and financial instruments, the 160 regions from 25 states from the Commission should define where financial EU and beyond. Representing about The CPMR starts with the premise of instruments add most value within 200 million people, the CPMR cam- territorial, economic and social cohesion a future Cohesion Policy that should paigns in favour of a more balanced as Community objectives at the service continue to rely primarily on grants. development of the European territory. of EU solidarity. Such principles allow It operates both as a think-tank and the inhabitants of the EU’s different ter- Similarly, the European Fund for Stra- lobby group for regions, focusing mainly ritories to benefit in an equitable tegic Investments may add value to on social, economic and territorial cohe- way from the basic freedoms set out in Europe’s overall investment policy, but sion, maritime policies and accessibility the Treaty and implemented through the it remains highly imbalanced, both Community’s policies. geographically and sectorally. In order www.cpmr.org

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Cohesion Policy: how can the EU sustain solidarity and investment at the same time?

effectiveness in driving EU cohesion is, once again, under review. But this context To enhance its credibility also opens a window of opportunity for and purpose, Cohesion Policy’s a new deal to be struck, underpinned by economic, social and territorial a more connected operating framework, objectives should be repositioned which draws CP ‘communities’ together, at the core of the EU project instead of encouraging competition for funds and concessions. integrate a differentiated approach, taking There is a need for a full assessment of due account of different delivery capaci- Robin Huguenot-Noël how CP can champion EU solidarity while ties across the EU (e.g. in funds absorption EPC Policy Analyst on economic ensuring that funding is delivered in a sus- and levels of development). governance and the EU budget, tainable way. The policy has achieved and Alison Hunter much in previous decades contributing to Some of these proposals may face EPC Senior Adviser on regional policy, regional innovation and the EU’s ‘smart, sustainable and inclusive resistance. However, in the current envir- industrial growth growth’ agenda. However, this is often onment, it is in the interest of all CP traded off against excessive bureaucracy, partners to seriously consider possible criticisms of ‘circular funding’, lack of fit reforms to make the future policy fit for between spend and need, and funding purpose post 2020. The worst of all out- The rise of populism and absorption challenges. comes would be a cut in funding without Euroscepticism, particularly grasping the opportunity for reform and among disadvantaged groups, The EU project requires fresh momen- prioritisation.  has increased pressure on the tum, underpinned by bold reform of CP. EU to strengthen its investment To enhance its credibility and purpose, the policy’s economic, social and ter- and solidarity instruments, ritorial objectives should be repos- especially Cohesion Policy. itioned at the core of the EU project. CP’s relevance and value should be owever, this strengthening needs better integrated and communicated to be seen in the context of across the entire EU policy and funding Huncertainty concerning the framework. As the ‘champion’ of EU future direction of the EU with regard to solidarity, CP can only harness and The European Policy Centre is an internal and external security, global extend its presence at the local level independent, not-for-profit think-tank developments, migration and persistent when it is granted the necessary status dedicated to fostering European Economic and Monetary Union (EMU) and reach to achieve this. integration through analysis and debate, imbalances. supporting and challenging European Clarity of purpose is critical. The policy’s decision-makers to make informed With Brexit expected to lead to substan- credibility as a driver of investment needs decisions based on evidence and analysis, tial EU budget cuts, Cohesion Policy (CP) to be significantly enhanced, which means and providing a platform for engaging is likely to have a smaller budget in the streamlining the rules and delivery systems partners, stakeholders and citizens in EU next multi-annual financial framework and aligning CP with economic governance policy-making and the future of Europe: with additional, new priorities. This poses to increase scale efforts and leverage new challenges for CP, at a time when its investment. But the new CP should also http://www.epc.eu/about.php

37 Better financing for cities will help deliver stronger results for citizens

Cohesion Policy has long been one a stronger and more united EU where citi- of the strongest expressions of soli- zens feel connected to the European idea darity between Member States and see how the EU contributes to a better quality of life in our cities. and regions in the EU, and has delivered remarkable improve- Cities are well placed to work in part- ments in public services and infra- nership with EU decision-makers to structure across Europe. design policy based on citizens’ needs. As the level of government closest to ohesion Policy continues to bring the citizens, we can connect EU invest- clear and visible results to citizens ment with local needs, ensuring better Daniël Termont Cin areas ranging from better returns on the funding. EUROCITIES’ Mayor of Ghent and access to schools, health and social care, recent policy paper argues for a con- President of EUROCITIES cleaner air and water to improved and tinuation of a strong Cohesion Policy more sustainable mobility. post 2020 based on three principles: Cohesion Policy can be In my own city of Ghent, Structural Funds 1) Cohesion Policy must continue to cover a building block towards have made it possible to invest in both all regions. It is a policy for European high-tech and ‘low-tech’ solutions. We solidarity. a stronger and more united EU have invested EUR 5 million from the where citizens feel connected to European Regional Development Fund 2) a stronger application of the partner- the European idea and see how (ERDF) to create a new business district. A ship principle must help make cities the EU contributes to a better state-of-the art building will reuse natural more involved and allow for increased quality of life in our cities resources and stimulate research, access to financing. Most global chal- innovation and entrepreneurship. At the lenges are concentrated in cities, and it same time, ERDF also provides valuable is in cities that solutions are most often seed money to experiment with new forms put into effect. of decision-making and social innovation, bringing clear, visible results for our citizens 3) s implification of existing funding and improving their quality of life. sources, especially the better integration of the European Social Fund and the However, against the backdrop of both European Regional Development Fund, Brexit and the longer-term implications will help cities to be more efficient in EUROCITIES is the network of major Euro- of the financial crises, the next round of delivering crucial services. pean cities. Its members are the elected debates on Cohesion Policy will take local and municipal governments of major place in a markedly different context. It We have many reasons to be proud of European cities. Through six thematic leaves open several questions regarding Europe: enduring peace, greater wealth forums, a wide range of working groups, exactly what the capacity of the next EU and solidarity. Nevertheless, the EU has projects, activities and events, it offers budget will be. been shaken to its core by Brexit and ris- members a platform for sharing knowl- ing Euroscepticism. A strong Cohesion edge and exchanging ideas on issues that This challenge gives us a chance to rethink Policy that effectively supports cities and affect the day-to-day lives of Europeans: how we do things in Europe, and to better regions in their efforts to tackle our chal- involve citizens in decision-making. Cohe- lenges can be one of the EU’s strongest http://www.eurocities.eu/eurocities/ sion Policy can be a building block towards tools to overcome these crises. home

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EU Cohesion Funds and the fight against poverty

The lack of progress towards The next round of EU Cohesion Funds reaching the Europe 2020 should consider a higher earmarking target of reducing poverty of ESF funds for social inclusion. The commitment to invest the necessary by at least 20 million people is time and resources to ensure all social due not only to the financial inclusion measures are really meeting crisis, but also to the failure to their indicators will be crucial. In add- pursue a more balanced social ition, the Fund for European Aid to the and economic agenda. Most Deprived programme, focusing on social inclusion, food aid and material assistance, demonstrates how EU Leo Williams his failure is leading to a social Director of the European funds can stimulate effective actions and democratic crisis. The recently Anti-Poverty Network that reach people and communities Tproposed European Pillar of Social experiencing poverty and exclusion. Rights could be the beginning of a real and reporting is necessary to reveal response – but it needs serious commit- what is included as social inclusion in This practice makes the case that the ment to follow up and implement at the the measures funded, and to assess future EU financial framework, as well national level. to what extent these measures are as supporting food aid, should include helping people escape poverty. a large-scale social inclusion progamme. Such actions are needed to give meaning The ESF platform, supported by the to the Pillar of Social Rights.  Commission, and in particular the The- The next round of EU matic Network on Inclusion, provides Cohesion Funds should consider opportunities for exchange on ESF-sup- a higher earmarking of ESF ported social inclusion actions, under funds for social inclusion three themes:

1) innovation in social service pro vision with a particular focus on deinstitutionalisation; Without the poverty target and significant efforts to follow up through 2) actions to reach groups and commu- the Europe 2020 strategy and the nities experiencing high levels of pov- Semester process, the situation would erty and discrimination, with a focus be even worse. One of the most mean- on homeless people and Roma; and ingful efforts to reduce the number of people living in poverty has been the 3) actions to support active inclusion The European Anti-Poverty Network is ring fencing of 20 % of the European approaches with a focus on integrated the largest European network of Social Fund for social inclusion. An ini- pathways and fostering participation national, regional and local networks, tial assessment by the Commission in society and the labour market. This involving anti-poverty NGOs and shows formal compliance to this com- work should contribute to the identifi- grass-root groups as well as European mitment in all Member States. How- cation of social inclusion indicators that organisations active in the fight against ever, if the Commission is truly serious could help monitor the ring fencing of poverty and social exclusion: about this, then further monitoring funds for social inclusion. http://www.eapn.eu/

39 Creating an ‘alliance of the willing’

Karl-Heinz Lambertz, President of the Association of European Border Regions and incoming President of the European Committee of the Regions(CoR), stresses the importance of cross-border cooperation in boosting economic development and cohesion.

What is the added value of the Without support from Cohesion Policy, especially as regards economic growth European Cohesion Policy for border border regions would never develop their and employment, always occurring in regions in the EU? potential due to differing local and addition to national measures and con- regional priorities. Far too often oppor- tributing significantly to the implemen- The European Union is divided by many tunities are missed to use a ‘critical tation of current and future European internal borders where differences in mass’ of investment which only makes strategies. competencies, structures, social and fis- sense when implemented in cross-bor- cal laws often cause difficulties. Border der projects – for example, hospitals, This goes far beyond the exchange of and cross-border regions are also fur- cross-border services, waste-manage- experience and coordination, and leads ther burdened by geographical obs- ment facilities, economic cooperation, to practical cooperation with proven tacles, such as boundaries running along etc. The challenge is to create a new results of success in infrastructure rivers and mountain ranges. Borders are function of borders, turning them into development, economic cooperation, often regarded as impenetrable barriers meeting rooms. This shows the real innovation and research, labour market, which require too much effort and time added value Cohesion Policy can play in tourism, culture and much more. to overcome. Nevertheless, successful Europe’s border regions. cross-border cooperation shows that Cohesion Policy is not only an instru- clashes can also be a source of eco- Can you summarise what have been ment for economic development and nomic growth and mutual understand- the major achievements and what is reducing regional disparity, but demon- ing. Achieving sustainable and effective still to be done? strates the added value of the EU across European integration therefore needs the Union and in all regions and cities. close collaboration through cross-border Cohesion Policy helps border regions Furthermore, it is a unique example for cooperation. If there is no cohesion develop their potential by overcoming European solidarity and unity, leading to along European borders then it will be differences in priorities either side of the a stronger and more resilient European difficult to achieve the Treaty objective borders. Cross-border cooperation posi- Union – our common aim as stated in of territorial cohesion for the entire EU. tively impacts Europe’s border regions, the Rome Declaration.

40 PANORAMA / SUMMER 2017 / No. 61

Borders are often regarded as impenetrable barriers which require too much effort and time to overcome. Nevertheless, successful cross-border cooperation shows that clashes can also be a source of economic growth and mutual understanding

What are the major priorities for As the next President of the European the context of the debate on the future the border regions regarding the Committee of the Regions (CoR), of Europe and in view of the UK leaving future of EU finances? from 12 July, what are your views the Union. regarding the future of the policy and Border regions – as is the case for all the ESI funds beyond 2020? The sole purpose for everyone working regions in the EU – are interested in with and for the EU is to improve and having an EU budget that makes At our May plenary, the CoR has – as benefit the lives of its citizens. I am a real difference for all citizens. the first EU body – adopted its formal deeply convinced that we can only Instead of increasing the number of position on the future of Cohesion address growing populism and the lack EU-funded programmes centralised of trust felt by many at European level, border regions citizens in the EU by are more in favour of EU funds being demonstrating that designed to support cross-border the EU does benefit development strategies and are The sole purpose for everyone their lives and their based on regional needs. This is what communities. This is we call the ‘place-based’ approach working with and for the EU exactly what Cohe- which is the essential element of the is to improve and benefit sion Policy intends to Cohesion Policy. do and why we will the lives of its citizens need it more than It is therefore important that the ever in the future. financial support envisaged for Euro- pean Territorial Cooperation after We will try to create 2020 is increased and significantly Policy based on intensive discussions an ‘alliance of the willing’ to fight for a higher than the current allocation of with European cities and regions, reformed Cohesion Policy which should 3 % of the European Structural and the European Commission, the Euro- be drastically simplified and based on a Investment Fund. pean Parliament, as well as with stronger partnership with the cities and many Member States and countless regions. This also includes putting more We must also make sure that our pro- stakeholders. emphasis on assessing the territorial cedures for managing funds are impacts of EU policies to ensure that they streamlined and simplified, as intended I see my role as the future CoR Presi- all support the Treaty’s objective of eco- by the ‘Budget for Results’ initiative led dent is about promoting joint ideas on nomic, social and territorial cohesion.  by the European Commission. the future of Cohesion Policy, also in

41 AER for a result-orientated Cohesion Policy post 2020

The Assembly of European Regions (AER) believes in a new vision for the future of Cohesion Policy: a delivery mechanism that is simple and achieves results throughout Europe.

burdensome delivery mechanism. How- The renewed delivery mechanisms should ever, ESI Funds have brought added provide for: the prevention of gold plat- value. The only way forward is a results- ing; one single rulebook for different ESI orientated Cohesion Policy, clear EU Funds; and differentiated audit regimes objectives and a simple delivery mecha- based on proportionality in error rates nism for its beneficiaries. and scale of programme. 

The major economic, social and territorial challenges from regions should form the backbone of a vision for Cohesion Policy post 2020. By providing grants for innova- Michiel Rijsberman tions in energy transition, climate change AER Rapporteur and social inclusion in our regions, it is Cohesion Policy post 2020 becoming more than just a mechanism to Regional Minister of the Province converge income inequalities among Euro- of Flevoland (NL) pean regions. Improving the quality of life of citizens around Europe is the key behind urope's regions work with Cohesion every euro spent in grants. A vision on the Policy every day, making propos- Europe of tomorrow with common Euro- Eals from the ground for a better pean objectives should give direction and future. AER set up a Cohesion Policy Task create a sense of ownership among the Force which adopted a declaration on beneficiaries. 1 June 2016 in Sankt Pölten, Austria. It identified four areas: a long-term vision; The Assembly of European Regions is simplification and audit; combining the the largest independent network of European Structural and Investment The major economic, regions in wider Europe, gathering Funds with other funds; and multi-level regions from 35 countries. It has governance and gold plating. social and territorial challenges from regions should form the always taken an active role in Cohe- sion policy debates. Last September, Cohesion Policy needs to be reshaped to backbone of a vision for Cohesion the initiative ‘Strong renewed regional address future EU challenges. The public Policy post 2020 policy post 2020 for all regions’ was value attached to ESI Funds will grow signed by more than 300 regional following Brexit, EU budget cuts and the presidents. rise of new EU challenges. Against Cohe- sion Policy is its low absorption rate and http://aer.eu/

42 PANORAMA / SUMMER 2017 / No. 61

Moderating the 7th Cohesion Policy Conference 2017

As the moderator of the EU’s of the European economy. Usually when 7th Cohesion Policy conference I moderate panel debates on modernising this year in Brussels, I am looking European economies, we invariably end up discussing the growing impact of digit- forward to interacting with the isation on industry and society. Issues dynamic mix of keynote speakers, such as driverless trucks, autonomous panel participants, attendees, production lines and advanced robotic EU folk and others over the technologies are frequently tackled during course of the two-day event. these debates.

How EU countries embrace that digital his year’s conference takes place transformation is a big question. It is Karen Coleman in the shadow of Brexit which, of particularly relevant for those regions broadcaster/journalist/moderator Tcourse, will have a significant and cities which may not be as advanced impact on future EU budgets, including as others. If they fail to facilitate the Cohesion Policy funds. At the moment, kind of digital advancement needed to facilitating the retraining of truck drivers it is impossible to properly calculate the remain economically and socially viable, or integrating robotic technologies in financial cost of Britain’s exit on future there is a danger they will be left behind ways that enhance rather than replace EU budgets. Estimates put it at anything and we will have a kind of two-speed people’s roles in society. And the EU from a EUR 5 billion to EUR 17 billion Europe with some countries much more Commission must ensure that it does not annual deficit depending on a range of technologically advanced than others. stymie their attempts to modernise by factors, including whether we end up imposing a plethora of unnecessary with a soft or a hard Brexit. rules and regulations and red tape. As an Irish journalist, I am Because if regions and cities fail to As an Irish journalist, I am acutely acutely aware of the economic grasp this digital transformation then aware of the economic and political and political implications of we may not see the kind of cohesion the implications of Britain’s withdrawal Britain’s withdrawal from the EU aspires to develop.  from the EU, with a shared border between the Irish Republic and North- EU, with a shared border ern Ireland posing huge challenges between the Irish Republic and post-Brexit. And that is not to mention Northern Ireland posing huge the damage it may have on the signifi- challenges post-Brexit cant trade between Ireland and the UK. But the Irish issue aside, managing a potential financial deficit will be We now live in an era which requires us a mammoth issue for the EU and its to regularly upskill and retrain in order to budget beyond 2020, following Britain’s stay relevant in our jobs and our societies. exit from the bloc. So Brexit is bound to If we disconnect from the digital grid we feature in the forthcoming Cohesion may get left behind in an ever-more Policy conference. technological world.

One of the first debates I will moderate So regions and cities need to be clever www.karencoleman.com on the first day will focus on how Cohesion about how they manage the transition Policy can contribute to the modernisation from old to new economies, whether it is @KarenColemanIRL

43 Get ready for European Week of Regions and Cities 2017

In 2017, the European Week of Regions and Cities Building resilient regions and cities will take place under the title ‘Regions and Cities working for a better future’. The event will include This strand will focus on the economic and social effects of around 100 workshops, debates and networking globalisation and the policy response at EU, national, regional and local level. It will enable participants to present and dis- activities which will be attended by some cuss innovative ways to foster change, in particular on how 5000 participants. In addition to the Brussels- to make Europe’s cities smarter and more resilient. based workshops, a programme of local events will be organised across Europe between The workshops will concentrate, for example, on how digital opportunities can help to develop innovative planning, September and December 2017. industrial transformation, smart specialisation and better governance to overcome current challenges and foster jobs The 15th European Week of Regions and Cities (EWRC) will and investment at all EU levels. take place just ahead of the publication of the Cohesion Report and the presentation of the EU multiannual financial framework 2020-2026. This provides an opportunity for the Regions and cities as change agents EWRC to be one of the platforms for gathering and presenting the views of regions and cities on both the budget and This strand will consider possible adaptations to EU regional the subsequent legislative proposals, namely with regard and urban policy for the next five to ten years, and encourage to Cohesion Policy and rural development. more general reflections on the EU from the perspective of regions and cities. It will provide a platform to illustrate the effective contributions EU regions and cities are making to the European project and will allow them to provide input to the main political debate in parallel with the ‘Reflecting on Europe’ process launched by the European Committee of the Regions. 15TH EUROPEAN WEEK OF REGIONS AND CITIES 2017 The workshops will focus on how local and regional ecosystems reduce disparities through, for example, the circular economy, the 9-12 OCTOBER 2017, BRUSSELS third industrial revolution, open data, integrated territorial develop- REGISTRATION OPENS ON 10 JULY ment, urban laboratories, research and innovation actions, while, at the same time, looking ahead to future prospects. FIND OUT MORE http://ec.europa.eu/regional_policy/ regions-and-cities/2017/index.cfm Sharing knowledge to deliver results

Under this strand, regional and national authorities implementing programmes supported by the European Structural and Investments funds will have the opportunity to exchange

44 PANORAMA / SUMMER 2017 / No. 61

experiences and good practices on programme management Local events during the period 2014-2020. Key issues include considering ways to reduce the administrative burden on beneficiaries Each regional partnership is requested to organise one local through simplification, as well as different means of event under the title 'Europe in my region/city' in the format strengthening institutions and building administrative of a citizens' dialogue, to take place between September and capacity among administrations at all levels. December 2017, and including a member of the European Committee of the Regions (CoR). Discussions with practitioners will be integrated with input from academia as well as from participants from non-EU countries The objective of the citizens' dialogues is to listen and report interested in the process of European integration, both from back directly from cities and regions and from the discussions an institutional point of view and in terms of policies that taking place. These dialogues are an integral part of the CoR promote European cohesion. initiative 'Reflecting on Europe' which, in spring 2018, will feed into an opinion on 'Reflecting on Europe: the voice of The workshops will analyse regional innovation systems, regional authorities to rebuild trust in the European Union', territorial impact assessment, transforming learning into thereby enabling real inputs from regions and cities to the action, resource-efficient cities, cost-benefit analysis, inter- political process. The aim is to attract a wide range of par- regional collaboration and how innovation hubs can deliver ticipants, including the general public, policymakers and a more sustainable performance. experts, and to raise awareness of the impact of EU policies on their region and city. 

RegioStars

RegioStars Awards aim to identify good practices in regional development and to highlight original and innovative projects which could be attractive and inspiring to other regions.

The Award Categories for 2017 are:

1. Smart specialisation for SME innovation 2. Energy Union: Climate action 3. Women empowerment and active participation Reﬂecting 4. Education and training 5. CityStars: cities in digital transition on Europe

Members of the RegioStars Awards Jury, chaired by Lambert Join the debate! Van Nistelrooij MEP, are currently evaluating 110 applications which have been submitted this year.

The RegioStars 2017 Awards Ceremony takes place in Brus- sels on Tuesday 10 October. This year will also see the cele- bration of the 10th anniversary of the Awards and, for the second year running, a public vote will also be presented.

FIND OUT MORE FIND OUT MORE http://ec.europa.eu/regional_policy/en/regio-stars-awards/ http://cor.europa.eu/en/events/Pages/reflecting-eu.aspx

45 " Interreg Volunteer Youth ":. promoting cooperation and solidarity across borders

The European Solidarity Corps (ESC) is a new European Union initiative which creates opportunities for young people to volunteer or work in projects in their own country or abroad that benefit communities and people around Europe. EU regional policy has joined the initiative with EUR 1 million to give cross-border, transnational or interregional programmes and related projects the opportunity to host volunteers (EU citizens between 18 and 30 years old) for two to six months. The aim is to support, promote and report the achievements of Interreg programmes and projects while increasing awareness of the benefits of collaboration across EU internal borders. Here are the testimonies of the first two young volunteers participating in the Interreg Volunteer Youth (IVY) initiative, managed by the Association of European Border Regions.

trasbourg, 14 September 2016: I enter the European area. When crossing a border is part of your daily busi- Parliament and take a seat in the Hemicycle – eager ness, be it for work or for jogging, you start to realise how Sto listen to Jean-Claude Juncker delivering his State significant it is that these borders are not barriers. of the Union speech. As far as I can tell, the EU is all about solidarity, democ- “Solidarity is the glue that keeps our Union together. […] racy and being able to travel freely; about countries shar- When the Portuguese hills were burning, Italian planes ing a common vision; about people cooperating, defending doused the flames. […] In the same spirit, the Commission human rights, and breaching inequalities; about citizens is proposing today to set up a European Solidarity Corps. living in peace. This European Solidarity Corps offers the Young people across the EU will be able to volunteer their very possibility to promote and foster all these values, help where it is needed most […].” strengthening the glue between Europeans.

Having grown up and studied for many years in cross- I started my volunteering experience in the framework of border regions, I got to appreciate the added value of Interreg Volunteer Youth, on Monday 20 March. As an Inter- territorial cohesion and integration within a transnational reg reporter within the Joint Secretariat of the Danube

46 PANORAMA / SUMMER 2017 / No. 61

Corps can offer Interreg Volunteer Youth participants the unique opportunity to contribute in a meaningful way "When crossing a border is part of your to building a foundation of trust – a sense of community daily business, be it for work or jogging, – that is mutually beneficial and enriching. Involving you start to realise how significant it is a variety of partners at the local, regional, national and that these borders are not barriers" European level, IVY’s unique ‘bottom-up’ approach made me think of solidarity in terms of an extended community that fosters cooperation across borders and comprises Transnational Programme (DTP), I seek to support, pro- multiple complementary levels of belonging. mote and report on the importance of cooperation across European borders and the benefits of European territorial Putting theory into practice, what experiences have I actually integration. The DTP aims at promoting economic, social had so far? My learning curve as an IVY reporter started with and territorial cohesion, addressing common challenges a ‘big bang’: the EU Open Day in the Berlaymont premises in where transnational cooperation is expected to deliver Brussels. More than 30 Directorates-General of the European tangible results. Commission presented their activities to about 12 000 citizens! Manon and I mastered interviews, informed interested visitors, By working very closely with the 54 projects approved and even had the opportunity to air our opinions on the ESC under the first call for proposals, I have a better/deeper/ in a live radio broadcast. Back in Poland again, I am looking further insight into the way transnational cooperation forward to reporting ‘on the ground’ on many interesting prepares the ground for long-lasting and comprehensive European Territorial Cooperation projects this summer. projects, in a sustainable perspective. Cooperation among countries can indeed help solve joint problems, by enriching perspectives on best practices and lessons learnt in "What motivated me to volunteer for the other countries. Bringing Europeans closer together is Interreg South Baltic programme is a way to facilitate the sharing of ideas and assets, thus a strong belief in the added value that encouraging strategic work towards common goals. cooperation brings to citizens in Europe" Being the first ESC/IVY volunteer ever deployed on the ground opened me up to new highly valuable experiences. It allowed me to live experiences of a lifetime – participat- Ending 6 May on a positive note, coming from Germany and ing in the EU Open Door day in Brussels, being filmed by volunteering for this special cross-border cooperation pro- the European Commission for a video, giving interviews to gramme in the South Baltic Sea area has widened my horizons, the radio and newspapers, meeting the Commissioner for broadened my sense of solidarity and strengthened my belief Budget & Human Resources and the President of the Euro- in finding joint solutions to today’s common challenges. I hope pean Committee of the Regions, talking about this whole that my learning curve as an IVY reporter will continue to grow adventure during a seminar for Hungarian journalists… as promisingly as it had begun and that there will be many What a challenging yet epic journey I have just begun! more young IVYs with an open optimistic outlook joining the ESC in the future. Manon, France (pictured left) ...... Yasmin, Germany (pictured right)  Coming from Germany, why should I take an interest in Poland, Denmark, Sweden and Lithuania? What motivated me to volunteer for the Interreg South Baltic programme – a special cross-border cooperation programme engaging several regions in the South Baltic Sea area – is a strong FIND OUT MORE belief in the added value that cooperation brings to citizens https://europa.eu/youth/solidarity_en in Europe. I further believe that the European Solidarity https://www.interregyouth.com/

47 Sara Andrew Liam

.Students report.. Lithos This cross-border project between Malta and Sicily focuses on the protection and valorisation of the historical heritage. on Interreg Speaking to Daphne Marie Fenech, the lead architect behind the Lithos project at the Inquisitor’s Palace in Vittoriosa, she explained that in essence the project focuses on the synergy projects in between the historical profession of two nations (Malta and Sicily) and the ability to put it to use to restore building Malta and structures that otherwise would be lost.

One of the techniques in the forefront of the project is The Interreg Annual Meeting 2017 took place stereotomy, revolving around the geometrical knowledge from 26-28 April in Malta. It was organised by of drawing and cutting the blocks of solid material. Fenech the European Commission, Directorate-General stated that the fact that the project’s results were tangible for Regional and Urban Policy with the support aided the process of receiving funds from the European of the Maltese Presidency of the Council of regional fund. Consequently, a museum and training centre were erected with material, equipment and expertise not the European Union. present in Malta but imported from Ragusa, Sicily.

During the event, participants had the opportunity to visit one Speaking on the benefits of working with another EU Mem- of three projects: ber State in a cross-border project, Fenech said the communication between parties is exceptional and a platform >> Lithos cross-border project on the protection and such as the EU helps in creating a pool of countries that valorisation of historical heritage; seeks partners in similar projects.

>> CypFire transnational project on protecting the Apart from the rejuvenation of old structures and infrastruc- Mediterranean regions’ natural heritage against fire; ture, the project also aimed at the resurgence of masonry skills in Malta. Prior to this and similar initiatives local archi- >> Malta south sewage treatment infrastructure. tects feared the death knell for masonry skills and other historical professions targeting architecture. Students from the journalism school at the Malta College of Arts Science and Technology - MCAST were also invited to The important role of MCAST was also highlighted during this attend. These project visits were an opportunity for these informative meeting. The institution’s work in conjunction with young people to witness the concrete benefits of cooperation. Heritage Malta’s various research operations gave a new lease Their impressions of the project visits are given below. of life to a number of prospective masons.

Liam

48 PANORAMA / SUMMER 2017 / No. 61

Miguela Mauro

CypFire Ta’ Barkat sewage treatment plant

On 27 April I had the chance to attend the CypFire project The annual meeting included a visit to the sewage treatment event held by the EU Commission. Prior to visiting some sites infrastructure known as Ta' Barkat, at Xgħajra, Malta, Stefan a talk was held at the local council of Mgarr where we were Cachia and David Sacco, engineers within Water Services Cor- greeted by the mayor Paul Vella who introduced three more poration, discussed the project’s aim and objectives, agenda speakers – Roberto Danti, Gianni Della Rocca and Eman Vella. and the treatment’s key infrastructure.

Each spoke of their involvement in this project. Danti started Cachia opened up the discourse with CF116, one of the most by stating the aim of this CypFire project: to suppress forest iconic waste projects in Malta. This operational programme fires with a natural barrier, cypress trees. He talked about how was originally submitted to the Commission in December 2007 the project came to be with the various experiments done in and formally submitted in July 2010. According to Cachia, different countries and the general spreading of knowledge. CF116 re-establishes the bathing water quality along with the Bathing Water Directive and eliminates extra raw waste water Della Rocca spoke about the technical aspect of the project which is discharged into the sea. This project also aims to get by going into scientific detail about the properties of the rid of all bad odour emissions in raw waste-water discharge. particular species of trees called Mediterranean cypresses. Cachia said the project cost around EUR 80.1 million.

Lastly, Vella spoke of the input the Mgarr local council had in previ- Sacco discussed the project’s aim and objective with regards ous experiments to determine the best species of cypress to use to the reduction in pressure on natural water resources to in this natural barrier. Mgarr was the best contender for planting diversify the available water supply and increase the propor- trees as it has the best maintained rural area in Malta and plenty tion of reclaimed water. He also stated that the water services of space. The trees were planted in two sites – one near Gnejna facilitates 90 boreholes, 10 pumping stations and 3 sea-water and one in Ballut – in 2006 and 2012, respectively. The monitoring reverse-osmosis plants in Malta and 44 boreholes and of these trees is still ongoing even though CypFire has ended. 2 pumping stations in Gozo.

Sara and Andrew The Water Services Corporation aims to continue to invest in better quality of life which leads to an investment in the future of the Maltese people. The delegation then visited the plant.

Miguela and Mauro 

FIND OUT MORE http://webcasting.streamdis.eu/Mediasite/Catalog/Full/5eea 1d0698264ad88e78a7cbf397459221

49 NEWS [IN BRIEF]

THE EUROPEAN POLAND: A COMMISSION PEER 2 PEER MARKS INVESTMENT PROJECT INITIATIVE HELPS LOW- ITS 100TH EVENT AND PORTAL INCOME REGIONS IS READY FOR MORE! CATCH UP

The EIPP is a web portal enabling EU- As part of the European Commission's based project promoters – public or pri- tailored assistance to low-growth and vate – to reach potential investors low-income EU regions with the help of worldwide. Designed in response to invest- Cohesion Policy funds, a one-year pilot ors’ desire to see more potential EU initiative is showing promising results in TAIEX-REGIO PEER 2 PEER reached its investment opportunities in one central Poland. Commission and World Bank 100th event milestone as the Hungarian information platform, it offers advanced experts, together with Polish national delegation visited peers in Lithuania to search and filtering criteria, making it easy and local authorities, have been working exchange good practice on implementing for investors to find projects according to over the past year to identify solutions financial instruments for energy effi- their preferences. to boost economic development in the ciency. Launched only two years ago by low-income regions of Podkarpackie and DG Regional and Urban Policy, in close co- The portal will boost the visibility of EU- Świętokrzyskie in Eastern Poland. They operation with DG NEAR, TAIEX-REGIO based projects to a large network of inter- have defined strategic priorities and PEER 2 PEER is a widely appreciated and national investors, by presenting them in concrete, quickly implementable actions simple-to-use tool designed to help Mem- a structured and harmonised format. for academia, the business environment ber State administrations meet more eas- and the workforce. ily and share their experience on various topics related to managing the European On the basis of these first promising Structural and Investment Funds. pilot actions, a roll-out plan is being prepared to replicate these projects in To date, the Commission has received other suitable Polish regions. 171 requests for exchanges, of which 100 have taken place, involving 1500 participants from 25 EU Member States. The wide variety of topics cover ed in these exchanges ranges from management and control issues to financial instruments, urban development, smart specialisation, public procurement, etc. In their feedback, Member States say the instrument is helpful, easy to use and non-bureaucratic.

YOU CAN SUBMIT YOUR FIND OUT MORE FIND OUT MORE INVESTMENT PROJECT AT http://europa.eu/!Cm83tg http://funding.balticsea-region.eu/ ec.europa.eu/eipp

50 PANORAMA / SUMMER 2017 / No. 61

AGENDA

21 SEPTEMBER 2017 21-23 NOVEMBER 2017 European Cooperation Day Munich (DE) 2nd Annual Forum of the EU Strategy for the Alpine Region 9-12 OCTOBER 2017 Brussels (BE) European week of Regions and Cities 27-28 NOVEMBER 2017 Rotterdam (NL) Cities Forum 10 OCTOBER 2017 Brussels (BE) Regiostars Awards Ceremony

18-19 OCTOBER 2017 Budapest (HU) th 6 Annual Forum of the EU Strategy More information on these events can be found in the Agenda for the Danube Region section of the Inforegio website: http://ec.europa.eu/regional_policy/en/newsroom/events/

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PHOTOGRAPHS (PAGES):

Cover : © European Commission Page 21: logo and photo © European Parliament Page 36: logo and photo © Conference of Peripheral Page 4 : logo and photo © Estonian government Page 22: logo and photo © City of Valka (LV) and Maritime Regions Page 8: logo and photo © German Federal Ministry City of Valga (EE) Page 37: logo and photos © European Policy Centre for Economic Affairs and Energy Page 23: logo and photo © Ajutament de Santa Page 38: logo and photo © Eurocities Page 9: logo and photo © Cyprus, Ministry of Finance Coloma de Gramenet Page 39: logo and photo © European Anti-Poverty Page 10: logo and photo © European Commission Page 24 : logo and photo © London School Network Page 12: logo and photo © Region of Wallonia of Economics and Political Science Page 40: photo © European Commission; logo © AEBR Page 13: logo and photo © Region of Crete Pages 26 & 27: © European Commission Page 42: logo and photo © Assembly of European Regions Page 14: logo and photo © Swedish Association Page 28: logo and photo © Ecole polytechnique Page 43: photo © Karen Coleman of Local Authorities and Regions Fédérale de Lausanne (CH) Page 46: photo © European Commission Page 15: logo and photo © Union of Town and Page 29 : logo and photo © BusinessEurope Pages 48-49: photos © European Commission Municipalities of the Czech Republic Page 30 : logo and photo © Cardif University Page 18: logo and photo © Organisation for Economic Page 31: logo and photo © Huron University College, Co-operation and Development Western University (CA) Page 20: logo and photo © Association of Polish Cities Page 32: © European Commission

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