City of Malmö (Malmö Stad)

EU local and regional authorities contribute to the mid-term review of Europe 2020

Assessment of the flagship initiative An industrial policy for the globalisation era

Almost three years after the launch of Europe 2020, the Committee of the Regions has launched a broad assessment of the Strategy in preparation for its mid-term review, expected in 2014.

As part of this assessment, the replies to this questionnaire on the state of play of the flagship initiative An industrial policy for the globalisation era will be discussed at a conference to be held on 10 April 2013 in Brussels.

CDR2000-2013_00_00_TRA_TCD EN - 2 - This conference will be the third in a series of CoR events and monitoring initiatives on the Europe 2020 flagship initiatives, preparing the mid-term review in 2014. More news on this conference can be found on the CoR website1. By participating in this survey, you will:

 ensure that your views are taken into account in the debate held during the conference;  contribute to the CoR's consultative activity over the coming months, to include an opinion drafted by Claude Gewerc, President of Picardy Regional Council (PES/FR), scheduled for adoption at the CoR plenary session on 10-11 April 2013;  contribute to the fourth CoR Monitoring Report on Europe 2020, to be published in October 2013;  contribute to the mid-term review of Europe 2020 in 2014.

IF YOU WISH TO PARTICIPATE IN THIS SURVEY, PLEASE COMPLETE THIS QUESTIONNAIRE IN ANY EU LANGUAGE, USING THE SPACES PROVIDED, AND RETURN IT IN TEXT FORMAT TO:

[email protected] by 1 March 2013

The questionnaire will be available in all languages in mid January

For more information on this survey and for details on how to join the Europe 2020 Monitoring Platform, go to: http://portal.cor.europa.eu/europe2020/

1 http://cor.europa.eu/en/activities/europe2020/Pages/industrial-policy.aspx .

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Contributor information2

Name of sender: Ilmar Reepalu City of Malmö Contact details: SE-205 80 Malmö (address, telephone, email) +46 40 34 10 00 [email protected] City of Malmö On behalf of: City Office, Municipal Commissioner's Department (name of local or regional authority) City Council SE 205 80 Malmö City/Town/Municipality Region County/Province Type of organisation Association of local and/or regional authorities Other (please specify) Country: Sweden

Member of the EUROPE 2020 Monitoring Yes No Platform:

Current policy challenges and responses at regional and local level

1) What are the main challenges faced by industry in your region/city?

Please answer with respect to competitiveness (market trends; positioning in the market; competitors) and employment (finding the necessary workforce with the right skills; ability to create new jobs). The city of Malmö used to have a well-developed manufacturing sector, but in the 1970s and 80s conditions for these industries started to deteriorate and there are now only a few traditional manufacturing industries in the city. Malmö currently has high levels of unemployment, and many of its unemployed people have a very low level of education. The city's future rests in establishing new forms of manufacturing and industry, for example in the green sector. It would take very little funding and relatively little time to train many of Malmö's unemployed people up for slightly more skilled jobs, so that the city can continue to develop sustainably, economically, environmentally and socially.

2 Privacy Statement: The follow-up to your contribution requires that your personal data (name, contact details, etc.) be processed in a file. All the answers to the questions are voluntary. Your replies will be kept for a period of 5 years after the receipt of your questionnaire. Should you require any further information or wish to exercise your rights under Regulation (EC) No 45/2001 (e.g. to access, rectify or delete your data), please contact the data controller at [email protected]. If necessary, you may also contact the CoR Data Protection Officer ([email protected]). You have the right of recourse to the European Data Protection Supervisor at any time (www.edps.europa.eu). Please note that the questionnaire with your contribution and your contact details will be published online. Your questionnaire may be transmitted to CoR rapporteurs and other EU institutions for information. Should you not agree to this, please inform us accordingly.

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2) Do these challenges differ from those faced in 2010 (when the Europe 2020 strategy was launched)? If so, in what respect?

Please make a distinction between structural problems and problems resulting from the impact of the economic and financial crisis. The major changes in Malmö happened a long time ago. The latest crisis exacerbated the structural problems that the city has been experiencing for a very long time. Malmö has a young population, which is a big competitive advantage over many other cities and regions in the vicinity, but youth unemployment is on the rise, and is a barrier to proper development.

3) How are your regional/local policies addressing these challenges?

Please make clear whether you are (i) working on the basis of a local/regional industrial strategy; (ii) providing direct support to firms and networks/clusters; (iii) encouraging stronger relationships between firms, universities, public and private research institutions; (iv) improving the business environment, including through administrative simplification; (v) undertaking a proactive industrial policy, focusing on certain activities or sectors; or a mix of these actions.

Please provide examples (or at least web references3). How we are working on the basis of a local/regional industrial strategy We have an enterprise policy strategy, which was adopted by the city council in 2009. In brief, it states that we will:  develop awareness of and attitudes towards enterprise;  promote dialogue and meeting places;  increase the competitiveness of businesses and Malmö's attractiveness in a number of respects – via active partnership between the city and enterprise;  increase the city's commitment and contribution regarding businesses issues for the future in terms of skills, innovation and entrepreneurship;  develop and market Malmö as a place of establishment;  affirm Malmö's role in business development in Skåne and the Öresund region.

How we are providing direct support to firms and networks/clusters In the form of cooperation in governing bodies and steering groups, and economic support to develop and stimulate innovation and new start-ups. Examples include MINC, Medeon, Media Evolution, Connect, and Drivhuset

How we are encouraging stronger relationships between firms, universities, public and private research institutions The activities referred to in the previous answer are largely based on this approach, and cooperation between different types of stakeholder is a priority. One example is Företagsakademin 3.0, which is currently being un in line with this model..

How we are improving the business environment, including through administrative

3 You may also submit your good practice to the CoR online database on Europe 2020 policy cases: http://portal.cor.europa.eu/europe2020/MonitoringFlagships/Pages/Welcome.aspxhttp://portal.cor.europa.eu/europe2020/Monitor ingFlagships/Pages/Welcome.aspx

CDR2000-2013_00_00_TRA_TCD - 5 - simplification We work actively with a joint business contact point with representatives of five administrations, with the aim of making it easier for businesses to ask questions concerning the municipality Another example is Företagsamma Malmö, a programme to get all administrations working in line with the enterprise policy strategy.

How we are undertaking a proactive industrial policy, focusing on certain activities or sectors; or a mix of these actions There is a clear focus on proactive efforts within the following areas:

Visitor industry Cleantech Trade Head offices Life Science Logistics

New media

BOX 1 – An Industrial Policy for the Globalisation Era

The Europe 2020 flagship initiative An integrated industrial policy for the globalisation era, adopted by the European Commission on 28 October 2010, sets out a strategy that aims to boost growth and jobs by maintaining and supporting a strong, diversified and competitive industrial base in Europe, offering well-paid jobs while becoming more resource-efficient4. The flagship initiative highlights ten key actions for European industrial competitiveness:

1. "competitiveness proofing" i.e. analysis of the impact on competitiveness of all policy proposals; 2. "fitness checks" of existing legislation aimed at reducing the cumulative effects of legislation in order to cut costs for businesses in Europe; 3. making it easier for SMEs to access credit and facilitating their internationalisation; 4. a strategy to strengthen European standardisation; 5. more efficient European transport, energy and communication infrastructure and services to serve European industry; 6. a new strategy on raw materials creating the right framework conditions for sustainable supply and management of domestic primary raw materials; 7. addressing sector-specific innovation performance with specific actions, in such areas as advanced manufacturing technologies, construction, bio-fuels and road and rail transport, particularly with a view to improving resource efficiency; 8. actions to improve framework conditions and support innovation in energy-intensive industries;

4 More information at: http://ec.europa.eu/enterprise/policies/industrial-competitiveness/industrial-policy/europe- 2020/index_en.htm

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9. a space industrial policy creating a solid industrial base and covering the whole supply chain; 10. reporting on Europe’s and Member States' competitiveness, industrial policies and performance on an annual basis.

These actions are implemented through more than 70 measures, whose state of play can be found on DG Enterprise and Industry's website5.

You can find more information on An industrial policy for the globalisation era, seen from the point of view of local and regional authorities, in the Committee of the Regions' publication Delivering on the Europe 2020 Strategy. Handbook for Local and Regional Authorities6. General information on Europe 2020 can be found on the strategy's official website7. How is the Europe 2020 flagship initiative An industrial Policy for the Globalisation Era relevant to your city or region?

4) With respect to industrial policy, how would you evaluate the support your city/region has received from EU policies so far? Was it sufficient in view of the challenges you are facing in this area? As concerns EU-financed investments, in which area has more added value been created (e.g. infrastructure, skills, innovation, etc.)?

Please answer with reference to the various existing strands of EU policy (Europe 2020 flagship initiative "An industrial policy in the globalisation era", Structural Funds, 7th Framework Programme, Competitiveness and Innovation Programme, etc.).

Please comment both on the policy tools used and on funding. The city of Malmö has received ESF and ERDF funding of in the order of over SEK 200 million during the current programming period. Most of the projects have focused on labour market and social integration, and on creating jobs by means of various innovative projects. Malmö won the REGIOstars prize for its SÖM project, which used ERDF funding to act as an umbrella for actions in an area of Malmö covering four districts. The projects were innovative and delivered good results in terms of employment. Some of them focused specifically on business-related actions. The current successor to SÖM in Malmö is the Områdesprogrammet area-based programme, which also makes active use of the structural funds.

Malmö, together with Lund, Helsingborg and the region of Skåne, also runs an EIB/ELENA-funded project to develop public transport in those cities, focusing on tram and rail transport. This project, called SPIS, also initially focuses on the aforementioned area.

5 http://ec.europa.eu/enterprise/policies/industrial-competitiveness/industrial-policy/europe-2020/index_en.htm 6 The Handbook can be downloaded from: http://portal.cor.europa.eu/europe2020/SiteCollectionDocuments/Europe%202020%20Handbook%20for%20Local%20and %20Regional%20Authorities.pdf 7 http://ec.europa.eu/europe2020/europe-2020-in-a-nutshell/flagship-initiatives/index_en.htm

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In recent years, Malmö has also been involved in a Civitas project, Concerto, other smart city projects and energy/environment R&D projects, many of which aimed to develop public solutions in which businesses could participate and/or provide innovative solutions.

The combination of public, private and EU funds in innovative projects has proven positive. The great majority of the public municipal budget is tied up in municipal responsibilities and priorities, but at the same time the municipality may be the key partner in issues surrounding business start-ups, business investment and the labour market. In this connection, EU funds are an important and necessary element in setting up innovative new projects that, though sometimes small, are nonetheless vital.

5) The Europe 2020 flagship initiative An integrated industrial policy for the globalisation era8 (see Box 1 above), as reviewed by the Commission Communication A stronger European industry for growth and economic recovery9 of 10 October 2012, sets out a "renewed industrial policy" based on the four pillars presented in Box 2 below.

Which of these pillars are more relevant to your specific local/regional situation? Investments in innovation – and particularly in sustainable development – are highly relevant to Malmö and the region. Many large residential areas are in need of renovation, and it is important for those renovations and improvements to be done sustainably. Sustainable construction could become a factor for the city's prosperity, but in order for that to be possible it is also extremely important to release both public and private funds for investment.

8 http://ec.europa.eu/enterprise/policies/industrial-competitiveness/industrial-policy/index_en.htm 9 http://ec.europa.eu/enterprise/policies/industrial-competitiveness/index_en.htm

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BOX 2 - An industrial policy for the globalisation era: 2012 update

The flagship initiative on industrial policy, as reviewed by the Communication of 10 October 2012, places more emphasis on short-term, growth-enhancing measures resulting from the economic crisis and its impact on EU industry. The flagship initiative is based on an extensive consultation of stakeholders carried out in the first half of 2012, which highlighted the impact of the crisis in terms of job losses, the decline of industrial production and very low business confidence. Those short-term problems go hand in hand with EU industry's structural competitiveness problems. The European Commission's response is based on these four "pillars of the reinforced industrial policy", to be addressed through partnership involving the EU, its Member States and industry:

 Investments in innovation, with a focus on six priority areas with great potential (advanced manufacturing technologies for clean production; key enabling technologies; bio-based products; sustainable industrial and construction policy and raw materials; clean vehicles and vessels; smart grids).  Better market conditions, both in the internal market, with special reference to goods, entrepreneurship and the protection of intellectual property rights, and in international markets.  Access to finance and capitals, through better mobilising and targeting of public resources, including from the EIB, and by unlocking private funds.

 Human capital and skills, to promote job creation and better anticipation of, and investments in, the skills needed to promote industry's competitiveness10.

Are your country's policies relevant to your city or region?

6) To help meet these objectives, your country has set its own targets, which you can find at http://ec.europa.eu/europe2020/pdf/targets_en.pdf. Are your country's targets appropriate to your local (regional) situation?

Please explain, bearing in mind that "An industrial policy for the globalisation era" can potentially contribute to at least the following Europe 2020 targets: - in a quite direct manner: 75% of the 20-64 year-olds to be employed; 3% of the EU's GDP to be invested in research and innovation (public and private investment); - - in an indirect manner: 20% less greenhouse gas emissions than in 1990; 20% of energy from renewables; 20% increase in energy efficiency. Current situation in Malmö in terms of the proposed Europe 2020 targets

1. EU 2020: 75% of 20-64 year olds to be employed Malmö: 64% of 20-64 year olds in Malmö were gainfully employed in 2008 (62% of women and 65% of men). Malmö is currently 11 percentage points below the target. The national target is good, and sets high expectations in terms of what the city should be working towards.

10 This pillar is addressed by another CoR survey (deadline: 21 January 2013) available on the following website: http://portal.cor.europa.eu/europe2020/news/Pages/Survey-of-the-EU-local-and-regional-authorities-on-the-Europe-2020- Agenda-for-new-skills-and-jobs-Flagship-Initiative.aspx

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2. EU 2020: 3% of the EU's GDP to be invested in R&D. Malmö: No figures available. As we do not allocate a specific portion of our municipal budget to R&D, we cannot measure this target.

3. EU 2020: to achieve the "20/20/20" climate and energy goals

Malmö: To date, Malmö has reduced CO2 emissions by 7% since 1990 (24% per capita). Malmö is currently below the target, but has clear plans to reach it. The goal is to be completely CO 2 neutral by 2030.

4a. EU 2020: to reduce rates of early school leaving to below 10% Malmö: 5% of secondary school students registered in Malmö dropped out of school or interrupted their studies in the 2008-9 academic year.

4b. EU 2020: at least 40% of 30-34 year olds to have completed third-level education Malmö: 54% of Malmö's 30-34 year olds had completed post-secondary education in 2008 (58% of women and 51% of men). Malmö is well above the target

5. EU 2020: at least 20 million fewer people in or at risk of poverty (a 25% reduction). Poverty is defined as 60% of median disposable income, which is SEK 124 320 in Sweden. Malmö: 43% of 20-64 year olds in Malmö had an income below SEK 124 320 in 2007. This needs to fall by 11 percentage points in order for the city to reach the Europe 2020 target of a 25% reduction.

7) Do you think that the industrial competitiveness policies set in your country's current (2012) National Reform Programme11 meet the needs of your city or region?

If not, how would you change your National Reform Programme next year?

The national reform programme does not meet either Skåne's or Malmö's need for reform. The programme describes a situation where unemployment is falling and the recovery from the crisis is underway; this description no longer matches the reality of Sweden's development, and has not applied to Malmö and Skåne for a long time. Unemployment is increasing, and in Malmö it is increasing fast. The reforms highlighted in the programme comprise four reductions on income taxes for people in work, along with a raft of other tax cuts. These measures have not resulted in a fall in unemployment, but simply in larger income gaps in the country.

The reform programme should focus on creating jobs in both public and private sectors. There is a need for reform to make it possible to combine public and private risk capital so that new businesses can and dare to take out loans both to start up new activities and to expand.

8) Which measures in the field of industrial competitiveness policy could be more helpful in the short term? In order for businesses to be able to recruit staff with the right skills, training is the primary need in Malmö and the region. This is important in both the long and the short term. There is currently a real need for more adult education to enable unemployed people in the city to take the job opportunities that already exist or may arise in the region.

11 Your country's current National Reform Programme can be found here: http://ec.europa.eu/europe2020/europe-2020- in-your-country/index_en.htm

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Managing and funding issues

9) Is industrial competitiveness policy in your region/city adequately funded? Apart from EU funding (which you described in your reply to question 4) to what extent did you have recourse to other sources (e.g., PPPs, financial engineering)? Do you think you will have enough funds to run your policy programmes in this field in the future? ......

10) What kind of cooperation/coordination takes place between your region/city and the national and EU levels in the fields of industrial competitiveness policy?

Do you see any room for even stronger cooperation between different tiers of government in this field? If so, please explain. There is a need for more consultation in many fields and in many contexts. Sweden's system is set up around consultation through the social partners and larger representative organisations such as the Swedish Association of Local Authorities and Regions (SKL). There is currently no systematic consultation process that takes account of the view of individual municipalities, independently of consensus efforts in these organisations.

11) Are the forthcoming Partnership Agreements/Contracts (under the new 2014-2020 cohesion policy) an opportunity for better coordination between different tiers of government in the field of industrial policy? If so, why? And what could be the role of the different stakeholders (other levels of government and other stakeholders)? The partnership agreements (not contracts in Sweden) are currently under development. The process has only just started, and will not be finished before the summer, with a national proposal, and even the autumn (2013) when it comes to implementation.

As part of the current process, the government decided to consult what it calls the "national forum", comprising regional representatives from the eight existing structural fund programme regions. We have not been consulted directly at local level on this issue.

As Malmö is the third-largest city in Sweden, we may have greater opportunities to conclude agreements on our own initiative with regions and relevant government departments.

In our view, however, these agreements could benefit all stakeholders, not least with regard to structural funds priorities, implementation and monitoring of results. It is at least theoretically possible that a broader partnership could facilitate joint measures between public and private partnerships. Enterprise and private operators have previously claimed that it is difficult and involves a lot of bureaucracy for them to participate in structural funds projects; hopefully the new model can make it easier.

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12) Please add any further comments you might wish to make on the matters dealt with in this questionnaire......

SHARE YOUR GOOD PRACTICE

With a view to the CoR conference to be held on 10 April 2013 and the exhibition of good practices in the fields covered by An industrial policy for the globalisation era, you might wish to submit an example of good practice. To do so, please complete the form available on our website: http://portal.cor.europa.eu/europe2020/MonitoringFlagships/Pages/Welcome.aspx

JOIN THE EUROPE 2020 MONITORING PLATFORM

To help convey the voice of EU cities and regions in the implementation of Europe 2020 at EU level and in your country, join us. For details on how, see: http://portal.cor.europa.eu/europe2020/Knowledge/Pages/BecomeaMember.aspx

THANK YOU FOR YOUR COOPERATION!

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