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Member of the European Commission Dr. Johannes Hahn Regional Policy

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Member of the European Commission Dr. Johannes Hahn Regional Policy Member of the European Commission Dr. Johannes Hahn Regional Policy Local Government Denmark’s response to the Fifth Report 28 January 2011 on Economic, Social and Territorial Cohesion Local Government Denmark Local Government Denmark (LGDK) welcomes the Fifth Report on Jnr 06.08.02 P70 Economic, Social and Territorial Cohesion. The report presents many useful Yours ref 000225003 initiatives that marks a promising beginning for the coming period. Ref ASF [email protected] Seen from a perspective of the Danish municipalities, the Fifth Cohesion Dir +45 3370 3477 Report contains many important aspects. LGDK recommends that a future Cohesion Policy should be more result-oriented, that bureaucracy should be Weidekampsgade 10 reduced and that the daily management simplified. P.O.box 3370 DK-2300 Copenhagen S Particularly five factors are essential for the Danish municipalities regarding the future Cohesion Policy. Tlf +45 3370 3370 Fax +45 3370 3371 1) A strong focus on creating smart, sustainable and inclusive growth in www.lgdk.dk Europe LGDK supports that the Cohesion Policy is focused on creating 1/3 growth and jobs in the EU. The overall purpose of the Cohesion Policy should be to pursue smart, sustainable and inclusive growth. Hence, LGDK agrees with the Commission that the future Cohesion Policy should be linked closely to the goals of the Europe 2020 strategy. It is very important that there is a direct and obvious line from the overall goals of Europe 2020 to each project, that will be implemented during the future period. The Europe 2020-strategy can only be successful if it is firmly interrelated with the future Cohesion Policy. LGDK considers it essential that the EU maintains its focus on common European growth challenges. The previous objective 2 areas should still be a part of the Cohesion Policy after 2013. LGDK agrees with the Commission that an effective implementation of the programmes requires a management system involving relevant stakeholders. Thus, LGDK emphasizes that the partnership principle should be maintained in the coming period. The Danish experiences of implementing the programmes of the Structural Funds in a partnership between municipalities, regions, businesses, educational institutions and social partners through the “Regional Growth Fora”1 are positive. This structure should be maintained. 2) The Rural Development Policy should be integrated into the Cohesion Policy Rural Development Policy should be an integral part of the future Cohesion Policy after 2013. In the current Danish Structural Funds program a certain proportion of funds are allocated to the peripheral regions. As regards more businesses and jobs in preipheral regions the Rural Development Policy and the Cohesion Policy could be more integrated. 3) A strong focus on sustainable development Thirdly, the Danish municipalities emphasize that sustainable development must be a high priority in the future Cohesion Policy. LGDK supports the focus of the Fifth Cohesion Report on climate changes and that this is a significant challenge for all regions in Europe. Besides being a growing socio-economic challenge, climate changes are also affecting the daily lives of the citizens and therefore, climate changes and adaptation are key concerns of the Danish municipalities. LGDK finds that there are great economic potentials in developing new technologies targeted to a more sustainable development. A future Cohesion Policy need to focus on this aspect and climate changes and adaptation should be a crosscutting issue for the future Cohesion Policy. 4) Documentation of results and effects is necessary 1 With the local government reform and the new regional growth fora, a strong platform was established for regional and local business development action. The six regional growth fora in North Jutland Region, Central Denmark Region, Region of Southern Denmark, Zealand Region, Copenhagen Capital Region, and on the island of Bornholm are the pivotal points of regional growth initiatives in Denmark. The growth fora brings together representatives of the business community, knowledge and educational establishments, the labour market parties as well as local and regional authorities – actors with a first-hand knowledge of the challenges of the business community and the regional conditions for growth. 2 In the future Cohesion Policy there must be an increased focus on documentation of results and effects. Growth policy is not like other welfare benefits. It is an investment that needs to be worthwhile. A better documentation of effects and results will enhance the knowledge of the initiatives that make a real economic difference. Danish municipalities have been working very consistently on documentation over the past years. The future Cohesion Policy needs to have one overarching goal – namely whether it succeeds in increasing economic growth, competitiveness and employment in the regions. This needs to be shown transparently focusing on effects. LGDK supports the Commission’s ideas regarding the need to define clear and measurable objectives and performance indicators. LGDK recommends the establishment of a limited number of meaningful, comparable and measurable indicators that are directly linked to the achievement of the program objectives - including the connection to Europe 2020. However, it is important that this does not lead to unnecessary bureaucracy. 5) Limiting unnecessary red tape LGDK is in general satisfied with the Danish organisational structure regarding the Structural Funds, which works through the “Regional Growth Fora”. However, the complexity of the framework is extensive, and this hinders the access to apply for funding, as well as the possibility of projects being completed. There are even examples, that it takes up to a year before an application is approved. Therefore, the administrative and control processes should be simplified and made faster by e.g. accepting a greater tolerance of error. LGDK strongly supports that illegal dealings with Structural Funds, should be prevented, but parts of the current control and audit management is a barrier for municipalities participating. Thus, LGDK believes that there is a need for a revision of the regulatory framework in order to achieve overall simplification e.g. by using LEAN procedures. Finally, LGDK recommends that the EU works on models for a more differentiated control of the Structural Funds. In areas that have been shown to be problematic in the past, EU control could be more extensive than in the areas where the legal framework is widely respected. 3 .
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