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Programme Implementation Interreg IIIB North Sea Region Programme Annual Report 2008 I Interreg IIIB North Sea Region Programme Commission reference no. 2001 RG 16 0 PC 005 Sixth Annual Report for the Community Initiative Interreg IIIB North Sea Region Programme covering the period 1 January 2008 to 31 December 2008. The Member States of Denmark, Germany, the Netherlands, the Flemish Region of Belgium, Sweden and the United Kingdom, together with the non-Member State Norway have co-operated on transnational spatial development projects in the North Sea Region throughout 2008. The Community Initiative Programme was approved by the European Commission on 13 December 2001. This report covers the programming period from 1 January 2008 to 31 December 2008. The eligible regions can be seen on the map below. II The report is structured as follows: Executive summary........................................................................................................................... 4 Section A – Operational Context....................................................................................................... 6 Section B – Programme Administration and Management ............................................................. 12 Section C – Programme Implementation ........................................................................................ 22 Section D – Progress on implementation of the priorities and measures ....................................... 25 Section E – Financial implementation............................................................................................. 38 Section F - Information and Publicity .............................................................................................. 46 Section G – Appendices ................................................................................................................. 49 III Executive summary The shock waves of the unprecedented financial crisis have deeply marked the economy throughout the European Union. As a consequence of the current crisis, the economic growth in the Member States in the short and medium term was expected to face severe challenges, while unemployment was and still is on the rise. Cohesion policy is the Community’s prime instrument to invest in the real economy and to address social, economic and territorial cohesion. In these circumstances, in order to facilitate the smoothest possible closure of the Structural Funds’ 2000-2006 assistance, the final date of eligibility of expenditure was extended to 30 June 2009 for the 2000-2006 programmes affected by the crisis following a notice from the Commission (3 December 2008). Through Articles (30) 2 and (14(2) of EC Regulation 1260/1999, the North Sea Programme applied for extension of the final date of eligibility of expenditure of the Interreg IIIB North Sea Programme. The programme recognised the need for an extension, given the significant changes in the socio-economic situation and its effects to the labour market, which are likely to be dramatic. The programme also recognizes the liquidity problems arising from the economic crisis and the impacts of it on the implementation of the programme. The extension of the final date for eligibility of expenditure under the Interreg III Community initiative was approved by the Commission on the 19 February 2009. The closure documents for the North Sea Programme would be submitted to the Commission by 30 September 2010 at the latest in accordance with the provisions of Article 105(3) of Regulation No 1083/2006 and as set out in Point 3.3.2 of the Closure Guidelines. An extension of the eligibility of expenditure will help institutions and projects working in the Programme to get sufficient time to react on the first impacts of the financial crisis and to reallocate their resources to implement their activities as anticipated. In addition, it will ensure the longevity of this impact and continuation of support for a programme which enables the harmonious and balanced development of the North Sea Region. Following the approval of the extension of the final date for eligibility of expenditures, 2008, the seventh year of operations for the programme and based on the solid foundations of consensus decision-making and good co-operation between the programme stakeholders, the programme delivered in line with all financial and content related targets. By the end of 2008, the completed projects produced visible results illustrating the progress made to date towards the programme targets. Based on the final reports of the projects, it should be noted that the programme targets have been exceeding the expected baseline and targets of the North Sea Programme. The latest available figures indicate that more than 7.750 organisations have been participating in one or more of the 70 approved projects and the accumulated number of people involved is now exceeding 40.000. It is also interesting to learn that in total 805 training courses were delivered, with 8.233 participants. Projects have also continued to deliver results of a more tangible nature, such as 2.528 new tourism offers, 1.114 new social services and 193 new transport services. 4 By choosing a strategic approach to project development and by identifying specific gaps, the programme continued its efforts to involve more sectors into programme delivery. Key issues for the region, such as improved management of flood risks and protecting the natural environment along the coastline, land and water resource use, estuarine and coastal areas were identified and relevant administrative bodies on international, national and regional level are now participating in the programme. The Mini Call was announced for additional publicity and communications activities to be carried out by projects that had already been approved by the Interreg IIIB North Sea Programme. The funding granted made additional investment possible to support the work already carried out by the approved projects, enabling them to reach out to a larger audience and increase the viability of their results and outcomes. The funding resulted in a broad range of communications tools and activities aimed at enhancing the overall impact of the North Sea Programme to a wider European public. The approved Mini Call projects were carried out aiming at the development and implementation of additional publicity and communications activities. All activities were completed by the 30 June 2008. 12 projects were approved and 18 Interreg IIIB projects were involved. In total, 23 communication products were produced with an emphasis on films, DVDs and video clips. In addition, a website, a media package and a book were produced as well as wiki-application and a pamphlet to give supporting information to one of the DVDs. Please, consult our web page for further information (http://northsearegion.eu/iiib/content/show/&tid=107). By the end of 2008, the North Sea Programme has claimed and received from the European Commission an amount of €110.7 million. As the total ERDF is €134,7 million the amount left is €23,9 million. The final amount, which the North Sea Programme will claim, will depend on the final payments claimed by the projects of which some are still being processed. It is not possible to state the exact amount which will be claimed but it can be concluded that the North Sea Programme will not claim the full ERDF budget available. This is because some of the projects do not claim the full ERDF grant. In other words, the programme avoided de-commitment in 2008 as in all previous years. Finally, despite the financial crisis and the impact of climate change, 2008 saw the continuation of excellent progress in delivering the Interreg IIIB North Sea Programme and meeting its targets. In addition, the new North Sea Region Programme has already taken into account of the changing policy directions by addressing key issues such as transnational innovation capacities and competitiveness, sustainable energy, climate change response, maritime policy and safety, accessibility, demographic change and sustainable and competitive communities. By the end of 2008, the new North Sea Region Programme already had 28 projects approved. 5 Section A – Operational Context A.1.0 Operational Context 2008 saw the continuation of excellent progress in delivering the Interreg IIIB North Sea Programme and meeting its targets. So far the secretariat has received 69 final reports of which 51 final claims have been paid. 1 report was outstanding due to an Article 10 procedure on second control level. The current and forecasted economical slow-down and the increase of the unemployment rates have a potential impact on socio-economic issues and the general quality of life of people living in the North Sea Region. Private consumption growth is expected to slow down in parts of the Region, due to consumer pessimism and the worsening labour market. The general decrease of disposable income has the potential to foster this negative development. Investor confidence has collapsed leading to liquidity problems within the financial system and the broader economy.1 In 2008, the socio-economic situation of the North Sea Region faced severe socio- economic challenges as a consequence of the financial crisis and the energy price. All countries of the North Sea Region are significantly affected, resulting in a slow-down of economic activity and increased unemployment rates. Forecasts of the socio-economic development highlight the challenges that the North Sea Region is about to face until at
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