Post 2013 Euro funding programmes

European Structural Funds:
2014 -2020

Rob Halford
Wales European Funding Office

Content:
- Parameters / Expectations

- Planning Process

- Priorities

Commission Expectations
• Delivery on Policies: Europe 2020,Flagship Initiatives
etc.
• Links to EU policy Strategic Architecture
• Integration of funds. Domestically (ERDF, ESF, EAFRD,
EMFF) and EU delivered (Horizon 2020, Connecting
Europe, LIFE+)
• Stronger focus on performance and achieving outcomes
and results.
• Clear intervention logic
• Use of stronger (contractual) conditions i.e. sanctions
for missing agreed specific targets in programme.
• Concentration of resources on fewer activities.

Ewrop & Chymru: Ewrop & Chymru: Buddsoddi yn eich dyfodol
Buddsoddi yn eich
Dyfodol Europe & Wales: Investing in your future
Europe and Wales: Investing in your future

SMART
Thematic Objectives
• strengthening research, technological development and innovation;
• enhancing access to, and use and quality of, information & communication
technologies;
• enhancing the competitiveness of SMEs, the agricultural sector (EAFRD)
and the fisheries / aquaculture sector (EMFF);
SUSTAINABLE
• supporting the shift towards a low-carbon economy in all sectors;
• promoting climate change adaptation, risk prevention and management;
• protecting the environment and promoting resource efficiency;
• promoting sustainable transport and removing bottlenecks in key network
infrastructures;
INCLUSIVE
• promoting employment and supporting labour mobility;
• promoting social inclusion and combating poverty;
• investing in education, skills and lifelong learning;
• enhancing institutional capacity and an efficient public administration

Buddsoddi yn eich

Investment Focus: ERDF
Commission’s Draft Regulations puts clear focus on:

•Research & Innovation
•Energy efficiency & Renewable Energy,
•SME competitiveness

Concentration of ERDF resources on the above themes:

•80% in more developed and transition regions (EW)
•50% of resources in less developed regions (WWV)

•Remaining resources must be applied to themes in Commission list

Buddsoddi yn eich

Investment Focus: ESF
ESF draft regulations also focus on Europe 2020 goals:

• Promoting employment and supporting labour mobility
• Investing in education, skills and life-long learning
• Promoting social inclusion and combating poverty – min. 20% of
ESF
• Enhancing institutional capacity and efficient public administration
• Greater emphasis on fighting youth unemployment
• Strengthened provision for transnational co-operation, social
innovation, gender equality and equal opportunities.

Buddsoddi yn eich

Planning Process:
We must all face up to the challenge of making tough choices
about how and where we should invest resources. Resources
cannot be spread thinly across a broad range of interventions.
We need to invest in areas which have genuine potential to
transform our economic prospects…...A whole-Government
approach is needed to integrate interventions to deliver
realistically on our ambitions.
Deputy Minister’s Oral Statement 8 May 2012

Next Steps: Welsh Government
Guiding Principles
• Creation of sustainable jobs and growth: facilitating role of business.
• Balance between greater thematic concentration and more effective
spatial targeting- essentially greater concentration in fewer
geographic areas- to maximise impact.
• Alignment of programmes with relevant Welsh Government
strategies and policies.
• Contribution to a transformational impact on the Welsh economy.
• Ensure sustainability of future investments: clear exit strategies,
takes account of role of private sector, building social resilience etc.
• Demonstrate clear added value and based on sound evidence.

Buddsoddi yn eich

Structural Fund: Proposed Priorities and
Cross Cutting Themes

ERDF
ESF
• SME Cross-Cutting
• Young People Themes
Competitiveness
• R&D and • Employment • Sustainable
Innovation Development
• Infrastructure • Skills • Tackling Poverty
• Energy
• Equal
Opportunities
EAFRD & EMFF
Rural and Fisheries

Ewrop & Chymru: Buddsoddi yn eich dyfodol
Europe & Wales: Investing in your future

‘Presumption Against’:
• General Business support and grant-based business support -
other than for R&D or targeted interventions.
• Primary or ‘blue-skies’ research.
• Engagement and support measures where support could restrict
the ability of the private or third sectors to operate.
• Labour market interventions that are more social in nature with
little prospect of outcomes that enhance employability.
• Managed access to countryside and coast and initiatives
developing the natural , historic or cultural environment.
• Building more integrated and effective public services.

(Not an exhaustive list)

Buddsoddi yn eich

Planning the new Programmes: Partner
Engagement
• European Programmes Partnership Forum (2014-2020)
• Key mechanism for partnership engagement – all sectors represented.

• Workstreams
• Development of detail for Operational Programmes, Evaluation, Delivery
and Compliance, and Territorial Co-Operation.

• Public Consultation:
• Two stage process – ‘direction then detail’
• Reflection Exercise – 80 responses – informed Ministerial Statement on
Principles and Priorities (8th May 2012)
• Formal consultation on the detailed content of the Operational
Programmes - early 2013.

Buddsoddi yn eich

EU Negotiation of Budget / Regulations Planning Process
Publish draft Publish Agreement
regulations & draft of Financial
draft financial Common Perspective
perspective Strategic and budget Agreement of Structural
(2014-2020?) Framework Negotiations allocations Fund Regulations

2011 2012 2013 2014

First meeting Early Detailed Public Negotiation of Begin
of Post-2013 programme programme consultation Operational programme
Partnership development development on draft Programmes implementation
Forum & consultation documents
Establish
workstreams

WEFO key stages / milestones

Buddsoddi yn eich

ERDF - SME Competitiveness
Aim: Business growth and jobs
• Core performance indicators: New businesses created; and New jobs
created.
• Regulatory Restrictions: only SMEs eligible
• Commission expectations: use of loans and equity vehicles; more
targeted and focussed support; clear focus on improving access to
finance
• Rationale:
– SMEs key source of private-sector employment,
– comparatively low levels of entrepreneurship in Wales,
– management skills and experience; business innovation; access to finance;
effective networks are barriers to growth
– Evidence on the economic benefits of direct support to businesses by
government is mixed.
– Businesses are best placed to advise other businesses.

Buddsoddi yn eich

ERDF – Research and Innovation
Aim: address productivity gap: increased capacity and attract funding for
research and innovation; embedding a culture of innovation; and
increasing the economic exploitation of R&I
• Core performance indicators: R&D jobs created; Enterprises introducing
new / improved products; Private investment induced; Enterprises co-
operating with Research Institutions.
• Regulatory restrictions: State Aid issues with larger organisations
• Commission expectations: clear link to economic outcomes; smart
specialisation; focus on Grand societal challenges.
• Rationale:
– Exploitation of new technologies and research, and networking, of critical
importance in boosting productivity.
– Greater specialisation and focus on world-class excellence is required to
remain competitive for increasingly over-subscribed UK, EU and global
research funds.
– Access to finance remains the main barrier for innovative businesses.

Buddsoddi yn eich

ERDF: Renewable Energy and Energy Efficiency
• Aim: address climate change objectives and support the development of a
low-Carbon economy and green jobs.
• Core performance indicators: jobs created; renewable energy generated;
users connected to smart grids.
• Regulatory restrictions: renewable energy only; only existing housing for
energy efficiency; issues of State Aid and where Government schemes
exist (e.g. feed-in tariffs, Green Deal).
• Commission expectations: consideration of planning issues
• Rationale:
– Strong case on environmental and economic grounds
– immediate job impacts of energy efficiency investments deliver and longer term
gains through renewable energy generation, research, and demonstration.
– Natural resources and existing expertise

Buddsoddi yn eich

ERDF –Infrastructure
• Aim: improved environment for business creation and growth through:
better connections for business and employment; completion of digital
networks; strategic infrastructure to drive economic development
• Core performance indicators: new jobs created; km road / rail created /
improved; increase in use of supported transport; population covered by
broadband
• Regulatory restrictions: roads need to be linked to TEN-T networks
• Commission expectations: very limited infrastructure in UK; addressing
“bottlenecks”, “sustainable” transport; urban congestion
• Rationale:
– Peripherality has major impacts on levels of productivity
– Need for other components of growth other than transport
– ICT infrastructure essential for growth
– Mixed evidence of the economic impact of regeneration

Buddsoddi yn eich

ESF – Skills
• Aim: to invest in skills as a driver of productivity and growth, tackling
identified skills gaps, supporting progression in employment

• Rationale:
– Basic skills requirements remain including as a pathway to higher skills
– Higher levels of qualification are associated with higher levels of
employment and higher wages.
– Higher skilled jobs set to increase, lower skills jobs set to decrease
– Skills development of a workforce offers employer flexibility and
adaptability
– Skills development can facilitate career progression and help address in-
work poverty

Buddsoddi yn eich

ESF – Young People
Aim: To address rising levels of youth unemployment and tackle poverty, inclusion and
disadvantage through investing in the development of children and the education,
training and employment of young people.

Rationale
Significant impact of economic downturn on youth employment.
More competitive labour market – with people working longer.
Early interventions can help prevent individuals becoming NEET.

Possible Themes:
1 Early Years – Improving the life chances of children from early years.
2 Youth Attainment and Engagement- increasing skills and educational attainment
amongst young people
3. Youth Employment - supporting the progression of young people
( up to age 25) into employment

Buddsoddi yn eich

ESF – Employment

Aim: To contribute to increasing the employment rate and to tackle poverty and social
inclusion in Wales through supporting people in finding and maintaining sustained
employment.
Rationale
Challenging labour Market environment.
Decline in low skilled occupations/ higher skilled more insulated from effects of
recession.
Getting a job – or progressing within employment are best means of combating poverty
and in work poverty.

Possible Themes
Helping People into Work
Inclusion and Engagement in the Labour Market
Helping People stay and Progress in Work

Buddsoddi yn eich

Thank You.
Rob Halford
Wales European Funding Office

Post 2013 Euro funding programmes

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