EU – Baltic States, Financial Services, Good for Business, Investments, Markets and Companies

Among the European Structural and Investment Funds, ESI there are the following five “sectoral” funds: = European Regional Development Fund, = European Social Fund, = Cohesion Fund, = European Maritime and Fisheries Fund, and = European Agricultural Fund for Rural Development.

Partnership Agreements

Under the new rules, EU member states are required to draw up and implement strategic plans with investment priorities covering these five ESI Funds. These “Partnership Agreements” (PAs) are negotiated between the European Commission and national authorities, following their consultation with various levels of governance, representatives from interest groups, civil society and local and regional authorities.

The starting point for these Commission-member states’ partnership agreements are position papers produced by the Commission’s DGs services (already in 2012 for each state) setting out how EU investments should support smart, sustainable and inclusive growth by focusing on key advantages and important growth sectors in regions and member states.

Operational Programs

The Commission also assists member states to draw up “Operational Programs” (OPs) breaking down the investment priorities and objectives of the Partnership Agreements into concrete actions. These OPs can cover entire member states and/or regions, or be cooperation programs involving more than one country. The Commission negotiates with the national and regional authorities the final content of these investment plans. All levels of governance, including civil society should be consulted and involved in the programming and management of the OPs.

According to the new rules, OPs should be submitted by the member states at the latest 3 months following the submission of the Partnership Agreement.

The Commission makes observations within 3 months and adopts the OP no later than 6 months from the date of its submission, provided that the member state has adequately taken into account the Commission’s observations.

The OPs are then to be implemented by the member states and their regions. This means selecting, implementing, monitoring and evaluating the individual projects according to the priorities and targets agreed for the programs with the Commission. This work is organised by 'managing authorities' in each country and/or region according to the principle of shared management and subsidiarity. The new rules require a much stronger focus on results and goals to be measured, monitored and published throughout the period.

Modern situation with PAs and OPs in the member states

The European Commission has now adopted Partnership Agreements with all 28 states, outlining their investment plans for European Structural and Investment Funds for the 2014-20 programming period. The first PA was adopted with Denmark on 5 May 2014; the last one was adopted on 18 November 2014, with Ireland.

Around 535 programs in total are expected for the ESI Funds, ensuring that the reforms that have been agreed for the 2014-20 period are implemented on the ground. As of today, the Commission has adopted 39 programs; negotiations continue to finalise the remaining programs to ensure that the programs make maximum contribution to growth and jobs. The deadline for submitting the programs is 24 November 2014; the overall aim is to adopt all programs by the summer of 2015.

Yet the Commission has underlined that a strategic approach to the use of the Funds is critical and quality is more important than speed. More information about funding individual projects can be obtained at national Managing Authorities, EU’s Europe Direct and European Commission member state Representations

More on the issue:

= On EU Regional Policy:

http://ec.europa.eu/regional_policy/what/future/index_en.cfm

= On European Social Fund:

http://ec.europa.eu/esf/

= On European Rural Development:

http://ec.europa.eu/agriculture/rural-development-2014-2020/index_en.htm

= On EU Fisheries and Maritime:

http://ec.europa.eu/fisheries/cfp/emff/index_en.htm

Reference: European Commission, Fact Sheet “Q&A on “Partnership agreements” between the Commission and the member states on European Structural and Investment Fund Investments for 2014-2020”, Brussels, 21 November 2014. In:   

http://europa.eu/rapid/press-release_MEMO-14-2043_en.htm?locale=en

Cross-border regional projects with Germany, Holland and the UK

Commissioner for Regional Policy, Corina Cretu announced the adoption of strategic programs that pave the way for EU investments in hundreds of cross-border and regional projects in Germany, the Netherlands and the United Kingdom.

= The first of Europe's cross-border cooperation or INTERREG programs – worth some €444 million, between Germany and the Netherlands will mainly invest in making the region's SMEs more innovative and helping create a greener economy in the Dutch-German border region. More generally it will help citizens and companies see the border as an opportunity instead of an obstacle.

= The first of the UK's regional operational programs unleashes an investment package worth €406 million and €1.8 billion respectively to East Wales and to West Wales and the Valleys. The investments, through the European Regional Development Fund (ERDF), will help drive research and innovation, boost the competitiveness and access to finance of small businesses, further develop energy efficiency and renewables, and support sustainable public transport systems, such as the Metro in the Cardiff Capital City Region.

These programs are the concrete translations of the investment priorities that each Member State has chosen in the Partnership Agreements with the European Commission.

= The last of these strategic plans was adopted in mid-November 2014, with Ireland, paving the way for over €3.3 billion worth of investments in the real economy there. Each Member State has also set itself clear, transparent and measurable targets for achievement to ensure the optimal use of European Structural and Investment Funds across the EU.

Commissioner for Regional Policy, Corina Cretu, underlined that these programs embody the true spirit of the reformed Cohesion Policy: they are about improved and more efficient cooperation and partnership. The Germany-Netherlands program goes well beyond co-financing requirements with 50% match-funding from the regional partners to ERDF. This is a 60% increase compared to the 2007-2013 period and shows the true added value of cooperation across borders.

She congratulated Welsh partners in reaching a strategic investment planning and added that Wales was a model for the rest of Europe's regions in terms of 'partnership in action'. These vital investment programs will set Wales on the path to smart and green growth - connecting people, skills and jobs.

More information:

= Cohesion Policy Country Factsheets;  

= European Commission, Press release “Commissioner Cretu marks important milestones to start the flow of EU regional investments”, Brussels, 21 November 2014, in: 

http://europa.eu/rapid/press-release_IP-14-2041_en.htm?locale=en