EC proposal for the next

MFF/smart specialisation

Marek Przeor

Team Leader - Smart Growth

G1 Smart & Sustainable Policy Unit

DG Regional and Urban Policy

25 October 2018

#CohesionPolicy

#EUinmyRegion

For internal use only

Package of legislative proposals has been proposed by

the European Commission in May/June 2018

2

Timeline

Common Provisions Regulation *

governs 7 Funds

• European Regional Development Fund(€ 200 billion, incl.€8.4 bn "Interreg")

• Cohesion Fund (€ 41 bn, incl.€11bn under

CEF2)

• European Social Fund Plus (€101 bn)

• European Maritime and Fisheries Fund

(€6.1 bn)

• Asylum and Migration Fund (€ 11.3 bn)

• Internal Security Fund (€ 2.5 bn)

• Border Management and Visa

Instrument (€ 8 bn)

*) https://ec.europa.eu/commission/publications/regional-development-and-cohesion_en

Not included anymore: European Agricultural Fund for Rural Development (€ 78.8)

Policy objectives

11 objectives are simplified and consolidated to 5:

1. A smarter Europe (innovative & smart economic transformation)

2. A greener, low-carbon Europe (including energy transition, the

circular economy, climate adaptation and risk management)

3. A more connected Europe (mobility and ICT connectivity)

4. A more social Europe (the European Pillar of Social Rights)

5. A Europe closer to citizens (sustainable development of urban,

rural and coastal areas and local initiatives)

ERDF THEMATIC CONCENTRATION

▪ Maintaining spending in the key areas for growth and jobs

▪ At national level based on GNI per head => flexibility

▪ 6% of budget to urban development, delivered through local

development partnerships

For countries

with:

minimum % PO1

("smarter Europe")

minimum % PO2 ("greener,

low carbon Europe")

GNI below 75% 35% 30%

GNI 75-100% 45% 30%

GNI above 100% 60% PO1 + PO2 min. 85%

Total ERDF budget: €200 bn

New regionaleligibility

map2021-2027

Scope of support from the ERDF

The ERDF shall support (Art. 4 ERDF Regulation):

• investments in infrastructure;

• investments in access to services;

• productive investments in SMEs;

• equipment, software and intangible assets;

• information, communication, studies, networking, cooperation, exchange of experience and activities involving clusters;

• technical assistance.

In addition, the ERDF shall also support:

• productive investments in enterprises other than SMEs when they involvecooperation with SMEs in research and innovation capacities and the uptakeof advanced technologies under PO1 Smart Growth (a) (i)

• training, life-long learning and education activities under PO1 (a) (iv);

• sharing of facilities and of human resources, soft investments and otheractivities linked to PO 4 under the ESF+, under the European territorialcooperation goal (Interreg).

A smarter Europe by promoting innovative

and smart economic transformation

Market orientationof research

activities

Digitalisation -an innovation

enabler

Development of skills

Location mattersfor SMEs and

start-ups

A smarterEurope

Interregional cooperation in value chains

Thematic S3 Platforms

3 platforms, 1 goal

• Joint EC-initiative (DG REGIO,

GROW, AGRI, ENER, JRC, …)

• Bottom-up approach

• > 100 regions involved

• > 25 partnerships under the 3

platforms

• Using S3 as a coordination principle

in strategic EU priority domains

• Alignment of regional S3

• Creation of interregional value

chains → investment projects

• Alignment of strategic investments

(public/ private)

Test new ways to:

• Commercialize and scale-up interregional innovation projects that can create or reshape European value chains

• Attract private investment for promising innovation projects

• Explore and strengthen synergies between different EU instruments (ESI funds, the Investment Plan, Horizon 2020, COSME)

Testing new approaches for interregional

innovation investments

S3P Industrial modernisation - 16 partnerships

S3P Agro-food - 5 partnerships

S3P Energy – 6 partnerships

MARINE RENEWABLE

ENERGYBIOENERGY

SMART

GRIDS

SOLAR

ENERGY

SUSTAINABLE

BUILDINGS

BIO-

ECONOMY

Support from S3Platform and

external experts

Learn Connect Demonstrate Commercialise Scale-up

Need to accelerate the work done within the

thematic platforms.

The focus will be on projects on higher TRLs (>5/6 TRL).

The results will feed into preprations for 2021-2027.

Moving from learning to commercialisation

and scale-up in interregional partnerships

Interregional innovation investments

WHAT

Interregional innovation investments through the commercialisation and scaling

up of interregional innovation projects having the potential to encourage the

development of European value chains ('component 5'). (ETC Art 3.5)

HOW MUCH

11.5 % of ETC Resources (i.e., a total of EUR 970m) for interregional innovation

investments (component 5). (ETC Art. 9.2)

HOW

It shall be implemented under direct or indirect management. (ETC Art 16.1)

FOR WHOM

At the initiative of the Commission, the ERDF may support interregional innovation

investments, as set out in point 5 of Article 3, bringing together researchers,

businesses, civil society and public administrations involved in smart

specialisation strategies established at national or regional levels. (ETC Art 61)

Programmes/Funds supporting innovation (1/2)• ERDF focus on regional relevance, economic transformation, diffusion of

existing knowledge & technology to places that need it, based on smart

specialisation strategies; new interregional innovation investment support

developing European value chains by helping partnerships cooperate in

investments in shared S3 priority areas (€226.3bn with minimum thematic

concentration of 35% to 60% on innovation, digitisation, SMEs)

• Horizon Europe focus on European research and innovation excellence, the

generation and exploitation of new knowledge and disruptive, market-creating

innovations (€100 bn)

• InvestEU focus on market-based instruments, for strategic investments (€38bn

(incl. €23 for R&I and SMEs) mobilising €650bn (incl. €415 for R&I, digitisation

and SMEs)

• Digital Europe focus on digital transformation via AI, cyber-security, high

performance computing, advanced digital skills, interoperability, deployment of

digital solutions in business and administrations, incl. networking of Digital

Innovation Hubs (€9.2 bn)

• Single Market Programme focus on improving the functioning of the internal

market, SMEs' access to markets, favourable business environment,

competitiveness of sectors, the modernisation of industry and the promotion of

entrepreneurship (€6 bn, of which €3bn for SMEs)

Programmes/Funds supporting innovation (2/2)• ESF+: inclusion, education and skills (notably basic digital skills) to adapt to the current

and future needs of the economy, health, labour mobility and social innovation (€100 bn)

• EAFRD: sharing of knowledge, uptake of innovation and digitalisation in agro-food sector

(€78.8bn)

• Erasmus+: learning mobility of individuals and cooperation, for education and training,

creativity and innovation at the level of organisations (€30bn)

• Reform Support Programme: institutional reform and efficient and service-oriented

functioning of public administration and e-government (€25 bn)

• Space Programme: support to space sector, space infrastructures and services

(Copernicus, Galileo, EGNOS) (€16 bn)

• Defence Fund: minimising fragmentation and boosting competitiveness and innovation

of the EU defence industry (€13bn, incl. €4.1 from Horizon Europe)

• LIFE programme: support demonstrating techniques and best practice in Circular

Economy, quality of life, climate mitigation and adaptation; and Clean Energy Transition

that can be replicated and up-scaled in larger programmes (€5.4bn)

• Creative Europe: competitiveness and innovation capacity the creative and audiovisual

industry, promote cultural diversity and heritage, support culture-based creativity in

education and innovation (€1.8 bn)

Synergies

▪ The “Seal of Excellence” allows projects successfully

evaluated under Horizon Europe to be funded by Cohesion

Policy without having to pass another selection process, if

they are consistent with the region’s or the programme’s smart

specialisation strategy.

▪ On a voluntary basis, and up to 5%, Member States can

transfer Cohesion Policy resources to another EU instrument

to fund a project; in this case, the rules of the other instrument

apply.

▪ The other way around, Member States can also choose to use

their Cohesion Policy money to finance a project selected

under another EU budget tool; in this case Cohesion Policy

rules apply.

▪ Member States can choose to transfer up to 5% of their

Cohesion Policy resources to the new InvestEU fund.

Thank you!