Download Suggested investment focus

Position of the Commission Services on the
development of the Partnership Agreement
and programmes in SLOVAKIA
2014-2020
Bratislava, 14 November 2012
Why a position paper?
• Pro-active approach - early notice of the Commission services’
views on:
 Main challenges facing Slovakia
 Funding priorities for 2014-2020
 Ways to improve efficiency of spending
• A framework for informal negotiations
• Covers 5 funds (Regional, Cohesion, Social, Rural Development
and Fisheries)
2
EU level
THE COMMON STRATEGIC FRAMEWORK
ERDF, ESF, CF, EAFRD, EMFF
POSITION PAPER
•
National
level
THE PARTNERSHIP AGREEMENT
ERDF, ESF, CF, EAFRD, EMFF
Operational
Programmes under the
ERDF, SF and CF
National or
regional level
Rural development
programmes (EAFRD)
Operational
Programmes for EMFF
3
Main messages of position paper
• More limited range of priorities - focus on growth & jobs
• Priority to Europe 2020 objectives - taking account of Country
Specific Recommendations of the European Council
• Improve efficiency & effectiveness of spending
• Promote cross-border co-operation and tackle regional
disparities
• Co-ordination and partnership between all levels vital to
success
4
Socio-economic situation
•
Slovakia hit by crisis but recovering
•
GDP per head 73% of EU average - but wide regional
disparities and marginalised communities
•
Labour market weak (high youth and long-term
unemployment rates)
•
Diversification of economy needed
•
Business environment adversely affected by administration
inefficiencies and quality of education sector
5
Europe 2020
Headline targets for Slovakia
Current .
situation in
Slovakia
National
2020 target
in the NRP
3% of EU GDP to be invested in research &
development (% of GDP)
0.63% (2010)
1%
20% of energy from renewables
9.8% (2010)
14%
n.a.
Reduction
by 1.6 Mtoe
75% of the population aged 20-64 should be
employed
65.1% (2011)
72%
At least 40% of 30-34 years old completing
tertiary or equivalent education
23.4%
40%
Reducing the number of people at risk of poverty
or exclusion by at least 20 million in the EU
(baseline 2008)
+ 1 000
(2011)
- 170 000
Europe 2020 headline targets
20% increase in energy efficiency (reduction of
energy consumption by 368 Mtoe) for EU 27
6
Weak competitiveness
and research &
innovation system
Underdeveloped
infrastructure
endowment
Main
Challenges:
Underperforming education
system. Under-used labour
market potential and high youth
unemployment
Inefficient use of
natural resources
Weak public
administration
7
Main funding priorities: overview
1. Innovation-friendly business environment
2. Infrastructure for economic growth and jobs
3. Human capital growth and improved labour market
participation
4. Sustainable and efficient use of natural resources
5. Modern and professional administration
8
1. Innovation-friendly business environment
• Quality of innovation system will determine competitiveness and thus growth
prospects and ability to create jobs
• Four main components:
o Business innovation & competitiveness
o Research & innovation system
o Developing e-economy
o Economic environment in rural areas
 It is suggested that this funding priority should receive more support in next
period
9
1. Innovation-friendly business environment
Main Challenges:
•
Weak competitiveness
•
Poor business environment (regulatory policy, burdens on start-ups,
administrative capacity)
•
Low share of R&D investment, in particular in private sector
•
Lack of well co-ordinated and targeted support
•
Fragmented institutional responsibilities
•
Broadband coverage has improved but is below EU average (83%
compared to 96%)
•
Access and take-up particularly low in rural areas
10
1. Innovation-friendly business environment
Suggested investment focus:

Enhanced support for SMEs

Focus on areas of market failure and innovation-friendly sectors i.e. aid
diversification of economy

Greater use of financial instruments to leverage private investment

Improve each component of “knowledge triangle”: education, research and
innovation

Actions based on “Research & innovation strategies for smart specialization”

In line with Digital Agenda, focus on investments in networks assuring next
generation access (NGA)

Promote normal broadband access and uptake in remote, sparsely populated
areas
11
Improving the economic environment in rural areas (EAFRD)
– agriculture sector & rural economy
Challenges:
• Low added value
• Weak position of
producers v. concentrated
retail chain
• Dual type of farming
(large and small farms)
• Strong urban v rural
disparities, lack of small
scale infrastructure
• Unemployment and
depopulation of rural areas
Suggested investment focus:
 Encourage vertical &
horizontal integration
 Accompany farm restructuring
process
 Focus on micro-enterprises and
SMEs in rural areas to diversify
rural economy
 Local infrastructure to
facilitate local tourism and
products, etc.
 Promote Community Led Local
Development (Leader)
12
1. Innovation-friendly business environment
Ex-ante conditionalities and success factors:
• Develop “Research and innovation strategies for smart specialization”
• Implement National Reform Programme actions to improve business
environment
• Improve institutional structures - closer co-ordination
• Reinforce higher education system to increase research & innovation output and
ensure qualified human capital
• Prioritise and concentrate support based on international benchmarking
13
2. Infrastructure for economic growth and jobs
•
Well planned and implemented modern infrastructure improves
accessibility and connectivity and thus attractiveness for investment laying foundation for growth and jobs
•
Focus on priority missing links both nationally and across borders
•
Emphasis on:
o
More sustainable and environmentally friendly transport
o
More cost-effective infrastructure
 It is suggested that this funding priority should continue to receive a
major share of support but relatively less than in current period
14
2. Infrastructure for Economic Growth and jobs:
Improving accessibility and sustainable transport
Challenges:
•
Lack of maintenance, high renovation costs and obsolete rolling stock
•
Incomplete motorway network due to under-investment and policy changes
•
Investment in clean urban transport neglected
Suggested investment focus:

Key priorities identified in master plan - focus on TEN-T core network

Cost-effective, quality, interoperable railway system

Complete core system of motorways and expressways with attention to traffic
demand, safety and the environment

Promote sustainable urban transport
15
2. Infrastructure for economic growth and jobs
Ex-ante conditionalities and success factors:
•
Comprehensive, multi-modal transport master plan
•
Ensure synergies with Connecting Europe Facility
•
Ensure via effective planning a proper level of maintenance of new
infrastructure
•
Improve capacity of bodies responsible for planning, procuring and
managing major transport infrastructures
•
Analyse reasons for high unit costs of infrastructure investments
16
3. Human Capital Growth and Improved Labour
Market Participation
• The development and full utilisation of human capital is core to job rich
growth
• Four main components:
o
o
o
o
Quality and labour market relevance of education
Access to employment of vulnerable groups
Youth unemployment
Marginalised Roma Communities
 It is suggested that this funding priority should receive more support in
next period
17
3. Human Capital Growth and Improved Labour
Market Participation
18
3. Human Capital Growth and Improved Labour
Market Participation
Suggested investment focus:
• Education at all levels  increase quality and its labour
market relevance;
• Integration of vulnerable groups in the labour market  focus
on young, women, long term unemployed, rural population;
• Marginalised Roma Communities  integrated approach,
including education, housing, labour market and health.
19
3. Human Capital Growth and Improved Labour
Market Participation
Ex-ante conditionalities and success factors:
• Effective active labour market policies;
• Strong labour market institutions;
• Strategy(ies) for tertiary education;
• A robust framework for lifelong learning;
• Effective co-ordination and strong capacity to implement the
measures for the marginalised Roma communities.
20
4. Sustainable and efficient use of natural resources
•
Resource efficiency improves competitiveness and provides
opportunities for job creation while protecting natural
resources
•
Two main components:
o
Supporting shift towards an energy efficient, low-carbon economy
o
Environmental protection, climate change adaptation and improved
management of natural resources
 It is suggested that this funding priority should receive an increased
share of support in the next programming period
21
4. Sustainable and efficient use of natural resources
Main challenges:
•
High level of energy intensity (5th highest in EU) and unambitious
targets for energy saving
•
Share of renewable resources (RES) in final energy consumption below
EU average
•
High level of land-filling of urban waste while recycling low
•
Water pollution still a problem despite past investments
•
Risks of flooding, soil contamination and erosion
•
Threats to Slovakia’s significant biodiversity resources
22
4. Sustainable and efficient use of natural resources
Suggested investment focus:
•
Increase energy efficiency – e.g. in SMEs and public buildings
•
Promote eco-innovation, low carbon strategies and local energy
infrastructure
•
Support environmentally sound RES, through innovative technologies
•
Support for water and waste management investments with focus on
highest priorities to meet EU directives
•
Promote sustainable land, water and soil management and preservation
of natural resources
•
Protect biodiversity and ensure climate change resilience
23
4. Sustainable and efficient use of natural resources –
agri-food and forestry
Specific challenges:
•
Unused potential for renewable energy production
•
Greenhouse gas emissions
Suggested investment focus:
 Develop more environmentally sustainable RES supply from agriculture
and forestry (e.g. biomass)
 Promote energy efficiency and use of RES
 Promoting natural carbon sequestration and emission reduction (e.g.
nitrous oxide, ammonia and methane emissions)
24
4. Sustainable and efficient use of natural resources –
agriculture and forestry
Specific challenges:
•
Biodiversity vs. intensive farming and land abandonment
•
Climate change adaptation
Suggested investment focus:
 Protecting biodiversity: NATURA
2000 areas, High nature value
farmland, ecosystem approaches
 Sustainable land, soil & water
management
 Flood prevention
25
4. Sustainable and efficient use of natural resources
Ex-ante conditionalities and success factors:
•
Ensure legislative changes required by ex-ante conditionalities
•
Implement energy efficiency and renewables action plans
•
Develop strategic plan for environmental investments
•
Improve cost-effectiveness of infrastructure through better planning and
implementation
•
Adopt national strategy for adaptation to climate change
•
Develop national risk assessment plan
26
5. Modern and Professional Administration
•
Essential to promote jobs and growth in line with Europe
2020 and achieve the objectives of the National Reform
Programme;
•
Fundamental for improving competitiveness and social wellbeing;
•
Central to the effective and efficient and delivery of CSF
funds.
27
5. Modern and professional Administration: challenges
Overall profile of public administration in Slovakia
SK
G-Civil justice
F-Tax compliance & tax
administration
E-Public Procurement
EU average
A-Government
Effectiveness
0.6
0.4
0.2
0.0
-0.2
-0.4
-0.6
B-Tools for administrative
modernisation
C-Corruption and fraud
D-Business Start & Licenses
Source: WIFO
28
5. Modern and Professional Administration
Suggested investment focus:
•
Horizontal aspects: Human resources, analytical capacities,
quality of spending, fight against corruption;
•
Sector aspects: tax governance, judiciary;
•
Civil society: capacity building for a stronger public
oversight;
•
E-government
Ex ante conditionality: A comprehensive Public Administration Reform
Strategy
29
European Territorial Co-operation
• Transnational and cross-border dimensions, including in the framework of the
EU Strategy for the Danube Region (EUSDR) notably in:
o Improving accessibility by removing bottlenecks in transport, and
improving navigability of inland waterways
o Removing barriers to labour mobility
o Exchanging know-how through e.g. joint innovation projects
o Co-operation in environmental issues with cross-border impact, e.g.
water quality or anti-flood measures
 Incorporate the EUSDR objectives in all programmes
30
Territorial issues within Slovakia
• Regional disparities in socio-economic development very important in
Slovakia - EU fund support of regions and urban development fragmented and
linkages between sectoral and regional policies insufficient
• Critical evaluation of current programming period needed to:
o Assess reasons for persistent regional disparities
o Develop more strategic approach to territorial development to reduce
gaps between and within regions and between urban and rural areas
o Set out in programmes contribution to an integrated approach to
territorial development, including sustainable urban development
31
Investment areas requiring specific justification
Based on experience of the current programming period and with a view to greater
concentration of resources, the following areas of spending are considered to require
specific justification as regards their contribution to Europe 2020 objectives:
•General education infrastructure (except for e.g. pre-primary, VET and LLL
education)
•Health infrastructure
•Local roads and public lighting
•Commercial tourism facilities such as hotels, leisure and spa facilities
32
Administrative arrangements
• Reinforce capacity and efficiency of responsible bodies
• Better targeting of technical assistance funds (e.g. to support beneficiaries as
well as central authorities)
• Reinforce capacity of key stakeholders (civil society organizations and social
partners)
• Reinforce actions to tackle corruption, conflicts of interest and cronyism
• Strengthen financial management and control - increase transparency in public
procurement
• Improve project selection to reduce administrative burdens
• Ensure active partnership at all stages of programming cycle
33
Informal dialogue with Slovakia
Next steps
• Position Paper sent to Slovakia on 30th October
• Commissioner Hahn’s presentation 9th November to Government
Council for the Partnership Agreement - launch event today
• Informal dialogue with Slovakia, submission of draft documents
-- Adoption of Common Provisions Regulation and Fund specific
Regulations-• Slovakia submits the Partnership Agreement
34
Thank you for your attention!
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For more information
InfoRegio:
www.ec.europa.eu/inforegio
RegioNetwork:
www.regionetwork2020.eu
• European Social Fund:
• http://ec.europa.eu/esf/
European Network for Rural Development:
www.enrd.ec.europa.eu