SEE Annual Conference The benefits of transnational cooperation: the case of Croatia

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1 SEE Annual Conference The benefits of transnational cooperation: the case of Croatia OCTOBER 2009 Hotel Holiday Inn, Sarajevo Ministry of Regional Development, Forestry and Water Management

2 Content A Regional Overview of SEE countries and Croatian economy History of development of Interreg/Territorial co-operation in Croatia IPA and Transnational co-operation Initial lesson for Croatia Conclusion

3 Income level of SEE countries is still lower than in the EU-27 GDP per capita at PPP in % of EU Slovenia Czech Republic Slovakia Hungary Poland Romania Bulgaria Croatia Serbia Turkey Montenegro FYR Macedonia Bosnia & Herzegovina Albania Source: wiiw.

4 Clear improvements of the institutional framework EBRD T ransition Indicators (overall transition score) Hungary Czech Republic Poland Slovakia Bulgaria Romania Slovenia Croatia FYR Macedonia Albania Serbia BiH Montenegro Source: EBRD.

5 Competitive Advantages of SEE Countries Continuously improving infrastructure supports trade with the EU markets Geographical location, closeness to the enlarged EU EU accession process Progress in transnational and regional cooperation and integration

6 Where is Croatia now? Candidate Country - Accesion negotiations for EU membership started on 3rd October 2005

7 GDP per capita, average EU 27=100

8 The economic policy objectives of Croatia Maintaining a stable macroeconomic environment Raising the level of competitiveness Accelerating economic growth Creation of a knowledge-based society In line with priorities set in the Accession Partnership

9 The Croatian Economy in 2009 Croatia has experienced solid growth rates over the last few years The global economic crisis is now starting to take its toll Despite the recent period of growth, Croatia is facing serious competitiveness challenges

10 Croatia s Competitiveness Agenda Action Priorities Address corruption and weaknesses in political and legal institutions Ensure the sustainability of public finances Reform the rules and regulations for business Open up local markets to competition Create attractive conditions for foreign investors Strengthen the higher education system, financial markets, and airport/port infrastructure Use clusters as an organizing principle for upgrading workforce skills, infrastructure, and FDI attraction Support Croatian regions in their competitiveness efforts Strengthen economic cooperation in South-East Europe

11 The Neighborhood Southeastern Europe Economic coordination among neighboring countries can significantly enhance competitiveness

12 History of development of Interreg/territorial cooperation in Croatia EU Instruments in Croatia EU Instruments in Croatian Neighbouring Countries CARDS CROSS-BORDER CO-OPERATION INSTRUMENTS PHARE CARDS CBC PHARE CBC INTERREG III Hungary Italy Slovenia Hungary Italy Slovenia ERDF ISPA SAPARD 2006 IPA ?? ERDF 20??-2013 OBJECTIVE 3 IPA CBC Italy Serbia & Montenegro CARDS CBC Bosnia & Herzegovina OBJECTIVE 3 Hungary IPA CBC Serbia & Montenegro Bosnia & Herzegovina Slovenia Hungary Italy Slovenia Serbia & Montenegro CARDS ERDF IPA ?? 20??-2013 FROM INTERREG III TO EUROPEAN TERRITORIAL CO-OPERATION Bosnia & Herzegovina

13 INTERREG IIIB - CADSES A zone with amazing diversity due to the large number of participating countries A programme with great complexity 4 calls Tangible results

14 INTERREG III B CADSES Neighbourhood Programme Partners per country

15 Participation of Croatian partners in CADSES Prioritet 1 PROSTORNI RAZVOJ Prioritet 2 TRANSPORTNI SISTEMI Prioritet 3 PRIRODNA I KULTURNA BAŠTINA Prioritet 4 ZAŠTITA OKOLIŠA I UPRAVLJANJE RESURSIMA

16 Example of project: TEC-PARK.NET business co-operation between technological parks in Central Europe (A, I, H, Slo, Cro) Partners in Croatia: Tehnološki Park Zagreb d.o.o. Tehnološko-inovacijski centar Rijeka d.o.o. Total value of the project:

17 Transnational program SEE Croatia is one of 16 countries

18 What is new in transnational cooperation? Higher profile programmes Concrete projects with some investments Networking, plans and studies acceptable only if they prepare for concrete projects Some strategic projects, involving both regional and national authorities - may be inserted into the Programming document Not only open calls but also focused/thematic calls for projects

19 4 priority themes 1. Water management 2. Natural risk prevention 3. Improving accessibility 4. Creation of scientific and technological networks

20 External Borders of the EU New Policy context Neighbourhood & further enlargement Co-operation on borders with third countries financed through ENPI (European Neighbourhood and Partnership Instrument) Co-operation on borders with (potential) candidate countries financed through IPA (Instrument for Pre-Accession)

21 Involvement of non nonmember states It is the most crucial element of the SEES Programme Harmonization of IPA (Instrument for Pre Pre- Accession) funds with ERDF Application of the 10% rule for external partner countries

22 A little explanation of IPA (Instrument for Pre-accession Assistance) Integrating the 3 current pre-accession instruments + Turkey instrument plus pre-accession assistance for non-ccs (cf. CARDS) ca billion ( ) Institutional Building (IB) and preparation for EU fund management Component I: IB and TA Component II: Cross-border cooperation Component III, IV and V: fund-oriented III: Regional development (ERDF and CF) IV: Human resource development (ESF) V: Rural Development

23 IPA II component - Croatia UKUPN O RH OSTALI RH OSTALI RH OSTALI SLO - RH HU - RH JADRANSKI PROGRAM* RH - BIH RH - CG RH - RS SEE MEDITERAN UKUPNO:

24 SEE and Croatia Croatian financial allocation : 1,2 mil EUR Contact point in Croatia: MRDFWM Directorate for integrated regional development The result of 1st call: 9 projects

25 Initial Lessons Transnational co-operation is not easy! Challenging at all levels: programming, implementation, project level Transnational is much harder to justify than cross-border co-operation budget outcome reflects this reality A clear need to move forward, to change, to develop How? 4 key elements of added value: content, management, programme relationship and visibility

26 Content Direction of travel is already evident: move away from the pure studies and evaluation approach Need to continue progression: think strategic! Need to fix co-operation within the geography of the programme less interregional-type co-operation Develop multi-country solutions to multicountry problems in a regional context!

27 Programme Management Critical element of transnational cooperation Management relationships must be close, well-structured, and with mutual confidence

28 Programme Relationships Relationships between countries equally important Vital to build solid relationships and committee level, and among national contact points Those involved must work for the good of the programme, not the good of their country Positive advances inside CADSES in recent years already evident in programme preparation for the next period

29 Visibility The key issue binding the other elements together Political awareness Getting the message out about the importance of transnational co-operation Raising awareness and profile of transnational actions and explaining the successes to the right people

30 Conclusions Added value of transnational co-operation is not in doubt! No other approach has this much co-operation with this much funding Huge areas of potential in relation to programme content New programme have a direct link to the integration of non-member States and enlargement Possibilities for building links into convergence and competitiveness programmes

31 Thank you for your attention! Mr.sc. Marija Rajaković marija.rajakovic

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