The regional and urban dimension of Europe 2020

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1 ESPON Workshop The regional and urban dimension of Europe 2020 News on the implementation of the EUROPE 2020 Strategy Philippe Monfort DG for Regional Policy European Commission 1

2 Introduction June 2010 European Council approves the Europe 2020 strategy for smart, sustainable and inclusive growth. Cohesion Policy is mentioned as a key delivery mechanism for Europe

3 Introduction Debate and reflection is launched on how translate the objectives and targets of Europe 2020 into their counterpart at regional level. Regions can or should not reach all their national or the EU targets: Distance to the target may simply be too great. For some issues, it is not realistic or desirable that all regions reach the same target. For example, R&D is highly concentrated in part due to benefits of clustering research. 3

4 Introduction Accordingly Cohesion Policy programmes should: Select their investment priorities taking into account the starting position of a region or city in relation to the national 2020 targets; Identify the manner it can best respond to regional/local development needs... while at the same time contributing to 2020 targets. ESPON SIESTA is supposed to contribute to this reflection. 4

5 Europe 2020 pillars Smart Growth 1. Education 2. Innovation 3. Digital Society Sustainable Growth 1. Climate change 2. Biodiversity, sustainable development Inclusive growth 1. Employment 2. Poverty and exclusion 5

6 Europe 2020 News from the implementation of Europe Mixed... 6

7 Europe

8 Headline targets Headline targets Target 75% of the population aged should be employed % of population aged ,0 70,3 69,0 68,5 68,6 68,5 75 3% of the EU's GDP should be invested in R&D % of GDP 1,8 1,9 2,0 2,0 2,0.. 3 Greenhouse gas emissions reduced by 20% compared to 1990 Index 1990 = ,2 90,3 83,7 85,7 83, Share of renewable energy sources in final energy consumption should be increased to 20% % 10,4 11,6 12,5 13, Energy efficiency should improve by 20% tonnes of oil equivalent (TOE) Early leavers from education and training under 10% % of population aged ,8 14,8 14,3 14,0 13, % of years old should have completed a tertiary or equivalent education % of population aged ,0 31,0 32,2 33,5 34,6 35,8 40 Poverty should be reduced by lifting at least 20 million people out of the risk of poverty or social exclusion People at risk of poverty or social exclusion People living in households with very low work intensity People at risk of poverty after social transfers People severely materially deprived

9 Smart Growth 9

10 R&D 3% of the EU's GDP should be invested in R&D geo\time 2012 TARGET EU (28 countries) 2.02 : EU (27 countries) Belgium Bulgaria Czech Republic 1.85 : Denmark Germany Estonia Ireland 1.72 : Greece : : Spain France Croatia 0.76 : Italy Cyprus Latvia Lithuania Luxembourg Hungary Malta Netherlands Austria Poland Portugal Romania Slovenia Slovakia Finland Sweden United Kingdom 1.75 : 10

11 Tertiary education geo\time 2012 TARGET EU (28 countries) 35.7 : EU (27 countries) Belgium Bulgaria Czech Republic Denmark Germany Estonia Ireland Greece Spain France Croatia 23.7 : Italy Cyprus Latvia Lithuania Luxembourg Hungary Malta Netherlands Austria Poland Portugal Romania Slovenia Slovakia Finland Sweden United Kingdom 47.1 : 11

12 Early school leavers Early leavers from education and training under 10 geo\time 2011 TARGET EU (28 countries) 12.7 : EU (27 countries) Belgium Bulgaria Czech Republic Denmark Germany Estonia Ireland Greece Spain France Croatia 4.2 : Italy Cyprus Latvia Lithuania Luxembourg Hungary Malta Netherlands Austria Poland Portugal Romania Slovenia Slovakia Finland Sweden United Kingdom 13.5 : 12

13 Sustainable Growth 13

14 GHG emissions Europe 2020 target: Reduce GHG emissions by 10% compared to 2005 levels, % Changes with respect to Denmark Ireland Change in greenhouse gas emissions outside the Emmissions Trading Scheme, and Europe 2020 targets 2020 Target % change Distance to target Luxembourg Target already reached Reduced the distance but not yet reached their target Increased the distance to their target -17 Sweden Austria Finland Netherlands Source: EEA, provisional calculation method Target = Reduction in emissions United Kingdom Belgium Germany France Italy Spain -5 Cyprus -4 Greece Portugal Slovenia Malta 9 Czech Republic 10 Hungary Croatia Estonia 13 Slovakia Poland Lithuania 17 Target = Limit increase in emissions Latvia 19 Romania 20 Bulgaria 14

15 Renewable Energy 15

16 Inclusive growth 16

17 Employment geo\time 2012 TARGET EU (28 countries) 68.4 : EU (27 countries) Belgium Bulgaria Czech Republic Denmark Germany Estonia Ireland Greece Spain France Croatia 55.4 : Italy Cyprus Latvia Lithuania Luxembourg Hungary Malta Netherlands Austria Poland Portugal Romania Slovenia Slovakia Finland Sweden United Kingdom 74.2 : 17

18 At risk of poverty 18

19 The crisis 19

20 Impact of the crisis No clear geographical pattern Poor and rich regions have been negatively affected: Finland / Severozapaden Poor and rich regions have been resilient: Provence-Alpes-Côte d'azur / Poland 20

21 General GVT deficit (as % of EU GDP), EU-27 Source: Eurostat 21

22 General GVT deficit, per Member States (as % of EU GDP) Source: Eurostat 22

23 Public expenditure, public revenue (in mio EUR, prices 2005) and public deficit (as % of GDP) at subnational level, EU-27 Source: Eurostat 23

24 Public investment at sub-national levels, EU-27 (as % of EU GDP) Around 60% of total public investment in the EU-27 is carried out by subnational authorities Real public investment dropped by 5.8% in 2010, 6.5% in 2011 and 2.6% in Source: Eurostat 24

25 Change in public investment at sub-national level, , (percentage points) Between 2009 and 2012, public investment at subnational level increased in only eight Member States, albeit at a slower pace than in preceding years with the exception of Sweden Source: Eurostat 25

26 Conclusion Europe 2020 is an ambitious strategy Requires a different policy mix in countries (National Reform Programmes) Requires a different policy mix in regions (Cohesion Policy Programmes) 26

27 Conclusion Regional and local authorities can indeed make a key contribution to this strategy through the actions that fall within their responsibility. Involving regional/local levels in European policies can increase the efficiency of these policies, as highlighted by a number of recent studies. 27

28 Conclusion However, the crisis puts huge stress on subnational public finance? 28

29 Thank you for your attention 29

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