cohesion policy … · future cohesion policy - modernising erdf, cf and esf+ european semester...

COHESION POLICY

investments in 2021-2027European SemesterCountry report Annex D

Latvia

AGENDA

1. Introduction

2. Achievements of Cohesion policy in Latvia

3. Future of Cohesion policy: set-up, budgets, thematic concentration

4. Commission’s priorities for 2021-2027 Cohesion policy funding in Latvia

5. Conclusions and next steps

European Semester country report, Cohesion policy investments in 2021-2027

Stronger articulation of challenges identified in the European Semester in Cohesion Policy funding

o Stronger links

• Policy analysis guides Funds’ investments

• Funds’ investments deliver policy results

o Benefits

• More consistency between different policies

• Higher impact and better outreach to stakeholders

• Transparency and accountability

o Implications for European Semester deliverables

• Focus 2019 EC country analysis on regional and territorial disparities …

• … leading to relevant investment needs and guidance


Achievements Cohesion policy in Latvia

• EU co-funded investments contribute to economic growth and employment:research, technological development and innovation, business competitiveness,sustainable transport, employment and labour mobility, etc.

• Impact 2014-2020 investments : + 2.7 % of GDP

• Share EU funding of public investment : 60 % (2015-2017)

• GDP per capita : 50 % EU average in 2005,

65 % in 2016!

More information: https://cohesiondata.ec.europa.eu/countries/LV#achievements


https://cohesiondata.ec.europa.eu/countries/LV#achievements

Achievements of Cohesion Policy in Latvia in 2014 -2020


Financial data*

Selected operations: 81 %

Expenditures beneficiaries: 23 %

Paid by EC** : 30 %

* SFC 2014 January 2019

** EU share incl. advance payments

More information:

https://cohesiondata.ec.europa.eu/countries/LV#

achievements

Results (end of 2017)

Support approved for 3 111 businesses, of which 382 start-ups,

generating 665 new jobs

Over 40 ERDF-supported research projects commercialised

Greenhouse gas emissions reduced by 8 570 tonnes of CO2

More than 300 km regional roads (2018) constructed connecting to

TEN-T

Incentives for employment to over 70 000 unemployed, incl.

almost 19 000 young people (<25 years old)

Over 11 848 persons with disabilities involved in active inclusion

and employment fostering measures

https://cohesiondata.ec.europa.eu/countries/LV#achievements

Examples Cohesion Policy projects in Latvia

Academic centre Torņakalns, University of Latvia

• House of Science opened in January 2019

• Facilitates cross-disciplinary collaboration

• “Smart" building: highly energy efficient

Miera dārzs revitalisation

• Renovation of pathways, playgrounds and sport facilities


Examples Cohesion Policy projects in Latvia

ESF grants for social entrepreneurs

• EUR 5 000 – 20 000 grants

• 200 social enterprises

• 217 disadvantaged unemployed

• Law on Social Enterpreneurship


Future Cohesion policy - ArchitectureEuropean Semester country report, Cohesion policy investments in 2021-2027

Common Provisions

Regulation (CPR)

Covers 7 funds: ERDF,

CF, ESF+, EMFF, AMIF,

ISF and BMVI

Joint rules for the

delivery of funds

Code of Conduct on

partnership remains in

force

ERDF/CF

regulation

Specific objectives

and thematic

concentration

requirements

ETC regulation

Territorial co-

operation including

external assistance

ESF+ regulation

Enhanced scope (ESF, FEAD, YEI,

EaSI, Health)

Implementing the European Pillar

of Social Rights

Specific objectives and thematic

concentration requirements

Policy reforms, social innovation &

transnational cooperation

Future Cohesion policy - Modernising ERDF, CF and ESF+


Modernising

investment

Focus on smart, low carbon and inclusive growth

Link to European Semester

Enabling conditions

Flexible

Mid-term review

Adapt to emergingcircumstances, e.g.:

₋ migration

₋ changes in economydue to globalisation,technology, anddemography

Simpler

Easier and faster programming

Substantial reduction ofadministrative cost

Single audit principle andproportionality for low riskprogrammes

Policy objectives


Former objectives: simplification and consolidation into 5 Policy Objectives:

1. A smarter Europe: innovative & smart economic transformation

2. A greener, low-carbon Europe: energy transition, 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

Horizontal issues: PartnershipAdministrative capacity building, Cooperation outside the programme area

Future of Cohesion policy

Future of Cohesion policyERDF / ESF+ Thematic Concentration in Latvia


Total allocations Cohesion policy (euro) : 4 789 millionERDF (incl. EUR 55 mln Interreg) : 2 628 millionCohesion Fund : 1 424 million

ESF+ : 736 million

Thematic concentration ERDFPO 1 Innovation & smart industrial transformation) : 35 %P0 2 Clean energy, climate change, green & blue investments, etc. : 30 %

Sustainable urban development : ≥ 6%

Thematic concentration ESF+Country Specific Recommendations: “an adequate amount”, which may includeSocial inclusion : ≥ 25% Material deprivation : ≥ 2%

Youth employment (if NEETs rate (15-29 y.o.) > 2019 EU average) : ≥ 10%


Investment-relevant challenges in Latvia

Industry: low innovation performance with high resource intensity and lack of

cooperation and integration in global value chains

Insufficient use of digitalisation opportunities and low digital proficiency within

SMEs, few skilled human resources and skills mismatches

Economy remains resource and energy-intensive

Transport infrastructure far below the EU average standards for network

coverage, carbon emissions and safety issues

Large territorial disparities in income and employment opportunities, strong

urban-rural divide in economic and social development


Investment-relevant challenges in Latvia

Working age population is shrinking

Labour and skills shortages are growing, while participation in adult learning is

low, and education and training system lacks efficiency

Income inequality, poverty and social exclusion are high, especially for people

with disabilities, the elderly and the unemployed

Weak health outcomes, and limited access to affordable healthcare and long-

term care


Commission priorities for 2021-2027 Cohesion policy funding in Latvia – Priority investment areas

Policy objective 1: A smarter Europe

Innovative and smart industrial transformation

• Research and innovation capacities: more innovative companies, collaborative research

between universities and businesses

• Growth and competitiveness of SMEs : international actviities, global value chain, productivity,

industrial clusters, Baltic Sea networks, start-ups

• Digitalisation for citizens, companies and governments: ICT uptake in SMEs, (cross-border)

e-services, open and big data, e-government,

• Skills for smart specialisation, industrial transition and entrepreneurship:

management skills, innovation, technological transfer



Policy objective 2: A low carbon and greener Europe

Clean and fair energy transition, green and blue investment, circular economy, climate

adaptation and risk prevention

• Energy efficiency (public buildings, housing, businesses) and renewable energy

• Transition to a circular economy: waste prevention, reuse and recycling

• Climate change adaptation, risk prevention, disaster resilience: coastal erosion and floods

impact the economy and infrastructure,

• Promote sustainable water management: completing drinking water and waste water

treatment schemes, primarily in rural areas



Policy objective 3: A more connected Europe

Mobility and regional information & communication technology connectivity

• Sustainable, climate resilient, intelligent, secure and intermodal Trans-European Networks for

transport and their accessibility: core and comprehensive road network to meet EU standards,

incl. road safety, core rail network, cross-border mobility

• Sustainable multimodal urban mobility

• Digital connectivity eliminating VHC networks gaps in rural and less populated areas



Policy objective 4: A more social Europe – Implementing the European Pillar of Social Rights

Employment

• Improve access to employment and promote the social economy

• Enhance the workability of workforce and support safe and healthy working lives

• Strengthen the capacity of social partners

Education and training

• Improve equal access, quality, effectiveness and labour market relevance

• Promote life-long learning and flexible upskilling and reskilling

• Better anticipating change and new skills requirements



Policy objective 4: A more social Europe

Implementing the European Pillar of Social Rights

Social inclusion and health

• Foster active inclusion and improve employability of vulnerable groups

• Address material deprivation through food and basic material assistance

• Reduce housing deprivation and improve access to social housing

• Enhance equal and timely access to social, healthcare and long-term care services



Policy objective 5: A Europe closer to citizens

Sustainable, integrated development of urban, rural and coastal areas and local

initiatives

• Address the territorial disparities and the demographic challenges

• Improve attractiveness urban areas and business environment, create links with the

functional urban areas

• Combine adaptation and quality of life measures with growth-enhancing investments

• Reinforce the capacity of local authorities


Commission priorities 2021-2027 Cohesion policy funding in Latvia

Factors for effective delivery (1/2)

o Social innovation and social experimentation;

o Administrative capacity building: roadmap

o Conflict-of-interest, fraud and corruption;

o Financial instruments and InvestEU

o Simplification of requirements and shorter procedures

o Capacity of beneficiaries and intermediate bodies for project management;

o Capacity of social partners and of civil society organisations;

o Public procurement.

Conclusion and next steps

o Commission ready to start informal dialogue, important to make as much progress as possible in 2019 and 2020

o Engage from the start in dialogue with all relevant stakeholders (Code of Conduct!)

o Member State programming plans by end of June 2019 (roadmap)

o Technical seminar with Managing Authorities (t.b.c.)

o Joint objective to adopt all Partnership Agreements and programmes by end of 2020


Latvia’s views and Q&A


cohesion policy … · future cohesion policy - modernising erdf, cf and esf+ european semester...

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