Post 2006 - FAQ's
Q1 What will happen after the present Objective One Programme?
Q2 Has Merthyr Tydfil qualified for a Convergence Programme?
Q3 Will the Convergence Programme be the same as the current Objective One Programme?
Q4 What is the Lisbon Agenda?
Q5 What are the next steps?
Q1. What will happen after the present Objective One Programme?
The 25 EU Member States agreed the 2007-13 EU budget on 16 December 2005 at Brussels European Council. This will need to be endorsed by the European Parliament but this is expected to be positive. The agreement of the budget has also set out the framework for its use, including:
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The confirmation of West Wales & The Valleys as eligible for support from a Convergence programme – this is the EU economic regeneration programme which will follow on from the Objective One Programme.
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Q2. Has Merthyr Tydfil qualified for a Convergence Programme?
Yes. The criteria for identifying regions for Convergence programmes are the same as for the present Objective One programmes ie any region with less than 75% of the EU average GVA.
Q3. Will the Convergence Programme be the same as the current Objective One Programme?
Although the exact details have yet to be finalised it is already clear that there will be a number of differences between this Objective One Programme and the Convergence Programme:
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It will consist only of European Regional Development Fund (ERDF) and the European Social Fund (ESF) – the rural and fisheries funds will become part of national programmes. |
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It looks as though the split between ERDF and ESF could be as high as 50:50. |
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It will need to clearly show how it is contributing to the Lisbon Agenda – this will mean a significant increase in emphasis on competitiveness, innovation and a more knowledge based economy. |
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There will be a target of 60% of the Convergence Programme to meet the objectives of the Lisbon Agenda. The nature of these targets has yet to be finalised. |
Q4. What is the Lisbon Agenda?
European and UK economic regeneration policy is increasingly being driven by the Lisbon Agenda where the EU set itself the goal of becoming the most competitive and dynamic knowledge based economy in the world. This means a significant increase in emphasis on competitiveness, innovation and a more knowledge based economy and the explicit targeting of investment on outcomes that will drive this.
It has been written by the EU and Member States in response to intensified competition from around the world and the issue of Europe’s ageing population and low birth rate. It has two aims for Europe:
Generate stronger, sustainable economic growth
Create more and better jobs
Its mission statement is “to make the EU the most dynamic and competitive knowledge-based economy in the world … by 2010.”
Stronger Economic Growth will be achieved by:
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- Improving competitiveness and raising productivity |
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- Using knowledge to gain competitive advantage |
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- Increasing and improving investment in research & development |
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- Facilitating innovation, the use of information and communication technologies and the sustainable use of resources |
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- Making Europe more attractive to business |
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- Building infrastructure for a competitive economy |
More and Better Jobs will be achieved by:
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- Encouraging more people into the workforce |
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- Increasing the adaptability of workers and flexibility of labour markets |
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- Investing in human capital through better education and skills
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This strategy informs EU and Member State approaches to economic strategy - including business regulation and employment policies – as well as national, regional and local economic development strategies.
www.europe.eu.int/comm/regional_policy/themes/lisbon/lisbon_en.htm
Q5. What are the next steps?
Although the timetable for the next steps has yet to be published – it will need to be agreed by the Austrian Presidency – it looks as though it will be as follows:
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Until 22 May 2006 – consultation on the National Strategic Reference Framework, which sets out the UK approach to EU Cohesion Policy. |
DTI have coordinated the drafting of the National Strategic Reference Framework with ODPM this includes a section on West Wales and the Valleys as one of the two convergence regions in the UK.