Introduction 5 Chapter 1: a description of the organisational structure set up for the implementation of the Strategy 6

In order to ensure an efficient and successful implementation of the EUSBSR in Lithuania, a National Commission for the Supervision of the Implementation of the European Union Strategy for the Baltic Sea Region was established by Decision No 133 of 10 February 2010 of the Lithuanian Government “On the Implementation and Coordination of the European Union Strategy for the Baltic Sea Region in Lithuania”.

Following this evaluation, it is generally considered that the programmes and the Strategy are sufficiently aligned. One of the recommendations was to introduce a new specific selection criterion for projects falling under measures considered as making a direct contribution to the EUSBSR. However, to date this recommendation has not been taken up.

Several of the projects highlighted by the Lithuanian authorities fall within the environment sector and include cases such as the establishment of a centre for hydrogen energy technologies, the construction of a combined heat and power plant using renewable energy sources and the renovation and development of the infrastructure for water supply and waste water management.

Moreover, projects in the field of technological innovation (creation of a prototype for a 9 GHz bandwidth optical sampling oscilloscope (OS9G)) and in transport (expansion of the Kaunas Airport passenger terminal bringing it in line with Schengen requirements) are mentioned as contributing to the EUSBSR.

Main problems encountered

No problems are specifically reported. However, coordinating the development and the implementation of the process between NCPs, Ministries and PACs, political involvement, the delivery mechanism and alignment of funding sources are most likely the main difficulties to be overcome.

On 31 May 2010 in Vilnius, the Ministry of Finance together with the Swedish Agency for Economic and Regional Growth (Tillväxtverket) and the Swedish International Development Cooperation Agency (SIDA) organised a meeting “Implementation of the EU Strategy for the Baltic Sea Region”. Representatives from Lithuania, Latvia, Sweden, Finland and Germany directly involved in EU structural assistance and the implementation of the EUSBSR took part and various aspects of the EUSBSR funding were discussed. During this meeting, an informal Network for the Funding of the Strategy for the Baltic Sea Region was established.

Main lessons learned and what should be done in the future to improve links between programmes and the EUSBSR

In July 2010, the Lithuanian Government adopted a decision on the compatibility of EU financial measures and programmes with the objectives and priorities of the EUSBSR in relation to the next programming period.

In this context, a protocol decision was adopted by which authorities responsible for the administration of relevant EU financial measures are charged, when preparing the programming documents for the new period (2014–20), with ensuring a close alignment with the EUSBSR objectives and Priority Areas set out in its Action Plan. This should be done through the establishment of project selection criteria in relation to the EUSBSR at the level of all programmes which will grant priority to projects contributing to the implementation of the EUSBSR (given the project complies with other relevant project requirements).

Additionally, these provisions will apply not only to mainstream programmes but also to other EU financial measures and programmes such as the European territorial cooperation objective, Lithuanian rural development and fisheries programmes, as well as the Trans-European Energy Network (TEN-E) and the Trans-European Transport Network programmes, etc., that can make a significant contribution to the implementation of the Strategy.

The Promotion of Cohesion Operational Programme is co-funded by the European Regional Development Fund (€1 475 million) and the Cohesion Fund (€1 172 million) under the convergence objective.

Looking at the OP in the light of the EUSBSR, the absolute majority of projects contribute to the implementation of Priority Area 5 of the Action Plan (to mitigate and adapt to climate change). To a certain extent, a contribution is also made to Priority Area 12 (to maintain and reinforce the attractiveness of the Baltic Sea Region in particular through education, youth, tourism, culture and health).

The Economic Growth Operational Programme is co-funded by the European Regional Development Fund (€1 966 million) and the Cohesion Fund (€1 132 million) under the convergence objective.

The OP aims at speeding up economic growth in the long term so as to close the development gap between Lithuania and the EU average. The main objectives are to increase the share of high value added businesses, boost productivity, particularly by creating favourable conditions for innovation and small and medium-sized enterprises (SMEs), and improve the efficiency of the economic infrastructure.

Contribution to the EUSBSR

Looking at the OP in the light of the EUSBSR, the biggest contribution is made to the following Priority Areas of the EUSBSR Action Plan: to exploit the full potential of the Region in research and innovation (Priority Area 7), implementing the Small Business Act: to promote entrepreneurship, strengthen SMEs and increase the efficient use of human resources (Priority Area 8), and to improve internal and external transport links (Priority Area 11).

By 31 December 2010, a total number of 823 projects directly contributing to the implementation of the EUSBSR and to which €1 263.42 million were allocated have been implemented. The majority of projects (375) are being implemented in the business sector and are aimed at: finding foreign partners and expanding businesses into foreign markets (such as the countries belonging to the Commonwealth of Independent States); trade promotion; attraction of foreign direct investment and capital; and enhancement and improvement of the economic image of Lithuania in foreign markets with the aim of attracting more investment into the region, etc.

Although a large share of projects is implemented in the business sector, the largest projects are nevertheless implemented in the fields of transport, research and technological development (RTD) and innovation. Implementation of transport-related projects includes improvement, modernisation and development of road, rail, sea and international airport infrastructure, development of transport links with other EU Member States, and enhancing the safety of traffic users, etc. By the end of 2010, funding was given to one project which is part of the “Via Baltica” priority project provided for in the EUSBSR Action Plan under the Flagship initiative “Accomplish the development of the agreed priority transport infrastructures”.

In the field of RTD and innovation, the implementation of projects is related to improvement of the international competitiveness of the country’s industry, development of the infrastructure for carrying out world-class scientific and applied research of international importance, setting up of EU and world-class laboratories, manufacture of new innovative products, creation of clusters, development in the region, etc. Funding is also allocated to energy projects that are implemented with the aim of modernising power transmission systems and transformer stations and constructing new power lines, thus enabling successful implementation of power links with other countries (for example, Sweden), and to environmental projects aimed at the modernisation of heating systems and increased reliability and efficiency of heating supply.

The biggest contribution to the implementation of the EUSBSR is made within Priority Axis 5 (Development of the Trans-European Transport Networks), followed by Priority Axis 4 (Basic economic infrastructure) and Priority Axis 1 (Scientific research and technological development for the competitiveness and growth of the economy).

The implementation process of the EUSBSR in Poland is well under way. Although the feeling of ownership varies among the stakeholders, the EUSBSR is generally perceived as a necessary and important instrument that has the potential to help the Region prosper and address its needs through growing macro-regional cooperation. Despite the unquestionable vitality of the Region manifesting itself in a number of regional initiatives, only the EUSBSR covers such a wide range of crucial issues while using the possibilities created by the EU. A variety of different actors including governments, inter-governmental organisations, regional and local authorities as well as private organisations makes the EUSBSR even more valuable and tailored to the needs we are to respond to. A number of important events referring to the Strategy took place in Poland, among them the VASAB Annual Conference “Integrated Approach to Spatial Development of Europe – Meaning of Territorial Cohesion” and the Second Working Meeting on the Implementation of the EUSBSR (February 2011). The most important upcoming events in 2011 will be the Second Annual Forum of the EUSBSR together with the Baltic Development Forum Summit.

Although there are no major obstacles in the implementation process experienced by Polish Priority Area Coordinators and Flagship Project Leaders, overall progress varies depending on the specific Priority Area or Flagship Project. Some projects are already progressing very well (e.g. "A network of centres of excellence for maritime training" – 13.5), others due to the recent changes in the leadership are in a start-up phase (e.g. "Deeper cooperation on environmental technology to create new business opportunities" – 8.2). On the other hand, the project 8.6 "Make the Baltic Sea a leader in design" has not been initiated yet due to financial problems.

The EUSBSR has triggered regular meetings between the Ministry of Foreign Affairs and Polish stakeholders and allowed for a current exchange of information in working contacts. The meetings resulted in better awareness of the National Contact Point about the initiatives taken on the ground. Participation in international meetings on the EUSBSR helps to have a better understanding of numerous initiatives taking place in the Baltic Sea Region. The cooperation with the Ministry of Regional Development, responsible for coordination of cohesion policy implementation, has been intensified.

Despite the generally positive impression that the EUSBSR is already giving, there are lessons that can be drawn. There is the feeling we need to ensure sustained high-level political pressure on the EUSBSR and stronger ownership on all levels, including National Contact Points. What is needed is stronger clarification of the responsibilities on all levels. Financing of the projects also needs further attention.

Apart from the meetings with all Polish stakeholders, separate meetings with each of the stakeholders, with the MRD’s participation, are necessary for focusing on specific problems. The MFA has started the procedure of setting up an inter-ministerial commission on the EUSBSR.

The review process of the EUSBSR should tackle the following:

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  improvement of the management process;
  
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  further defining the roles of the stakeholders on all levels;
  
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  clear monitoring system and targets;
  
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  strengthening the coordination between policies on national and EU level influencing the macro-region.
  

Within all Operational Programmes (OP) within the National Strategic Reference Framework in the areas related to the Baltic Sea Strategy, there were 28 559 financing agreements signed for €31 billion worth of EU co-financing, which means that about 80% of the total value of agreements signed contributing to the realisation of the Strategy.

Strategy-related projects financed by the ERDF and Cohesion Fund concerned: transport infrastructure – €12.8 billion (42%), R&D and innovation – €5.1 billion (16%), environment – €4.3 billion (14%), education, tourism and health – €4 billion (13%), entrepreneurship, SMEs and human capital – €3.7 billion (12%) and energy – €0.8 billion (3%).