Chapter 3: A presentation of the contribution of the Structural Funds programmes

Chapter 3: A presentation of the contribution of the Structural Funds programmes

This chapter describes the contribution of the Structural Funds programmes to the implementation of the Baltic Sea Strategy. It is based on the reports provided by Managing Authorities of the different convergence, competitiveness and employment, as well as European territorial cooperation programmes covering the Baltic Sea Region.

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  by country and by programme for convergence and competitiveness programmes (an analytical summary by country followed by a technical sheet for each programme)
  
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  by strand and by programme for European territorial cooperation programmes (one technical sheet by programme)
  
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  by fund.
  

The complete version of the reports of programmes sent by Managing Authorities will be put on the DG REGIO website:

http://ec.europa.eu/regional_policy/cooperation/baltic/index_en.htm

3.1 Contributions by country and by programme for convergence and competitiveness areas

The ERDF Programme "Innovation and Knowledge", which includes a single priority plus technical assistance, is focusing on innovation, entrepreneurship, and the use of new technology.

The Managing Authority established in 2010 a simplified monitoring system where the regional growth centres can register ERDF and ESF projects relevant to the implementation of the EUSBSR, including categorisation of the related expenditure. The growth centres have received relevant guidance accompanying the request to register such projects from January 2010 onwards.

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  In the field of research and technological development, the ERDF is supporting "growth projects having research and innovation potential in the Baltic Sea Region" with €320 126.73;
  
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  In the environmental field, the ERDF is supporting the project "making the Baltic Sea Region a sustainable area – climate change, clusters and sustainable cities" with €581 664.00
  

Both projects are located in the Zealand region. The Managing Authority estimates that the two projects contribute indirectly to achieving the objectives of the EUSBSR, as they are neither initiated in view of the Baltic Sea Strategy nor specifically targeting the implementation of the Strategy.

Funding capacity of the Danish ERDF Programme "Innovation and Knowledge"	Total EU funding available (million €)	Decided projects (*) (million €)	Amount remaining available (million €)
Axis 1. Innovation and Knowledge	245.1	189.9	55.4
Axis 2. Technical Assistance	9.7	5.5	4.2
Total	254.8	195.4	59.6
(*) Decided projects include both projects that have been approved by the Managing Authority and projects that have been submitted to the Managing Authority for approval after selection by the regional Growth Forums. Exchange rate used: 7.45 DKK/EUR. Source: Managing Authority, 30 April 2011.

ERDF, CF and ESF programmes in Estonia: Implementation process

The Ministry of Foreign Affairs has set up an Inter-Ministerial working group under the coordination of the National Contact Point. Based on the discussions held in this group, screening of measures was performed. As a result, the Structural and Cohesion Fund measures, as well as measures funded from the European Agricultural Fund for Rural Development and the European Fisheries Fund, were divided into a) measures considerably contributing to the objectives of the EUSBSR Priority Areas, b) measures with indirect or less considerable contribution, and c) measures without direct relevance to the EUSBSR objectives. Concerning the measures of the first group, the results and contribution to the EUSBSR objectives were described in the 2010 implementation reports of the relevant Operational Programmes (OP) and Rural Development Plan, including financial data. Concerning the measures of the second group, their contribution was also described in the text part of the reports.

It does not appear that any particular changes, other than the reference to the Strategy, have been made to the programmes nor are there any additional structures set up to accommodate the Strategy. On a national level, it is reported that decisions on projects have already been made regarding circa 80% of the assistance foreseen for the period. From the Estonian point of view, the Strategy was completed only after the OPs were already being implemented, and the selection or evaluation criteria of projects to be co-financed were not modified as the Strategy was adopted. It was decided that the OP and Strategy are sufficiently aligned and modification of the selection or evaluation criteria is not necessary.

Examples of projects contributing to the EUSBSR

Estonian reports present a large variety of examples of implemented projects consistent with the Strategy.

Examples of indirect contribution include the clusters programme for enterprises, which supports involvement of cross-border foreign partners. In addition, there are a lot of activities to promote internationalisation of Estonian enterprises: Export Marketing Support, Support to Joint Marketing, Support to Participation in Foreign Fairs, Programme of Introducing Estonia as a Tourism Destination, Programme of Development of Tourism Information Systems, Support to Tourism Marketing for Businesses, Support to Marketing Activities of the Public and the Third Sectors, and Support to International Events and Conferences.

Projects contributing directly to the Strategy goals include many environmental projects – water, waste water, residual pollution clean-up, closure of landfills, energy savings, etc. – and transport projects. Estonian transport programmes contribute towards the Rail Baltica and Via Baltica Flagship Projects. Estonia has completed the railroad reconstruction works, such that a 120 km/h speed is now possible on the Estonian Rail Baltica section. In the road sector, works have commenced on the Pärnu section of the Via Baltica road. Projects of the Estonian Meteorological and Hydrological Institute also contribute directly to Priority Area 13: To become a leading region in maritime safety and security.

No problems are specifically reported, but it appears that 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 also the main difficulties to overcome in Estonia.

On October 14-15, 2010 the Annual Forum of the Strategy for the Baltic Sea Region was held in Tallinn, where the working group of horizontal themes also revised possibilities for the use of different structural resources to achieve the objectives of the Strategy for the Baltic Sea Region.

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

The possibility is left open to modify the criteria in the future and to try to have more coherent integration of the strategic planning (joint proposal by Estonia and Sweden) and of the delivery system in the future.

From the Commission’s point of view, the joint proposal by Estonia and Sweden and the preliminary actions taken to develop a more coherent integration of the Strategy at the national level when preparing the next programming period constitute significant attempts to improve the overall coherence of the strategic framework at EU, macro-regional and national levels, the functioning of the delivery system and the success in achieving the targeted results. During the current programming period, it would be recommended to start to make use of the possibility to carry out cooperation projects under the convergence objective programmes within the meaning of Article 37 6) b) of Regulation 1083/2006.

Estimated contribution of the EU convergence objective Operational Programmes in Estonia, to implementation of the EUSBSR objectives (more detailed information is provided in the presentation factsheet by ERDF and CF Operational Programmes in Estonia).

The Programme is co-funded by the European Regional Development Fund (€879 million) and the Cohesion Fund (€525 million) under the convergence objective. This forms approximately 41.3% of the total EU money invested in Estonia under cohesion policy 2007-13.

The OP for the Economic Environment aims at further improving the environment where economic competitiveness and productivity of enterprises can increase. This means that support is made available to a wide range of economic activities, from technology-intensive industries to tourism and development of creative industries (design, architecture etc.). The OP will support knowledge creation and dissemination in universities, research institutions and enterprises. In addition, investments are foreseen for transport infrastructure in the Estonian regions and for public transport networks. Trans-European Networks (TEN) connecting Estonia with neighbouring countries and the central part of Europe will be improved. In addition to physical infrastructure, the OP will support the development of Information Society services.

Contribution to the EUSBSR

The measures of this OP contribute directly and indirectly to the EUSBSR Priority Areas No 6, 7, 8, 11 and 12, because the activities designed to provide support have an impact on economic competitiveness and improve the overall quality of life and attractiveness of Estonia as one of the Baltic Sea coastal countries.

The most important measures contributing to the Strategy include:

Entrepreneurship: Support for Cluster Development, Start-up Estonia Programme, Programme of Technological Development Centres, Support to Research and Development Projects, National Business Loan Guarantees and Capital Loan Programme, Export Marketing Support, Export Development Support, Support to Joint Marketing, Support to Participation in Foreign Fairs, Supplementary Support Package to Improved Availability of Loan Capital to Businesses, National Export Credit Insurance Programme; Tourism: the Programme of Introducing Estonia as a Tourism Destination, the Programme of Development of Tourism Information Systems, Support to Tourism Marketing of Businesses, Support to Marketing Activities of the Public and the Third Sectors, Support to International Events and Conferences; and Research and higher education: Modernisation of Research Infrastructure of National Importance, Support to International Cooperation in R&D, Development of Research Centres of Excellence, Modernisation of the Learning Infrastructure of Applied Higher Education and Teacher Training, Modernisation of the Infrastructure of Learning and Work Environments of Research and Development Institutions and Institutions of Higher Education.

In information society, the OP supports the development of the information system required for the electronic use of IDs, improving access to fast internet connections.

In transport, the projects selected include reconstruction of Rail Baltica sections and the Pärnu detour road of Via Baltica.

Main Priority Areas of the Strategy	ERDF/CF contribution (€)
R&D (Priority Area no 7)	0
Innovation (Priority Area no 7)	30 060 027
Energy	0
Transport (Priority Area no 11):	299 816 774
Incl. ERDF	15 466 619
Incl. CF	284 350 155
Environment	0
Other: (Priority Area no 6, 8, 12)	1 453 758
Total ERDF+CF	1 067 643 948