Castilla-La Mancha 2007-2013 Programme under the Convergence Objective co-funded by the European Regional Development Fund (ERDF)
Vice-Presidency and Regional Ministry for Economy and Finance of the Autonomous Community of Castilla-La Mancha. Directorate General for Budget and European Funds. 2009
Contents Foreword...4 European Regional Policy...5 Introduction 6 European Regional Policy in 2007-2013 7 Objectives and Instruments 9 Policy Stages 11 Funds available 12 The contribution made by Regional Policy in Castilla-La Mancha in 2007-2013 13 The approach of the...16 Strategic References 17 The 19 Priority Axes...21 Priority Axis 1. Development of the Knowledge Economy...22 Research, technological development and innovation 23 Information society 25 Priority Axis 2. Entrepreneurship and Innovation Development...27 Priority Axis 3. Environment, Natural Surroundings, Water Resources and Risk Prevention...30 Priority Axis 4. Transport and Energy...33 Transport 34 Energy 36 Priority Axis 5. Urban and Local Sustainable Development...38 Priority Axis 6. Social Infrastructure...41 Priority Axis 7. Technical Assistance...44 Appendix. The s management of...46 Glossary of Terms...47
Foreword María Luisa Araujo Chamorro Vice-President and Regional Minister for Economy and Finance Castilla-La Mancha is aware of the European project and feels European. The European Regional Policy has immensely contributed to this strong sense of identification and belonging. European Funds have played a key role in the promotion of Castilla-La Mancha development. The European Regional Development Fund (ERDF) has helped modernise our infrastructures, drawing attention to our central location on the Iberian Peninsula or promoting R&D. Alongside this, Castilla-La Mancha is a European example of how well this solidarity effort is managed. When the new Member States, the Central and Eastern European countries, request help from the European Union to improve their management power, they are referred to Castilla-La Mancha. Our citizens are perhaps not fully aware of Castilla-La Mancha s international prestige in this respect. This is why we present this simplified report, which contains a summary of actions financed by this instrument that is intended to bring Europe and Regional Administration closer to citizens. Under the belief that European Regional Policy does not only multiply our development opportunities but also strengthen the Europeanism of the people from Castilla-La Mancha, I invite you to get insight into the increasingly fruitful relationship that exists among Castilla-La Mancha and the European Union. 4
European Regional Policy 5
European Regional Policy Introduction European Regional Policy or Cohesion Policy is the prime example of solidarity within the European Union (EU). Its objective is to reduce divergences in development levels of the different regions, making this the basic element in achieving a greater internal level of economic and social cohesion. This policy has been gaining importance in the EU which has seen, along with an increase in Member States, an increase in the differences between development levels and the wealth of the different regions and territories. Indeed, the European Regional Development Fund (ERDF) was created in 1975, shortly after the entry of Ireland, the UK and Denmark (in 1973), which caused a considerable increase in the interregional disparities in the then European Economic Community. Such imbalances became more noticeable in the 80s, due to entry of new Member States, thus making more necessary a regional policy capable of promoting cohesion across regions. It is along these lines that the different texts that expand and define the scope of the European Union are declared. Firstly, in 1986, the European Single Act set up the objective of economic and social cohesion as an indispensable feature for creating a single market. Next, the 1992 Treaty on the European Union converted the objective of economic and social cohesion into a fundamental principle of the European Union, considering that: In order to promote a harmonious development of the whole of the community, this will develop and continue its action, with the aim of reinforcing economic and social cohesion. The Community will specifically set out to reduce the differences between development levels of the different regions, and the backwardness of the less fortunate regions and islands, including rural areas. (Article 158 of the TEU). European Regional Policy has made significant progress since it came about, contributing to convergence of per capita income across European regions. Nevertheless, there are still regional disparities in the EU, which have been deepened as a result of the most recent enlargement. Today the EU has 27 Member States with a population of 493 million. There are 268 regions, 25% of which have per capita Gross Domestic Product (GDP) lower than the EU- 27 average. The European Regional Policy s challenge is to correct these disparities making economic and social cohesion effective. 6
European Regional Policy European Regional Policy in 2007-2013 January 1st 2007 saw the beginning of a new programming period for the European Structural Funds, the main instrument of European Regional Policy. This programming period will end on December 31st 2013. The new Cohesion Policy strategy for 2007-2013 is included in the Community Strategic Guidelines on Cohesion, which contain the following priorities: Implications of including the renewed Lisbon Strategy into Cohesion Policy improve the EU s appeal as a place to work and invest, promote innovation, business initiative and the knowledge economy, create more and better employment. These priorities are founded on the renewed Lisbon Strategy for growth and employment. Thus, the emphasis is placed on a cohesion policy: More focused on knowledge and innovation. Directed toward achieving sustained and sustainable development in line with the objectives laid down in the Gothenburg European Council and the Kyoto Summit. Capable of maintaining the principle of gender equality and non discrimination for reasons of sex, race, age etc. A Cohesion Policy more focused on knowledge, research, innovation and human capital Sustainable development should be pursued (economic, social and environmental dimension) The Member States and regions should pursue the principle of equal opportunities between women and men, which, like the environment, is a transversal principle in EU policies All kinds of discrimination due to sex, race or ethnicity, religion or conviction, disability, age, or sexual orientation should be avoided The new Cohesion Policy is based on the renewed Lisbon Strategy for growth and employment: it emphasises growth and employment and shares with the Lisbon Agenda priority spheres such as boosting knowledge and innovation and promoting entrepreneurial initiative. To achieve the mentioned priorities, the Community Strategic Guidelines establish a series of guidelines or action lines that affect different determining factors of growth processes and employment generation (availability of infrastructures, capacity to create and absorb new technologies, availability of human capital, etc.). 7
European Regional Policy Priorities and actions of Cohesion Policy in 2007-2013 To make Europe and its regions more appealing places to invest and work Improve knowledge and innovation in favour of growth More and better jobs Expand and improve transport infrastructures Strengthen synergies between protecting Environment and growth Energy efficiency,use of renewable energies and safe energy Increase and direct better investments into research and technological development Facilitate innovation and promote business initiative Promote the Information Society for everyone Improve access to funding Attract more people to the labour market and modernise social protection systems Improve the adaptability of workers and enterprises and the flexibility of the labour market Increase investment in human capital Administrative capacity Help to maintain a healthy active population 8
European Regional Policy Objectives and Instruments European Regional Policy is based on a programming according to objectives. In the new programming period 2007-2013 such objectives are the following: Convergence, Regional competitiveness and Employment and Territorial Cooperation. The Convergence objective promotes growth-enhancing conditions and factors leading to real convergence for the least-developed Member States and regions. This objective concerns regions with per capita GDP at less than 75 % of the Community average and the so-called Phasing-Out regions. These are regions that due to the statistical effect of most recent EU enlargement have per capita GDP above 75% of the EU-25 average but below 75% of the EU-15 average. The Regional competitiveness and Employment objective aims to increase regional competitiveness and employment, through boosting innovation, entrepreneurship or worker adaptability. The idea of this objective is to provide regions with the appropriate tools to prevent the emergence of new imbalances that may appear as a consequence of rapid economic and social changes. The regions included in the Regional competitiveness and Employment objective are those that are not concerned by the Convergence objective. Some of them are Phasing-in regions, that is, regions where per capita GDP has become larger than 75% of the EU-15 average in the 2000-2006 period. COHESION POLICY 2007-2013: GEOGRAPHICAL EGIBILITY OBJECTIVES INSTRUMENTS ELEGIBILITY CRITERIA Convergence objective Regional Competitiveness and Employment objective Territorial Cooperation objective European Regional Development Fund and European Social Fund Cohesion Fund European Regional Development Fund and European Social Fund European Regional Development Fund Regions with pc GDP < 75% EU- 25 Phasing-Out Regions: pc GDP > 75% EU-25 but less than 75% of the EU-15 average Member States with pc GNP < 90% of the EU-25 average Regions not concerned by the Convergence objective Transborder regions and transnational cooperation regions 9
European Regional Policy OBJECTIVES Convergence objective Regional Competitiveness and Employment objective COHESION POLICY 2007-2013. FUNDING PRIORITIES European Regional Development Fund European Social Fund Cohesion Fund European Regional Development Fund European Social Fund PRIORITIES Modernisation and diversification of economic structures and safeguarding or creation of sustainable employment Adapting workers and enterprises: access to employment for job searchers, inactive people, women and emigrants; social inclusion and fighting discrimination in the labour market; strengthening human capital Trans-European Transport and Environmental networks (including environmentally friendly energy and transport projects) Innovation and knowledge economy; environment and risk prevention; access to transport and telecommunications services Adapting workers and enterprises: access to employment for job searchers, inactive people, women and emigrants; social inclusion and fighting discrimination in the labour market; strengthening human capital Lastly, the Territorial Cooperation objective aims to strengthen balanced territorial development in the European Union through transborder (between countries that share borders), transnational and interregional cooperation. The Structural Funds are the instruments that permit to achieve the aforementioned objectives. Such funds are the following: the European Regional Development Fund (ERDF), the European Social Fund (ESF) and the Cohesion Fund (CF). The purpose of the European Regional Development Fund is to strengthen economic and social cohesion in the EU by correcting imbalances between its regions. This fund finances direct aid to investments in companies to create sustainable jobs, infrastructures (linked notably to research and innovation, telecommunications, environment, energy and transport), financial instruments to support regional and local development and to foster cooperation between towns and regions and technical assistance measures. The ERDF can intervene in the three objectives of regional policy. The European Social Fund aims to improve employment and job opportunities in the European Union by providing support in the following areas: adapting workers and enterprises; access to employment for job seekers, the unemployed, women and migrants; social integration of disadvantaged people and combating discrimination in the job market; strengthening human capital. It intervenes in the framework of the Convergence and the Regional Competitiveness and Employment objectives. In turn, the Cohesion Fund focuses its interventions on two spheres: the environment and transport infrastructures. Unlike other Structural Funds, its management falls on the States. As such, the Member States with per capita GNP below 90% of the EU average may benefit from this fund, being Spain one of such countries. The Cohesion Fund supports actions in the framework of the Convergence objective. Territorial cooperation objective European Regional Development Fund Development of cross-border economic, social and environmental activities through joint strategies for sustainable territorial development; establisment and development of transnational cooperation; reinforcement the effectiveness of regional policy by encouraging regional and local authorities to form networks and exchange experience 10
European Regional Policy Policy Stages The starting point in applying the European Cohesion Policy is given by the Community Strategic Guidelines on Cohesion (economic, social and territorial). Next, each Member State prepares a National Strategic Reference Framework (NSRF), in line with the strategic guidelines, over the course of an ongoing dialogue with the Commission. The Spanish NSRF, developed by the Spanish Government with the support of the National Reform Programme, defines the national and regional priorities. It ensures their coherence with the Community Strategic Guidelines on Cohesion, in order to successfully meet the Cohesion Policy s objectives. The main objective of the NSRF is to contribute to the cohesion and the harmonious development of the European Union through a general and sustainable growth process of the Spanish State, the Autonomous Communities and the Cities. Most s are of regional nature (they only affect one Autonomous Community) but some of them have a multi-regional character (they concern more than one Autonomous Community). All of them, excepting the of the Cohesion Fund-ERDF, concern a single fund (the ERDF or the ESF). The Spanish NSRF envisages all the s through which European Regional Policy is applied in this country. The s are documents submitted by each Member State and approved by the European Commission. They include a development strategy that contains a consistent set of priorities that require the assistance of one of the Structural Funds to be carried out. In the case of Spain, there are 23 s co-funded by the European Regional Development Fund (one of them is the European Regional Development Fund - Cohesion Fund), 22 co-funded by the European Social Fund and 8 under the Territorial Cooperation objective. STAGES OF THE COHESION POLICY EUROPEAN COMMISSION Community Strategic Guidelines Common framework with Cohesion Policy s objectives, priorities, and strategic lines STATES National Strategic Reference Framework Defines national and regional priorities on cohesion REGIONAL GOVERNMENTS Social and Economic Agents s Projects (European Regional Development Fund and European Social Fund) OPERATIONAL PROGRAMMES (ERDF and ESF) Subject to approval by the European Commission 11
European Regional Policy Funds Available In the period 2007-2013, cohesion policy will benefit from 347,410 million Euros. The division by objectives is the following: 81.5% for Convergence, 16% for Regional competitiveness and Employment and 2.5% for Territorial Cooperation. Concerning their use, firstly, the Commission proceeds by giving indicative annual sums per Member State, which depend notably on the following criteria: eligible population, national wealth, regional wealth and unemployment rates. In the case of Spain, 35,217.27 million Euros have been allocated (10.1% of total funds). Spain and the Cohesion Policy of the EU: Financial allocation (Million EUR) Convergence objective Regional Competitiveness and Employment objective Cohesion fund 3,543 Convergence 21,053 Phasing-Out 1,583 Phasing-In 4,955 Regional Competitiveness and Employment 3,524 European Territorial Cooperation objective 559 TOTAL 35,217 More than 70% of the funds allocated to Spain (25,155.75 million euros) are devoted to Spanish regions in the framework of the Convergence objective. That is, regions with per capita GDP lower than 75% of the EU average. Castilla-La Mancha is one of these Spanish regions, along with Andalusia, Extremadura and Galicia. 12
European Regional Policy The contribution made by Regional Policy in Castilla-La Mancha in 2007-2013 Castilla-La Mancha has been receiving European Funds since Spain joined the European Union in 1987. Moreover, the volume of funds received is significant: Castilla-La Mancha is the second Spanish region that benefits from highest resources in per capita terms. These funds have supported the Region s progress in several ways. On the one hand, it has witnessed an increase in per capita GDP which has helped to bridge the gap between Castilla-La Mancha and surrounding countries (in 1995, per capita GDP was equal to 64.6% of the EU-15 average while in 2004 such percentage reached 69.9%). On the other hand, there have been improvements in key economic and social factors of sustainable development (high employment generation, increase in the number of enterprises and progress in the Information Society).. Financial Plan (Euros) Axes 1 Development of the Knowledge Economy Community Funding Public National Funding Community and Public National Funding 143,939,389 35,984,859 179,924,248 The use of European Funds has contributed to the development of Castilla-La Mancha, mainly through creating infrastructures needed for territorial cohesion, supporting entrepreneurial initiative and promoting the productive network. 2 Entrepreneurial Development and Innovation 3 Environment, natural surroundings, water resources and risk prevention 247,020,925 105,866,112 352,887,037 304,725,821 130,596,784 435,322,605 4 Transport and Energy 533,278,994 287,150,229 820,429,223 We must continue progressing in this converging path with more prosperous EU countries, by effectively responding to the social and economic challenges faced by Castilla-La Mancha. A more innovative and entrepreneurial economy must be promoted. We must also keep on fostering participation of women and vulnerable groups in the labour market, bearing in mind the importance of continuing with the improvement in general education level. As far as the environment, is concerned, we must carry on correcting water deficits and promoting a higher consumption of clean energies. To face up to these challenges, Castilla-La Mancha commits itself to a new growth model coherent with the possibilities that the global economy offers. The new model will help the region to be more competitive through investments in human capital, knowledge and technology. Moreover, an innovative and entrepreneurial push is at the heart of the new model. At the same time, we must maintain and reinforce social cohesion and the environment. 5 Local and Urban Development 127,391,636 54,596,412 181,988,048 6 Social Infrastructure 76,528,439 19,132,111 95,660,550 7 Technical Assistance 6,508,690 1,627,176 8,135,866 Total 1,439,393,894 634,953,683 2,074,347,577 13
European Regional Policy In this framework, the s mission is to serve as an instrument for reaching the competitiveness, cohesion and environmental sustainability objectives defined by the Castilla-La Mancha Government in collaboration with the social agents of the region. As far as financial resources are concerned, Community investment through the regional ERDF amounts to around 1,439 million Euros (8% of available resources for all Spanish regions). This implies that Castilla-La Mancha ranks fourth in the list of Spanish regions that benefit from greatest volume of financial assistance in the framework of Regional ERDF s. Another 316 million Euros must be added to this amount, originating from the ERDF Multiregional s ( Knowledge-based Economy, Research, Development and Innovation for and by Enterprises - Technology Fund, Cohesion Fund-ERDF and Technical Assistance ). Hence, total investment for Castilla-La Mancha through the European Regional Development Fund amounts to 1,755 million Euros. Alonside this, investments under the European Social Fund in the region amount to around 555 million Euros. Financial allocation of Regional ERDF s (regional shares) La Rioja Melilla Ceuta Navarre Cantabria Balearic Islands Aragon Basque Country Madrid Asturias Murcia Catalonia Castile and Leon Canary Islands Valencia Castilla-La Mancha Extremadura Galicia Andalusia 0.18 0.24 0.25 0.26 0.50 0.60 0.91 1.34 1.88 2.21 2.92 3.79 4.56 5.69 7.40 8.03 8.82 12.23 38.18 0 5 10 15 20 25 30 35 40 45 14
European Regional Policy Community funding through the. Indicative financial allocations breakdown (1,439.3 million Euros) Type of Assistance Non-repayable assistance 63.1 % Loan, interest rebates, guarantees 1.2% Risk Capital 3.5% 71.4% of s financial resources are devoted to reach the Lisbon Objectives. Such percentage is above the threshold established by the European Commission. Other types of funding 32.3% Rural Areas 30% Territory Urban 40% Scarcely or very scarcely populated areas 20% Mountainous 10% Non contributing 28.6% Contribution to the Lisbon Objectives Contributing 71.4% 15
The approach of the 16
The approach of the Strategic References The defines the regional policy co-funded by the European Regional Development Fund, taking into account the objectives and guidelines of the community, national and regional policies. At EU level, the key reference is the revised Lisbon Strategy, developed through the strategic policy guidelines 2005-2008. These highlight the importance of innovation and human capital in order to achieve competitive and sustainable growth. In the national sphere, the Spanish National Reform Programme considers the policy shift resulting from the relaunching of the Lisbon Strategy. The Programme set out the objective of achieving full convergence in per capita income in 2010. Moreover, in such year the Spanish employment rate should be above the EU average. In order to reach such objectives, the programme establishes eight strategic axes. With the substratum of the National Reform Programme and the Commission s Strategic Guidelines on Cohesion 2007-2013, Spain drew up the National Strategic Reference Framework (NSRF). This framework sets out the investment priorities for programmes to be supported by Structural Funds over the seven-year period 2007-13. Regarding ERDF actions under the Convergence objective, the Spanish NSRF is structured according seven priority axes. Spanish NSRF: Priority axes for European Regional Development Fund actions in Convergence regions 1. Development of the Knowledge Economy The Spanish National Reform Programme. Strategic Axes Strengthening Macroeconomic and Budget Stability The Strategic Infrastructure and Transport Plan (SPIT) and the WATER programme Increase and improve human capital The R&D and Innovation strategy (INGENIO 2010) More competition, better regulation Public Administration and Competitiveness Labour market and Social Dialogue The Enterprise Development Plan 2. Entrepreneurial Development and Innovation 3. Environment, natural surroundings, water resources and risk prevention 4. Transport and Energy 5. Urban and Local Development 6. Social Infrastructure 7. Technical Assistance 17
The approach of the Being aware of the new global dimension of the world economy, the Government of Castilla- La Mancha laid out its objectives and action lines as regards regional development policy in the Castilla-La Mancha Development and Competitiveness Pact 2005-2010. The final purpose of the pact, which was signed by the regional social agents and the Administration in 2005, is to increase regional competitiveness. The agreement established four action axes: 1. Improve entrepreneurial capacity. 2. Increase activity and employment rates as well as human capital. 3. Boost R&D and Innovation and spreading of ICTs. 4. Reinforce infrastructures and environmental quality. The Castilla-La Mancha Development and Competitiveness Pact 2005-2010 is an instrument devoted to place Castillala Mancha among the most advanced regions. To make ends meet, the Pact is committed to prompt competitiveness through research, technological development, innovation and the introduction of new technologies. Following the social consensus and collaboration policy between the regional Administration and social agents of the region, the Castilla-La Mancha Strategic Framework was signed in 2006 in order to apply the Structural Funds for 2007-2013. This framework identifies the objectives to be achieved and the actions to be developed. To finish off the works carried out, at the end of 2007 an agreement was reached between all of the authorities concerned with regional policy (regional, national and community): the. This document, as previously mentioned, defines the regional policy co-funded by the European Regional Development Fund. 18
The approach of the The The Castilla-La Mancha Programme under the Convergence objective, co-funded by the European Regional Development Fund, is aimed at achieving the following general objectives: 1.- Promote an increase in per capita GDP thus allowing the region to converge with the EU-25 average. 2.- Foster labour productivity. 3.- Prompt an increase in activity and employment rates, particularly female rates so as to enhance their participation in the labour market. These targets are broken down into strategic lines and intermediate objectives. The Operational Programme firmly opts for improvement of external competitiveness (more outer region activity) and a complete introduction of the knowledge economy. Such objectives are set paying particular attention to the fundamental purposes of employment creation and development of basic infrastructure (including social and environmental infrastructures). The Operational Programme supports the development of a new regional economic model grounded on an innovative and entrepreneurial push. THE CASTILLA-LA MANCHA 2007-2013 ERDF OPERATIONAL PROGRAMME: ACTION LINES Improving external competitiveness Complete introduction of the Knowledge Economy More and better jobs Development of infrastructures (Environment, transport, energy and social) INTERMEDIATE OBJECTIVES Improve trading channels Encourage access to funding Promote entrepreneurial initiative Improve integration of innovation support services Boost telecommunications infrastructures and encourage the use of ICT Boost quality employment Increase female participation in the labour market Encourage equal opportunities and combat discrimination in the job market Increase and improve human capital Promote infrastructures that improve the quality of energy supply, water and the natural surroundings Improve intraregional accessibility levels Boost the use of more efficient energy sources and the promotion of renewable energy sources Increase educational, health and public transport services infrastructures 19
The approach of the The is structured according to seven Priority axes. Each one has been assigned certain objectives and considers priority themes of action susceptible to being funded by the European Regional Development Fund. In addition to this, strategic quantitative indicators have been identified for each Axis, reporting the initial value of each indicator and the one that is intended to be reached by 2010 (2010 Objective) and 2013 (2013 Objective). Therefore, such indicators will permit to confirm the degree to which objectives are reached. The rest of the document gives a detailed description of each Axis: its objectives and the priority themes of action that will guide the interventions funded with this. In order to strengthen transition of Castilla-La Mancha towards the set of European leading regions: The firmly commits itself to promote a knowledge based society, innovation and entrepreneurship. The Programme will safeguard the environment and natural surroundings, paying attention to management of regional water resources and to prevention of natural risks. The is founded on the objectives laid down in the Gothenburg European Council, the Kyoto Summit and the national and regional commitments to combat climate change, incorporating the Lisbon Strategy s vision of development (economic, social, and environmental). 20
Priority Axis 1. Development of the Knowledge Economy 21
Priority Axes Axis 1. Development of the Knowledge Economy Priority Axis 1. Development of the Knowledge Economy The European Union and other major economies have been transformed by the forces of technology, globalization, entrepreneurship and innovation. The pace of globalization picked up rapidly during the fourth quarter of the twentieth century, giving rise to an economic framework where human capital, diffusion of new technologies and product and process innovations become fundamental factor for economic growth. Such elements shape what is now known as the Knowledge Economy, Information Economy and even New Economy, which are related to an emerging Information Society. Recognising such changes, the Government of Castilla-La Mancha has firmly committed itself to boosting the region s knowledge economy. The Development and Competitiveness Pact is declared, which is the backbone of the regional policy until 2010, stresses the strategic importance of promoting R&D&I (research, technological development and innovation) and the usage of ICT (information and communication technologies) amongst the population. The plans of the Pact as regards R&D&I and the knowledge society are being developed by the Regional Plan for Scientific Research, Technological Development and Innovation (PRINCET). The Plan has highlighted as objectives the increase in R&D&I (more resources and more innovative enterprises), the coordination of agents of the Regional Innovation System and the promotion of an innovative culture. The echoes the regional objectives a regards the knowledge economy through its first Priority Axis. It considers two spheres of action: Research, technological development and innovation (R&D&I) Indicadores Information de Mujeres society en I+D en (digital EJC sobre and el total e-commerce de gap, e-administration, e-health, e-learning). 32,84% 43,2% 50% género Tipo Indicadores estratégicos Gastos en I+D/PIB Indicadores Gasto I+D del sector empresas e IPSFL/PIB empleados en I+D en EJC Valor Actual 0,41% 0,18% Objetivo 2010 1,37% We present below the provisions of the ERDF for Castilla-La Mancha in the new programming period in order to achieve each one of these aspects of the knowledge economy. 2,0% 1,1% Objetivo 2013 2,5% 22
Priority Axes Axis 1. Development of the Knowledge Economy Research, technological development and innovation Given the strategic nature of R&D&I to sustain and strengthen economic and social progress in Castilla-La Mancha, the 2007-2013 ERDF Regional has placed considerable emphasis on R&D&I. The Programme envisages ambitious objectives regarding the increase in regional R&D&I expenditure (public and private) which should be reached by 2013. To make ends meet, the Programme suggests to focus on: the volume of innovative activity in the region, private sector participation (particularly small and medium sized enterprises, SMEs), Research, technological development and innovation : the objectives Increase the critical mass of innovative activity in the region through improvements of human capital and scientific and technological infrastructures Optimisation of connections of the knowledge generation system with the production system and between Regional Innovation System agents Promote a greater involvement of the private sector (supporting SMEs R&D&I and fostering business innovation) interrelation of all of the region s innovative agents. Foster research and innovation culture among citizens Improve access to funding for enterprises engaged in research, technological development and innovation projects Make R&D&I a key enterprise competitive factor 23
Priority Axes Axis 1. Development of the Knowledge Economy The envisages priority themes in the field of R&D&I. In coherence with regional R&D&I policy, small and medium enterprises (SMEs) are the main beneficiaries of actions. Priority themes in the field of Research, technological development and innovation Research and Technological Development activities in research centres Strengthening of the regional Research and Technological Development system using assistance for developing research and development activities in public research and technological centres Increase and optimise human and physical resources for R&D&I activities (through better coordination of the agents involved, of the scientific and technological infrastructures, etc.) R&D and Innovation infrastructures and specific training centres The creation of R&D and technological innovation centres of national reference Creation and/or expansion of the network of Scientific-Technological Parks in Castilla-La Mancha Provision of scientific-technological equipment for public or non-profit research centres Technology transfer and improvement of cooperation networks (SMEs) Through the promotion of technology transfer between Universities and enterprises Assistance for R&D (SMEs) Assistance to technological innovation projects as well as technical feasibility studies prior to these activities, particularly aimed at SMEs, through Technological Centres and Local Innovation Centres Investment in enterprises directly related to R&D&I Assistance directed to strengthen the region s innovative sector (particularly SMEs) and the creation of technology based firms Improve financial access to R&D activities (through the development and strengthening of risk capital risk in Castilla-La Mancha) 24
Priority Axes Axis 1. Development of the Knowledge Economy Information society The sets the objective of extending the use of ICT and the information society among all regional agents, focusing attention on small and medium sized enterprises and social groups in danger of experiencing the digital gap. It is also acknowledged that the Administrations should be a predominant driving force. The ERDF for Castilla-La Mancha commits to a strong progress amongst the general population, paying particular attention to women (it sets the objective that, by 2013, 65% of women in the region will be using Internet). As regards firms, emphasis is laid on the use of ICT by micro-enterprises. In order to fulfil such objectives, the Operational Programme considers three priority themes. These are the following: 1) telephone infrastructures; 2) services and applications for citizens; 3) services and applications for small and medium enterprises. The latter are particularly relevant. Information society : the objectives Reducing the digital gap by promoting an increasing use of ICT and the extension of the information society among the population of Castilla-La Mancha Application of ICT as the optimum way of improving the quality of all types of processes: production, education, research and administration Establish a digital culture, mainly through informative, educational and promotional actions Encourage services and applications, not only for citizens, but also directed toward small and medium sized enterprises (so that they improve their buying and selling power, training opportunities, etc.) 25
Priority Axes Axis 1. Development of the Knowledge Economy Priority themes in the field of Information society Telephone infrastructures Ensure widespread of Broadband Promote mobile services and networks and the launch of 3G networks (UMTS) Infrastructures for digital terrestrial television Services and applications for citizens Development and promotion of the Network of Public Internet Centres in towns in Castilla-La Mancha, preferably in rural areas Promoting ICT in the health and welfare sector Promoting modernisation, digitalisation and connectivity of the Regional Administration Services and applications for SMEs Encouraging the creation and development of enterprises in the ICT sector, through technology transfer networks, scientific and technological parks, technological centres, etc. Actions for detecting and bringing about the demand for ICT services for SMEs and for boosting the supply of the demanded services Increase the use of PCs, Internet, E-commerce in all of the micro-enterprises and SMEs 26
Priority Axis 2. Entrepreneurship and Innovation Development 27
Priority Axes Axis 2. Entrepreneurship and Innovation Development Priority Axis 2. Entrepreneurship and Innovation Development Entrepreneurship is a key driving force for innovation, competitiveness and growth. It is a combination of initiative (availability to innovate, take risks, take advantage of opportunities) and capacity (skill, professionalism) of businessmen and women in the market economy. A greater initiative and capacity means better growth possibilities. More entrepreneurial regions are more willing to introduce innovation, through the creation of new enterprises or through existing ones. In turn, this positively affects firm entry (creation) and employment growth. The considers a series of interventions that are grouped into three priority themes. On the one hand, the assistance given to SMEs for encouraging the use of environmental friendly products and production processes. On the other hand, the support given to other business investments. Lastly, the Programme considers other measures aiming to encourage SMEs research, innovation and entrepreneurial culture. In Europe the willingness to undertake business ventures is limited in comparison with the United States. In Spain and Castilla-La Mancha, the lack of business development is more noticeable than in Europe. However it must be pointed out that, in recent years, Castilla- La Mancha has experienced considerable entrepreneurial dynamism, especially from 2002 onwards. That is highlighted, for instance, by the high value recorded by the annual rate of firm creation. The support given to entrepreneurial development is one of the axes around which the current strategy of the Castilla-La Mancha Government is built. The Development and Competitiveness Pact recognises that increasing the ratio firms/population is of paramount importance to improve labour and capital productivity (hence, to increase competitiveness). This is why the support to the creation, expansion and internationalization of firms takes on a predominant role in the Pact. In line with these regional strategic guidelines, the second Priority Axis of the Castilla-La Mancha 2007-2013 ERDF set the following objectives: to improve entrepreneurial competitiveness (more innovation, more technology based firms, internationalisation, entrepreneurial cooperation, etc) to foster entrepreneurial initiative in society (transversal objective). 28
Priority Axes Axis 2. Entrepreneurship and Innovation Development Priority axis 2. Entrepreneurship and Innovation Development Objectives Improve entrepreneurial competitiveness Boost entrepreneurial initiative in Castilla-La Mancha s community (transversal objective) Priority themes Supporting SMEs to encourage the use of products and production processes that are environmentally friendly Other business investments Encourage SMEs research, innovation and entrepreneurial culture Promote competitiveness and investment incentives Improve entrepreneurial competitiveness and boost the entrepreneurial culture Actions devoted to promote population s entrepreneurial initiatives Improve technological capacity and innovation Introduction of environmental quality management systems Prompt endogenous capital and cooperation Promote internationalisation Improve funding possibilities (outright grants, loans and capital shares) Actions in support of innovation in small and medium sized enterprises (financial engineering, support services, etc.) Supporting the take off of new firms Support infrastructures for the small and medium sized enterprise 29
Priority Axis 3. Environment, Natural Surroundings, Water Resources and Risk Prevention 30
Priority Axes Axis 3. Environment, Natural Surroundings, Water Resources and Risk Prevention Priority Axis 3. Environment, Natural Surroundings, Water Resources and Risk Prevention The environment is a central priority for Castilla-La Mancha. Economic development in itself is not enough, it is also necessary to achieve a sustainable and environmental friendly development process. The legacy left to future generations of Castilla-La Mancha partly depends on the capacity to preserve and improve our environmental capital. In the short term, this is essential for developing activities with a high potential in the economy, such as tourism activities. We cannot ignore that, given water deficits suffered by Castilla-La Mancha, the environment is of a strategic nature for the region, as water is a fundamental factor for socioeconomic development. This view is recognised by the Development and Competitiveness Pact. It aims to promote sustainable development in the region, avoiding negative environmental impacts or an inefficient management of renewable resources. Therefore, it is suggested that progress is needed two parallel fields: supply and wastewater treatment. Taking all of this into account, the environmental policy, which already took on a significant role in the previous programming period, it still a major figure in the 2007-2013 period. In coherence with the State and the Regional environmental policies, he Castilla-La Mancha 2007-2013 ERDF the objectives of this priority are to improve water management and waste treatment, to protect biodiversity and the environment and to prevent risks. In order to reach these objectives, interventions are concentrated on priority themes related to water management (drinkable water distribution and wastewater treatment), waste management (domestic and industrial), protection of biodiversity and the environment, risk prevention and promotion of wild resources. One of the Region s strategic priorities is overcoming water deficits. Objectives of Axis 3 Environment, Natural Surroundings, Water Resources and Risk Prevention Development of basic water infrastructures (for towns and economic activities) Provide basic water drainage infrastructures to towns Promote the availability of infrastructures that guarantee quality water supply, thus covering the water needs of the region (derived from water shortages and population growth) Proper management of domestic or industrial waste Maintain and restore the environment when necessary, as a requirement to guarantee the quality of the life of the population Carry out actions aimed at defending, restoring and improving the water environment, rehabilitating, protecting and regenerating river surroundings Protect biodiversity, restore habitats and species, and regenerate the environment Prevention of risks, flooding and freshets, restore the public water domain, fight against erosion 31
Priority Axes Axis 3. Environment, Natural Surroundings, Water Resources and Risk Prevention Priority themes of Axis 3 Environment, Natural Surroundings, Water Resources and Risk Prevention Managing and treating water Works to bring drinkable water management and distribution infrastructures to secondary nuclei Water treatment actions Treating Waste Construction of infrastructures (recycling centres, treatment plants, controlled dumps, etc.) Purchasing of equipment Awareness campaigns Protecting biodiversity and the environment Risk Prevention Restoration of habitats and species Construction of infrastructures for conserving species Land acquisitions for protecting and regenerating the environment Development of infrastructures for environmental education, increasing awareness of natural resources, etc. Fire protecting infrastructures Actions aimed at preventing risks derived from riverbed freshets, measures to combat erosion, etc. Promoting Natural Wealth Creation of Environmental Education Centres Creation of necessary interpretive infrastructures to contribute to awareness of geological and geomorphological resources. Development of infrastructures, installations, equipment and activities for conserving flora and fauna on site, nurseries for autochthonous species of flora, resource centres, nature classrooms, etc. Systems for interpretation and information and other equipment for public use, in natural spaces, road infrastructure, etc. Actions for improving habitats and populations of wild fauna 32
Priority Axis 4. Transport and Energy 33
Priority Axes Axis 4. Transport and Energy Priority Axis 4. Transport and Energy Transport Transport infrastructures are of a strategic nature for economic activity: they boost the economy, facilitate the development of productive activities and foster regional competition. Likewise, they facilitate territorial cohesion, allowing the appropriate interconnection of population nuclei, displacement for labour reasons, etc. Castilla-La Mancha must continue progressing in the creation and maintenance of transversal communication infrastructures. In view of this necessity, the Development and Competitiveness Pact 2005-2010 highlights the importance of infrastructure policy and establishes, as basic priorities in this field, the need to boost high speed motorways, improve levels of interconnection between different areas, optimise existing roads and promote public transport. The Operational recognises the challenge of supporting regional development through transport infrastructures, establishing the following objectives: Improvement of accessibility (mainly intraregional). Promotion of transportation means alternative to road transport. Multimodal transport. Contribute to environmental sustainability, promoting clean urban transport. Promotion of new technologies into the transport sector and development intelligent transport systems. The priority themes are concerned with construction and improvement of railway infrastructures, motorways and regional roads. Moreover, the actions will support the development of multimodal transport and clean urban transport systems. Transport : the objectives Improvement of accessibility (mainly intraregional) Promotion of transportation means alternative to road transport Actions focused on multimodal transport Contribute to environmental sustainability, promoting clean urban transport Promotion of new technologies into the transport sector and development intelligent transport systems 34
Priority Axes Axis 4. Transport and Energy Transport : Priority themes Railway Services Motorways and local/ regional roads Multimodal transport Intelligent transportation systems Encouraging clean urban transportation Development and Implementation of a Level Crossing Removal Programme Co-funding of High Speed railway tracks Construction of particular installations and investments to improve infrastructures Construction of toll roads and motorways Conditioning of the existing autonomous network Construction of town diversions in large urban nuclei Carrying out prior research and provision of multimodal transport platforms Infrastructures and development of intelligent transportation systems Substitution of fuel for natural gas, liquefied petroleum gas, hydrogen etc. Changing and replacement, if applicable, of engines to permit theuse of biofuels Use of advanced systems for fleet managment that reduce specific consumption 35
Priority Axes Axis 4. Transport and Energy Achieving an efficient and high quality energy supply, with a substantial participation of renewable energy sources, is at the core of a sustainable development process. Castilla-La Mancha has tackled the challenge fighting against climate change whilst guaranteeing energy supply. The European Union is strongly committed to foster energy efficiency and the use of renewable energies. As far as the Spanish Government is concerned, such EU s objectives have not only been adopted but they are also considered to be of special relevance. In Castilla-La Mancha, the Development and Competitiveness Pact 2005-2010 is determined to promote energy diversification and efficiency as well as to guarantee quality supply. The s objectives in the field of energy focus on two main aspects: Energy Creation of infrastructures needed to obtain clean energy from renewable energy sources. Promotion of energy efficiency. Three priority themes have been envisaged to fulfil such objectives. Two of them are related to renewable energies (solar and biomass) while the third concerns energy efficiency. Energy : the objectives Support and incentives for obtaining energy from renewable sources Increase the use of clean energies in order to contribute to the improvement of the environment Promotion of energy efficiency 36
Priority Axes Axis 4. Transport and Energy Energy : Priority themes Renewable energy: Solar Create research centres and develop technology related to concentrated photovoltaic solar energy CPV) Promote market development of products and services related to CPV as well as the location of auxiliary enterprises dealing with CPV Promote the use of solar energy Renewable energy: Biomass Speed up and increase the use of biomass Promote market development of products and services related to technology for using biomass in the domestic sector Energy efficiency, cogeneration, energy control Foster the use of technologies that favour energy efficiency (in final consumption), cogeneration and improvements in demand management 37
Priority Axis 5. Urban and Local Sustainable Development 38
Priority Axes Axis 5. Urban and Local Sustainable Development Priority Axis 5. Urban and Local Sustainable Development Generally speaking, actions co-financed by the European Regional Development Fund take place in the local sphere. Accordingly, such actions integrate local development as a transversal principle. Moreover, there exists a particular axes solely devoted to promote local and urban sustainable development, thus allowing particular territorial needs to be addressed. In Castilla-La Mancha, there are two phenomena with a particular impact on urban and local development. On the one hand, the fact that the area is essentially rural is an important aspect. The population is widely dispersed, although it is somewhat concentrated in certain urban centres (development engines). On the other hand, tourism activities have great potential, although it has been little exploited as yet. Exploiting tourism opens the door to numerous possibilities for development. Axis 5 of the Castilla-La Mancha ERDF gives considerable support to the territory s socio-economic development process. Given its relevance in order to strengthen territorial cohesion, the share of funds allocated to this Axis in Castilla-La Mancha has witnessed a remarkable increase in the new programming period (2007-2013). The general objective established in Axis 5 (Urban and Local Sustainable Development) is to increase competitiveness and to attain a more balanced development between the economically stronger cities and the rest of the urban network. To that end, the following objectives have been set out: To boost economic development, employment (in equal opportunity terms between men and women) and social inclusion. To enhance environmental recovery and conservation. To boost business initiative, local employment and community development. To restore the environment, reurbanise industrial sites and preserve and develop historical and cultural heritage. To reinforce cohesion, promoting social, cultural and economic integration. The Urban and Local Sustainable Development Axis has three priority themes: sector-specific projects for tourism and culture and urban and local regeneration projects. Priority themes of Axis 5 Urban and local sustainable development To increase competitiveness and to attain a more balanced development between the economically stronger cities and the rest of the urban network through actions which promote business initiative, local employment and community development To promote employment and equality between men and women Environmental recovery and conservation To restore the environment and to preserve and develop historical and cultural heritage To reinforce cohesion by promoting social, cultural and economic integration 39
Priority Axes Axis 5. Urban and Local Sustainable Development Priority themes of Axis 5 Urban and local sustainable development Other assistance for improving tourism services Developing and supporting tourism Supporting local entities tourism promotion Plans and Programmes Cultural heritage protection and preservation Action in the network of archaeology sites and roman roads Preserving and providing equipment in the grid of provincial museums Preserving civil and religious monuments Building and equipping cultural centres and fitting out conference centres and auditoriums Integrated projects for urban and rural regeneration Small and medium-sized municipalities: regeneration projects (information society promotion, economic development, etc.) and boosting citizen involvement in managing public matters Larger-sized municipalities: creating an innovative initiative ( URBANA ) which promotes integrated sustainable development programmes in Spanish cities with over 50,000 inhabitants and provincial capitals (improving competition, internal cohesion in inter-city connections and integration of most vulnerable groups). It will give continuity to the URBAN Community Initiative that aimed at: formulating and applying innovative strategies for the economic and social regeneration of small and medium-sized cities or large city neighbourhoods in difficulty; improving and exchanging knowledge and experience in relation to urban regeneration and sustainable development in the affected areas. 40
Priority Axis 6. Social Infrastructure 41
Priority Axes Axis 6. Social Infrastructure Priority Axis 6. Social Infrastructure Social infrastructures are an indispensable element of sustainable development since they guarantee that progressive increase in the quality of life reaches every population group. The faces the challenge of improving and adapting social infrastructure through intervention focussed on four spheres: education, health, child care and coverage groups with social exclusion risk. The objectives and actions established in the ERDF Programme for Castilla-La Mancha 2007-2013 are strictly linked to the Development and Competitiveness Pact. This points to a series of actions needed to improve social welfare and citizen quality of life, such as creating children s education centres and reinforcing the educational infrastructure. That is why the establishes the following general objectives regarding social infrastructure: To guarantee social cohesion both in urban and rural areas, fundamentally in the educational and health spheres. To support women access to the job market through the provision of infrastructures favourable to reach a balance between work and family life. Social infrastructure : the objectives To support groups with social exclusion risk, such as the elderly, immigrants and individuals with disabilities. The actions set out are framed within four priority themes: infrastructure for education, health, childcare and other infrastructures (devoted to cover groups with exclusion risk). In quantitative terms, most of the help shall be allocated to educational infrastructure. This highlights the decisive commitment of Castilla-La Mancha s Government to reduce early school leaving. To ensure social cohesion To boost infrastructures which foster the balance between work and family life To support groups with social exclusion risk 42
Priority Axes Axis 6. Social Infrastructure Priority themes of Axis 6 Social infrastructure Infrastructure: education Improve, create and widen educational supply and equipments Infrastructure: health Restoring and building health and clinical specialities centres to improve the coverage of the regional health system Childcare infrastructure Investing into Childcare day centres Other social infrastructure Provision of infrastructures that favour integration of groups at social risk. Centres for: the elderly, immigrants, individuals with disabilities, children, abused individuals, etc. (all of which fall into the day centre category) 43
Priority Axis 7. Technical Assistance 44
Priority Axes Axis 7. Technical Assistance Priority Axis 7. Technical Assistance The new programming period sets out a number of obligations for control, follow-up, evaluation, etc., which will help us reach an adequate use of the resources available in the. To that end, there must be sufficient capacity to safeguard the coherence of procedures in all of the bodies involved in developing the programme. In response to these demands, the last Axis of the European includes regulations relating to technical assistance, with the aim of: Supporting adherence to community obligations (in relation to management systms, control and evaluation). Strengthening programme management (coordinating and rationalising resources and improving tools for planning, following up and managing the Operational Programme). Boosting the study of issues related to the Structural Funds. Ensuring that information about the widely spread (content, results, beneficiaries and co-funded operations). Objectives To support adherence to community obligations To strengthen programme management To boost the study of issues related to the Structural Funds To spread information about the and the Cohesion Policy The objectives set out in the Axis will be developed through public advice contracts and service assistance. The activities to be developed are channelled towards supporting management, attempting to maximise community value. There are two priority themes. First, the actions related to properly managing the programming, the follow up and the control of the programmed actions. And second, the evaluation, studies, conferences, seminars and publicity for the (and any actions thought necessary to meet the objectives). Priority themes Preparation, implementation, follow-up and inspection To guarantee the correct implementation, follow up, evaluation and control of the aimed at ensuring that the expected objectives are met Evaluation and studies, information and communication Developing the evaluations demanded by community regulations (articles 47 and 48 of the Regulations (EC) 1083 / 200 Carrying out sector-specific studies, prospective and feasibility studies, studies on macroeconomics, etc. required to ensure that the Operational Programme develops properly Inform, rise awareness and increase transparency about the European Union s Cohesion Policy 45
Appendix. The Castilla-La Mancha 2007-2013 ERDF s management of There are three authorities involved in the s management: a Managing Authority, a Certifying Authority and an Audit Authority. The Spanish State has designated the Ministry of Economy and the Treasury, through the State Sub-division for ERDF Administration, as Managing Authority. As such, it is responsible of all programmes co-funded by the European Regional Development Fund. The Managing Authority deals with ensuring that the management and control system functions correctly in addition to generally coordinating the system. In Spain, the Certifying Authority is the State Sub-division for Certification and Payments in the State Department for Community Funds in the Ministry of Economy and the Treasury. It is responsible for periodically presenting statements (for expenses and payment requests) and making checks and balances to projects financed by the OP, etc. Finally, the Audit Authority is the State s Public Accounts Department (IGAE), a branch of the Ministry of Economy and the Treasury. The Public Accounts Department in Castilla-La Mancha (Intervención General de la Comunidad Autónoma de Castilla-La Mancha) shares this function with the IGAE within its sphere of action. The Audit Authority functions include carrying out the audits for the OP s management and control systems, communicating confirmed irregularities in the expenses with other Authorities (where applicable), etc. requirements are met; etc. To that end, it has a functional structure in which two services are distinguished: European Regional Development Fund and Cohesion Fund Service. It has three tasks: to approve transactions, to follow actions co-funded by the programme and to supervise the. Certifying Service. The tasks carried out include: processing approved operational transactions, drawing up refund requests and following up the payments received. Castilla-La Mancha has strengthened the management structure of its ERDF OP by setting up a Follow Up Committee at the beginning of 2008. It is chaired by the Ministry of Economy and the Treasury s Directorate General for Community Funds, under the co-presidency of the Directorate General for Budget and Community Funds in the Castilla-La Mancha Government Vice-Presidency and Regional Ministry for Economy and Finance of the Autonomous Community of Castilla-La Mancha. In addition, the EU regulations on Structural Funds state that The Member State or the managing authority may entrust the management and implementation of a part of an operational programme to one or more intermediate bodies, designated by the Member State or the managing authority. In case of the Operational two intermediate bodies have been appointed (both attached to the Vice-Presidency and Regional Ministry for Economy and Finance of the Autonomous Community of Castilla-La Mancha): Directorate General for Budget and European Funds. Sociedad para el Desarrollo Industrial de Castilla-La Mancha, S.A. (SODICAMAN), responsible for the Global Grant (see Glossary of terms). The intermediate body Directorate General Budget and Community Funds has adopted the following functions: to contribute to evaluating the ; to ensure that its computerised systems are compatible with the computer system shared with all of the European Regional Development Fund s s in Spain; to supply the Managing Authority with all necessary information; to ensure that the information and publicity 46