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Estonia's investment needs in 2014-2020 (24-05-2013)
- 1. Estonia's investment needsin 2014-2020 Commission Services' analysis 24.05.2013, Tallinn
- 2. Content: I. Background andtimetable II. Common strategic framework, Partnership Agreement and programmes III. Economic situation and challenges IV. European Semester 2012-Recommendations for Estonia V. Funding priorities VI. Succes factors Content - Slide 2/27
- 3. Background Commission's analysis broughttogether in Position Paper for negotiations of the 2014-2020 European Structural and Investment Funds Pro-active approach: early stage information on Commission services' position on 2014-20 priorities to Member States Framework for dialogue between Commission services and Member States Closer alignment with EU2020 strategy and Country Specific Recommendations (National Reform Programmes) I. Background and timetable - Slide 3/27
- 4. ESIF -stimulating smart, sustainable and inclusive growth in order to achieve EU2020 objectives Concentrate future EU spending on priority areas Prioritisation and orientation of results (e.g. ex-ante conditionalities) The macro-regional strategy for the Baltic area – integral part of programming for the next period I. Background and timetable - Slide 4/27
- 5. Timetable Informal dialogue with all Member States I.Background and timetable - Slide 5/27
- 6. THE COMMON STRATEGICFRAMEWORK ERDF, ESF, CF, EAFRD, EMFF THE PARTNERSHIP AGREEMENT ERDF, ESF, CF, EAFRD, EMFF National level Rural development programmes (EAFRD) EU level National level Operational Programmes for ERDF, ESF, CF (can be 1 multifund OP) Operational Programmes for (EMFF) II. Common strategic framework, Partnership Agreement and programmes - Slide 6/27
- 7. Economic situation inEstonia III. Economic situation and challanges - Slide 7/27
- 8. Europe 2020 headlinetargets for Estonia Europe 2020 headline targets Current situation in Estonia National 2020 target in the NRP 3% of EU's GDP to be invested in research and development 1.42 % of GDP in 2009, 1.63 % in 2010 (0.81 % public, 0.82 % private) 3 % 20% greenhouse gas (GHG) emissions reduction compared to 1990 +6 % non-ETS emissions (2010 compared to 2005). Based on current policies, it could reach +12 % in 2020, compared to 2005 +11 % (nationally binding target for non-ETS sectors compared to 2005) 20% of energy from renewables 23 % in 2009, 24 % in 2010 (Eurostat) 25 % in 2020 (RES Directive target) 20% increase in energy efficiency GIC = 6.07 Mtoe (2010) (Final Energy Consumption = 2.90 Mtoe in 2010) Primary Energy Savings = 0.75 Mtoe (Final Energy Consumption = 2.90 in 2020) 75% of the population aged 20-64 should be employed 66.4 % in 2010, 70.1 % in 2011 76 % Reducing early school leaving to less than 10% 13.9% in 2009, 11.6% in 2010, 10.9% in 2011 9.5 % At least 40% of 30-34 years old completing tertiary or equivalent education 35.9 % in 2009, 40 % in 2010 40 % Reducing the number of people at risk of poverty or exclusion by at least 20 million in the EU (compared with 2008 levels) 17.5 % in 2010, 58 000 people in 2009 15 % III. Economic situation and challanges - Slide 8/27
- 9. Challenges for EstoniaI Insufficient participation of private sector in research and innovation and inadequate competitiveness of SMEs •1.63% of GDP on R&D (0.82% private) •Fragmented R&I system, lack of focus •Only a fraction of companies innovate •Business-academia co-operation not strong enough •Improvements in competitiveness required to foster exports III. Economic situation and challenges - Slide 9/27
- 10. Challenges for EstoniaII Insufficient infrastructure endowment •Missing north-south infrastructure •Inadequate quality of road and rail •Lacking intermodal connection points and integrated systems •Interoperability of transport systems and hubs •Outdated energy distribution network III. Economic situation and chellanges - Slide 10/27
- 11. Challenges for EstoniaIII Skills mismatch, high unemployment of vulnerable groups and low-skilled people, varying capacity of local governments in providing public services •Decreasing population =>insufficient labour supply in longer term •High youth unemployment •Increasing long-term unemployment •Skills mismatch and lack of skilled labour force •Low participation rate in lifelong learning, in particular for low-skilled and older people •Low coverage of ALMP measures => low effectiveness of ALMP •Varying capacity of local governments in providing public services III. Economic situation and challenges - Slide 11/27
- 12. Challenges for EstoniaIV High energy intensity and gaps in relation to EU environmental targets •Low energy efficiency performance at sector level •Only 0.2% of energy in transport from RES, shift from public transport to private cars •Gaps in compliance with water and waste directives •Biodiversity and sustainable use of marine resources III. Economic situation and challenges - Slide 12/27
- 13. European Semester 2012 recommendationsfor Estonia 1. Preserve a sound fiscal position by implementing budgetary plans as envisaged, ensuring achievement of the MTO by 2013 at the latest, and compliance with the expenditure benchmark. Complement the planned budget rule with more binding multi-annual expenditure rules within the medium-term budgetary framework, continue enhancing the efficiency of public spending and implementing measures to improve tax compliance. IV. European Semester 2012 – Recommendations for Estonia - Slide 13/27
- 14. European Semester 2012 recommendationsfor Estonia 2. Improve incentives to work by streamlining the social benefits system and increasing flexibility in the allocation of disability, unemployment and parental benefits, while ensuring adequate social protection. Improve delivery of social services, while better targeting family and parental benefits and removing distortionary income tax exemptions related to children. Increase the participation of the young and the long-term unemployed in the labour market. IV. European Semester 2012 – Recommendations for Estonia - Slide 14/27
- 15. European Semester 2012 recommendationsfor Estonia 3. Link training and education more effectively to the needs of the labour market, and enhance cooperation between businesses and academia. Increase opportunities for low-skilled workers to improve their access to lifelong learning. Foster prioritisation and internationalisation of the research and innovation systems. IV. European Semester 2012 – Recommendations for Estonia - Slide 15/27
- 16. European Semester 2012 recommendationsfor Estonia 4. Improve energy efficiency, in particular in buildings and transport, and strengthen environmental incentives concerning vehicles and waste, including by considering incentives such as the taxation of vehicles. Foster renewable energy use, including through upgraded infrastructure and legislation. Continue the development of cross- border connections to end relative market isolation. IV. European Semester 2012 – Recommendations for Estonia - Slide 16/27
- 17. European Semester 2012 recommendationsfor Estonia 5. Enhance fiscal sustainability of municipalities while improving efficiency of local governments and ensure effective service provision, notably through stronger incentives for the merger of or increased cooperation between municipalities. Relevant reform proposals should be put in place within a reasonable timeframe. IV. European Semester 2012 – Recommendations for Estonia - Slide 17/27
- 18. Funding priorities 1) Strengtheningprivate research and creating an innovation-friendly business environment 2) Upgrading infrastructure 3) Skilled labour force, better education, high employment and inclusive society 4) Environment-friendly and resource-efficient economy There is no ranking in the presentation of the funding priorities V. Funding priorities - Slide 18/27
- 19. Strengthening private researchand creating an innovation-friendly business environment (1) • Foster prioritisation and internationalisation of R&I systems • Develop R&I strategy for smart specialisation • Identify the knowledge-intensive sectors on which to concentrate public resources • Optimise benefits of cooperation • Current relative level of CSF investments is proposed to be maintained, private investment should increase V. Funding priorities - Slide 19/27
- 20. Strengthening private researchand creating an innovation-friendly business environment (2) • Enhance private research, development and innovation activities • Match transnational, national and regional R&I provision to business demand • Strengthen SMEs' competitiveness and facilitate their access to finance and internationalisation, including in agriculture and fisheries V. Funding priorities - Slide 20/27
- 21. Upgrading infrastructure • Provisionof key transport and energy links reduces isolation and boosts the economy • Current level of CSF investments in this funding area is proposed to be maintained • Improve essential transport links, including moving ahead with the Baltic-Adriatic Corridor, a key railway project to implement the EU Strategy for Baltic Sea Region • Develop energy distribution networks V. Funding priorities - Slide 21/27
- 22. Promoting employment andsupporting labour mobility • Access to employment for job-seekers and inactive people • Support to self-employment, entrepreneurship and business creation • Active and healthy ageing Enhancing access to affordable, sustainable and high-quality services, including health care and social services of gener interest V. Funding priorities - Slide 22/27 Skilled labour force, better education, high employment and inclusive society (1)
- 23. Investing in education,skills and lifelong learning • Reducing early school-leaving and promoting good quality education • Enhancing access to lifelong learning (LLL), upgrading the skills and competences of the workforce and increasing the labour market relevance of education and training systems. • Improving the quality, efficiency and openness of tertiary and equivalent education with a view to increasing participation and attainment levels • Developing education and training infrastructure as regards pre- school facilities and the secondary education sector restructuring V. Funding priorities - Slide 23/27 Skilled labour force, better education, high employment and inclusive society (2)
- 24. Enhancing institutional capacityand ensuring an efficient public administration Investment in institutional capacity and in the efficiency of public administrations and public services with a view to reforms, better regulation and good governance • Increase the capacity of local governments to provide high-quality public services and create incentives for closer cooperation in provision of public services, in particular social and educational services. • Strengthen the capacity to formulate policy and to make use of regulatory tools to improve the business environment through a consistent use of impact assessments, better involvement of stakeholders, administrative simplification and reduction of burden on businesses, increased use of ICT to support the regulatory reform. V. Funding priorities - Slide 24/27 Skilled labour force, better education, high employment and inclusive society (3)
- 25. • Shift toan energy efficient, low-carbon economy • Address the remaining gaps in the compliance with the acquis and the binding EU targets in the field of environment (transport related air pollution, waste hierarchy, waste water, drinking water) • Further environmental protection in agricultural, fisheries and maritime sectors Environment-friendly and resource- efficient economy V. Funding priorities - Slide 25/27
- 26. Success factors Strategic,integrated, coordinated and coherent approach Targeted actions with measurable impacts, concentration Cooperation across regions, funds & strategies Ex-ante conditionalities, e.g. • R&I strategy for smart specialisation • National transport plan • Strategic plan for aquaculture; data collection for fisheries management and the implementation of a Union control, inspection and enforcement system. VI. Succes factors - Slide 26/27
- 27.