Fifth Progress Report on Economic and Social Cohesion Danuta Hübner CONTENT OF THIS REPORT • Main conclusions of the public consultation • Update of data on cohesion • Analysis of how EU growth and regional convergence are driven by the sectors of the future EUROPEAN COMMISSION Regional Policy 2 THE MAIN MESSAGE OF THE PUBLIC CONSULTATION • Strong support for an ambitious European cohesion policy EUROPEAN COMMISSION Regional Policy 3 PARTICIPANTS IN THE PUBLIC CONSULTATION • More than one hundred contributions were received: – 17 Member States (more than 80% of the EU population) – 37 from regional and local authorities; many of them are joint statements – All the others: economic and social partners, territorial organisations, civil society, academia and citizens. Website: http://ec.europa.eu/regional_policy/conferences/4thcohesionforum EUROPEAN COMMISSION Regional Policy 4 EU COHESION POLICY AFTER 2013 • Re-nationalisation of this policy is rejected • Support for a European cohesion policy for all the EU regions • Priority to lagging behind regions EUROPEAN COMMISSION Regional Policy 5 CONVERGENCE AND COMPETITIVENESS • No convergence without competitiveness • Priority to investments in innovation, skills and education, sustainable development and European wide infrastructures EUROPEAN COMMISSION Regional Policy 6 NEW CHALLENGES • Integrated approaches – EU cohesion policy cannot be the only policy instrument • Stronger coordination with other Community policies EUROPEAN COMMISSION Regional Policy 7 COOPERATION BETWEEN EUROPEAN REGIONS • Clear demand for its strengthening in the future • One of the best examples of the added value of European cohesion policy EUROPEAN COMMISSION Regional Policy 8 GOVERNANCE OF THE COHESION POLICY • Demand to continue simplifying European cohesion policy EUROPEAN COMMISSION Regional Policy 9 UPDATE ON COHESION: ECONOMIC CONVERGENCE GDP per head (PPS), 2000-2005 Growth of GDP/head, 2000-2005 140 3.0 2.5 Annual average change, in % GDP per head (PPS) index, EU27=100 120 100 80 60 40 2.0 1.5 1.0 0.5 20 0.0 0 Convergence Transition RCE EUROPEAN COMMISSION Regional Policy Convergence Transition RCE 10 UPDATE ON COHESION: SOCIAL CONVERGENCE Unemployment rate, 2000-2006 16 Share of active population 15-74, in % 14 12 10 8 6 4 2 0 Convergence Transition RCE EUROPEAN COMMISSION Regional Policy 11 WHAT DRIVES CONVERGENCE: HIGHEST EMPLOYMENT SHIFTS IN CONVERGENCE AND TRANSITION REGIONS Employment Changes, 2000-2005 5 4 3 Average Annual Change, in % 2 1 0 -1 ` -2 -3 -4 -5 Agriculture Construction Financial & business services Total -6 -7 Conv Transition EUROPEAN COMMISSION Regional Policy Industry Trade, transport & communication Other services RCE 12 WHAT DRIVES CONVERGENCE: HIGH AND MEDIUM-HIGH TECH MANUFACTURING High and medium-high tech manufacturing employment, 2000-2006 45 Share of total employment in industry, in % 40 35 30 25 20 15 10 5 0 Convergence Transition RCE EUROPEAN COMMISSION Regional Policy 13