Operational Programme Investment priorities Ex-ante conditionalities

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1 Operational Programme Investment priorities Ex-ante conditionalities Magnus Urb Jurmala

2 Overview of ESI funds EMFF 101 mln CF mln EAFRD; 726 mln * ERDF mln ESF 587 mln

3 Main focuses in Transport 15% ICT, admin. capacity 6% Education, employment, social inclusion 31% Resource efficiency, environment 17% RD&I, entrepreneurship 31%

4 Millions Distribution between thematic objectives TO1 TO2 TO3 TO4 TO5 TO6 TO7 TO8 TO9 TO10 TO11 TA CF ESF ERDF

5 Structure of the OP (1) Nr Priority axis TO / IP 1 Qualifications and skills meeting the needs of society and labour market TO 10 ESF iii and TO 10 ERDF 2 Increasing social inclusion TO 9 ESF i and TO 9 ERDF a 3 Improvement of access to, and prevention of dropping out of, the labour market TO 8 ESF ii 4 Growth, smart specialisation and R&D&I TO 1 ERDF a and b 5 Development of SMEs and local entrepreneurship TO 3 ERDF d 6 Energy efficency TO 4 CF ii 7 Water protection TO 6 CF ii 8 Green infrastructure and climate change and prepairdness for emergencies TO 5 CF ii and TO 6 CF iii 9 Sustainable urban development TO 4 ERDF e TO 6 ERDF e TO 9 ERDF a

6 Structure of the OP (2) Nr Priority axis TO / IP 10 Sustainable transport TE 7 CF i and TE 7 CF ii 11 Infrastructure for ICT services TE 2 ERDF a and c 12 Administrative capacity TE 11 ERDF and ESF Technical assistance CF and ERDF

7 Main changes made as a result of negotiations Clarification of intervention logic (education, social inclusion, RDI, SME competitiveness, energy, transport, ICT, public administration) Setting baselines and target levels for ESF indicators Clearer commitment to DI under TO 9

8 Key outstanding issues in official negotiations of the OP Smart specialisation TO1 100% in line with RIS3 areas vs RIS3 framework Targeting jobs as an output indicator under TO3 (SMEs) and TO8 (regional competitiveness) Setting a limit of 5 mln for small scale investments into culture and tourism Setting baselines and target levels for ESF indicators

9 Overview of RIS3 strategy (1) RIS3 strategy consists of the RD&I strategy and the business growth strategy; Both have a dedicated section for RIS3 areas, but Both strategies combined and in their entirety are considered in the OP as RIS3 framework; EC considered the relevant ex ante conditionality fulfilled;

10 Overview of RIS3 strategy (2) 3 main areas ICT horizontally through other sectors Health technologies and services More efficient use of resources narrower niches (sub-areas) with greatest potential are being defined Coordination committee led by MoE an MoR with a yearly rotation; includes other ministries and entrepreneurs Secretariat and the analytic body is the Estonian Development Fund

11 Overview of RIS3 strategy (3) Programme for applied research in RIS3 areas for research institutions higher education scholarships in RIS3 areas Clusters and technology development centres Encouraging start-up entrepreneurship Promoting the role of the state as the contracting authority for innovative solutions In other measures under TO1 preference will be given activities that contribute to the needs of RIS3 areas.

12 Planned use of Financial instruments (1) We received the ex ante assessment draft just last Friday from PWC The ex ante assessment coverd half of the required analysis to the cut down the nr of possible instruments 15 measures in a variety of policy areas were covered and 2 measures are left for finalizing the assessment

13 Planned use of Financial instruments (2) TO3: 145,5 mln security products insurance of export transactions; starting loan for starting companies risk capital by creating an early phase fund type instrument TO1: up to 109 mln resource efficiency in enterprises The ex ante assessment proposes a conditional loan, but not sure yet weather this can be facilitated to be in line with legislative framework of ESI funds

14 5 CSRs 1. Strengthen medium-term budget framework and continue to enhance the efficiency of public spending. 2. Improve incentives to work through measures targeted at low income earners. Increase the efficiency and cost effectiveness of family policy, improve the availability and accessibility of childcare. Deploy coordinated measures for fostering economic development and entrepreneurship in regions faced with high unemployment. 3. Ensure the labour market relevance of education and training systems. Further intensify prioritisation and specialisation in the research and innovation systems and enhance cooperation between businesses, higher education and research institutions to contribute to international competitiveness. 4. Step up efforts to improve energy efficiency, in particular in residential and industrial buildings. Substantially strengthen environmental incentives for the transport sector to contribute to less resource intensive mobility. Continue the development of cross border connections to neighbouring Member States to diversify energy sources and promote competition through improved integration of the Baltic energy markets. 5. Better balance local government revenue against devolved responsibilities. Improve the efficiency of local governments and ensure the provision of quality public services at local level, especially social services complementing activation measures.

15 CSR 2 Improve incentives to work through measures targeted at low income earners. Increase the efficiency and cost effectiveness of family policy, improve the availability and accessibility of childcare. Deploy coordinated measures for fostering economic development and entrepreneurship in regions faced with high unemployment. Planned actions: Work-ablity reform Better access to welfare services Better access and quality of childcare service Involvement of NEET youth Prevention of young people dropping out of school or labour market

16 CSR 3: Ensure the labour market relevance of education and training systems. Further intensify prioritisation and specialisation in the research and innovation systems and enhance cooperation between businesses, higher education and research institutions to contribute to international competitiveness. Planned actions: Linking better education and the needs of labour market Training of low skilled adults and development of their key competences Reorganisation of school network Smart specialisation measures Cooperation between research and enterpreneurship, internationalisation of research Reform of higher education and research institutions

17 CSR 4: Step up efforts to improve energy efficiency, in particular in residential and industrial buildings. Substantially strengthen environmental incentives for the transport sector to contribute to less resource intensive mobility. Continue the development of cross border connections to neighbouring Member States to diversify energy sources and promote competition through improved integration of the Baltic energy markets. Planned activities: - Development of resource efficient technologies in enterpreneurship - Increasing efficency of district heating - Increasing energy efficency of housing sector - Development of public transport

18 CSR 5: Better balance local government revenue against devolved responsibilities. Improve the efficiency of local governments and ensure the provision of quality public services at local level, especially social services complementing activation measures Planned activities: Better provision of services - welfare services - education - youthwork - childcare - public transport - health care

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