Executive Summary Chapter 1: Smart Growth Box on Turkey Box on Western Balkan The crisis led to employment losses, but also some productivity gains Growth in metropolitan regions more prone to booms and Busts than in rural regions Capital metropolitan regions performed well until the crisis led to above average employment losses GDP growth in rural regions was lower prior to the crisis, but proved more resilient during the crisis years Start-ups rates and Entrepreneurship rely on individual initiative and the right institutional environment Tertiary educational attainment is increasing, but large disparities persist Gaps in the digital and transport networks are being filled, but more remains to be done Digital networks are spreading, but unevenly Box on the digital agenda Box: Common transport policy contributes to cohesion and regional development, by improving accessibility Low speeds and low frequencies of trains in central and eastern member states limit their appeal compared to the car Chapter 2: Inclusive growth Unemployment highest in the EU in over a decade Reduction in early-school leavers is on track Lifelong learning is stagnating Severe material deprivation is highest in the towns, suburbs and rural areas of less developed Member States Higher urban risk of poverty in more developed MS and a higher risk in towns, suburbs and rural areas in less developed MS Cities in less developed Member States are close to the targets, while cities in more developed Member States lag behind Quality of life in European cities varies More foreign-born workers have joined the labour market with varying success Life expectancy is high, but regional disparities persist Chapter 3: Sustainable growth Shifting to more sustainable transport can increase energy efficiency and improve air quality Improving accessibility and energy efficiency Large cities provide better access to public transport Congestion is high in several of the large EU cities Air quality can still be improved in many places in the EU Cities use land more efficiently National and local policies can shape the location and land use intensity of new developments by promoting more compact cities Improving Eco-systems and reducing environmental impacts can make the EU more efficient and a better place to live Preserving water quality and protecting species and habitats Sound ecosystems offer many vital services Air quality is still too low in many EU cities The crisis pushed up government deficits Public investment supports economic growth Public expenditure increased, but now come down Public investment increased and then dropped Regional and local authorities play a key role in public expenditure and investment The crisis ended a period of sustained growth of public expenditure by regional and local authorities Revenue at sub-national level relies primarily on transfers Public deficit and public debt of sub-national governments Contribution of cohesion policy to public investment in the Member States Competition policy European Investment Bank Box on E-Government and public e-Tendering can improve the ease of doing business and reduce costs Box: Ways of tackling corruption The authority of EU regions is growing Cohesion Policy expenditure increased as a share of GNI Cohesion Policy in the s Cohesion Policy since Box on Macro-regional cooperation Box: Allocations and payments Box on Outermost regions The initial focus was on training and mobility The s and s saw structural unemployment and rapid changes in agriculture and manufacturing Improving transport and environmental infrastructure The Lisbon and Gothenburg Agenda What are the goals of Cohesion Policy?
Cohesion Policy can boost growth through investment in second nature determinants of growth The division of funding between policy areas has evolved as the goals of the policy have changed ESF and the reaction to the crisis Gross jobs directly created Enterprise support Support for RTDI ICT infrastructure Environmental infrastructure Tourism, cultural activities, social infrastructure, land reclamation and urban renewal The European Social Fund Access to employment Social inclusion policies Support to enhancing human capital Improving institutional capacity Support of RTDI Investment in transport Evidence from evaluations of ESF programmes Enhancing access to employment Equality between women and men Social inclusion - migrants and minorities New geography and funding Thematic concentration in support of Europe Strengthening the effectiveness of investment Achieving and demonstrating results Box : Intervention logic of Cohesion policy in — Example for supporting the high-tech sector in a more developed region Aligning EU investment with the European semester A strategic approach to Public Administration reforms Sound economic governance Preserving growth-enhancing investment Linking additionality verification to the stability and convergence programmes Increasing the role of financial instruments Reinforcing cooperation across Europe Funding priorities in Increasing the impact of investment and delivering results Box —Constructing the simulations Estimated impact at the national level Estimated impact at the regional level Investment in infrastructure Investment in human resources Map 20 Population aged with high educational attainment Distance to national target Map 45 Population at-risk-of-poverty-or-social-exclusion in , distance to national target Figure 3: GDP per head growth rates of regions in less developed or moderately developed Member States, Figure 34 — Change in greenhouse gas emissions outside the Emissions Trading Scheme, and Europe targets.
Figure Relationship between population density and sealed soil per head in larger urban zones, Figure 96 Allocations to thematic objectives by group of countries EUR billion at current prices, excluding technical assistance Figure 98 : Allocations by thematic objective vs. Figure 99 : Allocations by thematic objective vs. Table 4 Change in GDP per head, productivity and employment per head by type of metropolitan region, and This report comes out at the start of a new 7-year programming period for Cohesion Policy, when the situation in the EU is dramatically different from what it was at the start of the previous period in Then, the EU was still enjoying a sustained period of economic growth.
Income levels were rising, as were employment rates and public investment, poverty and social exclusion were diminishing and regional disparities were shrinking. Nevertheless, despite the positive tendencies, disparities between regions of many different kinds remained wide. The advent of the crisis changed all this. Since , public debt has increased dramatically, income has declined for many people across the EU, employment rates have fallen in most countries and unemployment is higher than for over 20 years, while poverty and social exclusion have tended to become more widespread.
At the same time, regional disparities in employment and unemployment rates have widened as have those in GDP per head in many countries while in others they have stopped narrowing. These developments mean that the Europe employment and poverty targets are now significantly further away than when they were first set and it will require a substantial effort over the next 6 years to achieve them in a context of significant budgetary constraints.
Chapter 1: In its first stage the crisis had a big impact on construction and manufacturing. In both, employment fell markedly, in construction as a result of the collapse of a real estate bubble in some Member States and a reduction in public investment and manufacturing because of a decline in global demand, especially for investment goods. More recently, world markets have expanded and exports have increased giving rise to some growth of manufacturing.
This is particularly important for many of the Central and Eastern European Member States where manufacturing accounts for a large share of value-added. The territorial impact of the crisis has been mixed. In most parts of the EU, metropolitan regions have been shown to be more prone to booms and busts, while overall rural regions have proved more resilient. In the EU, second-tier metropolitan regions performed average, while in the EU, they outperformed the other regions. Rural regions in the EU had a smaller contraction of GDP than the other regions between and due to higher productivity growth.
Also in the EU, higher productivity growth meant that he closed the growth gap with the other regions. Not all developments, however, have been unfavourable. Despite the difficult economic context, the proportion of people with tertiary education has increased over recent years in most countries and early school leaving rates have declined. As a result, EU targets for both of these are likely to be reached by if not earlier.
Innovation, however, remains highly concentrated in spatial terms and shows no sign of spreading to lagging regions. Investment in transport and digital infrastructure has reduced the deficiencies in these networks in many rural areas and less developed regions. Access to the internet using the next generation technology, however, creates new challenges for rural areas where this technology is almost non-existent.
In addition, completing the trans-European Transport network will require at least two more decades of substantial investment particularly in most of the Central and Eastern Member States. The onset of the crisis led to major reductions in the EU in trade and foreign direct investment, which are important sources of growth for the less developed Member States. Fortunately, exports of the EU to other EU countries have shown significant recovery and now account for a larger share of their GDP than before the crisis, while FDI has also picked up. Competitiveness remains low in most regions in Central and Eastern Member States, though capital city regions are typically the exceptions.
These tend to be highly competitive, but for the most part they do not as yet generate any measurable spill-overs to benefit other regions.
Most regions close to the capital in these countries, therefore, do not gain perceptibly from their proximity, while in many more developed Member States the regions neighbouring the capital also tend to have high levels of competitiveness. Indeed, in some Member States, such as the Netherlands, Germany and Italy, other regions with an important second-tier city have a higher level of competitiveness than the capital city region. Chapter 2: The crisis has wiped out half of the employment gains made between and the onset of the recession, particularly in the southern Member States.
As a result, in transition and less developed regions, employment rates are around 10 percentage points below the national target as compared to only 3 percentage points below in the more developed regions.
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Increases in unemployment have also been larger in these regions, averaging 5 percentage points between and as against 3 percentage points in more developed regions. Although was the first year in which the average rate of unemployment in the EU was the same for women as for men, big disparities remain in some parts, unemployment being much higher for women than for men in many southern regions. Employment rates for women remain lower than those of men in all EU regions. While the gap is relatively small in a number of Swedish and Finnish regions, it is more than 20 percentage points in Italy, Greece, and several regions in Romania, the Czech Republic and Poland.
On the educational front, however, in nine out of ten regions more women than men aged have a tertiary-level qualification. Higher risk of poverty and social exclusion is another legacy of the economic crisis. There are now around 8 million people at risk of poverty in the EU, the increase being particularly pronounced in Greece, Spain, Italy and the UK. A key issue is the variation within countries. The risk of poverty tends to be much lower in cities than in the rest of the country in less developed member States, while in cities in the more developed Member States, the reverse is the case.
Accordingly, in the latter, to meet the national Europe poverty targets requires a major reduction in the number of people at risk of poverty or exclusion in urban centres, while in the less developed countries the main challenge is to reduce the numbers at risk in more rural areas. The large disparities in employment, income levels and social well-being are major factors underlying population movement within the EU.
Planimetry Author: Kiselev A. In addition, attaining a relatively high education level tends to mean less risk of being unemployed. Denmark, Sweden and Germany , regional disparities are still considerable. This new set of data on regional business demography has the potential to become a critical policy indicator to measure business dynamics at the regional level. By representing squares with vertices and moves between neigh- bouring squares with edges, we obtain a graph. Let 2 words be listed by Borya alone, 4 words by Vasya alone, 6 words by Anya and Borya only, and 3 words by Anya and Vasya only.
In Central and Eastern Member States, there has been a tendency over the past 20 years for people to move from rural areas to urban ones, especially to the capital city, as well as to other parts of the EU. The combination of a natural decline in population and outward migration has led to a significant reduction of people living in rural regions in the EU over the past decade. In the EU, on the other hand, the population has risen on average in rural regions because of net inward migration more than offsetting a natural reduction in population.
In the EU, over the past decade the contribution of net inward migration to population growth was three times larger than that of the natural increase.
follow link By contrast, in the EU, net outward migration contributed twice as much to population decline as the natural reduction. Wide variations remain across the EU in life expectancy and mortality rates. Life expectancy differs by more than 9 years between the 10 regions where it is highest and the 10 where it is lowest. Equally, infant mortality and deaths from road accidents in relation to population differ by a factor of four between the 10 best and worst performing regions.
Chapter 3: The crisis has had mixed effects on the environment. The reduction in economic activity and income has made it easier to reduce greenhouse gas emissions; though energy efficiency has not increased greatly so that this reduction may well be reversed when demand picks up. The crisis has also reduced the cost of allowances for greenhouse gas emissions in the European Trading Scheme, so depressing the economic incentives to invest in energy efficiency and renewable energy and delaying the transition to a low-carbon economy.
The European Commission has postponed the auction of some allowances in response to these low prices. Some progress has been made across the EU in improving the treatment of urban wastewater and solid waste. More towns and cities now meet the quality standards set in the EU Directive on urban wastewater treatment and more solid waste is recycled, or incinerated with energy recovery, and less is dumped in landfills.
In both cases, however, more needs to be done and substantial investment is still required particularly in many of the less developed Member States and regions. The services concerned can fulfil important functions such as cleaning air and water, retaining water to reduce flood risks and removing carbon. The recent floods in many parts of the EU and the low air quality in many cities underline the need for them.
The advantage of investing in such services is that it can often be cost-efficient while helping to limit the loss of bio-diversity. The urban dimension of sustainable growth is one of many contrasts. On the other hand, cities offer major advantages in terms of eco-efficiency, since the close proximity of different locations reduces the need to travel long distances. Public transport is also more available in cities, offering a more energy-efficient means of travel, and people living in cities on average use less energy to heat their housing.
Equally, cities use land much more efficiently than others areas where population density is much lower and built-up land per inhabitant is much higher. The deterioration in public finances has led to the widespread implementation of fiscal consolidation measures and many governments have cut back public investment markedly.
This could well depress growth rates over the medium-term.