Changes in EU Subsidy Policy in the Period of 2007-2013

In the present planning and budgetary period of 2007–2013 some significant changes occurred in the EU subsidy policy, which connect primarily to the eastern enlargement, the Lisbon Strategy and the Schengen procedures. This priority basis on three pillars, namely the regional competitiveness, the creation of knowledge based (informational) society and the level of employment. The first one stands on innovation and information society; availability and common services; environment and risk prevention. The third pillar assist for a better labor adaptation capability, more intensive job creation and improved accessibility to people with functional disabilities on the labor market. All of these actions are covered in the European employment strategy. Focusing on the relations of financial instruments and aims, it is clear to observe changes in the EU budgetary periods (2000–2006; 2007–2013) after 2000 (Tables 3.7.–3.8.).

Table 3.7.: Community Strategic Guidelines, 2007–2013

I. Making Europe and its regions more attractive places to invest and work 1. Expand and improve transport infrastructures

2. To strengthen the synergies between environmental protection and growth 3. Address Europe’s intensive use of traditional energy sources

II. Improving knowledge and innovation for growth 1. Increase and improve investment in RTD

2. Facilitate innovation and promote entrepreneurship 3. Promote the information society for all

4. Improve access to finance III. More and better jobs

1. Attract and retain more people in employment and modernise social protection systems

2. Improve adaptability of workers and enterprises and the flexibility of the labour market

3. Increase investment in human capital through better education and skills 4. Administrative Capacity

5. Help maintain a healthy labour force

Source: http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52005DC0299:HU:HTML

Table 3.8.: Financial Instruments and Objectives in the European Union, 2000–2013

Interreg ERDF European cooperation ERDF

URBAN ERDF

Wide range of applications provides the high level of possibility to get sources in the European Union (Table 3.9.). In the period of 2007–2013, Community Initiatives started to transform continuously and partly expired. Changes in 2007-2013 can be summarized as it follows:

 INTERREG goes to the field of “European Territorial Cooperation” and its operator is a new legal entity, the European Group of Territorial Cooperation – earlier this area was supposed to be the third target.

 EU expects the member states to submit city development project models, as a continuation of URBAN program, so they can apply for grants in the case of more than 70 cities in an individual program.

 LEADER continuous in the frames of European Agricultural and Rural Development Fund (EARDF), as a major priority.

 EQUAL expires, however its principles have to apply in the future, as well – for example by highlighting and expanding successful anti-discrimination programs, etc.

Table 3.9.: Grant applications for EU funds

EU GRANT APPLICATIONS STILL OPEN EU GRANT APPLICATION OPEN BEFORE AND AFTER ACCESSION Objective 2 Assistance for economic and social

revolution

internet Help for safer use of internet SOCRATES European level cooperation on

education IDA Help for Data change in

administration Culture 2000 European cooperation on culture DAPHNE Program for fighting violence on

children, youth and women

Youth Cooperation on youth programs Media Plus EU audio-vision assistance program eCONTENT Digital content development on the

internet FISCALIS Cooperation on taxation

ALTENER Pilot projects on alternative energy use Pericles Cooperation for euro safety SAVE Program for energy use efficiency Ten-telecom Development of European

information society

CUSTOMS Cooperation on customs MARCO POLO Development of international trucking

OTHER EUROPEAN PROGRAMMES

TACIS Cross-border and pilot projects with CIS

countries Twinning Towns Twinning town relationships

*Structural and the Cohesion Funds are all opened after accession with parallel the close up of Pre-accession Funds. Community Initiatives are involved in the opening Structural Funds (they assist for individual objectives)

**In the frames of INTERREG II, III and EQUAL Programmes, Hungarian participants could already apply for grants tentatively in the pre-accession period through the PHARE Programme.

The major differences between the two budgetary periods of EU subsidy policy are displayed on Table 3.10 and 3.11.

Table 3.10.: Comparison of Earlier and Up-today Objectives, 2000–2013

period of 2000–2006 period of 2007–2013 mainly the same as objective 1 in the period of 2000-2006, as this objective is also about the support for less developed regions, however, it has some important changes: supports are expanded to regions, where the level of GDP per capita is at the maximum of that of the EU average considering the 10 new member states (so-called statistic effects). In case of member states, where the GNP is under the 90% of that of the EU average, Cohesion Fund is involved and earlier proviso is deleted on sparsely funds and is financed by solely the European Regional Development Fund. This covers by ERDF and ESF. However, this is only one objective, ERDF and ESF programming procedures are also divided in the future; the regional power of programming goes under this objective expand to the whole area of the EU, except for regions under objective 1.

INTERREG Community Initiatives: their

Source: Own edition by Cocchioni, A. Del Viscio, T. Raffaelli, A., 2007.

Instruments of regional policy have been enlarged by new elements and possibilities.

Instruments of the new regional policy are:

 JASPERS-program (common program for investments in European regions); its objective to develop cooperation among European Commission, European Investment Bank and European Bank for Reconstruction and Development, in order to incorporate professional knowledge and support for preparation of major projects in member states / regions.

 JEREMIE-program (common European source for supports to micro-, small and medium sized enterprises) a common initiative of European Commission, European Investment Bank and European Bank for Reconstruction and Development in order to make the availability to finance for micro-, small and medium sized enterprises in EU regions easier.

 JESSICA-program (a common European support for sustainable investments in urban areas) an initiative of the European Commission alone with European Investment Bank and European Bank for Reconstruction and Development, its objective is to provide financial assistance to sustainable investments in urban areas (Inforegio, 2006).

Table 3.11.: Changes in Target Areas of EU Subsidy Policy, 2000–2013 budgetary period of 2000–2006 budgetary period of 2007–2013

AGENDA 2000 Third Cohesion Report

European Regional Development FundEuropean Social Fund

2

Source: own edition, Agenda 2000, Third Cohesion Report

As a result of changes, sources provided by Community Programs have transformed drastically and their number enlarged in the period of 2007-2013 (Table 3.12.):

Table 3.12.: EU Community Programs, 2007–2013 Culture 2007 408 million euro Europe for Citizens 215 million euro Fiscalis 2013 156.9 million euro

6.2 billion euro Marco Polo II. 400 million euro

Progress 743.25 million euro Safer Internet Plus 45 million euro (2005–2008)

Customs 2013 323.8 billion euro eContentplus Program 149 million euro Erasmus Mundus 230 million euro

Media 2007 755 million euro Action Programme for Public Health