Programming of the new European Regional Development Fund – experiences from Saxony-Anhalt/Germany Representation of Saxony-Anhalt to the European Union Thomas Wobben Boulevard Saint Michel 80 B-1040 Brussels Tel.: Fax:

region of 2,6 Mio. Inhabitants Regional Government:1 Prime Minister and 8 Ministers: Prime Ministers Office, Ministry for Agriculture and Environment, Ministry for Business and Employment, Ministry for Social Policy, Ministry for Transport, Ministry for Finance, Ministry for Justice, Ministry for Home Affairs, Ministry for Education Each Ministry has up to 250 members of staff and some of them (Home Affairs, Social Policy, Education) have several thousands of employees in lower institutions Regional Budget:10,5 Billion EURO Taxes for the Federal and regional level (income tax, corporate tax, business tax) Taxes for the regional level (car tax, property tax) European Affairs are dealt with by the European Department in the Prime Ministers Office Saxony-Anhalt

Saxony-Anhalt in the Heart of Europe

Impact of the statistical effect on Saxony-Anhalt

NUTS II Regions in Saxony-Anhalt * Magdeburg * Dessau * Halle

Regional Figures Lage und Entwicklung in den Regionen Dessau, Halle und Magdeburg NUTS II RegionsSachsen-Anhalt MagdeburgHalleDessau Population Demografic change (%)- 3,0- 3,9- 4,9- 3,7 Emploeyees Change of Employees (%)- 2,8- 6,4- 4,3 Change of GDP (%)9,23,88,47,2 GDP per Employee 2004 () GDP capita in PPS (EU 25=100)75,577,670,975,2 GDP capity in PPS (EU 25=100)72,2775,0765,99n.V. Unemployment Rate (%)17,621,3 19,6 Quelle: Stat. Landesamt Sachsen-Anhalt, Eurostat, Berechnungen der Staatskanzlei Sachsen-Anhalt.

Structural Funds Support for Saxony-Anhalt: : 268 Mio. ECU (Special Structural Programme for the new German Länder) :2.645 Mio. ECU (Obj. 1 Programme for Saxony-Anhalt) :3.800 Mio. EURO (Obj. 1Programme for Saxony- Anhalt) :2,790 Mio. EURO (Convergence Programme for Saxony-Anhalt) of which 1,930 Mio. EURO are for the ERDF

Structuring the Programming Process Strategy Building Analysis Partnership

Strategy Building Governmental Declaration of Prime Minister Böhmer to start the Programming Process in the Parliament – call for active participation of civil society – focus on growth and employment – ensuring sustainable development of the region Setting up an Inter-Ministerial Committee for the Programming Excercise Installing a Strategic Clearance Unit at State Secretary level in the regional government to decide on crucial aspects of the programming excercise Programming was carried out under the main responsability of the Prime Ministers office

Analysis SWOT Analysis Scoring Analysis of the current funding programmes of the region HERMIN Model to assess makro-economic effects

Reduction of Production Gap from 77% in 1991 to 29% in 2002 Convergence Progress in Saxony-Anhalt Quelle: Staatskanzlei Sachsen-Anhalt

SWOT Analysis Cost Competition Lohnstückkosten Gesamte Wirtschaft Lohnstückkosten Industrie Sachkapitalausstattung Kapitalintensität Kapitalausstattung je EW Humankapital Beschäftigte ohne Ausbildung Abgänger ohne Schulabschluss Studenten je EW FuE-Potenzial Patente je 1000 EW FuE-Aufwendungen Technologieintensiver Sektoren Lage und Erreichbarkeit Erreichbarkeit von Oberzentren Erreichbarkeit von Metropolregionen Infrastruktur Schulinfrastruktur Infrastruktur Hochschulen, FuE Verkehrsinfrastruktur Kultur, Soziales, Krankenhäuser Wirtschaftsstruktur Betriebsgröße Anteil Selbständiger Auslandsumsatz Weaknesses Strengths Quelle: Staatskanzlei Sachsen-Anhalt

significant loss of population : - 5% (East Germany: -3%, West Germany and EU25: + 0,5%) forecast until 2020: -19% therefore change of age pyramid Demographic Change Quelle: Ministerium der Finanzen Sachsen-Anhalt

Budgetary Impacts for Saxony-Anhalt Development of regional inocme until Steuereinnahmen, LFA und Fehl-BEZ SOBEZ eigene Einnahmensonstige lfd. Einnahmen investive EinnahmenKredite Mio. Euro Quelle: Ministerium der Finanzen Sachsen-Anhalt

Scoring System Key Questions: 1.) How important and adequate is the measure with regard to the intended political objective? 2.) How do the measures contribute to achieving the objective? 3.) Is the measured carried out in a cost-efficient way? 4.) Does the measure imply free rider effect? 5.) Are there any side effects in particular to environmental and social factors? 6.) Is it really a public good which needs to be supported or could it be also provided by private institutions?

Scoring Analysis of all Funding Programmes

Result of the Scoring Analysis

Partnership involvement of regional partners carrying out of 5 regional workshops in the planning regions presentation of workshop results to the regional Monitoring Committee possibility for the socio-economic partners to discuss and contribute to the programme drafting presentation in the regional parliament

Funding Strategy of Saxony-Anhalt for the ERDF

Main Objectives -growth acceleration -job creation therefore -focus on measures with a significant long term effect on convergence -adressing particularly the strength and weaknesses of the region -a most efficient use of the resources

Role of Structural Funds intervention in Saxony-Anhalt Assessment of the Mid Term Evaluation for the Funding Period : short term: GDP increase of +3%; employment +2,5%, significant stabelising impact long term: Impact is dependant whether the funds are used to have a lasting impact on increasing the competitiveness through an optimised operational programming an GDP effect of 0,5% can be achieved in the long rund

Funding Priorities of the ERDF programme for Saxony-Anhalt Priority 1: Support for Innovation, Research and Development and Education Priority 2: Support for improving competitiveness of the companies Priority 3: Infrastructure development for sustainable growth Priority 4:Technical Assistance

Funding Priorities in the ERDF Programme of Saxony- Anhalt

ERDF-Support in the next Funding period (Magdeburg/Dessau) Finanzierungsquellen Zur Information Gemein- schafts- beteiligung Nationale öffentliche Mittel Nationale private Mittel Mittel insgesamt Beteiligun gssatz EIB- Beitrag Sonstige Mittel a) Prioritätsachse 1 Bildung, Forschung und Entwicklung, Innovation 326,45119,680,00446,1373,2 % -181,35 Prioritätsachse 2 Steigerung der Wettbewerbsfähigkeit der Wirtschaft, insb. durch Unterstützung zukunftsgerichteter Investitionen und Förderung der Unternehmertätigkeit 553,86128,7358,99741,5874,7 % ,42 Prioritätsachse 3 Entwicklung und Ausbau der Infrastruktur für nachhaltiges Wachstum 417,59148,100,00565,6973,8 % -261,54 Technische Hilfe 54,0918,030,0072,1275,0 % -- Insgesamt 1.351,99414,5458, ,5174,1 % a) nach derzeitigem Planungsstand geschätzte Werte.

ERDF-Support in the next Funding period (Halle) Finanzierungsquellen Zur Information Gemein- schafts- beteiligung Nationale öffentliche Mittel Nationale private Mittel Mittel insgesamt Beteiligung ssatz EIB- Beitrag Sonstige Mittel a) Prioritätsachse 1 Bildung, Forschung und Entwicklung, Innovation 210,53119,330,00329,8563,8 % -83,25 Prioritätsachse 2 Steigerung der Wettbewerbsfähigkeit der Wirtschaft, insb. durch Unterstützung zukunftsgerichteter Investitionen und Förderung der Unternehmertätigkeit 178,0534,2225,28237,5575,0 % -392,88 Prioritätsachse 3 Entwicklung und Ausbau der Infrastruktur für nachhaltiges Wachstum 168,0563,470,00231,5272,6 % -111,96 Technische Hilfe 23,187,730,0030,9175,0 % -- Insgesamt 579,81224,7525,28829,8369,9 % -588,08 a) nach derzeitigem Planungsstand geschätzte Werte.

Draft Operational Programme for the ERDF in Saxony-Anhalt

Key lessons learned programming is a complex process it needs leadership programming evolved from being a planning process behind closed doors to an overall strategy building process for the whole region co-operation and co-ordination are essential braking with all traditions is necessary to adapt to the new challenges key importance for placing the right people at the right time making structural funds implementation a team exercise of a whole region focussing on the key challenges develop a permanent monitoring system key decisions have to be taken now which will have an impact for the next 10 years!

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