EU funding news from Welcomeurope

Cohesion spending increase

The budgetary constraints currently faced by Member States mean that the EU’s structural funds are an ever more valuable source of growth-enhancing investment especially in the regions that need it most.

The effective use of these funds gathered pace in 2011, with payments to Member States from last year’s cohesion policy budget hitting a record €32.9 billion, an 8% increase on the €30.5 billion paid out in 2010. This higher payment rate from the European Regional Development Fund (ERDF), the European Social Fund (ESF) and the Cohesion Fund for 2011 also reflects the fact that we are well into the second half of the 2007-2013 financial framework, which is when most invoices are submitted. EU structural funds in 2011 helped to further the Single Market through investments in a broad range of strategic and growth-enhancing areas, including broadband connections, research and development infrastructure, innovation projects, new Small- and Medium Sized Enterprises (SMEs) and education.

In addition, the European Commission has taken measures to prioritise growth-enhancing investments. For example, temporary “top-up” payments worth €374 million were made in 2011 to Greece and Romania, following the entry into force of new rules to support the economies of Member States experiencing difficulties in terms of financial stability.

In Greece, a total of €11.5 billion will be invested in around 180 priority projects, leading to the creation of between 90,000 and 108,000 jobs.

For Italy, an action plan for the southern or Mezzogiorno regions will enable €3.1 billion of EU and national funding to be invested rapidly in regional projects in education and school infrastructure, broadband, railways and supporting SMEs. This is the result of a reprogramming of funds, in cooperation with the national and regional authorities, to trigger much-needed growth in crucial sectors.

The Commission has also called on Member States to use €22bn of European Social Fund money not yet committed to projects to improve job opportunities for young people. Today one in five youngsters looking for work cannot find a job. The new ‘Youth Opportunities Initiative’ is pleading for Member State to work on preventing early school leaving; helping youngsters develop skills relevant to the labour market; ensuring work experience and on-the-job training and helping young people find a first good job. The European Commission has also set out concrete actions to be financed directly by EU funds.

Background

At the end of 2011, the average payment rate for all three funds (European Regional Development Fund, European Social Fund and Cohesion Fund) in the EU was 33.4% of the amounts allocated for the 2007-2013 period. These rates vary significantly between countries, from 16.5% to 48.3%; while the analysis per fund reveals that the ERDF payments increased by 55% year-on-year from 22.3% at end 2010 to 34.3% at end 2011. For ESF, the payment rate has increased by 52%, from 23.25% at end 2010 to 35.43% at end 2011 (total advanced and interim payments). There are still differences between countries that vary from18.68% to 60.43%, but in all member states an improvement can be noticed.

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The European Union believes in growth based on trade

A range of proposals to make trade and development instruments work hand-in-hand to ensure real poverty reduction across the world are presented by the European Commission today.

The proposals aim at reinforcing the trade capacities of developing countries by making trade part of their development strategy. And to ensure we hit our target, the EU is currently looking into better ways of differentiating between developing countries to ensure the world’s poorest countries receive our biggest help. The role of trade is underlined in the proposal as one of the key drivers to support development, stimulate growth and to lift people out of poverty. Furthermore, today the EU calls for all developed economies to match its significant levels of market access to developing countries.

While the EU already provides more trade-related development assistance than the rest of the world put together, the Communication “Trade, growth and development” assesses the main next steps. For example: the traditional group of “developing countries” is outdated amid the rise of emerging economies. More tailor-made trade and development policies are needed that go beyond reducing customs duties at borders (tariff reductions), and tackle the major problem of improving the ‘business environment’.

To achieve this goal, the proposal underlines that developing countries’ leadership must also face up to their responsibilities. Developing countries need to undertake domestic reforms to ensure that the poor do indeed benefit from trade-led growth.

The Commission proposes a number of ways to improve the effectiveness of EU trade and development policy including:

reforming the EU’s preferential trade schemes to focus more on the poorest countries,
stepping up negotiations on free trade agreements with our developing country partners. These must look beyond tariffs to tackle the real barriers to trade,
increasing the use of EU instruments to promote foreign direct investment, including relevant provisions in free trade agreements to enhance legal certainty and combining EU grants with loans or risk capital to support the financial viability of strategic investments,
facilitating developing country exporters, especially small operators, to enter the EU,
assisting developing countries to improve their domestic business environment, meet international quality, labour and environmental standards and take better advantage of trade opportunities offered by open and integrated markets,
using trade measures to help mitigate the effects of natural disasters and tackle conflict catalysts, including in mining activities.
It also calls on emerging economies to assume more responsibility for opening their markets to LDCs through preferential schemes but also on a non-discriminatory basis towards the rest of the WTO membership, of which four-fifths are developing countries. At the same time, the EU offers emerging economies a more mature partnership that includes regulatory cooperation and engagement on global issues which are essential for development such as food security, sustainable use of natural resources, green growth and climate change.

Background
The EU leads the way in providing trade support to the developing countries:

- The EU imports more goods from developing countries than any other market. It is also the biggest market for developing world agricultural exports. Almost 70% of all agricultural imports to the EU comes from developing countries;
- developing countries benefit from EU preferences in the form of eliminated or significantly reduced tariffs for their goods (under the “General System of Preferences”);
- the Everything But Arms initiative offers duty free and quota free access to our markets for all Least Developed Countries (LDCs) and for all products except arms and is the most generous preferential import regime in the world;
the EU is leading world efforts for a package for LDCs in the multilateral trade talks;
- the EU supports the domestic reforms in developing countries needed for trade to fully contribute to development;
- The EU and its Member States are the world’s largest provider of Aid for Trade, which helps partners develop trade strategies, build trade-related infrastructure and improve productive capacity. The EU combined annual Aid for Trade reached €10.5 billion in 2009, maintaining the all-time high registered the year before;
- A substantial increase was also reported for EU Trade-Related Assistance (which is a sub-category of Aid for Trade that focuses on strategic trade issues such as policy development, regulation or regional integration). This brings the collective amount to nearly €3 billion, well above the target to spend €2 billion per year on Trade Related Assistance from 2010. Sub-Saharan Africa is the main beneficiary of EU Trade Related Assistance, with its share of collective EU Trade Related Assistance increasing from 15% to 28% between 2008 and 2009.

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The Parlementarium celebrates 100 days successfully.

Over 64,000 visitors interested in how the EU and Parliament work have experienced the Parlamentarium since Europe’s largest parliamentary visitors centre opened 100 days ago. The European Parliament’s visitors centre allows children and adults to discover Europe’s history and how the decisions that influence our daily lives are made in a modern and interactive way.

Parlamentarium opened to the public on 14 October and has gained popularity as a Brussels attraction. It is ranked among the top things to do in Brussels on the “Tripadvisor” travel information site.

The visit is accessible in the 23 official EU languages, with sign language in English, French, German and Dutch. Admission is free, it is open seven days a week and the centre is fully accessible to visitors with special needs. It also offers a role play game in which students can step into an MEP’s shoes.

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Bill Gates calls for maintaining the budget for development aid

Bill Gates calls for holding 0.7% of gross national income the budget of development aid for the next programming.

Mr Gates stressed that he cites the EU approach to development as an example when urging Chinese leaders or the US Congress to step up their development aid to the same level.

“Whether you like it or not, you are the leader in development aid and it is very unlikely we can do without this example if Europe does not continue its upward push. This is particularly important as you are looking at your 7-year budget. I know you have some difficult trade-offs to make because of the economic situation, but the money you devote to development will have a huge impact in the world”, said Mr Gates.

Speaking as co-chair of Bill & Melinda Gates Foundation, Mr Gates offered “living proof” that development aid “works” to save lives in the world’s poorest countries. “I think this picture is more beautiful than any European anthem”, he said, presenting a graph showing that child deaths have fallen from 20 million to under 8 million in the past 50 years.

Mr Gates also noted that vaccines are an inexpensive way to save millions of lives, citing a 99% reduction in polio cases since 1988.

MEPs were almost unanimous in their praise of this presentation, although some criticized the Gates Foundation’s links to Monsanto, a biotech company that is trying to introduce hybrid seeds in Africa.

Catherine Grèze (Greens, FR), asked “we know that the majority of African countries are against GMOs. Is it true that one of the objectives of research centre financed by foundation is to pave the way to change the laws so that cotton GMOs can be introduced in Kenya, even knowing that one of the major concerns of developing countries is losing control of their own seeds?”

Mr Gates replied that Monsanto was currently working on a project to develop royalty-free drought resistant maize, and that since all African leaders are certainly against starvation and malnutrition, it was about time that they looked into new tools. “Seeds that are dramatically more drought resistant will benefit thousands of lives”, he insisted.

Parliament’s President Martin Schulz said he was “deeply impressed and fascinated” by the work of the Gates Foundation and stressed that EU has a moral duty to show international solidarity, given that it accounts 8% of the global population, but 30% of global wealth.

“We have to deliver on our promises if we do not want to risk our credibility and I hope that, irrespective of political colours in this house, Parliament will stand shoulder to shoulder with the aims of Gates Foundation”, said Mr Schulz.

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The European Commission wants to reform Data Protection

The aim is the protection of users and reducing costs for professionals.

The European Commission has today proposed a comprehensive reform of the EU’s 1995 data protection rules to strengthen online privacy rights and boost Europe’s digital economy. Technological progress and globalisation have profoundly changed the way our data is collected, accessed and used. In addition, the 27 EU Member States have implemented the 1995 rules differently, resulting in divergences in enforcement. A single law will do away with the current fragmentation and costly administrative burdens, leading to savings for businesses of around €2.3 billion a year. The initiative will help reinforce consumer confidence in online services, providing a much needed boost to growth, jobs and innovation in Europe.

The Commission’s proposals update and modernise the principles enshrined in the 1995 Data Protection Directive to guarantee privacy rights in the future. They include a policy Communication setting out the Commission’s objectives and two legislative proposals: a Regulation setting out a general EU framework for data protection and a Directive on protecting personal data processed for the purposes of prevention, detection, investigation or prosecution of criminal offences and related judicial activities.

Key changes in the reform include:

- A single set of rules on data protection, valid across the EU. Unnecessary administrative requirements, such as notification requirements for companies, will be removed. This will save businesses around €2.3 billion a year.
- Instead of the current obligation of all companies to notify all data protection activities to data protection supervisors – a requirement that has led to unnecessary paperwork and costs businesses €130 million per year, the Regulation provides for increased responsibility and accountability for those processing personal data.
- For example, companies and organisations must notify the national supervisory authority of serious data breaches as soon as possible (if feasible within 24 hours).
- Organisations will only have to deal with a single national data protection authority in the EU country where they have their main establishment. Likewise, people can refer to the data protection authority in their country, even when their data is processed by a company based outside the EU. Wherever consent is required for data to be processed, it is clarified that it has to be given explicitly, rather than assumed.
- People will have easier access to their own data and be able to transfer personal data from one service provider to another more easily (right to data portability). This will improve competition among services.
- A ‘right to be forgotten’ will help people better manage data protection risks online: people will be able to delete their data if there are no legitimate grounds for retaining it.
- EU rules must apply if personal data is handled abroad by companies that are active in the EU market and offer their services to EU citizens.
- Independent national data protection authorities will be strengthened so they can better enforce the EU rules at home. They will be empowered to fine companies that violate EU data protection rules. This can lead to penalties of up to €1 million or up to 2% of the global annual turnover of a company.
- A new Directive will apply general data protection principles and rules for police and judicial cooperation in criminal matters. The rules will apply to both domestic and cross-border transfers of data.
The Commission’s proposals will now be passed on to the European Parliament and EU Member States (meeting in the Council of Ministers) for discussion. They will take effect two years after they have been adopted.

Background

Personal data is any information relating to an individual, whether it relates to his or her private, professional or public life. It can be anything from a name, a photo, an email address, bank details, your posts on social networking websites, your medical information, or your computer’s IP address. The EU Charter of Fundamental Rights says that everyone has the right to personal data protection in all aspects of life: at home, at work, whilst shopping, when receiving medical treatment, at a police station or on the Internet.

In the digital age, the collection and storage of personal information are essential. Data is used by all businesses – from insurance firms and banks to social media sites and search engines. In a globalised world, the transfer of data to third countries has become an important factor in daily life. There are no borders online and cloud computing means data may be sent from Berlin to be processed in Boston and stored in Bangalore.

On 4 November 2010, the Commission set out a strategy to strengthen EU data protection rules (IP/10/1462 and MEMO/10/542). The goals were to protect individuals’ data in all policy areas, including law enforcement, while reducing red tape for business and guaranteeing the free circulation of data within the EU. The Commission invited reactions to its ideas and also carried out a separate public consultation to revise the EU’s 1995 Data Protection Directive (95/46/EC).

EU data protection rules aim to protect the fundamental rights and freedoms of natural persons, and in particular the right to data protection, as well as the free flow of data. This general Data Protection Directive has been complemented by other legal instruments, such as the e-Privacy Directive for the communications sector. There are also specific rules for the protection of personal data in police and judicial cooperation in criminal matters (Framework Decision 2008/977/JHA).

The right to the protection of personal data is explicitly recognised by Article 8 of the EU’s Charter of Fundamental Rights and by the Lisbon Treaty. The Treaty provides a legal basis for rules on data protection for all activities within the scope of EU law under Article 16 of the Treaty on the Functioning of the European Union.

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The European Commission encourages the interoperability of trains

The Commission has adopted today measures to strengthen the European system of train control (ETCS).

ETCS is the European standard for train signalling and speed control. Deployment of ETCS across key freight and high speed corridors will greatly improve the competitiveness of European railways.

The ETCS concept is simple: information is transmitted from the ground to the train, where an on-board computer uses it to calculate the maximum authorised speed and then automatically slows down the train if necessary. ETCS is part of the European Rail Traffic Management System (ERTMS).

Currently, there are more than 20 different signalling systems in operation in Europe and their incompatibility is a major technical barrier to international traffic. For example, adding an additional national safety system in an existing locomotive, already authorised in different countries, and obtaining again all safety authorisations may cost more than €2 million and take more than two years. ETCS will eliminate these costs.

However, ETCS will only bear its fruits if products are fully compatible and conform to the European specifications. The decision adopted today strengthens the requirements regarding testing, in particular that on-board products are tested in accredited laboratories.

Technical background

The concept of European Train Control System (ETCS) is not new: there are over 20 national systems for automatically controlling the speed of trains. Unfortunately, these national systems are incompatible with one another. To be able to circulate on networks equipped with different systems, either the engines must be changed at the borders (which means a considerable amount of time is lost) or the engines must be equipped with different on-board systems compatible with the different track systems used by the different networks (which increases costs and the risks of breakdown). Either way, this creates a rift in the single market and an obstacle to free movement.

This has an especially adverse impact on goods transport. Although rail transport should be more competitive over long distances, each border adds significant extra costs and delays, translating into market losses and saturation of the road network.

The European Rail Traffic Management System (ERTMS) could significantly increase the competitiveness of rail transport. This is particularly true for freight when the system is deployed in a coordinated manner along a corridor and is accompanied by relevant measures, such as harmonisation of the operating rules or enhancement of the infrastructure if necessary. On the Rotterdam-Genova corridor, for example, the volume of goods transported could be doubled by 2020, which would be the equivalent of one more heavy goods vehicle passing along this route every 37 seconds.

The ERTMS is a major industrial success for Europe. Its performance and its cost mean that it has rapidly gained acceptance even beyond Europe and it is currently the global reference standard, used on all new lines.

Today, in Europe, more than 4000 km of lines are equipped with ETCS. Moreover, the equipment of more than 4000 additional kilometres has already been contracted, thus indicating that the length of ETCS equipped lines will more than double over the next two or three years and the equipment rate is expected to further increase over the coming years.

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The European Union backs greener traffic management

The three-year project, titled THE ISSUE, brings together five European regions in the United Kingdom, Italy, France and Poland.

With a EUR 2.7 million boost as part of the ‘Regions of knowledge’ Theme of the EU’s Seventh Framework Programme (FP7), the project partners will support scientists, engineers and development agencies from the different regions to work together and develop more effective methods of easing road congestion and improving the urban environment.

Traffic management systems use information and communication technologies (ICT) applied to both transport infrastructure and vehicles in order to improve life on the roads for everyone. This can be in terms of safety, reliability or even productivity. Increasingly, traffic management systems are also addressing the need to tackle environmental factors.

The ultimate aim is to influence future policy so that traffic management systems that benefit public health and safety are widely implemented. The main trouble areas when it comes to traffic management are how transport impacts on urban mobility, how green our transport system is, and the health, safety and security of citizens.

In THE ISSUE project diverse technologies and research applications will be used to tackle these traffic management issues. One such example is the integration of computer intelligence solutions and real-time satellite navigation data into existing operational urban traffic management systems. Two other practical approaches are space and in situ measurements to help mitigate risk to citizens’ health from traffic-induced air pollution, and technology demonstration and pre-operational real-time trials of a hydrogen fuel cell-powered car operating in a city environment.

The project is being headed up by researchers from the University of Leicester and Leicester City Council in the United Kingdom.

Councillor Rory Palmer from Leicester City Council spoke about the project: ‘Making Leicester a low carbon city is one of our main priorities and this kind of research will be essential to helping tackle issues around congestion and air quality in the future. I am proud that the city council can help make this work possible.’

Project leader Professor Alan Wells from the University of Leicester’s Space Research Centre said: ‘With the EU funding we have secured, we can now coordinate different research activities in the same general areas of traffic and the environment that are being carried out by partners from across Europe. These sort of outcomes have never been brought together in this way before.’

The main objective of the ‘Regions of Knowledge’ Theme of the FP7 is to promote knowledge exchange and cooperation between European regions so as to stimulate economic growth and job creation. THE ISSUE project aims to create vibrant partnerships between different regional research clusters to bring together and coordinate existing and forthcoming research and technological development (RTD) programmes relevant to traffic, health and the environment.

The idea is that by holding consultations, participating regional and local authorities can identify economic priorities specific to certain regions, and ensure that their research priorities are in line with their traffic, health and environment policies.

‘The scientific teams at the heart of the project will be working closely with the bodies responsible for managing traffic, transport and air quality in the UK and European regions to explore how this research can be of value to them,’ says Professor Alan Wells. ‘Our aim is to draw on the strengths of industry and academics working in partnership. We have to be mindful at all stages of the connection between research, policy and how what we are developing can make a difference to the quality of people’s lives.’

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Charlemagne Youth Prize 2012

The deadline for the submission of applications has been postponed to 13th February.

Role models for young Europeans

The Charlemagne Youth Prize, which is jointly organised by the European Parliament and the Foundation of the International Charlemagne Prize of Aachen, is awarded to projects undertaken by people between 16 and 30 years old and helping to promote understanding between peoples of different European countries. The winning projects should serve as role models for young people living in Europe and offer practical examples of Europeans living together as one community. Youth exchange programmes, artistic and Internet projects with a European dimension are amongst the projects selected.

Total prize money of 10,000 Euros

The three winning projects will be awarded funding of €5,000, €3,000, and €2,000 respectively. They will also be invited to visit the European Parliament. Representatives of the best projects from each of the 27 EU Member States will be invited to Aachen, in Germany, on 15th May 2012, to participate in the award ceremony.

2011 winners

In 2011, the UK online lifestyle magazine “Europe & Me” created by young Europeans for young Europeans in 2007 was awarded the first prize in the European Charlemagne Youth Prize competition. The second and third prize went to “Balkans Beyond Borders”, a short-film project from Greece, and to the “Escena Erasmus Project” (Spain), a project addressed mainly to Erasmus students, encouraging cultural and linguistic exchanges, respectively.

Application forms, which are easily filled in, are available in 22 languages on the European Parliament’s Charlemagne Youth Prize website

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The European Economic and Social Committee wishes an integration of energy policies.

The EU advisory body has today championed the idea of setting up a European Energy Community (EEC), creating an EU-wide internal energy market and shaping a common, strategic approach to energy issues.

The idea was first mooted by Jacques Delors, a former European Commission President. The Committee is very much behind the proposal and has expanded on it in its own-initiative opinion entitled Involving civil society in the establishment of a future European Energy Community adopted at today’s plenary session.

Concerned about the dismal progress being made in completing an internal market for electricity and gas, the EESC bleakly pointed out that only 10% of electricity transited between countries, consumers were unable to choose an operator established abroad possibly offering more attractive terms, energy poverty was increasing, network planning was largely a national business, and the EU did not negotiate with supplier countries as a single bloc, putting member states and the EU at a disadvantage.

In a bid to build an integrated EU energy market, the EESC stressed the importance of a joint approach to energy production, transmission and consumption, and said Member States should act “responsibly” in this field. It vented its frustration with some countries’ unilateral decisions on energy choices, saying that “in a spirit of solidarity and efficiency” such decisions should have been taken “by common accord at EU level” instead. It also warned against prematurely ditching any low-emission energy source as that might jeopardise the EU’s energy policy objectives.

As a first step towards a European Energy Community, the EESC endorsed the idea of creating regional energy blocs within which countries and operators would coordinate their key decisions on energy mix and network development. “Not only would this generate considerable economies of scale and industrial development linked to new energy sources,” said Pierre Jean Coulon (France, Workers Group), rapporteur of the opinion. “It would also lead to a gradual integration of hitherto separate markets and cause prices to align.”

As budgets are squeezed and the development of new energy sources becomes ever more expensive, it was crucial to pool national resources and channel them towards projects that are in keeping with the EU’s objectives, said the EESC. It also favoured using bonds to finance these projects.

The EESC backed Mr Delors’ idea of creating “a European gas purchasing group” to strengthen the bargaining power of Member States and companies. It suggested establishing a common supply structure for gas and other fuels that would ensure consistency in negotiations and contribute to reducing prices. The EESC was adamant that the European Commission was best placed to negotiate energy agreements with third countries on behalf of Member States, should they have an impact on several EU countries. The Commission should also be allowed to ensure national energy deals with third countries are in line with EU internal market rules and security of supply’s objectives before they enter into force, said the Committee.

Given the all-encompassing impact of energy decisions, the public could not be left out of the debate, said the EESC. It thus proposed setting up a European civil society forum tasked with monitoring energy issues. The forum would work closely with European institutions and establish dialogue mechanisms with civil society representatives in Member States. “Energy policy is an area where winning public acceptance is of crucial importance and that can only be achieved through fair and transparent information,” said Mr Coulon.

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A new look for CORDIS

The site offers a new database for its projects.

The European Union has some of the world’s best research facilities and most accomplished researchers. Harnessing their full potential will help turn novel ideas into jobs, green growth and social progress. To facilitate this, the European Commission finances, either wholly or partially, a wide range of individual research and technology development projects. Details about many of these can be found on the Community Research and Development Information Service (CORDIS) - the primary information source for EU-funded projects.

A new Projects Service, launched on 16 January 2012, will enhance the role of CORDIS. Designed not only to be a comprehensive reference point for project participants, coordinators and stakeholders, the service will also make information and data available to wider audiences.

CORDIS has project records covering a myriad of science, technology and research-related fields and topics. Dating from before 1986 to the present, they relate to not only the Seventh Framework Programme (FP7), but also previous Framework Programmes. The new service will use the breadth of the CORDIS repository as a base to bring together a wide variety of information related to individual projects, including:
- project details such as description, funding, programme;
- project results such as documents, reports, summaries;
- links;
- publications;
- multimedia;
- information and details on project participants.

The new Projects Service will unlock content, standardise the presentation of project information, and help users to find out more.

Project records are added to the database once they are made available to CORDIS by the Commission service responsible. The new service provides tools and pointers that can help filter and facilitate search queries.

Even when a project has finished, specific project information can help with result development, the planning of new initiatives, the indication of new research avenues and more.

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