Interreg Europe 2021-2027

1 INTERREG EUROPE 2021-2027 Cooperation Programme document Final v ersion April 202 2 2 CCI 2021TC16RFIR001 Title Interreg Europe Version Final v ersion (1.1 ) First year 2021 Last year 2027 Eligible from 01-Jan-2020 Eligible until 31-Dec -2029 Commission decision number C(2022)4868 Commission decision date 05-Jul-2022 Programme amendi ng decision number Programme amendi ng decision entry into force date NUT S reg ions covered by the progr amme All NUTS2 regions in EU27 + Norway + Switzerland Strand Strand C: IR Interregional Cooperation Programme (ETC) 3 Table of content s 1. Joint p rogramme strategy: main development challenges and policy responses ................................................................................................................................ 5 1.1 Programme area (not required for Interreg C programmes ) ........................... 5 1.2. Summary of main joint challenges ....................................................................... 5 1.2.1. Context of the programme, including EU major strategic orientations ......... 5 1.2.2. Disparities and inequalities across Europe and challenges for regions ............................................................................................................................... 6 1.2.3. Complementarity and synergies with other funding programmes and instruments ..................................................................................................................... 11 1.2.4. Lessons learnt from past experience .............................................................. 14 1.2.5. Macro -regional strategies and sea -basin strategi es where the programme area as a whole or partially is covered by one or more strategies ........................................................................................................................ 15 1.2.6. Strategy of the programme ............................................................................... 15 1.3. Justification for the selection of policy objectives and the Interreg specific objective s, corresponding priorities, specific objectives and the forms of support, addressing, where appropriate, missing links in cross -border infrastructure .......................................................................................... 18 2. Priorities ............................................................................................................................ 19 2.1. Title of the priority (repeated for each priority) ................................................... 19 2.1.1. Specific objective ................................................................................................ 19 2.1.2 Related types of action, and their expected contribution to those specific objectives and to macro -regional strategies and sea -basis strategies, where appropriate ...................................................................................... 19 2.1.3 Indicators ............................................................................................................... 22 2.1.4 The main target groups ....................................................................................... 24 2.1.5 Indication of the specific territories targeted, including the planned use of ITI, CLLD or other territorial tools .................................................................... 25 4 5.1.7 Plan ned use of financial instruments ............................................................ 26 5.1.7 Indicative breakdown of the EU programme resources by type of intervention ..................................................................................................................... 26 3. Financing plan ................................................................................................................. 27 3.1 Financial appropriations by year ...................................................................... 27 3.2 Total financial appropriations by fund and national co -financing .......... 28 4. Action taken to involve the relevant programme partners in the preparation of the Interreg programme and the role of those programme partners in the implementation, monitoring and evaluation ................................... 30 5. Approach to communication and visibility for the Interreg programme, (objectives, target audiences, communication channels, including social media outreach, where ap propriate, planned budget and relevant indicators for monitoring and evaluation) ................................................... 33 6. Indication of support to small -scale projects, including small projects within small project funds ................................................................................................. 35 7. Implementing provisions ........................................................................................... 36 7.1. Programme authorities .................................................................................... 36 7.2. Procedure for setting up the joint secretariat ........................................... 36 7.3 Apportionment of liabilities among participating Member States and where applicable, the third countries and OCTs, in the event of financial corrections imposed by the managing authority or the Commission ...................................................................................................................... 37 8. Use of unit costs, lump sums, flat rates and financing not linked to costs ....................................................................................................................................... 39 APPENDICES ........................................................................................................................ 40 Appendix 1. Union contribution based on unit costs, lump sums and flat rates ...... 40 Appendix 2. Union contribution based on financing not linked to costs .................... 40 Appendix 3. List of planned operations of strategic importance with a timetable Œ Article 17(3). ................................................................................................... 40 Map of the programme area ............................................................................................ 40 5 1. Joint p rogramme strategy: main development challenges and policy r espon ses 1.1 Programme area (not required for Interreg C programmes) Reference: point (a) of Article 17(3), point (a) of Article 17(9) The programme area covers the whole territory of the EU 27 as well as Norway and Switzerland , referred to as Partner States (PS) in this document and corr espon ding to 255 regions in total (242 regions at NUTS 2 level in the EU27, 6 regions in Norway and 7 regions in Switzerland) . 1.2. Summary of main j oint challenges Reference: point (b) of Article 17(3), point (b) of Article 17(9) 1.2.1. Context of the programme , including EU major strategic orientations The European Union ( EU ) is committed to deliver results on several strategies over the coming decades , and the cohesion policy will have a key role to play . The rapid rise of digital technologies is making science and innovation more open, collaborative and global. The European Commission™s policy priorities reflect this through its three goals for EU research and innovation policy, summarised as Open Innovation, Open Science and Open to the World . Europe needs to become more inventive, reacting more quickly to changing market conditions and consumer preferences i f it is to become an innovation -friendly society and economy . The key drivers of research a nd innovation are most effectively addressed at the regional level. To overcome climate change and environmental degradation, t he European Green Deal provides a roadmap for making the EU™s economy sustainable with action to boost the efficient use of resources by moving to a clean, circular economy , restor ing biodiversity and cut ting pollution. It outlines the investments needed and financing tools available and explains how to ensure a just and inclusive transition. The EU is commit ted to becoming climate -neutral by 2050. To achieve this, the European Climate Law propose s to turn th is political commitment into a legal obligation and a trigger for investment. The strategy shows how Europe can lead the way to climate neutrality by investing in innovative technological solutions, empowering citizens, and aligning action in key areas such as industrial policy, finance, or research Œ while ensuring social fairness for a just transition. The UN™s 2030 Agenda for Sustainable Development adopted in 2015 is another major objective for the EU. Adopted in 2015 , this Agenda is a commitment to eradicate poverty and achieve sustainable development worldwide by 2030, ensuring that no one is left behind. The adoption of the 2030 Agenda was a landmark achievement, providing for a shared global vision of sustainable develop ment for all. The Agenda™s scale, ambition and approach are unprecedented. One key feature is that its 17 Sustainable Development Goals are global in nature and universally applicable, taking into account national realities, capacities and levels of develo pment and specific challenges. All countries , regions and cities, have a shared responsibility to achieve the SDGs, and all have a meaningful role to play locally, nationally as well as at the global scale. The recent crises faced by the E U have increase d inequalities in many areas . Working for social fairness and prosperity as part of the EU priority fiAn economy that works for peoplefl and the European Pillar of Social Rights also appear as key driver s for this programme. Individuals and busines ses in the EU , in particular small and medium -sized enterprises, can only thrive if the economy works for them. The EU™s unique social market economy allows economies to grow and to reduce poverty and inequality. With Europe on a stable footing, the econom y can fully respond to the needs of the EU™s citizens. 6 The implementation of all EU strategies need s to fully consider the territorial dimension and limit their potentially negative differentiated impacts. The aim of the Territorial Agenda 2030 is to strengthen territorial cohesion in Europe. This means ensuring a future for all places, by enabling equal opportunities for citizens and enterprises, wherever they are located. Territorial cohesion reinforces cooperation and solidarity and reduces inequalities between better -off places and those with less prosperous outlooks . Cohesion benefit s Europe as a who le and each individual territory . To strengthen cohesion , the Territorial Agenda provides strategic orientations for spatial planning and for strengthening the territorial dimension of relevant policies at all governance levels. The Territorial Agenda 2030 outlines two overarching objectives: (i) a Just Europe that offers future perspectives for all places and people ; (ii) a Green Europe that protects our common livelihoods and shapes societal transition processes . These objectives are broken down into six priorities for the development of the European territory . Interreg Europe may be able to support the response to any form of crisis (e.g., humanitarian , climatic with heath waves for instance, pandemic) should one emerge during its lifetime. In this respect, a t the start of the 2021 -2027 programming period, Europe is fac ing an unprecedented health crisis due to the COVID -19 pandemic , which took hold in spring 2020. This is set to have very severe and long -lasting effects on many economic sectors (e.g., tourism, the cultural and creative sector ) and probably on other issues such as people™s choice of transport mode, consumer habits, way s of life, health , etc. in Europe™s regions. Over the coming decades , the EU must address the challenges arising from th ese effects , along with the ecological transition, the digital transitions and demographic change. All these challenges will have strong impacts on a wide range of policy fields at EU, national, regional and local level s. Public policies will undoubtedly be need ed to help Europ e™s economy and the wider society to recover from the crisis. In this regard, the EU ™s cohesion policy remains essential for support ing the economic and social recovery in EU regions. With this policy, the EU contribut es to the harmonious development across the Union by strengthening its economic, social and territorial cohesion in all EU regions and Member States. Interreg Europe continues to be one instrument of this policy with the potential to accelerat e harmonious de velopment by promoting a large -scale exchange and transfer of experience , peer -learning and benchmarking across Europe. The programme strategy is based on the following key sources of information: a) Seventh report on economic, social and territorial cohesion. My Region, My Europe, Our Future Œ 2017; b) State of the European Territory Œ Contribution to the debate on Cohesion Policy post 2020 - ESPON Œ 2019; c) Territorial Agenda 2030 - 2019; d) Synergies between IE and Smart Specialisation™, JRC Technical Report 2018; e) Evaluation reports Œ Interreg Europe 2014 -2020 programme Œ 2020; f) EC website. 1.2.2. Disparities and inequalities across Europe and challenges for regions The characteristics, situation and prospects of European regions in regard to the challenges and strategic orientations described above are very diverse. As in the previous programming periods, regional diversity in terms of opportunities and needs across the EU calls for tailor -made policies. It calls for a place -based approach that gives regions the ability and means to deliver policies that meet their spec ific needs. The uniqueness of each region is also of enormous added -value for other regions in Europe through various forms of mutual learning. It lays the foundation for the programme™s role in Europe™s push for a smarter Europe, a greener, climate -neutra l and resilient Europe , a more connected Europe , a more social Europe and a Europe closer to citizens. The triennial report on economic, social and territorial cohesion in Europe provides a valuable insight on major trends at work. The 8 th Cohesion Report released in February 2022 highlighted key trends that are relevant for the 2021 -2027 programming period. These include the narrowing of regional disparities and yet the stagnation in southern and south -western areas, especially in non-urba n areas. The Report acknowledges the asymmetric impact of the COVID -19 effects on EU regions, and the sectors that were most negatively affected, such as tourism. 7 Other general trends in the Report point to the fact that further investment in innovation, s kills, governance and digitalisation is needed to keep closing the GDP gap. In addition, the need to invest in environmental protection and clean energy remains as a key driver to ensure sustainability, competitiveness and quality of life. The Report also highlights the transformation that the green transition will bring to the economy. i. Key economic, social and territorial disparities for each of the five EU policy objectives are described below, as well as some crucial policy challenges for European regions, in particular those that are governance -related. In the following descriptions , references are made to large areas across Europe based on the compass points, but the reality is rarely so s imple and existing dis parit ies within each large area should be kept in mind. A more competitive and smarter Europe Innovation in the EU remains highly concentrated in a limited number of regions. In the southern and eastern Member States, innovation performance is poorer and regions close to innovation centres Œ mainly capitals Œ do not benefit from their proximity. It is therefore necessary to develop policies that support technological and non -technological innovation in less developed regions and regions with low diversification and that connect businesses, research cent res and speciali sed services to businesses in different regions. Cultural and creative assets are considered important and unique inputs for these innovati on processes. Despite being drivers of economic development , the concentration of business activities in knowledge economies also contributes to widening the development gap between regions. Regions differ in terms of the intensity and mix of their knowledge and innovation activities , which means they hav e different capacities to innova te and innovation processes of various levels of sophistication . Each territorial innovation pattern can be reinforced by knowledge acquisition from outside the region. Achieving positive regional economic development based on research and innovation depends on ability of regions to capitalise on their assets. A clear core -periphery polarisation exists as a result of the current mechanisms of knowledge production. Regional specialisation patterns by technology use rev eal that technology regions ( i.e., sectors that actively produce technological solutions) are mainly capital city regions. The increased adoption of 4.0 technologies and processes based on cyber -physical systems and the internet of things (IoT) , which requires new patterns of technology production , show s that fiislands of innovationfl can emerge in less advanced regions . From a societal perspective, a specific emphasis needs to be put on the acquisition of digital skills to limit the risk of excludi ng certain groups, such as the elderly, who may not be well prepared for this rapid transformation. SMEs in the EU represent 99% of all enterprises, 5 7% of the value added, and employ 66 % of the EU labour force. SMEs are considered to be the backbone of the European economy. However, regions provide different enabling conditions, challenges, opportunities and threats with respect to SME growth. Local and regional governance is increasingl y important for economic development and competitiveness, as it can support companies in many ways . The role of quality governance systems is therefore crucial and is defined as providing two benefits (i) ensuring transparency in decision making and stability and (ii) fostering entrepreneurship and SME creation . The development of the digital economy and society is uneven across EU Member States. Rural and peripheral regions are vulnerable in the shift towards the digital economy. The d igitally more developed regions of northern and central Europe overlap with the knowledge and innovation regions. Considering the high cost of dig ital infrastructure in territories with geographic challenges , outermost regions , and rural areas, digital connectivity could be supported through local measures aimed at increasing demand through the promotion of ICT use and dematerialisation of services. Larger, more developed cities provide more digital services than small and medium - sized cities, towns and rural communities . The interoperability of public services is thought to be an important 8 factor for reducing digital gaps between countries and regions . Public institutions, civil society and companies should cooperate and exchange knowledge, as this will help to boost the local digital ecosystem and foster the co -creation and delivery of new types of services. Interregional cooperation can contribute to a smarter Europe by enabling European regions to improve their innovation and R&D policies and programmes , particularly their smart specialisation strateg ies . The exchange of experience and policy learning will e nable regions to accelerate and improve the implementation of their regional development policies in key areas , such as : skills development for smart specialisation and entrepreneurship, digitalisation of the economy and society, digital connectivity, the uptake of advanced technologies, innovation in SMEs, and non-technological innovations (organisational, social, etc.) . A greener, climate -neutral and resilient Europe Climate change has different impacts on each of Europe™s bio geographical regions . Observed impacts include changes to the environment, to ecosyst ems, and to the food , water and energy system s. Vulnerability to climate change varies considerably from region to region. Climate change is increasin gly caus ing environmental damage, is adverse ly impact ing well -being and health , and is generating economic losses. In regard to energy, i ncreased efforts will be necessary to make a success of the European Green Deal , the European Climate Pact , and the upcoming ‚Fit for 55™ package and its target to reduce emissions by at least 55% in 2030 . With a view to showing global leadership on renewables, the EU has set an ambitious, binding target of 32% for renewable energy sources in the EU™s energy mix by 2030 . Reaching the EU™s climate -neutral objectives require s infrastructure investments targeting geographically specific renewable energy potentials, increased energy efficiency in regions where resources are scarce, regional cooperation , and an increased focus on bottom -up governance. Rural regions in South ern an d Eastern Europe , most of E astern Europe , and outermost regions are the most vulnerable to energy poverty . Many of these regions have the potential to develop renewable energy, but lack the administrative capacity, the vision or the financial resources. Regional and interregional cooperation can support the deve lopment of stakeholder networks, the transfer of knowledge and practices of sustainable energy supply and consumption across regions, and the alignment of action in support of the energy transition across the different governance levels . The circular economy is making an increasing contribution to meeting the EU™s environmental and climate objectives. It is also a stimulus to local and regional development. The region is a relevant scale at which to organise sustainable economic ecosystems, but the regulatory frameworks at regional and local levels should be adapted to the principles of a circular economy. Implementation and diffusion of circular business models (CBMs) is favoured by agglomer ations (both economic and urban) in proximity to knowledge hubs. Circular economy material providers play a particularly predominant role in rural regions. The transport sector is one of the main contributors to greenhouse gas emissions and air pollution . Public action to support the decarbonisation of transport is therefore more important than ever. The supported actions should be inspired by the European strategy for low -emission mobility , which aims at ensuring a regulatory and business environment that is conducive to meeting the competitiveness challenges that the transition to low -emission mobility implies. In addition, the EU Biodiversity Strategy for 2030 is also an important part of the European Green Deal. It aims at protecting the natural world and reversing the degradation of ecosystems. EU regions have an important role to play by ensuring effective protection of a significant proportion of the land and sea and integrating ecolog ical corridors as part of a true Trans -European Nature Network. The EU Nature Restoration Plan, which is a key part of the Strategy, has the potential to make EU regions not only more nature -friendly, but also offers opportunities to increase their resilie nce to climate change and other environmental risks. Implementing the Strategy will require, 9 however, unlocking substantial funding from regional/cohesion funds and other sources, as well as the involvement of actors at all levels of decision -making. Blue economy is also a pillar of the green transition and will contribute to the sustainable development of the oceans and coastal resources. A number of sectors are key in the blue economy such as marine living resources, marine non -living resources, marine renewable energy, port activities, shipbuilding and repair, maritime transport and coastal tourism. Finally, t he potential area cover ed by green infrastructure ( GI) at the regional level is rel evant to multiple policy frameworks ( e.g., biodiversity, water management , climate change , digitalisation ). Regions with low potential GI network coverage in north -western Europe need to improve the connectivity of existing GI. Regions with high potential GI network coverage should be supported through policies promoting sustainable land use and increased biodiversity. The development of GI can be facilitated by collaboration between local and regional stakeholders, awareness and capacity building, and know ledge exchange between professionals operating at different implementation stages and scales. Interregional cooperation can support European regions to deliver a greener, climate -neutral and resilient Europe , in line with the European Green Deal, by enabling them to integrate successful experiences and policies from other regions into their own regional programmes in areas such as promoting the transition to a circular economy, climate change adaptation, wat er management, pollution prevention, risk prevention and disaster resilience, energy efficiency measures, biodiversity restoration , nature -based solutions and green infrastructures , and sustainable urban mobility . Where relevant, the Interreg Europe programme can promote and enrich the activities and outputs of regional programmes. A more connected Europe Good accessibility is a precondition for economic development. By 2030, the accessibility potential of mountain, rural areas and coa stal regions by road or rail will barely reach 80 % of the European average. Sparsely populated places and islands (including outermost regions) will remain below 20 %. Overall, there are significant disparities in accessibility at the regional and local l evels. Interregional cooperation can contribute to a more connected Europe by supporting policy learning and capacity building in relation to regional policies promoting sustainable , intelligent and multimodal mobility . A more social and inclusive Europe As a result of the 2008 financial crisis, the unemployment rate in the EU reached a record high of 11% in 2013 , dropp ing to 6.2% in late 2019. But the situation is set to deteriorate marked ly in the early 2020s. There are large and long -lasting gap s between regions in terms of employment and unemployment rates, with significantly higher unemployment rates in the countries of southern Europe and in the outermost regions. Youth unemployment varies widely from around 6 % in the countries of central Europe to over 30 % in southern European countries. The employment situation of workers over 50s also remains a n issue of concern in most countries . The data also shows that the employment rate of 35Œ49-year -olds is worsening . Overall, t he average employment rate was 74% in the more developed regions in 2016, while in less developed regions, the average rate was only 65%. The ability of regions to withstand economic shocks and address high unemployment is determined by a combination of factors, including the structure of the economy, labour market flexibility, the level of skills and education, and place -based characteristics, in particular the quality of governance and other specific societal challenges . 10 For example, regional economies dominated by sectors heavily affected by the COVID -19 crisis , such as tourism or the cultural and creative sector s, may experience more severe and prolonged negative socio -economic impacts compared to regions with more diversified economi es. In this context, it will be important to consider how recovery plan budgets and corresponding packages will be used and coordinate d at European, national and regional levels . Working conditions are also of growing interest, with aspirations for a better work -life balance, equal opportunities, the inclusion of vulnerable groups ( e.g., people with d isabilities, migrants, Roma population and other minorities or marginalised groups) , and more flexible forms of work. Moreover, the role and place of pensioners in society should be better addressed in light of the ageing society. As for migration, the specific measures at EU level taken during the most critical years , around the mid -2010s , need to be evaluated and extended where relevant. Among the key lessons, the positive economic impact of the presence of refugees is largely determined by the success of their integra tion into the labour market. Urban and rural contexts require different polic ies for the socio -economic integration of migrants . When considering the social dimension, the important role of local authorities and NGOs in the successful integration of migran ts should be emphasi sed. Europe faces increasing and territorially different demographic challenges. Among these challenges, ageing and depopulation or high -density population may affect many regions, including rural and peripheral areas . At the same time , many metropolitan/urban areas are facing growing populations , with possible severe impacts on social and territorial cohesion, public service provision, labour markets and housing , among others . Access to services of general interest, education, training, healthcare , social care and social protection and inclusion , appears to be especially difficult for vulnerable groups and for people living in specific types of territories, such as rural areas with low accessibility or areas with geographical specificities, including mountains, islands, sparsely populated area s, coastal areas and outermost regions . Cohesion Policy governanc e and implementation mechanisms at the national level, and the regional level where relevant, should support capacity building among local stakeholders and multilevel partnerships (‚policy making ecosystem ™ approach) , interregional networking and cooperati on. In line with the European Pillar of Social Rights, Interregional cooperation can contribute to a more social Europe by supporting policy learning and the transfer of experience on regional policies that will get people back into employment and enhance the effectiveness of labour markets and the integration of migrants and disadvantaged groups . Other k ey fields of action are, for instance, ensuring sufficient and equal access to health care through developing infrastructures, including primary care and specialised health services and enhancing the role of culture and tourism in economic development, well -being, social inclusion and social innovation. A Europe closer to citizens Good territorial governance and cooperation are preconditions to meeting current social, economic, connectivity and environmental challenges across the European territory . The diversity of the European territory in terms of geography, administrative and go vernance settings , and political differences across regions , underlines the importance of tailored, place -based approach es. To ensure no places or citizens are left behind, stronger cooperation between places across territorial boundaries is needed, as well as across sector -based policies. This requires high -quality governance as well as capacity building and the empowerment of the various actors in volved. Interregional cooperation can contribute to a Europe closer to citizens by supporting key areas for the development of effective integrated place -based strategies and policies, which could cover issues like local cooperative digital platforms, bottom -up/local green deal strategies dealing for instance with energy poverty, among other themes. The support could facilitate better spatially adapted governance, as governance for collective action requires capacity for consensus building and long -term commitment. Moreover, experimentation in terms of building governance networks