The previous chapter has shown that, in partnership with local stakeholders and with appropriate support to local project developers, sub-regional organisations can secure good quality Structural Funds projects in line with EU objectives for innovation and competitiveness, growth and jobs, environmental protection and sustainable development.
However, sub-regional organisations also design and implement projects of their own, delivering high quality, relevant outcomes on time and to cost. To do this they typically access a wide range of EU and domestic funds.
In the SRN project we have shared our experience in identifying and accessing different funds for doing projects, and in securing match funding to lever EU contributions, but we have also considered how available funds may be targeted and managed in a more integrated way, for the benefit of our localities.
Where responsibility for the management and delivery of several funding programmes is devolved to sub-regional level, so that they have a degree of control over the budgets, these organisations have a particular opportunity to devise ways of integrating these tasks so that the available funds are used as effectively as possible.
It is important to get match funding arrangements right if the most effective use is to be made of EU resources. Within SRN, only the partners from Italy have been able to access dedicated national resources put in place specifically to lever EU funds.
Elsewhere match funding is generally secured on a project-by-project basis, mainly through national sectoral programmes. These do not always correspond with Structural Fund programmes in terms of grant criteria and timescales for submissions and decisions. This can lead to major administrative difficulties for project managers and promoters.
In the 2000-06 funding period there were opportunities to develop ERDF and ESF-funded projects within many of the Objective 2 programmes, though usually under separate Priorities or Measures. In general, though, many sub-regional organisations use a much larger range of funds to support local initiatives, with those not eligible for mainstream Structural Funds often being most creative in identifying and accessing alternative EU programmes.
EU financial regulations do not allow funds from one EU programme to be used directly to match fund another. However, it is possible to use the various budgets in a complementary way to develop a cluster of projects supporting a broad policy objective.
Increasingly, sub-regional organisations are developing integrated projects and clusters of projects on Lisbon and Gothenburg themes. Of special interest are:
both in ways that protect or improve the environment or the quality of life.
Up to now, much of this activity has been incremental, but we are now convinced that, to achieve really significant outcomes, these actions need to be planned. In this chapter the more strategic capabilities of sub-regional organisations are highlighted.
In common with many regional authorities, local authorities and other public sector sub-regional organisations across Europe, all SRN partners are routinely involved as leaders or partners in projects on innovation and sustainability themes using different EU funds.
Project example: Elionor in Diputacio de Barcelona
Project example: RSI - Corporate Social Responsibility Model in Modena
Ways need to be found to evaluate the outcomes of projects like these against innovation and sustainability criteria.
Marche Region, with SRN partner SVIM, has led the INTERACT-funded project ALSO. Although specifically intended for use in the evaluation of Lisbon strategy delivery through INTERREG-funded projects, the ALSO methodology could be adapted for local application, especially by incorporating indicators relating specifically to local strategies, and by making links to considerable existing efforts to measure improvements in environment, quality of life and sustainability using indicators.
ALSO has 15 partners drawn from Strands A, B and C of INTERREG. It runs from June 2005 to October 2007 and has a budget of about 1.3m EURO.
The partners in ALSO have developed and tested a common methodology and set of indicators based on the 24 EU Guidelines for growth and jobs to be used mainly by programme managers in evaluating the impact of projects from all three strands of INTERREG on delivery of the Lisbon goals. An additional grant has been provided for the development of software based on the evaluation model. This will be made available to other project managers and evaluators. For example it may be used in assessing future territorial cooperation project applications. Other outputs of the ALSO project include a Good Practice Manual, conferences and other dissemination activities. The new INTERACT JTS and Managing Authorities will be trained in using the model to analyse future INTERREG experiences.
Lille Métropole is developing some innovative eco-projects and eco-management schemes. These are important in dealing with EU-programmes. The reasons for involvement in this work are not only financial but include a desire for better dissemination, an interest in sharing experience with other European cities, and support for lobbying, especially to persuade the European Commission’s Directorates General on Transport and Energy and the Environment to take local innovations into account.
Lille Métropole is developing biogas-fuel production from organic waste (sorted household waste and sewage sludge) for its gas-driven buses and waste trucks. The ultimate objective is to achieve a 100% clean public transportation service as well significantly reducing the environmental impact of waste transport in the local area.
In pursuit of this policy goal, Lille Métropole has set up research and development projects under the European Research Framework Programmes, specifically the THERMIE, CIVITAS (www.trendsetter-europe.org) and Biofuel cities (www.biogasmax.eu) sub-programmes. Under the Biogasmax project, Lille Métropole is lobbying with its project partners as regards gaps in current bio-fuels legislation relating to biogas.
The related biogas equipment overhead costs have partly been met by ERDF funds under Objective 2 during the last programming period. An organic waste recovery centre has been co-funded by an EIB loan.
Progress has depended upon close cooperation between Lille Métropole’s European officers and the relevant technical departments. These departments are now proposing new ideas for EU projects and there is also political dialogue between the local level and the European Commission. Next steps are likely to involve lobbying to enable Lille to join the EU CO2 trading scheme.
Lille Métropole is also making a contribution to EU initiatives for Sustainable Urban Development. Some of Lille’s projects dealing with sustainable development have been co-financed by Objective 2, but when DG Environment launched its Thematic Strategy on the Urban Environment1 and subsequently issued calls for proposals through the Community Framework for Cooperation to Promote Sustainable Urban Development, Lille Métropole set up a large European partnership in the EUROCITIES and POLIS network to develop and pilot the approaches called for in the Strategy.
The PILOT (www.pilot-transport.org) and LIVEABLE CITIES (www.deepmedia.be/eurocities/liveable) projects have developed guidelines and tools for use by cities in the development of Sustainable Urban Transport Plans and Sustainable Urban Management Plans, both called for in the Thematic Strategy as key elements for meeting the Göteborg objectives. Bristol City Council was also a partner in LIVEABLE CITIES.
Marche Region’s use of different EU budgets to support innovation in different business sectors over several years provides an example of a territory using an established set of regional objectives – though not necessarily a formal strategy – to structure project activity.
Marche has long experience in using EU funding programmes to promote innovation in SMEs, supporting clusters of enterprises in different sectors, such as mechanical engineering, yacht construction, textiles, shoes and wood products. The Region works with academics and other regional and municipal bodies and contributes its own funds with the aim of securing a multiplier or ‘domino effect’, encouraging new ideas and partners to access EU funds and persuading SMEs to work as a group.
In the Objective 2 programme for Marche Region 2000-06, SMEs were considered the key factor for economic development. However, SMEs often have difficulty in finding resources and staff, lack the means to take risks, or have other weaknesses, for example in terms of environmental impacts. The challenges are both environmental and innovation-related. Various Objective 2 Measures were designed to tackle them.
The needs of SMEs in Marche Region have especially been addressed through the provision of common support services like those delivered by Meccano SpA, an initiative supported by several different EU programmes.
Meccano SpA is a non-profit high tech innovation centre originally set up in 1988 with funding from the Integrated Mediterranean Programme (PIM) and recently supported by Objective 2. The centre ‘s main focus is mechanical engineering. It provides subsidised, strategic services to a cluster of as many as 600 SMEs, providing support on high technology services and technology transfer, specialised training, collaboration with universities etc, and services used to improve standards, for example on energy consumption. The focus is on strategic factors contributing to the competitiveness of regional SMEs.
Specific services offered by the Meccano centre include :
On the human resources side, Meccano in partnership with a range of stakeholders (such as the Engineering Faculty of the Polytechnic University of Marche and FORM.ART.Marche) has obtained an ESF grant to train specialists in Mechanical industrial Design. The training includes on-the-job experience and is targeted at both employed and unemployed young people and adults. Meccano designs and runs the courses for all SMEs in the cluster, for example providing training in CADCAM industrial design which is otherwise very costly to obtain.
Two further ESF grants are supporting training for unemployed young people with university and/or high school education. The first enables Meccano to provide specialist training on quality systems and control techniques. Further funds have been received for training on ICT for sustainable enterprise development. This training is delivered in partnership with the EMAS school of Ancona Chamber of Commerce and the Fabriano Employment and Training Centre.
Other examples of the use of EU funds to support regional objectives relating to Lisbon and Gothenburg themes in Marche include :
The further example of Lille Métropole Communauté Urbaine demonstrates what can be achieved by means of a well-informed, joined-up approach at the level of the city-region.
Lille Métropole has been using different EU budgets to progress local strategic objectives in line with Lisbon and Gothenburg priorities for more than 10 years. An example is the effort to replace all the city’s buses with biogas-fuelled vehicles, described above.
Since 2000 Lille Métropole has targeted the ERDF as a key funding source. The city has been a major beneficiary of Objective 2, and its closeness to international borders has boosted engagement in INTERREG III. Lille Métropole has also been responding to European Commission calls for proposals, accessing mainly the Research Framework Programmes, LIFE Environment and the Community Framework for Cooperation to Promote Sustainable Urban Development. EIB loans have been obtained for large-scale urban infrastructure.
Comparing funds received with the time and effort needed for successful bidding, Lille Métropole officials have come to the view that involvement in INTERREG is beneficial for co-financing local actions and for sharing experience and dissemination. Participation in European Commission calls should be focussed on very innovative and integrated projects which are both a valuable means of marketing the city locally, nationally and at European level and an opportunity for European lobby. Through such projects Lille has also expanded its use of public private partnerships, an area in which France has lagged behind some other EU countries.
In future Lille expects decreased availability of ERDF resources in the Competitiveness and Employment Programme, with no sub-regional delivery of an urban priority. Territorial cooperation funds will become more important, and a cross-border agency will be established to deliver them politically, technically and financially.
The approach in Lille Métropole has emerged incrementally over 10 years of work. The Lille Métropole staff are focussing on 12 integrated flagship projects as a means to establishing a long-term strategy. These projects reflect the city’s main policy orientations, aiming to develop cooperation at both local and European levels and to achieve the best combination of available EU resources to meet identified policy goals.
The experience of Lille reinforces the importance of project management structures within a local authority and for continuity of staffing so that in-house expertise can be built up. Lille Métropole has set up a ‘triangular’ technical and administrative structure to manage projects, with a single contact point for external partners in the European Affairs Department, a Technical Officer and a Financial Reference Point. In the next funding period there will be an internal technical platform to help conceive and implement an effective EC funds strategy for local flagship projects.
The experience of both Marche and Lille Métropole demonstrates that it is possible to develop a very strategic approach to the use of different budgets incrementally over several years, with effective outcomes along the way, but in the absence of a formal plan. However, this depends on having a clear idea of key policy objectives for the local area and staff with a good understanding of different European and domestic programmes and the opportunities they present.
To put initiatives like this on a firmer footing requires a planned approach so as to move towards a directed and integrated system, rather than pursuing one action at a time in response to new funding opportunities.
Other sub-regional partners share this view.
For example, to frame its efforts in developing a more integrated approach to regeneration, Cumbria County Council has developed a sub-regional strategy for the whole county, bringing urban and rural regeneration work together.
In Cumbria the County Council is the Accountable Body for Structural Funds implementation, providing an ‘umbrella’ financial management function. As in Bristol, Action Plans have been prepared for local implementation. Six plans provided direction for Objective 2, covering the three priorities of the Programme, and there have been two Leader+ LAGs, each with their own plan. Local implementation plans also apply to the domestic programmes such as the Market Towns initiatives.
Up to now the policy framework for spending has been provided by several different strategic plans drawn up at regional level, the most influential being the Regional Economic Strategy and Regional Spatial Strategy. At a Cumbria level, partners have taken the initiative in developing a regeneration action plan for the county in conjunction with a new single delivery body, Cumbria Vision.
The Cumbrian Economic Action Plan (CEAP) is a key document to guide the economic development of Cumbria. Amongst other things, it provides a guide to the use of national and EU funds for economic development. The document seeks to take a long-term view to cope with the ongoing structural change taking place in the Cumbrian economy, yet have detailed actions planned for the short term. To achieve this balance, partners have agreed a 10-year strategy, with a 3-year action plan – so that the actions can be reviewed regularly to ensure they are reaching the longer-term objectives.
Associated with the new Action Plan is the creation of a single strategic organisation and single delivery body for the economy of Cumbria. The two existing regeneration companies will be merged to form a new company, Cumbria Vision. This new organisation will be responsible for delivery of all relevant budgets, including EU and transnational schemes, across the county via a Service Level Agreement with the Regional Development Agency and County Council.
Despite their existing strong role in defining activities to be funded through the various EU programmes and significant control over match funding sources, municipalities in Finland, are now keen to move away from individual, short-term projects to a more strategic approach. They favour the use of structured, multi-annual programmes over 3-5 years.
The city of Tampere has access to substantial EU resources, especially Structural Funds, national budgets like the Programme for Regional Centres, and significant funds of its own. Annual action plans are already used to manage spending against policy objectives. However, it is recognised that a broader integrated strategy is needed to make the best use of available resources. Work to develop a new integrated approach began when it became clear that the whole city and Tampere sub-region would be eligible for the Regional Competitiveness and Employment Programme for 2007-2013. Preparation of the strategy has involved external stakeholders such as companies, universities and schools in establishing a common vision for the future development of the region.
The City of Turku already has a Strategy for Innovation and Business which is expected to guide the development of a programme of investments over the period 2006-2009, with finance from several different sources, including Structural Funds.
This strategy, approved by Turku City Council in February 2006, covers six business clusters which will be the focus of future investments. They focus on Bio-technology, Applied ICT, Maritime industry, Logistics, Tourism and Creative knowledge-intensive enterprises. Three inter-sectoral development programmes have also been specified - the Enterprise Programme, Knowledge Capital Programme and Innovation Programme.
Leadership of the Innovation and Business Strategy rests with Turku’s Deputy Mayor for Competence and Business Development. The City Council has assigned responsibility for implementation of each of the strategy themes to various organisations in the sub-region.
Finance for the measures in the Strategy will come not only from the City of Turku but from many other sources, including Structural Funds. Joint projects implemented with the business sector will bring in private finance. Participation in national and regional Centre of Expertise programmes will be a key means for implementing the strategy. The increasing national and European level of public investment in research and development work is expected to open up significant possibilities. Participation in other EU programmes with national and international partners will bring additional resources to projects related to the Strategy.
Sub regional bodies are well placed to achieve the essential interaction between European and domestic programmes, responding to local needs and opportunities.
Over time they have developed expertise in taking forward projects and initiatives that both meet both domestic policy goals and help to address the Lisbon and Gothenburg agendas. They do this using a variety of domestic and European funding streams, in some cases using different budgets to support different stages of the work as policy initiatives are progressed.
‘Best value’ has been realised, particularly where it has been possible to achieve effective integration of domestic and European programme criteria and timescales.
Public organisations dealing with a range of funds from different sources- whether overseeing projects carried out by local stakeholders or using the funds to support their own activities - must set up organisational arrangements to manage these budgets.
Some organisations are able to achieve well-coordinated delivery through the management and staffing arrangements they devise, in the absence of a special over-arching strategy. They have been able to relate individual project initiatives to the strategic context set at the regional level, and much can be accomplished by working informally within the strategic parameters set regionally or nationally.
Increasingly, however, local authorities and their partners are realising that there is a need to develop a strategic framework for the sub regional level too, typically through the production of a plan or strategy.
Keys to more strategic working by sub-regional bodies are a good working relationship with the region and the ability to form strategic alliances with their counterparts in other countries. These issues are considered in the next two chapters.
