EU-FUNDS TO GROW YOUR BUSINESS. Bucharest, February 2016 Business Sweden

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1 EU-FUNDS TO GROW YOUR BUSINESS Bucharest, February 2016 Business Sweden

2 THE EU COMMISSION ROMANIA AGREEMENT DEFINES PRIORITIES, BUDGET AND OPERATIONAL PROGRAMS PRIORITIES Improve the regional attractiveness and the sustainable growth of the local economic operators Develop the human capital and tackle the severe social challenges and poverty levels Develop the physical infrastructure, both in ICT and the transport sector Encourage a sustainable and efficient use of natural resources, protection of the environment and adaptation to climate change Build a modern and professional public administration FUNDS AND OPERATIONAL PROGRAMS The allocation for Cohesion Policy in Romania (approx BEUR)* is from: the European Regional Development Fund (ERDF), Cohesion Fund (CF) and European Social Fund (ESF) Cohesion policy will be delivered by 6 operational programs (OPs): Large infrastructure OP Competitiveness OP Regional Development OP Human capital OP Administrative capacity OP Technical assistance OP ADDRESSING THESE PRIORITIES WILL BENEFIT ROMANIA COMPLYING TO THE EUROPE 2020 STRATEGY * ADDITIONAL EU FUNDING SUCH AS COMMON AGRICULTURAL POLICY FUNDS NOT INCLUDED SOURCES: MINISTRY OF EUROPEAN FUNDS, EUROPEAN COMMISSION, BUSINESS SWEDEN ANALYSIS BUSINESS SWEDEN 19 FEBRUARY,

3 MINISTRY FOR EUROPEAN FUNDS IS RESPONSIBLE FOR MOST OF THE OPERATIONAL PROGRAMS Structural and Cohesion Funds Cohesion Fund (CF) European Regional Development Fund (ERDF) European Social Fund (ESF) Large Infrastructure OP Competitiveness OP Regional Development OP Technical Assistance OP Human Capital OP Administrative Capacity OP Ministry for European Funds Ministry for European Funds Ministry for Regional Development Ministry for European Funds Ministry for European Funds Ministry for Regional Development Specific Intermediary Bodies (IB) THE ABSORPTION OF THE EU FUNDS SHOULD BE BETTER DUE TO THE SIMPLIFICATION OF THE INSTITUTIONAL STRUCTURE SOURCES: MINISTRY OF EUROPEAN FUNDS, BUSINESS SWEDEN ANALYSIS BUSINESS SWEDEN 19 FEBRUARY,

4 EU FUNDS SUPPORT AREAS THAT BENEFITS ROMANIA TO REACH ITS ECONOMIC POTENTIAL MAJOR INVESTMENT PRIORITIES Development of modern transport, energy and ICT infrastructure Creation of a business environment that supports innovation Increasing society s professional activity by improved employment policy, social inclusion and education Development of environmentally friendly resourceefficient economy EXAMPLE - CHOSEN EXPECTED RESULTS national coverage for broadband with at least 30 Mbps, in particular in rural areas develop the size and reliability of transport network - benefiting of 20% of ESIF allocation 2% of GDP invested in R&D reaching the 70% national employment target (benefiting of 2.2 million people) reducing the early school leaving to 11.3% participation in tertiary education up to 26.7% reducing by the number of people at risk of poverty water & waste water services - completing the compliance for localities above inhabitants and partially for those above % target for expansion of renewable energy INVESTMENTS AIM AT BOOSTING ROMANIA S COMPETITIVENESS AND INNOVATION CAPACITY SOURCES: MINISTRY OF EUROPEAN FUNDS, BUSINESS SWEDEN ANALYSIS BUSINESS SWEDEN 19 FEBRUARY,

5 ROMANIA IS THE 4 TH LARGEST BENEFICIARY OF EU FUNDS*, RECEIVING 22.5 BEUR FOR TOTAL EU ALLOCATION (IN BEUR) 100% = 347 TOTAL EU ALLOCATION (IN BEUR) 100% = 351 EU FUNDS DISTRIBUTION PER COUNTRY (IN BEUR)** Country EU funds Poland 83 Italy 32 Spain 29 Other EU member states; 328 Other EU member states; 328 Romania 22.5 Czech Republic 22 Hungary 22 Portugal 22 Germany 19 France 16 Romania % Romania 22.5 Sweden THE COHESION FUNDS ALLOCATION FOR HAS GROWN BY 18% COMPARED TO * EU FUNDS RELATED TO COHESION POLICY. ADDITIONAL EU FUNDING SUCH AS COMMON AGRICULTURAL POLICY FUNDS NOT INCLUDED ** ROUNDED VALUES SOURCES: MINISTRY OF EUROPEAN FUNDS, EUROPEAN COMMISSION BUSINESS SWEDEN 19 FEBRUARY,

6 FUNDS ALLOCATION HAS INCREASED FOR MOST OF THE OPERATIONAL PROGRAMS COMPARED TO BEUR Infrastructure and environment Regional development Human capital Competitiveness Administrative capacity Technical assistance FUNDS ALLOCATED FOR REGIONAL DEVELOPMENT ALMOST DOUBLED SOURCE: MINISTRY OF EUROPEAN FUNDS; EUROPEAN COMMISSION BUSINESS SWEDEN 19 FEBRUARY,

7 INFRASTRUCTURE, REGIONAL AND HUMAN CAPITAL DEVELOPMENT GOT 90% OF EU FUNDS DISTRIBUTION OF FUNDS (IN BEUR) 100% = 22.5 BEUR Administrative Capacity 2% Technical Assistance 1% Competitiveness 6% Human Capital 19% Large Infrastructure 42% Regional Development 30% INFRASTRUCTURE WAS ALLOCATED THE BIGGEST SHARE OF EU MONEY SOURCE: MINISTRY OF EUROPEAN FUNDS BUSINESS SWEDEN - ROMANIA 19 FEBRUARY,

8 LARGE INFRASTRUCTURE PROGRAM IS MOSTLY DEDICATED TO TRANSPORT DEVELOPMENT DISTRIBUTION OF FUNDS (IN BEUR) 100% = 11.8 BEUR* EXAMPLE ACTIONS What Beneficiaries Safe and clean energy 2% Adaption to climate changes 5% Environment protection 4% Increasing the efficiency of the DHPs 2% Development of a multimodal transport system 17% Development of the environment infrastructure 29% Development of the TEN-T and subway networks 34% SOURCES: MINISTRY OF EUROPEAN FUNDS, BUSINESS SWEDEN ANALYSIS * 9.42 EU FUNDS NATIONAL Sustainable electricity and gas transport systems 7% Construction and modernisation of the TEN-T network (highways, express roads, national roads) Modernisation of water ways and ports on the TEN-T Modernisation of airports Bucharest s underground infrastructure development Soil decontamination Flood prevention Fire fighters and ambulance service modernisation Building or rehabilitation of waste water treatment plants Erecting or modernising of biomass and biogas energy production capacities Modernisation of DHPs Public national administration and local authorities Infrastructure operators of road, rail, water ways, ports, airports Sector specific beneficiaries e.g. Metrorex Research institutes, universities, NGOs, SMURD Public administration and local authorities Infrastructure operators of waste water treatment and district heating plants and waste management Central and local public institutions and authorities, enterprises BUSINESS SWEDEN 19 FEBRUARY,

9 REGIONAL DEVELOPMENT PROGRAM AIMS AT IMPROVING THE REGIONAL ATTRACTIVENESS DISTRIBUTION OF FUNDS (IN BEUR) 100% = 8,25 BEUR* EXAMPLE ACTIONS Cadastral & registration system 4% Education - infrastructure development 4% Cultural heritage's conservation & protection 6% Health and social infrastructure 9% Technical assistance 3% Improve SME s competitivene ss 11% Technological transfer 2% Regional transport infrastructure 13% Sustainable tourism 1% Urban disadvantaged communities 1% R&D activities taken up by companies; 3,9; 45% Sustainable urban development 17% What Strengthening research, technological development and innovation Support for the sustainable development of the local SMEs Enhancing access to information and communication technologies (Digital agenda) Supporting the implementation of energy efficiency solutions in public buildings Developing the urban transport systems by using ecological (electric) solutions Beneficiaries Enterprises (mainly SMEs) and consortia Academic and research units Public administration and local authorities Enterprises (mainly SMEs) and consortia Clusters coordinators Enterprises Public administration and local authorities SOURCES: MINISTRY OF EUROPEAN FUNDS, BUSINESS SWEDEN ANALYSIS * 6.7 EU FUNDS NATIONAL BUSINESS SWEDEN 19 FEBRUARY,

10 HUMAN CAPITAL PROGRAM FOCUSES MAINLY ON EMPLOYMENT RATE AND EDUCATION DISTRIBUTION OF FUNDS (IN BEUR) 100% = 4,3 BEUR EXAMPLE ACTIONS What Beneficiaries Technical assistance 6% Jobs for youth 5% Local development & community responsibility 5% Jobs for Youth and Jobs for All programs Employment centers and agencies Employers organizations Enterprises (mainly SMEs) NGOs Improving the situation of young people 8% Education and skills 29% Internships, trainings, postgraduate courses for increasing the employment rate Public administration and local authorities Academic units Effective public policies 21% Jobs for everybody 25% Integrated actions for supporting the deprived or marginalised communities and in rural areas Public administration and local authorities Enterprises (mainly SMEs) NGOs SOURCES: MINISTRY OF EUROPEAN FUNDS, BUSINESS SWEDEN ANALYSIS BUSINESS SWEDEN 19 FEBRUARY,

11 COMPETITIVENESS PROGRAM STRENGTHENS MAINLY THE R&D AND INNOVATION DISTRIBUTION OF FUNDS (IN BEUR) 100% = 1.5 BEUR EXAMPLE ACTIONS What Beneficiaries Development of a national R&D network Research units Public administration and local governments ICT for competitive digital economy 40% RDI supporting economic competitivene ss and business development 60% Developing solutions for e- governance and cloud computing Signing of Knowledge Transfer Partnerships Crediting facilitation for SMEs Telecommunication companies Public administration and local governments Enterprises (mainly SMEs) NGOs SOURCES: MINISTRY OF EUROPEAN FUNDS, BUSINESS SWEDEN ANALYSIS * 1.3 EU FUNDS + 0,2 NATIONAL BUSINESS SWEDEN 19 FEBRUARY,

12 ADMINISTRATIVE CAPACITY PROGRAM IS TACKLING THE ADMINISTRATIVE AND JUDICIAL SYSTEMS REFORM DISTRIBUTION OF FUNDS (IN BEUR) 100% = 0.55 BEUR EXAMPLE ACTIONS Accessible and transparent public administration and judicial system 37% Technical assistance 4% Efficient public administration and judicial system 59% What Improving the public procurement legislation and procedures Increasing of the transparency Corruption preventing measures Beneficiaries Public administration and local governments Public institutions SOURCES: MINISTRY OF EUROPEAN FUNDS, BUSINESS SWEDEN ANALYSIS BUSINESS SWEDEN 19 FEBRUARY,

13 TECHNICAL ASSISTANCE WILL FOCUS MAINLY ON INCREASING THE EFFICIENCY OF HUMAN RESOURCES DISTRIBUTION OF FUNDS (IN BEUR) 100% = 0.25 BEUR EXAMPLE ACTIONS What Beneficiaries Creating and diseminating of information material on ESIF Enterprises Public institutions and authorities NGOs Reinforcing the capacity of the beneficiaries to prepare and implement ESIF financed projects 31% Support for the coordination, management and control of the ESIF 26% More efficient resources for coordination, management and control of the ESIF 43% Training of the human resources involved in the coordination, management and control oof ESIF Public institutions and authorities SOURCES: MINISTRY OF EUROPEAN FUNDS, BUSINESS SWEDEN ANALYSIS BUSINESS SWEDEN 19 FEBRUARY,

14 PRIORITISED INDUSTRIES - BASED ON AVAILABILITY OF EU FUNDING AND SWEDISH COMPETITIVENESS Two of the operational programs stand for 72% of the EU Cohesion Funds Large Infrastructure Operational Program (42%) Regional Operational Program (30%) Within these programs, there are specific types of support for projects aiming at Urban and transport Infrastructure Environmental technology Renewable energy and energy efficiency This creates opportunities for e.g. service and manufacturing companies within Road and railway construction industry Generation and distribution of electricity Solid and water waste treatment/ management Environmental technology products for the construction industry SOURCE: BUSINESS SWEDEN ANALYSIS BUSINESS SWEDEN 19 FEBRUARY,

15 EU GRANTS FOR COMPANIES EXAMPLE (1 OF 3) AVAILABLE GRANTS FOR COMPANIES STARTING JANUARY 2016 Energy production from renewable sources Program and Management Authority The Large Infrastructure Operational Program Action 6.1 Ministry of European Funds Eligible applicants Companies that produce energy for selling it Eligible activities The construction and modernization of energy production capacities (electric and thermal energy) from biomass and biogas The construction and modernization of thermal energy production capacities using geothermal energy The project must be located in one of the regions W, N-W, C, N-E, S-E, SM, S-W Maximum grant value The maximum grant value can be of EUR Grant percentage The grant percentage is between 60% and 80% from the eligible expenses, depending on the type of the company Timeframe The call will be opened in Q Selection criteria Maximum score APPLICATIONS SHOULD BE SUBMITTED WELL IN ADVANCE FOR HAVING A REAL CHANCE TO OBTAIN A GRANT SOURCE: BUSINESS SWEDEN ANALYSIS, EU FUNDS CONSULTANCY COMPANY BUSINESS SWEDEN 19 FEBRUARY,

16 EU GRANTS FOR COMPANIES EXAMPLE (2 OF 3) AVAILABLE GRANTS FOR COMPANIES STARTING JANUARY 2016 EU grants for micro-enterprises Program and Management Authority The Regional Operational Program Action 2.1 Ministry of Regional Development and Public Administration Eligible applicants Microenterprises that: Had at least one full fiscal year of activity Had at least one full time employee during this period, and still have one full time employee Eligible activities Construction/modernisation of production or services space Purchase of technologic, energy saving and IT equipment, machinery, licenses, patents, software etc. The project is implemented on an eligible NACE classification code The project is implemented in an urban area Maximum grant value The maximum grant value can be of EUR Grant percentage The grant percentage is of 100% from the eligible expenses Timeframe The call will be opened in Q Selection criteria First-in-first-out, with a minimum score requirement APPLICATIONS SHOULD BE SUBMITTED WELL IN ADVANCE FOR HAVING A REAL CHANCE TO OBTAIN A GRANT SOURCE: BUSINESS SWEDEN ANALYSIS, EU FUNDS CONSULTANCY COMPANY BUSINESS SWEDEN 19 FEBRUARY,

17 EU GRANTS FOR COMPANIES EXAMPLE (3 OF 3) AVAILABLE GRANTS FOR COMPANIES STARTING FEBRUARY 2016 Support for innovative companies in the IT sector Program and Management Authority SOURCE: BUSINESS SWEDEN ANALYSIS, EU FUNDS CONSULTANCY COMPANY The Competitiveness Operational Program Action Ministry of European Funds Eligible applicants SME s working in IT or that are a part of an IT focused cluster, that: The project is implemented on an eligible NACE classification code Doesn t have outstanding tax debt Eligible projects and activities Projects that aim at developing innovative IT products/services/applications Strategic innovative projects with a high impact in the development of all the IT industry, at a national or international level Investments in fixed and mobile assets needed for the development of the IT product, service or application, industrial research or experimental development Innovation services for SME s Maximum grant value The maximum grant value can be of EUR Grant percentage The grant percentage is between 20% and 70% from the eligible expenses, depending on the type of the company and the location of implementing the project Timeframe The call will be opened in Q Selection criteria First-in-first-out, with a minimum score requirement APPLICATIONS SHOULD BE SUBMITTED WELL IN ADVANCE FOR HAVING A REAL CHANCE TO OBTAIN A GRANT BUSINESS SWEDEN 19 FEBRUARY,

18 KEY FINDINGS More funds Romania is the 4th largest beneficiary of EU cohesion funds, receiving 22.5 BEUR 18% more compared to Focus on Infrastructure, regional and human capital development got 90% of EU funds The biggest share of EU money, more than 40%, were allocated for infrastructure Funds allocated for regional development almost doubled, reaching 30% of the total Changes Ministry for European Funds was created The institutional structure was simplified aiming at a better absorption of the EU funds Business opportunities Based on the availability of EU funding and the Swedish competitiveness, the following sectors should offer business opportunities for Swedish companies: Urban and transport infrastructure Environmental technology Renewable energy and energy efficiency SOURCE: BUSINESS SWEDEN ANALYSIS BUSINESS SWEDEN 19 FEBRUARY,

19 HOW TO BENEFIT FROM EU FUNDS 22.5 BEUR EU FUNDS FOR ROMANIA Way of making business with EU-money DIRECT INDIRECT How to benefit from the money INVEST IN YOUR ROMANIAN COMPANY TAKE PART IN EU-FINANCED PUBLIC TENDERS SELL TO COMPANIES WINNING EU-FINANCED PUBLIC TENDERS SELL TO COMPANIES FUNDED BY DIRECT EU MONEY BENEFIT OF EU FUNDING TO REACH YOUR BUSINESS COMPETITIVENESS POTENTIAL SOURCE: BUSINESS SWEDEN ANALYSIS BUSINESS SWEDEN 19 FEBRUARY,

20 FURTHER QUESTIONS? CONTACT BUSINESS SWEDEN ROMANIA DANIEL LARSSON TRADE COMMISSIONER T: M: BUSINESS SWEDEN 19 FEBRUARY,

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