Josefine Loriz-Hoffmann DG AGRI/G1 “Consistency of rural development“ “Stimulating regional economies through high speed internet access”, 07/05/2009 EU

Josefine Loriz-HoffmannDG AGRI/G1 “Consistency of rural development“

“Stimulating regional economies through high speed internet access”, 07/05/2009

EU funding for broadband under the Rural Development Policy

07/05/2009 Josefine Loriz-Hoffmann 2

ICT policy for rural areas Lisbon strategy and EU Recovery Plan – “broadband for all”

objectives Riga Ministerial declaration: 90% broadband in rural areas by 2010 2008 EU Recovery Plan – 100% coverage by 2010 Internet: One of the major driving factors of economic growth

Strategic guidelines for rural development 2007-13 3 specifically recognised areas for intervention: Agri-food chain, rural

tourism and internet in rural areas

Rural development programmes (ICT situation in rural areas) Confirm the low to average levels of usage and coverage with

internet in rural areas


How does rural development contribute to the ICT development?

COM(2009) 103 and SEC(2009) 254 – review of rural development contribution to ICT in agriculture and in rural areas

More than 10 measures across all priority axes in rural development accommodate ICT-related investments

Budgets remain axis- and measure-related, not action-related In more than half of the RDPs (47 RDPs of 16 MS) direct actions on ICT

(including broadband) targeting the creation of ICT infrastructure and basic (public and business) services are planned

Only (small-scale) broadband infrastructure – 31 RDPs of 12 MS Farmers diversifying their farming activities via ICT – 21 RDPs of 15 MS Non-farm ICT business related actions – 28 RDPs of 17 MS Vocational training and human capital upgrading (e.g. ICT and computer

skills, etc.) – 56 RDPs of 20 MS ICT for an environmental use – 14 RDPs


Recovery package – The agreement

EUR 1.02 billion for broadband infrastructure and new challenges under rural development

Full flexibility in the use of the funds between broadband and new challenges

Higher co-financing EAFRD rates 90% for convergence regions 75% for non-convergence regions

Advance payments to beneficiaries up to 50% in 2009 & 2010 No limitation to small-scale broadband infrastructure


Recovery package – The agreement

In Reg. (EC) 1698/2005 “broadband infrastructure in rural areas” has been added to the five new challenges which were identified and agreed in the context of the Health Check

The other provisions already spelled out in the context of the Health Check are extended to the new priority area "Broadband“, including the higher co-financing rates

Definition of eligible types of operations to be supported in relation to broadband in the Regulation (closed list – not indicative)

Deadline for submission of revised Rural Development Programmes – 15 July 2009


Programming of broadband operations – major steps

Revision of the National Strategy Plan Revision of the Rural Development Programme(s) State aid notifications for large broadband schemes Revisions to be approved by a Commission decision Pre-submission consultations with DG AGRI/DG

COMP/DG REGIO are recommended


Programming of the Recovery funds – changes in the NSP

Injection of the additional funds to be based on the strategic approach in rural development (art 9-14 of R 1698/2005)

Baseline analysis: assessment of the current situation to be provided (SWOT

analysis & needs); in case of previously defined situation – how it has

changed over the last 2 years?; specific national/territorial problems; define the potential in developing the priorities


Programming of the Recovery funds – changes in the NSP

Definition of needs - strategy Define where, for what and to which extend support can be

granted/programmed

Indicative allocation in RDP Update of financial tables

Consistency of the NSP Describe the coordination and demarcation between

different support schemes/funds


Programming of the Recovery funds – changes in the RDPs

Creation of new operational types on broadband within the framework of measure 321 or re-enforcement of already existing commitments

Definition of objectives and targets Description of the type of operations to be supported Setting of the budget, aid intensity and co-financing rates Definition of the types of beneficiaries and specific eligibility

conditions Definition of precise demarcation lines (e.g. with SF) State aid clearance before submission of modification request –

for schemes going beyond the “de minimis” Monitor the implementation and report on it


Programming of the Recovery funds – changes in the RDP

Spending could start immediately after submission of modification requests – risk on the side of MS

Additional funds to be committed in 2009 and 2010; subsequent payments according to the n+2 rule


Who needs broadband? New MS and Southern old MS (e.g. EL, PT, IT) For MS with 100% DSL coverage - do not ignore the

need of: Upgrade of existing infrastructure Higher capacity, faster access, bigger savings Full mobility solutions for (remote) rural areas

Funds programmed under SF EUR 2.2 bn for infrastructure

Target: provision of latest technologies in rural areas


What’s next? New revised proposal voted in EP on 6 May Amendment of Implementing Rules to be voted in

May in the Rural Development Committee Submission of modification requests by 15 July Approval of modifications and commitment of funds


Communication to the Council and the EP“Better access for rural areas to modern ICT” Report on ICT expenditure as of 2010 Strengthen the support for farmers, foresters and food

industry Conduct specific studies on ICT in relation to

agriculture, forestry and food industry, or for rural areas in general

Emphasis in the mid-term review of rural development on ICT-related operations

Broadband event in the second half of 2010


Thank you

Documents

Josefine Loriz-Hoffmann DG AGRI/G1 “Consistency of rural development“ “Stimulating regional economies through high speed internet access”, 07/05/2009 EU