Interreg Central Europe 2021-2027

Page 0 INTERREG CENTRAL EUR OPE PROGRAMME 2021 - 2027 Interreg Programme (IP) Adopted by the European Commission on 23 March 2022 Version 1 .2 Page 1 TEMPLATE FOR INTERREG PROGRAMMES 1 CCI 2021TC16RFTN003 Title Interreg CENTRAL EUROPE 2021 - 2027 Version 1.2 First year 2021 Last year 2027 Eligible from 01.01.2021 Eligible until 31.12.2029 Commission decision number C(2022) 1694 final Commission decision date 23.03.2022 Programme amending decision number Programme amending decision entry into force date NUTS regions covered by the programme See Appendix 1 Strand B 1 Annex to Regulation (EU) 2021/1059 of the European Parliament and of the Council of 24 June 2021 on specific provisions for the European territorial cooperation goal (Interreg) supported by the European Regional Development Fund and external financing ins truments Page 2 Contents 1. Joint programme strategy: main development challenges and policy responses ...................... 7 1.1. Programme area (n ot required for Interreg C programmes) ................................ ........ 7 1.2. Summary of main joint challenges, taking into account economic, social and territorial disparities as well as inequalities, joint investment needs and complementarity and synergies with other funding programmes and instruments, lessons - learnt from past experience and macro - regional strategies and sea - basin strategies where the programme area as a whole or partially is covered by one or more strategies. ............................... 8 1.3. Justification for the selection of policy objectives and the Interreg specific objectives, corresponding priorities, specific objectives and the forms of support, addressing, where appropriate, missing links in cross - border infrastructure ................................ ......... 22 2. Priorities ................................ ................................ ................................ .............. 32 2.1. Title of the priority (repeated for each priority) ................................ .................... 32 Priority 1: Cooperating for a smarter central Europe ................................ ...................... 32 2.1.1. Specific objective (repeated for each selected specific objective) .............. 32 PO1 (i) Developing and enhancing research and innovation capacities and the uptake of advanced technologies ................................ ......................... 32 2.1.1.1. Related types of action and their expected contribution to those specific objectives and to macro - regional strategies and sea - basin strategies, where appropriate ................................ ................ 32 2.1.1.2. Indicators ................................ ................................ .......... 35 2.1.1.3. Main target groups ................................ .............................. 36 2.1.1. 4. Identification of the specific territories targeted, including the planned use of ITI, CLLD or other territorial tools ...................... 36 2.1.1.5. Planned use of financial instruments ................................ ....... 37 2.1.1.6. Indicative breakdown of the EU programme resources by type of intervention ................................ ................................ ...... 37 2.1.2. Specific objective (repeated for each selected specific objective) .............. 38 PO1 - (iv) Developing skills for smart specialisation, industrial transition and entrepreneurship ................................ ................................ ............. 38 2.1.2.1. Related types of action and their expected contribution to those specific objectives and to macro - regional strategies and sea - basin strategies, where a ppropriate ................................ ................ 38 2.1.2.2. Indicators ................................ ................................ .......... 40 2.1.2.3. Main target groups ................................ ............................... 41 2.1.2.4. Identification of the specific territories targeted, including the planned use of ITI, CLLD or other territorial tools ...................... 42 2.1.2.5. Planned use of financial instruments ................................ ....... 42 2.1.2.6. Indicative breakdown of the EU programme resources by type of intervention ................................ ................................ ...... 42 Page 3 2.2. Title of the priority (repeated for each priority) ................................ .................... 44 Priority 2: Cooperating for a greener central Europe ................................ ...................... 44 2.2.1. Specific objective (repeated for each selected specific objective) .............. 44 PO2 - (i) Promoting energy efficiency measures and reducing greenhouse gas emissions ................................ ................................ ........................ 44 2.2.1.1. Related types of action and their expected contribution to those specific objectives and to macro - regional strategies and sea - basin strategies, where appropriate ................................ ................ 44 2.2.1.2. Indicators ................................ ................................ .......... 47 2.2.1.3. Main target groups ................................ .............................. 48 2.2.1. 4. Identification of the specific territories targeted, including the planned use of ITI, CLLD or other territorial tools ...................... 48 2.2.1.5. Planned use of financial instruments ................................ ....... 48 2.2.1.6. Indicative breakdown of the EU programme resources by type of intervention ................................ ................................ ...... 49 2.2.2. Specific objective (repeated for each selected specific objective) .............. 50 PO2 - (iv) Promoting climate change adaptation and disaster risk prevention and disaster re silience, taking into account eco - system based approaches .......... 50 2.2.2.1. Related types of action and their expected contribution to thos e specific objectives and to macro - regional strategies and sea - basin strategies, where appropriate ................................ ................ 50 2.2.2.2. Indicators ................................ ................................ .......... 52 2.2.2.3. Main target groups ................................ .............................. 53 2.2.2. 4. Identification of the specific territories targeted, including the planned use of ITI, CLLD or other territorial tools ...................... 54 2.2.2.5. Planned use of financial instruments ................................ ....... 54 2.2.2.6. Indicative breakdown of the EU programme resources by type of intervention ................................ ................................ ...... 54 2.2.3. Specific objective (repeated for each selected specific objective) .............. 56 PO2 - (vi) Promoting the transition to a circular and resource efficient economy ................................ ................................ ......................... 56 2.2.3.1. Related types of action and their expected contribution to those specific objectives and to macro - regional strategies and sea - basin strategies, where appropriate ................................ ................ 56 2.2.3.2. Indicators ................................ ................................ .......... 59 2.2.3.3. Main target groups ................................ .............................. 59 2.2.3. 4. Identification of the specific territories targeted, including the planned use of ITI, CLLD or other territorial tools ...................... 60 2.2.3.5. Planned use of financial instruments ................................ ....... 60 2.2.3.6. Indicative breakdown of the EU programme resources by type of intervention ................................ ................................ ...... 61 Page 4 2.2.4. Specific objective (repeated for each selected specific objective) .............. 62 PO2 - (vii) Enhancing protection and preservation of nature, biodiversity and green infrastructure, including in urban areas, and reducing all forms of pollution .. 62 2.2.4.1. Related types of action and their expected contribution to those specific objectives and to macro - regional strategies and sea - basin strategies, where appropriate ................................ ................ 62 2.2.4.2. Indicators ................................ ................................ .......... 64 2.2.4.3. Main target groups ................................ .............................. 65 2.2.4. 4. Identification of the specific territories targeted, including the planned use of ITI, CLLD or other territorial tools ...................... 66 2.2.4.5. Planned use of financial instruments ................................ ....... 66 2.2.4.6. Indicative breakdown of the EU programme resources by type of intervention ................................ ................................ ...... 67 2.2.5. Specific objective (repeated for each selected specific objective) .............. 68 PO2 - (viii) Promoting sustainable multimodal urban mobility, as part of transition to a net zero carbon economy ................................ ................................ ... 68 2.2.5.1. Related types of action and their expected contribution to those specific objectives and to macro - regional strategies and sea - basin strategies, where appropriate ................................ ................ 68 2.2.5.2. Indicators ................................ ................................ .......... 70 2.2.5.3. Main target groups ................................ .............................. 71 2.2.5.4. Identification of the specific territories targeted, including the planned use of ITI, CLLD or other territ orial tools ...................... 72 2.2.5.5. Planned use of financial instruments ................................ ....... 72 2.2.5.6. Indicative breakdown of the EU programme resources by type of intervention ................................ ................................ ...... 72 2.3. Title of the priority (repeated for each priority) ................................ ...................... 74 Priority 3: Cooperating for a better connected central Europe ................................ .......... 74 2.3.1. Specific objective (repeated for each selected specific objective) .............. 74 PO3 - (ii) Developing and enhancing sustainable, climate resilient, intelligent and intermodal national, regional and local mobil ity, including improved access to TEN - T and cross - border mobility ................................ .......................... 74 2.3.1.1. Related types of action and their expected contribution to those specific objectives and to macro - regional strategies and sea - basin strategies, where appropriate ................................ ................ 74 2.3.1.2. Indicators ................................ ................................ .......... 76 2.3.1.3. Main target groups ................................ .............................. 77 2.3.1.4. Identification of the specific territories targeted, including the planned use of ITI, CLLD or other territorial tools ...................... 78 2.3.1.5. Planned use of financial instruments ................................ ....... 78 2.3.1.6. Indicative breakdown of the EU programme resources by type of intervention ................................ ................................ ...... 79 Page 5 2.4. Title of the priority (repeated for each priority) ................................ ...................... 80 Priority 4: Improving governance for cooperation in central Europe ................................ ... 80 2.4.1. Specific objective (repeated for each selected specific objective) .............. 80 ISO 1 - better ................................ ......................... 80 2.4.1.1 . Related types of action and their expected contribution to those specific objectives and to mac ro - regional strategies and sea - basin strategies, where appropriate ................................ ................ 80 2.4.1.2. Indicators ................................ ................................ .......... 82 2.4.1.3. Main target groups ................................ .............................. 83 2.4.1.4. Identification of the specific territories targeted, including the planned use of ITI, CLLD or other territorial tools ...................... 84 2.4.1.5. P lanned use of financial instruments ................................ ....... 84 2.4.1.6. Indicative breakdown of the EU programme resources by type of intervention ................................ ................................ ...... 84 3. Financing plan ................................ ................................ ................................ ....... 86 3.1. Financial appropriations by year ................................ ................................ ........ 86 3.2. Total financial appropriations by fund and national co - financing ............................... 86 4. Action taken to involve the relevant programme partne rs in the preparation of the Interreg programme and the role of those programme partners in the implementation, monitoring and evaluation ................................ ................................ ................................ ............ 90 5. Approach to communication and visibility for the Interreg programme (objectives, target audiences, communication channels, including social media outreach, where appropriate, planned budget and relevant indicators for monitoring and evaluation) .............................. 94 6. Indication of support to small - scale projects, including small projects within small project funds ................................ ................................ ................................ ................... 96 7. Implementing provisions ................................ ................................ .......................... 97 7.1. Programme authorities ................................ ................................ .................... 97 7.2. Procedure for setting up the joint secretariat ................................ ....................... 98 7.3. Apportionment of liabilities among participating Member States and where applicable, the third or partners countries and OCTs, in the event of financial corrections imposed by the managing authority or the Commission ................................ ....................... 99 8. Use of unit costs, lump sums, flat rates and financing not linked to costs ........................... 101 Page 6 Appendices Appendix Map : Map of the programme area Appendix 1: Union contribution based on unit costs, lump sums and flat rates ................................ ................................ ................................ ..... 103 Appendix 2: Union contribution based on financing not linked to costs ................................ . 107 Appendix 3: List of planned operations of strategic importance with a timetable - Article 17(3) 108 Annexes Annex 1: Bibliography Annex 2: C harts and maps (Chapter 1.2) Page 7 1. Joint programme strategy: main development challenges and policy responses 1.1. Programme area (not required for Interreg C programmes) Reference: Article 17( 3 )(a), Article 17(9)(a) Text field [2 000] The Interreg CE programme area stretches across nine EU Member States. It covers all regions of Austria, Croatia, the Czech Republic, Hungary, Poland, Slovakia and Slovenia, and selected regions in Germany and Italy. Germany participates with Baden - Württemberg, Bayern, Berlin, Brandenburg, Mecklenburg - Vorpommern, Sachsen, Sachsen - Anhalt , Thüringen a n d the Braunschweig region with in Niedersachsen. Italy participates with Piemonte, Valle d'Aosta, Liguria, Lombardia, Veneto, Friuli - Venezia Giulia, Emilia - Romagna and the autonomous provinces of Bolzano/Bozen and Trento. The area consist s of 81 NUTS - 2 regions and is home to roughly a third of the EU population ( 148 m inhabitants in 2019 ) . It covers around 25% of the whole EU territory. There are seven cities with more than 1 m inhabitants , i.e. Praha, Milano, München, Budapest, Warszawa, Wie n and Berlin. Around 33% of people in the area live in bigger cities, 37% in intermediate regions and 30% in rural areas. Economically, the area is an industrial core of the EU. I ts economy generates 30% of EU GDP and i ts industrial development is a key fa ctor for the global competitiveness of the EU. However, it is characterised by structural differences between urban / industrialised areas and rural / peripheral areas . The programme area is at the heart of Europe and connects its North and South and East and West . It provides a cultural bridge all the way from Scandinavia to the Mediterranean Sea. It also brings together countries from both sides of the former Iron Curtain , with all the socio - economic and political implications this conveys . Despite major progress, economic and social differences between in ce ntral Europe are still visible. Finally, the area is a highly functional one. It is marked by strong interactions and linkages regarding economi es (e.g . trade), cooperation and governance structures (e.g. Visegrád group), the environment (e.g. the European Green Belt ) and cultural and historic al ties . Page 8 1.2. Summary of main joint challenges, taking into account economic, social and territorial disparities as well as inequalities, joint investment needs and complementarity and synergies with other funding programmes and instruments , lessons - learnt from past experience and macro - regional strategies and sea - basin strategies where the programme area as a whole or partially is covered by one or more strategies. Reference: Article 17( 3 )(b), Article 17(9)(b) Text field [50 000] Sustainable economic development T hree decades after the fall of the Iron C urtain , economic disparities remain evident in central Europe despite strong growth in once centrally planned economies. In the 10 most developed NUTS - 3 regions , a verage GDP per capita (at purchasing power standards) is about nine times higher th an in the 10 least developed regions (see Figure 1 in Annex 2 ). G aps no t only exist across countries but also between urban and rural regions. Closing these gaps will require time and continuous poli tical effort s that have become even more challenging through the COVID - 19 pandemic and its negative socioeconomic effects (see dedicated COVID - 19 section in this chapter) . C entral Europe is a functional economic area and a major industrial centre of the EU. Despite their economic disparities, c entral European countries are strongly linked to each other. They share value chains in many manufacturing industries such as the automotive industry . The ESPON CE - FLOWS targeted analysis (VVA et al., 2020) shows that the area is home to globally important manufacturing hubs in e.g. Lombardy, Upper Bavaria and Stuttgart. Beyond these hubs, m anufacturing plays a key role in most regions in the programme area. However, the degree of specialisation and regional interlinkages varies. In particular, manufacturing hubs in northern Italy, southern Germany and central Poland are highly specialised . T hese hubs add substantial economic value , feature very high productivity levels and contribute to key value chains with their surrounding regions . K eeping or further expanding this strong global position in the manufacturing industry is a major challenge. The 4th industrial revolution and EU - wide momentum for a green and digitised economy require a transition towards advanced technolog ies and a digitally skilled workforce. Value chains need to be reviewed, revised and new ly created. The combination of technological progress and global competition implies that governments, businesses and citizens have to adapt in order to harness the potential benefits and not fall behind. This affects key business areas that are highly relevant for ce ntral Europe such as manufacturing, but also other smart specialisation ( S3 ) technology priority areas and policy sectors such as : a) energy and environment; b) public health, medicine and life sciences ; c) agro - and bio - economy ; d) advanced materials an d nanotechnology ; e) transport and mobility ; f) advanced manufacturing systems ; or g) ICT and electronics. Another sector affected is the services sector , especially knowledge intensive services (KIS) in: a) high - tech services (telecommunications, computer programming) ; b) market services (legal activities, architectural and engineering activities) ; Page 9 c) financial services ; and d) other services (e.g. health and education). This important sector remains less developed in central Europe compared to other EU countries and not only needs to be modernised but further expanded. I ts share in total gross value added is for example around 29%, while the average in other EU regions is 32% (wiiw, 2020). The challenge is to make use of local strengths, to inc orporate them into S3 policies and expand existing or developing new economic activities. The tourism industry and the creative and cultural industries are positive examples. They are catalysts for using local knowledge to develop new activities . Tourism is well developed in coastal and mountainous areas of central Europe and important for local economies by provid ing up to 14% of total employment ( based on 2017 NUTS - 2 regional employment ) . In more remote rural regions, tourism and cultural industries offe r an untapped economic potential, for example by combining sustainable tourism with local crafts. To develop such activities, policy needs to support local stakeholders to set up coordinated and sustainable tourism strategies. The European Green Deal and t he Territorial Agenda 2030 highlight the ecological dimension of the economic transformation and emphasise the role of the circular economy . E ven though circularity is increasing in central Europe, many territories are still lagging behind the EU average. Catching up will require major efforts especially in Croatia, Poland, Czech Republic, Slovakia and Hungary ( A nnex 2, Figure 2 - wiiw, 2020). C ircular design and production and circular economy - related innovations and investments need to be supported. Chang e could also be achieved through fostering bio - economy , when support ing the economic development of rural areas. A central condition for the transformation to a digital and green economy is research and innovation. The ESPON CE - FLOWS targeted analysis (VVA et al., 2020) concludes that cooperation between areas with different levels of research and innovation capabilities is essential to overall improve R&I potentials . In central Europe, there are huge differences in this regard (wiiw, 2020). Only few regions primarily in Austria and German y exceed the EU benchmark of 3% of GDP for R& I expenditure (Figure 3 in Annex 2 ). R& I activities and related human capital are mostly concentrated in highly urbanised western regions of the programme a rea. In countries like Croatia, Czech Republic, Hungary , Poland or Slovakia this spatial clustering of R& I activities increase d over time to the disadvantage of rural regions. R& I activities are also dominated by large companies, which account on average f or 50 - 60% of commercial R&D expenditures. To tackle R&I - related challenges , policy needs to support networks of different innovation actors in and across countries . Better transfer of technology, policy learning and the sharing of best practices is necessary to improve innovation governance . A focus should be on SMEs to enabl e them to take up innovative methods such as key enabling technologies and prototyping , or to get access to financing, e.g. via venture capital. T echnology and innovation tran sfer are still too limited to urban areas, where universities and research institutions are main drivers ( ESPON CE - FLOWS , VVA et al., 2020 ) . It will be key to overcome the urban - rural divide and to establish functional urban areas , which physically connect urban cores with their (rural) hinterlands. Fields for cooperation are interregional partnerships along value chains, green economy and cross - sector cooperation. Skills are also essential for a successful transition to a sustainable and inclusive high - emp loyment economy. T he skill supply in central Europe is suited to support this transition, with more than 80% of people having received upper secondary, post - secondary non - tertiary and tertiary education , which is at least six percentage points higher than the EU average in 2019 (Eurostat). Nevertheless, highly skilled people are concentrated mainly in urban regions (Figure 4 in Annex 2 ) . I ntermediate and rural regions have a high share of people who completed secondary educati on and that are connect urban and rural regions and tap their combined potential. T he ongoing transformation of labour market s and the cross - country division of labour has increased