# EUR-Lex - 52012DC0128 - EN

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# 52012DC0128

**COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS concerningthe European Union Strategy for the Baltic Sea Region /* COM/2012/0128 final */**

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COMMUNICATION FROM THE COMMISSION TO
THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL
COMMITTEE AND THE COMMITTEE OF THE REGIONS

concerning
the European Union Strategy for the Baltic Sea Region

1.
Introduction

The Baltic Sea continues to be one of Europe's
most vulnerable areas. Algae bloom each summer, and more and bigger ships move
through its narrowest and shallowest straits. Divisions from the past are still
being overcome. Research, innovation and trade links need to be reinforced, while
transport and energy connections have big gaps – the eastern and northern parts
of the Region are still too often isolated from the rest of the EU.

This was why, in June 2009, following a
request by the European Council, the European Commission adopted the EU
Strategy for the Baltic Sea Region (EUSBSR). It addresses the key challenges of
sustainable environment, prosperity, accessibility, and safety and security,
but also the opportunities to make this an integrated, forward-looking
world-class region, the "top of Europe". It aims at coordinating
action by Member States, regions and municipalities, the EU, pan-Baltic
organisations, financing institutions and non-governmental bodies for a more effective
development of the Region. The Strategy also provides the regional
implementation of the Integrated Maritime Policy.

The Commission published a progress report
in June 2011.[1] The General Affairs Council then adopted Conclusions on 15 November
2011, which called on "the European Commission to
review the EUSBSR by early 2012". This Communication responds to
this request, by proposing:

·
Improvements to the strategic focus,

·
Alignment of policies and funding,

·
Clarification of responsibilities of different
actors,

·
Better communication.

The Strategy needs to reflect the Europe
2020 objectives of smart, sustainable and inclusive growth, and evolving EU
policy developments, including the importance given to cooperation in the
proposed multi-annual financial framework and the proposed reforms of cohesion policy,
notably greater thematic concentration, and the place given to macro-regional
and sea-basin strategies in the common strategic framework, partnership contracts
and operational programmes.

Baltic Sea Region cooperation reinforces and
facilitates other EU policies, such as climate change policies, Horizon 2020 in
research and innovation, and "Erasmus for All" for learning, and it helps
implement the Integrated Maritime Policy and the European Transport Network
(TEN-T) Policy. The current work shows that this macro-regional approach adds a
new cooperative and practical element to progress.

2. Towards
a new strategic framework

With today's constrained public budgets,
innovative approaches that can make best use of the policies and funds
available, are crucial. The macro-regional approach offers an integrated
framework for challenges too broad for the national level but too specific for
the EU-27.

To give the Strategy more focus and
direction, it is necessary to define key objectives more clearly and set out how
they are to be achieved. Therefore, this Communication specifies three overall
objectives for the Strategy, each accompanied by indicators and targets:

·
To Save the Sea;

·
To Connect the Region; and

·
To Increase Prosperity.

This provides a new framework, within which
the recommendations of the Council can be met.
2.1. Political commitment

To maintain high-level political
commitment, Strategy outcomes need to be clearer at both national and EU level.
As requested by the Council, the Strategy should be included on the agenda of
the Council of Ministers in its different formations as appropriate. Strategy
considerations should be reflected in budget and other discussions.

Regional and municipal actors must be more
involved. The new cohesion policy regulations address this, proposing macro-regional
strategies should be taken into account when developing and implementing new
programmes.

Political commitment must be translated
into administrative commitment, with sufficient staffing and continuity of
personnel.

2.2. Alignment of policy

Policy responses should reflect the
territorial nature of the Region's challenges and opportunities. Policy
initiatives should be coherent and promote synergies, a good example being the
proposed mainstreaming of climate change considerations in cohesion policy. The
Commission will regularly monitor policy developments, to ensure coherence with
the objectives of the macro-region.

By keeping in mind the macro-regional perspective
in relevant Council working groups and Parliamentary committees, these bodies
can help to ensure policy is positive in terms of territorial impact and
cohesion. Given the cross-sectoral nature of the Strategy, regular follow-up in
Council formations is recommended.

A similar
approach is also needed at local, regional, sub-regional and national levels,
with policy work accompanied by stock-taking exercises at all levels.

2.3. Alignment of funding

In the current
economic climate the Commission stresses the need to use existing EU and
national budgetary resources effectively. To maximise the impact of macro-regional
funding, Member States and other funds providers should ensure
(re-)prioritisation in line with Strategy objectives.

The
Commission's progress report of June 2011 found significant progress in this, but
more work is needed. The Strategy will bring the expected results only if it is
comprehensively linked to all available resources, including, the European
Regional Development Fund, the European Social Fund, the European Agricultural
Fund for Rural Development, the European Fisheries Fund[2], the Connecting Europe
Facility, the LIFE-programme, and research and innovation, as well as
educational, culture and health, programmes.

It is important
to focus on both financial and structural change involved in this alignment.
Managing Authorities of operational programmes in the Region should adopt a
more flexible approach, for instance allowing the funding of long-term projects,
and providing seed money. There must be a stronger transnational dimension to
national and regional programmes, as relying on territorial cooperation programmes
alone will not suffice. Work must continue on an Implementation Facility
Framework, to bring in international financial institutions, other funders and
the private sector, to increase the leverage of the resources available.

Important steps
have been taken to improve support for the macro-regional approach in the
2014-2020 financial framework. While the Strategy began in the middle of a
programming period in 2009, with few opportunities for influencing the content
of programmes, clear strategic and practical links are included in the cohesion
policy proposals for the next programming period. When
developing partnership contracts and operational programmes, at the regional,
national, cross-border and transnational levels, macro-regional objectives and
priorities must be present. The requirement to focus funding on a limited
number of thematic areas, relevant to the Strategy, also supports tangible
results.

It is essential
that actors at all levels begin considering as soon as possible how and on
which priorities to align funds for the coming financial period, taking account
of the Action Plan and the targets set at Strategy and at Priority Area level.

2.4. Governance

The pilot nature of the Strategy, and its
ownership by a very broad stakeholder community, including local and regional
authorities, national ministries, Commission services, international financing
institutions, private sector representatives and NGOs, requires an open but
effective governance structure.

Based on experience to date, the Council asks
for cooperation between the Commission and the Member States concerned to
"clarify [...] the roles and responsibility of key EUSBSR implementing
stakeholders[3]
in order to provide transparent guidance on their functions and facilitate
their work on strategy implementation".

In cooperation
with these stakeholders, the Commission has set out the key roles and tasks for
each of the four main groups.[4]
Adequate administrative capacity must be provided, not as a benefit for the
Strategy at the cost of other priorities, but to support more coherent effort.

–
The Commission ensures overall coordination of
the Strategy. It facilitates the involvement of relevant stakeholders, and monitors,
reports and evaluates on progress in cooperation with the Member States.

–
National Contact Points, appointed by the
participating Member States, ensure overall coordination of, and support for,
the Strategy's implementation, in their home country but also at the overall
level.

–
The Strategy Action Plan includes Priority Areas
and Horizontal Actions, agreed upon following extensive consultation. To
coordinate these priorities and ensure timely results, Priority Area
Coordinators and Horizontal Action Leaders oversee the implementation of the
projects in their area, while also promoting the macro-regional impact, and
sharing results.

–
Flagship Project Leaders, translating the
overall objectives of a Priority Area into concrete activities with an
appointed leader and time perspective, are directly responsible for facilitating
practical implementation on the ground.

In addition, a High Level Group (HLG) of
representatives of all EU Member States convenes regularly to advise the
Commission on the implementation process, providing key steering debates and
EU-wide anchorage of the Strategy. The Commission will promote joint meetings
with the HLG for the EU Strategy for the Danube Region to secure exchange of
good practice. Indeed, links to the Danube Region, and to other regional
initiatives in the Atlantic, the Arctic and elsewhere must be strengthened.
Meetings with others, such as the HLG of the Northern Dimension Partnership on
Transport and Logistics (NDPTL), can also be organised.

To strengthen administrative
sustainability, the potential of European Groupings of Territorial Cooperation
(EGTCs) should also be explored, as a tool either at Strategy level or for
individual Priority Areas.

2.5. Involvement of stakeholders,
including the private sector

To succeed, the Strategy needs
participation of all relevant public and private stakeholders. This should be
both conceptual, influencing the overall development of the Strategy (for
instance by participating in relevant dialogues on the internal market), and
also practical, contributing to implementation (for instance through projects
on the digital market).

Such participation needs to be developed. A
deeper dialogue between the Commission, the Member States concerned, Chambers
of Commerce associations, Confederation of Industries, regional Research and
Innovation groups, and NGOs (e.g. the Baltic Development Forum) should for
example reach out better to the business community. Targeted events,
match-making of Strategy interests with private sector interests, as well as
focused consultations on strategic topics should be promoted.

2.6. Neighbours, regional and
international organisations

Although the Strategy has an EU focus,
success also depends on close and fruitful cooperation with neighbouring
countries. Using already existing platforms[5],
cooperation should be intensified, in particular with the Russian Federation.
Through these platforms, and with a view to avoiding duplication, joint
priorities should be developed into concrete actions.

For example, continued dialogue with the
Nordic Council of Ministers will ensure a more coordinated use of human and
financial resources. Similarly, continued cooperation with the Helsinki
Commission (HELCOM) will reinforce implementation of the Strategy's Action Plan
and the HELCOM Baltic Sea Action Plan.

2.7. Promoting awareness

Better awareness of the Strategy approach,
and the results it delivers, is needed. Both the Commission and the Council
underline this, and this should be developed by the Commission and the Member
States concerned via as broad a range of actors and of communication channels
as possible. Web-based sharing of experiences and good practices, for instance
through the development of a web-portal linking relevant sites, is needed to
give better access to funding information, matchmaking opportunities and
project clustering. New emphasis on the overall objectives, linked to
well-publicised indicators and targets described below, will also clearly
outline what the Strategy is about.

2.8. Monitoring system

The Council requested "a system of
realistic and feasible targets and indicators". The Commission is
proposing the three overall objectives mentioned: Saving the Sea; Connecting
the Region; Increasing Prosperity.

These objectives are complemented by a
number of indicators and targets. Following wide consultations, these are new, but
derive from existing policies and long-term plans, providing a basis for more
effective monitoring and evaluation. The Commission proposes that they should
be introduced in a revised Action Plan along with any necessary modifications,
including detailed baselines for the targets, which will be monitored closely
in Commission reporting.

Member States are also invited to come
forward with indicators and targets for the individual Priority Areas,
including intermediate targets and benchmarks to achieve the overall objectives.
This will facilitate communication to the wider public, and provides strategic
focus for reviewing the Strategy's Action Plan, for prioritising selection of
good projects and for evaluation, as well as communicating more clearly the
Strategy's achievements.

3. Making the new framework operational

Saving the Sea, Connecting the Region and
Increasing Prosperity offer a clear framework for the major Baltic and EU issues,
including the Europe 2020 headlines.

3.1. Save the Sea

The overall environmental objective for the
Baltic Sea is to achieve good environmental status by 2020, as required under
the Marine Strategy Framework Directive, and favourable conservation status
under the Habitats Directive in accordance with the EU Biodiversity Strategy and
related targets by 2021 as required by the HELCOM Baltic Sea Action Plan.

Stronger implementation of relevant EU
legislation is essential to "Save the Sea", for example on biodiversity,
habitats, fisheries and eutrophication, where full implementation of the Urban
Waste Water Treatment Directive, the Nitrates Directive and the Water Framework
Directive are falling behind schedule.

In 2011, the WWF Baltic Sea Scorecard showed
that although the Sea is still one of the most polluted in the world, and its
poor state threatens the quality of life for the 80 million inhabitants living
around it, intensified efforts are showing results, even if much remains to be
done.

These efforts can now benefit from the more
concerted approach enabled by the Strategy.

·
Sustained high-level political commitment is needed to ensure that agreed environmental priorities are
translated into action, and that existing law is better enforced. For example,
the recommendations made by the Flagship Project on removing phosphates in
detergents now need to be taken into account in new Member State legislation.

·
The alignment
of policies with the Strategy – for example assuring the integration of
environmental and climate concerns (including relevant research outcomes)
across all relevant policy fields, including transport, agricultural and
industrial policies – also facilitates the attainment of a healthy sea, and
adequate coastal protection. Cross-sectoral policy planning means that all
sectors reflect agreed Baltic Sea Region priorities in line with territorial
needs. Examples of this are specific agri-environmental measures within the
Common Agricultural Policy, such as buffer strips along rivers and wetlands or
better management of animal waste. The European Council, when endorsing the
Strategy in 2009, called for close alignment with the Integrated Maritime
Policy.

·
A better alignment of funding with the aims of the Strategy is particularly important to reaching
its environmental and climate goals. The problems facing the Sea are too big
for any one country to address on its own. For example, to decrease the number
of dead zones in the Sea, today covering up to one sixth of its bottom area
because of excessive nutrients, further coordinated investment in waste water
treatment plants, including phosphorus and nitrogen removal, is needed.

·
Closer partnerships, for example between national, regional and local administrations and
research institutions and other stakeholders such as ship-owners, harbours,
logistic companies and NGOs, are needed for Strategy goals such as clean and
safe shipping. At present, heavy ship traffic worsens the problems caused by
excessive nutrients and hazardous substances from land-based sources through air
pollution, greenhouse gas emissions, discharges of oil and other waste, and the
introduction of alien organisms. Joint efforts can allow private stakeholders
to get a better understanding of regulations and standards, while giving the public
sector access to first-hand information about market conditions and needs.

·
Closer cooperation with neighbouring
countries, in particular Russia, is needed for
example for the Strategy's goals of more efficient and compatible maritime
surveillance, as well as prevention, preparedness and response to disasters at
sea and on land. The good example of joint surveillance in the Gulf of Finland
should be extended to cover the entire Baltic Sea.

·
Identifying joint priorities with regional
and international organisations, like HELCOM, will
for example support the Strategy's efforts to address the effects of hazardous
substances and destructive fishing methods, including illegal, unregulated and
unreported fishing, on biodiversity, with its negative consequences for fish
and human health. Hazardous substances are particularly damaging to the
ecosystem of the Baltic Sea given its brackish environment and the slow water
exchange rate (more than 30 years). The influence of climate change should also
be taken into account in promoting diverse and healthy wildlife.

In these ways, the new framework for the
Strategy strengthens the efforts to save the sea. The opportunities and tools
offered in this respect now need to be fully utilised in the Region.

In order to ensure that the above
reinforced framework is rigorously followed up, the Commission therefore
proposes to use the following indicators and targets as key to measure
progress towards saving the sea:

1.
Clear water
measured by the achievement of good environmental status by 2020 and including
nutrient load reductions, in line with targets and indicators to be set out in
the future revision of the Marine Strategy Framework Directive (MSFD) and in
the updated HELCOM Baltic Sea Action Plan (BSAP) in 2013;

2.
Rich and healthy wildlife, by 2020, measured by improvements in biodiversity status and
ecosystem health, including with respect to fish stocks, in line with updated
targets to be set by HELCOM in 2013 and by the revision of the MSFD;

3.
Timely adoption in 2013 and full implementation
by 2021 of the updated HELCOM BSAP;

4.
Clean shipping,
measured by the elimination of illegal discharges by 2020, and Safe shipping,
measured by reducing by 20% by 2020 the number of accidents compared to the
2010-level,

5.
Drawing up of transboundary, ecosystem-based
Maritime Spatial Plans throughout the Region by
2015;

6.
Climate Change adaptation, by adopting an integrated coastal protection
plan and programme by 2020.

7.
Increased Safety,
by increasing cooperation between maritime surveillance authorities through
better information sharing and coordinated actions to enhance maritime
awareness and efficiency at sea by 2015.

3.2. Connect the Region

Long distances, difficult climate
conditions and low infrastructure density continue to leave many areas of the eastern
Baltic region, and Northern Finland and Sweden with the lowest accessibility
rates in all Europe. As well as being costly and energy inefficient, these
missing links are obstacles to the Internal Market and to the goal of
territorial cohesion.

The Priority Areas contributing to the
Strategy's "Connect the Region" objective can use the renewed Strategy
framework to provide territorial solutions that are smart, sustainable and
inclusive.

·
High-level political commitment is especially important, for example, to facilitate the work of the
Baltic Energy Market Interconnection Plan to ensure the regional energy
infrastructure for proper functioning of the internal market and better
security of supply. This concerns both timely investments and market reforms.

·
A better alignment of policies will facilitate a genuine multi-modal macro-regional transport
network. The relevant ministries need to ensure more coherent transport,
maritime, environmental and climate change policies, together with the Commission,
the NDPTL and other regional bodies.

·
A sustainable and comprehensive infrastructure
network, bridging the persisting east-west and north-south divisions in the
Region, needs better alignment of funding with the Strategy as well as closer
links with neighbouring countries. Better planning and coordination of
infrastructure development and funding is necessary to implement prioritised
projects. This should be done within the TEN-T Guidelines and by making full
use of, for example, the NDPTL platform and funds made available via the Connecting
Europe facility and the TEN-T framework.

By focusing macro-regional efforts on
developing human potential, and on creating a smarter and more
resource-efficient transport and energy system, the "Connect the
Region" objective is in line with Europe 2020 goals of smart, sustainable
and inclusive growth, and the related flagship initiatives. It needs to make
full use of the new cohesion policy proposals, notably to advance cross-border
infrastructure. At external borders, it should support modernisation of EU
customs infrastructure, equipment, systems, as well as administrational
capacity building. In addition, attention must be paid to the resilience of
infrastructure to natural or man-made disasters.

In order to ensure good follow-up, the
Commission proposes to use the following indicators and targets as key to
measure progress:

1.
Better and sustainable internal and external
connectivity of the Region, reducing travel time and waiting time at external
borders, as supported by the Connecting Europe
facility, measured by the completion of all seven TEN-T land and sea priority
projects involving the Region, for example the Fehmarn Belt fixed link by 2020
and Rail Baltica by 2024;

2.
Interconnect Baltic States' energy markets with
the rest of the Region in line with the Baltic
Energy Market Interconnection Plan, measured by the full and environmentally
sustainable interconnection of the gas and electricity markets by 2015;

3.
Increased cooperation in joint cross-border management
and infrastructure planning and implementation, including across marine areas.

3.3. Increase Prosperity

The European Union continues to confront
economic difficulties. The 2011 State of the Region Report, an annual
evaluation of competitiveness and cooperation across the Baltic Sea Region[6], states that, after a year of
growth in most parts, the outlook for the Region is deteriorating. The report
emphasises the interdependence of EU economies, and the importance of working
together for sustainable economic growth.

Through the renewed Strategy framework, the
"Increase Prosperity" objective reinforces measures to return to
growth in line with Europe 2020 goals. It strengthens policy development and
application, by clearer focus on growth and jobs, and by enabling policy makers
to take a better overall view of linked or conflicting trends. Increased political
commitment is needed for speedy transposition of legislation to ensure a
well functioning internal market. This is crucial, as most trade occurs within
the macro-region.

·
Policy alignment
will ensure coherent development of key sectors, such as agriculture, rural
development (including forestry) and fisheries. The reform of the Common
Fisheries Policy is an example of policy revision following the Strategy's
recommendation for decentralised, territorially-specific fisheries management.

·
Promoting a pan-Baltic Sea Region Innovation
Union aligns funding through a programmatic approach. Increased
resources need to be allocated to research and innovation, promoting smart
specialisation in the Region, in order to meet Europe 2020 goals. Full use
should be made of opportunities created by Horizon 2020.

·
Dialogue between stakeholders, including the Commission, Member States, Chambers of Commerce and
Confederation of Industries should promote Strategy focus on industrial policy
in this Region. In line with the Europe 2020 Flagship "An industrial
policy for the globalisation era" and the Small Business Act, the Strategy
is supporting SMEs (respecting state-aid rules), by improving access to
finance, by better regulation, and by helping them adapt to globalisation. Emphasis
is needed on environmental and low-carbon technologies, where the Region is
strong, but where closer links between policy and market development are needed.
Key maritime sectors also have the potential to grow. Skills, qualifications
and educational programmes have to match these needs.

Furthermore, in line with the Europe 2020 Flagship "An agenda for new
skills and jobs", deeper dialogue between social partners on future
challenges for the labour market, such as demographic changes, is needed. These
should include increasing labour productivity and decrease structural
differences within the Region, as well as the macro-regional dimension of
social inclusion and public health.

Mobility and development of skills should
be promoted through existing initiatives, such as the Nordplus exchange scheme,
as well as through current and future instruments, such as "Erasmus for
all" or "Youth on the Move". Cultural exchanges should be
facilitated. Full use should be made of opportunities for researcher mobility
and innovation dissemination, such as within the BONUS Baltic Sea Research and
Development programme. For all ages and sectors, participating in programmes of
educational and scientific exchanges and cooperation should be promoted. "Brain
circulation" must be the new paradigm, while guarding against "brain
drain". Everyone must also cooperate on less desirable aspects of
mobility, countering organised crime, including trafficking and smuggling.

In line with the renewed framework, the
Commission proposes to use the following indicators and targets as key to
measure progress:

1.
A 15% increase in the volume of
intra-regional trade and cross-border services by 2020;

2.
A 20% increase in the number of people
participating in programmes of cultural, educational, scientific exchange and
co-operation by 2020;

3.
In addition to the above policy indicators, the
following context indicators setting the Strategy against the wider backdrop of
socio-economic developments in the Region may be useful:

(a)
The reduction of disparities, measured by
the lesser developed Member States catching up in terms of their GDP;

(b)
Reductions in unemployment rates, by reaching the Europe 2020 goal of 75% employment of 20-64
year-olds;

(c)
General expenditure in R&D, measured by the rate of investments in R&D and innovation,
which should reach at least 3% across the Region by 2020 (Europe 2020 target);

(d)
Achievement of national targets based on the
Europe 2020 climate and energy targets

4. Bringing us forward

By practical steps to take into account the
Region's geographical characteristics and macro-regional dynamics, the EU
Strategy for the Baltic Sea Region strengthens the use of available European
and national resources. It seeks to translate political commitment into
commitment to action at every point.

Concretely, the revised Strategy framework
set out above reinforces this effort. It facilitates action and results by
focusing on three major overall objectives: saving the Baltic Sea; connecting
this large region; and increasing its prosperity. It does so by promoting political
commitment, facilitating closer alignment of policies and funding, and by
clarifying the responsibilities of those involved. It promotes better inclusion
of stakeholders, closer work with non EU Member States and the private sector,
and improved communication. It sets all this out in relation to indicators and
targets, within a monitoring and evaluation system to measure progress towards
the future.

It is important that participating
governments and regions respond by devoting adequate resources to the challenge
of implementing the Strategy, and that at all levels early consideration is
given to aligning funding in preparation for the next financial period.

The Commission is convinced that this
framework provides an integrated and sustainable contribution to economic,
social and territorial cohesion, and to the objectives of smart, inclusive and
sustainable growth of the Europe 2020 strategy. It therefore invites the
Council to examine and endorse this Communication.

[1]               COM(2011)381 final.

[2]               To become the European Maritime and Fisheries Fund,
as proposed by the Commission for the new financial period.

[3]               National Contact Points (NCPs), Priority Area
Coordinators (PACs), Horizontal Action Leaders (HALs), Flagship Project Leaders
(FPLs).

[4]               Full details will be made available on the EUSBSR
website.

[5]               Such as the Northern Dimension, the Council of Baltic
Sea States, the Nordic Council of Ministers, the Helsinki Commission, the
Vision And Strategies Around the Baltic Sea network (VASAB), the Baltic Sea
States Subregional cooperation (BSSSC), the Union of Baltic Cities (UBC) and
BONUS – Baltic Sea Research and Development Programme (Article 185 initiative).

[6]               Published by the Baltic Development Forum, the Nordic
Council of Ministers and the European Investment Bank.