Operational Programme for Cohesion Policy Funds
2014-2020
2014EE16M3OP001
2
Contents
1 Strategy for the Operational Programme’s contribution to the Union strategy for smart, sustainable and inclusive growth and the achievement of economic, social and territorial cohesion 4
1.1 Description of the Operational Programme’s strategy to contribute to the delivery of the Europe 2020 strategy and to the achievement of economic, social and territorial cohesion 4
1.2 Justification for the selection of Thematic Objectives and corresponding investment priorities having regard to the Partnership Agreement, based on an identification of regional and, where appropriate, national needs, including the need to address the challenges identified in relevant country-specific recommendations adopted in accordance with Article121(2) TFEU and the relevant Council recommendations adopted in accordance with Article148(4) TFEU, taking into account the ex-ante evaluation 11
1.3 Justification for the financial allocation 12
2 Description of priority axes 28
2.1 Qualifications and skills meeting the needs of society and the labour market 28
2.2 Increasing social inclusion 50
2.3 Improvement of access to, and prevention of dropping out of, the labour market 78
2.4 Growth-capable entrepreneurship and internationally competitive RD&I 87
2.5 Development of small and medium-sized enterprises and strengthening the competitiveness of regions 103
2.6 Energy efficiency 114
2.7 Water protection 119
2.8 Green infrastructure and improved preparedness for emergencies 126
2.9 Sustainable urban development 135
2.10 Sustainable transport 145
2.11 Infrastructure for ICT services 155
2.12 Administrative capacity 162
2.13 Priority axis for technical assistance (ERDF) 175
2.14 Priority axis for technical assistance (CF) 180
3 Financing plan 186
3.1 Amounts of the total financial appropriation envisaged for the support from each of the Funds and amounts related to the performance reserve 186
3.2 Amount of the total financial appropriation envisaged for the support from each of the Funds and the national co-financing (EUR) 189
4 Integrated approach to territorial development 198
4.1 Community-led local development 198
4.2 Sustainable urban development 199
4.3 Integrated territorial investments 200
4.4 Arrangements for interregional and transnational actions within the Operational Programme, with beneficiaries located in at least one other Member State 200
4.5 Contribution of interventions planned in the Operational Programme to macro-regional strategies and sea-basin strategies subject to the needs of the programme area as identified by the Member State 201
5 Specific needs of geographical areas most affected by poverty or of target groups at highest risk of discrimination or social exclusion 201
5.1 Geographical areas most affected by poverty/target groups at highest risk of discrimination 201
5.2 Strategy of the Operational Programme to address the specific needs of geographical areas/target groups most affected by poverty, and contribution of the integrated approach set out in the Partnership Agreement where relevant 201
6 Specific needs of geographical areas which suffer from severe and permanent natural or demographic handicaps 201
7 Authorities and bodies responsible for management, control and audit and the role of relevant partners 202
7.1 Relevant authorities and bodies 202
7.2 Involvement of relevant partners 202
8 Coordination between the ERDF, the ESF, the Cohesion Fund, the Youth Employment Initiative, the EAFRD, the EMFF and other Union and national funding instruments, and with the EIB 207
9 Ex ante conditionalities 208
9.1 Description of the actions to fulfil the ex-ante conditionalities, the responsible bodies and a timetable 213
10 Reduction of the administrative burden for beneficiaries 223
11 Horizontal principles 223
11.1 Sustainable development 223
11.2 Equal opportunities and non-discrimination 223
11.3 Equality between men and women 223
12 Separate elements 223
12.1 List of major projects for which the implementation is planned during the programming period 223
12.2 Performance framework of the Operational Programme 224
12.3 List of partners involved in the preparation of the Operational Programme 230
1 Strategy for the Operational Programme’s contribution to the Union strategy for smart, sustainable and inclusive growth and the achievement of economic, social and territorial cohesion
1.1 Description of the Operational Programme’s strategy to contribute to the delivery of the Europe 2020 strategy and to the achievement of economic, social and territorial cohesion
The Operational Programme has been drawn up in accordance with the principle that the European Structural and Investment Funds (ESI) are one-off leverage to achieve significant changes in Estonia. Their use should bring about a shift in development, increasing the efficiency, effectiveness or quality of target achievement in an area, sector or industry, and leading to positive long-term impact (e.g. initiation and implementation of structural reforms and key initiatives/projects).
The Operational Programme is based on the following principles:
1. Funds should be focused on a limited number of important strategic objectives, in order to achieve significant changes, capacity of use and better coordination.
2. Planning should take into account the long-term impact of activities and implementation capacity.
The funding priorities were chosen and the alternatives were compared using the following selection criteria that clarified the above principles:
1. compliance with the objectives and main courses of action of the ‘Estonia 2020’ National Reform Programme;
2. opportunities for international cooperation and value-added at the EU level;
3. (co)effect across policy areas;
4. increase in the leverage effect and preparedness for the future;
5. sufficient concentration of funds; and
6. availability of suitable alternative funding options.
Based on the above, the focus of the Operational Programme is on investments that contribute to the central objectives of the 'Estonia 2020' National Reform Programme.
The objectives of the National Reform Programme ‘Estonia 2020’ are as follows:
1. Increase of productivity per employee to 73% of the EU average by 2015 and to 80% by 2020 (from 68.7% in 2012).
2. Increase of the employment rate of the 20–64 age group to 72% by 2015 and to 76% by 2020 (from 71.7% in 2012).
In order to achieve these objectives, it is planned to pursue and develop the current policy of improving the skills of the workforce, increasing labour supply, increasing R&D volumes in the private sector, developing infrastructure that supports business, and stimulating investment (especially in sectors with potential for exports and higher value-added).
To achieve the competitiveness objectives and address the development needs described in section1.1 of the Partnership Agreement, structural funds will be applied in the four areas of Estonia 2020 discussed below.
1.1.1 Educated people and integrated society
A third of working-age people in Estonia have no professional training,[1] and this considerably affects their competitiveness on the labour market. The unemployment rate among people with at most lower secondary education was twice the overall unemployment rate in 2011. Estonia 2020 sets the target of reducing the proportion of adults (25–64) without any professional education or vocational training to 30% (30.31% in 2012). In order to increase the proportion of adults with professional and occupational qualifications, the system of recognising prior learning and work experience will be implemented. It is planned to support the integration of adults with lower educational levels in studies, offering continued professional training and retraining courses to them, developing their key competencies that improve employability, and providing support services that support participation in training. Integrating adults in studies will also contribute to the target of Estonia 2020 to increase the participation rate of adults (25–64) in lifelong learning to 20% (12.9% in 2012).
Among young people, the high proportion of those without professional training results from discontinuation of studies after acquiring lower secondary or general upper secondary education, the preference for general secondary education over vocational training, and the large number of early school leavers. In order to reduce the proportion of young adults in the 18–24 age group with lower secondary education or less and not continuing their education to 9.5% by 2020 (10.5% in 2012), it is planned to improve the availability of career and support services, to introduce a more individual-centred approach to teaching and to invest in the separation of lower secondary level schools from upper secondary level schools. A teaching approach which is more focused on individual learners, combined with supporting academic and career guidance services, will assist pupils in making the choice to continue studies at an educational level suited to their abilities and prevent early school-leaving resulting from wrong choices. Pupils graduating from lower secondary schools, which have been separated from the upper secondary level, are more likely to pursue vocational training. Thus, the separation of lower secondary level schools from upper secondary level schools will contribute to making better choices for further education. Also, investments made in lower and upper secondary schools will contribute to adjusting to demographic changes in the schools network, and to the opportunities of SEN pupils to obtain education in mainstream schools.
The primary longer-term goals of the education policy of Estonia are to improve the quality and international competitiveness of higher education and to increase the number of state-funded study places in higher education,[2] as evidenced by the target set in Estonia 2020 to increase the proportion of people with tertiary education in the 30–34 age group to 40%. The higher education system is being reformed with the result of free access to Estonian-language higher education being provided to those who pursue full-time studies. The reform also involves the replacement of the funding model of state-commissioned education with a system of operational support which is provided on the basis of performance agreements signed with universities, thus increasing the responsibility of universities for the results of their activities. In the period 2014–2020 the focus will be on supporting the development of teaching staff and on the modernisation of curricula in order to improve the quality of studies and ensure that education serves the interests of society and meets the needs of the labour market (e.g. transfer of skills related to entrepreneurship education, and creation of practical training modules). Support will be provided for higher education institutions’ comprehensive development plans that provide for structural changes.
Considering the problem of structural unemployment, it is essential to pay more attention to the labour market relevance of studies. The provision of appropriate adult education, vocational education and higher education requires the introduction of a system of regular monitoring and forecasting of labour demand. Such a system should comprehensively analyse the development options and needs of various economic sectors in Estonia and ensure the planning and direction of training in each profession. In addition, a functioning practical training system will be set up in vocational and higher education and the provision of entrepreneurship education will be promoted. Matching studies with the needs of the labour market will also contribute to the implementation of country-specific recommendation No3 for 2013[3].
The youth (15–24) unemployment rate was 20.9% in 2012 (the average unemployment rate being 10.2%)[4]. This is due to low levels of education and dropping out of school. Estonia 2020 sets the target of reducing the youth unemployment rate to 10%. Achieving this target requires, in addition to the foregoing changes to be introduced in the education system, activation of young people who are neither studying nor in employment, prevention of the youth exclusion risk, increasing the contact of youth with the working life, and more efficient labour market measures supporting young people. Interventions aiming to improve the employability of young people and reduce youth unemployment are set out in an inter-ministerial plan, which forms part of the European Youth Guarantee.
One of the targets of Estonia 2020 is to increase the activity rate (15–64 age group) to 75% by 2020 (74.5% in 2012). Today, inactive job-seekers include pensioners, students, people who do not participate in the labour market because of health problems, and people who have to take care of their children or other family members. In order to use this potential labour, promote social inclusion and fight poverty, it is essential to address the issues that cause exclusion or keep people away from the labour market.
The poor health of the working-age population is currently one of the factors affecting employment. It is therefore planned to invest in the availability and quality of healthcare services and reduce alcohol consumption as the greatest behavioural health risk causing the burden of disease. On the other hand, people with a loss of health will be helped in finding a suitable job by supporting them with rehabilitation and labour market services. Implementation of the reform of the working ability assessment and benefit scheme should increase the employment stimuli and ability to work of today’s incapacity pensioners and make it easier for them to return to the labour market, thereby contributing to the implementation of country-specific recommendation No2[5].
Another important factor that affects ability to work and cope financially is a significant burden of care (caring for children and the elderly and disabled family members). It is planned to improve the availability of welfare services, incl. childcare services, to alleviate relatives’ burden in caring for children and the elderly and disabled family members. In order to improve the availability and sustainability of high-quality welfare services, cooperation across the borders of municipalities in the provision of these services needs to be cultivated. Improving the quality and efficient provision of local public services will also contribute to the implementation of country-specific recommendation No5[6].
The number of long-term unemployed people, which increased during the recession, has decreased over the last couple of years, but remains high. Despite this decrease, more than a half (54%) of all unemployed people are long-term unemployed, with the very long-term unemployed (who have been unemployed for more than two years) accounting for 33.5% of all unemployed people. A target of Estonia 2020 is to reduce the long-term unemployment rate to 2.5% (5.5% in 2012). The long-term unemployed and risk groups on the labour market often face a number of obstacles to entry into the labour market, which can be solved by combining social and employment measures. Therefore, interventions contribute to the provision of combined measures. Problems related to the employment of labour-market risk groups (the long-term unemployed, youth, older people and people with health problems) will be alleviated by offering them additional employment services and completing the reform of the system that supports their ability to work. To alleviate significant regional challenges, such as the low employment rate of the working-age population living outside the urban areas of Tartu and Tallinn and the poor contribution of regions to economic growth, support will be given to tap into region-specific resources and knowhow, which should create the preconditions needed to generate jobs. Given that low levels of education constitute one of the major reasons for long-term unemployment, the lifelong learning measures described above will also help to solve unemployment problems. These interventions will contribute to the implementation of country-specific recommendation No2[7].