ay i2.2.
The theme of equal opportunities and treatment, brings together the following principles as they are promoted under the Structural and Cohesion Funds regulations Investments 2014-2020, respectively:
– equal opportunities and treatment between men and women (gender equality);
– non-discrimination.
In the policies that aim to combat discrimination, the following distinction can be made:
• Policies specifically targeting discrimination based on ethnic origin, religious affiliation, sexual orientation, and the existence of a disability / disease that has a social stigma;
• Policies aimed at combating discrimination based on gender – these are of particular importance since gender is a transversal factor that transcends all other characteristics.
As regards equality of treatment between men and women or gender equality, the European Council defined this concept as follows: “Gender equality implies an equal level of visibility, affirmation and participation for both sexes in all spheres public and private life. Gender equality is the opposite of gender inequality, not gender gaps, and aims to promote the full participation of women and men in society."
Gender equality aims to change the structures in society, which contribute to maintaining unequal power relationships between women and men. Achieving this aim is central to the protection of human rights, the functioning of democracy, respect for the rule of law, and economic growth and competitiveness. The realisation of de facto equality between women and men has been high on the agenda of the work of the Council of Europe for decades. This has resulted in the development of a comprehensive legal and policy framework.
As regards non-discrimination, the Universal Declaration of Human Rights stipulates in Art. 2: “Everyone is entitled to all the rights and freedoms set forth in this Declaration, without distinction of any kind, such as race, colour, sex, language, religion, political or other opinion, national or social origin, property, birth or other status. Furthermore, no distinction shall be made on the basis of the political, jurisdictional or international status of the country or territory to which a person belongs, whether it be independent, trust, nonself-governing or under any other limitation of sovereignty”.
From the 1980s onwards, the Council of Europe has played a major role in the development of norms and concepts such as parity democracy, gender budgeting and gender mainstreaming, that have been providing a new approach to gender equality, shaping its development in Europe. Equality between women and men The Council of Europe Transversal Programme on Gender Equality, launched in 2012, aims to increase the impact and visibility of gender equality standards and to support their implementation in member states. To achieve its aim and advance the gender equality agenda, the Programme builds on the political and financial support of the member states, as well as and on the contribution of all Council of Europe decision-making, advisory and monitoring bodies. The Council of Europe Gender Equality Commission is at the centre of these efforts. Gender Equality Rapporteurs appointed in steering committees and monitoring bodies of the Council of Europe and working on different topics (e.g., education, media, sport, terrorism and corruption) provide standards, innovative policy recommendations and feed into the work and activities of the Gender Equality Commission.
Equal opportunities and treatment are a fundamental right and a basic value of a European Union as set out in Article 8 of the Treaty on the Functioning of the European Union (consolidated version). At the same time, gender equality, non – discrimination, and accessibility are a a precondition for smart, sustainable and inclusive growth. European funds Structural and Investment is the main European Union financial instrument to support the implementation of these objectives.
In this respect, the Regulation on common provisions for the implementation of the FESI no. 1303/2013 (The DRC), hereinafter referred to as the Common Regulation, sets the objective of "abolishing" inequalities and the promotion of equality between men and women in accordance with Articles 2 and 3 of the Treaty, and also links with the provisions of the Charter of Fundamental Rights of the European Union.
Member States and the Commission must also respect a number of horizontal principles when delivering investments under the ESIF, with Article 7 requiring that Member States take appropriate steps to prevent discrimination based on disability, and to ensure accessibility for persons with disabilities throughout the preparation and implementation of programmes.
Implementation of these horizontal principles is facilitated by the ex ante conditionalities: 1 (anti-discrimination) and 3 (disability) for all investments under the ESIF, while investments in deinstitutionalisation must, in addition, also meet thematic ex ante conditionality 9.1, which requires the formulation of a poverty reduction strategy that, where applicable, includes measures supporting the transition to community living.
The promotion of equality between men and women, non‐discrimination and accessibility are cross‐cutting themes that contribute to the achievement of the Europe 2020 Strategy. In view of that, the approach in meeting the required principles during the implementation of ESI funds in Romania is twofold:
– mainstreaming the horizontal themes across the preparation and implementation of programmes, including in relation to monitoring, reporting and evaluation;
– design and implementing targeted actions specifically designed to promote equality between men and women, prevent the discrimination based on racial or ethnic origin, religion or belief, disability, age or sexual orientation by paying particular attention to those facing multiple discrimination.
The mainstreaming approach involves the translation and systematic integration of horizontal principles in each stage of the operational programmes “life cycle, at all levels of governance, and across all actors involved, as well as their assimilation for all the programmes” objectives and through all the levels up to the individual projects.
To achieve this, an important pre‐condition is the development of common understanding and recognition as regard the promotion of equality between men and women, non‐discrimination and accessibility. In this respect, arrangements for training for staff of the authorities involved in the management and control of the ESI Funds in the applicable Union and national law in policy area are carried on as part of the process to fulfil of the general ex‐ante conditionalities.
Equal opportunities and treatment are based on the full and effective participation of every person in economic and social life, regardless of gender, racial or ethnic origin, religion or belief, disability, age or sexual orientation.
At the same time, gender equality, non-discrimination, and accessibility are a prerequisite for smart, sustainable and inclusive growth. The European Structural and Investment Funds are the main financial instrument of the European Union to support the implementation of these objectives.
SUSTAINABLE DEVELOPMENT
The concept of sustainable development is the basis of the economic policy of the Community and represents a comprehensive long-term objective laid down in the Sustainable Development Strategy from Goteborg. It is directed towards continuous improvement of the quality of life for the present and future generations through the creation of stable communities, capable to effectively manage and use resources and to benefit to the maximum from the potential of the economy in relation to the environment and the social innovations, providing for prosperity, environmental protection and social cohesion. The Lisbon Strategy is closely related to the EU objectives for sustainable development.
The commitment to preserve and protect the environment from potential harmful effects of interventions and ensure results in net social, environmental and climate benefits will be further emphasised and better integrated over the course of the 2014‐2020 programing period through:
– vertical measures by setting out investment priorities under TO 4, 5, 6 and 7, and integrating activities dedicated to environmental protection, resource efficiency, climate change mitigation and adaptation, biodiversity, disaster resilience, and risk prevention and management into other thematic objectives and
– horizontal measures by application of the principle of sustainable development in accordance with Article 8 of Common Provisions Regulation.
The theme of sustainable development targets the following specific objectives, as they are promoted in the framework of the Structural and Investment European Funds Regulations 2014-2020:
– environment protection;
– efficient use of resources;
– mitigation and adaptation to climate change;
– conservation and protection of biodiversity;
– developing capacity to withstand disaster;
– prevention and risk management.
The mainstreaming of sustainable development into ESI Funds involves that the principle being recognised and taken into consideration in all aspects and phase of the operational programmes lifecycle. In this respect, the process of preparation and implementation of the Partenership Agreement and operational programmes include:
‐ the ex‐ante evaluation of each programme will assess the adequacy of planned measures to promote sustainable development, in particular, the Strategic Environmental Assessment as part will assess the likely effects of programmes prior to their approval;
‐ the Managing Authorities will use a series of tools so that to ensure a portfolio of projects in line with sustainability principle;
‐ in the selection process, all projects will be assessed from an environmental perspective to determine if the impact of the operation is limited or insignificant;
‐ by applying minimum requirements the project proposals will be expected to address the use of energy and other raw materials more efficiently, and to switch from non‐renewable to renewable sources, to implement cost savings recommendations through waste minimisation and water management, notable for support economic and construction operations;
‐ the Managing Authorities will ensure awareness‐raising and provide support to beneficiaries to deal with the environmental issues in all phases of their projects. The sustainable development principle will be integrated in the training programmes for the beneficiaries, including in relation to the green procurement.
To ensure the horizontal integration of sustainable development, the polluter pays principle as set out in Article 192 of the Treaty on the Functioning of the European Union implies that those who cause environmental damage should bear the costs of avoiding it or compensating for it.
In Romania, the polluter pays principle is set out in the Law on environmental protection (Law no. 256/2006) and Water Act no. 107/1996, as subsequently 109 amended and supplemented. The law provides the obligation of landowners and operators to maintain a clean environment and requires payment for any environmental damage through pollution.
The best-known definition of the concept of sustainable development is that adopted in the report entitled "Our Common Future" , prepared by the World Commission for Environment and Development at the United Nations in 1987: "development that responds to today's needs without compromising the ability of generations future to meet their own needs. "
It contains two key elements:
• The idea of needs, in particular the basic needs of the world's poor, to whom priority must be given;
• The idea of limitations imposed by the state of technology and the social organization of the capacity of the environment to meet present and future needs."
Specifically, there are three major dimensions of sustainable development:
• ecological – which focuses on preserving the environment, reducing the negative impact of human activities on it and adapting to climate change;
• economic – which is concerned with ensuring wealth, decoupling economic growth from the consumption of non-renewable resources, and fostering investment in R & D and innovation;
• social – which emphasizes the importance of investment in education and health as a precondition for social inclusion, concern for future generations and, last but not least, the development of a model of governance in which decision-making takes all these factors into account.
Given that two of the three dimensions of sustainable development are already inherently encompassed and implemented through the operational programs financed by the FESI, the integration of sustainable development in the projects is mainly oriented towards the environmental component.
To this end, Article 11 of the Treaty on the Functioning of the European Union (Consolidated Version) recognizes the need to integrate environmental protection requirements into the definition and implementation of EU policies and actions, in particular to promote sustainable development. Thus, environmental issues, economic development and social development must be treated as one theme.
Overall, Division of Financial Management policies and practices in Romania are at a level of Consolidated development that reflects the existence of good systemic practices in the strategic, management and service delivery dimensions. With all Still, there is room for improvement in several areas.
Consequently, on the basis of an assessment of the economic situation as well as the information contained in the Convergence Program and the National Reform Program 2017, the Commission addressed to Romania a set of three country specific recommendations addressing the following issues:
• In 2017, ensure compliance with the Council recommendation of [XX] with a view to correcting the significant deviation from the adjustment path toward the mediumterm budgetary objective. In 2018, pursue its fiscal policy in line with the requirements of the preventive arm of the Stability and Growth Pact, which translates into a substantial fiscal effort for 2018. Ensure the full application of the fiscal framework. Strengthen tax compliance and collection. Fight undeclared work, including by ensuring the systematic use of integrated controls.
• Strengthen targeted activation policies and integrated public services, focusing on those furthest away from the labour market. Adopt legislation equalising the pension age for men and women. Establish a transparent mechanism for minimum wagesetting, in consultation with social partners. Improve access to quality mainstream education, in particular for Roma and children in rural areas. In healthcare, shift to outpatient care, and curb informal payments.
• Adopt legislation to ensure a professional and independent civil service, applying objective criteria. Strengthen project prioritisation and preparation in public investment. Ensure the timely full and sustainable implementation of the national public procurement strategy.
The structural fund rules for the period 2014-2020 define a number of ex-ante conditionalities that have to be met by Managing Authorities that use structural funds to grant State aid. The ex-ante conditionalities aim to strengthen the administrative capacity of Managing Authorities to provide State aid correctly. The European Commission has issued guidance on the nature of arrangements that lead to improvement of administrative capacity. Similar arrangements can be beneficially adopted by any public authority that grants State aid. Failure to comply with State aid rules is a systemic problem. Public authorities can only gain by improving their systems and procedures.
Ultimately, however, the record of compliance with State aid rules can be raised only when public authorities know that non-compliance will be more easily detected. This can be achieved by making non-compliance more visible and by reporting it more readily and quickly to the Commission.
The European Commission’s Vice-President for the Digital Single Market, Andrus Ansip, said that the EU’s progress towards implementing the digital single market is beginning to have a significant impact on people’s lives. He said: “Europeans are starting to feel the benefits of the digital single market on the ground… This year’s Digital Day is the perfect moment to recognise what we have achieved, but to also encourage EU member states to move forward quickly with the legislative proposals still on the table.”
The European Semester is seen as a good instrument for further progress in policies and reform, leading to recovery and employment. The Annual Growth Survey 2017 outlines the most pressing economic and social priorities, accompanied by specific recommendations, however the European Economic and Social Committee (EESC) takes very seriously the negative aspects of the rules of the Stability and Growth Pact and Country-Specific Recommendations applied at national level to set the euro area fiscal stance.
The EESC also believes that globalisation and technological and demographic developments, in particular digitalisation, are important catalysts for change and that everyone should be able to capitalise on them. The principal measures must include investment in levers of growth: knowledge, innovation, education and ICT. The EESC believes that only a comprehensive system of indicators — such as the current system, which is also able to factor in social and environmental ramifications — is truly able to show real economic growth on the basis of results (GDR — gross domestic result).
According to the European Commission’s latest forecasts , EU Member States’ economic development will fundamentally stay the same between 2016 and 2018 in comparison to 2015, and the principal source of growth will be consumption rather than investment. This outlook, which is related to low growth and investment, is inauspicious, all the more so given that the strengthening of domestic demand remains as important as ever when it comes to boosting investment.
In respect to the progress in achieving the national targets of Europe 2020 strategy, Romania has obtained good results regarding national emissions of greenhouse gases, energy from renewable sources, energy efficiency, tertiary education and reducing the number of people exposed to the risk of poverty or social exclusion. However, on employment rate, research and development and early school leaving the goals are not yet met.
In the context of the European Semester the Commission has carried out a comprehensive analysis of Romania’s economic policy and published it in the 2017 country report. In the Romania Country Report 2017 the focus was on economic growth, as follows:
• Potential growth is estimated to have been around 3.7 % in 2017, compared to an average of 4.6 % over 2000-2008. Private consumption was the main contributor to growth in 2017, supported by indirect tax cuts and wage hikes both in the public and the private sectors.
• GDP per capita in Romania increased from slightly more than 40 % of the EU average at the time of accession in 2007 to almost 60 % in 2016. Nevertheless, Romania remains one of the EU countries with the lowest GDP per capita.
• Total investment reached 22.7 % of GDP in 2016, above the average for the EU (19.8 %) and for the new Member States (19.9 %).
• Public investment is projected to start recovering on the back of a pickup in the implementation of projects financed by EU funds and amount to 3.5% of GDP in 2018.
• Unemployment declined further and is estimated to have reached 4.9 % in Q3-2017, the lowest level in more than 20 years.
European Commission highlights the progress that Romania has advanced in implementing country specific recommendations (CSRs) since 2013, and some reforms have been pursued even during the economically challenging times. Also, the implementation of the recommendations addressed to Romania in 2017 has to be seen in a longer-term perspective since the introduction of the European Semester in 2011.
European Structural and Investment Funds (ESI Funds) are pivotal in addressing key challenges to inclusive growth and convergence in Romania, notably by reforming the public procurement system, strengthening the quality and accessibility of primary and community healthcare, and improving basic transport, waste and water infrastructure. The ESI Funds also help extend broadband access and e-Government services, they support youth not in education, employment or training, reinforce the capacity of the public employment service and improve the integration of employment, social and education services.
The tangible results delivered through EU support to structural change in Romania Romania is a beneficiary of significant European Structural and Investment Funds (ESI Funds) support and can receive up to EUR 30.8 billion until 2020. This represents around 3 % of GDP annually over the period 2014-2018 and 49% of public investment .
Romania is advancing the take up of the European Fund for Strategic Investments (EFSI). As of December 2017, overall financing volume of operations approved under the EFSI amounted to EUR 327 million, which is expected to trigger total private and public investment of EUR 1.1 billion into over 2.500 companies.
The Commission proposes that actions be based on the integrated pillars of re-launching investments, furthering structural reforms and modernizing public finances, paying particular attention to job creation and social inclusion. These priorities support the roadmap set out by the five Presidents to complete the European Economic and Monetary Union.
In the SABER Workforce Development Romania Country Report 2017 elaborated by World Bank, considered that Romania has made considerable progress in recent years towards reducing macroeconomic imbalances. Such reductions, together with monetary policies and structural reforms, either implemented or in progress, have contributed to maintaining macroeconomic and financial stability.
Taking these elements into account, the Commission has proposed for 2018 to focus efforts on the following priorities:
• Joining forces on artificial intelligence;
• Building a European partnership in blockchain technologies;
• Sharing data to personalise healthcare;
• Encouraging innovation with a new online tool; and
• Creating 5G cross-border testing corridors to support connected and automated mobility.
This strategy is based on the significant commitment brought by Romania to help the EU achieve the objectives of the 2020 Strategy efficiently, in smart and sustainable growth, social inclusion and climate change mitigation. In return, these investments will develop the competitiveness of the country, in urban and rural areas, in growth sectors such as ICT, energy, engineering, nanotechnology and bio-economy, ensuring benefits for the economy Romania and its citizens.
Currently there is only one set of rules governing the five EU structural and investment funds (ESI funds). These rules aim to establish a clear link with the Europe 2020 strategy to stimulate smart, sustainable and inclusive growth in the EU, improve coordination, ensure consistency in implementation, and maximize access to ESI funds by beneficiaries potential.
The 2014-2020 programming period introduced a new legislative framework for the five Funds, which fall within the sphere of cohesion policy, the common agricultural policy and the common fisheries policy at EU level.
2.1. EUROPE 2020
Since 2008, the European Union has been heavily affected by the financial crisis, rapidly transformed into a global economic crisis with wide social implications and eclipsing the beneficial effects of the Lisbon Strategy for Growth and Jobs. The Union responded quickly to this new challenge, initially through a "European Economic Recovery Plan" and then by developing a more realistic economic strategy for the 2020 horizon.
The Europe 2020 Strategy was designed as a European exit strategy from the global economic and financial crisis that started in 2008, but it risks being somewhat overtaken by events in 2010. Before even having enacted the new strategy, the European Union (EU) already faces challenges of a further-reaching nature and different dimension. The economic and financial crisis has transformed into a sovereign debt crisis with the risk of contagion to other eurozone members, calling into question not only the solvency of various member states but also many of the achievements that had already been taken for granted in the EU. It has highlighted the need for increased European economic cooperation in order to deal with the causes of the crisis (competitiveness differentials between member states and budgetary disequilibria) and impede spillovers into the monetary sphere, in particular in the eurozone.
The Europe 2020 Strategy, which received the go-ahead from the Spring European Council of 2010, is to reinforce economic policy cooperation with a view to promoting sustainable growth in the EU. It succeeds the Lisbon Strategy (2000-2010) and builds on the objectives and toolbox of the revised Lisbon Strategy of 2005 (focused on growth and jobs). Like the latter, it is driven by international competitiveness concerns and the promotion of productivity, growth and sustainability. It also makes use of the same governance framework.
Over the last decades the competitiveness rationale has been gaining ground in the EU. The Europe 2020 Strategy is one of successive European attempts at improving competitiveness and economic growth.
The Europe 2020 Strategy sets out the vision of a social market economy for Europe in the 21st century. It aims at transforming the EU into a smart, sustainable and inclusive economy with high levels of employment, productivity and social cohesion and at reinforcing the EU as an actor in global governance.
The Europe 2020 Strategy is therefore based on two strands. First, it identifies three priorities that come to clarify the nature of growth that the EU envisages: smart growth, developing an economy based on knowledge and innovation; sustainable growth, promoting a more efficient economy in terms of resource utilisation that is more ecological and more competitive; and inclusive growth, fostering an economy with high employment levels and which ensures social and territorial cohesion. Second, there are five headline targets that serve as benchmarks for the EU in 2020 on employment, education, social inclusion, research and development, and climate and energy. Combining these two strands leads to a total of seven flagship initiatives that are to promote smart, sustainable and inclusive growth and guide policymaking in the EU and the member states.
The Europe 2020 strategy, adopted by the European Council on 17 June 2010, is the EU's agenda for growth and jobs for the current decade. It emphasises smart, sustainable and inclusive growth as a way to overcome the structural weaknesses in Europe's economy, improve its competitiveness and productivity and underpin a sustainable social market economy.
The European Commission launched a new 10-year economic strategy, called Europe 2020, to boost European economy and promote a smart, sustainable and inclusive growth, based on a greater coordination of national and European economic policy. The initiative wants to overcome the weaknesses of the Lisbon strategy and paving the way for the creation on new jobs and a better quality of life. Europe 2020 sets out a vision of Europe’s social market economy for the 21st century and puts forward three mutually reinforcing priorities:
• Smart growth: developing an economy based on knowledge and innovation;
• Sustainable growth: promoting a more resource efficient, greener and more competitive economy;
• Inclusive growth: fostering a high-employment economy delivering social and territorial cohesion.
In order to reach these priorities, the Commission proposes five quantitative targets to fulfill by 2020:
• 75 % of the population aged 20-64 should be employed;
• 3% of the EU’s GDP should be invested in R&D;
• the “20/20/20″ climate/energy targets should be met (including an increase to 30% of emissions reduction if the conditions are right);
• the share of early school leavers should be under 10% and at least 40% of the younger generation should have a tertiary degree;
• 20 million less people should be at risk of poverty.
The European Commission adopted the "Partnership Agreement" with Romania on the mobilization of structural funds and EU investment in support of growth and employment for the period 2014-2020.
This agreement covering all regions of the country defines the strategy to be implemented for the optimal use of Structural Funds and European investment. These investments increased since 2007-2013, which put Romania on the path to employment and growth for the next ten years include the financing of European territorial cooperation and the allocation for the initiative for youth employment, under the cohesion Policy for 2014-2020.
The main objectives of these investments are focused on the fight against unemployment, the development of a green economy in the effective use of resources and the promotion of entrepreneurship. These funds will also be used to boost competitiveness and promote economic growth by supporting innovation, education and training in cities of all sizes and rural areas and to combat social exclusion.