Introduction

The TFEU9 _{sets out economic, social and territorial cohesion as an overarching goal} of the EU. This goal is pursued primarily through the Union’s cohesion policy, based on the use of the European Structural and Investment Funds for the creation of infrastructure and productive job-creating investments, as well as the promotion of employment, social inclusion, and human capital.10

Cohesion policy is characterised as the EU’s main investment policy with the objective to reduce social and territorial inequalities, targeting all regions and cities in the European Union in order to support job creation, business competitiveness, economic growth, sustainable development, and improve citizens’ quality of life.11 _It is delivered through three main funds:

 European Regional Development Fund (ERDF): aims to strengthen regional economic and social cohesion by investing in growth-enhancing sectors to improve competitiveness and create jobs. The ERDF also finances cross-border cooperation projects.

 European Social Fund (ESF): invests in people, with a focus on improving employment and education opportunities. It also aims to help disadvantaged people at risk of poverty or social exclusion.

 Cohesion Fund (CF): invests in green growth and sustainable development, and improves connectivity in Member States with a GDP below 90% of the EU-27 average.

In order to promote territorial cohesion, the EU’s cohesion policy has traditionally allocated large amounts of funding to investment in regions identified as falling behind. In many countries and regions since the economic and financial crisis the ESIF have become the main financial source to tackle regional development issues. These investments help to deliver EU policy objectives. In particular, cohesion policy provides the necessary investment framework and strategy to meet the agreed growth goals strategy. In the EU202012 _{strategy, whichadopts an inclusive}

growth objective with renewed commitment to ambitious employment, education and social objectives on equal standing with the economic ones, inclusive growth is described as “empowering people through high levels of employment, investing in skills, fighting poverty and modernising labour markets, training and social protection systems so as to help people anticipate and manage change, and build a cohesive society. It is also essential that the benefits of economic growth spread to all parts of the Union, including its outermost regions, thus strengthening territorial

9 European Union (2010) Consolidated version of the Treaty on the Functioning of the European Union, Official Journal of the European Union C83, 30.10.2010, Article 174.

10 European Union (2017) Regional Policy, Available at: http://ec.europa.eu/regional_policy/en/policy/what/investment-policy/ 11 European Commission (2014), An Introduction to EU Cohesion Policy, Available at:

http://ec.europa.eu/regional_policy/sources/docgener/informat/basic/basic_2014_en.pdf

12 Communication from the Commission EU2020 – A strategy for smart, sustainable and inclusive growth, COM (2010) 2020 of 3 March 2010; European Council Conclusions of 17 June 2010.

cohesion. It is about ensuring access and opportunities for all throughout the lifecycle”.13

In general, inclusive growth refers to one of the three general objectives of the Europe 2020 strategy, which aims at “fostering a high-employment economy delivering social and territorial cohesion”. This involves the need to raise employment, skills levels, and to reduce poverty in Europe. Four headline targets are linked to this aim14_:

a) Raise the employment rate of 20-64-year-olds to 75%; b) Reduce school drop-out rates below 10%;

c) Ensure that at least 40% of 30-34-year-olds complete third-level education; d) Ensure 20 million fewer people are at risk of poverty/social exclusion.

Furthermore, within the strategic and regulatory15 _{framework for 2014-2020 for the} European Structural and Investment Funds, 11 thematic objectives are supported:

1. Strengthening research, technological development and innovation

2. Enhancing access to, and use and quality of information and communication technologies (ICT)

3. Enhancing the competitiveness of small and medium-sized enterprises (SMEs)

4. Supporting the shift towards a low-carbon economy in all sectors

5. Promoting climate change adaptation, risk prevention and management 6. Preserving and protecting the environment and promoting resource efficiency

7. Promoting sustainable transport and removing bottlenecks in key network infrastructures

8. Promoting sustainable and quality employment and supporting labour mobility

9. Promoting social inclusion, combating poverty and any discrimination

10. Investing in education, training and vocational training for skills and lifelong learning

13 Communication from the Commission EU2020 – A strategy for smart, sustainable and inclusive growth, COM (2010) 2020 of 3 March 2010; European Council Conclusions of 17 June 2010.

14 Communication from the Commission EU2020 – A strategy for smart, sustainable and inclusive growth, COM (2010) 2020 of 3 March 2010; European Council Conclusions of 17 June 2010.

15 Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006.

11. Enhancing institutional capacity of public authorities and stakeholders and efficient public administration

Out of the above mentioned Thematic Objectives, the funding priorities that have the closest connection to contributing to the high-level ‘inclusive growth’ objectives mentioned above are as follows:

 Thematic Objective 8. Promoting sustainable and quality employment and supporting labour mobility

 Thematic Objective 9. Promoting social inclusion, combating poverty and any discrimination

 Thematic Objective 10. Investing in education, training and lifelong learning

Moreover, interventions under Thematic Objective 1 “Strengthening research, technological development and innovation” and 2 “Enhancing access to, and use and quality of, information and communication technologies” may also specifically target, and have significant contributions to, inclusive growth. These would mainly target research and innovation helping vulnerable groups (e.g. in e-health initiative under TO1); or the provision of e-services (e-health, e-education, e-inclusion, under TO2).