ESI (European Structural and Investment) funds: Region's achievements, EUR 3.5 billion to be allocat

The European Structural and Investment Funds available in Lombardy for the period 2021-21 represent an extraordinary new opportunity - and at the same time “a challenge”. This challenge is at the heart of the annual event dedicated to the ESI Funds. This was promoted by the Lombardy Region on Tuesday 26 October in the Gaber auditorium of Palazzo Pirelli and streamed on the Open Innovation platform, with the title “Scenari di innovazione, inclusione e sviluppo sostenibile” (Scenarios of innovation, inclusion and sustainable development).

This event provided an overview of how the ERDF ROP and ESF ROP resources - of the 2014-2020 planning period (about to be closed) - have been allocated. Furthermore, it outlined the new European planning cycle 2021-27, for which the funds amount to a total of - adding up European Social Fund (ESF) and European Regional Development Fund (ERDF) - as much as EUR 3.5 billion: a net increase compared to the EUR 2 billion of the last seven-year period.

The event was introduced by the relevant regional councillors, such as Melania Rizzoli (Training and Labour) and Fabrizio Sala (Education, University, Research, Innovation, and Simplification).

In order to watch the videos of the speeches and read the presentation slides, please visit the dedicated page on this platform: click here.

Innovation: priorities

Fabrizio Sala claimed: “The funds of the Community Planning are an important tool that the Lombardy Region can make available to the territory.  Our priorities for action are clear and precise: enhancing our data, also through the adoption of artificial intelligence methodologies. Furthermore, we would like to intensify an Open Innovation approach and encourage technology transfer”.

“For the next few years,” Sala continues, “there are plans to invest in large-scale industrial development projects, the promotion of industrial doctorates, but also the creation of technological hubs on strategic issues such as digital, sustainable mobility, health, and the circular economy”.

Under the European Regional Development Fund (ERDF), more than half of our resources - i.e. around EUR 1.1 billion - will be dedicated to the strategic objective: “A more competitive and smarter Europe”. A total of EUR 633 million is dedicated to the strategic goal: “Making Europe greener”. Furthermore, EUR 240 million will be allocated to the social development objectives: “Bringing Europe closer to its citizens”.

European structural funds to boost the economy

“Both central and regional Italian public administrations,” stressed Councillor Rizzoli, “for the first time find themselves not only planning the country's development and cohesion policies, but at the same time planning the most extensive investment and restructuring of the Italian economy and society ever undertaken. To do so, they will be able to count on the funds that the European Union has allocated through the “Next Generation EU” and its intervention plans, including the National Recovery and Resolution Plans (RRP). In this perspective, the Lombardy Region has oriented its 2021-2027 planning according to the integration of “ERDF” and “ESF”, in order to stimulate a coordinated and effective response. Specifically, the objective is to support the recovery and growth of competitiveness in the region. Taking steps to reduce inequalities between citizens and to increase their abilities. Additionally, by promoting the transition to a new model of sustainable, inclusive, and innovative development.”

The representatives of the ROP ESF 2014-2020 and ROP ERDF 2014-2020 Managing Authorities (Giuseppina Panizzoli and Dario Sciunnach), spoke about the “implementation of the ERDF and ESF Regional Operational Programmes 2014-2020”.

Research and Innovation enabled by the ERDF ROP

As regards the progress of the ROP ERDF 14-20, the (more than) EUR 510 million granted by the Lombardy Region are equal to 94.6% of the funds planned on Axis I (the one dedicated to Research, Development and Innovation).

The same percentage (94.6%) for funds earmarked for SME Competitiveness (Axis III). These amount to more than EUR 240 million out of a total planned funds of almost EUR 254 million.

This is how the ERDF ROP funds distributed by the Lombardy Region have been used. As regards Axis I, 959 R&I projects have been financed. These included 23 initiatives implemented to support SMEs, large enterprises, research organisations and technology clusters with the involvement of Finlombarda, the finance company of the Lombardy Region.

Among these initiatives is the “Call Hub Ricerca e Innovazione” (Call Hub Research and Innovation) competition, financed by the Lombardy Region, with a total contribution of 114.5 million euros. This has selected 33 projects of excellence and involved more than 200 companies in the region in a partnership between large enterprises, SMEs, innovative start-ups and research centres. As Dario Sciunnach recalls, the idea of encouraging companies to collaborate with local universities was a winning “gamble” and one that was appreciated by the companies themselves.

Nearly 20,000 projects were funded for the competitiveness of SMEs (Axis III), with 20 implemented initiatives.

It should be noted that Lombardy stands out as an excellence in achieving the programme targets in terms of certified expenditure. In fact, in the Accounting Period July 2020 - June 2021 alone, € 271 million was certified, more than the sum of what was certified in the six previous Accounting Periods (€ 269 million).

Inclusion and support for Smart Working

With regard to the ESF - European Social Fund, (i.e. the instrument with which the European Union supports employment in the Member States and promotes economic and social cohesion) this foresaw planned funds of 970 million euros. Furthermore, out of these, 853.9 million euros have already been allocated, disbursed funds amount to 745.5 million euros, with a certification of expenditure equal to 643.7 million euros.

Most of the funds - EUR 379 million - have been allocated to ESF Axis II, dedicated to social inclusion; EUR 302 million have been allocated to Axis III - Education and Training; Axis I - Employment has absorbed funds equal to EUR 236.7 million; and 20 million have been allocated to Axis IV - Administrative capacity.

Furthermore, thanks to the ESF ROP, there are initiatives that support flexible working through the publication of a public notice for the adoption of company plans aimed at smart working. This was refinanced with 2 million euros for a total allocation of 11 million euros. At the moment the preliminary investigation of the applications for contributions received is underway, as of 30/09/2021 more than 760 vouchers have been admitted for a total of 10 million euros.

In short, this is a solid tool for guiding companies towards a more flexible and resilient work organisation. In fact, the impact of the notice was extended by regional decree no. 3516 of 18 March 2020, which extended participation also to employers who introduced smart working for their employees during the period concerning the COVID-19 epidemic emergency (379 companies took advantage of it, out of a total of 764).

Challenges concerning the 2027 planning

The morning also saw a debate between several authorities called to discuss the “new opportunities of the European funds in the seven-year period running from 2021/2027”. For the European Commission, speakers included Francesca Raimondi (DG REGIO), Luciano Conte (DG EMPL), Niccolò Querci (DG RTD), then Laura Cavallo from the Department for Cohesion Policies), Marianna D'Angelo from the National Authority for Active Employment Policies and Annamaria Poso, from the Agency for Territorial Cohesion.

Some possible critical issues were raised prior to discussing the opportunities. In particular, it is good news that the EU Commission has allocated significant funds to the circular and green economy through the Green Deal, but - as Raimondi warns - “if ecological transition and green are perceived as a luxury, we are doomed to fail. In order to raise awareness of the positive impacts of EU funds on our cities and regions, we need to be closer to citizens”.

Another 'hot' topic is the RRP. “In addition to the investments envisaged by the RRP, it is also essential to talk about reforms,” Raimondi also urges, “which must tackle some Italian issues such as those associated with public administration, justice, legislative simplification, and enhancement of economic competition”.

In her speech, Federica Marzuoli (Coordination of Community Planning and Management of the Development and Cohesion Fund) stated: “In the RRP, the Regions were considered as implementers of expenditure, without any involvement in planning. However, we are now beginning to have a more complete picture of the possibilities it offers us”.

Niccolò Querci spoke about Horizon Europe - the new 95.5 billion euros research and innovation framework programme - and its possible synergies with the ESI funds: “The European Commission has concluded that synergies between different funding lines improve the impact of R&I initiatives: 1 + 1 in this case generates a result greater than 2. For the new planning period, the Commission has therefore worked to further promote these synergies - as stipulated in the regulations of all the programmes involved - between HE and ordinary funds, which support different but complementary initiatives. An example? The ERDF can bring products developed by HE-funded projects to the market. It can also finance ecosystems that enable and enhance innovation”.