EU Cohesion Policy 2014 2020 Proposals from the European ... fileEU Cohesion Policy 2014-2020 Proposals from the European Commission. 2 European Union Regional Policy –Employment,

1

European UnionRegional Policy Employment, Social Affairs and Inclusion

EU Cohesion Policy 2014-2020

Proposals from theEuropean Commission

2


Legislative package

The General Regulation Common provisions for cohesion policy, the rural

development policy and the maritime and fisheries policy Common provisions for cohesion policy only (ERDF, CF,

ESF) Fund specific regulations

ERDF regulation CF regulation ESF regulation ETC regulation

EGTC regulation

3


Building Blocks Financial Framework and co-financing rates Strategic approach Conditionalities and performance Programming Territorial development Financial instruments Monitoring, evaluation and indicators, information and

communication Conditions of assistance, including simplified cost s Management and control and financial management Scope, thematic concentration in ERDF and CF regulat ions Scope, thematic concentration in ESF regulation European territorial cooperation Comitology, etc.

4


Block 1

Objectives, Financial Framework and co-financing rates

(mainly cohesion policy specific provisions)Articles 81-86 of CPR

Article 53 of CPRArticle 22 of CPR

Articles 110-111 of CPR

5


Mission and Goals

Mission of EU cohesion policy to reduce disparities between Europe's regions

strengthening economic, social and terrritorialcohesion in line with article 174 of the Treaty

to contribute to the Union Strategy of smart, sustainable growth

Two goals: Investment for growth and jobs European Territorial cooperation

6


Budget for Cohesion Policy post 2013

billion EUR (2011 prices)

Cohesion Fund* 68.7

Less developed regions 162.6

Transition regions 39.0

More developed regions 53.1

Territorial Cooperation 11.7

Extra allocation for outermost and northern regions0.9

TOTAL** 336.0

Connecting Europe facility for transport, energy and ICT40.0

TOTAL 376.0

*Cohesion Fund will ringfence 10 billion EUR for the new Connecting Europe Facility

**Includes 2,5 billion EUR allocation for food for deprived persons

7


Geographical coverage of support

Three categories of regions Less developed regions (GDP per capita < 75% of EU average) Transition regions (GDP per capita between 75% and 90%) More developed regions (GDP per capita > 90%)

The new category of transition regions replaces the current statistical phasing-out and phasing-in regions

Why a new category for transition regions? Fairer system for regions with similar level of economic development Helps to soften the transition between less and more developed regions

Safety net for regions whose GDP per capita is below 75% of the EU average in 2007-2013

8


9


Cohesion Fund for Member States with GNI per capita

10


Financial support from the Funds

Maximum co-financing rates at the level of the priority axis: 85 % for the Cohesion Fund 85 % for the less developed regions of Member States whose average

GDP per capita for the period 2007 to 2009 was below 85 % of the EU-27 average during the same period and for the outermost regions

80% for the less developed regions in Member States eligible for the transitional regime of the Cohesion Fund on 1 January 2014

75% for the less developed regions in Member States other than thosementioned above

75% for all regions whose GDP per capita for the 2007-2013 period was less than 75% of the average of the EU-25 for the reference period but whose GDP per capita is above 75% of the GDP average of the EU-27

60 % for other transition regions 50 % for the more developed regions (apart from those whose GDP

per capita was less that 75% of EU average in 2007-2013) 75% for European Territorial Cooperation

11


Block 2

Strategic approach(common provisions for the CSF Funds)

Articles 3-15 of CPR

12


Common Principles for all Funds (1)

Strengthening partnership and multi-level governance Introduction of a binding European Code of

conduct Sets out objectives and criteria to support the

implementation of partnerships Facilitates sharing of information and good

practices among Member States

Compliance with Union and national law

13


Common Principles for all Funds (2)

Reinforcement of gender equality and non-discriminatio n: Horizontal principle of the regulations Specific actions in OPs, covered by ex-ante evaluation Opinion of the national equal opportunities body on the OPs Project selection Followed up in reporting

Promoting sustainable development Horizontal principle of the regulations Specific actions in OPs, covered by ex-ante evaluation Project selection Followed up in reporting Tracking of expenditure for climate change objectives

14


Thematic Objectives to Deliver Europe 2020 Strengthening research, technological development a nd innovation

Enhancing access to, and use and quality of, inform ation and communication technologies

Enhancing the competitiveness of small and medium-s ized enterprises, the agricultural sector (for the EAFRD) and the fisheri es and aquaculture sector (for the EMFF)

Supporting the shift towards a low-carbon economy i n all sectors

Promoting climate change adaptation, risk preventio n and management

Protecting the environment and promoting resource e fficiency

Promoting sustainable transport and removing bottle necks in key network infrastructures

Promoting employment and supporting labour mobility

Promoting social inclusion and combating poverty

Investing in education, skills and lifelong learnin g

Enhancing institutional capacity and an efficient p ublic administration

15


Strengthening the Strategic Approach

Operational Programmes

Partnership contract

Common Strategic Framework

16


Common Strategic Framework

Sets a comprehensive investment strategy for all the funds, including rural development and maritime and fisheries policies

Translates the thematic objectives into key actions for Member States and regions

Establishes priority areas for cooperation activities

Ensures better coherence and consistency with the National Reform Programmes

17


Partnership Contract

Prepared at national level with close involvement of p artners

Agreed between the Commission and Member State, incl udes :

The contribution of the CSF Funds towards the achievement of thematic objectives

Specific objectives and corresponding indicators that translate Europe 2020 priorities in a national and/or regional context

An integrated approach for territorial development supported by the CSF Funds

Arrangements for effective implementation: involvement of partners, ex-ante conditionalities, performance framework, additionality

Arrangements for efficient implementation: administrative capacity, administrative burden reduction

18


Adoption and amendment of thepartnership contract

The Commission shall assess the consistency of the Partnership Contract with the CPR, with the Common Strategic Framework, and the country-specific recommendations under Article 121(2) of the Treaty and the Council recommendations adopted under 148(4) of the Treaty, taking account of the ex ante evaluations of the programmes

The Commission shall adopt a decision approving the PartnershipContract within 6 months of its submission

If the Common Strategic Framework is revised, the Member States shall propose amendments, where necessary, to their Partnership Contract and programmes to ensure their consistency with the revised Common Strategic Framework

19


Block 3

Conditionalities and performance(common provisions for the CSF Funds)

Articles 17, 20-21 of CPR and Annex IV Articles 18, 19 of CPR and Annex I

20


Ex-ante conditionality

Conditions to be fulfilled prior to submission of Partnership Contracts and operational programmes

Directly related to the thematic objectives or horizontal conditions of effectiveness

Specified criteria for fulfilment defined in annex IV of CPR Conditionalities must be fulfilled within two years of the

approval of the Partnership Contract or by end of 2016 Non-fulfilment of conditionalities at the time of the adoption of

the programmes or by the deadline outlined above constitutes a basis for suspension of payments

21


Negotiation and agreement on commitments: The agreed commitments are set out in the programmes and synthesised in the Partnership Contract.

Regulation: Thematic and horizontal ex-ante conditionalities set out in the Regulation

Preparation of programming documents: Member States undertake a self-assessment verifying whether the ex-ante conditionality criteria have been met.

Conditionality respected:Draft programmes explain

that no further action needs to be taken

Not respected:Draft programmes lay down commitments for fulfilment,

payments could be made onlyupon fulfilment

Partially respect:Draft programmes lay down commitments for fulfilment

Submission of programming documents: The results of the self-assessment and commitments are included in the draft programmes.

22


Reinforced macroeconomic conditionality for the Funds

Closer link between cohesion policy and the economic governance of the Union in two areas: Council recommendations

The broad economic guidelines, the employment guidelines as well as the Eurozone-specific measures

The excessive deficit procedure The macroeconomic imbalances procedure

Union financial assistance to a Member State under the European financial stabilisation mechanism under the facility providing medium-term financial assistance

for Member States' balances of payments in the form of an ESM loan

23


Amendment of programmes and partnership contracts

Commission may request or propose amendments to the Partnership Contract and relevant programmes where it is necessary to: support the implementation of Council recommendations maximise the impact of the funds where the Member State

receives financial assistance from the EU

Commission can suspend payments where Member State fails to react to Commission requests or observations within the established deadlines

24


Specific provisions linked to adjustment programmes

Where a Member State receives Union financial assistance linked to an adjustment programme, the Commission may amend the Partnership Contract and the OPs without a proposal by the Member State

In this case the Commission will become directly involved in the management of the programmes

25


Automatic suspension of paymentsThe Commission shall suspend part or all of payments and commitments where:

the Council decides or concludes that a Member State: does not comply with measures set out by the Council in relation to

the economic policy guidelines for Eurozone members has not taken effective action to correct its excessive deficit has not taken the necessary measures to correct macro-economic

imbalances it concludes that the Member State has not taken measures to

implement the adjustment programme and decides not to authorise the disbursement of the financial assistance granted to this Member State

the Board of Directors of the European stability mechanism concludes that the conditionality attached to an ESM financial assistance in the form of an ESM loan to the concerned Member State was not met and as a consequence decides not to disburse the stability support granted to it

26


Application and lifting of suspension

When deciding to suspend part or all of the payments or commitments the Commission shall ensure that the suspension is: proportionate and effective, takes into account the economic and social circumstances

of the Member State concerned, and respects the equality of treatment between Member

States, in particular with regard to the impact of the suspension on the economy of the Member State concerned.

All suspensions shall be lifted without delay when the underlying cause for suspension has been addressed

27


Performance framework

Focuses on the achievement of programme objectives

Sets out milestones and targets for performance of programme priorities for 2016, 2018 and 2022

Milestones established for 2016 shall include financial indicators and output indicators

Milestones established for 2018 shall include financial indicators, output indicators and where appropriate, result indicators

Milestones may also be established for key implementation steps

28


Performance review

The performance framework shall constitute the basis for the performance review in 2017 and 2019 and the disbursement of the performance reserve

Information for the performance review is drawn from the progress reports

Member States are expected to react to significant shortfalls in the achievement of milestones (measures to improve performance, reprogramming)

In the absence of sufficient action, Commission can suspend payments

Significant failure to achieve the targets set for 2022 in the performance framework can lead to a financial correction at the end of the programming period

29


Performance reserve

A performance reserve of 5% is set aside at the beginning of the programming period (exception for ETC)

The performance reserve is established per CSF Fund, per Member State and per category of region

The 5% reserve is allocated to each Member State following the performance review in 2019

Allocation can only be used for priority axes where performance has been satisfactory (milestones have been achieved) based on Member State proposal

30


Block 4

Programming(both common and specific provisions)

Articles 23-27 of CPRArticles 87-98 of CPR

Articles 51 and 52 of CPRArticles 108 and 109 of CPR

Articles 6-12 of the ESF Regulation

31


Programming

Common provisions on preparation, adoption and amendment, as well as on the shared elements of the content

Specific provisions on the content of operational programmes under cohesion policy: Strategy for smart, sustainable and inclusive growth Description of priority axes Contribution to territorial development Arrangements to ensure effective implementation Financing plan Implementing provisions Specific actions (related to horizontal principles)

Operational programmes submitted shall be accompanied by the ex-ante evaluation

32


Adoption and amendment ofoperational programmes

The Commission shall assess the consistency of programmes with this Regulation, the Fund-specific rules, their effective contribution to the thematic objectives and the Union priorities specific to each CSF Fund, the CommonStrategic Framework, the Partnership Contract, the country-specific recommendations under Article 121(2) of the Treaty and the Council recommendations adopted under 148(4) of the Treaty, taking account of the ex ante evaluation.

The Commission shall adopt a decision approving the operational programmes within 6 months of its submission

Any amendment to an operational programme shall be dulysubstantiated and shall set out the expected impact of theamendment. Where necessary the Commission will amend the Partnership Contract at the same time with the amendment of the operational programme

33


Reinforcing Integrated Programming

Integrated programme approach The Common Strategic Framework at EU level

and the Partnership Contract at national levelcovering all the CSF Funds

Possibility for Member States to prepare and implement multifund programmes combining ERDF, ESF and the Cohesion Fund

34


Major projects

A coherent approach focusing on: realistic planning the preparation of the project pipeline monitoring and regular reporting

2007-2013 threshold maintained Clear information requirements Major projects submitted must correspond to the list in the

operational programme Limiting the scope of Commission appraisal Expenditure can be declared only upon approval of the

major project by the Commission

35


Joint actions plans

Optional approach operations implemented and financedbased on outputs and results agreed between the Member State and the Commission

JAP adopted by the Commission, based on a proposal by the Member State

Negotiation on: Outputs and results necessary to reach an objective such as an

education reform

Pricing of outputs and results based on lump sums and standard scales of unit costs

Payments correspond to the achievement of milestones Control of outputs and results, not expenditure by the

beneficiary Flexibility of financial management practices at beneficiary level

36


Block 5

Territorial development(common and specific provisions)

Articles 28-31 of CPRArticles 99 of CPR

Articles 7-11 of the ERDF Regulation

37


Reinforcing community-led localdevelopment

Integrated approach to community-led local development Facilitates integrated investment by small

communities including local authorities, NGOs, and economic and social partners

Integrated local development strategies Local action groups to design and implement

these strategies Integrated approach and common rules = can be

financed jointly from ERDF, ESF, EAFRD and EMFF

38


Reinforcing Territorial Cohesion

Focus on sustainable urban development At least 5% of the ERDF resources to be allocated to integrated

actions for sustainable urban development Creation of an urban development platform

To promote capacity-building and networking between cities and exchange of experience on urban policy at EU level

Adoption of a list of cities to participate in the platform Support for innovative actions in the field of sust ainable urban

development - Subject to a ceiling of 0,2% of the annual funding Integrated territorial investments

Investments under one or more Operational Programmes can take the form of integrated territorial investments

Adressing the specific needs of geographical areas mo st affectedby poverty or target groups at highest risk of disc rimination orexclusion with special regard to marginalised commun ities contribution highlighted in the content of each OP

39


Block 6

Financial instruments(common provisions for the CSF Funds)

Articles 32-40 of CPR Article 15 of the ESF Regulation

40


Financial Instruments (1)

Common rules for cohesion policy, the rural development policy and the maritime and fisheries policy

Clarification of implementation rules Reinforcement of legal certainty Extension of the present scope of financial

instruments Simplification of access to instruments such

as JEREMIE, JESSICA and JASMINE

41



Necessity for an ex ante assessment which has identified market failures or suboptimal investment situations, and investment needs

Combination with grants, interest rate subsidies and guarantee fee subsidies

Combination with other financial instruments Eligibility of in-kind contributions in limited

circumstances

42



Options for set-up:1) EU level platforms2) Financial instruments established by the Member States

complying with standard terms and conditions laid down by the Commission (standard models)

3) Financial instruments of specific design established by Member States

Support may be given by: Investment in the capital of legal entities Entrusting implementation tasks to the EIB, international

financial institutions or a body selected in accordance with applicable Union and national rules

Direct implementation by the managing authority (for loans and guarantees only)

43



Special management and control provisions for instruments set up at EU level

Special provisions for financial management: more flexible co-financing arrangements the 2 year rule clarification of eligible expenditure at closure re-use of resources until closure the use of legacy resources specific reporting requirements (deadlines aligned with

annual reports on implementation)

44


Block 7

Monitoring, evaluation and indicators Information and communication

(both common and specific provisions)


Article 6 and Annex of ERDF Regulation Article 4 and Annex of CF Regulation

Article 5 and Annex of the ESF regulationArticle 15 and Annex ETC RegulationArticles 105-107 and Annex V of CPR

45


A Focus on Results: Indicators

Fund Specific Common Indicators Common output and, where appropriate, result

indicators Fund specific rules on baselines, targets and reporting

Programme Specific Indicators Output indicators, where appropriate Result indicators related to the priority axis

46


A Focus on Results: Monitoring & Reporting (1)

Lighter annual reports on implementation : Information of financial progress and indicators Actions to fulfil ex-ante conditionalities Issues which affect the performance of the

programme Information on the implementation of major projects

and JAPs Thorough information and analysis of all the

elements of the OP required only in 2017, 2019 and for the final report

47


A Focus on Results: Monitoring & Reporting (2)

Financial data to be submitted electronically 4 tim es a year: the total and public eligible cost of the operations and

the number of operations selected for support the total and public eligible cost of contracts or other

legal commitments entered into by beneficiaries in implementation of operations selected for support

the total eligible expenditure declared by beneficiaries to the managing authority

A progress report (at national level) common for the CSF Funds to be submitted in 2017 and 2019 content corresponds to that of the Partnership Contract

48


A Focus on Results: Evaluation (1)

Ex-ante evaluation : Justification for selected thematic objectives

contributing to EU2020 & consistency, relevance and realism of indicators, targets & financial allocations

Monitoring and evaluation capacities and appropriate data collection arrangements

Milestones for performance framework

49


A Focus on Results: Evaluation (2)

Evaluation during the programming period : Evaluation plan obligatory to be adopted by first

Monitoring Committee More evaluation of the effects of interventions

(impact) Implementation evaluations when necessary Synthesis report of evaluations by MS in 2020

Ex-post evaluation by the Commission

50


Information and Communication

Rules on information and communication is part of main regulation

7 year strategy with yearly updates (no Commission approval, Monitoring Committee adoption)

List of operations with comparable information Single national website/portal for all programmes Designation of national information officers Networks to ensure exchange of experience and good

practice

51


Block 8

Conditions of Assistance(common provisions for the CSF Funds)


Articles 13 and 14 of the ESF Regulation

52


Review of the rules on revenue generation Member States can choose between:

The current approach based on the funding gap analysis; A new approach based on application of a flat rate revenue

percentages established at EU level for different types of operations

Where revenue cannot be determined in advance, the net revenue must be deducted retrospectively

Maintaining current exemptions (for all ESF operations, and operations under EUR 1 million, state aid and financial instruments) to ensure a proportionate approach

Revenue generating operations

53


An operation may receive support from one or more CSF Funds and from other Union instruments , provided that the expenditure item included in a request for payment for reimbursement by one of the CSF Funds does not receive support from another Fund

Net revenue directly generated by an operation during it s implementation which has not been taken into account at the time of approval of the operation, shall be deducted from the eligible expenditure of the operation in the final payment claim submitted by the beneficiary. This rule shall not apply to financialinstruments and prizes

Operations shall not be selected for support by the C SF Funds where they have been physically completed or fu lly implemented before the application for funding under the programme is submitted by the beneficiary to the managingauthority

Changes in eligibility rules (1)

54


In the case of repayable assistance, the support repaid to the body that provided it, or to another competent authority of the Member State, shall be kept in a separate account and reused for the same purpose or in accordance with the objectives of the programme

As a rule, VAT is not eligible. However, VAT amounts shall be eligible where they are not recoverable under national VAT legislation and are paid by a beneficiary other than non-taxable person as defined in the firstsubparagraph of Article 13(1) of Directive 2006/112/EC, provided that such VAT amounts are not incurred in relation to the provision of infrastructure


55


Eligibility of operations depending on their location Operations supported by the CSF Funds shall be located in

the area covered by the programme under which they are supported

Exemptions subject to conditions: benefit to the programme area ceiling of 10% at the level of a priority axis Monitoring Committee approval fulfilment of management, control and audit obligations

Only promotional activities may be financed outside the Union

Provisions do not apply to ETC and ESF


56


Grants may take the following forms: reimbursement of eligible costs actually incurred and paid,

together with, where applicable, in-kind contributions and depreciation;

standard scales of unit costs; lump sums not exceeding EUR 100 000 of public

contribution; flat-rate financing, determined by the application of a

percentage to one or several defined categories of costs. The Member State may choose which option to use -

exception for ESF grants < 50.000 EUR: only simplified costs are allowed

Reimbursement options

57


Simplified costs can be established on the basis of: a fair, equitable and verifiable calculation method based on:

statistical data or other objective information; or the verified historical data of individual beneficiaries or the

application of their usual cost accounting practices; methods and corresponding scales of unit costs, lump sums and

flat rates applicable in Union policies for a similar type of operation and beneficiary;

methods and corresponding scales of unit costs, lump sums and flat rates applied under schemes for grants funded entirely by the Member State for a similar type of operation and beneficiary;

rates established by the CPR or the Fund-specific rules (no methodology required).

Simplified costs (1)

58


Rates established at EU level shall include: A flat rate for indirect costs (all CSF Funds) - up to

15 % of eligible direct staff costs For ETC - staff costs up to 15 % of the direct costs

other than the staff costs of that operation. For ESF:

scales of unit costs / lump sums established by theCommission

40% flat rate of direct personnel costs to calculate the amount of all the other eligible costs.

The rates established at EU level will not need to be justified by analysis at national or regional level

Simplified costs (2)

59


Durability affected when an operation undergoes: a cessation or relocation of a productive activity; a change in ownership of an item of infrastructure

which gives to a firm or a public body an undue advantage; or

a substantial change affecting its nature, objectives or implementation conditions which would result in undermining its original objectives.

Clarification of situations where exemptions apply ESF, operations other than infrastructure and productive investment, financial instruments and non-fraudulent bankruptcy

Durability

60


Documents

EU Cohesion Policy 2014 2020 Proposals from the European ... fileEU Cohesion Policy 2014-2020 Proposals from the European Commission. 2 European Union Regional Policy –Employment,