Information Overview SF: Regulatory Context Workshops for EC Delegation Patrick Colgan,Ján Krištín Structural instruments - Regulatory Context in Brief

InformationOverview

SF: RegulatoryContext

Patrick Colgan,Ján Krištín

Workshops for

EC DelegationStructural instruments

-Regulatory Contextin Brief Overview

InformationOverview



Workshops for

EC Delegation

Objectives for Community Support of Regional Policy

• Objective 1: For NUTS II regions whose per capita GDP (in PPP) is lower than 75% of EU average (94/96 data)

• Objective 2: For areas affected by socio-economic restructuring

• Objective 3: For regions not covered by Objective 1 - to support all human resources actions across a Member State

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EC Delegation

Objective 1

• List of eligible regions decided by the European Commission

• 22% of EU population• 69.7% of the funds (136 billion EURO)• Outermost and ex-Objective 6 regions

included as Objective 1 regions• Transitional period of 6 or 7 years for

areas losing eligibility • Objective 1 funds also for PEACE and

Swedish coast programmes

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EC Delegation

Objective 2

• Total coverage = 18% of EU population

• 11,6% of the funds (22,5 billion EURO)

• Indicative coverage of 4 strands at EU level:- industrial and service areas (10%)- rural areas (5%) -urban areas (2%)- fisheries-dependent areas (1%)

• Transitional period of 6 years for areas losing eligibility

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Objective 3

• 12.3% of the funds (24 billion EURO)

• Adapting and modernising systems of education, training and employment:

- accompanying economic and social changes

- lifelong education and training systems

- active labour market policies to fight unemployment

- promoting social inclusion and equal opportunities

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EC Delegation

Structural Instruments

• European Regional Development Fund

• European Social Fund

• European Agriculture Guarantee and Guidance Fond (EAGGF)

• Financial Instrument for Fisheries Guidance

• Cohesion Fund

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EC Delegation

European Regional Development Fund

Mission: “to redress regional imbalances in

Community”“to promote stable and sustainable

development”Fields of intervention:• productive investment to create and/or

safeguard permanent jobs• infrastructure• endogenous potential

- local development- SMEs

• technical assistance

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EC Delegation

European Social Fund

Mission: “human resource development and employment”

Fields of intervention:• Support for multi-annual National Action

Plans- active labour market policies to

promote integration- social inclusion/ equal opportunities- lifelong learning systems- training for innovation and adaptability- improved participation of women

• Local development and Territorial Employment Pacts

• Information society

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EC Delegation

European Agriculture Guarantee and Guidance Fund (EAGGF)

Mission: “support CAP, rural development and improvement of agricultural structures”

Fields of intervention:• ‘Accompanying’ measures

-early retirement-agri-environment-forestry-less-favoured areas-Other measures -restructuring of farms-setting up of young farmers-training-processing and marketing

• Rural development measures

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EC Delegation

Financial Instrument for Fisheries Guidance

Mission: “balanced resource management and competitive structures”

Fields of intervention:

• Measures to ensure a sustainable balance to supply and demand

• Strengthening competitiveness

• Processing and marketing

• Revitalisation of fisheries areas

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EC Delegation

Cohesion Fund

• Mission: support for improvement of transport infrastructure and environment

• Eligibility criteria:- for countries with a GNP/inhabitant

lower than 90% of the EU average- for projects in transport and

environment fields

• Annual budget: 2,615 billion EURO per year

• Review of eligibility in 2003

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EC Delegation

Planning and use of funding instruments (1)

Objective 1Objective 1

• 1 CSF, with 1 OP per region (or SPD if < 1 billion EURO)

• funded by the ERDF, ESF, EAGGF-Guidance, FIFG

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EC Delegation

Planning and use of funding instruments (2)

Objective 2Objective 2• 1 SPD per region (NUTS II level)• funded by the ERDF, ESF (EAGGF-Guarantee)

Objective 3Objective 3• 1 SPD per country• funded by the ESF

Community Initiatives:Community Initiatives: one Fund per Initiative

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EC Delegation

Partnership arrangements (1)A more decentralised cohesion policy

• Within the Member States:Within the Member States:widening and deepening definition of widening and deepening definition of the partnershipthe partnershipregional and local authorities and

other competent authorities• economic and social partners• other competent bodies including NGOs, environmental sector etc.• active involvement of partners in all stages of programming

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EC Delegation

Partnership arrangements (2)A more decentralised cohesion policy

• Between the Commission Between the Commission and the Member Statesand the Member States

• a clear definition of responsibilities with three key players

- the Commission

- the programme Management Authority

- the Monitoring Committee

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EC Delegation

Programming: 4 main steps1. Programme guidance issued by the

Commission

2. Development plans submitted by Member States after consultation with partners

3. Adoption of strategy by the Commission:- quantified strategic targets- priorities- funding allocations

4. Detailed programming of measures by Management Authority and Monitoring Committees

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EC Delegation

Planning and programming timetable

• Plans and programmes to cover 7 years (except of transition areas)

• Plans submitted by Member States within 4 months after list of eligible regions is concluded

• Commission decision within 5 months of receiving plans: CSF or SPD

• Commission decision within 5 months of receiving proposed OPs

• Member States to submit Programme Complement within 3 months of approval of SPD or OP

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EC Delegation

Requirements on plans and programmes

• Regional Developments Plans:- reinforced ex- ante evaluation

• CSF, SPDs:

- strategic priorities, financial allocations a. methods of implementation

• SPDs and OPs will no longer contain measures, as they did before

• Programme Complement: measures, finance by measure, beneficiaries, publicity actions

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EC Delegation

Programming: who does what? (1)

Commission:• determines eligible regions and

indicative financial allocations

• establishes programme guidance

• adopts (modifies) programmes only at the level of strategic priorities

• monitories at strategic level

• approves large-scale projects (>EURO 50 million)

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EC Delegation


Member State-Managing Authority:• prepares plans

• prepares and adopts the programming complement

• sub-delegates responsibilities as necessary - global grants

• selects projects

• prepares annual report

• implements the mid-term evaluation

• ensures that information and publicity rules are adhered to

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EC Delegation


Member State - Monitoring Committee

• agrees on Programming complement

• lays down project selection criteria

• monitors programme implementation:

- proposes programme changes to Management Authority

- agrees on proposals to change Programming complement

• approves mid-term evaluation

• agrees Annual report

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EC Delegation

Principle of Additionality

• ”The Funds may not replace public or other equivalent structural expenditure by the Member State”

• Three verifications: ex-ante, mid-term, ex-post

• measured against structural expenditures in all Objective 1 regions (for Objective 1)...

• ...or expenditures on active labour market policies outside Objective 1 regions (for Objectives 2 and 3)

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EC Delegation

Ceilings on co-financing rates

• calculated at measure level

• general conditions unchanged

• new ceilings where substantial revenue generated from infrastructure:

- Objective 1: 40% + 10% for Cohesion Fund states

- Objective 2: 25%

- can be 10% higher if not direct grants

• and where investment in firms:

- Objective 1: 35%

- Objective 2: 15%

- can be 10% higher for SMEs if not direct grants

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EC Delegation

Monitoring arrangements:A more transparent implementation

• Key annual meetings encounter:

- Commission and Management Authority for management questions

- Commission and control authorities for control questions

• Monitoring of targets for quantified indicators

• Mid-term review of implementation

• Improved information and publicity system

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EC Delegation

Evaluation: a tool for better programming

• ex-ante evaluation submitted by Member State with plans; new emphasis on

- employment situation

- environmental impact

- equality between men and women

• mid-term evaluation implemented by Managing authority using an independent expert: consequences for reprogramming

• ex-post evaluation implemented by European Commission by 2009

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EC Delegation

Financial ManagementCombining simplification and efficiency

• Automatic annual commitments

• Automatic de-commitment of unused resources

• Payment on account of 7% on the adoption of the programme

• New system of reimbursements against expenditure incurred

• Final payment of 5% at closure of programme

• Flat-rate indexation of 2% built into budget with review for 2004-2006

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EC Delegation

Financial ControlA clearer division of responsibilities

• Member States are responsible for:

- efficient systems for financial control

- prevention of irregularities

- correction of irregularities

- ensuring compliance with Community law

• Commission is responsible for:

- checks on efficiency of financial control systems

- consequences: possible suspension or cancellation of payments

- organisation of annual meetings

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EC Delegation

The performance reserveA new tool to encourage improved

performance• 4% of national resources allocated before

31.3.2004• Assessment of programme performance

based on:- realisation of aims decided ex-ante- the quality of the programme

management- the absorption of EU resources and their

leverage effect- choice of indicators by Member State,

based on proposals by Commission• Member State proposes successful

programmes • Allocation of Funds by the Commission

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EC Delegation

Closing ongoing programmes

• Programmes before 1994

- requests for payments until 31.3.2001

-automatic decommitments until 30.9.2001

• Programmes from period 1994-1999:

- requests for payments until 31.3.2003

-automatic decommitments until 30.9.2003

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Workshops for

EC Delegation

Commission implementing decisions

• Eligibility of expenditure (article 30)

• Use of the EURO (article 33)

• Financial control (article 38)

• Financial corrections (article 39)

• Information and Publicity (article 46)

• ….others if necessary

Documents

Information Overview SF: Regulatory Context Workshops for EC Delegation Patrick Colgan,Ján Krištín Structural instruments - Regulatory Context in Brief