implementing cohesion policy, peter heil and tibor polgar presentation, podgorica 23-24 june 2015
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IMPLEMENTING COHESION
POLICY
A SIGMA Workshop on Cohesion Policy
Podgorica, 23-24th June 2015.
Dr. Peter Heil, Tibor Polgár
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9:45 – 11:15 Legislative Framework Key areas of national legislation affected by Cohesion Policy. Main elements of a successful preparation strategy
11:30 – 12:30 Programming I. - The strategic level
Policy – Strategy – Programme – general types of programming documents. The programming process. The content of the Common Strategic Framework, Partnership Agreements, Operational and Co-operation Programmes.
13:30 – 14:30 Programming II – from the PA to projects, and back
Main types of measures – major projects; competitive selection; financial instruments. Territorial instruments (ITI, CLLD, SUD, etc.). Programmes in regions with permanent natural handicaps. Connections to rural development and fisheries policy
14:30 – 16:00 Institutional and human capacity Key institutions and bodies required to operate cohesion policy. Options practiced by member states. The recruitment, training, and retention of staff. Central and Local level, the cross-border and inter-regional context.
DAY 1
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9.15-9.30 Recap of Day 1 9:30 – 10:45 What is money being spent on? – Examples from Member States
Cohesion policy investment in practice. The role of EU funds for national development. Thematic objectives, investment priorities, and the content of programmes. Sectoral vs. territorial approaches.
11:15 – 12.30 Efficiency and effectiveness
Focus on results. Monitoring and evaluation. Regularity of spending and administrative burden. How to ensure transparency? How to minimise bureaucracy? Irregularities, controls and audits. IT support for management and implementation.
Péter Heil 12.30 - Discussion on topics of the greatest interest
DAY 2
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LEGISLATIVE
FRAMEWORK
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Pillars of Chapter 22
• Legal Framework
• Institutional Framework
• Administrative Capacity
• Programming
• Monitoring and Evaluation
• Financial Management and Control
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Cohesion Policy Legal Framework
Key EP & Council Regulations: • 1303/2014 – „Common Provisions”
• 1301/2014 – EU Regional Development Fund
• 1304/2014 – EU Social Fund
• 1305/2014 – EAFRD (Rural Development)
• 508/2014 – EMFF (Maritime, Fisheries)
• 1299/2014 – European Territorial Co-operation
Key Commission Regulations • 288/2014 – Programme Models
• 184 and 215 / 2014 – methodologies regarding milestones, targets, performance framework (…)
• 1011/2015 – Detailed rules for implemting Reg. 1303
Implementing the C.P. regulations is just half of the task
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Key areas of national legislation
Socio-economic planning
Budget and co-financing
Horizontal principles
„Technical” legislation on development projects
(State Aid)
(Public Procurement)
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Budget and co-financing
Co-financing requirements
• Minimum national financing as per type of region – Art. 120 – general rules: 50 to 80%
– Art. 120 – +10 % for PAX by FI (100% for SME initiative)
– Art. 24 – for MS with temporary difficulties + 10%
– Art. 121 – modulation (EU 2020; Environment; mobilisation of private capital;
regions with permanent handicaps
• Co-financing ability of final beneficiaries
– Flexible financing at measure level
– Practice of addiontal „co-financing funds”
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Budget and co-financing
Additionality requirements
• Art. 95 and Annex X
• Support from the Funds for the Investment for growth and
jobs goal shall not replace public or equivalent structural
expenditure by a Member State
• take into account the general macroeconomic conditions
and specific or exceptional circumstances, such as
privatisations, an exceptional level of public or equivalent
structural expenditure … and the evolution of other public
investment indicators
• If it is established by the Commission … that a Member
State has not maintained the reference level … the
Commission may, in relation to the degree of non-
compliance, carry out a financial correction
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Budget and co-financing
Technically:
• Multi-annual budget planning
• „programme budgeting”
IPA 2 requirements largely cover the needs for
cohesion policy
• Establish sector budgets
• Design investment programmes with reference to all funds
available
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Horizontal principles
(Ref.: Art. 5,7,8 and Common Strategic Framework)
TYPES
• Partnership
• Multi-level governance
• Sustainable development,
• Equality between men and women and non-discrimination
• Accessibility,
• Addressing demographic change,
• Climate change mitigation (esp. TO4-5).
How to take them into account
• Minimum requirements (avoid negative impact; favour most beneficial
options, etc.)
• Specific actions (incl. TA; ring-fencing)
• Prioritising
• Mainstreaming
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Technical Legislation
Anything needed to design, authorise and implement
development projects, especially construction:
• Areas – Technical designs and permits
– Environmental permitting and public consultations
– Expropriation of land
– Archeological excavations
– Budget
– Taxation and Customs
• Aspects – Decision-making and co-operation of licensing authorities
– Clear decision-making rules
– Capacity
– Linking up state databases
– Danger of corruption at all levels
– Court proceedings related to the above
Never ending story of simplifcation
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PROGRAMMING I. STRATEGIC LEVEL
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Socio-economic planning
Types
• Spatial vs. socio-economic development
• Cross-sectoral vs. sectoral planning
• National vs. territorial approaches
Levels
• Policy – vision, values, principles
• Plans / Strategies – objectives, funds, responsibilities
• Programmes – measures, timetables
• Measures – calls, major projects, financial instruments,
territorial
• Operations – („project” / action level)
Legislation should regulate hierarchy, content, linkages;
Preparation, implementation, monitoring, evaluation;
Responsibilities, timetables
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Programming Documents, 2007
Community Strategic Guidelines
• Lisbon
National Strategic Reference Frameworks
• Situation Analysis
• SWOT
• Strategy and Objectives
• Operational Programmes
• Budget and Additionality
• Implementation arrangements
• Links to other programme documents (CSG, NRP, NRDP)
• Ex-ante evaluation
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Programming Documents, 2007
Operational programmes
• Analysis
• Strategy
• Priority Axes
– Objectives
– Indicative description of main measures
• Budget
• Demarcation vs. other Ops
• Implementation framework
• (…)
Action planning
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Programming Framework 2014
Community Strategic Framework (1303, Annex I)
Partnership Agreement
Operational and Co-operation Programmes
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Common Strategic Framework
Contribution of ESI Funds to EU 2020
Integrated use of funds
Co-ordination and Synergies with other EU
instruments
• CAP, Fisheries policy, Horizon 2020, Life, Erasmus…
• IPA, ENI, including the potential to use EGTCs
Horizontal Principles
Addressing Territorial Challenges
Co-operation activities (ETC)
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Partnership Agreement
I. Alignment with EU 2020
• Analysis of disparities, needs, growth potentials
• Summary of ex-ante evaluations
• Selection of Thematic Objectives, reasoning
• Indicative allocation of support by TO
• Application of horizontal principles
• List of programmes (incl. financial table)
• Transfers of funds btw. regions / goals
• Performance reserve
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Partnership Agreement
II. Effective Implementation of the Funds
• Co-ordination between funds and with other Union policies and
instruments
• Additionality
• Summary of fulfilment of ex-ante conditionalities
• Ensuring consistency with the performance framework
• Reinforcing the administrative capacity of the authorities
• Reducing the administrative burden for beneficiaries
III. Integrated Approach to Territorial Development
• Arrangements: CLLD, ITI, SUD, Co-operation, poor regions and
discrimination, demographic challenges
IV. Efficient Implementaiton of the ESI Funds
• Systems for electronic data exchange
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Programmes
I. Contribution to EU 2020 and Cohesion • Strategy
• Justification for the choice of thematic objectives and investment priorities
• Justification for the allocation (EU 2020, acquis, private sources, CEC position)
II. Priority Axes • Description
• Use of financial instruments and SME initiative
• Justification for the use of combination axes (several regions, Funds, or TO)
• Investment priorities – corresponding specific objectives and results
• Indicators (programme specific and common – result level)
• Types and examples of actions and their contribution to objectives, results
• Guiding principles for selecting operations
• Planned use of financial instruments
• Planned use of major projects
• Indicators – by IP and type of region – output level
• Social innovation
• Transnational co-operation
• Performance Framework – milestones and targets 2018, 2023; steps
• Use of TA
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Programmes
III. Financing Plan
• Financial appropriations by fund
• Financial appropriations by fund and national co-financing
• YEI, Climate Change
IV. Integrated Approach to Territorial Development
• Community-let Local Development (CLLD)
• Sustainable urban Development (SUD)
• Integrated Territorial Development
• Interregional and Transnational Actions
V. Geographical Areas affected by Poverty
VI. Geographical Areas with Permanent Handicaps
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Programmes
VII. Authorities and Partners
VIII. Co-ordination of Funds
IX. Ex-ante conditionalities
X. Reduction of the Administrative Burden
XI. Horizontal Principles
XII. Separate elements
• Major Projects
• OP-level performance framework
• Role of partners
Annexes
• Summary of ex-ante evaluation
• Documentation on fulfiment of ex-ante conditionalities
• Opinion of national equality bodies
• Citizens’ Summary
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Ex-ante conditionalities
General – „arrangements” and „capacity”
• Anti-discrimination
• Gender equality
• Disability
• Public Procurement
• State Aid
• Environmental legislation / EIA / SEA
• Statistical system
Thematic
• Strategies – e.g. smart specialisation, inv. plans
• Budgetary arrangements and specific investment actions
• Risk assessments (e.g. disaster management)
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Conclusions on Programming
IPA Sector Approach points the way
National Development Planning to progress
• Define methodologies
• Time horizons to align with EU
• Need for cross-sectoral strategy - algin with EU 2020
• Harmonise sectoral (evtl. Territorial) strategies and plans
• Harmonisation of existing strategies
• Partnership
• Approximation to EU 2020 and EU policies
When to address planning?
• National development – when possible
• IPA mid-term evaluation 2017-2018
• Accession agenda: start 2 years before entry
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PROGRAMMING II. FROM THE PA TO PROJECTS, AND BACK
Agenda
• Main types of measures – major projects,
financial instruments, competitive selection
• Territorial instruments (ITI, CLLD, SUD),
programmes in regions with permanent
natural handicaps
• Connections to rural development and
fisheries policy
MAJOR PROJECTS
Main types of measures – major
projects Major Projects are usually large-scale infrastructure projects in
• transport,
• environment and
• other sectors (culture, education, R&D, energy or ICT).
A major project can be an infrastructure project or even productive investment (2014-20)
more than € 50 ERDF and/or Cohesion Fund, they are subject to an assessment and approved by a specific decision by the European Commission.
A single major project can be co-financed by more than one operational programme!
Major projects in the OPs
A major project comprises a series of works, procurement, or services to accomplish
• an indivisible task
• of a precise economic or technical nature which
• has clearly identified goals;
(MPs cannot be programmes)
Financial instruments are not considered to be major projects
Main types of measures – major
projects
Major projects 2007-13
Source: EC,
Witold Willak,
2014
Information necessary for the approval
of major projects 2014-2020
• the body to be responsible for implementation of the major project, and its capacity;
• a description of investment and its location;
• total cost and total eligible cost, taking account of the requirements set out in Article 61;
• feasibility studies carried out, including the options analysis, and the results;
• a cost-benefit analysis, including an economic and a financial analysis, and a risk
assessment;
• an analysis of the environmental impact, taking into account climate change adaptation
and mitigation needs, and disaster resilience;
• the consistency with the relevant priority axes of the operational programme or
operational programmes concerned, and its expected contribution to achieving the
specific objectives of those priority axes and the expected contribution to socio-
economic development;
• the financing plan showing the total planned financial resources and the planned
support from the Funds, the EIB, and all other sources of financing, together with
physical and financial indicators for monitoring progress, taking account of the
identified risks;
• the timetable for implementing the major project and, where the implementation period
is expected to be longer than the programming period, the phases for which support
from the Funds is requested during the 2014 to 2020 programming period.
Information necessary for the approval
of major projects 2014-2020
Cost-Benefit Analysis for major projects
• Required for all major projects;
• An objective method to assess the project from the point of view of society and the project promoter;
Two basic questions:
• is the project worth financing (economic analysis)?
• does the project need EU financing (financial analysis)?
It should be done ex ante, not ex post;
Challenging tool for the public administration
Major projects - during implementation
• The follow-up of implementation of major projects will be made on the basis of the description of the physical object included in the Commission decision.
• Monitoring Committees review it periodically
• Annual reports of Ops have to present progress made
Key challenges for major projects
• Timely implementation, management of changes
• Procurement procedures;
• Environmental Impact Assessment needed;
• State Aid aspects (ceilings for public contribution);
• Consistency with the programme(s)
• Use of the Euro for relevant countries
FINANCIAL INSTRUMENTS
• Specific provisions on financial instruments are set out in Regulation (EU) No 1303/2013
• + Fund specific rules apply
• Managing authorities shall consider the use of financial instruments as an option wherever suitable, but not for reasons of absorption (Financial instruments cannot be considered as a way of frontloading expenditure or for avoidance of automatic decommitment.)
• They are a delivery mode and not a stand-alone objective
• FIS can be used for EAFRD rural development and EMFF maritime and fisheries programmes, too
Financial instruments - basics
Benefits linked with financial
instruments
• Leverage resources and increased impact of ESIF programmes;
• Efficiency and effectiveness gains due to revolving nature of funds, which stay in the programme area for future use for similar objectives;
• Better quality of projects as investment must be repaid;
• Access to a wider spectrum of financial tools for policy delivery & private sector involvement and expertise;
• Move away from “grant dependency” culture; and
• Attract private sector support (and financing) to public policy objectives
Launching FIs
A detailed ex-ante assessment is needed including:
• an analysis of market failures
• an assessment of the value added of the financial instruments considered
• an estimate of additional public and private resources to be potentially raised
• an assessment of lessons learnt from similar instruments
• the proposed investment strategy
• a specification of the expected results and how the financial instrument concerned is expected to contribute to the achievement of the specific objectives set out under the relevant priority or measure including indicators for that contribution
The assessment can be funded by the programme's technical assistance and
must be submitted to the programme monitoring committee for information and its summary findings and conclusions must be published
Four basic options for FIs:
Examination of these four basic options is a compulsory part of the ex-ante assessment:
• Implementation under shared management through an entrusted entity (e.g. EIB or other IFI)
• Implementation under shared management through investment in capital of existing or newly created legal entity
• Implementation under shared management of loans or guarantees directly (or through an intermediate body) - this option can be used for cases where there are a limited number of interventions not enough to justify the establishment of a stand-alone fund. National law has to allow the MA/IB to issue loans and guarantees.
• Contribution of ESIF programmes' allocation to EU level
Financial management
FIs will take the form of loans, guarantees and equity/venture capital. Standalone interest rate subsidies and guarantee fee subsidies are not FIs.
ESIF share of capital resources paid back from investments and of gains/earnings/yields generated by investments during the eligibility period must be used for:
• Further investments in the same or other financial instruments, in line with the OP;
• Where applicable, preferential remuneration of investors operating under the market economy investor principle (MEIP) and providing co-investment at the level of financial instrument or final recipient.
• Where applicable, management costs/fees.
State aid rules should be considered at different levels:
• the fund manager (who is remunerated),
• the private investor (who is co- investing and may receive aid)
• and the final recipient.
Specific rules for reporting
• Annual and final implementation reports: MAs need to provide specific reporting on operations comprising financial instruments as an annex to the annual implementation report.
• Monitoring Committee: Has to receive the ex-ante assessment 'for information‚ the strategy document for the financial instrument implemented directly by managing authority or intermediate body, should be informed of the methodology for management costs and fees, as well as the specific annex to the Annual Report on financial instruments
COMPETITIVE SELECTION
Competitive selection processes:
definition
No specific EU-level regulation is regulating these processes, project selection under 50 meur is fully national responsibility
1083/2006: ‚operation’: a project or group of projects
• selected by the managing authority of the operational programme concerned
• or under its responsibility according to
• criteria laid down by the monitoring committee and implemented by one or more beneficiaries allowing achievement of the goals of the priority axis to which it relates
Pre-accession grant schemes are excellent for learning-by-doing
When to use it?
• If there is no explicit sectoral strategy and/or action plan selecting specific operations (e.g. environment, education, employment)
• If there is high added value in competition of project ideas (SMEs, NGOs, innovative projects)
• If the expected number of project ideas is exceeding the available budget by far
Competitive selection processes
How to use competitive selection
processes?
Application forms, project selection criteria, the selection
process and contract templates have to be designed
considering the following important aspects:
• Contribution to programme outputs, results and objectives
• Transparency - Simplicity
• Trust - Accountability
• Continuity
• Absorption - Cost effectiveness
Audits carried out by the Audit Authority, the EC and the
ECA might review the selection processes according to
similar criteria
Competitive selection methods
• Priority projects
• One step application process
• Two step application process
• Continuous application scheme with regular decisions
• General (for an OP/priority axis) or targeted for specific interventions
Advantages - Disadvantages
Who can be involved in preparing
project selection decisions of the MA?
• MA staff
• IB staff
• Independent assessors
• MC members or subcommittees
MA retains full responsibility – e.g. a national government decree might be not sufficient for the EC
Audit Authority and EC, ECA audits have to review the selection process
Conclusions
• Different delivery mechanisms have to be
chosen consciously in order to achieve
development objectives at PA/OP level
• They have to complement each other –
coordination in the phases of planning,
implementation and monitoring/evalauation is
vital for achieving synergies – use the MC!
• Institutional and capacity issues have to be
considered in all cases
INTEGRATED TERRITORIAL
INSTRUMENTS
Integrated approaches - Integrated
Territorial Investment (ITI)
• Tailored to place-specific features and outcomes, ITI is based on
Article 36 of the CPR
• Allows EU Member States to combine investments from several
priority axes of one or more OPs for the purposes of multi-
dimensional and cross-sectoral intervention.
• ITIs can be mono-fund, they can also combine ERDF, ESF and the
Cohesion Fund, and be complemented by financial support from
the EAFRD and EMFF where complementarities exist.
• Relevant OP(s) shall describe the approach to the use of the ITI
instrument and the indicative financial allocation from each priority
axis in accordance with the Fund-specific rules.
• An ITI can include the use of non-repayable grants, repayable
assistance as well as financial instruments.
• It is possible that an ITI includes elements implemented through
communityled local development.
Key elements of an ITI
1. a designated territory (where?)
2. an integrated territorial development
strategy (why?)
3. a package of actions to be implemented;
(what? how?) and
4. governance arrangements to manage the
ITI (with whom?)
Possible types of ITI
Soto et al., 2012
Potential benefits of ITIs
• They have the potential to lead to a better aggregate outcome for the same amount of public investment
• The possible delegation of management tasks and responsibilities empowers sub-regional actors (local/urban stakeholders) by ensuring their involvement and ownership of programme preparation and implementation.
• As an ITI will have its funding sources secured at its inception, there will be greater certainty regarding the funding for integrated actions.
• ITI is an instrument designed for a place-based approach to development that can assist in unlocking the under-utilised potential contained at local and regional levels.
Programming ITIs
The PA should outline the
• main territorial challenges and
• the main elements of the territorial strategy, including the means to achieve an integrated approach at regional and sub-regional level, identifying, inter alia, the implementation arrangements to be used, including the arrangements for the use of ITIs
The OPs for the ESF, ERDF and the Cohesion Fund should outline:
• the approach to the use of the ITIs, whether ITIs will constitute a significant delivery mechanism for the particular operational programme
• types of areas where ITIs will be used, or concrete areas
• the arrangements for the management and implementation of the ITI including the coordination between the managing authorities
• indicative financial allocations per each priority axis for all ITIs and individual allocations for urban ITIs (SUDs)
Management of the ITI – main features
• There is no specific procedure for the assessment or approval of ITIs by the Commission.
• The MSor the MA may designate one or more intermediate bodies, including local authorities, regional development bodies or non-governmental organisations in accordance with the Fund-specific rules. Delegation of management tasks linked to an ITI is generally not mandatory.
• Monitoring and reporting arrangements set up under an ITI must provide for the identification of operations and indicators by priority axis or Union priority contributing to an ITI.
• Article 11 of the ETC Regulation specifies the management arrangements for ITIs under the European Territorial Cooperation – common body or EGTC can be responsible
• Budget shifts among priorities are possible within the OP financial framework allocated for ITIs
Source: EC Factsheet on ITIs
Integrated approaches 2 – Community
Lead Local Development (CLLD)
Articles 32-35 (4) of the Common Provisions Regulation (EU) No 1303/2013, for CLLD are based on the LEADER approach and concern four of the Funds covered by the Common Strategic Framework
• focuses on specific sub-regional areas;
• is community-led, by local action groups composed of representatives of local public and private socio-economic interests;
• is carried out through integrated and multi-sectoral area-based local development strategies, designed taking into consideration local needs and potential; and
• includes innovative features in the local context, networking and, where appropriate, co-operation (ETC, too)
• Can be used under each European Fund, compulsory 5% of each Member State’s EAFRD allocation
• A single methodology for CLLD provided by the EC
• Incentive: in OPs where an entire priority axis is delivered through CLLD, the maximum co-financing rate from the ERDF and/or the ESF at the level of a priority axis will be increased by 10 %
Area and population coverage (where?)
• Should be coherent, targeted and offer sufficient critical mass for its effective implementation.
• It is up to the LAGs to define their areas and population, but they must be consistent with criteria that are laid down in Article 33(6) of the Common Provisions Regulation.
• The population coverage should be minimum 10000 and maximum of 150000
Key elements of a CLLD
Key elements of a CLLD
Local action group (with/by whom?)
LAGs should be made up of representatives of local public and private socio-economic interests, such as
– entrepreneurs and their associations,
– local authorities,
– neighbourhood or rural associations,
– groups of citizens (such as minorities, senior citizens, women/ men, youth, entrepreneurs, etc.),
– community and voluntary organisations, etc.
At least 50% of the votes in selection decisions should be cast by partners which are not public authorities and no single interest group should have more than 49% of the votes.
Local development strategy (why? what? how?):
• Coherent with the relevant programmes of the ESI Funds through which they are supported.
• Define the area and population covered by the strategy; include an analysis of the development needs and potential of the area, including a Strengths, Weaknesses, Opportunities, Threats (SWOT) analysis; and describe the objectives, as well as the integrated and innovative features of the strategy, including measurable targets for outputs or results.
• Include an action plan demonstrating how objectives are translated into concrete projects, management and monitoring arrangements, and a financial plan.
Key elements of a CLLD
Programming CLLDs
MSs have to specify in their Partnership Agreement
• how they intend to support CLLD and
• indicate in which types of areas CLLD may be used.
CLLD is optional for the ERDF, the ESF, and the EMFF, it is compulsory
for the EAFRD.
CLLD is programmed under a single thematic priority (TO9 for ERDF
and ESF).
CLLD strategies created by LAGs may cover operations for one or
more Funds
MAs have to define criteria for the selection of local development
strategies and ensure that calls and procedures are coordinated
between the Funds.
In areas in which the Member States indicate that CLLD may be used,
Managing Authorities need to ensure capacity-building activities to
ensure that local communities, especially those in vulnerable areas with
limited capacity, are enabled to fully participate.
For a better understanding…
Differences between ITI and CLLD
• CLLD is always bottom up. ITI is more likely to be top down.
• CLLD can be part of an ITI but ITI could not be part of CLLD
• ITI is always integrated. CLLD doesn’t have to be
• ITI is public sector led, CLLD is multi sectoral and there is an inbuilt balance between public, private and civil society actors none of which have more than 49% of the votes
• ITI brings together funding from several priorities of a programme or of several programmes and/or funds. CLLD is programmed under a single priority (TO9 for ERDF and ESF).
• ITIs report back their outputs and results to the parent priorities in the programmes from which they draw funds whereas CLLD can report all outputs and results against a single thematic objective 9 while having the scope of all Thematic Objectives.
• Funding for a single ITI would normally be much larger than funding for a single CLLD local action group.
• You can have more CLLDs in one city but you would normally only have one ITI – although the ITI could take several forms
For a better understanding…
Similar features of ITI and CLLD
• Both are territorial tools with a focus on areas (e.g. in cities, in rural urban areas, in rural areas, in maritime and fisheries areas)
• Both require a strategy phase to prepare an action plan
• Both bring together packages of projects
• Both are driven by partnerships (but CLLD can be only bottom-up)
• Both are new in programme period 2014-20
• Both can be single fund or multi fund
• Neither are well understood (except CLLD in rural areas after 25 years of LEADER)
• Both are perceived as complicated, and even complex
• Both are being avoided by most Managing Authorities – low take-up is predicted for both in the new programme period…
SUSTAINABLE URBAN
DEVELOPMENT (SUD)
A minimum of 5% of the ERDF resources allocated to each Member State shall be invested in the implementation of integrated strategies for sustainable urban development
Projects are selected by urban authorities in line with pre-defined integrated urban development strategies, developed by the them.
The strategies are to be implemented:
• as Integrated Territorial Investment (ITI) or
• through a specific operational programme, or
• through a specific priority axis.
Regions with natural or demographic
handicaps Covered by ERDF Regulation – Article 10 „particular attention shall be paid to addressing the specific difficulties of those areas”
Types of areas (Art. 174 TFEU) • Northernmost regions with very low population density(Art. 174 TFEU)
• Mountains (relatively high share of employment in agriculture sector, relatively lower share in service sector; natural resources are major assets, availability of renewable energy sources, great diversity in economic performance)
• Islands (higher share of employment in service sector due to importance of tourism industry, small size of local markets, problems to reach larger mainland markets, access to basic services more difficult)
• Sparsely populated regions (support for extra costs for diseconomies of scale and for lack of critical mass)
These regions
do not present the same socioeconomic profile and
do not face the same development constraints…
Specific solutions accompanied with mutual learning from similar areas are needed!
Tools provided by the CPR
Modulation of the co-financing rate Article 121 of CPR:
The co-financing rate from the Funds to a priority axis may be modulated in the case of :
• island Member States eligible under the Cohesion Fund, and other islands except those on which the capital of a Member State is situated or which have a fixed link to the mainland;
• mountainous areas as defined by the national legislation of the Member State;
• sparsely (less than 50 inhabitants per square kilometre) and very sparsely (less than 8 inhabitants per square kilometre) populated areas;
• the inclusion of the outermost regions as referred to in Article 349 TFEU.
Art. 10 ERDF-regulation: Operational programmes financed by ERDF shall pay particular attention to addressing specific difficulties of areas with severe and permanent and natural or demographic handicaps
Use of inegrated appoaches is recommended – ITI and/or CLLD
Handicapped regions and programming
Member States have to take account of geographic or demographic features and take steps to address the specific territorial challenges of each region to unlock their specific development potential. Particular attention shall be paid to regions which suffer from severe and permanent natural or demographic handicaps
Pas and Ops have to describe the approach to handicapped regions:
Partnership Agreements :
• an analysis of disparities, development needs, and growth potentials with reference to the thematic objectives and the territorial challenges, and
• the specific development needs in regions which suffer from severe and permanent natural or demographic handicaps such as the northernmost regions with very low population density and island, cross- border and mountain regions, which require integrated intervention from the ESI Funds.
Operational Programmes have to contain information on:
• how the operational programme addresses demographic challenges of regions and the specific development needs of certain regions with severe and permanent natural or demographic handicaps in an integrated way.
Conclusions
Territorial coordination brings added value - Mainstream programmes, Rural development (incl. Fisheries), and ETC programmes are financing initiatives in the the same regions
Regions with natural or demographic handicaps:
• Specific solutions accompanied with mutual learning from similar areas are needed!
• Use of inegrated approaches is recommended – CLLD and/or ITI
Integrated delivery mechanisms:
• Community based processes are successful in local socio-economic development
• Choosing integrated approaches when – added value can be achieved
– necessary capacities can be put in place in time
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INSTITUTIONAL
FRAMEWORK
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Institutional Framework – key areas
Institutions needed
Options practiced in member states
Key functions and processes
Performance management
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COMPULSORY: • Managing authority
• Certifying authority
• Audit Authority
• (Monitoring Committee)
OPTIONS • Co-ordination body MAY BE appointed by the MS
• MA/CA/AA may assume tasks for several (all) Ops
• MA may be CA as well
• one or more intermediate bodies MAY BE appointed to – carry out certain tasks of the MA or the CA under the responsibility of that authority
– manage whole or part of an OP (Global Grant)
72
Designation of Authorities
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Functions
Managing Authority
• Sound financial management of the OP; inform
beneficiaries, select operations, verify implementation and
expenditure, support Monitoring Committee, put in place
irregularity and anti-fraud measures; regularly report
Certifying Authority
• Draw up and submit payment applications; draw up
accounts; ensure completeness, veracity and accuracy;
ensure that adequate information is available, keep
account of recoverable amounts.
Audit Authority
• Audits on the functioning and management of control
systems; sample of operations; ensure internationally
accepted audit standards; draw up audit strategy – opinion
– control report
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Procedure for Designation
Define system
• accession negotiations
• Programs
• Government Decree / decision
Opinion by independent audit body
• logically: Audit Authority
Notify EC prior to first interim payment application;
• Commission may make observations which will not
interrupt treatment of application
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Options by Member States
In terms of MA vs. IB sharing tasks • Centralised:
– No intermediate bodies at all
– … intermediate bodies with limited tasks
– … tasks executed by intermediate bodies 100% controlled by MA
• Decentralised – MA concentrating on programme level functions, strategic management
– IB implementing measures and project
Territorially: national vs. sub-national levels • Sectoral vs. territorial operational programmes
• Territorial programmes managed by decentralised bodies (even
MA)
• Decentralisation at measure / operational level – Global grants
– Territorial instruments such as CLLD and Sustainable urban development
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Institutional and Human Capacity
Design…
• Analyse legislation
• Map existing capacities
• Assign responsibilities
• Modelling of key processes and expected workload
Designation
• Some very high level structural issues (e.g. planning and
partnership) in legal instruments
• Tasks of government bodies in government decisions
– Appointment of IBs may require a decree for procurement reasons
Preparation
• Basic training – general knowledge for all institutions
• Specific training and capacity building
• Design procedures – on-the-job training and mentoring
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Institutional and Human Capacity
HR management • Performance is key – and it should make a difference
• Clear performance targets to bodies and officials
• Regular performance management
• Performance-based remuneration systems
• Personalised career development opportunities – Education and training opportunities
– Financial as well as material benefits
– Accountability and Responsibility for individuals
• Train managers to be ready to design and operate performance-
based systems
• Team building
Use Technical Assistance
Examine involvement of private sector agencies
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Key functions and processes (rudimentary „audit trail”)
Programming
Financial Management
Monitoring
Financial Control and Audit
Management of Irregularities
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Programming processes
Drafting of OP
• May or may not be the task of the Managing Authority)
• OP may also be modified
Selection of operations
• Project pipeline
• Definition of selection criteria
• Drafting calls for projects
• Assessing and selecting operations (projects)
Contracts with beneficiaries (or: grant decision)
Implementation
• Regular monitoring of implementation at project / measure
/ programme level
– Linked to monitoring
– Linked to financial management
• N+3 as well as indicators
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Financial Management Processes
Set-up and develop financial control procedures
Ensure adequacy of beneficiaries’ capacity
Check contracts financial provisions
Verify expenditure
• Administrative verification
• On-the-spot checks
Execute payments
Financial reporting (and planning)
Book-keeping and accounting
Closure of accounts (at end of programme)
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Monitoring processes
Set-up and build up Monitoring Committee
Support the work of the MC
• Provide information
• Organise meetings
• Keep track of and implement MC decisions
• Involve partners in strategic monitoring and
management
Ensure availability of information
• Includes: IT systems
Prepare progress reports
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Financial Control and Audit
Identify and assess risks
Set-up „red flag” mechanisms and measures
Ensure internal and external control
Organise processes to treat irregularities
Training and awareness raising
Analyse and follow-up audit findings
Ensure regular review of processes and tools
Co-operation with specialised agencies
• National authorities: tax authority, police, prosecution…
• Notification of OLAF where needed
Recovery of irregular payments
Irregularity reporting
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What happens if…?
Regular national and EC audits to be expected at all levels
„Proportionality” principle
• Size of programmes
• Co-financing rate
• (does not really help „cohesion” countries
In case irregularities are observed by the EC
• Interruption of payment process
• Suspension of payments
• Fianncial Correction
• Recovery
• Reinvestment, if the time allows
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SUBNATIONAL LEVEL
Institutional Capacities at
MA: decentralization advisable only in case of federal constitutional structures (fully legal
and financial responsibility)
Decentralizing IB tasks makes sense if :
• There is a high number of applications/projects to finance
• Beneficiaries are local municipalities/NGOs/intsitiutions that need personalized
assistance on the spot
• The content of the OP needs substantial project development efforts
IB functions/tasks that can be decentralized
• Front office: Publicity, measures info-days, helpdesk
• Project development (not compulsory IB task)
• Managing the application process
• Contract management: signature,conditionalities, changes, closure
• First level control: verification of costs, publuc procurememt, on-the-spot checks,
managing audits, investigating irregularity cases, managing vindications of unuly paid
grants
• Programme level reporting towards MC
Programme management tasks and
capacities at regional level
IB tasks not to be decentralized:
• Managing programme accounts
• Handling irregularities
• Programme level reporting towards EC
Deconcentration or decentralization?
Potential benefits:
• Learning process can be more effective (better future calls/programmes)
• Project development (is essential to deliver programme results and impacts) can be more effective
• Motivation/keeping of staff
• Troubleshooting / change management can be more effective leading to better absorption
But: Take care of conflict of ineterests! Organisational culture is vital!
Programme management tasks and
capacities at subnational level
What kind of people we need?
• Managers able to coomunicate with leaders (mayors, CEOs, polititians)
• Operative team managers
• Project managers / Financial managers
• Technical expert for on-the-spot checks
• Regional development experts
• Communication managers
How manny?
• Make and review capacity plans at least every 6 months
• Possible models: „specialists” vs. „generalists” (No uniform answer)
• National legal backround and internal procedures influennce necessary staff levels substantially: 4 eyes principle, handling irregularities, contract changes, control of public procurement
• Keep staff numbers low, teams flexible - matrix structures prevail, one person can cover more fields of the above
• Outsourcing is a good tool to involve specific expertise or cope with peak periods
Programme management tasks and
capacities at subnational level
Final beneficiaries and target groups of grants:
– Local municipalities and their associations
– Local branches of central bodies
– Global grant managers
– LEADER/CLLD Local Action Groups
– EGTCS
– NGOs
– SMEs
– Private persons
Training, training, training…..
Capacities at local level
Cross-border and transnational programmes
CBC: Memoranda of Understanding among National states setting up the structure for each period, transnational programmes are based on macro-regional strategy (E.g. Maritime Strategy for the Adriatic and Ionian Seas for ADRION or EUSDR for Danube programme). Main players:
• Task forces: MSs delegate experts to prepare the programme: strategy, institutional arrangements
• Joint Monitoring Committee – adoption of the programme, selection criteria, project selection
• Joint Managing Authority: focus on programme level tasks: chairs MC, monitoring, evaluation, reports, programme changes
• Joint Technical Secretariat: the main operative body, manages all tasks related to the application process, contracting, monitoring and reporting towards EC. Share of workload with MA can be different in tasks related to programme level - „MA thinks, JTS works”
• National first level control bodies: verify costs at partner level
• Lead partners: have to have good financial and human capacities
• Project partners
European Groupings of Territorial Cooperation - European legal instrument designed to facilitate and promote cross-border, transnational and interregional cooperation
EGTCs can act without requiring a prior international agreement to be signed and ratified by national parliaments
EGTC members can be:
Member States
Regional or local authorities
Associations
Any other public body
EGTC – what is it?
• Can act as a broad institutional framework for developing joint strategies and actions – Especially useful to establish close cooperation between two regions with a sensitive historical and cultural identity (e.g. EGTCs Galicia-Norte del Portugal, Arrabona, Ister Granum)
• Can take over the role of Managing Authority, JTS (e.g. EGTC Greater Region in InterregIVA)
• Can operate project development and implementation services for the area covered - no further financing partners needed at project level
EGTC – what is it for?
EGTCs in Europe
What is money being spent
on?
Cohesion policy investment in
practice
Montenegro and the EU’s Cohesion
Policy
Podgorica, 23-24th June 2015
Agenda
• The role of EU funds for national
development
• Thematic objectives, investment priorities
• Sectoral vs. territorial approaches
ROLE OF ESI FUNDS FOR
NATIONAL DEVELOPMENT
Cohesion policy
in practice
The EU: 27 Member States, 271 regions, 493 million citizens.
Disparities
Different institutional and legal structures
Aim of CP is to improve the competitive position
• of the Union as a whole, and
• of its weakest regions
Budget of CP
2007–13 €347 billion
2014-2020 €351.8 billion
Cohesion policy makes a real difference, investing up to 4 % of GDP in some MSs)
Impact: growth and jobs in the EU
in 2007-2012
• Increasing per capita GDP in the EU’s least developed regions –
GDP per capita in the so-called Convergence Regions increased from 60.5 % of the EU-27 average to 62.7 % between 2007 and 2010.
• It is estimated that cohesion policy generated an additional 600 000 jobs from 2007 to 2012, at least one third of them in small and medium sized enterprises (SMEs).
• 25 000 km of roads and 1 800 km of railways were constructed or modernized in 2007-2012 to help establish an efficient trans-European transport network (TEN-T).
• 200 000 SMEs received direct financial support, and cohesion policy helped 77 800 start-ups to get up and running.
• Over 60 000 research projects were supported in the period 2007-2012.
• 1.9 million more people now have broadband access.
Principles of Cohesion Policy in practice
Programming – Programme cycle management: timing, capacities are important
– Common challenges – local answers
– 2009: flexibility to change,
Concentration:
• Concentration of resources: the greater part of structural fund resources (70% for 2014-2020) are concentrated on the poorest regions and countries
• Concentration of efforts: Targeting Investments on Key Growth Priorities
– Research and Innovation
– ICT
– Enhancing competitiveness of SMEs
– Supporting the shift towards a low-carbon economy
• Concentration of spending : N+2(3) rule
Partnership
• Programmes are developed and managed through a collective process involving authorities at European, regional and local level, social partners and organisations from civil society. This approach help ensure that action is adapted to local and regional needs and priorities.
Additionality/co-financing
• Financing from the European structural funds may not replace national spending by a member country.
• The MS has to contribute financially to each operation – but not necessarily the project holders
National development from EU funding –
how to integrate it?
Integrated (IE, GB, FR) vs parallel
programme structures (SI,HU,AT)
Level of integration:
• Long-term development concepts and mid
term strategies (national, regional, local)
• Spatial plan (national, regional, local)
• Programmes (OP, regional programme,
local programme)
• Action plans
Impact and results in Hungary
2004-06:
20 000 projects,13 000 SMEs supported, and nearly 22 000 new jobs created.
47 Cohesion Fund projects:
25 environment (4 million inhabitants with improved solid waste collection services, 2 million with improved waste water treatment and 106 000 with improved drinking water supply),
9 transport (570 km of railway, 40 km of motorway, 450 km of public roads rehabilitated)
Impact and results in Hungary
2007-2013 €25.3 billion
€22.9 bn Objective 1, €2.03 bn Objective 2,
€386 million ETC (Obj3)
15 Operational programmes: 13 ERDF+CF, 2 ESF
7 regional, 8 sectoral Ops
ETC programmes with all neighbours, participation
in SEE, Central, InterregIVC
• More than €7.2 billion for transport infrastructure (e.g. 500 km of new and reconstructed railways)
• Over €2.16 billion to be invested in R&D and innovation
• €2.98 billion for education and training, including measures to help people adapt to the changing working environment
• €829 million to directly support SMEs
Impact and results in Hungary
6000 meur
• Economic crisis (from 2008 on)
• lack of real regional and sectoral strategies, focuses
• national regulatory environment (taxation, public procurement) – Two overall goals of CSF could not be attained -
economic growth and increased employment
– Territorial disparities did not decrease (2,8 between strongest and weakest regions, 3,7 urban-rural gap at NUTSIII level)
– All development funding have become co-funded by EC
– OP modifications were good tools
But: key infrastructure bottlenecks have been removed
Impact and results in Hungary
Conclusions
• CP principles are really useful for practical
management EU funds
• Quality and co-ordination of local, regional
and sectoral strategies behind OPs is vital
• Harmony between regulatory frameworks
and development programmes is crucial
• Quality of projects is important: motivate
and invest into project development
THEMATIC OBJECTIVES AND
IVESTMENT PRIORITIES
Thematic concentration
List of Thematic Objectives (Art 9. of CPR):
• 1. research, technological development and innovation;
• 2. access to, and use and quality of, ICT;
• 3. competitiveness of SMEs
• 4. shift towards a low-carbon economy in all sectors;
• 5. climate change adaptation, risk prevention and management;
• 6. environment and promoting resource efficiency;
• 7. sustainable transport, key network infrastructures;
• 8. sustainable and quality employment, labour mobility;
• 9. social inclusion, combating poverty and any discrimination;
• 10. education, training and vocational training for skills and lifelong learning;
• 11. capacity of public authorities and stakeholders, efficient public administration
Each thematic objective is broken down into 2-6 investment priorities in Fund specific regulations
• Investment from the ERDF supports all 11 objectives, but 1-4 are the main priorities for investment.
• Main priorities for the ESF are 8-11 (Art3, a-d in ESF Regulation), though the Fund also supports 1-4.
• The Cohesion Fund supports objectives 4-7 and 11.
Thematic concentration
Thematic concentration
• New „menue approach” • 11 Thematic objectives with Investment Priorities
• ERDF – concentration (50-60-80%) on… • innovation and research,
• the digital agenda,
• support for SMEs and
• the low-carbon economy (12-15-20%)
• ESF • Concentration on up to 5 inv. priorities (60-70-80%)
• 20% on social inclusion, vs. poverty, discrimination
• ETC • 80% concentrated on max. 4 Thematic Objectives
TO1 strengthening research, technological
development and innovation
• enhancing research and innovation (R&I) infrastructure and capacities to develop R&I excellence
• promoting business investment in R&I,
• developing links and synergies between enterprises, research and development centres and the higher education sector, in particular (product and service development, technology transfer, social innovation, eco-innovation, public service applications, demand stimulation, networking, clusters and open innovation through smart specialisation),
• supporting technological and applied research, pilot lines, early product validation actions, advanced manufacturing capabilities and first production, in particular in key enabling technologies and diffusion of general purpose technologies;
Examples TO1
Smaller and bigger innovation centres:
Győr: automotive sector
SMEs with high adde value
Geolit, Jaén, Spain: Innovation centre, industrial
park cluster and museum in topic of
processing of olive seeds and oil
500.000 - 15.000.000 eur
TO2 Enhancing access to, and use and quality
of, ICT
• extending broadband deployment and the roll-out of high-speed networks and supporting the adoption of emerging technologies and networks for the digital economy;
• developing ICT products and services, e-commerce, and enhancing demand for ICT;
• strengthening ICT applications for e-government, e-learning, e-inclusion, e-culture and e-health;
TO2 examples
Public administration online –
Hungary
Smart work centres
in rural areas with broadband internet - incubation, co-working, e-learning and meeting points for local community
Examples TO2
TO3 enhancing the competitiveness of SMEs
• promoting entrepreneurship, in particular by facilitating the economic exploitation of new ideas and fostering the creation of new firms, including through business incubators;
• developing and implementing new business models for SMEs, in particular with regard to internationalisation;
• supporting the creation and the extension of advanced capacities for product and service development;
• supporting the capacity of SMEs to grow in regional, national and international markets, and to engage in innovation processes;
Site development of Szintézis-net Ltd, HU
Example TO3
Approved Funding: 132.280 Eur intensity of support: 40% Szintézis-NET Ltd. is a well established software engineering company in Cental Europe which also operates in the U.S.
Size of established spaces : 1238 m2 Number of jobs retained: 33,87 Number of created new jobs: 32,6
TO4 supporting the shift towards a low-carbon
economy in all sectors
• promoting the production and distribution of energy derived from renewable sources;
• promoting energy efficiency and renewable energy use in enterprises;
• supporting energy efficiency, smart energy management and renewable energy use in public infrastructure, including in public buildings, and in the housing sector;
• developing and implementing smart distribution systems that operate at low and medium voltage levels;
• promoting low-carbon strategies for all types of territories, in particular for urban areas, including the promotion of sustainable multimodal urban mobility and mitigation-relevant adaptation measures;
• promoting research and innovation in, and adoption of, low-carbon technologies;
• promoting the use of high-efficiency co-generation of heat and power based on useful heat demand;
Examples TO4
B+R facilities in Cohesion
Fund projects of GYSEV,
Hungary
Examples TO4
Community
biomass
heating plants
in rural areas
Wind powerplants
Energy and heating from biomass in
indsutrial parks
TO5 promoting climate change adaptation, risk
prevention and management
• supporting investment for adaptation to
climate change, including ecosystem-
based approaches;
• promoting investment to address specific
risks, ensuring disaster resilience and
developing disaster management
systems;
Examples TO5
Flood protection
facilities protecting
bigger agglomerations
Complex ecosystem preservation and
renewal projects in national parks
Visitor/educational
centres
TO6 preserving and protecting the environment
and promoting resource efficiency
• waste sector
• water sector
• (conserving, protecting, promoting and developing natural and cultural heritage;
• protecting and restoring biodiversity and soil and promoting ecosystem services, including through Natura 2000, and green infrastructure;
• improve the urban environment, regenerate brownfield sites reduce air pollution and promote noise-reduction measures;
• promoting innovative technologies in the above sectors
• supporting industrial transition towards a resource efficient economy, promoting green growth, eco-innovation and environmental performance management in the public and private sectors;
Examples TO6
Sewage treatment plants with biogas
production
Solid waste deposits with
selective waste collection and
biogas production
Development of world heritage sites, Archabbeys of Tihany
and Pannonhalma, Hungary
Examples TO6
Tihany:
• Renovation of heritage sites, visitor centre
• Renewal of inner city
• Cycling and public transport friendly
developments
Pannonhalma
• Renovation of heritage sites
• New visitor centre
• Renewal of botanic garden
• Winery
• Accomodations
TO7 Promoting sustainable transport and removing
bottlenecks in key network infrastructures
• investing in the TEN-T;
• enhancing regional mobility by connecting secondary and tertiary nodes to TEN-T infrastructure, including multimodal nodes;
• developing and improving environmentally-friendly (including low-noise) and low-carbon transport systems, including inland waterways and maritime transport, ports, multimodal links and airport infrastructure, in order to promote sustainable regional and local mobility;
• developing and rehabilitating comprehensive, high quality and interoperable railway systems, and promoting noise-reduction measures;
198 million euros for upgrading the Hungarian
section of single track Vienna- Graz
Example TO7
• Extension two two tracks
• Flyovers and underpasses in big
cities
• Cargo platforms
• New passenger trains suitable for
daily commuting
Improved safety, reduced air and noise
pollution
Passenger numbers had risen by 20-26
% since completion
Follow-up projects: railway - tourism
TO8 promoting sustainable and quality employment
and
supporting labour mobility
• supporting the development of business incubators and
investment support for self-employment, micro-
enterprises and business creation;
• supporting employment-friendly growth through the
development of endogenous potential as part of a
territorial strategy for specific areas, including the
conversion of declining industrial regions and
enhancement of accessibility to, and development of,
specific natural and cultural resources;
• supporting local development initiatives
• investing in infrastructure for employment services;
Health Centre in Kőszeg, 700.00 eur, 100% financing
Municipality of Kőszeg also serving 15 settlements in the area
• Number of new or renovated doctor’s surgery: 11
• Number of new or renovated premises: 25
• Number of persons involved in quality outpatient care: 17350
Examples TO8
Examples TO8
TO9 promoting social inclusion, combating poverty
and discrimination
• investing in health and social infrastructure which contributes to national, regional and local development, reducing inequalities in terms of health status, promoting social inclusion through improved access to social, cultural and recreational services and the transition from institutional to community-based services;
• providing support for physical, economic and social regeneration of deprived communities in urban and rural areas;
• providing support for social enterprises;
• undertaking investment in the context of community led local development strategies;
Supporting Roma integration in Hungary
Health
Training and screening projects for healthy lifestylles and preventive. 10 NGOs
reaching out to 2 000 Roma people in 33 micro-regions.
Employment
Training, consulting and total quality management (TQM) services for SMEs and
micro-businesses in regions of high long-term unemployment is contributing greatly
to job creation.
Education
300 school buildings and pre-school facilities have been renovated and the
teachers have been re-trained for more inclusive, cooperative instruction methods.
Over 1 300 Roma students are now receiving support annually from special tuition
and mentoring networks.
know-how from the ‘Sure Start’ programme in the UK has been used to implement
a similar programme for young children (the ‘Biztos Kezdet’ programme).
Examples TO9
Housing
Project preparation a complex housing intervention that will de-segregate 100 ghetto-like shanty towns
Pilot programme in the micro-region of Szécsény
Hungarian Academy of Sciences as project leader
The micro-region is located in the deprived north-east of Hungary and is characterised by high unemployment, a high percentage of Roma population settlements and social disadvantages
• early development of skills;
• improvement of nutrition and health care for children;
• modernisation of social and children’s services
• improvement of housing conditions
• employment opportunities for parents
• education
Supporting Roma integration in Hungary
Social settlement rehabilitation in
SOPRON
Approved Funding: 1.815.740 Eur
The intensity of the support: 100%
Housing functions: energy efficient complex renovation of 4 buildings, equipping 40 flats owned 100% by the municipality
Community functions:
• energy efficient renovation of Halász Miklós Sports hall
• development of public premises: renewal and expansion of the 1200 m2 playground in Kuruc street
Public service soft activites:
life skills-social-child welfare services,
Summer Vacation for all age groups
Number of inhabitants in the rehabilitated parts of settlements: 479
Size of area concerned with settlement rehabilitation interventions: 10,8 ha
Number of buildings concerned with the development: 5
Number of renovated flats: 40
Social settlement rehabilitation in
SOPRON
•
• TO10 investing in education, training and
vocational training for skills and lifelong
learning by developing education and
training infrastructure
• TO11 enhancing institutional capacity of
public authorities and stakeholders and
efficient public administration
TO10 and 11
Examples TO 10
Kindergarten and school projects
1. Infrastructure:
2. Soft measures (ESF) are important:
• Improving teachers skills
• Improving curricula
• Equal opportunity trainings
Including
barrier free arcitecture
Energy saving equipent, renewaable energy
Leisure/sport facilities – community
functions
Cohesion Fund investment priorities
Art. 4 of CF Regulation (1300/2013)
• (d) promoting sustainable transport and removing bottlenecks in key network infrastructures by: – supporting a multimodal Single European Transport Area
by investing in the TEN-T;
– developing and improving environmentally-friendly (including low-noise) and low-carbon transport systems, including inland waterways and maritime transport, ports, multimodal links and airport infrastructure, in order to promote sustainable regional and local mobility;
– developing and rehabilitating comprehensive, high quality and interoperable railway systems, and promoting noise-reduction measures;
Intervention logic
Intervention logic
– Outputs are the direct products of programmes; they are intended to contribute to results.
– „Results” – new definition: the specific dimension of well-being and progress for people3 that motivates policy action, i.e. what is intended to be changed
Change in result indicator ═ contribution of intervention + contribution of other factors (former impact indicator)
– Impact is the change that can be credibly attributed to an intervention.
Conclusions
• OPs are financing documents: they should be few in number and they should be simple
• Multi-fund programmes allow flexibility in what types of actions an OP finances
• EU funding has to be more targeted – set realistic targets in mainstream OPs and support these targets with – ETC and other European Funds
– National funding schemes
– Regulatory measures
Sectoral vs territorial approaches
Example of Hungary:
2004-06: 1 RDOP (359 meur of ESF, ERDF) through one single call, regional sub-committees
• Tourism
• regional infrastructure and the communal environment (local roads, schools, PT)
• human resource development
2007-13: 7 ROPs (460- 900 meur of ERDF), priority projects + more than 300 calls, 1 monitoring committee, uniform structure
• Economic development (SMEs, Industrial parks, incubators, clusters)
• Tourism attractions, accommodations and destination management
• Urban development
• Environmental protection and transport infrastructure
• Development of local and regional public services (schools, kindergarten, crèches, hospitals)
2014-20: 1 Territorial and Settlement Development OP (ESF, ERDF), priority projects form NUTSIII level+ calls
• Local economic development
• Urban development
• Environment and resource efficiency, Low-carbon economy measures
• Distribution of tasks among levels of public administration – local,
– regional (NUTSIII or II)
– and central
Note: EU funding can not be expected change existing state structures
• Nature of challenges: local, regional, multiregional
• Size of regions or other territorial actors
• Type of potential beneficiaries: SME, NGO, local/regional public body, central public body
• Added value of local initiatives
• Co-financing capacities and decisions
• Project generation, development and project selection have to reflect the partnership principle (subsidiarity)
• Decentralization / deconcentration
• MA and IB functions are not the only way to empower regional/local level - global grants, experimental projects, LEADER, EGTC, CLLD, ITIs
Sectoral vs territorial approaches:
Important factors, conclusions
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EFFICIENCY AND
EFFECTIVENESS
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Efficiency aspects
Programming
• Ensure buy-in of stakeholders vs. useless „talking shops”
• Consultation useful at any stage of progr. + selection
Selection of operations
• Do not ask for more than necessary
• Limit quantity of documents / information
• Ask for details only from „winners”
• Ensure fast flow of information
• Slow administration creates additional problems
– (e.g. expiry of permits)
• Do not duplicate selection processes
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Efficiency aspects
Financial management
• Use certified copies vs. originals
• Use summaries vs. full documentation
• Use e-administration (and on-the-spot checks)
• Rely on regular tax debt recovery procedures, if possible
• Delegate but do not duplicate procedures
• MA-level verifications to be based on sample checks
rather than 100% ex-post controls
• „4-eyes” better than „40-eyes”
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Focus on Results
Traditional debate in cohesion policy
• Solidarity
• European added value
• „Friends of cohesion” vs. „Friends of good spending”
• Contradictory results from evaluations
– Model-based studies
– Empirical research (evaluations)
– Methodolocial uncertainties: new counterfactual methods
Conclusions of recent political debates
• Cohesion Policy to contribute to EU 2020
• Measureable results required to maintain consensus
• Output indicators may be a basis for financial corrections!
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Performance framework: Milestones
realistic, achievable, relevant, capturing essential
information on the progress of a priority;
consistent with the nature and character of the
specific objectives of the priority;
transparent, with objectively verifiable targets and
the source data identified and, where possible,
publicly available;
verifiable, without imposing a disproportionate
administrative burden;
consistent across programmes, where appropriate.
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Monitoring
Monitoring
• Use of indicators
– Ensure statistical base (including „common indicators”)
– Alternatively: use indicators where data are available
– Do not use more indicators than necessary
– Note: very specific indicator requirements in PA / OP
• Partnership in monitoring
– Use expertise of partners
– MC capacity building
– Working groups within monitoring committees
• Data availabiliity
– Management IT system rather than ex-post monitoring systems…
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Evaluation
„Culture of evaluation”
• External capacity yes – but not sufficient
• Introduce ex-ante, mid-term and ex-post evaluations in
national investment programmes
• Make evaluation results transparent – available to debates
by stakeholders
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RESERVE EMPTY SLIDE
TEST
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Contacts
Peter HEIL [email protected]
Tibor Polgár [email protected]