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The revised Financial Regulation and the new 2014 – 2020 Financial Framework Laurent SARAZIN

The revised Financial Regulation and the new 2014 – 2020 Financial Framework Laurent SARAZIN Head of Unit, DG EuropeAid R/3 – Legal Affairs The FIDIC-MDB Harmonised Construction Contract Conference Brussels, 25 – 26 June 2012. 1. Introduction.

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The revised Financial Regulation and the new 2014 – 2020 Financial Framework Laurent SARAZIN

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  1. The revisedFinancial Regulation and the new 2014 – 2020 Financial Framework Laurent SARAZIN Head of Unit, DG EuropeAid R/3 – Legal Affairs The FIDIC-MDB Harmonised Construction Contract Conference Brussels, 25 – 26 June 2012 1

  2. Introduction Revision of the Financial Regulation - state of play The Common Implementation Regulation (CIR) and MFF package The new EU policyframework : the "Agenda for Change" 2

  3. New Financial RegulationCalendar Last estimate : 1/1/2013 2013 2010 2011 2012 April 2011 FR BUDGET IR BUDGET COREPER HU PRESIDENCY TEXT FR EDF May 2010 COMMISSIONPROPOSAL PRAG COMMISSION DK PRESIDENCY Last deadline for entry into force TRILOGUE (1ST READING) EUROPEAN PARLIAMENT November 2011 AMENDMENTS EUROPEAN PARLIAMENT MFF - EXTERNAL ACTION FINANCIAL INSTRUMENTS December 2011 PROPOSALS 3

  4. Management modes Current architecture From 5 categories…. Shared (Member States) Decentralised (Third Countries) Joint (international organisations) centralised direct Indirect • All implementing partners of EU funds are public • Heterogeneous regimes for the rules applicable to expenditure 4

  5. Management modes New architecture ….To 3 main categories ….To 3 main categories ….To 3 main categories ….To 3 main categories ….To 3 main categories ….To 3 main categories ….To 3 main categories ….To 3 main categories ….To 3 main categories ….To 3 main categories EU Budget EU Budget EU Budget EU Budget EU Budget EU Budget EU Budget EU Budget Indirect management Indirect management Direct management Direct management Direct management Direct management Shared management Shared management Shared management Third countries International organisations National agencies and Financial Institutions (public or private with public service mission) EIB-EIF Public & Private Partnerships CFSP Missions Regulatory agencies Member States Heads of Delegation Authorising Officers 5

  6. New entities Public Private Partnerships: cooperation between public authorities and private sector for performance of public contracts or concessions, complying with: Established in a Member States; Providing adequate financial guarantees; Entrusted with a public-private partnership Financial Institution implementing “financial instruments”, complying with the definition of "public body or private body entrusted with a public service mission". 6

  7. Procurement New thresholds Service contracts 7

  8. Procurement New thresholds Supply contracts 8

  9. Procurement New thresholds Works contracts 9

  10. Procurement New case for negotiated procedure: Replacement of contractor- where a new contract has to be concluded because of an early termination of an existing contract 10

  11. Procurement Guarantees on pre-financing 11

  12. Objectives : • Avoiding divergence of rules along the legislative procedure • Unique set of rules for the implementation of all instruments

  13. Link between CIR and FR 2 layers of regulations Financial Regulation (the main ‘toolbox’)… …completed by the Common Implementing Rules (CIR) (specificities authorised by the FR) Geographical & thematic regulations for EU External Action IMPLEMENTING PARTNERS & FINAL BENEFICIARIES

  14. Harmonising on the basis ofthe simplest rule • Simplified tax regime (CIR Article 5) • Where possible, negotiate full tax exemption with third countries for EU aid disregarding the implementing mode; • Relation EU/contractors and grant beneficiaries: tax actually incurred is an eligible cost of the action • Simplified untying aid provisions (CIR Article 8-11) • - Common regime for developing countries • - Fully untying aid regime as common de minimis rule for the origin of supplies and goods below 100,000 €.

  15. The new EU policy framework “Agenda for Change” - Focus on 2 pillars: • Democracy, human rights & good governance • Inclusive &sustainable growth for human development - Concentration on max. 3 sectors per country - Aid focused on countries most in need & where impact is greatest (Differentiation) - Common vision for EU+MS: joint actions & programming promoted

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