Structural Funds - Programming Predeal April 2006 Colm McClements

1. Structural Funds - Programming Predeal April 2006 Colm McClements

2. Cohesion Policy 2007-2013 …. According to the Commission

3. The legislative proposals • The legislative proposals are put in place through 5 regulations: • A general regulation, which fixes the main objectives and eligibility rules, for interventions, for programming and for the management of the funds • 3 regulations, ERDF, ESF and the Cohesion Fund, which spitulate the arrangements specific to each fund • A regulation on groupings for European transborder cooperation, which creates a new cooperation tool available to regional and local organisations

4. The 3 political priorities • The increase in disparities in the context of enlargement leads to concentration of cohesion policy on 3 priorities: • The convergence of countries (GNI < 90% of the average) and regions (regional GDP < 75% of the average) and the regions concerned by the statistical effect, that is 33% of the population of the Union • Regional competitiveness and employment: reinforce attractiveness and ensure that socio-economic changes are anticipated in other regions, without Community zoning • European territorial cooperation: Cross-border, trans-national and inter-regional

5. Re-orientation of Cohesion Policy based on the priorities of the Union (Lisbon and Göteborg) • Articulation around the 3 pillars of sustainable development: • Competitiveness: innovation, research, educationand Accessibility • Employment and social inclusion • Environment and risk prevention

6. The general principles of the reform • A more strategic approach based on Union priorities • Budgetary and thematic Concentration • Decentralised andTerritorial approach through greater responsibility for countries, regions and towns • Simplification of management methods • Proportionality and efficiency of control and monitoring

7. 1. A more strategic approach • Definition of Union priorities in the strategic guidelines established by the Council • Translation by the Member States of these Community priorities in a national strategic reference framework decided by the Commission • Operational implementation by means of regional and thematic programmes

8. 4. Significant simplification • 3 funds in place of 6: ERDF, Cohesion Fund, ESF • A single fund by programme • Integration of projects of the Cohesion Fund in multi-annual programming • Identical management rules for the Cohesion Fund and the Structural Funds • Programming and financial management by priority and no longer by measure • National eligibility rules for expenditures and no longer Community rules

9. 5. More efficient financial management and control, in the interests of the Community • Clearer share of responsibilities between theCommission and the Member States (clearer articulation of different control levels) • Generalisation of the rule N+2: efficiency and discipline • Intervention of the Commission in control and monitoring in proportion with the degree of assurance given by the Member State and the financial stakes involved • Payments conditioned by the commitment of the Member States on the reliability of the country’s management and control systems • Clarification of the mechanisms for financial correction in cases of irregularity • Conditionality of the Cohesion Fund linked to the respectof convergence programmes (temporary suspension of commitments, but restitution possible)

10. Pre-accession funds vs. Structural Funds differences • STRUCTURAL FUNDS • Support to national policies • Decentralised, member state responsibility • Spending based on programming • ESC oriented => Economic development objectives • Larger financial resources • Absorption capacity threat • Small projects are usual and inevitable even with emphasis on infrastructure • SF usually co-finances regular national programs • „First come first serve“ project selection possible, competitive process not obligatory and often not appropriate (eg public projects) • Coherent rules on project appraisal required, preferably consistent with normal rules applied to all domestic public investment • Administrative Capacity can be supported • PRE-ACCESSION FUNDS • International aid - • Centralised, EC responsibility (except EDIS) • Accession oriented =>IB projects important • Limited financial resources • Many projects not supported • Larger projects prefered but also many grant schemes • Selection of projects always on a competitive basis • Scope of spending quite limited

11. Program Project Three Cycles Policy

12. Policy • Policy :“ A course of action adopted and pursued by a government, party, ruler, statesman” (Oxford English Dictionary) • “…The concept of policy denotes …deliberate choice of action or inaction, rather than the effects of interrelating forces” (Smith, 1976, p.13)

13. Programme • Programme : • “ a series of steps to be carried out or goals to be accomplished” • Example: "they drew up a six-step plan” • Usually implies more….objectives, inputs, outputs….

14. Operational Programme • document submitted by the Member State and adopted by the Commission […] setting out a development strategy using a coherent set of priorities, to achieve with the aid from a Fund, or, in the case of the “Convergence” objective, the Cohesion Fund and the ERDF, will be sought

15. Policy and Legal Basis Article 158 of the Treaty: in order to strengthen its economic and social cohesion, the Community shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions, including rural areas.

16. Key Structural Funds and their Fields of Intervention

17. EU Priorities & Pillars National Strategic Reference Framework National Development Plan Operational Programmes National development programmes Regional or national operations – strategic plans or limited programmes, large projects, schemes Hierarchy of programming documents

18. NDP general objective specific objectives NDP Priority general objective specific objectives Planning OP general objective specific objectives OP Priority general objective specific objectives (Measure) general objective specific objectives operational objectives Implementation Logic of objectives in programming documents

19. Programme Logic:Simple Example

20. Key Levels of Outcome • Objectives: global, specific, [priority areas] operational [measure] • Inputs : financial, organisational resources • Outputs: physical (eg no. of kilometers of road) • Results: immediate effects of outputs on beneficiaries - (eg road: reduced travelling time) • Impacts - “results of results” in terms of objectives (eg increased traffic or trade)

21. Internal Coherence of a Programme

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23. Logic of objectives in programming documents Currently Priority Measures Operations For future documents to EU Priority Operations

24. Operation

25. SWOT • Strengths Internal factors • Positive things about a situation, project, or activity which are working well. • Weaknesses Internal factors • Things which are not working well, or which could be done better • Opportunities External factors • Possibilities to build-on strengths of overcome weaknesses • Threats External factors • Constraints which reduce the opportunities for growth or change

26. Trends: economic technological political cultural other SWOT Strategic objective Strengths Weaknesses Opportunities Threats matching conversion Strategic issues Strategies

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28. OBJECTIVES: Objective(s) of measure Objectives of OP / Priority Objectives of RDP : Contribution (impact) to these objectives: Results / beneficiaries Outputs Activities (design) Inputs 1. / 1. 1.1 1.2 1.3 € € € 2. / 2. 2.1 2.2 € € Total budget € Total inputs  Capital: To includeLand, buildings, equipt & other capital Revenue: To includeStaff costs, consultancy & other non capital costs Direct appli-cant expend. € Subcontract expenditure €  Total Capital € Total Revenue € Operation planning matrix

29. Structural funds OP management Managing Authorities (MAs) per Operational Programme Payment Authorities (PAs) per Operational Programme or single PA per country Intermediary Bodies (IBs) per Operational Programme, per Priority or „Intervention“ Final Beneficiaries (FBs) Grant schemes or project developers/project promoters End users or target groups Those who really benefit from the intervention (project)