Legislative framework for

the period 2014-2020

19 November 2013

N.B. The presentation is based on preliminary agreements

between the co-legislators

Adoption of legislative package is expected in December 1

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1. Multiannual Financial Framework
(MFF) 2014-2020

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 MFF 2014-2020: More Europe for the same money

MFF fully geared to support Cohesion Fund 66.3

objectives of Europe 2020 Less developed regions 164.3
strategy
Transition regions 31.7
Modernised budget (result More developed 49.5
oriented, conditionality, regions
innovative financial European Territorial 8.9
instruments, simplification) Cooperation
2007-13 2014-20 Outermost regions and 1.4
sparsely populated
EU 976 908 areas
Coh.Policy 347 325
Total 325.0
10 billion from the Cohesion Fund will be allocated to the Connecting Europe Facility
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3 categories
of regions

GDP/capita

Less developed regions:

< 75 % of EU average

Transition regions: 75-90%

More developed regions > 90%

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European Structural and Investment
Funds (ESIF) 2014-2020

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 Objectives

Deliver the objectives of the Union

strategy on smart, sustainable and
inclusive growth

A stronger focus on results

Maximise the impact of EU funding

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Reinforcing effectiveness and performance
More concentration
Focus on results (built into programme design)
Better common & programme-specific indicators, reporting,
monitoring & evaluation
Performance framework
Clear and measurable milestones and targets
Performance reserve: 6 % of national allocations (by
Member State, fund and category of region)
Conditionalities:
Ex-ante conditionality: Ensuring necessary conditions for
effective investment are in place,i.e. regulatory, strategic,
institutional etc.
Macro-economic conditionality: Alignment with new
economic governance: aim is to ensure that the
effectiveness of cohesion expenditure is not undermined by
unsound macro-fiscal policies 7
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 Why - what is the problem?
Current programmes too much designed to
spend:
Objectives vague (often deliberately so for maximum
freedom)
How to recognise success or failure often not clear

Evaluations focused on bottlenecks to implementation not

effects

Indicators do not express objectives & reporting is not

reliable in some cases (and is never debated)

Consequently, it has been difficult to

demonstrate the impact of the policy 8
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 Key Programming Documents

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 Partnership Agreement
An overarching strategy at national level which:
Covers the 5 ESI Funds (ERDF, Cohesion Fund, ESF, EARDF, EMFF)
Sets out the planned use of the Funds
consistent with the Europe 2020 strategy
taking account of territorial challenges
coordinated to ensure an integrated approach

Core elements:
strategic choices: selected thematic objectives, allocations of
funding, main results
list of programmes
coordination between ESI Funds and with other policies
commitments on administrative capacity and reduction of
administrative burden 10
 Operational programme
The main role of the operational programme is to set out a
coherent intervention strategy for the MS/region/sectors
Core elements:
Selection of thematic objectives, investment priorities,
allocations and justification intervention logic
Financing plan and list of major projects
Integrated approach to territorial development; specific needs
and demographic challenges
Ex ante conditionalities
Performance framework

Short, concise programmes with a clear focus on results

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 What is the Common Strategic Framework?
Annex to CPR therefore binding

Link to Europe 2020 and European semester

Provides more detail on how to promote integration and

coordination between the ESI Funds and with other Union
instruments and policies

Covers also: Cooperation - Key territorial challenges

Horizontal Principles and Cross-cutting Policy Objectives

To be considered during the programming process and

reflected in the PA and programmes. Provides more detail on
many of the requirements set out in the CPR 12
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 Key programming issues

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Partnership and multi-level governance
MS to organise partnership with the competent regional and
local authorities for PA and each programme, also including
- competent urban and other public authorities
- economic and social partners
- relevant bodies representing civil society

Partners to be involved in preparation of PAs and progress reports

throughout preparation and implementation of programmes incl.
participation in monitoring committees

European code of conduct for partnership

COM to consult organisations representing partners at Union

level on the implementation of the Funds + report to EP and Council
on the outcome 14
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 Scope of the ERDF - Positive list
a. Productive investment by SMEs.

b. Productive investment related to R&I or low carbon economy (all

enterprises), and on ICT in the case of cooperation between large
entreprises and SMEs

c. Infrastructure: energy, environment, transport, ICT.

d. Infrastructure: business, social, health, R&I, educ.

e. Endogenous potential: fixed investments in equipment and small-scale

infrastructure, incl. small-scale cultural and sustainable tourism
infrastructure , services to enterprises, support to R&I bodies

f. Networking, cooperation, capacity building, studies.

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 Scope of the ERDF - Negative list
a. De-commissioning or construction of nuclear power stations.

b. Reduction of greenhouse gas emissions from activities falling

under Emissions Trade Scheme.

c. Manufacturing, processing and marketing tobacco.

d. Undertakings in difficulties (EU's State Aid rules).

e. Airport infrastructure unless related to environmental protection

or accompanied by mitigating measures

No major changes compared to the current period.

However - note certain restrictions.
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 A menu of 11 thematic objectives for programmes
1. Research & innovation
2. Information and communication technologies (ICT)
3. Competitiveness of SMEs
4. Shift towards a low-carbon economy
5. Climate change adaptation & risk prevention and
management
6. Environmental protection & resource efficiency
7. Sustainable transport & removing bottlenecks in key network
infrastructures
8. Employment & supporting labour mobility
9. Social inclusion & combating poverty
10. Education, skills & lifelong learning
11. Institutional capacity building & efficient public adm.

Translated into investment priorities set out in the Fund-

specific rules 17
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 Rationale for thematic concentration

2007-2013
2014-2020

Limited impact due to

fragmentation of focus on limited
resources number
in areas which of areas which
contribute to
do not underpin economic and social
economic and social development
development

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 ERDF thematic concentration (1)
- At least 80% (more developed regions), 60 % (transition regions)
or 50% (less developed regions) to at least two of TOs 1-4:
TO 1 (research and innovation)
TO 2 (ICT)
TO 3 (SME competitiveness)
TO 4 (shift to the low carbon economy)
- At least 20% (more developed & transition regions), 15%
(transition regions) or 12% (less developed regions) to TO 4 -
low carbon economy.

- CF can contribute to ERDF thematic concentration requirements

for the low carbon economy. In case of less developed regions,
this will increase the requirement from 12 % to 15%.

- ETC: at least 80% concentrated on four TOs

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ERDF thematic concentration (2)
Exceptions to general rule
All regions which are phasing out in 2007-2013 will be considered
"transition";

All NUTs II regions consisting solely of island MS or of islands

which are situated in MS which receive support from the Cohesion
Fund will be considered "less developed";

All outermost regions will be considered "less developed";

Mayotte will have to concentrate on five (instead of four)

objectives, the fifth being environment;

All northern sparsely populated areas should concentrate their

special allocation on TOs 1-4 and 7 (transport).
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 Programme - building a logic of intervention
for each priority axis
From the intended change to the planned actions:
1: Identification of development needs what is it intended to
change?
2: Elaboration of specific objectives linked to selection of
thematic objectives and corresponding investment priorities
3: Definition of result and result indicators reflecting the
intended change for the region, sector
4: Choice of actions to be supported
5: Definition of output indicators measuring deliverables
expected to contribute to this change
Objectives and results should be defined first before actions
and the financial allocation. 21
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 Integrated approaches
COM has put strong emphasis on the integration and
coordination of Funds. A number of options are available for MS:

Multi-fund programmes between the ESF, ERDF and the CF

Integrated Territorial Investments
Community Led Local Development
Integrated operations
Integrated priority axes

It is up to MS to decide whether and how to use these tools to

best achieve integration and coordination
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 Coordination and complementarity with ETC &
Macro regional and sea basin strategies

The Partnership Agreement is the mechanism to achieve

complementarity with ETC programmes sets out
cooperation priorities taking account of MRS and SBS

The programmes identify contributions to MRS and SBS

subject to needs of programme area

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Ex-ante conditionality

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 Why ex-ante conditionalities?

To improve the effectiveness of investment

Ensuring that the necessary framework conditions

(fulfilment of EU Directives, existence of strategic
frameworks etc.) for effective use of Union support are
in place

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 Types of ex-ante conditionality
(Annex V CPR for Cohesion Policy)

Thematic ex-ante conditionalities are linked to the

thematic objectives and investment priorities
proposed for cohesion policy.

General ex-ante conditionalities are linked to

horizontal aspects of programme implementation.

NB: They do not apply to European territorial cooperation.

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Example: EAC for TO 3 on SMEs
- measures have been put in place with the objective of
reducing the time and cost to set-up business taking
account of the targets of the Small Business Act (SBA);

- measures have been put in place with the objective of

reducing the time needed to get licenses and permits to
take up and perform the specific activity of an enterprise
taking account of the targets of the SBA;

- a mechanism is in place to monitor the implementation

of the measures of the SBA which have been put in place and
assess the impact on SMEs.

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 Key stages
The MS has to check which ex-ante conditionalities are applicable
(this is the case where there is a direct and genuine link to the
investment priorities it has selected) and whether the applicable ex-
ante conditionalities are fulfilled.
COM assesses adequacy and consistency of the info provided by MS
If relevant criteria are not fulfilled by submission of the programme:
MS to provide an action plan to ensure fulfilment by end of 2016

If the COM thinks that non-fulfilment leads to significant prejudice

(harm/damage) to the effectiveness and the efficiency of the
achievement of the specific objective of the investment priority
concerned it can suspend interim payments at the stage of adoption
of a programme.

Interim payments can also be suspended if there is no fulfilment by

end of 2016.

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Thank you for your attention!

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