EU Budget Focused on Results

Presentation by Vice-President Kristalina Georgieva 15 September 2015 – European Parliament

"Make sure that every action we take delivers maximum performance

and value added" Jean-Claude Juncker

Outline

1.Why "EU budget focused on results"?

And what precisely is it?

2.Progress to date and future

challenges

3.Key milestones

Why EU budget focused on results?

• Scarce resources (see MFF ceilings)

• Too much focus on absorption and compliance;

too little focus on performance

• Better spending debate during negotiations for

2014-2020 MFF

• Image problems of the EU budget

• Obligation towards the tax payers and citizens

Comparison of ceilings 2007-2020

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020110

120

130

140

150

EUR billion, 2011 prices

Contingency margin

2015 revision

What is EU Budget Focused on Results?

2. HOW do we spend?More leverage of EU fundsMore simplification efforts

BFOR

Relevant for:

Annual budgetDischarge

Mid-term reviewPost 2020 MFF

1.In WHICH areas do we spend?

European public goods with higher EU added value of funds

3. How are we ASSESSED?Rigorous application and further

development of our control framework

4. HOW do we

communicate?

Progress in 2014-2020 MFF framework

• A system to measure and communicate past performance

• Performance improvements in the new MFF 2014-2020:

• Higher amounts in key growth and competitiveness areas • Multiple objectives: example climate mainstreaming• Higher leverage for EU money• Reinforced link to economic governance • Programme performance framework + performance reserve • Simplified delivery system

• Reduce the error rate

Reporting on performancesome examples for 2014

Growth, competitiveness and employment• Increased participation of SMEs in research• Lower business start-up costs• New jobs for researchers• 2014 Nobel Prizes in Medicine• Higher employability for Erasmus students

Coping with international crises• Fighting Ebola• Humanitarian aid to Syria and Ukraine• Climate funding

Further work and challenges

• How much can we expect from indicators? • Do the costs of collecting indicators data outweigh their

benefits?• To what extent can we draw aggregated conclusions?• Can we really find a one-size-fits-all solution?• When does the time factor help or hinder performance

management (e.g. long cohesion implementation times)?

• The bottom line: can we improve the performance informed decision-making at a reasonable cost?

How we are assessed:Managing legality and risks

• What if the level of error is still persistently high…

Additional cost-effective

controls 

Further simplification

Multiannual residual error

ratetoo high

Deeper analysis of structural causes of errors in Member States 

Multiannual residual error

ratestill too high ???

Redesign programme

Possible budgetary

decisions on the basis of the

assessment of the

performance/error of the programme

Conference - EU Budget Focused on Results on 22 September 2015

Agenda:

1. Performance in the Public Sector: Theory and Practice

2. Key Features of the EU Budget's Performance

3. Outlook: an EU Budget Focused on Results

4. Focus on Policy: the EU Budget in Climate Action

High-level participation of:- National Ministers- MEPs and Court of Auditors- CommissionersAnd key note address by President Jean-Claude Juncker

Inter-Institutional Working Group on Performance-Based Budgeting

• Mandate: focus on substance, not procedures• Composition: broad but manageable• Deliverables: shared vision on how to increase

performance orientation of the EU budget

Flexible, hands-on approach for an effective product

Need to agree on the format and start the work!

Thank you!