#EUBudget4Results

Outline

1. Elements of the Performance Framework of the EU budget

2. 'EU Budget Focused on Results' overview

3. Conclusions

1.Elements of the Performance Framework of the EU budget

Treaty + EU legislation

Europe 2020 + Junker's Commission priorities

2014-2020 Multiannual Financial Framework (i.e. performance-based budgeting

tools embedded into the legal basis of the programmes)

Annual budgetary process: informed political choices (i.e. programme statements)

Managerial performance framework inside the Commission (i.e. Strategic

Planning and Programming cycle)

Ex-ante and retrospective evaluations of programmes (i.e. impact assessments,

mid-term and ex-post evaluations)

Regular reporting, transparency and accountability (i.e. report on the management

and performance of the EU budget)

EU performance framework is conceptually in line with international practices: the PF in place is complementary to compliance audit and the political negotiation process.

MFF 2014-2020 Commitment appropriations by heading

The EU budget within its political and regulatory environment

EU legislation:

proposal &

implementation

Private sector

EU Treaties

Objectives & competences of the EU

National Budgets

Other non- budgetary

actions

( policy..)

Common policies'

implementation &

coordination

Europe 2020 Strategy – EU level

Member States

National targets & reforms

coordination & monitoring

by the Commission via the European Semester

Juncker's Commission

political priorities

Commission

work programme & Strategic plans

Three different perspectives to keep in mind:

1. the performance of the EU in achieving high level commonly agreed Europe 2020 objectives

2. the performance of the Commission as an organisation

3. the performance of the programmes in achieving their objectives as set in the legal basis

EU budget

execution & programmes'

management

80 % in MS hands

ultimate financial responsibility for implementing the funds (legality and

regularity)

Progress monitoring and reporting on results (performance)

design of the performance framework of the programmes in the legal

basis (objectives, indicators, expected results, targets, conditionalities…)

Many actors involves at national and supranational levels

All actors have a part to play to ensure that every euro spent with

the EU budget serves efficiently its intended purpose

alignment EU budget with political priorities and needs

Heads of state & government

Legislator

implementation on the grounds: 80% of the EU budget is implemented in

shared management

Member States: national, regional and local authorities

Commission

indirect management

International organisations and other partners

Performance framework of the EU budget

Complementarity: : Several programmes contribute to one policy

R&D

Mainstreaming: one policy is mainstreamed into several programmes

One to one link between Euro invested and results is misleading

Climate action Biodiversity Gender equality

General Objectives : Commission's level

Specific objectives: DG's level

Reporting framework : Commission vs EU budget

DG RTD

General objective:

A New Boost for Jobs,

Growth and Investment

Specific objective:

To ensure an effective

and efficient

implementation of

Horizon 2020

Annual management and performance report

Junckers' Commission's

political priorities

Annual outputs planned by the DG

Annual Activity Report

Dg's main achievements +

Assessment on how EU programmes contributed to the policy achievements

Annual Management Plans

Strategic Plans

P

L

A

N

N

I

N

G

2014-2020 MFF

General and specific objectives and

indicators defined for each programme

Programmes: Legal basis

EU programme's progress

Results measured in relation to the baseline, milestones and targets

Programme statement

R

E

P

O

R

T

I

N

G

Horizon 2020

General Objective:

To build a society &

economy based on

knowledge and innovation

across EU while

contributing to sustainable

development

Specific Objective :

Strengthening skills, training

and researchers' career

development

2. 'EU Budget Focused on Results' Overview

BFOR: key steps to date

Progress in 2015:

Development of conceptual framework for the implementation of the BFOR initiative within the new MFF

Establishment of internal governance: Political leadership and technical work-streams

Upgrading the Commission's SPP cycle

Public outreach:

- Conference BFOR, 22 September 2015

- EU Results web app (750 projects)

Progress in 2016:

Expert group on PBB

Draft Budget 2017: Reinforcement of programme statements

2015 Annual Management and Performance Report for the EU Budget

Communication on Mid-Term Review of the MFF and revision of the Financial Regulation

Public outreach:

- Conference BFOR, 27 September 2016

There is strong political momentum to progress in the implementation of the Performance framework embedded in the current MFF.

Streamlined reporting consolidating information of 2 reports

Key results and progress towards the achievement of objectives

o reporting on performance and contribution of EU budget to policy achievement

Annual Management and Performance Report

Part1: some Performance Achievements 2014-2020 MFF

• European Fund for Strategic Investment allowed, in its first year, financing of projects with a total value of investment of EUR 100 billion thus boosting jobs and growth

• Funding in support to security, migration, border control and root causes of migration was doubled to over EUR 10 billion for 2015-2016

• Over 350 000 migrants were rescued in the Mediterranean thanks to the tripling of funding for Triton and Poseidon interventions and their reinforcement of staff

• More than EUR 2.5 billion have been allocated during 2015 and 2016 to Syria and Africa trust funds and Facility for Refugees in Turkey providing basic needs to refugees;

• 240 000 persons benefited in 2015 from integration measures under Asylum, Migration and Integration Fund

• Galileo satellites deployment was accelerated: 12 satellites launched, 9 in operation, 14 in production

• Number of airports with EGNOS capability increasing security of landing operations went up from 150 to 174

• EUR 63.3 million emergency assistance to Ukraine provided help to over 800 000 of the most vulnerable financing projects for shelter, food, education, health care etc.

• Additional liquidity for Greece amounting to EUR 2 billion to help maintain ongoing investments

2007-2013 MFF • Seventh Framework Programme had an estimated indirect

economic effect of EUR 20 billion annually in additional GDP and supported 11 Nobel Laureates

• 9 million citizens received training, improved skills or gained employment through the European Social Fund

• 825 000 jobs were created and 120 000 new firms across the EU were helped to start-up thanks to the European Regional Development Fund

• EAFRD supported 430 000 farm modernisation projects and provided start-up support to 165 000 young farmers

• Improvement of the environmental performance of EU farming expanded to 47 million ha, representing more than 25% of the EU-27 Utilised Agricultural Area in 2013

• LIFE contributed to the reduction of 1.13 million tonnes of CO2 emissions per year

• EU external aid helped vaccinate 20 million more children against measles and built or renovated more than 8 500 health facilities worldwide; 40 500 scholarships were provided for secondary and tertiary education developing country students

Part2: Legality and Regularity

The estimated amount at risk at payment

dependent on the mix between pre-financing, interim payments, final payments and related cleared pre-financing under the previous programming period

has decreased by some 10 % compared with the situation in 2014.

The estimated amount at risk at closure

below the 2% materiality threshold

EU budget is adequately protected - key role of Member States in this area

Programme Statements

• Working document attached to the Draft Budget

• provide information on the objectives of each programme ('why and on what do we spend?')

• present how the resources are spread among the programmes ('where we spend?')

• provide an annual snapshot on programmes implementation state of play ('is the programme progressing toward its targets?')

• substantiate the draft budget with available performance information including best possible forecast of milestones, targets and outputs.

MFF Mid-Term Revision and Financial Regulation Revision

Allocate funds to priorities ( € 6.3 bn), within margins

Immigration € 3.9 bn

Growth and Jobs € 2.4 bn

Increase flexibility and agility

Doubling the size of the existing flexibility instrument and Emergency Aid Reserve

Creating a new European Union Crisis Reserve financed from de-committed appropriations

Lifting the restrictions to the global margins for commitments and payments

More flexibility through simplification of financial rules; e.g. "flexibility cushion" for external action instruments.

Simplify spending rules

16

A simplified single EU financial

rule book

replacing the Financial Regulation

(FR) and its Rules of Application

Simplifications of 15 other

legislative acts (mostly ESIF rules)

-25% of text

increase the flexibility of the budget

simplify its implementation to optimise EU spending for 2018 onwards

3.Conclusions

The EU performance framework is aligned with international standards

Realistic expectations are key to success: The process of improving the PB framework is a gradual one where every step forward counts

The performance of the EU budget must consider the multiplicity of objectives as well as the complementarity and mainstreaming of policies and programmes

There is strong political momentum to progress in the implementation of the PBB framework embedded in the current MFF

EU Budget

• EU Budget: http://ec.europa.eu/budget/index_en.cfm

• EU Results: http://ec.europa.eu/budget/euprojects/

• Budget Focused on Results initiative: http://ec.europa.eu/budget/budget4results/index_en.cfm

• EU annual budget life-cycle: http://ec.europa.eu/budget/annual/index_en.cfm

• EU Budget in my country (latest available data : 2013): http://ec.europa.eu/budget/mycountry/index_en.cfm

• Public consultation on the revision of the Financial Regulation applicable to the general budget of the Union: http://ec.europa.eu/budget/consultations/index_en.cfm

#EUBudget4Results