EC support to Member States in Good Governance European Commission Florian Hauser, EMPL Louis Meuleman, ENV 16 May 2017 Sub-theme 4: Open and transparent government as a solid foundation Session 20: Intra-European cooperation on improving public sector performance EC support to Member States in Good Governance

Overview Session 1 Overview of EC Instruments/Initiatives Thematic Guidance Practitioners' Network Some Trends in Public Administration Reform Intro to Case Study Session 2 Case Study: Environmental Implementation Review Discussion: Role of EC for suporting public administration quality

Key Points Good governance & quality public administration matters fundamentally for the EU's & MS's success The Commission provides analysis, funding, guidance, technical support and has several initiatives to help Member States improve There are encouraging and discouraging trends in public sector reform To really improve, we need to go beyond cost cutting; but to look at root problems, and focus on transparency, capacity and professionalism The cross-cutting nature of "public administration" and limited Commission mandate in this area makes our work not easy – we need a more regular & engaged policy dialogue with Member States

EC Instruments (examples only!) ESIF EUR 5 bln CEF, ISA EC Instruments (examples only!) Investment Research Funding Analysis Peer Networking Guidance Technical Support Soft Standards Tools JoinUp OPSI (OECD) EIR European Semester Factsheet Single Market SB Justice Scoreboard E-government eGovernment Action Plan Policy Dialogue Environmental Implementation Review (EIR) Regio TAIEX (Twinning) FISCALIS ESF Transnational Structural Reform Support Service EIR EIR Quality Administration Toolbox

What is the relation between "general" and "sectoral" ? Distribution of 2012-2015 CSR/structural challenges (all policy areas) by institutional capacity dimension What is the relation between "general" and "sectoral" ? Do we need "general"?

Guidance 2017 update

Introduction Principles & values of good governance Seven thematic chapters: Better policy-making Embedding ethical & anti-corruption practices Professional and well-performing institutions Improving service delivery Enhancing the business environment Strengthening the judicial system Managing public funds effectively (including PP and ESIF, TO11)

Discussion Notes – NEW content Policy coordination at the Centre of Government Managing integrity & corruption risk Performance management Multi-level governance – tackling policy problems across political & administrative boundaries Managing and motivating staff in an era of agile administration and automation Informed policy-making: insightful, innovative and inclusive Managing service delivery Public administration reform: making positive change happen 40 new cases

Discussion Notes – main messages 1 Fundamentals: Remain important – clear principles and values, constant vigilance to promote integrity, avoid conflicts of interest, and deter, detect and act on corruption Policy-making & implementation: growing role for understanding what people want (big data analytics), how they act ( behavioural insights) and engaging directly with them (co-design and co-production, collaborative commissioning 40 new cases

Discussion Notes – main messages 2 Structures and institutions: tendency to (re)centralise in recent years, but historic trend is to decentralise (autonomy and accountability), bring decision-making power closer to the people, much ongoing reorganisation, important to avoid dysfunctional administration, get structures right but also 3Rs (responsibilities, rights & resources), as well as cooperation and coordination (multi-level governance … links to Louis) Service delivery: E-services continue to expand (makes MLG redundant?), but also shared services (an austerity phenomenon?); need to manage portfolio of services, role for ‘creative decommissioning’? 40 new cases

Discussion Notes – main messages 3 Strategic planning: all above affects the workforce, including impact of automation on employment in public administration (‘rise of the robots’), need to plan accordingly for changing levels and skills Talent management: millennials will be core to the future workforce, how do you attract, manage and motivate the right people, create a conducive environment (see van Massenhove) Performance management: away from ‘new public management’ towards strategic agility, greater focus on outcomes Making change happen: VUCA leads to systems thinking, Vanguard approaches (systemic thinking); need to be alive to conditions for change, but also overcoming resistance and inertia 40 new cases

Some trends in public sector reform Challenges Positive Negative Cost & efficiency improvement Citizens trust in government Transparency & openness* Attractiveness & motivation Quality of services Social cohesion Beyond New Public Management Balance between: Hierarchies Markets Networks future *not everywhere…

Pathology and cure? International governance benchmarks (WB, OECD, WEF, etc.) give a snapshot proxy of performance (useful) BUT – benchmarks don't tell us much about root causes of problems (clientilism, culture) (Formal) Reforms on paper (job descriptions, evaluations, etc. often not fully implemented – clientilistic system left untouched) "Rationalisation" - depletes capacities and knowhow; low morale and apathy

ESF Transnational Cooperation

Possible way forward… openness to society, dismantle clientilistic policies size of public sector is the lesser problem, but irrational structure, uneven allocation of staff attractiveness as an employer (adequate structures, less bureaucracy, team orientation, mobility) fight red tape & extend citizens' rights through e- government make administration a tool for entrepreneurship & growth

Overview of ESF funded projects http://2020.eufunds.bg/en/

http://www.pongovernance1420.gov.it/

… from now on… (2017 - 22) EUPACK & "ongoing evaluation" Better understanding and dialogue with Member States: In which areas are you investing? (sectoral, horizontal, capacity building, structural reform…) What are successful projects? What are risks and lessons learnt? EU value added? What are the needs for the future? EUPACK & "ongoing evaluation"

The case of the EU's Environmental Implementation Review (EIR) Session 2: Teaching Silos to Dance for Policy Coherence: The case of the EU's Environmental Implementation Review (EIR)

Teaching Silos to Dance? Break down mental silos if they prevent change Don’t break down institutional silos if they provide the necessary structure, reliability, transparency, communication points -> We need to ‘teach silos to dance’’*: Create cross-cutting projects, partnerships, stimulate open-mindedness and collaboration; change procedures to open them up * Niestroy, I. and Meuleman, L. (2016). Teaching Silos to Dance: A Condition to Implement the SDGs. Guest article published on 21 July 2016 at http://sdg.iisd.org/commentary/guest-articles/teaching-silos-to-dance-a-condition-to-implement-the-sdgs/

The EIR as tool to support EU policy coherence The Environmental Implementation Review (EIR) is a two-yearly cycle of analysis, dialogue and concrete collaboration to boost environmental implementation 28 Country reports with main challenges, opportunities & successes Communication: Synthesis report on common trends and challenges Annex with all suggested actions Inclusive, cross-sectoral, multi-level country dialogues & Political exchanges in the Council Analysis Dialogue Collaboration Concrete action: e.g. guidance; (administrative) reforms; Peer 2 Peer tool for sharing experiences & expertise; bilateral projects; political conclusions, etc.

The EIR as tool to support EU policy coherence The analysis phase of the Environmental Implementation Review has shown that five 'root causes' of weak environmental implementation exist across the Member States: Ineffective coordination among local, regional and national authorities Lack of administrative capacity and insufficient financing Lack of knowledge and data Insufficient compliance assurance mechanisms Lack of integration and policy coherence, among others: silo-thinking

Teaching Silos to Dance: Strategies (1) TS2D strategy EIR Case example Reframe issues to make them attractive challenges for other sectors/actors From: Farmers are the cause of environment damage. To: In order to achieve a sustainable food production system we have common challenges to achieve clean air, water, soil, and biodiversity. From: Cars are the cause of air pollution in cities. To: There is a common interest to achieve sustainable mobility. From: Current economies damage the environment. To: There is a common challenge to developing a sustainable, circular economy to ensure competitiveness in the long

Teaching Silos to Dance: Strategies (2) TS2D strategy EIR Case example Build trust to transform 'enemies' into 'opponents' and 'coalition partners' into 'friends'. Strategy: In addition to finding common interests through reframing, investing in mutual trust is essential to develop mutual gains. In this diagram, moving from top to bottom (= from low to high trust) is often possible! The EIR case shows that 'enemies' can become 'opponents' and 'coalition partners' can become 'friends'.

Teaching Silos to Dance: Strategies (3) TS2D strategy EIR Case example Create a peer support culture: Exchanging expertise & experiences across sectors/actors EIR stimulates collaboration of Member States at all levels. National EIR country dialogues already show a peer support culture: MSs inviting each other as observers. Launch of TAIEX EIR Peer 2 Peer Tool mid-2017: Very cost-effective tool to finance 'matches' between demand and offer of expertise, through expert visits, study visits and small workshops.

Teaching Silos to Dance: Strategies (4) TS2D strategy EIR Case example Create informal meeting places: Colleagues from different silos getting to know each other Cross-cutting topics with environment dimension are being discussed during 'Beaulieu Cafés': informal talk shows with live music

Conclusions Break down mental silos where they prevent change. Don’t break down institutional silos as they provide the necessary structure, reliability, transparency, communication points There are at least for strategies to 'Teach Silos to Dance', as the EIR case shows: Reframe issues to make them attractive challenges for other sectors/actors Build trust to transform 'enemies' into 'opponents' and 'coalition partners' into 'friends'. Create a peer support culture: Exchanging expertise & experiences across sectors/actors Create informal meeting places: Colleagues from different silos getting to know each other

Discussion After 2020? Which (emerging) role for EC? More of? Less of? Investment Research Funding Analysis Peer Networking Guidance Technical Support Soft Standards Tools Which (emerging) role for EC? After 2020? More of? Less of? Better? Different? Focus: Horizontal? Sector? Issue?

Thank You florian.hauser@ec.europa.eu louis.meuleman@ec.europa.eu EIR website: http://ec.europa.eu/environment/eir/index_en.htm