Simplification in ESI funds for 2014-2020 Moray Gilland Head of the Better Implementation Unit DG Regional and Urban Policy Brussels, 6 June 2016 1

EU Cohesion Policy 2014-2020: 1/3 of the EU budget The reforms agreed for the 2014-2020 period are designed to maximise the impact of the available EU funding. €1 082 billion OVERALL EU 2014-2020 BUDGET Other EU policies Agruculture Research External Etc. €730.2 billion 67.5% 32.5% €351.8 billion COHESION POLICY GROWTH Smart Sustainable Inclusive Cohesion Policy delivers Europe 2020 Strategy

Why has it become so complicated? Increasing size of rules period on period to reflect the increased sophistication of the policy – want to do more with the policy. Responding to findings of the Court of Auditors, for example on financial instruments to avoid "parking" of funds. Too many layers of EU and national rules ('goldplating').

1. A set of common rules applicable to the five ESI Funds in the Common Provisions Regulation. 2. Greater thematic concentration. 3. Better focus on results. New provisions for 2014-20

4. Simplified cost options (Article 67 CPR). 5 4. Simplified cost options (Article 67 CPR). 5. E-cohesion (Article 122(3) CPR). 6. Increased proportionality in relation to reporting, evaluation, management and control. New provisions for 2014-20

Maximising the potential of simplification options in 2014-20 Independent High Level Group on monitoring of simplification for beneficiaries making recommendations on how the uptake of simplification opportunities for beneficiaries could be improved for 2014-2020 period. Recommendations already on e-Governance and Simplified Costs. Recommendation due in June on Financial Instruments and access to EU Funds for SMEs. Study on simplification to assess the take up of the new provisions in the regulations for 2014-20 has been launched and will produce final results by the end of 2016.

HLG recommendations on E-Governance Help Member States in the next period with a common platform across the ESI Funds to provide a consistent approach for beneficiaries to audit issues and information technology Reduce the number of programmes, and therefore the number of different operating systems Need for a more consistent approach to audit and clarification on acceptability of electronic documents for all funds and ensuring there is agreement from all relevant audit bodies Encourage a partnership approach to e-Governance with assistance provided to Member States and managing authorities

Standard scales of unit costs Simplified Cost Options Lump sums Flat rate financing

SCOs: General principles Optional Must be a reliable proxy of real costs Must be established ex ante; often through a fair, equitable and verifiable method Not possible for operations/projects implemented exclusively through public procurement Can be copied from other EU policies (Horizon2020, LIFE, AMIF) and from national methods, for similar operations/beneficiaries

Constraints for the use of SCOs Understanding of the provisions / legal uncertainty Compliance with state aid Alignment of audit approach with simplification objectives Initial workload to design SCOs Lack of experience and information/historical data Heterogenity of the operations co-financed by the ERDF

HLG recommendations on Simplified Cost Options Commission needs to ensure that barriers and uncertainties around their use, especially in terms of conflicts with other EU rules such as state aid, are clarified by legislative changes if needed. More support is needed for programme authorities and to give them up-front assurance of their SCO schemes by opening up the possibilities already contained in Article 14 of the ESF regulation and/or providing a fast track approval of methodologies developed by programme authorities. Legislative changes may be needed to remove some of the restrictions that complicate the use of SCOs and make flat rates currently possible for some funds available to all.

The Commission will continue to promote the use of SCOs Follow the work of the High Level Group to advise on further reduction of administrative burden Consider regulatory changes to further extend the use of SCOs - eg: ongoing Commission proposal for modification of the General Block Exemption Regulation to clarify the compatibility of SCOs with state aid Participation in events, seminars etc Update the Guidance on SCOs Finalise the "INTERACT 55 Questions" Provide answers to many one-off questions from programmes

Continuing the discussion online The Simplify ESIF platform allows you to share your experiences, present your ideas, engage with other stakeholders, and help us reach a more effective and efficient management of the funds. https://ec.europa.eu/futurium/en/simplify-esif

Thank you REGIO-HLG-SIMPLIFICATION@ec.europa.eu