Performance Framework 2014-2020 Veronica Gaffey Head of Evaluation & European Semester DG for Regional and Urban Policy Brussels, April 16th, 2013

Performance Framework Monitors that implementation is as planned A subset of programme indicators Under the control of the Managing Authorities Milestones for 2018 and Targets for 2022 (2023) Must be unambiguous and milestones and targets realistic Allocation of reserve to priorities which achieve milestones Possible suspensions and corrections for non-achievement 2

Milestones (intermediate targets) Building blocks Priority level Milestones (intermediate targets) Targets Set to be achieved by the end of 2018 Formally reviewed in 2019 Set to be achieved by the end of 2022 (2023) Formally reviewed in 2024 They should be realistic, achievable, relevant, capturing essential information on the progress of a priority; consistent with the nature and character of the specific objectives of the priority; transparent, with objectively verifiable targets and the source data identified and, where possible, publicly available; verifiable, without imposing a disproportionate administrative burden; consistent across the programmes, where appropriate.

Building blocks Indicators (priority level) Milestones (intermediate targets) Targets Financial Must be included Total amount of eligible expenditure entered into the accounting system of the certifying authority (except for EAFRD) Output Not additional – chosen from among indicators already selected for the programme Limited number (majority of resources allocated) Result To be used only where appropriate (close link to supported policy interventions) Different approach fund by fund Key implementation steps To be used when necessary (no outputs) Should not be used as outputs must be delivered by then

What goes where? Partnership Agreement Methodology to ensure consistency in the functioning of the performance framework across programmes and ESI Funds Monitoring mechanisms for early detection of potential performance issues and the system for their follow-up (if existing) Programmes (for each priority axis) Table with information about the indicators and their measurement unit, milestone and target values Basis for selection of indicators, milestones and targets (optional)

Revision of milestones and targets In duly justified cases, such as a significant change in the economic, environmental and labour market conditions in a Member State or region. When re-allocations between priorities After the performance review and allocation of the reserve The procedure foreseen in Article 26 CPR for amending programmes applies.

Performance Review Concerns achievement of milestones set for the end of 2018 On the basis of data put by Member States in SFC2014 by 30 June 2019 Decision on performing priorities by Commission by 31 August 2019 Only one indicator may fail by just 5% for a priority to perform Serious failure (2 indicators reach less than 75%) may lead to suspension of interim payments (milestones) or financial corrections (final targets) 7

Performance Reserve 5% (7%) of each Fund (excluding ETC) Within 3 months of Commission decision (i.e., end November 2019), MS proposal for allocation among performing priorities Within 2 months Commission must object or approve the amendment of programmes (therefore, most decisions in 2020) Allocation of the reserve to a priority will require that all indicators are reviewed and amended as necessary (including end of programme targets in the performance framework) 8

Conditions for Suspension & Correction Serious failure to meet milestones/ targets (Commission proposal: below 75% for 2 indicators) Commission has previously communicated to MA implementation weaknesses and MS has failed to take action For corrections only – no significant socio-economic or environmental developments have prevented the achievement of targets. 9

Challenges for Performance Frameworks Keeping it as simple as possible (minimise number of indicators) Coverage of the Priority Axis (Commission proposal: output indicators to cover 75% of allocation) Setting realistic milestones and targets (ex-ante evaluation may help) Consistency within a MS for similar priorities (should be described in Partnership Agreement) 10

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