ESF Technical Working Group Brussels, 8 February 2018 EMU Package of 6.12.2017 – Amendment to the Common Provisions Regulation (CPR) on the ESI Funds (for information) ESF Technical Working Group Brussels, 8 February 2018

Overview of the presentation Content of the EMU Package of 6.12.2017: Roadmap for deepening Europe's Economic and Monetary Union – concrete steps for the next 18 months Support for reforms: 2 complementary components Reform delivery tool : COM proposal to amend the CPR and allow MS to use the (part of the) performance reserve to support structural reforms (COM(2017) 826) Next steps

A. Content of the EMU Package Communication – including a Roadmap – on further steps towards completing Europe's Economic and Monetary Union A proposal (Council Regulation) for the establishment of a European Monetary Fund anchored in the Union legal framework A proposal (Council Directive) to integrate the substance of the Treaty on Stability, Coordination and Governance into the Union legal framework A Communication on new budgetary instruments for a stable euro area within the Union framework An amendment to the Common Provisions Regulation to mobilise funds in support of national reforms An amendment to strengthen the Structural Reform Support Programme A Communication on a European Minister of Economy and Finance

B. Support for reforms 1. Reform delivery tool to support MS reform commitments 2. Strengthening the Structural Reform Support Programme (SRSP) by doubling the capacity of the existing SRSP to reach €300 million by 2020 to: increase the technical support available for all Member States and develop a dedicated work stream for non-euro Member States on their way to joining the euro area. Aim of the SRSP is to finance tailor-made technical support to MS to help them with their reform plans. Support is available to all MS, is demand-driven and requires no co- financing. First feedback shows that the demand largely exceeds the amounts available.

C. Reform delivery tool (1) Why ? What is the objective? EMU requires appropriate national policies – many are national competences – need for coordination and sequencing of reforms to maximise effectiveness Post-2020 MFF: COM intends to propose (May 2018) a new reform delivery tool with its own budgetary endowment To support MS in implementing reforms identified in the European Semester process and ensure ownership of reforms MS to commit to reforms discussed at EU level: 'reform commitments' Broad range of reforms: labour market, improving the business environment, investment in human capital and public administration, but also tax reforms, product market reforms, the development of capital markets, … 2018-2020 : test this new reform delivery tool – use the performance reserve of the ESF, ERDF and CF

C. Reform delivery tool (2) How would it work? (1) MS have the option to (partially or fully) use the performance reserve either for: The programmes and priorities which have achieved their milestones or To support structural reforms on the basis of reform commitments If MS want to use it for structural reforms: MS to make A proposal to undertake reform commitments : detailed set of measures to implement reforms in accordance with Union law, milestones and targets for their implementation and timetable (maximum 3 years) A proposal to amend the Partnership Agreement and the Operational Programme to reallocate all or part of the performance reserve

C. Reform delivery tool (3) How would it work? (2) COM to assess the proposal + possibility to make observations or seek additional information MS to provide the requested information and revise the reform commitment if requested COM to adopt a decision setting out: the reform commitments to be implemented by the MS the amount allocated from the performance reserve that the support will be paid in full once MS has fully implemented the reform commitment the modalities and timetable for reporting (within the European Semester) Support= financing not linked to costs – Art. 121(1)(c) of the (new) Financial Regulation Direct management

D. Next steps 20 February 2018: discussion in the Council (SMWP) COM has invited the European Parliament and the Council to adopt the proposal for the changes to the Common Provisions Regulation by mid-2018. More information: http://europa.eu/rapid/press-release_IP-17-5005_en.htm

Thank you!