Amending the Performance Framework ESF Technical Working Group Brussels, 17 April 2018

Overview of the presentation I. Amending the performance framework The rules Typology of justifications Deadline and procedures for amending the PF II. The performance review What is it? How does it work? Application of the performance framework : suspension of interim payments following the performance review

I. Amending the Performance Framework

1. The rules : Annex II CPR, point 5 Milestones and targets can be changed if: there is a change in the allocation for a given priority In duly justified cases: 2 examples in the regulations: a significant change in the economic , environmental and labour market conditions (Annex II, point 5 CPR); the assumptions of the method used to select indicators or set targets and milestones have been found to be incorrect (CIR 215/2014) NOT justified is the request for revision if it only aims to align milestones and targets with actual performance.

2. Typology of justifications Change in policy: e.g. change of the target group, the type of actions, the sequence of actions Wrong assumptions: e.g. unit costs, duration of the action, calculation of the N+3 target Significant change in economic or labour market conditions Low level of implementation is not a justification

3. Deadline & procedure for amending PF (1) No legal deadline But MS are recommended to request an amendment of the PF not later than 30 June 2018 The OP amendment needs to be approved by the monitoring committee MS needs to justify the amendment request (Art. 30 CPR)(a change in the allocation or a duly justified case and which one) and explain the changes of (the values for) the indicators.

3. Deadline & procedure for amending PF (2) COM may ask the MS to provide the information on the methodologies and criteria for selecting the indicators and fixing the milestones and targets which the bodies preparing programmes and their amendments have to record (Art. 4 CIR 215/2014): data or evidence used to estimate the value of milestones and targets and the calculation method information on the share of the financial allocation represented by operations, to which the output indicators and key implementation steps set out in the performance framework correspond, as well as the explanation of how that share has been calculated an explanation of the selection of result indicators or key implementation steps, when included in the PF

II. Performance Review

Performance review What ? Assessment of the achievement of milestones of the priorities of the programmes on the basis of the info + assessments in AIR How many ? One performance review When ? 2019 following receipt AIR (30.06.2019) Possible implications of the review: Allocation/reallocation of the PR Suspension of interim payments

Perform. Review – How does it work?(1) MS submits AIR by 30.06.2019 If MS does not provide the info: no allocation of PR to the programmes and priorities concerned COM to assess whether a priority has achieved its milestones In case of ‘complex’ priorities (more than 1 ESI Fund, more than one category of region): assessment to be broken down by ESI Fund and by category of region; YEI to be assessed separately

Perform. Review – How does it work?(2) When has a priority achieved its milestones? (Art. 6(2) CIR 215/2014) -> if 2 indicators in the PF: both indicators achieve at least 85% of the milestone value -> if 3 or more indicators in the PF: all indicators except one achieve at least 85% of the milestone value and the other achieves at least 75% of the milestone value

Perform. Review – How does it work?(3) Commission decision determining for each ESI Fund and MS the programmes and priorities that have achieved their milestones – deadline: 2 months following receipt AIR Milestones achieved: amount of PR established for the priority= definitively allocated Milestones not achieved: reallocation to priorities that have achieved milestones

Perform. Review – How does it work?(4) Reallocation: MS to propose reallocation of the corresponding amount PR to priorities having achieved their milestones (as set out in COM Decision) + other amendments resulting from reallocation – deadline: 3 months after COM decision Need to respect thematic concentration requirements and minimum allocations, unless….(Art. 22(5) CPR) COM to approve amendment (procedure for OP modification – Art. 30(2) and (4) CPR)

Application of the performance framework : suspension of interim payments following the performance review (1) Serious failure to achieve milestone Only for financial and output indicators and key implementation steps Serious failure is due to clearly identified implementation weaknesses COM has previously communicated implementation weaknesses to MS (ex Art. 50(8)CPR): MS failed to take corrective action Suspension cannot be earlier than 5 months after such communication

Application of the performance framework : suspension of interim payments following the performance review (2) Serious failure - defined in CIR 215/2014 (Art. 6(3) and (4): If 2 indicators in the PF : any of the output or financial indicators or key implementation steps failed to attain at least 65% of the milestone value If more than 2 indicators in the PF: at least 2 of the output or financial indicators or key implementation steps failed to attain at least 65% of the milestone value Lifting of suspension when MS has taken corrective action

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