State of play of negotiations MFF, Regulations

The Multi Annual Financial Framework Legislative package Why? Created in 1988 to solve more than 10 years of institutional conflicts, budgetary imbalances, inadequacy of resources to cover growing needs How? Adoption of the MFF (Council regulation, endorsed by the EP) Commission: proposes Council adopts unanimously [Feb 2013] Parliament: gives its consent (N.B: extension of the existing MFF until adoption of the new MFF)

MFF 2014-2020 – Feb 2013 Main principles EU 2020 link – growth and jobs, result orientation, value added, simplification

Multi-annual Financial Framework 2014-2020 It covers 6 headings: 1 a Competitiveness for growth and jobs PSCI 1 b Economic, social and territorial cohesion ESF, FEAD, YEI 2 Sustainable growth: natural resources 3 Security and citizenship 4 Global Europe 5 Administration 6 Compensations Outside the MFF EGF

Multi-annual Financial Framework 2014-2020 How much money for the EU? COM proposal 1.047,7 bn € Nov. European Council 971,9 bn € Feb. European Council 959,988 bn € (908,4 bn € in appropriation for payment)

Multi-annual Financial Framework 2014-2020 Heading 1 B: Economic, social and territorial cohesion Proposed by COM 336 bn € Nov. European Council 320 bn € Feb. European Council 325 bn €

Heading 1B € 325.1 billion available (-8% in comparison to the current period) but includes: - Youth Employment Initiative (€ 6 billion budgetary line € 3 billion) - Fund for European Aid to the Most Deprived (€ 2.5 billion). Major changes compared to original Commission proposal: - Transition regions (-13%); - More developed Regions (-10%). - Less developed Regions (+1%) - Cohesion fund (-6%) as compared to the original Commission proposal. - Special allocations for outermost and sparsely populated regions (+51%), - European Territorial Cooperation (-24%) - special amounts to different regions amount to nearly € 10 billion. One point to be noted: Calls for an adequate share for the ESF

Implementation rules set in the MFF - No change in the co-financing rates - Initial pre-financing rate: 1%(1,5%) / 1% (1,5%) / 1% - Automatic de-commitment set at N+3 (COM is asked to explore ways to mitigate the risk of automatic recommitment for Romania and Slovakia for 2007-2013 funds) - Non-recoverable VAT under national legislation eligible - Macro-economic conditionality confirmed - Performance reserve 7% instead of 5% - Targets to be set. In case of failure possibility of financial corrections.

Additional reporting provisions - Yearly Commission summary report for the ESIF programmes (based on AIR) and synthesis of all available evaluations - 2 strategic reports during the programming period. - discussion in GAC every 2 years of implementation / results of the CSF Funds -> input to the Spring Council

State of Play of Negotiations CPR End of first reading: 20 Feb COREPER – PGA on the final blocks of the CPR – recitals, pending articles, transitional and final provisions 17 trilogues in the EP – programming finalised end of 2012; current discussions on CSF, territorial development, performance reserve and ex ante conditionalities, monitoring and evaluation, territorial development, thematic concentration

State of Play of Negotiations ESF End of first reading 20 Feb COREPER– deleted art.15 PBG 10 trilogues – programming articles 6-11 finalised last year; discussions on art. 3 Scope of the ESF

State of Play of Negotiations FEAD Two meetings in the SQWP Opinion of the EMPL Committee to be adopted 21 April

Multi-annual Financial Framework 2014-2020 Next steps: - Continuation of discussions including YEI - Position of the EP on the MFF -> Agreement on regulations

Thank you for your attention Questions