Group of the Progressive Alliance of Socialists & Democrats in the European Parliament CONT Round Table Brussels, 9 December 2010 Room - 3H1 Shaping the Financial Regulations to serve our political goals Filippo Addarii on behalf of Civil Society Working Group on EU funding S&DS&D

Index: 1.Coalition 2.The story in a nutshell 3.Improvement in the Commissions proposal 4.Priority changes in the proposal 5.Other changes in the proposal 6.Clarification on new points 7.On tenders 8.Points not included in the proposal 9.Final recommendation

1. Coalition Over 40 European networks, platforms, federations, foundations and think-tanks including Solidar, Social Platform, Eu. Policy Centre, Eu. Volunteer Center, Ass. Local Democracy Agency, Eu. Academy Berlin, Network Eu. Foundations, EU Net Focus on grants (operating costs and projects) Ultimate goal: –an effective use of European resources –better return on investment for EU and Civil Society –through simplification of regulation and flexibility for innovation

2. The story in a nutshell First attempt: Striking the Balance 2005 Euclid independent consultation summer 2009 Civil Society Working Group set up in Sept 09 CSWGs answer to Public consultation Dec 09 Commissions Proposal submitted may 2010 CSWGs policy paper for Parliament and Council launched in September 2010

3. Improvements in the Commissions proposal Non profit rule: Surplus can be reinvested before the end of the first quarter of this following year (1525/2007 Art. 1,p.118) but just for political parties In kind contribution: the grant can represent 100% of eligible costs if co financing by beneficiary is provided in kind or through ineligible cost Lump sums/flat rates (Art 109) simplified, maximum threshold abolished and amounts set up depending on the nature of the programme. lump sums 4 specific tasks.

3. Improvements in the Commissions proposal Bank guarantees not mandatory: FR deleted Low value grants: less administrative requirements & increased threshold (from EUR 25,000 to EUR 50,000) Payment of interest on pre-financing removed Art.81+ (10) Simplification of regulation on cascading grants (re-granting) now allowed Art. 120

4. Priority changes in the proposal Contribution in kind In kind contribution in co-financing: MUST be recognized as eligible costs (cf. IR art.165a. 2 and art. 172) Non profit rule: Operating Grants -need to differentiate between surplus and profit, and give the possibility to not-for-profit grantees to reinvest the surplus in the mission and build reserves (cf. IR art. 165)

5. Other changes in the proposal Double ceiling: ceiling of the grant to be determined as a total only - not as a percentage (cf. FR art. 108.a) Project grants: the 7% cap has to be increased up to 15 – 20% (cf. IR art.181.4) Operating grants: indirect costs to be claimed when degressivity rule comes into force (art. 113 FR)

6. Clarification on new points Systemic error: new regulation to be clarified considering risk of unintended consequences (cf. FR art. 53b and IR art. 47.4) Tolerable risk of error: to be clarified in its application (cf. FR art. 28b)

7. On tenders Competition for tenders: to add CSOs to the list of exceptions that can be excluded from the competition procedure (cf. IR 123.2) Negotiation procedure without a prior publication of a contract notice: to apply the procedure to CSOs too (cf. IR 126) Negotiated procedure with a single tender: the scope of the CSOs should be broader, including all the different kind of CSOs (cf. IR 242.1)

8. Points not included in the proposal Creation of a register/database for applicants –Information & Transparency for EU and public –Shortening application timelines Consistency across services (DGs) Authorising Officer choice of modalities Level of co-financing (Art. 108 FR and Art d.i IR) Timing of award (Art. 112 FR) Auditing

9. Final recommendation To make an assessment of the implementation of the FR and IR, addressing in particular (in) consistency of implementation across services; possible improvements to solve current issues, including guidance

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