(Dr. Peter Heil, ALTUS – Hungary) Establishing systems and administrative capacity for the effective use of EU funds The importance of capacity building in the pre-accession phase NEW OPPORTUNITIES AND NEW CHALLENGES IN THE PROCESS OF ACCESSION NEGOTIATIONS OF SERBIA WITH THE EUROPEAN UNION Belgrade, December 9th, 2014 (Dr. Peter Heil, ALTUS – Hungary)

Agenda Cohesion policy – an overview New developments for 2014-2020 The challenge of preparations

Cohesion Policy – an Overview

3 starting messages Chapter 22 is not (only) about EU funds – but also about all national development policies Preparations should start as early as possible - it is not too early now IPA is only one piece of the puzzle – and does not prepare for everything

Mission (Art. 174-175 TEU) In order to promote its overall harmonious development, the Union shall develop and pursue its actions leading to the strengthening of its economic, social and territorial cohesion. In particular, the Union shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions. Member States shall conduct their economic policies and shall coordinate them in such a way as, in addition, to attain the objectives set out in Article 174. (…) The Union shall also support the achievement of these objectives by the action it takes through the Structural Funds (…) the European Investment Bank and the other existing Financial Instruments.

The EU’s main investment policy € 350 billion from Brussels € 450 billion with co-financing

Main elements Legal framework Institutional framework Administrative capacity Programming Monitoring and evaluation Financial management and control

Main elements Legal framework Development planning Partnership and multi-level governance National budget Public Procurement State aid Horizontal issues sustainable development Equal opportunities and non-discrimination (…)

Main elements Institutional framework Administrative capacity Authorities to manage programmes Intermediate bodies to implement Financial control institutions Administrative capacity Substantial human resources Skilled, trained and motivated staff

Main elements Programming National development plan – cross-sectoral Sector strategies (Regional and) local development plans Policy Strategy Plan Projects

Main elements Monitoring evaluation Financial management Target setting Follow implementation, intervening if needed Tracking results, learning from practice Financial management Transparency of management Efficiency of administration

New developments 2014-2020

2014-2020 IPA Cohesion policy Maintain focus on accession as well as development More strategic, better targetted support Leverage other funds New instruments Flexibility Contribute to EU 2020, concentrate funds Focus on results Improved co-ordination Innovative instruments Streamlined administration Concentrate all resources promoting a common agenda

The Challenge of preparations

Challenges Complex policies and processes to master Significant new capacity needed Need to introduce far reaching reforms In policy planning Policy co-ordination State administration Financial management Need to prepare future beneficiaries

How to go about it? Do not wait – push your own agenda Set up your team EU accession co-ordinators IPA management bodies Ministry of Finance Development policy units Financial controllers Key local governments Have a strategy Mapping funds; mapping capacities; institution building; capacity building; programming; running pilot schemes; preparing key projects Think about the big picture, too Be ready for change

Thank you for your kind attention! Peter HEIL HUNGARY heil@altus.hu Belgrade, 8th December 2014.