STRUCTURAL FUNDS MANAGEMENT IN GREECE: The experience of the Management Organisation Unit of the CSF Presented by: Dex. Agourides Director General M.O.U. S.A.

THE GREEK ENVIRONMENT at a glance Greece is a peripheral EU country with no common land borders with other Member States. The major weaknesses of the Greek economy are:  Infrastructure deficits, especially in the fields of transport, environment and in urban areas  Unemployment rate above the EU average  High share of employment in agriculture  Low productivity (Deficits in R&D, skilled workforce and business investment)  Telecommunications sector lagging behind The macroeconomic environment has improved significantly since the entry of Greece in the EMU in 2001 GDP per capita in 2003: 81% of EU25

THE GREEK CSF The whole of the Greek territory qualifies as Objective 1 Region under the Structural Funds. There are 7 areas of intervention and 24 Operational Programmes (11 national and 13 regional). Key priorities:  Infrastructure 56,5%  Support to the private sector 21,9%  Human resources development 19% For the period , EU structural assistance to Greece amounts to a total of EUR 28 billion (Objective 1, Community Initiatives, Cohesion Fund) Commitments in June 2005 (projects approved): 74% of total budget

STRUCTURAL FUNDS MANAGEMENT The regulations governing the operation of the Structural Funds resulted in a major transfer of responsibility to the Member States while stricter conditions for financial management were put in place. The new regulatory framework was designed: To improve effectiveness, transparency and sound financial management To increase decentralisation In practice, however, the new system encountered a number of difficulties in Member States: Tight regulatory requirements, too demanding and affecting implementation of projects and programmes Lack of flexibility in applying procedures

MANAGING THE STRUCTURAL FUNDS IN GREECE CSF interventions and the tight regulatory measures required the establishment of:  efficient implementing bodies  sound financial management at every level of Government. A series of reforms in public expenditure management in Greece was introduced by law, incorporating detailed implementation procedures. However, several difficulties were encountered in the process of adopting the new implementation and monitoring system, such as:  Incompatible national systems with Community regulations  Serious inflexibilities and inefficiencies in the civil service structure  Inadequate coordination between government departments  Lack of specialised human resources and know-how  Multitude of weak and inefficient Final Beneficiaries  Technological gaps  Cumbersome procedures delaying implementation

WHY MOU? MOU s.a. was established as a support mechanism in order to:  Tackle problems identified during the implementation of the CSF  Fill specific know-how gaps  Strengthen the administrative and management capacity of CSF implementing bodies  By-pass the rigid administrative procedures and inflexibilities of the Greek Civil Service The MOU was established:  To complement and not substitute civil-service tasks

IDENTITY  Non-profit making institution  Operates under the auspices of the Ministry of Economy and Finance but  External Agency (Societé Anonyme)  Governed by a 9-member Board of Directors  Staffed by highly qualified personnel recruited from both the private and public sector

THE MOU’s ROLE IN CSF MANAGEMENT The MOU has played a vital role in the setting up of the CSF management structure:  Selection and recruitment from the private sector of a total of 830 specialists for the staffing of 40 Managing Authorities and other bodies.  Deployment of five Expert Teams to support final beneficiaries with management weaknesses (“flying consultants”)  Elaboration of numerous management systems and tools  Implementation of intensive training programmes for CSF staff  Procurement of state-of-the-art office equipment and modern infrastructure facilities for Managing Authorities  Establishment and management of information technology systems  Study and preparation of innovative management systems in view of the next programming period

DEPLOYMENT The MOU’s work force to date: 830 people seconded to the MA’s staff the Central Unit in Athens deployed with the Expert Teams (Flying Consultants)

VALUE-ADDED It is a unique agency combining qualified experts from both the private and public sector New cultural aspect in public administration: pilot The MOU is widely recognised as a model, flexible and efficient structure: It provides quality technical assistance Modernisation of public structures It is able to timely respond to a number of urgent needs and demands Flexibility, efficiency & immediate response