Summary of the Presidency to the Council of the European Union of TRIO: Denmark, Poland and Cyprus Cohesion policy Brussels, 31 January, East Poland House Krzysztof Kasprzyk Permanent Representation of Poland to the EU

 Trio background and preparations negotiations timetable working method connection with MFF  Results on the Council’s side Council’s position on all essential elements key improvements  Programming – agreement with the European Parliament  Summary Content

Trio background and the beginning… Poland – the biggest beneficiary of the Cohesion Policy, Denmark – one of the „net payers” and Cyprus – a small Member State strongly affected by Greek crisis… Different approaches – numerous conferences and high- level discussion on the „big picture” and concepts during Polish Presidency, the very focused Danish Presidency, and a mix of the 2 under the Cyprus Presidency… Different stages of negotiations of the package: the exploratory phase under Polish Presidency culminating in the cohesion ministers discussing the direction at GAC, Council negotiations of the most difficult blocks under Danish Presidency, and the first successfully wrapped-up trilogue under Cyprus…

Common methodology Background: a complex proposal from the Commission, presented later than expected, with strong MS positions affected by implementation issues in period The legislative package split into self-containing blocks – with the commitment of all trio members not to reverse the previous agreements despite the rule that „nothing is agreed until everything is agreed” Separation of issues connected to multi-annual financial framework Focus on programming and issues which need to be addressed not to delay the implementation Honest but careful co-operation with the Commission with openness and capacity to develop own, alternative ideas

Key results on the Council’s side STRATEGIC PROGRAMMING  More results-based programming, as well as: strong EU2020 focus greater flexibility allowing for combination of funds and categories of regions some parts do not need Commission’s approval to be changed common partnership agreement covering also rural development and fisheries funds More demanding, but with clearer intervention logic, focus and responsibility.

Key results on the Council’s side THEMATIC CONCENTRATION  More transparent, structured approach based on pre- defined thematic objectives and investment priorities as well as: ICT, sustainable urban transport promoted, earmarks kept, but aligned with result-based approach (all Funds contributing taken into account) more flexibility for phasing-out and transition regions (if the transition category accepted under MFF), in particular possibility to finance basic infrastructure. more flexibility for ETC

Key results on the Council’s side INCREASING EFFECTIVENESS  Ensuring better spending and improving effectiveness: ex-ante conditionality strictly linked to measures receiving support with a pre-defined list of necessary conditions for effectiveness, with responsibilities reflecting specific institutional structures a workable performance framework focused on rewards rather than penalties new approach to interim payments ensuring lower error rates without negative consequences for cash flows (annual advances)

Key results on the Council’s side INCREASING LEVERAGE  Facilitating use of financial instruments and PPPs: clearly defined ex-ante conditions, aligned with market practice and written in co-operation with financial experts, specific provisions for PPPs and venture capital removing barriers to their effective use reduction of administrative burden on final recipients so that the instruments become an attractive alternative to grants more flexible rules on combination of grants and loans

Key results on the Council’s side SIMPLIFICATION  Several options introduced to facilitate implementation: flat rates for revenue generating projects more use of simplified costs, joint action plans independent quality review of major projects and assistance of independent experts as an alternative to ex-post assessment by the Commission possible merger of managing and certifying authority flexible rules for technical assistance in multi- category or multi-Fund environment

Agreement on programming  Trilogue finished in December, all 3 institutions agreed on the structure and contents of key documents: the partnership agreement and the operational programmes  The document was finally declassified on 28 January and is available on-line (number: 17666/2/12 REV2)

Summary Very fast and effective process with significant improvements to the original Commission’s proposal minimizes the risk of delays in implementation of thanks to: -

Thank you for your attention! Krzysztof Kasprzyk Permanent Representation of Poland to the EU