I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A Managing Structural Funds The Demand for Change The case of Hungary Lessons & Changes Peter Heil, Ph.D. Vice President National Development Agency Bucharest, December 2006

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A Topics Hungary - a success story? The demand for change… –Programming Framework –Institutions Lessons summarised…

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A Hungary - a Success Story?

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A NDP 1 - Financial Performance

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A NDP 1 – The N+2 rule

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A Overall Balance Sheet Major step towards strategic development policy Good overall financial performance Reaching all regions and social groups Increasing number of real success stories Little information on actual impact Excessive focus on „regularity” Very lengthy procedures Lack of customer focus + -

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A The demand for change Programming Framework

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A Strengthening regional and local potential NDP Long-term objective Improving the quality of life Reducing the income gap relative to EU average More economic competitiveness Improving the use of human resources Better environment and more balanced regional development Economic Competitiveness OP Improving the competitiveness of the productive sector Increasing employment and the development of human resources Providing better infrastructure and cleaner environment Priorities Operational Programmes Specific objective Technical Assistance Agricultural and Rural Development OP Development of Human Resources OP Environment Protection and Infrastructure OP Regional Development OP NDP I objectives

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A Support Schemes Non-refundable grants –Key projects without competition –Open competition

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A Objectives Increased employment –Employability and activity of workers –Job creation –Improved functioning of labour market mechanisms Sustainable growth –Competitiveness – Lisbon –Territorial cohesion –Improved framework (legal, administrative) Horizontal objectives –Sustainability (environment, economic & social balance) –Equal opportunities (cohesion, social justice)

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A Support Schemes Non-refundable grants –Key projects without competition –Restricted competition –Open competition –Normative support schemes Refundable grants Guarantee Funds Risk Capital Funds

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A Comparison - Programming Complex structure of objectives Small number of complex Ops Simple toolbox – varied procedures More straightforward set of objectives More OPs, but simpler Regions on the march Richer toolbox – standard procedures

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A The demand for change Institutions

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A Institutions ( ) ManagingAuthorityManagingAuthorityManagingAuthorityManagingAuthorityManagingAuthority CSFAuthorityPayingAuthority GOVERNMENT(Ministers) IBIBIB IB IB IB IB IB IBIBIB

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A Institutions ( ) ManagingAuthorityManagingAuthorityManagingAuthorityManagingAuthorityManagingAuthorityCSFAuthority CertifyingAuthority GOVERNMENT(Ministers) IBIBIBIBIBIBIB AuditAuthority Steering Comm. f.D.P. National Council f.D.P. National Development Agency

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A Comparison - Institutions Focus on OP level Independence of ministries MAs with both strategic and implementation tasks Complex MA – IB relations Reluctance to address wider legal environment Priority of government strategy Focus on co-ordination MAs focussing on strategy – IBs with more autonomy Standardisation of implementation Focus on performance State reform

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A Lessons at a Glance

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A Lessons at a glance Need for strong co-ordination –… starts with planning (akciótervek) –… requires clear management relationships „Responsibility” and tasks to be well defined –Towards the EU  Member State –Strategic, programme level  Managing Authority –Financial  grant manager –  Provide for performanc-based incentives !!! Simplify & Standardise! –Common management rules –Standard types for support schemes –Think of the beneficiary –Decentralise management –Do not forget the wider legal environment

I N S T R U M E N T E S T R U C T U R A L E I N R O M A N I A Thank you for your attention! And Good Luck!