1. European Union Funds 2007-2013 European Union Funds for growth and development Andžs Ūbelis Deputy State Secretary Ministry of Finance EU Structural Funds and Cohesion Fund Operational Programmes Shadow Monitoring Committee 2/12/2005

2. Structural Funds Managing Authority – Ministry of Finance 2 Contents  The EU funds management framework  Planning documents  Institutional system for the implementation of the EU funds  Timeline  Topics for discussion

3. Structural Funds Managing Authority – Ministry of Finance 3 Contents  The EU funds management framework  Planning documents  Institutional system for the implementation of the EU funds  Timeline  Topics for discussion

4. Structural Funds Managing Authority – Ministry of Finance 4 The EU funds management system Concept paper  The SF and the CF planning and management system in Latvia from 2007 to 2013, including: institutional framework (concentrated model vs deconcentrated model) the basic framework for planning documents (the number of operational programmes and their basic themes) timelines for drafting planning documents

5. Structural Funds Managing Authority – Ministry of Finance 5 The EU funds management system Concentrated model  Comprises: uniform requirements for the management of all funds (smaller number of regulatory enactments) continuity and succession of the current SF management system better intersectoral coordination and conformity to budgetary planning resource optimisation

6. Structural Funds Managing Authority – Ministry of Finance 6 Contents  The EU funds management framework  Planning documents  Institutional system for the implementation of the EU funds  Timeline  Topics for discussion

7. Structural Funds Managing Authority – Ministry of Finance 7 Planning documents Contents  Community Strategic Guidelines (CSG)  National Development Plan (NDP)  National Lisbon Programme of Latvia (NLPL)  National Strategic Reference Framework (NSRF) and Operational Programmes (OP)

8. Structural Funds Managing Authority – Ministry of Finance 8  Attraction strategy of the SF and the CF 2007-2013  A link with national policy planning documents – NDP, NLPL etc.  A link with the EU policies – Lisbon and Gothenburg Strategies, CSG etc. Planning documents NSFD - functions

9. Structural Funds Managing Authority – Ministry of Finance 9 Planning documents NSFD - structure Analysis of the current situation and SWOT Strategy Descriptions of operational programmes and financial tables SF/CF management and coordination mechanisms

10. Structural Funds Managing Authority – Ministry of Finance 10  Focus on Latvian problems that could be solved by the SF and the CF  The policy planning cycle of Latvia does not extend to 2013  A weak investment planning culture – inability to substantiate needs, lack of policy evaluation Planning documents NSFD – development constraints

11. Structural Funds Managing Authority – Ministry of Finance 11 Planning documents NSFD SWOT - challenges to growth  Risks of labour force deficit and quality incompliance  Slow transformation into a knowledge-based economy – dominant labour-intensive and low-added-value sectors  Formation of the information society – the slowest in Europe  Degradation of public infrastructure and low quality of services  Increasing disparity of regional development  Low administrative capacity

12. Structural Funds Managing Authority – Ministry of Finance 12 Planning documents NSFD - strategy Growth – based on knowledge and the individual I Human resource development and effective use thereof II Increasing competitiveness and transformation into a knowledge- intensive economy III Improvements to public services and infrastructure Balanced territorial development and macroeconomic stability Long-term development and equal opportunities Information society

13. Structural Funds Managing Authority – Ministry of Finance 13  I “Human Resources and Employment”, ESF OP 10% of the total funding Assistance provided in the following areas – employment, education, social inclusion, administrative capacity  II “Innovations and Entrepreneurship”, ERDF OP 20% of the total funding Assistance provided in the following areas – science and research, innovation, business competitiveness, availability of funding  III “Infrastructure and Services”, ERDF/CF OP 70% of the total funding Assistance provided in the following areas – transport, environment, energy, ICT, cultural and historical heritage, social infrastructure, infrastructure for polycentric development Planning documents Operational Programmes

14. Structural Funds Managing Authority – Ministry of Finance 14 Contents  The EU funds management framework  Planning documents  Institutional system for the implementation of the EU funds  Timeline  Topics for discussion

15. Structural Funds Managing Authority – Ministry of Finance 15 OP – infrastructure and public services ERDF/CF OP - development of entrepreneurship ERDF OP – development of human resources ESF OP Managing Authority – MoF OP Monitoring Committee MoT – transport infrastructure, telecommunications MoES –educational and scientific infrastructure MoEnv– environmental infrastructure MoW– social infrastructure MoH– health infrastructure MoE– energy, tourism MoC– cultural and historical heritage MoRDLG – development of regions SoMoSAfEGA– E-government and information society MoE – entrepreneurship, innovations MoES– science, research MoW – employment, social inclusion MoES – education, training, life-long learning, availability of education State Chancellery – administrative capacity National Strategic Reference Framework – coordinating institution – Ministry of Finance CFCA, SRDACFCA, LIDASEA, VEDA, CFCA

16. Structural Funds Managing Authority – Ministry of Finance 16 The EU funds management system Partnerships and coordination  Bilateral and multilateral consultations with social partners, NGOs, representatives from municipalities and the private sector  SF and CF Monitoring Committee: a practical partnership and coordination mechanism among parties involved in the management of the SF/CF – MA, IB, PA, AI, CB, implementing agencies, URLG, regions, social partners and NGOs  Coordination of OP and other financial instruments Managing Authority – ensures coordination of OP other financial instruments Division of OP by the area of intervention – ERDF entrepreneurship and small- scale infrastructure, CF – large-scale infrastructure, ESF – human resources Complementarity and preventing cross-overs with the European Agricultural Fund for Rural Development and European Fisheries Fund at the level of their monitoring committees Coordination with the NDP: extensive partnerships in the preparation of the main planning document of Latvia

17. Structural Funds Managing Authority – Ministry of Finance 17 Contents  The EU funds management framework  Planning documents  Institutional system for the implementation of the EU funds  Timeline  Topics for discussion

18. Structural Funds Managing Authority – Ministry of Finance 18  Shadow Monitoring Committee: Establishment and commencement of activities – 02/12/2005  NSRF: Consulting line ministries: 18/10 – 20/12/2005 Draft prepared – 16/11/2005 Public consultation: 16/11 – 09/12/2005 Consultations and approval: Meeting of State Secretaries – 17/11/2005, objections, proposals - by 02/12/2005 Monitoring Committee – 02/12/2005 Cabinet of Ministers – 20/12/2005 Submission to the EC – by 13/01/2006 Consultations with the EC: 01 – 02/2006 Submission to the Cabinet of Ministers for Approval – 03/2006 Timeline

19. Structural Funds Managing Authority – Ministry of Finance 19 Timeline  Developing OP: Conditions and instructions for developing OP – Monitoring Committee 02/12/2005 3 draft OPs developed – 20/02/2006 A decision on division of functions between the intermediary body and the agency– 20/02/2006 Public consultation: 20/02 – 20/03/2006 Consultation with the EC: 04 – 06/2006 Consultations within the EC among various services: 09 – 11/2006 Submission to the EC for approval – 11/2006 Submission to the Cabinet of Ministers for approval – 11/2006 Drafting a system description: 12/2006  Information and publicity strategy: Development: 11 – 12/2006

20. Structural Funds Managing Authority – Ministry of Finance 20 Timeline  Draft law on the management of the SF and the CF: Drafting: 12/2005 – 09/2006 Cabinet of Ministers– 01/09/2006  Secondary regulatory enactments: Drafting: 07 – 10/2006 Cabinet of Ministers– 01/11/2006  Institutional system: Developing internal procedures: 09 – 11/2006 Accreditation – system audit: MA, IB, CB: 11 – 12/2006  Attracting the SF and the CF funding: Commencement: 02/01/2007

21. Structural Funds Managing Authority – Ministry of Finance 21 Thank you!

22. Structural Funds Managing Authority – Ministry of Finance 22 Contents  The EU funds management framework  Planning documents  Institutional system for the implementation of the EU funds  Timeline  Topics for discussion

23. Structural Funds Managing Authority – Ministry of Finance 23 Topic for discussion  What are the topical needs of Latvia that may be financed by the Structural Funds and that are not covered by the current NSRF?  Are the contents of OP optimal in the current NSRF? Why?  Does the proportion of funding available under each OP promote the achievement of objectives set in the NSRF strategy?