1. Annual Interreg meeting 06 June 2016 #EUBudget4Results 1

2. Outline 1.What is 'EU Budget Focused On Results'? 2.BFOR structure & main features 3.Simplification: ongoing work a)Simplification Scoreboard b)Revision of the Financial Regulation 4.BFOR Milestones for 2016 Simplification of the EU financial rules is part of the broader Budget Focused on Results (BFOR) initiative 2

3. 1. What is EU Budget Focused on Results? 2. HOW do we spend? More leverage of EU funds More simplification efforts BFOR Relevant for: Annual budget Discharge Mid-term review Post 2020 MFF 1. In WHICH areas do we spend? European public goods with higher EU added value of funds 3. How are budget implementation and performance ASSESSED? 4. HOW do we communicate? 3

4. BFORObjective & Progress In which areas do we spend? WS1. Simplification Diminish administrative burden (more simplified cost options, admin. simplification scoreboard and use of Financial instruments) WS2. Performance framework Support decision-making with meaningful performance information (Closer alignment to political priorities, Strategic and management planning, OECD cooperation) WS3. Cost-effectiveness of controls & WS4. Discharge Remove inefficient & ineffective controls and identify appropriate materiality thresholds which can be efficiently achieved (Common methodology and indicators, amount at risk: multiannual corrections and recoveries) WS5. EU Result Improve communication on policy outcomes by improving access to project data and results (EU results pilot phase 800+ projects, Conference 27/09) http://ec.europa.eu/budget/mycountry/index_en.cfm WS6: Outreach and communication Create awareness and shape attitudes How do we spend? How are budget implementation and performance assessed? How do we communicate? 2. BFOR structure 4

5. Simplification Set a level-playing field for different forms of support from the EU Budget Facilitate the uptake of Simplified Cost Options Cut red tape Flexibility Better alignment of spending priorities with its overarching policy objectives The 2017 budget: focus on political priorities and response to unexpected developments. L everage Single set of rules in case different forms of financing are combined in the same action Increase combination of EU funds indirectly managed by the Commission, European Structural and Investment funds, European Fund for Strategic Investments Main features #EUBudget4Results 5

6. Commission: use of Simplified Cost Options: yearly percentage and comparative change single access for beneficiaries: one web portal for all beneficiaries per policy area and e-governance shorthen time-to-pay: constant monitoring of performance fewer details and less burdensome controls: rely on practices by International Organisations, reduce ex post audits and financial viability checks 3. Simplification: ongoing work a. Simplification Scoreboard/1 #EUBudget4Results The Scoreboard monitors existing simplification initiatives at administrative level, both by the Commission and by Member States 6

7. 3. Simplification: ongoing work a. Simplification Scoreboard/2 #EUBudget4Results The Scoreboard monitors existing simplification at administrative level, both by the Commission and by Member States Member States – in line with recommendations of the High- Level Group on Simplification: use of Simplified Cost Options: share good practices, complete guidance, clarify pending issues (e.g. State aid) to increase use of SCOs (e.g.: EMPL→ up to 50% of the envelop) E-governance: no more paper for cohesion documents as of 2016, fully exploit potential, joint training Avoid "gold-plating" 7

8. Proposals for the future Single set of rules: Common principles + specific provisions where necessary Level-playing field: between different forms of support from the Union budget (FIs-grants-indirect implementation) Performance-based budgeting: a new (and additional) form of financing, not linked to costs but based on achievement of results measured through pre-defined milestones or indicators Simplify indirect management: rely on ex ante assessment rather than ex post controls, single set of rules, harmonising reporting 3. Simplification: ongoing work b. Revision of the Financial Regulation/1 #EUBudget4Results 8

9. Proposals for the future Multiannual financing decisions: single document with the multi-annual work programme Increase use of simplified cost options: lump sums, flat rates and unit costs authorised by the AOD expert judgement for methodology to set the value of SCOs payments linked to achievement of outputs, where possible 3. Simplification: ongoing work b. Revision of the Financial Regulation/2 #EUBudget4Results 9

10. Proposals for the future Facilitate use of financial instruments: Harmonisation treatment of reflows Statistical data on final recipients 5-years record-keeping Streamlined reporting: On financial instruments, 3 reports merged into 1 Grouped in two main moments (Draft budget and discharge) 3. Simplification: ongoing work b. Revision of the Financial Regulation/3 #EUBudget4Results 10

11. Omnibus Regulation: targeted amendments of sectoral regulation to remove simplification bottlenecks ; put deeds to words Better combination of instruments whether indirectly managed or under European structural and investment funds (ESIFs) with European Fund for Strategic Investments (EFSI) Single set of rules instead of several sets of rules Extending and facilitating use of simplified grants Reduce administrative burden and promote e-administration 3. Simplification: ongoing work c. Omnibus Regulation #EUBudget4Results 11

12. 4. BFOR Milestones for 2016 Draft Budget 2017 Proposal for the Revision of the Financial Regulation and Omnibus (public consultation just closed) Mid-term review of the MFF Communication on Mid Term Review and BFOR, including the Administrative Simplification Scoreboard Conference BFOR, 27 September 2016 12

13. EU Budget EU Budget: http://ec.europa.eu/budget/index_en.cfmhttp://ec.europa.eu/budget/index_en.cfm EU Results: http://ec.europa.eu/budget/euprojects/http://ec.europa.eu/budget/euprojects/ Budget Focused on Results – Conference: http://ec.europa.eu/budget/budget4results/programme/index_en.cfm http://ec.europa.eu/budget/budget4results/programme/index_en.cfm EU annual budget life-cycle: http://ec.europa.eu/budget/annual/index_en.cfm http://ec.europa.eu/budget/annual/index_en.cfm EU Budget in my country: http://ec.europa.eu/budget/mycountry/index_en.cfm http://ec.europa.eu/budget/mycountry/index_en.cfm Public consultation on the revision of the Financial Regulation applicable to the general budget of the Union: http://ec.europa.eu/budget/consultations/index_en.cfm http://ec.europa.eu/budget/consultations/index_en.cfm 13

14. Thank you! 14