1. Simplification in ESI funds for 2014-2020
Moray Gilland
Head of the Better Implementation Unit
DG Regional and Urban Policy
Brussels, 6 June 2016 1

2. EU Cohesion Policy 2014-2020: 1/3 of the EU budget
The reforms agreed for the period are designed to maximise the impact of the available EU funding.
€1 082 billion
OVERALL EU BUDGET
Other EU policies
Agruculture
Research
External
Etc.
€730.2 billion
67.5%
32.5%
€351.8 billion
COHESION POLICY
GROWTH
Smart
Sustainable
Inclusive
Cohesion Policy
delivers
Europe 2020 Strategy

3. Why has it become so complicated?
Increasing size of rules period on period to reflect the increased sophistication of the policy
– want to do more with the policy.
Responding to findings of the Court of Auditors, for example on financial instruments to avoid "parking" of funds.
Too many layers of EU and national rules ('goldplating').

4. 1. A set of common rules applicable to the five ESI Funds in the Common Provisions Regulation Greater thematic concentration Better focus on results.
New provisions for

5. 4. Simplified cost options (Article 67 CPR). 5
4. Simplified cost options (Article 67 CPR) E-cohesion (Article 122(3) CPR) Increased proportionality in relation to reporting, evaluation, management and control.
New provisions for

6. Maximising the potential of simplification options in 2014-20
Independent High Level Group on monitoring of simplification for beneficiaries making recommendations on how the uptake of simplification opportunities for beneficiaries could be improved for period.
Recommendations already on e-Governance and Simplified Costs.
Recommendation due in June on Financial Instruments and access to EU Funds for SMEs.
Study on simplification to assess the take up of the new provisions in the regulations for has been launched and will produce final results by the end of 2016.

7. HLG recommendations on E-Governance
Help Member States in the next period with a common platform across the ESI Funds to provide a consistent approach for beneficiaries to audit issues and information technology
Reduce the number of programmes, and therefore the number of different operating systems
Need for a more consistent approach to audit and clarification on acceptability of electronic documents for all funds and ensuring there is agreement from all relevant audit bodies
Encourage a partnership approach to e-Governance with assistance provided to Member States and managing authorities

8. Standard scales of unit costs Simplified Cost Options
Lump sums
Flat rate financing

9. SCOs: General principles
Optional
Must be a reliable proxy of real costs
Must be established ex ante; often through a fair, equitable and verifiable method
Not possible for operations/projects implemented exclusively through public procurement
Can be copied from other EU policies (Horizon2020, LIFE, AMIF) and from national methods, for similar operations/beneficiaries

10. Constraints for the use of SCOs
Understanding of the provisions / legal uncertainty
Compliance with state aid
Alignment of audit approach with simplification objectives
Initial workload to design SCOs
Lack of experience and information/historical data
Heterogenity of the operations co-financed by the ERDF

11. HLG recommendations on Simplified Cost Options
Commission needs to ensure that barriers and uncertainties around their use, especially in terms of conflicts with other EU rules such as state aid, are clarified by legislative changes if needed.
More support is needed for programme authorities and to give them up-front assurance of their SCO schemes by opening up the possibilities already contained in Article 14 of the ESF regulation and/or providing a fast track approval of methodologies developed by programme authorities.
Legislative changes may be needed to remove some of the restrictions that complicate the use of SCOs and make flat rates currently possible for some funds available to all.

12. The Commission will continue to promote the use of SCOs
Follow the work of the High Level Group to advise on further reduction of administrative burden
Consider regulatory changes to further extend the use of SCOs - eg: ongoing Commission proposal for modification of the General Block Exemption Regulation to clarify the compatibility of SCOs with state aid
Participation in events, seminars etc
Update the Guidance on SCOs
Finalise the "INTERACT 55 Questions"
Provide answers to many one-off questions from programmes

13. Continuing the discussion online
The Simplify ESIF platform allows you to share your experiences, present your ideas, engage with other stakeholders, and help us reach a more effective and efficient management of the funds.

14. Thank you