1. State of play of negotiations MFF, Regulations

2. The Multi Annual Financial Framework
Legislative package
Why?
Created in 1988 to solve more than 10 years of institutional conflicts, budgetary imbalances, inadequacy of resources to cover growing needs
How? Adoption of the MFF (Council regulation, endorsed by the EP)
Commission: proposes
Council adopts unanimously [Feb 2013]
Parliament: gives its consent
(N.B: extension of the existing MFF until adoption of the new MFF)

3. MFF 2014-2020 – Feb 2013 Main principles
EU 2020 link – growth and jobs,
result orientation,
value added,
simplification

4. Multi-annual Financial Framework 2014-2020
It covers 6 headings:
1 a Competitiveness for growth and jobs PSCI
1 b Economic, social and territorial cohesion ESF, FEAD, YEI
2 Sustainable growth: natural resources
3 Security and citizenship
4 Global Europe
5 Administration
6 Compensations
Outside the MFF EGF

5. Multi-annual Financial Framework 2014-2020
How much money for the EU?
COM proposal ,7 bn €
Nov. European Council ,9 bn €
Feb. European Council ,988 bn €
(908,4 bn € in appropriation for payment)

6. Multi-annual Financial Framework 2014-2020
Heading 1 B: Economic, social and territorial cohesion
Proposed by COM bn €
Nov. European Council bn €
Feb. European Council bn €

7. Heading 1B
€ billion available (-8% in comparison to the current period) but includes:
- Youth Employment Initiative (€ 6 billion budgetary line € 3 billion)
- Fund for European Aid to the Most Deprived (€ 2.5 billion).
Major changes compared to original Commission proposal:
- Transition regions (-13%);
- More developed Regions (-10%).
- Less developed Regions (+1%)
- Cohesion fund (-6%) as compared to the original Commission proposal.
- Special allocations for outermost and sparsely populated regions (+51%),
- European Territorial Cooperation (-24%)
- special amounts to different regions amount to nearly € 10 billion.
One point to be noted: Calls for an adequate share for the ESF

8. Implementation rules set in the MFF
- No change in the co-financing rates
- Initial pre-financing rate: 1%(1,5%) / 1% (1,5%) / 1%
- Automatic de-commitment set at N+3 (COM is asked to explore ways to mitigate the risk of automatic recommitment for Romania and Slovakia for funds)
- Non-recoverable VAT under national legislation eligible
- Macro-economic conditionality confirmed
- Performance reserve 7% instead of 5%
- Targets to be set. In case of failure possibility of financial corrections.

9. Additional reporting provisions
- Yearly Commission summary report for the ESIF programmes (based on AIR) and synthesis of all available evaluations
- 2 strategic reports during the programming period.
- discussion in GAC every 2 years of implementation / results of the CSF Funds -> input to the Spring Council

10. State of Play of Negotiations
CPR
End of first reading: 20 Feb COREPER – PGA on the final blocks of the CPR – recitals, pending articles, transitional and final provisions
17 trilogues in the EP – programming finalised end of 2012; current discussions on CSF, territorial development, performance reserve and ex ante conditionalities, monitoring and evaluation, territorial development, thematic concentration

11. State of Play of Negotiations
ESF
End of first reading 20 Feb COREPER– deleted art.15 PBG
10 trilogues – programming articles 6-11 finalised last year; discussions on art. 3 Scope of the ESF

12. State of Play of Negotiations
FEAD
Two meetings in the SQWP
Opinion of the EMPL Committee to be adopted 21 April

13. Multi-annual Financial Framework 2014-2020
Next steps:
- Continuation of discussions including YEI
- Position of the EP on the MFF
-> Agreement on regulations

14. Thank you for your attention
Questions