1. 1 European Union Regional Policy – Employment, Social Affairs and Inclusion Commissions proposal for incentives and conditionality in 2014-2020 Open Days Workshop on Incentives and conditionalities Brussels, 11 October 2011 Nicholas Martyn Commissions proposal for incentives and conditionality in 2014-2020 Open Days Workshop on Incentives and conditionalities Brussels, 11 October 2011 Nicholas Martyn Deputy Director-General Directorate-General for Regional Policy

2. 2 European Union Regional Policy – Employment, Social Affairs and Inclusion Aim of the Commissions proposal Increase the effectiveness of the policy Address various determinants of performance Target setting and monitoring Strategic, regulatory and institutional frameworks Macroeconomic environment Draw on consultations with stakeholders

3. 3 European Union Regional Policy – Employment, Social Affairs and Inclusion Target-setting: performance framework Set clear targets and milestones Set aside 5 % of financial resources allocated to each CSF Fund Undertake a performance review in 2017 and 2019 Decide on allocation of the reserve

4. 4 European Union Regional Policy – Employment, Social Affairs and Inclusion Ex-ante conditionality Ex-ante conditionalities and criteria for fulfilment defined in Annex to the Regulation Member States undertake assessment of fulfilment If necessary, Member States lay down actions and timetable for implementation in Partnership Contracts and programmes Commission verifies the assessment during negotiations on the Partnership Contracts and programmes

5. 5 European Union Regional Policy – Employment, Social Affairs and Inclusion Macroeconomic conditionality Establish tighter link with EU economic governance Commission may request Member States to propose amendments to Partnership Contract and programmes in case of specific economic circumstances Failure to implement Council recommendations adopted in relation to excessive deficit, excessive imbalances or to economic adjustment programmes may result in suspension of payments and commitments.