1. 1 European Union Regional Policy – Employment, Social Affairs and Inclusion The new architecture for cohesion policy post-2013 High-Level Meeting on the Future Cohesion Policy Budapest, 1 April 2011 Nicholas Martyn The new architecture for cohesion policy post-2013 High-Level Meeting on the Future Cohesion Policy Budapest, 1 April 2011 Nicholas Martyn Deputy Director-General Directorate-General for Regional Policy

2. 2 European Union Regional Policy – Employment, Social Affairs and Inclusion Principles for the EU budget The EU Budget Review of 19 October 2010: Delivering key EU priorities European added value Results-driven budget Mutual benefits through solidarity

3. 3 European Union Regional Policy – Employment, Social Affairs and Inclusion Main drivers of cohesion policy post-2013 The Fifth Cohesion Report of 9 November 2010 Enhancing the European added value of cohesion policy Strengthening governance A streamlined and simplified delivery system

4. 4 European Union Regional Policy – Employment, Social Affairs and Inclusion Key components of effectiveness in cohesion policy Alignment of cohesion policy with Europe 2020 Reinforced strategic programming Thematic concentration Stronger focus on results Conditionality Streamlined delivery system

5. 5 European Union Regional Policy – Employment, Social Affairs and Inclusion Reinforced strategic programming I Common Strategic Framework –Sets a comprehensive investment strategy for cohesion policy at EU level –Translates the targets and objectives of Europe 2020 into investment priorities for Member States and regions –Covers cohesion, rural development and fisheries policies and coordination with other EU instruments

6. 6 European Union Regional Policy – Employment, Social Affairs and Inclusion Reinforced strategic programming II Development and investment partnership contract –Results from negotiation between the Commission and Member State on: Thematic objectives to address the priorities/targets established in Europe 2020 Specific objectives and corresponding indicators that translate Europe 2020 priorities in a national and/or regional context Commitments for fulfilment of conditionalities Coordination with other EU funds Covers cohesion policy but could be extended to other policies and instruments Programmes (either thematic or regional) –Translates agreement on contract into concrete investment priorities accompanied by clear and measurable targets

7. 7 European Union Regional Policy – Employment, Social Affairs and Inclusion Thematic concentration Member States and regions will be required to concentrate EU and national resources on a limited number of thematic objectives linked to Europe 2020 strategy –Regulation will establish a menu of thematic objectives directly linked to Europe 2020 strategy –Differentiation between more developed and less developed Member States and regions. Less developed Member States and regions may focus on a larger number of priorities –Ceiling for maximum number of priorities will be applied at programming level (i.e. national or regional)

8. 8 European Union Regional Policy – Employment, Social Affairs and Inclusion A Stronger Focus on Results: Monitoring OUTPUTS Obligatory common output indicators Customised indicators where necessary Annual Reporting RESULTS Policy decision on intended change for each thematic objective Result (outcome) indicator for each thematic objective reflecting the intended change, with baseline situation Regular monitoring of evolution of result indicator

9. 9 European Union Regional Policy – Employment, Social Affairs and Inclusion A Stronger Focus on Results: Evaluation Ex-ante evaluation: –Contribution to EU2020 & consistency of indicators, targets & financial allocations –Basis for later evaluation of impact Evaluation Plan: –More evaluation of the effects of interventions (impact) –Implementation evaluations when necessary –Synthesis evaluation towards end of programming period Ex-post evaluation by the Commission Change in Result Indicator = effect of intervention + effect of other factors

10. 10 European Union Regional Policy – Employment, Social Affairs and Inclusion Performance Incentives Annual political debate – peer review Performance framework in Partnership Contract Performance reserve

11. 11 European Union Regional Policy – Employment, Social Affairs and Inclusion Ex-ante conditionality Aim is to ensure preconditions for effective support Four types of ex-ante conditionality: pricing -Regulatory (water pricing, small business regulation) -Strategic (innovation, research, climate change) -Project planning capacity (transport, energy interconnectors) -Institutional (budget planning, public procurement

12. 12 European Union Regional Policy – Employment, Social Affairs and Inclusion Application of ex-ante conditionality Regulation: Thematic and horizontal ex-ante conditionality set out in the Regulation Preparation of programming documents: Self-assessment by Member States and/or regions whether conditionality met. Results included in draft programmes and commitments synthesised in Partnership Contract Conditionality fulfilled: Draft programmes describe that no further action needs to taken Not fulfilled: Draft programmes lay down commitments for fulfilment Partially fulfilled: Draft programmes lay down commitments for fulfilment Negotiation and agreement on commitments: The commitments are laid down in the programmes and synthesised in the Partnership Contract

13. 13 European Union Regional Policy – Employment, Social Affairs and Inclusion Strengthening financial management and control Simplifying financial discipline Greater proportionality and differentiation Developing e-Governance in cohesion policy Streamlined delivery system I.

14. 14 European Union Regional Policy – Employment, Social Affairs and Inclusion Streamlined delivery system II. Review of eligibility rules: More extensive use of simplified reimbursement options More harmonisation in areas such as: -Eligibility of overheads and personnel costs -The treatment of in kind contributions -Consistency and compliance with other EU policies and legislation -Eligibility of VAT and other indirect taxes -Rules applied to financial instruments

15. 15 European Union Regional Policy – Employment, Social Affairs and Inclusion Challenges ahead We have to create a regulatory framework based on these principles which will achieve the goals of: A policy which visibly and measurably contributes to Europe 2020 Programming which produces quantifiable results and impact Streamlined access to investment funds by beneficiaries