A performance-based EU budget and its focus on real results: The key to sound financial management
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1 A performance-based EU budget and its focus on real results: The key to sound financial management Petr Zahradník EESC Member (GR I) Rapporteur ECO/399
2 EU Budgetary policy on cross-roads Target: - stronger accent on a targeted and systematic focus on the results and performance the EU Budget delivers in addressing the EU s priority areas, and not only on compliance with the rules of legality and regularity; - performance culture rules in relation to the EU Budget are to be adopted = close linkage between the scope and nature of expenditures and a comprehensive set of performance indicators for measuring the results
3 - any discussion of a performance-based EU Budget is also a discussion of EU policy priorities capable to bring about the necessary structural changes; - so far, pilot tests to measure the impact of the EU Budget on the Europe 2020 strategy objectives; this effort however is to go further: via a closer linkage between the EU Budget and partnership agreements and operational programmes and the processes within the European Semester;
4 - substantial improvement in shared management (between the European Commission and the member states) and procedures of directly managed programmes of the European Commission is strongly needed.
5 Background: - EU Budget = key tool for financing the EU s priorities (1% of EU GDP); significant role in economic policies in individual Member States (1.9% of their average public expenditures, in some cases however considerably more than 10%); - the need to identify its real effects, measured by relevant macroeconomic indicators and benchmarks, respecting the principles of sound financial management and a performance culture based on three pillars: strategy, simplification and budget procedure (framework).
6 Priorities: - functional balance between an improved, performancebased and result-oriented approach with the traditional view of compliance with rules (legality and regularity) with the adoption of new elements of EU finances (thematic concentration, integrated and place-based approach and synergies, conditionalities and performance reserves, simplification, better quantified results); - improvements in working with data in terms of their accessibility and availability; - Evaluating the quality of regulatory framework for allocating the EU Budget;
7 Priorities: - to view the EU Budget s developments not from the perspective of a given year, but as a continuous mediumterm process in which individual years represent a specific development trajectory that is required to secure the expected results; - to respect the very close link between the EU Budget and the new model of EU economic policy, including the European Semester; Country specific recommendations could serve as a benchmark for efficient allocation of the EU Budget); - to create the EU Budget framework.
8 EU Budget performance-based and result-oriented - long-term target; - to optimise the benefit for EU citizens and to protect the financial interests of the EU itself; benefits = budgetary support respecting the development and operational priorities, compatible with the economic policy Framework and actual and expected economic performance; protecting the EU s financial interests = using the Budget appropriately in accordance with the rules and without errors or fraud;
9 EU Budget performance-based and result-oriented - soundness of financial flows and the programmes and projects funded by them (synergies between funds, CSRs and the European Semester, focus on areas of market imperfections/ failures, issues of shared management, financial instruments, data improvement, complexity of the issue).
10 Thank you for your attention Petr Zahradník
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