Ivana Maletić, MEP EFRI Summer School 2015
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1 Ivana Maletić, MEP EFRI Summer School 2015
2 C O H E S I O N P O L I C Y 1. COHESION FUND Structural funds 2. EUROPEAN REGIONAL DEVELOPMENT FUND (ERDF) 3. EUROPEAN SOCIAL FUND (ESF) European Union Programmes EUROPEAN MARITIME AND FISHERIES FUND AGRICULTURAL FUND FOR RURAL DEVELOPMENT
3 Izvor: European Commision, DG Budget
4 In the first six months of membership from 1st July to 31st December 2013, we were allocated 449,4 million euros from European funds utilized via Cohesion Policy. As of 2014 that amount has been increasing and now amounts to an average of 1,2 billion euros annually. A total of 8,4 billion euros from the period , without agriculture (an average of 1,2 billion euros annually) ERDF cca. 300 million euros annually First year - 60%, second year - 80% and third year onwards 100% of allocation 1st July th June = 850 1st July th June = 960 1st July th June = 1.200
5 The European Commission presented the multiannual budget for the period on 29th June 2011 A total amount of 1,025 billion euros for establishment of commitments (1.05% of the EU GNI in commitments) and billion euros for payments (1% of EU GNI in payments) have been proposed. The proposed amount has been decreased by 7% and the total perspective amounts to 959,9 billion euros
6 ESI Fund European Regional Development Fund (ERDF) Cohesion Fund (CF) European Social Fund (ESF) European Agricultural Fund for Rural Development (EAFRD) European Maritime and Fisheries Fund (EMFF) TOTAL: Allocation EUR EUR EUR EUR EUR EUR
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8 EUR KN I Structural and cohesion funds (1+2) Advance payments Reimbursements (1st July th June 2014) OP Transport ERDF OP Environment CF OP Regional Competitiveness ERDF OP Human Resources Development ESF II IPA (I, II and V) reimbursements (1st July th June 2014) III European Agricultural Fund IV Direct payments EAGF V Schengen VI European Refugee Fund VII European Return Fund VIII Cash Flow Facility TOTAL (I-VIII) Payments to the EU budget DIFFERENCE Note: From 1 July 2013 to 31 December 2014, according to NF data, Croatia received EUR ,58 from the EU, and paid a total of EUR to the EU, having therefore paid 30 million euros more than it received, concluding the mentioned period as a net payer.
9 As a member state, in the first year of membership we paid 4,1 billion kunas to the European budget and, without IPA project, we received cca. 3,8 billion kunas from the European budget, exclusively through advance payments. According to the plan defined during negotiations for EU membership, we should have received 8 billion kunas at the least, with the expected ratio being larger in subsequent years of membership: we should draw 3,5 to 4 kunas for one kuna paid to the budget.
10
11 Prerequisites for drawing of EU funds 1. Prepared strategic documents 2. Completely prepared projects (prerequisites fulfilled, all technical and project documentation drawn up) 3. Corresponding administrative and financial capacities for implementation 11
12 Experiences of member states show that almost twice as many prepared projects are required for a 100% utilization of allocated funds. In order to utilize 10,7 billion euros, projects valued at almost 21,5 billion euros need to be implemented This means that over 2 billion euros in projects need to be implemented on an annual basis. At the end of 2016, loss of over 300 million euros is certain due to non-contracting of projects and delays in implementation, and in 2017 we will be facing a much larger loss of funds, amounting to over 500 million euros.
13 Inadequate human capacities a continued, multi-layered problem Management of EU funds is still high on the list of priorities of the Government of RC Operational level doesn t bring decisions, doesn t display inovativeness, doesn t manage (doesn t carry out risk assessments) and often does not have a clear connection with decision-makers; decision-makers don t have a clear picture of the actual state of play and possible loss of funds Budget planning for EU projects is approached superficially; there is no critical review of the situation within institutions
14 Programmes/projects financed 100% from national funds, for which EU co-financing is available, are still being implemented Departments are still open for cooperation with international financial institutions in areas for which EU funds are planned, without a strong and clear connection with increased absorption of EU funds Functions and tasks of the Coordinating Body (Ministry of Regional Development and EU Funds) are inadequately distributed within ministries
15 Slowness of the system, Unsolved property-legal relations, Inadequate capacities for co-financing (especially with regard to local administrations) Complicated procedures, especially regarding public procurement Planning and management still reflect the way of thinking from the time of implementation of IPA programme (the framework of allocated funds is crossed; B-scenarios are not worked upon; institutions rarely recognize the importance of the so-called overbooking )
16 State 31st December 2011 Realization 2012 State 31st December 2012 Realization 2013 Status 31st December 2013 Realization 2014 State 31st December 2014 Government contracting plan 2013 (realization) Government contracting plan 2014 (realization) Contracted 252,7 157,4 410,1 149,3 559,4 450,7 1010,1 601, ,1 Paid 127,0 111,5 238,5 133,3 371,8 136,4 508,2 Received from EC 210,4 80,6 291,0 127,0 418,0 258,2 676,2 *Note: funds allocated in the period in the amount of 1,3 billion euros must be spent (projects contracted, implemented and certified in Brussels and funds drawn from the EU budget) b y the end of **Note: funds allocated in 2014 in the amount of cca. 1 billion euros must be spent by the end of 2014.
17 2500 Overview of contracted, paid and allocated funds as per years (in million euros) 2,300 2, ,300 1,300 1, , State 31st December 2011 State 31st December 2012 State 31st December 2013 State 31st December 2014 Contracted Paid Received from EC Government contracting plan Awarded funds
18 Overview of planning and realization of EU projects in the state budget (in million kunas) 3, , , , , , , , , , , , , , */** Plan Balancing the budget Realization
19 EU EU 2020 HR 2012 HR 2020 Employment Employment rate, % of population aged , ,4 62,9 R&D Gross domestic expenditure on R&D, % of GDP 2,06 3 0,75 1,4 Climate change / Energy Greenhouse gas emission, Indeks 1990=100 83, , Share of renewable energy in gross final energy consumption, 13, ,8 20 % Primary energy consumption, ooo TOE Final energy consumption, ooo TOE 1.103, Education Early leavers from education and training, % 12,8 10 4,2 4 Tertiary educational attainment, % 35, ,7 35 Poverty / Social exclusion People in or at risk of poverty and social exclusion, thousand
20 Under OPCC the available ERDF and CF resources have been allocated to the following priority areas: Strengthening the Economy through Application of Research and Innovation Use of Information and Communication Technologies Business Competitiveness Promoting Energy Efficiency and Renewable Energy Sources Climate Change and Risk Management Environmental Protection and Sustainability of Resources Connectivity and Mobility Social Inclusion and Health and Education, Skills and Lifelong Learning
21 PRIORITY AXES DESCRIPTION BENEFICIERIES 1. Strengthening the Economy through Application of Research and Innovation 2. Use of Information and Communication Technologies 3. Business Competitiveness Spending will contribute to the achievement of the national RDI headline target, increase the investments in R&D to 1.4% of GDP by 2020 and will be aligned with strategic objectives to improve R&D rate of return and innovation performance and achieve measured productivity growth Spending will be focused on upgrading the existing broadband speed, to increasing the number of backhaul NGN connection points in target areas and of households taking up broadband subscriptions, thus directly contributing to the fulfilment of the Digital Agenda Europe (DAE) targets for high-speed broadband coverage till Focus will be on greater levels of business investments, creating jobs and increased contribution to export earnings by SMEs, the majority of allocation focusing on direct support to SMEs through financial instruments, grants, advisory and training services, and a smaller portion to improve the BSOs services and physical infrastructure. Private HEIs, public and private ROs, science technology parks and regional and local selfgovernment units, technology transfer offices Local and regional authorities (municipalities, towns and counties) from white NGA areas, public companies, ministries SMEs, Business Support Organisations (such as entrepreneurial associations, Chamber of Economy, Chamber of Crafts, Croatian Association of Cooperatives, accelerators, incubators, entrepreneurship centres, regional development agencies, SEECEL), public authorities (including the MEC, HAMAG-BIRCO), Loan funds, guarantee funds, seed capital funds, venture capital funds, business angels, other forms of public-private partnerships, clusters UNION SUPPORT ,00 9,66 % ,00 4,46 % ,00 14,10 % 4. Promoting Energy Efficiency and Renewable Energy Sources 5. Climate Change and Risk Management The focus of activities and correspondingly financial allocation will be Enterprises (including SMEs and larger enterprises), public bodies dedicated to energy efficiency and RES measures in public infrastructure (owner of public buildings), physical persons (owner of residential (including residential buildings), i.e. activities directly related to the fulfilment buildings / houses), regional and local authorities, public service of obligation from the Energy Service Directive and to the fulfilment of the companies Europe2020 headline targets related to the share of RES and decrease in energy consumption. Implementation of PA5 is specific because it is envisaged in two phases: until the Climate change adaptation and Disaster Risk assessment are prepared (by 2016 and 2015 respectively) only preparatory measures (such as: strengthening capacities dana gathering, project preparation etc.) will be financed under this PA while the concrete (infrastructure) investments will follow subsequently. Public institutions dealing with climate change (Ministry, Metrological service), local authorities, NGOs, research and academic institutions, State bodies and organisations responsible for the risk/ disaster management and data collection (National Protection and Rescue Directorate, Meteorological service, other responsible ministries and agencies etc.), Croatian waters and regional (Counties) ,00 7,73 % ,00 3,57 %
22 PRIORITY AXES DESCRIPTION BENEFICIERIES UNION SUPPORT 6. Environmental Protection and Sustainability of Resources 7. Connectivity and Mobility 8. Social Inclusion and Health 9. Education, Skills and Lifelong Learning 10. Technical Assistance The largest share of financing will be dedicated to water supply, sewerage and waste water treatment due to the fact that the water sector requires the biggest investments in order to ensure compliance. Majority of financial resources under this PA will be allocated to investments in railways, regional roads, clean public and urban transport. The largest share will be dedicated to health and social care sectors, due to the process of deinstitutionalisation, requiring investments to contribute to the fulfilment of national plans. Interventions will contribute to the national headline targets regarding share of population in connection to early school leaving and with completed tertiary education, areas also recognised by the Commission. Building of capacities will be the main concern of PA10, both at national and regional level. Governmental bodies and institutions, regional and local authorities, owners of cultural heritage, local population, NGOs, public services, municipal waste companies, enterprises Road authorities, mostly Croatian roads as well as local authorities, companies which manage and organize public transport services which operate to and from Croatian islands Ministry of Health, Centers for Emergency Medicine, hospitals, primary health care providers Croatian Academic Research Network, primary and secondary schools, Higher education institutions, vocational education and training schools, polytechnic and school of professional higher education Bodies in the management and control system for the OPCC (Managing authority and Intermediate body levels 1 (IB1) and 2 (IB2)), as well as the horizontal bodies working on both Cohesion policy OPs and the Management structure for the Integrated Territorial Investment (ITI). ERDF: ,00 4,91 % CF: ,00 23,97 % ERDF: ,00 5,81 % CF: ,00 13,23 % ,00 5,47 % ,00 3,78 % ,00 3,14 %
23 Under OPEHR the available ESF resources have been allocated to the following priority areas: 1. High employment and labour mobility 2. Social inclusion 3. Education and lifelong learning 4. Good governance 5. Technical Assistance
24 PRIORITY AXES DESCRIPTION BENEFICIERIES UNION SUPPORT 1. High employment and labour mobility 2. Social inclusion Emphasis will be placed to strengthen the effectiveness and Institutions responsible for ALMP measures in Croatia (such as reach of ALMP by CES, Ministry of Veterans Affairs), Croatian Employment increasing the coverage of the young, long-term unemployed Service, local and regional self-government units and older workers, as well as preventive measures for those facing redundancy risk, aiming at preservation of jobs and maintaining employment under conditions of changing labour market situation. Three main areas are chosen for financing: active inclusion, access to health and social services and promotion of social entrepreneurship. Ministry of Social policy and Youth, public and private institutions in the area of social policy, local and regional selfgovernment units, non-governmental organizations, non-profit organizations, cooperatives, local and regional development agencies, international organizations in the area of social policy ESF: ,00 25,32 % YEI: ,00 8,37 % ,00 20,73 % 3. Education and lifelong learning 4. Good governance 5. Technical Assistance Emphasis will be put on further development of the CROQF as Ministry responsible for HE, sectoral agencies, HEIs research an instrument of regulation of the qualifications in Croatia institutions, CSOs in the area of research and HE, sectoral and construction of a more flexible education system that will agencies, higher education institutions ensure better alignment with labour market needs. The funds will support the reengineering of the business processes in PA and its horizontal integration and upgrading existing and designing and implementing new e-government services. TA will address gaps and shortcomings at national as well as regional/local level so as to ensure sufficient staffing and administrative/technical expertise. Central state bodies, Ministry of Finance, Ministry of Public Administration, PA at local/regional level, Croatian Bureau of Statistics, National School for Public Administration, CSOs, Ministry of Justice, Judicial academy, other judicial bodies Bodies in the management and control system for the OPCC (Managing authority and Intermediate body levels 1 (IB1) and 2 (IB2)), as well as the horizontal bodies working on both Cohesion policy OPs and the Management structure for the Integrated Territorial Investment (ITI) ,00 28,44 % ,00 12,09 % ,00 5,06 %
25 In line with Europe 2020 and the overall CAP objectives three longterm strategic objectives for EU rural development policy in the period can be identified: fostering the competitiveness of agriculture; ensuring the sustainable management of natural resources, and climate action; and achieving a balanced territorial development of rural economies and communities including the creation and maintenance of employment. RURAL DEVELOPMENT PROGRAMME MEASURES SHARE OF TOTAL ALLOCATION (%) EU AMOUNT ( ) 1. MEASURE 4 investment into physical assets ,76 2. MEASURE 6 development of agricultural holdings and operations ,94 3. MEASURE 7 basic services and reconstruction of villages in rural areas 10, ,58 4. MEASURE 13 payments to areas with natural and other special limitations 10, ,00
26 Office of Member of the European Parliament Ivana Maletić
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