European Parliament, CONT Committee #EUBudget4Results

Transcription

1 European Parliament, CONT Committee #EUBudget4Results 24 May 2016

2 Outline 1. What is performance and what are the challenges? (BFOR)? 2. EU budget performance framework: MFF, PBB and political decision-making 3. A performance framework in cascade 4. Complementarity and mainstreaming 5. 'EU Budget Focused on Results': Progress during Milestones for Conclusions and outlook

3 Focus on performance is unavoidable Long-term strategic priorities Economic growth, competitiveness, employment Europe 2020 objectives Emerging challenges - Crisis in agricultural markets - Financial crisis - Refugee crisis and migration flows - Instability in the neighbourhood (Ukraine, Syria, Northern Africa): Challenge to security Increased focus on performance is unavoidable in a context of growing needs and budgetary discipline

4 Performance budgeting is the process that links funds allocated to measurable results (OECD) "PBB is a tool which aims to improve the efficiency and effectiveness of public expenditure by linking the funding of public sector organizations to the results they deliver, making systematic use of performance information" (Dr Marc Robinson) Benefits Better informed budget allocation decisions Stronger administrative efficiency Stronger public accountability Limits It should not lead to automatic allocations It cannot replace political decision-making Time inconsistency issues: political vs. investment, evaluation vs. budgetary cycles Risk of "totemisation" of indicators Proportionality and Cost-effectiveness One size does not fit all "You have to be careful in setting targets, to not set more than you could monitor and manage, to not set targets for things which you have very little control over, and to very clearly distinguish between the objectives and targets" (Dr Marc Robinson) Realistic expectations are key to success: The process of improving the PBB framework is a gradual one where every step forward counts

5 Elements of the Performance Framework of the EU budget Treaty + sectoral legislation Performance-based budgeting tools introduced with Multiannual Financial Framework. Annual budgetary process: Political choices. Administrative performance framework inside the Commission (SPP cycle). Ex ante and ex post performance evaluation (i.e. programme statements). Regular reporting, transparency and accountability (i.e. report on the management and performance of the EU budget). EU performance framework is conceptually in line with international standards; the PBB in place is complementary to compliance audit and the political negotiation process.

6 Legal and political context of the PBB framework of the EU EU performance framework is framed by the legal and political setup and a multi-layered architecture of budgetary and policy tools involving many different actors at national and supranational level

7 A multilayered performance framework : Building blocks of the annual report on the implementation and performance of the EU budget Europe 2020 Strategy priorities and targets E2020 R&D target: 3% of the EU's GDP invested in R&D Juncker Commission's 10 political priorities MFF Programmes' objectives and indicators DG RTD SP: A New Boost for Jobs, Growth and Investment Strategic & Management Plans Programmes Legal Bases Horizon 2020 Lead DG: RTD Associated DGs: CNECT, EAC, MOVE, GROW, HOME, ENER, JRC, AGRI MP: Specific objective 1.3 To ensure an effective and efficient implementation of Horizon 2020 and other RTD programmes and maximise synergies; main outputs, ex. calls for proposals in 2016 Annual Activity Reports Programme statements Annual Management and performance report General Objective 1: to build a society and an economy based on knowledge and innovation across the whole Union, while contributing to sustainable development

8 A performance framework based on complementarity and mainstreaming Complementarity: Several programmes contribute to one policy R&D Maintreaming: Policies are implemented via several programmes: - Climate action - Biodiversity - Gender equality

9 The performance of the EU budget must consider the multiplicity of objectives as well as the complementarity and mainstreaming of policies and programmes. A multilayered performance framework based on complementarity and mainstreaming: The challenge of objectives and indicators Europe 2020 Strategy priorities and indicators MFF Programme objectives and indicators Juncker Commission's 10 political priorities "Due to the diversity of tasks, actions and results within the public sector, a one-size fits all structure tends to end up resembling a prison with many empty cells. Pragmatism and recognizing diversity is more helpful" (Dr. Maarten de Jong) indicators indicators indicators XXX indicators fin the legal basis YYY indicators for programme management and indicators monitoring ZZZ composite indicators.indicators at national and regional level, complementarity with other funds.

10 BFOR Objectives and workstreams Progress & latest Deliverables In which areas do we spend? How do we spend? How are budget implementation and performance assessed? How do we communicate? WS1. Simplification Diminish administrative burden (more simplified cost options, admin. simplification scoreboard and use of Financial instruments) WS2. Performance framework Support decision-making with meaningful performance information WS3. Cost-effectiveness of controls & WS5. Discharge Remove inefficient & ineffective controls (Common methodology and indicators, multiannual corrections and recoveries) WS5. EU Results Improve communication on policy costs and results by improving access to project data and results WS6: Outreach and communication Create awareness and shape attitudes BFOR overview Simplification Revision of Financial Regulation and sectoral legislation Flexibility in implementation Better alignment of spending priorities with its overarching and changing policy objectives The 2016 budget: focus on political priorities and response to unexpected developments Improvements to Commission's performance framework: Reduction of objectives at Commission level and specific objectives at DG level Consolidated reporting on programmes' achievements Capacity Building and assessment Governance structure for BFOR Expert meetings on PBB OECD assessment of the EU performance framework External communication EU results pilot phase 800+projects, Conference 2015,

11 Legality and Regularity Objective: to demonstrate that the control systems in place for the EU budget adequately protect it from illegal & irregular expenditure, considering that => control systems are multi-annual (i.e. corrections also made year(s) after payments) Indicators: to measure the performance of the multi-annual control systems => amount at risk, estimated future corrections, amount at risk at closure (NEW) For 2015: methodology further refined for better estimates of the amount at risk and of the future corrections Outlook at closure regarding 2015 expenditure Estimated amount at risk as to the relevant expenditure of the year - Estimated = future corrections Estimated amount at risk at closure

12 BFOR: Progress during 2015 Development of conceptual framework for the implementation of the BFOR initiative within the new MFF. Establishment of internal governance: Political leadership and technical workstreams. Draft Budget 2016: Reinforced programme statements Upgrading the Commission's SPP cycle Public outreach: - BFOR national events - Conference BFOR, 22 September EU Results web app Progress is already visible: Launching of technical workstreams, engagement of key stakeholders, upgrading of the Commission's SPP cycle, enriched programme statements in draft budget, realignment of funds to political priorities, integrated annual management and performance report,

13 Milestones for 2016 Expert group on PBB Draft Budget 2017: Reinforcement of programme statements Annual Management and Performance Report for the 2015 EU Budget Framework for cooperation with the OECD Communication on Mid-Term Review of the MFF and BFOR Revision of the Financial Regulation Public outreach: - BFOR national events - Conference BFOR, 27 September EU Results web app There is strong political momentum to progress in the implementation of the PBB framework embedded in the current MFF.

14 Conclusions Increased focus on performance is unavoidable in a context of growing needs and budgetary discipline Realistic expectations are key to success: The process of improving the PBB framework is a gradual one where every step forward counts. PBB is complementary to compliance audit and the political negotiation process. The EU performance framework is aligned with international standards. It is framed by the legal and political setup and a multi-layered architecture of budgetary and policy tools involving many different actors at national and supranational level. The performance of the EU budget must consider the multiplicity of objectives as well as the complementarity and mainstreaming of policies and programmes. There is strong political momentum to progress in the implementation of the PBB framework embedded in the current MFF. Progress is already visible: Launching of technical workstreams, engagement of key stakeholders, upgrading of the Commission's SPP cycle, enriched programme statements in draft budget, realignment of funds to political priorities, integrated annual management and performance report, refined methodology for measuring the performance of the multiannual control systems