Technical support to Member States High-Level Meeting Brussels 5 July 2016
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1 Technical support to Member States High-Level Meeting Brussels 5 July 2016 Secretariat- General
2 Agenda Context Current technical support capacity Sources and instruments Policy areas Structural Funds Specific assignments Future developments New programme Structural Reform Support Programme New areas Capital Markets Union 2
3 Agenda Context Current technical support capacity Sources and instruments Policy areas Structural Funds Specific assignments Future developments New programme Structural Reform Support Programme New areas Capital Markets Union 3
4 COM steps up its capacities for supporting MS Objective: support the preparation, design and implementation of growth-enhancing reforms Focus on implementation and support on the ground - covering all challenges Focus on country-specific perspective New policy areas Coordinating role Context 4
5 New capacities for support Creation of the SRSS Team of 130 staff/experts Located in Brussels and in Member States Additional means of funding - Preparatory action for Dedicated programme from 2017 onwards (SRSP) 5
6 Technical support to Member States Economic governance processes European Semester Union Law Policy priorities Better use of funds Adjustment programmes Conditionalities MS reforms at their own initiative Other growth-enhancing reforms to achieve sustainable investment, growth and job creation Support provided upon request from the MS Ownership of the reforms relies on MS 6
7 Agenda Context Current technical support capacity 7 Sources and instruments Policy areas Structural Funds Specific assignments Future developments New programme Structural Reform Support Programme New areas Capital Markets Union
8 Agenda Context Current technical support capacity 8 Sources and instruments Policy areas Structural Funds Specific assignments Future developments New programme Structural Reform Support Programme New areas Capital Markets Union
9 Sources of and instruments for support Sources Instruments Support COM services MS officials Public Agencies International Organizations Private sector Expert missions (short term, long term, embedded) Study visits Analysis (legal, processes, IT, etc.) Reform Partnerships Scoping missions, EU benchmarking Seminars, conferences, workshops, training Peer-to-peer exchanges Consultancy (legislation, communication, data analysis, change management ) Reform design, strategic support 9
10 A unique combination of support means COM, MS officials, IO, public agency and/or private sector MS "Reform partner" Strategic guidance COM, MS Evaluation Implementation Design, data analysis, legal advice, deployment MS officials Workshops and study visits EU benchmark COM MS officials Scoping mission Frame and assess the request for support 10 Member-State request
11 Key benefits COM is at disposal of the MS throughout the reform process Strategic and technical expertise from other EU Member States Unique combination of support providers Financing can be made available for all steps of the reform 11
12 Agenda Context Current technical support capacity 12 Sources and instruments Policy areas Structural Funds Specific assignments Future developments New programme Structural Reform Support Programme New areas Capital Markets Union
13 Support for policy areas (not exhaustive) Governance and public administration Tax revenue and public financial management Growth and business environment Labour market, health and social services Financial sector and access to finance Governance Central and local administration e-government HR reform Better regulation Anti-corruption and anti-fraud Anti-money laundering Revenue collection Budget preparation Spending reviews Fiscal strategy and tax policy Supreme audit institutions/ Fiscal Council Investment licensing and regulation Competition policy and business dpmt. Trade issues Digital society Land registry Sectoral expertise: transport, env., water, agriculture, tourism Labour market and laws Strategies to mitigate unemployment Labour inspectorates Welfare system Pension system Healthcare system Access to finance, microfinance Credit mediation, insolvency CMU Venture capital Insurance Legal and institutional issues Supervisory and resolution Competition issues 13
14 Examples of support provided (non-exhaustive) Governance and public administration Tax revenue and public financial management Growth and business environment Labour market, health and social services Financial sector and access to finance Assistance to set up an interministerial coordination structure Support for the reorganisation of the tax administration Support for optimisation of renewable energy sources Assistance with introduction of services voucher system Support for SME NPLs Assistance for reform of the judicial system Spending reviews Strengthening the implement. of energy directives Assistance for national rollout of a GMI Support for bank recapitalization Assistance for implement. of anti-moneylaundering law Assistance in setting up a fiscal council Assistance in the design and evaluation of PPP projects Assistance with development of IT strategy and infrastructure for a NHS Support for development of capital markets 14
15 Governance and public administration Short version = print & online (80 pages) Full version = online only (500 pages) 15
16 Agenda Context Current technical support capacity 16 Sources and instruments Policy areas Structural Funds Specific assignments Future developments New programme Structural Reform Support Programme New areas Capital Markets Union
17 Support for the efficient use of ESIF Different sources of funding: Technical assistance at the initiative of the Member States linked to efficient management of the funds EUR 13.6 bn in 28 MS implementation by MS Technical assistance at the initiative of the Commission linked to efficient management of the funds EUR 1.2 bn implementation by COM 17
18 Support for the efficient use of ESIF Support at the initiative of the Member States: Human resources in key bodies: recruitment and training Support to beneficiaries: development of project pipeline Monitoring and evaluation Studies and strategies Promotion and publicity 18
19 Support for the efficient use of ESIF Support at the initiative of the Commission: PEER 2 PEER: better use of available know-how Public procurement State aid Anti-fraud and anti-corruption Professionalization of the management of the funds 19
20 Support for the efficient use of ESIF Three examples: TAIEX REGIO PEER 2 PEER Integrity Pacts Public Procurement Guidance Note 20
21 Taiex Regio peer-to-peer TAIEX-REGIO PEER 2 PEER FACILITATES EXCHANGE OF EXPERIENCE AMONG MEMBER STATES ON COHESION POLICY ISSUES Expert missions Study visits Workshops Up to 5 Days Up to 2 Days Up to 2 Days 21
22 22 Peer-to-Peer: who uses it most?
23 23 Peer-to-Peer: who contributes most?
24 24 Integrity Pact pilot project
25 25 Integrity Pact pilot project
26 Public procurement Public Procurement - Guidance for Practitioners Guidance structured around the 6 main stages of a public procurement process based on a list of 25 most common errors identified in audits Toolkit of resources addressing specific topics with concrete examples on what to do and what not to do during the procurement and contract implementation 26
27 Public procurement Translations available 23 languages 27
28 Agenda Context Current technical support capacity 28 Sources and instruments Policy areas Structural Funds Specific assignments Future developments New programme Structural Reform Support Programme New areas Capital Markets Union
29 Aid Regulation for the TC Community Overall objective of the regulation: To facilitate the reunification of Cyprus by encouraging the economic development of the Turkish Cypriot community (TCc) with particular emphasis on the economic integration of the island, on improving contacts between the two communities and with the EU, and on preparation of the acquis communautaire. Budget: EUR 259 million (2006) C.a. EUR 30 million annually since Total to date: EUR 416 million
30 Aid Regulation for the TC Community 30
31 Aid Regulation for the TC Community 31
32 Cyprus settlement talks COM support through President Juncker's Personal Representative to the UN Good Offices Mission to Cyprus, Pieter Van Nuffel COM experts invited to present relevant acquis areas to the Bi-Communal Ad Hoc Committee on EU Preparation Visit of Negotiators on 4 February Commission strengthened support 32
33 Agenda Context Current technical support capacity Future developments New programme Structural Reform Support Programme New areas Capital Markets Union 33
34 Agenda Context Current technical support capacity Future developments New programme Structural Reform Support Programme New areas Capital Markets Union 34
35 Structural Reform Support Programme COM adopted a proposal (ordinary legislative procedure) for the SRSP on Nov 2015 as part of the EU Semester package Rationale: MS may benefit from tailored support to design and implement structural reforms Duration: Estimated budget: EUR million (to be split into annual allocations); possible add-on: voluntary contribution from beneficiary MS (transfer of funds to COM) 35
36 SRSP - Objective Objective: strengthen the capacity of Member States to prepare and implement growthenhancing reforms, including through assistance for the efficient and effective use of Union funds enhance capacity to implement reform in an integrated manner implement appropriate processes and methodologies based on "best" practice enhance human resource management 36
37 Support is demand-driven (MS request for support) Triggering factors COM decisional process Process under the SRSP Criteria for analysis of request COM decides on MS request COM implements SRSP via (current proposal) Multi-annual work programme (setting priorities, expected results) Annual financing decisions (grants, procurements, expert missions, etc.) 37
38 SRSP - timeline Council: COREPER approved MS "common position" at end of May 2016 European Parliament: discussions are ongoing; possible "trilogues" end 2016; plenary vote early 2017 SRSP entry into force after OJ publication (i.e. post lawyer-linguist revision, translations etc.) Start of support operations: after adoption of the annual financing decision under the SRSP concrete timing depends on approval of SRSP by colegislators other steps needed under the SRSP: MS request, COM assessment, multi-annual work programme, annual financing decision 38
39 Agenda Context Current technical support capacity Future developments New programme Structural Reform Support Programme New areas Capital Markets Union 39
40 Financial sector support Offering technical support covering a number of issues: Financial institutions: Legal and institutional issues, including supervision, resolution and competition issues; Access to finance, including Capital Markets Union, micro-finance, credit mediation and venture capital; Insolvency: Legal and institutional issues; and Insurance undertakings: Legal and institutional issues, including supervision and regulation. 40
41 Capital Markets Union Major Commission initiative to mobilise capital in the EU. Goals are to: Unlock more investment from the EU and the rest of the world Better connect financing to investment projects across the EU Make the financial system more stable Deepen financial integration and increase competition 41
42 42 Capital Markets Union
43 43 Capital Markets Union
44 Potential discussion areas 1. Increasing supply of non-bank finance for companies, in particular for SMEs (private debt and equity); 2. Increasing demand for non-bank finance; information provision, signposting and guidance; 3. Market infrastructure; 4. Strengthen supervisory capacity N.B. first project underway in this area. 44
45 Timeline July-August: Commission, together with potential TA providers, finalise indicative list of areas for support September-October: Engagement with Member States to allow Member States to indicate their own priorities November onwards: Development of projects in preparation for SRSP adoption (within the procedures laid down by the SRSP) 45
46 Thank you SRSS Internet site:
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