Task Force for Greece European Parliament Hearing 28 May 2013 Implementation of financial assistance to Greece from EU budget Task Force for Greece 1
TFGR overview Mandate TFGR established in September 2011 Staff and organisation TFGR currently consists of 58 members of staff To coordinate technical assistance that Greece needs to deliver the EU/IMF adjustment programme To recommend legislative, regulatory, administrative and if necessary (re)programming measures for an accelerated take-up of EU funds, focussing on competitiveness, growth and employment 31 at the headquarters in Brussels 27 in Athens TFGR work centred on 12 Policy Areas covering close to 100 projects Quarterly Reports to Commission and Greek government, last one issued on 29 April 2013 Task Force for Greece 2
About 100 TA projects in 12 policy areas Policy area 1. Cohesion policy 2. Access to finance 3. Reform of public administration 4. Budget and taxation 5. Anti-corruption/anti money-laundering 6. Business Environment 7. Public Health 8. Reform of Judicial System 9. Migration, asylum, borders 10. Labour market, social security 11. Energy, transport, environment 12. Privatisation and land registry 3
Examples of project per policy areas Cohesion policy Simplify management and control procedures for current SF projects Access to finance Preparatory work for Institution for Growth in Greece Administrative reform Creation and functioning of Inter-Ministerial coordination structure Budget and finance: Tax Administration: institutional and organisational reform, training Anti-corruption + Implementation of strategies and training anti-money laundering Business environment Competition and admin burden: screening of Greek business legislation (OECD) Health Support to the Health Steering Committee in reform areas, such as hospital management, pricing & reimbursement of pharmaceuticals, e-health, EOPYY (health insurance fund) Judicial reform e-justice, collection of statistics Labour markets, social Social economy: outline strategy and priorities for Action Plan security Migration, asylum, borders Preparation of an action plan on migration & asylum Energy, transport, environment Privatisation and Land Registry Implementation of a 2-year TA programme on renewable energy strategy TA to prepare privatisation process (real estate, airports, ports, water, gaming) Task Force for Greece 4
TA delivery methods 1, Upstream dialogue, preparation and coordination 2, Expert missions (diagnostics, workshops) 240 expert missions, 24 workshops; 1297 expert days (on-site) paid by EU Commission (ESF budget) + heavy investment of 'ownresources' by some Member States (notably FR, NL, DE); 20 Member States have provided experts; most active : FR, NL, DE, SE, BE, AUT, EE,ES. 3, Small value contracts paid by EU Commission 13 contracts signed and 8 about to be signed for a total value of approx 210'000 (ESF budget); e.g. in export simplification, procurement, business parks, liberal profession simplification, financial sector (microcredit), health 4, Longer term projects 5 contracts signed between EU Commission and (i) International Organisations (ii) EU national public bodies Task Force for Greece 5
Centrally managed EU budget (ESF) for experts & contracts Funding source Amount approved Expert missions ESF TA 2012 205 000 ESF TA 2013 200 000 TOTAL 2012+2013 405 000 Small value contracts (max 15 000 ) ESF TA 2012 342 000 ESF TA 2013 505 000 TOTAL 2012+2013 847 000 Task Force for Greece 6
Number of expert days (mostly funded by the European Commission): breakdown by policy field (total 1297 expert days on ground) Structural funds, agriculture, fisheries, access to finance Privatisation, land use and land registry Revenue Administration, PFM, Pensions Public health Administrative reform at central level, e-gov Administrative reform at regional and local level Anti-Money Laundering, Anti Corruption Business environment Energy, Electronic Comms., Transport, Environment Labour Market, Education, R&D&I Judicial reform, Migration, Asylum Financial sector, bank restructuring 7
Long Term assistance projects Projects funded from EU Commission managed budget lines Public finance management + Social security: IMF (3,98M ) Business reforms, logistics: World Bank (1,7m ) Trade facilitation + exports: UNECE (1,1m ) Reform of central public admin: French public agency ADETEF (0,75M ) Renewable energy strategy: DE Ministry of Environment (0,75m ) Total: 8,28M Projects funded from Greek managed structural funds (SF ) Admin-burden reduction: OECD (1,2M ) Review of regulatory barriers to competition: OECD (1M ) Total 2,2m Task Force for Greece 8
Centrally managed EU budget split for Long Term projects Source of funding Amount Beneficiary/Subject-matter approved ESF TA 2011 3.2 M IMF (PFM, tax administration) ERDF TA 2012 1.7 M World Bank (Doing business & logistics) ERDF TA 2012 1.1 M UNECE (export facilitation) ERDF TA 2012 0.75 M DE MINISTRY ENVIRONMENT (renewable energy) ESF TA 2012 0.75 M FR agency ADETEF (central administration reform) ESF TA 2012 0.78 M IMF (social security & tax policy) TOTAL FUNDING (ESF + ERDF TA) 8.28 M Task Force for Greece 9
Projects under preparation Greek managed SF: execution from mid-2013 to mid-2015 Administration Reforms Central administration reform Regional & local administration reform Land Registry Health sector reform Public health, Diagnostic Related Groups, EOPYY, Hospital management, pharma pricing, e- health Trade Facilitation Simplification of export licenses Optimization of custom clearance Electronic systems for traders Task Force for Greece 10
EU Financial instruments: potential liquidity support for SMEs* In million EUR 30 April 2013 In million EUR 31March 2013 Co-financing Total Disbursements ERDF/EIB Contracted contributions amount to Banks / contribution Co-financing Total to banks Disbursements to ERDF/EIB from banks available Contracted SMEs contributions amount contribution EIF to banks from banks available SMEs JEREMIE 180 EIF 180 360 301 79 JEREMIE 180 EIB 180 360 243 79 SME global loans** EIB 0 1,000 1,000 150 0 SME global loans (ERDF guarantee fund) (ERDF guarantee fund) 1,000 0 1,000 150 0 SME global loans (Greek state guarantee) 440 0 440 440 225 SME global loans (Greek state Subtotal guarantee) EIB global loans 1,440 0 1,440 590 225 ETEAN Total liquidity 2,028 641 2,669 1,152 315 1 st loss portfolio guarantee** (no contracts with banks up to now) (no contracts with banks up to now) * Without Risk Capital schemes in ICT companies (50 million EUR ERDF) ** Pending to determine the guarantee fee *** Guarantee, no liquidity Source: TFGR analyses, Hellenic Banking Association 440 0 440 440 225 Subtotal EIB global loans 1,440 0 1,440 590 225 Entrepreneurship Fund 133 ETEAN 186 319 319 11 Working capital (no contracts with banks up to Entrepreneurship now) Fund 133275 183275 316550 316 0 540 Working capital 275 275 550 550 0 Total liquidity 2,028 609 2,666 1,757 358 1 st loss portfolio guarantee*** 50 100 150 0 0 50 100 150 0 0 Task Force for Greece 11
In million EUR 30 April 2013 EU funded liquidity in the Greek market NBG Alpha Bank Euro bank Piraeus Bank PanCretean Cooperative Bank Total To be contracted EIF (JEREMIE) 120 123 58 0 0 301 59 EIB SME global loans to banks* 250 / 60 140/140 100 / 0 50 / 0 50 / 25 590 / 225 850 Contracted / Disbursed ETEAN 156 10 140 10 0 316 550 Public contribution** 363 206 199 55 50 859 Contractual Bank contribution 163 67 99 5 0 323 Total*** 526 / 336 273 298 / 198 60 / 10 50 / 25 1,207 /842 1,459 Disbursements to SMEs 148 177 0,2 0 25 350 * Pending to determine the guarantee fee ** ERDF + EIB ***Amounts from ERDF/EIB + commitments from banks for leverage Source: TFGR analyses, Hellenic Banking Association Task Force for Greece 2,666 m EUR 12
TA making a difference (4 examples) 1. Reform of the central administration: evaluation of most Greek Ministries (approx 206,000 staff) completed; proposals for reorganization adopted by Greek government 2. Motorways concessions: site works recommenced in April 2013. Decision on the long-term financing is expected for June 3. Export facilitation: screening of pre-customs controls for 2 important export products followed swiftly by simplification of controls and working methods 4. Out of court settlement/mediation: launch 3-year campaign to promote out of court settlement in Greece and to develop centres to train accredited mediators Task Force for Greece 13
Conclusions 1. Very broad coverage of TA activities covering many important policy areas 2. TA projects are moving progressivly from analysis to implementation 3. Common cooperation perspective exists between Greek authorities and TFGR until mid-2015 4. Impact of TA support depends on Greek reform leadership and sustained reform momentum Task Force for Greece 14