1. 2014-2020 ENI CBC Programmes Strategy and implementation 21 May 2013 St. Petersburg Alejandro Eggenschwiler (DG DEVCO) 1

2. Purpose Overview of the key features of the draft ENI CBC Programming Document and draft Implementing Rules 2

3. ENI CBC Legal Framework Indicative timeline Financial Regulation 2012 ENI Regulation CIR End 2013 Strategic dialogue EP/COM Early 2014 ENI CBC Progr. Doc. Spring 2014 ENI CBC IR Mid 2014 Joint Operational Programmes End 2014 3

4. ENI CBC Financial Framework Initial Commission’s ENI proposal: EUR 18 billion Likely ENI budget after cuts: EUR 15 billion Likely ENI CBC budget: approx. EUR 700 million (+ ERDF funds) 4

5. Programming Document Geography Identification of the eligible territorial units = ‘core eligible area;’ Options to extend the core eligible area:  Adjoining territorial units;  Major social, economic and cultural centres;  Extension from NUTS III to NUTS II (sea-crossing programmes);  Adjoining regions in non-participating countries (Art. 10.5 EN I). 5

6. Options to extend the core eligible area Major centres Adjoining régions Extension from NUTS III to NUTS II (only for sea-crossing programmes) Core eligible area Programme area Activities outside the programme area Max. 20% of the EU contribution to the programme Activities outside the programme area Max. 20% of the EU contribution to the programme At project level: + 6

7. 3 strategic objectives + list of approx. 10 thematic objectives  draft list under discussion; More focused thematic approach  each programme selects 4 thematic objectives; Not all the strategic objectives must be addressed. Programming Document Objectives 7

8. Primarily based on the population of eligible NUTS III territorial units or equivalent; Population of additional eligible territorial units (adjoining areas, major centres, etc.) will not be counted; Population of eligible territorial units participating in more than one programme will be counted only once. Programming Document Budget allocation 8

9. 4 working groups with MS: June 2012, September 2012, January 2013 and March 2013; All chapters drafted and discussed at least once with MS except one (designation criteria  waiting for ETC draft); Next steps:  next meeting with MS in Sept./Oct. 2013  Next conference with all CBC stakeholders in autumn 2013 ENI CBC Implementing Rules: state of play 9

10. Implementing Rules Management Modes 10 Shared management with Member States (MS) (preferred option); Indirect management with Partner Countries (PCs), the Russian Federation (RF) or international organisations (IOs); Both management modes imply greater financial responsibilities for participating countries  recoveries on own territories.

11. Implementing Rules Joint Operational Programmes Content: eligible area, strategy, coherence, structures and designation, implementation (Art. 4 IR); Must be submitted to the COM by 30 June 2017 at the latest; Adopted by COM decision following prior assessment and inter-service consultation  max. 6 months from official submission. 11

12. Implementing Rules: Financing Agreements (FAs) Concluded with each PC and the Russian Federation (N+1); For multilateral programmes the signature of at least one FA is necessary for starting activities; May be co-signed by other participating countries, the Managing Authority (MA) or the country hosting the MA; Shall be co-signed by other participating countries and MA when co-financing by PC or RF is transferred to the MA. 12

13. Implementing Rules: Memoranda of Understanding (MoU) The MA can conclude MoU with participating countries; To specify programme provisions not included in FAs; Content: specific financial responsibilities, recoveries, national co-financing (not transferred to MAs); 13

14. Implementing Rules: Programme Structures Managing Authority (MA) appointed by all participating countries and designated by the hosting MS  report and opinion of independent audit body; Audit Authority (AA) appointed by all participating countries and located in the same MS as MA; it is functionally independent from MA; Control contact points in all participating countries  assist MA in verifications. 14

15. Implementing Rules: Co-financing and Technical Assistance (TA) Co-financing of at least 10% of the EU contribution to the programme; TA budget of max. 10% of the EU contribution to the programme  should reflect real needs of programmes (budget, eligible area, participating countries). 15

16. Implementing Rules: Projects (1) Financial contributions provided through: 1.Grants  calls for proposals  direct award  exceptionally and in justified cases (monopoly, technical competence, high degree of specialisation)  list included in JOP (final for large infrastructure projects, indicative for other projects)  prior COM approval 2.Transfers to financial instruments (exceptionally)  prior COM approval  list included in JOP (list is final) 16

17. Implementing Rules: Projects (2) Large Infrastructure Projects (LIPs):  infrastructure component of at least EUR 1 million;  selected via direct award or calls for proposals; → Applications for LIPs selected via direct award to be submitted to the EC no later than 31.12.2017 Grants to LIPs and transfers to financial instruments must not exceed 30% of the EU contribution to the programme 17

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19. Thank you for your attention alejandro.eggenschwiler@ec.europa.eu 19