THE EU DELEGATION AND IPA ASSISTANCE IN SERBIA

EU Delegation in Serbia 102 staff: 3 rd in the World ≈ € 200 million / year in centralized management 1st in the World

What we do History: : establishment of the Delegation in the then Socialist Federative Republic of Yugoslavia (SFRY) : low-level presence of the international community, until the fall of the Milosevic regime Four missions: -Developing political and economic relations between the EU and Serbia -Helping Serbia to integrate into the European mainstream, with the prospect of becoming a member of the EU -Informing the local authorities, institutions, media and citizens about the integration process -Managing financial assistance programmes Two instrument: -Annual Progress Report -IPA Funds

Relationship between the EU and Serbia Historical Overview  1999: Stabilisation and Association Process (SAP)  2000: fall of the Milosevic regime  2003: - “European perspective for the Western Balkans” (Thessaloniki Summit) - EU-Serbia Enhanced Permanent Dialogue (EPD)  : negotiations and signature of a Stabilisation and Association Agreement (SAA) called off in 2006/2007 because of an unsatisfactory co- operation of Serbia with the ICTY.

Relationship between the EU and Serbia The SAA: 10 Titles  Political Dialogue  Regional Cooperation  Free movement of goods (free trade in industrial products after 5 years, liberalisation in Agricultural and Fishery products)  Workers, establishment, services, capital  Approximation programme to EU acquis and Enforcement of Law and Competition (first fundamental elements of the internal market)  Justice, Freedom, and Security  Cooperation Policies  Financial Cooperation (IPA , macro-financial assistance)

Relationship between the EU and Serbia Today – A Political Momentum – 19 December 2009: Visa Liberalization 22 December 2009: Serbian application for EU membership 1 February 2010: entry into force of the Interim Agreement. The Office of the ICTY Prosecutor is satisfied with Serbia’s co- operation.  The first Interim Committee took place on 2 March 2010, in parallel with EPD sectoral meetings.

EU Funds and Assistance in Serbia IPA History: : CARDS managed by the European Agency for Reconstruction -2007: Instrument for Pre-accession Assistance (IPA) implemented by the Delegation Programming: -European Partnership (2008) by the European Council -Multi-Annual Indicative Programme by the European Commission -Annual programme: drafted by Serbian Authorities adopted by the European Commission -Financing Agreement signed by both

EU Funds and Assistance in Serbia Contracts Portfolio  € 430 million contracts ongoing (number of contracts: 478)  € 420 million tenders ongoing or about to be launched (IPA 2009 and 2010)  € 850 million in total  IPA 2007, 2008, 2009, 2010…  IPA 2011 IPA Committee end of 2010  IPA 2012 Programming should start in last quarter of 2010

Serbia: a country in transition Current situation: the financial and economic crisis Crisis  Reduction of staff in Serbian Administration  Higher unemployment  Slow economic growth Rotation of staff / low salaries (average net monthly salary in Serbia: 340 euros)

The Instrument for Pre-accession Assistance An integrated pre-accession instrument to assist candidate (Croatia, the former Yugoslav Republic of Macedonia, Turkey) and potential candidate countries (Albania, Bosnia and Herzegovina, Serbia, Montenegro, Kosovo under UNSCR 1244) Replaces Phare, ISPA, SAPARD and Turkey pre-accession instruments, as well as CARDS Financial envelope (2007–13): 11.5 billion € (current prices)

IPA Regulatory framework IPA = Council (Framework) Regulation No 1085/2006 of 17 July 2006 (OJ L 210 of 31 July 2006) + Commission (Implementing) Regulation No 718/2007 of 12 June 2007 (OJ L 170 of 29 June 2007)

Structure of IPA: 5 components Single framework, differentiated approach All countries: I.Transition Assistance and Institution Building II.Cross-Border Co-operation In addition, for Candidate countries: III.Regional Development IV.Human Resources Development V.Rural Development

Scope of the Assistance ● Strengthening of democratic institutions ● Promotion and protection of human rights and fundamental freedoms ● Development of civil society ● Social inclusion ● Public administration reforms ● Economic reforms Reconciliation and reconstruction Participation in Community programmes and Agencies Cross-border cooperation

A 3-level programming framework POLITICAL AND FINANCIAL FRAMEWORK Multi-annual Indicative Financial Framework (MIFF) by country and by component Multi-annual Indicative Planning Document (MIPD) by country for all relevant components Comp IComp IIComp IIIComp IVComp V National or Regional Programmes CBC Programme Operational programmes/ Large projects Operational programme Rural Development programme

Multi–annual Indicative Planning Documents ● The strategic cornerstone of IPA programming Country–based MIPD covers all components applicable to the country, ensuring the necessary coherence between components SWAp = sector based approach Also one MIPD for the Multi–beneficiary programmes Prepared by the Commission, in close consultation with the beneficiary country(ies) As the MIFF, has a 3–year horizon and is subject to annual review

Component I (TAIB) Scope of the TAIB component: ● Strengthening of democratic institutions ● Development of civil society ● Promotion and protection of human rights and fundamental freedoms ● Enhance administrative and judicial capacity ● Economic reform ● Reconciliation and reconstruction (WB) ● Economic and social development (in particular in potential candidates)

Component I (TAIB) Programming (1) Annual National Programmes: ● Prepared by national authorities ● Approved by the Commission ● Implemented:  decentralised management (currently in Croatia and Turkey, soon in the former Yugoslav Republic of Macedonia): by national authorities  centralised management (remaining countries): by the EC Delegation

Component I (TAIB) Programming (2) Annual Multi-beneficiary Programmes: ● Prepared by the Commission (in consultation with beneficiary countries) ● Implemented:  Centralised management: by the Commission (HQ)  Joint Management: by the Commission together with IFIs

Tools for the TAIB Component: ● Administrative cooperation measures ● Twinning ● Technical assistance ● Investment in regulatory infrastructures ● Grant schemes ● Project preparation facilities ● Implementation of finance facilities in co-operation with IFIs ● Participation in Community programmes and Agencies Component I (TAIB) Programming (3)

Component II (CBC) Two strands: ● CBC at borders between Member States and candidates/potential candidates (i.e. EU external borders) ● CBC at borders between candidates/potential candidates (i.e. Western Balkan “internal” borders) In addition: ● IPA Component II can financially support, as appropriate, the participation of beneficiary countries in ERDF Territorial Co-operation transnational programmes and/or in ENPI sea basins programmes (only applicable to Turkey)

Component II (CBC) Scope of the CBC component: ● Strengthening good neighbouring relations (WB: reconciliation) through joint local and regional initiatives in border areas ● Economic and social development of border areas … but also: ● Prepare beneficiary countries to implement Structural Funds Territorial Cooperation objective (learning by doing) Hence: ● IPA CBC implementing rules are mirroring those of the Territorial Cooperation objective of Structural Funds

Component II (CBC) Programming Multi-annual cross-border programmes ● Jointly prepared by national authorities ● Approved by the Commission ● Implemented:  CBC at EU borders: by Member States (shared management)  CBC between WB countries and participation in ERDF or ENPI programmes: National authorities (decentralised management) or EC Delegations (centralised management)

Components III and IV (Candidate countries) Component III - Regional Development>>ERDF Component IV – Human Resources Dev.>>ESF Component V – Rural Development>>EARDF (IPARD)

Components III, IV and V Programming Candidate countries only Multi–annual operational programmes: ● Prepared by national authorities ● Approved by the Commission ● Implementation:  National authorities (decentralised management required).  Component V is implemented with Commission ex-post control only

Management forms other than decentralised Centralised management (Component I and - partly – II) :  by EC Delegation (“deconcentrated”) when country is not ready yet for decentralisation  management by Commission HQ (e.g. in the case of multi-beneficiary programmes) Joint management (Component I)  with international organisations Shared management (Component II)  CBC with Member States

Institutional framework for decentralised management ● National IPA Coordinator (NIPAC): overall coordination ● Strategic Coordinator: of Components III and IV ● Competent Accrediting Officer (CAO): issues, monitors, suspends or withdraws accreditation NAO and NF ● National Authorising Officer (NAO): head of the National Fund and responsible for the IPA management and control system (accreditation of operating structures, financial corrections, annual statement of assurance…) ● National Fund (NF): payment tasks ● Operating Structure (OS): management and implementation of assistance per component or programme ● Audit Authority (AA): verifies effective and sound functioning of the management and control system (annual opinions)

Progressive steps towards “full” decentralisation ● In the beginning, ex ante controls by the EC Delegation, progressively removed if and when systems operate satisfactorily: beneficiary country to establish a roadmap towards “full” decentralisation (ex post controls only) ● Sensitive issues : financial management, audit and control, public procurement, staffing

Future funds...  Cohesion Policy  Structural Funds  Regions in the EU  Financial perspectives  Terminology: NSRF, Ops, management authority, paying agency, N+2

Thank you for your attention (And see you soon in the EU!)