Ex ante conditionalities in cohesion policy: How do they work ? What is the added value? What is proposed for the future cohesion policy? Jolanta Świątkowska European Commission: DG Regional and Urban Policy. Better Implementation Unit

Content of the presentation What are ex ante conditionalities (ExAC) in cohesion policy? Types of ExAC. How do they work? Process and results. What is the value added of ExAC? What is proposed for post 2020 cohesion policy ?

What are ExAC in cohesion policy? EU cohesion policy budget for 2014-20 period EUR 340 billion – main investment policy tool of the EU. It includes the European Regional Development Fund (ERDF), the European Social Fund (ESF) and the Cohesion Fund (CF) – which make 75% of the European Structural and Investment Funds (ESI Funds) and 1/3 of EU budget. ExAC are key reform element of 2014-20 cohesion policy to ensure effective and efficient EU spending.

Types of ExAC ExAC address: policy and strategic frameworks regulatory frameworks administrative capacity of the institutions implementing ESI Funds' programmes The Common Provisions Regulation for ESI Funds (Regulation (EU) No 1303/2013) divides ExAC into 2 groups: 7 general ExAC – cross-cutting, horizontal issues 29 thematic ExAC – sector-specific, linked to investment priorities.

Examples of ExAC and criteria linked to policy/strategic frameworks Thematic ExAC Research and Innovation Smart specialisation strategy ICT development A strategic policy framework for digital growth Broadband A next generation network plan Transport A comprehensive transport strategy

Examples of regulatory ExAC and criteria for fulfilment Thematic ExAC Energy efficiency in buildings Relevant articles of EU directives have been transposed. Renewable energy Water sector Waste sector

Examples of ExAC and criteria linked to institutional/administrative capacity Thematic ExAC Institutional capacity and efficient public administration Development and implementation of a strategy to reinforce MS public authorities' administration. Transport Measures to ensure the capacity of intermediary bodies and beneficiaries to deliver the project pipeline.

Examples of ExAC/criteria linked to institutional/administrative capacity General ExAC Public procurement law Administrative capacity to apply Union procurement law in the area of the ESI Funds State aid rules Administrative capacity to apply Union state aid rules in the area of the ESI Funds Effective application of environmental impact and strategic environmental assessment legislation Administrative capacity to apply the environmental impact and strategic environmental assessment legislation

How do ExAC work? Process and results Around 75% of all ExAC were fulfilled at the adoption of the ESIF programmes When an ExAC was not fulfilled by a Member State/region, an action plan was set up, in view of completing it by end 2016. This resulted in around 700 action plan for cohesion policy, of which only 1% is still not completed, in the following sectors: waste sector water sector transport public administration.

What is the value added of ExAC What is the value added of ExAC? Types of benefits (Commission Staff Working Document (2017) 127 final of 31.3.2017) Better targeting of support from ESI Funds and from other public funding Many ExAC required existence of strategic frameworks resulting in better tailoring of the selection criteria for projects to the needs and in better prioritisation of investments Improving the investment environment in the EU Addressing horizontal barriers (public procurement, state aid, Strategic Environmental Assessment, Small Business Act) and sector-specific barriers (transport, smart energy, digital and waste sectors) that hinder investment.

Types of benefits - continued Supporting structural changes in Member States and Regions Catalysts for policy reforms and legislative changes in a number of sectors (health, education, labour market, social inclusion, research and innovation, transport, etc) Accelerating transposition and implementation of EU acquis Several ExAC are linked to transposition and implementation of the EU legislation and rules (public procurement, state aid, environmental legislation, energy efficiency, etc). Improving administrative capacity and coordination ExAC contributed to improving the institutional and administrative capacity of public institutions and stimulated coordination within public administrations and with stakeholders.

What is new in the Commission proposal (COM(208) 375 final) on ExAC - “enabling conditions” for post 2020 cohesion policy ? Fewer conditions: 7 → 4 horizontal, 29 → 16 thematic Fulfilment needed for receiving payments from the Commission for corresponding expenditure Fulfilment required throughout the implementation period No action plans in the programmes in case of non-fulfilment Application of the conditions in selection of projects.

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