ESF FINANCIAL EXECUTION ESF Technical Working Group Meeting June 2018 ESF FINANCIAL EXECUTION ESF Technical Working Group Meeting June 2018 DG EMPL – EGF, Shared Management

Budget Execution as of 31/05/2018 Programming period 2007- 2013 Budget Execution as of 31/05/2018 Budget Line Payment Appropriations (Million Eur) Consumption Consumption vs. (%) A B C=B/A CONV. 690 153 22,2% COMP. 210 108,8 51,8% Total 900 261,8 29,1% 2

2007-2013 State of play of closure as of 31/05/2018 Final Control Reports/Closure Declarations: Accepted 76 With the MS for providing more information / correction 8 EC analysis is ongoing after resubmission 19 On the spot audit work is necessary 1 For the Final Implementation Reports: Accepted 107 With the MS for correction 6 EC analysis is ongoing /after resubmission 5 Closure letters: Pre-closure letter under preparation 6 Pre-closure letter signed 63 MS replies on pre-closure letter 60 Closure letters under preparation and validation 30 Closure letters signed 22

2007-2013 State of play of closure as of 31/05/2018 Country Allocation Initial RAL at 31/03/2017 Payments requested Payments processed Foreseen recoveries RAL to be de-committed AT 524,412,560.00 26.220.628,00 19.811.433,38 2.607.000,00 0,00 BE 1,072,220,381.67 53.611.018,77 51.395.264,38 -2.238.503,92 BG 1,179,738,061.79 58.986.902,89 57.352.953,61 CY 119,769,154.00 5.988.457,70 CZ 3,672,830,865.63 183.641.543,88 114.753.957,04 -7.690.998,69 63.855.570,64 DE 9,357,643,954.62 537.732.986,27 448.665.334,12 272.875.108,93 -36.840.216,90 DK 254,788,619.00 12.739.430,95 EE 391,517,329.00 19.575.866,45 ES 7,930,858,085.52 400.839.242,21 384.218.443,52 147.566.253,57 -5.582.037,85 FI 618,564,064.00 30.928.203,20 30.815.820,42 30.815.140,06 FR 5,494,547,990.00 274.727.399,50 265.152.416,99 -5.889.412,42 5.989.640,39 GR 4,363,800,403.00 HR 152,413,106.60 10.949.592,47 4.615.854,36 3.004.801,54 HU 3,612,105,278.61 180.605.265,50 173.213.403,88 6.781.300,21 IE 375,362,370.00 18.768.118,50 IT 6,951,135,372.53 534.917.884,25 460.855.550,90 17.325.928,40 -1.597.472,64 49.324.640,81 LT 1,028,306,727.00 51.415.336,35 50.722.512,85 LU 25,243,666.00 1.262.183,30 LV 583,103,717.00 29.155.185,85 MT 112,000,000.00 5.600.000,00 NL 830,002,737.00 41.500.136,85 35.111.035,01 PL 10,007,397,937.00 500.369.896,85 PT 6,853,387,865.00 342.669.393,25 RO 3,408,041,077.12 410.706.928,42 116.758.124,78 185.126.882,01 SE 691,551,158.00 34.577.557,90 28.214.687,56 SI 755,699,370.00 37.784.968,50 SK 1,484,030,337.88 74.201.516,78 14.347.430,57 -13.639.304,29 59.854.086,21 UK 4,490,827,142.67 224.541.356,82 52.845.283,48 -166.812.451,27 2.872.585,98 TOTAL 76,341,299,330.64 4,104,017,001.41 3.289.844.933,54 1.553.185.597,16 -240.290.397,98 376.809.507,79

Budget Execution as of 31/05/2018 Programming period 2014 - 2020 Budget Execution as of 31/05/2018 Fund Initial Payment Appropriations (Million Eur) Recoveries 2017 Total Payment Appropriations Consumption Consumption vs. Payment Appropriations (%) A B C=A+B D E=D/C ESF 9,925 1,055.4 10,980.4 2,001.9 18.2% YEI 600 1.5 601.5 361.4 60.1% FEAD 400 6.4 406.4 143.4 35.3% Total 10,925 1,063.3 11,988.3 2,506.7 20.9% 5

ESF/YEI payments by month as of 31/05/2018

FEAD interim payments by month as of 31/05/2018 406

2014-2020 ESF Financial Execution as of 31/05/2018 Country Interim payments / Total Allocation % Austria 7,49% Belgium 11,15% Bulgaria 11,41% Croatia 3,35% Cyprus 6,02% Czech Republic 12,79% Denmark 8,23% Estonia 15,47% Finland 23,03% France 10,85% Germany 14,81% Greece 21,72% Hungary 6,57% Ireland 0,00% Country Interim payments / Total Allocation % Italy 6,13% Latvia 12,31% Lithuania 16,96% Luxembourg 30,50% Malta 5,10% Netherlands 15,29% Poland 12,33% Portugal 18,19% Romania 0,64% Slovakia 11,17% Slovenia 8,34% Spain 4,62% Sweden 6,78% United Kingdom 5,73% TOTAL 10,32%

2014-2020 YEI Financial Execution as of 31/05/2018 Country Interim payments / Total Allocation % Belgium 15,46% Bulgaria 41,14% Croatia 15,25% Cyprus 14,24% Czech Republic 28,22% France 22,10% Greece 27,04% Hungary 62,83% Ireland 0,00% Italy 21,83% Country Interim payments / Total Allocation % Latvia 62,59% Lithuania 47,37% Poland 64,66% Portugal 52,19% Romania 0,00% Slovakia 11,60% Slovenia 84,87% Spain 22,38% Sweden 29,82% United Kingdom 1,04% TOTAL 25,33%

2014-2020 FEAD Financial Execution as of 31/05/2018 Country Interim payments / Total Allocation % Austria 23,90% Belgium 38,95% Bulgaria 30,95% Croatia 7,18% Cyprus 4,22% Czech Republic 11,51% Denmark 18,58% Estonia 38,76% Finland 25,40% France 14,32% Germany 15,75% Greece 6,95% Hungary 2,38% Ireland 10,35% Country Interim payments / Total Allocation % Italy 11,91% Latvia 26,02% Lithuania 25,95% Luxembourg 33,98% Malta 21,90% Netherlands 12,95% Poland 24,42% Portugal 9,17% Romania 15,64% Slovakia 15,12% Slovenia 29,20% Spain 40,57% Sweden 8,14% United Kingdom 0,00% TOTAL 19,57%

2014-2020 ESF/YEI Financial Execution. vs 2014-2020 ESF/YEI Financial Execution vs. the historical data for 2007-2013 Country Interim payments / Total Allocation % 31/05/2018 31/05/2011 Austria 8,32% 31,43% Belgium 12,99% 18,56% Bulgaria 13,83% 7,00% Croatia 4,65% 2,31% Cyprus 8,34% 12,91% Czech Rep. 14,28% 7,20% Denmark 9,42% 15,36% Estonia 17,02% 33,54% Finland 25,73% 21,72% France 13,29% 17,60% Germany 16,46% 22,57% Greece 27,98% 11,05% Hungary 7,95% 5,29% Ireland 0,00% 34,94% Country Interim payments / Total Allocation % 31/05/2018 31/05/2011 Italy 8,85% 13,01% Latvia 16,11% 36,89% Lithuania 19,77% 22,42% Luxembourg 33,89% 11,60% Malta 5,67% 7,26% Netherlands 17,09% 10,68% Poland 14,88% 25,08% Portugal 21,47% 32,78% Romania 0,70% 1,52% Slovakia 12,49% 12,18% Slovenia 10,48% 14,28% Spain 9,05% 10,34% Sweden 8,82% 18,62% UK 6,20% 25,50% TOTAL 12,70% 17,76% 11

Designation of Authorities Country Total OPs Designated Percentage Austria 1 100% Belgium 4 Bulgaria 3 Croatia Cyprus Czech Republic Denmark Estonia Finland 2 France 33 Germany 17 Greece Hungary 5 Ireland   0% Country Total OPs Designated Percentage Italy 29 100% Latvia 1 Lithuania Luxemburg Malta Netherlands Poland 17 Portugal 10 Romania 2 Slovakia Slovenia Spain 23 Sweden United Kingdom 6 TOTAL 187 186 99% FEAD (27): AT, BE, BG, CY, CZ, DE, DK, EE, ES, FI, FR, GR, HR, HU, IT, IE, LT, LV, LU, MT, NL, PL, PT, RO, SE, SI and SK

2014-2020 ESF/YEI N+3 de-commitment risk situation as of 31/05/2018 Country Total remaining amount Remaining amount/ Total Committed % Austria 33.020.209,43 29,24% Belgium 42.966.501,79 13,96% Bulgaria 112.176.419,18 23,27% Croatia 174.284.503,83 41,18% Cyprus 56.447.001,33 64,97% Czech Rep. 314.758.636,08 23,89% Denmark 2.183.645,31 5,20% Estonia 0,00 0,00% Finland 156.557,65 0,05% France 795.413.493,21 21,68% Germany 234.971.751,31 11,24% Greece Hungary 824.054.456,81 21,64% Ireland 127.651.258,96 60,56% Country Total remaining amount Remaining amount/ Total Committed % Italy 1.740.465.133,18 35,24% Latvia 115.226.014,50 10,64% Lithuania 0,00 0,00% Luxembourg Malta 10.716.603,00 39,62% Netherlands Poland 988.631.528,56 11,32% Portugal 124.594.001,17 2,51% Romania 628.516.067,89 51,41% Slovakia 26.610.632,70 4,05% Slovenia 203.086.699,10 26,19% Spain 991.820.679,33 33,74% Sweden 1.825.256,59 0,74% UK 671.140.519,00 45,32%

2014-2020 FEAD N+3 de-commitment risk situation as of 31/05/2018 Country Total remaining amount Remaining amount/ Total Committed % Austria 0.00% Belgium Bulgaria Croatia 3.002.254,24 30,17% Cyprus 452.939,34 42,26% Czech Rep. 788.741,56 12,44% Denmark Estonia Finland France 1.306.249,62 0,96% Germany Greece 23.742.080,47 31,10% Hungary 10.806.828,16 42,36% Ireland 1.062.378,44 17,17% Country Total remaining amount Remaining amount/ Total Committed % Italy 19.719.369,71 10,82% Latvia 0.00% Lithuania Luxembourg Malta Netherlands 70.523,50 6,58% Poland Portugal 10.582.428,97 22,01% Romania Slovakia Slovenia Spain Sweden UK 637.907,40 59,52%

Annual Accounts process Following the Commission's assessment of the accounts packages acceptance decisions on the 2016-2017’s annual accounts were adopted by the 31/05: Form of the decisions: Letter from the Director General of the Lead DG accepting the accounts for the OPs mentioned in the letter. [FEAD has a separate letter (decision)] In annex to the letter  calculation reports by OP and by Fund with the amount to be paid or to be recovered. In one case (Poland) the accounts were adopted with follow-up.

Annual Accounts process Next step: the Commission issues the financial transaction  payment or recovery In case of recovery the offsetting procedure as announced to the MS with letter Ares(2018) 360724 will be applied against the 2018’s annual pre-financing. This would result in one single net positive flow of cash to the Member States (2018 annual pre-financing minus amount to be recovered following the accounts calculation).

Balance of 2016-2017’s annual accounts ESF/YEI Country Balance Austria -10,908,505.4 Belgium -30,848,740.4 Bulgaria -33,647,634.7 Croatia -39,249,495.0 Cyprus -3,191,504.4 Czech Rep. -75,900,226.2 Denmark -4,088,887.7 Estonia -10,017,835.4 Finland -6,364,655.2 France -159,800,661.8 Germany -155,204,582.7 Greece -87,814,387.7 Hungary -119,397,600.0 Ireland -15,280,768.4 Country Balance Italy -254,438,859.6 Latvia -12,165,392.4 Lithuania -25,335,476.4 Luxembourg -240,417.7 Malta -2,612,920.9 Netherlands -11,335,326.7 Poland -287,590,985.4 Portugal -156,841,474.3 Romania -120,748,628.1 Slovakia -170,909,147.8 Slovenia -16,823,691.4 Spain -213,525,403.5 Sweden -17,375,323.8 UK -115,168,049.1 TOTAL: -2,156,826,581.9

Balance of 2016-2017’s annual accounts FEAD Country Balance Austria 223,673.0 Belgium 2,082,350.2 Bulgaria 1,029,331.0 Croatia 10,654.2 Cyprus 3,659.2 Czech Rep. 119,475.4 Denmark 11,442.9 Estonia 2,308.3 Finland 322,209.7 France 1,621,624.4 Germany 217,715.7 Greece 1,418,599.1 Hungary 91.0 Country Balance Italy 5,964,823.8 Latvia 423,793.1 Lithuania 847,937.0 Luxembourg 76,281.8 Malta 40,076.5 Netherlands 8,296.1 Poland 4,849,131.3 Portugal 1,777,051.9 Romania 301,400.0 Slovakia 345,067.7 Slovenia 388,483.3 Spain 17,902,618.3 Sweden 12,681.1 TOTAL: 40,000,775.9

2014-2020 - Article 112 CPR reporting MS forecasts of payment applications Accuracy and timeliness of the information provided by MS are a necessary condition for proper budget management MS forecasts end-of-June 2017 accuracy (94% for ESF/YEI) to be maintained  reliable forecasts will be an important input in the Commission analysis of the payment needs For the YEI the payment forecast should include both the YEI specific allocation and the ESF matching contribution 19

2014-2020 - Article 112 CPR reporting Reminder–implementation reporting principles ESF reporting  shall include ESF allocation only, without the matching support for YEI. YEI reporting  amounts under YEI shall include both, the specific allocation for the YEI and the matching ESF support. If YEI programmed as part of a priority axis (in accordance with point (c) of Article 18 of ESF Regulation (EU) No 1304/2013)  the information has to be provided separately from the other part of the priority axis. 20

2014-2020 – Article 112 CPR reporting Definition of SELECTED OPERATIONS A common national definition of “operations selected” to be used consistently under national and regional management systems from year to year. The Commission understanding of “operations selected” : operations selected by the MA or its delegated bodies following a selection process. typically involves a grant decision or a document setting out the conditions for support in accordance with Article 125(3) (c) CPR (e.g. a grant letter, or other forms of confirmation of inclusion of a project in the programme). suggestion: count project financing offers accepted by the beneficiaries. “Operations selected” not restricted to projects where public procurement contracts are signed or only those projects with expenditure incurred. 21