1 EU assistance to South-eastern Europe new Member States and Candidate Countries DG REGIO

2 IPA : Single Instrument for Pre- accession Assistance –Integrating the 3 current pre-accession instruments + Turkey instrument plus pre-accession assistance for non-CCs (cf. CARDS) –ca billion ( ) –Distinction between –Candidate Countries (Croatia, FYROM and Turkey) –Potential CCs (Albania, Bosnia-H, Kosovo, Montenegro and Serbia) –Note: switch from potential CC status to CC status possible; ENPI countries not eligible (European Neighbourhood and Partnership Instrument) –Financial framework and strategic approach for 3- year period –MIFF - Multi-annual Indicative Financial Framework (nearly 1.4 billion average per year for ) –MIPD - Multi-annual Indicative Planning Documents –Flexibility - review

3 IPA: Objectives help strengthen democratic institutions and the rule of law, reform public administration, carry out economic reforms, promote respect for human as well as minority rights and gender equality, support the development of civil society and advance regional co-operation, and contribute to sustainable development and poverty reduction. For candidate countries, the additional objective is the adoption and implementation of the full requirements for membership, from potential candidate countries only approximation to these requirements will be requested.

4 Community assistance South-East Europe new Member States Bulgaria and Romania Structural Funds European Regional Development Fund (ERDF) Cohesion Fund (CF) European Social Fund (ESF) Western Balkans and Turkey Instrument for Pre-Accession Assistance (IPA) Candidate Countries Turkey, Croatia, FYROM Pre-candidate countries - Western Balkans Albania, B&H, Serbia, Kosovo, Montenegro

5 A little explanation of IPAs scope Institutional Building (IB) and preparation for EU fund management –Component I: IB and TA –Component II: Cross-border cooperation –Component III, IV and V: fund-oriented –III: Regional development (ERDF and CF) –IV: Human resource development (ESF) –V: Rural Development –Programmed multi-annually –mini-Structural Funds

6 Financial Allocations Bulgaria and Romania ( ) – 7 years Bulgaria: 6.67 billion Romania: billion Candidate Countries ( ) – 4 years Croatia: 590 million Turkey: 2.26 billion FYROM:300 million Pre-candidate Countries (Western Balkans) 1.85 billion Funds are essentially grants but requiring cofinancing IFIs, private or public

7 Rough indicators:

8 Main area of investment Infrastructure (IPA and CF, some ERDF) –Transport (main transport links of European dimension, investment to foster growth) –Environment (water, waste, Natura 2000) Competitiveness –Lisbon emphasis –Business support (SME!), research, innovation, ICT Regional development (more under ERDF than IPA) –urban development, local networks, tourism Human Resource development (ESF and IPA) Regional and thematic concentration

9 Key Challenges New Member States and Candidate Countries alike: tight implementation schedule strict disbursement regime (we call it n+3) delays in implementation leads to cancellation of funds Capacity to prepare and implement projects in particular at municipal/sub-national level Compliance with Procedures CCs: novelty and complexity of Commission rules nMSs: application of acquis on large scale with new beneficiaries (municipalities) pre-accession experience does not give confidence The Challenge is immense!