1. Ex-ante conditionality and macroeconomic conditionality
Thomas Bender
ESF Evaluation Partnership
17 November 2011

2. Conditionality Why ? How ? Not new
Increase the effectiveness of cohesion policy
How ?
conditions necessary for investments to flourish: regulatory, strategic and policy frameworks are in place
sound macroeconomic policies
Not new

3. Ex-ante
conditionality

4. Ex-ante conditionality
Article 17 and – for cohesion policy - Annex IV of GPR Exception: ETC
Conditions + criteria for fulfilment : each CSF Fund
2 types :
general ex-ante conditionality: anti-discrimination, gender equality, disability, public procurement, state aid law, environmental legislation and statistical systems
thematic ex-ante conditionality: linked to the thematic objectives and based on EU policy guidance (employment guidelines, BEPGs, Commission Recommendation on active inclusion, Council Recommendation on ESL, Commission Communication on higher education,…)

5. Procedure (1)
Self-assessment by MS - for thematic ex-ante conditionality: limited to the ex-ante conditionalities for the selected IPs
Non-fulfilment: MS sets out actions to be taken (national/regional level) + timetable for their implementation in OPs and PC (summary)
Deadline for implementation: 2 years following adoption PC or (earliest date)

6. Procedure (2)
Verification of MS assessment by Commission during negotiations of PC and OPs
Non-fulfilment of conditionality:
Upon adoption of OP: suspension of part or all interim payments until satisfactory completion of actions to fulfil an ex ante conditionality.
Failure to respect the OP deadline for the completion of actions to fulfil an ex-ante conditionality = basis for suspension of payments

7. An example: access to employment
Conditionality : ALMPs are designed and delivered in accordance with the Employment Guidelines
Criteria for fulfilment:
Employment services have the capacity to and do deliver:
personalised services and active an preventive LM measures at an early stage, which are open for all jobseekers
anticipating and counselling on long-term employment opportunities created by structural shifts in the LM
transparent and systematic information on new job vacancies
Employment services have set up networks with employers and education institutes

8. Art. 21 General Provision Regulation
Macroeconomic
conditionality (MC)
Art. 21 General Provision Regulation

9. Macroeconomic conditionality
When does it apply ?
Council recommendations:
Art. 121(2) and/or Art. 148(4) TFEU
Art. 136 (1) TFEU: measures for euro zone MS
Excessive deficit procedure (EDP)
Excessive imbalances procedure (EIP)
MS benefiting from financial assistance under:
European Financial Stabilisation Mechanism (EFSM)
Facility providing medium-term financial assistance to MS BoP (non-euro MS)
Treaty establishing the European Stability Mechanism (ESM) (euro MS) (ESM loan)
Balanced and gradual system : 2 phases

10. MC Phase 1 (1)
Commission MAY request or propose amendments to PC and relevant OPs to:
support implementation of Council recommendations
maximise impact of Funds (MS receiving financial assistance)
Commission MAY suspend part or all of the payments for the programmes concerned in case of absence of satisfactory response MS within the established deadlines
Suspension lifted in case of submission requested amendments to PC/relevant OPs

11. MC Phase 1 (2)
Specific provisions for MS benefiting from financial assistance linked to an adjustment programme:
Commission may amend PC and relevant OPs without MS proposal
Commission shall become involved in the management of OPs as set out in the adjustment programme or MoU
Commission may amend the PC and relevant OP without a proposal from the MS with a view to maximize the growth and competitiveness impact of the available CSF Funds.

12. MC Phase 2
Obligation for the Commission to suspend part or all of the payments and commitments for the programmes concerned
Suspension must be proportionate and effective taking into account the economic and social circumstances of the MS concerned and respect equality of treatment between MS.
All suspensions shall be lifted without delay when the underlying cause for suspension has been addressed

13. Overview MC (1) Type of MC Phase 1 - MAY Phase 2 - SHALL
Lifting suspension phase 2
CSRs ex Art. 121(2) and/or 148(4) TFEU
Recommendation NA
Art. 136(1) TFEU
Measures to euro MS
Non compliance with measures
Compliance with measures

14. Overview MC (2) Type of MC Phase 1 - MAY Phase 2 - SHALL
Lifting suspension phase 2
EDP
Council Recommendation ex Art. 126(7) TFEU
Council Decision ex
Art. 126(8) TFEU and Art. 126(11) TFEU
EDP is held in abeyance or EDP has ended (Art. 126(12) TFEU)
EIP
Council Recommendation ex Art. 7(2) new Regulation on prevention and correction of macroeconomic imbalances
Council conclusion: ex Art. 8(3) - MS has on 2 successive instances not submitted a sufficient corrective action plan or Decision ex Art. 10(4) : non-compliance
Council endorsement of the corrective action plan or EIP is placed in abeyance or EIP has been closed

15. Overview MC (3) MS benefiting from financial assistance
Phase 1 – MAY or unilaterally
Phase 2 - SHALL
Lifting suspension phase 2
European Financial Stabilisation Mechanism (EFSM)
Financial assistance is made available
MS has not taken measures to implement adjustment programme – no disbursement
MS has taken measures to implement adjustment programme - disbursement
Facility providing medium-term financial assistance to MS BoP (non-euro MS)
Treaty establishing the European Stability Mechanism (ESM) (euro MS)
Financial assistance is made available in form of an ESM loan
Conditions linked to loan are not fulfilled – no disbursement
Conditions linked to loan are met –
disbursement of stability support

16. MC : Re-budgeting suspended commitments
Simultaneously with lifting of suspension, suspended commitments will be re-budgeted in accordance with Art. 8 MFF Regulation.
Art 8 MFF Regulation: the Council shall decide on a transfer of suspended commitments to the following years. Suspended commitments of year n may not be re-budgeted beyond year n+2.

17. Thank you

18. MC Phase 1 : Triggers
Commission MAY request amendments to Partnership Contracts (PC) and relevant OPs:
Country specific recommendation (Art. 121(2) and/or Art. 148(4) TFEU)
measures addressed to euro MS ex Art. 136(1) TFEU
EDP: Council recommendation ex Art. 126(7) TFEU
EIP: Council recommendation ex Art. 7(2) of the new regulation on the prevention and correction of macroeconomic imbalances
Programme countries: MS receiving financial assistance under one of the following mechanisms:
Facility providing medium-term financial assistance to MS BoP (non-euro MS)
European financial stabilisation mechanism (EFSM)
Treaty establishing the European Stability Mechanism (ESM) (euro MS)

19. MC Phase 2 : Triggers
Commission SHALL suspend part or all of the payments and commitments for the programmes concerned in case of
Council decision/conclusion :
no compliance with the specific measures ex Art. 136(1) TFEU
EDP: no effective action taken by MS : Council decision ex Art. 126(8) TFEU or Art. 126(11) TFEU
EIP: no submission of a sufficient corrective action plan (only 2nd decision) (Art. 8(3) of the new EIP Regulation) or non-compliance (Art. 10(4) of the new EIP Regulation)
Commission decision: no implementation of the adjustment programme and no disbursement
Conclusion of the ESM Board : conditionality linked to ESM loan is not met and no disbursement

20. MC : Lifting suspension
MS has amended PC and relevant OPs as requested and, where applicable,
MS complies with measures ex Art. 136(1) TFEU
EDP : EDP is held in abeyance or EDP procedure has ended (Art. 126(12) TFEU)
EIP: Council endorsement of the corrective action plan or EIP is placed in abeyance or EIP has been closed
Programme countries: MS has taken measures to implement the adjustment programme and disbursement is authorised or, in case of ESM loan, conditionality linked to it is fulfilled and disbursement decided
Simultaneously, re-budgeting of suspended commitments