1. IPA II – Financial Perspective
European Union Delegation
, Skopje 1

2. What is Sector Approach?
Sector Approach is a way of working together between:
government
donors
other key stakeholders.
It is a process aiming at broadening government and national ownership over public sector policy and resource allocation decisions within the sector, increasing the coherence between policy, spending and results, and reducing transaction costs.

3. What does Sector Wide Approach entail?
A shift from stand alone projects to contribution to the development and implementation of a coherent, nationally owned programme in a given area/sector.
There is no single definition of the policy area that can be considered a sector, nor is there an exhaustive list of possible sectors.
A sector is a defined policy area under the responsibility of a line minister (following DG ELARG guidelines).

4. Uncoordinated project approach
Contrast between Sector Based Approach and Conventional Project Approach
Uncoordinated project approach
Sector Wide Approach
narrow focus on projects & narrowly defined objectives
bilateral negotiations and agreements
donor-recipient relationships with unbalanced power
parallel implementation arrangements
short-term disbursement and success of projects
blueprint approach
country holistic view on entire sector
external partners' coordination and collective dialogue
partnerships with mutual trust and shared accountability
increased use of local procedures
long term capacity/system development in sector
process oriented approach through learning by doing.

5. Sector Wide Approach main principles
Sector Budget and Medium Term perspective
Sector policy strategy
Sector and donor coordination
Institution Capacity
Performance monitoring system
Public Financial Framework
Economic Context

6. What are relevant aspects of Sector Wide Approach in the context of IPA?
The sector needs to be relevant in terms of preparation for EU accession. (N.B.: a sector is not the equivalent of a negotiation chapter. One and the same negotiation chapter can be relevant for different sectors and several chapters can be relevant for the same sector.)
International and Bilateral Donors are to be consulted before the Sector Policy Document is agreed, a look at the list of sectors covered by these other donors is helpful (but should not determine the selection of supported sectors).
"Institution building" or "alignment on the acquis" are not sectors as such but specific objectives which can be relevant for almost all sectors (except the sectors for which no further reforms are deemed necessary).

7. Objectives of IPA II (Article 2 para.1)
Support for political reforms
Support for economic, social and territorial development and reforms, with a view to a sustainable, smart and inclusive growth
Strengthening of the ability to fulfil the obligations stemming from membership (progressive alignment with and implementation of the acquis and EU structural, cohesion, agricultural and rural development funds and policies)
Regional integration and territorial cooperation involving beneficiary countries, Member States (as well as third countries under the European Neighbourhood Instrument, as appropriate)

8. Guiding principles for designing IPA II
Reinforced link between the financial assistance and the policy agenda
Contribute to the objectives of the EU 2020 Agenda
Good governance and capacity building remain core themes of financial assistance
More attention to socio-economic development and lasting impact
Stronger ownership of the reform agenda and related financial assistance

9. Important issues for IPA 2
Have a common understanding on the sector based approach
Comprehensive and inclusive multi-level sector policy dialogue is the most important element
A more differentiated approach with regards to the preparation for the absorption of EU cohesion funds
More focused support on selected sectors
A more differentiated approach with regards to implementation modalities

10. IPA II: Structure of documents
IPA REGULATION
COMMON IMPLEMENTING REGULATION
IPA IMPLEMENTING REGULATION
IPA COMMON STRATEGIC FRAMEWORK
Strategy Papers (Country / Multi-Country)
Programmes
(Country / Multi-country / CBC)
Individual or Special measures

11. Country Strategic Framework
The CSF will follow the example of the structural funds and cover all countries and all policy areas, to achieve better alignment of the financial assistance and the enlargement policy.
The CSF would be a EC owned document.

12. Country Strategy Paper (CSP)
The CSP would be more strategic and focused, based on a thorough needs assessment, preparing the country for accession.
The identified priorities must be set in a time frame of seven years, and must be compliant and relevant, since there would be only one mid-term review.
The Country Strategy Papers should be built around the four specific objectives develop for each of these objectives the three main considerations for financial assistance, i.e. the specific needs of the country concerned, its (current and to be developed) capacities and the impact on the state of preparedness for accession to be achieved by the end of the planning period in 2020.

13. CSP _ What does it mean for EU priorities, IPA and the country?
An overall objective defined for the period
several Sector Programme for an IPA beneficiary should identify what is needed to modernize a sector and align it to EU standards;
It should be based on a countries national strategies, development plans, and be underpinned by the EU’s overall enlargement policy as well as by the Accession Partnership and the SAA;
Should allow for EU integration priorities and IPA funds to be strategically planned and sequenced at an early stage.
Indicative amount for : EUR 600 million

14. Indicative list of sectors (1)
Policy Area A) Transition process and institution building
Sector: Public Administration Reforms
Subsector: PAR
Subsector: Public Financial Management
Sector: Justice Home Affairs and Fundamental Rights
Subsector: Justice and Judiciary
Subsector: Home Affairs
Subsector: Human and Fundamental Rights
Sector: Private Sector Development
Subsector: Business Environment and SME’s
Subsector: Competitiveness, Innovation, R&D
Subsector: Access to Finance
Subsector: Industrial and Business Infrastructure policy
“Non Sector”: EU Integration Facility
Support for ad-hoc Acquis needs
Support for participation in UPA’s
Indicative allocation for period : EUR million

15. Indicative list of sectors (2)
Policy Area B) Regional development
Sector: Transport and Energy
Subsector: Roads
Subsector: Railways
Subsector: Energy Infrastructure
Sector: Environment and Climate Change
Subsector: Water
Subsector: Waste
Subsector: Air
Subsector: Climate Change
Subsector: Integrated Pollution Prevention and Control
Sector: Balanced local economic and regional development
Indicative allocation for period : EUR million

16. Indicative list of sectors (3)
Policy Area C) Employment, social policies and human resources development
Subsector: Employment and employability
Subsector: Social Policies and Social Inclusion
Subsector: HRD
Indicative allocation for period : EUR million
Policy Area D) Agriculture and Rural Development
IPARD Programme
Acquis support
Indicative allocation for period : EUR million
Policy Area C) Regional and Territorial Cooperation
Subsector: CBC
Indicative allocation for period : EUR 30 million

17. Time Line for adoption of key documents
2013 February-May: Support in facilitating the drafting process of the CSP and wider stakeholder consultations:
Government WG’s input by 19th of April 2013
Government input by 30th of April 2013
CSO/EUD input by 30th of April 2013
MS, IFIs, NMS, IOs input in May 2013
Consultation with regions and municipalities on May 2013
EC would present the first official draft of the document in June 2013 for wider consultations
IPA 2014 annual programme to be adopted in parallel