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Establishing systems and administrative capacity for the effective use of EU funds The importance of capacity building in the pre-accession phase NEW OPPORTUNITIES AND NEW CHALLENGES IN THE PROCESS OF ACCESSION NEGOTIATIONS OF SERBIA WITH THE EUROPEAN UNION Belgrade, December 9th, 2014 (Dr. Peter Heil, ALTUS – Hungary) Agenda • Cohesion policy – an overview • New developments for 2014-2020 • The challenge of preparations COHESION POLICY – AN OVERVIEW 3 starting messages • Chapter 22 is not (only) about EU funds – but also about all national development policies • Preparations should start as early as possible - it is not too early now • IPA is only one piece of the puzzle – and does not prepare for everything Mission (Art. 174-175 TEU) • In order to promote its overall harmonious development, the Union shall develop and pursue its actions leading to the strengthening of its economic, social and territorial cohesion. • In particular, the Union shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions. • Member States shall conduct their economic policies and shall coordinate them in such a way as, in addition, to attain the objectives set out in Article 174. (…) • The Union shall also support the achievement of these objectives by the action it takes through the Structural Funds (…) the European Investment Bank and the other existing Financial Instruments. The EU’s main investment policy € 350 billion from Brussels € 450 billion with co-financing Main elements • • • • • • Legal framework Institutional framework Administrative capacity Programming Monitoring and evaluation Financial management and control Main elements • Legal framework – Development planning – Partnership and multi-level governance – National budget – Public Procurement – State aid – Horizontal issues • sustainable development • Equal opportunities and non-discrimination (…) Main elements • Institutional framework – Authorities to manage programmes – Intermediate bodies to implement – Financial control institutions • Administrative capacity – Substantial human resources – Skilled, trained and motivated staff Main elements • Programming – National development plan – cross-sectoral – Sector strategies – (Regional and) local development plans Policy Strategy Plan Projects Main elements • Monitoring evaluation – Target setting – Follow implementation, intervening if needed – Tracking results, learning from practice • Financial management – Transparency of management – Efficiency of administration NEW DEVELOPMENTS 2014-2020 2014-2020 • • • • • IPA Maintain focus on accession as well as development More strategic, better targetted support Leverage other funds New instruments Flexibility Cohesion policy • Contribute to EU 2020, concentrate funds • Focus on results • Improved co-ordination • Innovative instruments • Streamlined administration Concentrate all resources promoting a common agenda THE CHALLENGE OF PREPARATIONS Challenges • Complex policies and processes to master • Significant new capacity needed • Need to introduce far reaching reforms – In policy planning – Policy co-ordination – State administration – Financial management • Need to prepare future beneficiaries How to go about it? • Do not wait – push your own agenda • Set up your team – – – – – – EU accession co-ordinators IPA management bodies Ministry of Finance Development policy units Financial controllers Key local governments • Have a strategy – Mapping funds; mapping capacities; institution building; capacity building; programming; running pilot schemes; preparing key projects – Think about the big picture, too • Be ready for change Thank you for your kind attention! Peter HEIL HUNGARY [email protected] Belgrade, 8th December 2014.