Political guidelines for the next European Commission EU budget for the future Regional development and cohesion - 2019-09-20, Klaipėda
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Political guidelines for the next European Commission EU budget for the future Regional development and cohesion 2019-09-20, Klaipėda
Political guidelines for the next
European Commission 2019-2024
1. A European Green Deal
• Becoming the first climate-neutral continent
• 2050 climate-neutrality target enshrined into law
• More ambitious targets for 2030
• European Climate Bank
• Biodiversity Strategy
• Zero-pollution ambition
• New Circular Economy Action Plan
Political guidelines for the next
European Commission 2019-2024
2. An economy that works for people
• Supporting SMEs
• Completing Capital Markets and Banking Union
• Deepening Economic and Monetary Union
• Integration of Sustainable Development Goals
• European Pillar of Social rights
• New anti-discrimination legislation
• Fair taxation
Political guidelines for the next
European Commission 2019-2024
3. A Europe fit for the digital age
• Investment and joint standards for key
technologies
• Digital Services Act
• Digitalisation of the Commission
• European Education Area by 2025
• Digital Education Action Plan
• Increasing Erasmus+ budget
Political guidelines for the next
European Commission 2019-2024
4. Protecting our European way of life
• European Rule of Law Mechanism
• Fully functioning Schengen Area
• New Pact on Migration and Asylum
• Reinforced Frontex
• Enabling European Public Prosecutor’s Office
• Strengthening Customs Union
Political guidelines for the next
European Commission 2019-2024
5. A stronger Europe in the world
• Free and fair trade
• Efforts to reform the World Trade Organization
• Comprehensive strategy on Africa
• European perspective of the Western Balkans
• Strategic partnership with the UK
• European Defence Union
Political guidelines for the next
European Commission 2019-2024
6. A new push for European democracy
• A greater say for Europeans
• Strengthening the role of the European Parliament
• Improving the lead candidate system
• Independent ethics body for the EU institutions
• European Democracy Action Plan
Brexit: current timeline
Brexit
• Uncertainty at the UK side: British PM determination to leave
even without a deal vs British Parliament decision to block
no-deal Brexit
• EU would be likely to grant UK another extension if
requested and justified
• The Commission would be willing to consider alternative
proposals that protect integrity of Ireland and Single Market
• There is a real risk of no-deal Brexit
• The businesses and citizen are advised to prepare for all
possible outcomes -> Commission communications,
checklists, etc.
• In a no-deal case:
• The relations between the UK and EU would be regulated by
international law and WTO rules
• Temporary contingency measures would applyMultiannual Financial Framework 2021-2027
Key issues in the negotiations
MODERNISATION
MFF
2021-2027
OVERALL SIZE NATIONAL
National ALLOCATIONS
contributions Cohesion & agricultureMultiannual Financial Framework 2021-2027
The size of the EU budget as
percentage of Gross National
Income (GNI)
Commitments ceiling
in % EU GNI
European
Development Fund
*2014-2020 estimated commitments
(UK expenditure excluded) in % EU27 GNI
** European Development Fund
integrated (“budgetised”)
Source: European Commission
EU-28Multiannual Financial Framework 2021-2027 Evolution of main policy areas in the EU budget
Multiannual Financial Framework 2021-2027 Timeline of the negotiations Autumn 2019 – timely agreement remains the objective In line with the June European Council conclusions for an exchange of views in October 2019, aiming for an agreement before the end of the year
Cohesion and regional development:
modern, dynamic policy
For all regions Modern investment Simple, flexible,
Balanced and fair Focus on transition to dynamic
"Berlin method" smart, low-carbon 7 funds, 1 regulation
economy (50% shorter)
75% to poorest
regions, where most Stronger conditions & link 80 key administrative
needed to European Semester simplifications
Tackling emerging Comprehensive Faster implementation
needs and economic performance data (in near (return to n+2)
transition across the real time), open data
EU Responsive to
emerging needs
(migration, economy)The main driver of changes: change in GDP per capita
2007-2009 vs 2014-2016
40
Change in GDP per capita in % points
30
20
10
0
-10
-20
-30
EL CY ES IT FI NL PT SI HR SE FR BE DK AT CZ LU BG HU DE SK EE LV RO PL MT LT IENew regional eligibility map 2021-2027
Allocations by Member State
Change from Change from
Member 2021-27 allocation Aid intensity
2014-2020 period 2014-2020 period
State (billions, 2018 prices) (EUR/head)
(%) (%)
BG 8.9 8 178 15
RO 27.2 8 196 17
HR 8.8 -6 298 0
LV 4.3 -13 308 0
HU 17.9 -24 260 -22
EL 19.2 8 254 12
PL 64.4 -23 239 -24
LT 5.6 -24 278 -12
EE 2.9 -24 317 -22
PT 21.2 -7 292 -5
SK 11.8 -22 310 -22
CY 0.9 2 147 -5
SI 3.1 -9 213 -11
CZ 17.8 -24 242 -25
ES 34.0 5 105 3
MT 0.6 -24 197 -28
IT 38.6 6 91 5
FR 16.0 -5 34 -9
FI 1.6 5 42 2
BE 2.4 0 31 -5
SE 2.1 0 31 -6
DE 15.7 -21 27 -20
DK 0.6 0 14 -3
AT 1.3 0 21 -4
NL 1.4 0 12 -3
IE 1.1 -13 33 -17
LU 0.1 0 16 -14
EU27 331 -9.9 106 -11Policy objectives
11 objectives simplified and consolidated to 5: 2 horizontal objectives:
1. A smarter Europe (innovative & smart
economic transformation) Administrative capacity
building
2. A greener, low-carbon Europe (including
energy transition, the circular economy, climate Co-operation between
adaptation and risk management) regions and across
borders (embeds co-
3. A more connected Europe (mobility and ICT operation in mainstream)
connectivity)
4. A more social Europe (the European Pillar of
Social Rights)
5. A Europe closer to citizens (sustainable
development of urban, rural and coastal areas
and local initiatives)ERDF thematic concentration
Maintaining spending in the key areas for growth and jobs
At national level based on GNI per head => flexibility
For countries minimum % PO1 minimum % PO2 ("greener,
with: ("smarter Europe") low carbon Europe")
GNI below 75% 35% 30%
GNI 75-100% 45% 30%
GNI above 100% 60% PO1 + PO2 min. 85%
6% of budget to urban development (can overlap with above)Alignment with the EU economic
governance (European Semester)
o Strong link in two directions
• Policy analysis guides Funds’ investments
• Funds’ investments deliver policy results
o Expected benefits
• More consistency between different policies
• Higher impact
• Transparency
o Country reports 2019 for all Member States include Annex D
• Focus of the 2019 EC country analysis on regional and
territorial disparities…
• …leading to relevant investment needs and guidanceEmbedding macro-regional & sea-basin strategies in
mainstream programmes
Intensify cooperation with other
regions and Member States as
part of mainstream programmes.
Joint opportunities and common
challenges for the Baltic Sea
Region (EUSBSR):
1) Research and innovation
2) SME competitiveness
3) Digitalization
4) Climate change adaptation
and risk prevention
5) MobilitySimplification: 7 funds, 1 regulation
CPR covers delivery.
1 set of rules is:
• More coherent
• Simpler to learn
• Simpler to combineSimpler management and control Roll-over of existing authorities and systems Risk-based verification of payment claims Increased use of SCOs (simplified cost options). Unit costs, fixed rates, lump sums. Financing based on conditions or milestones Simplified approach to technical assistance More proportionate system for low-error-rate programmes: reliance on national systems, no system audit, audit sample of maximum 30 operations Single audit principle
More flexibility
• New transfer possibility: Member State may request the transfer of up to
5 % of programme resources to another EU instrument
• Simpler reprogramming: up to 5% of a priority (3% of programme)
without Commission decision.
• "5+2" Programming:
• 5 years programmed initially
• 2026-27 allocations programmed after mid-term reviews in 2024-25
(basis: emerging needs, performance)
• Technical adjustment fed in (modifying allocations from 2025)Performance, monitoring and evaluation Transparent performance framework covering output and result indicators, targets and milestones "Open data" on progress every 2 months Publicly available documents No more performance reserve (replaced by "5+2") No annual implementation and progress reports for cohesion policy (replaced by structured and dynamic policy dialogue between COM and MS in the annual review meeting)
Lower EU co-financing ceilings
Ceilings on EU contribution
70% Less developed regions
Outermost regions
Cohesion Fund
Interreg
55% Transition regions
40% More developed regions
"Quid pro quo": VAT eligibility
No specific rules for revenue generating projectsFrom "N+3" to "N+2": phased in by 2028
• 60% of 2021 allocation subject to "n+2" rule in 2023
• Remaining 40% due in 10% tranches over 2024-27 ("n+x")
10 10 10 10
100
40
N+X
N+2
0
2021 2022 2023 2024 2025 2026 2027 2028 2029Thank you for your attention
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