EUROPEAN FUNDS IN HALF-TIME NEW CHALLENGES

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EUROPEAN FUNDS IN HALF-TIME NEW CHALLENGES

• Jack Engwegen
• Head of the Czech Unit
• European Commission, Directorate General for
  Regional Policy
• Prague, 23 June 2011

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EU Funds in the Czech Republic 2007-2013 What
has been achieved so far? (1)

• EU Funds make major financial contribution to the
  development of national public policies
• Transport reconstruction of 138 km TEN-T
  railways
• Environment 627 km of new or reconstructed
  waster water pipes and 584 km2 of regenerated
  sites
• Enterprise over 8 000 new jobs created
• RD share of RD expenditure on the overall GDP
  increased from 1.42 to1.53
• And for regional development
• 1.3 billion paid so far from ERDF to 9 regional
  OPs to finance regional transport, cultural and
  educational infrastructure

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EU Funds in the Czech Republic 2007-2013
Achievements and challenges (1)
Issue Achievements Challenges
Strategy building and planning Early launch of the preparation for the future cohesion policy involving partners at national and regional level Development of the transport strategy with the EC and Jaspers Draft Competitiveness strategy National Reform programme agreed Good progress made on strategy building in a number of regions Limited strategic vision in most policy areas Ensuring coherency and coordination between thematic and regional strategies Regional strategies to find the right balance between regional specificities and EU 2020 Ensuring an operational link with the priorities of the National Reform Programme Ensuring networking to connect more advanced regions with lagging regions Creating an academic/public/private partnership in support of competitiveness and Innovation Ensuring a stronger involvement of the private sector Ensuring sufficient attention for the needs of marginalised groups in the society Stricter concentration of SF on activities with a measurable added value inn terms of agreed objectives
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EU Funds in the Czech Republic 2007-2013
Achievements and challenges (2)
Issue Achievement Challenge
Overall coordination / OP management Creation of evaluation culture Improved monitoring Good practices in financial management Financial progress in a number of programmes Open communication structure between MA and REGIO Monitoring of OP implementation risks Functioning of partnership in a number of programmes Improvement in forecasting of expenditure Increasing coordination and cooperation between regional and thematic OP (overlaps) Complex implementation methods in most OP OP modifications should not be driven by absorption problems only Compliance with public procurement Role and functioning of the audit authority and delegated audit bodies Balanced representation of partners at MC OP with a complex management structure, including several IB Independence of MA Medium to long-term sustainability of projects ERDF co-financed
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EU Funds in the Czech Republic 2007-2013
Achievements and challenges (3)
Issue Achievements Challenges
Capacity building Developing of expertise and knowledge in the bodies implementing the SF Quality schemes under TA Guidance on the selection and remuneration of staff High fluctuation of staff, vulnerable to political changes Introduction of a public services code for staff responsible for SF implementation Extensive outsourcing of tasks parallel to capacity building Insufficient Administrative Capacity at the level of final beneficiaries Proper need analysis of human capacity under the different programmes Strengthen the "learning from the past" process at all levels Strengthen "learn from each other", exchange of experience within CZ Rep and from other MS
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EU Funds in the Czech Republic 2007-2013
Achievements and challenges (4)
Issue Achievements Challenges
Major projects Better quality of projects thanks to close-co-operation with Jaspers Development of common CBA methods (rail ,water, RD) High unit costs of infrastructure projects Compliance with public procurement rules Added value of financing of already completed projects Preparation of a pipeline of quality MP for next programming period Quality control mechanism ex-ante submission
Publicity issues/TA More awareness about the EU Funds and EU in general A number of good practice publicity measures implemented Risk of financing projects with limited added value Stricter application of the "sound financial management" principle in the use of TA
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Points for reflection on the future (1)

• Ensuring more complementarities and synergies
  between OP
• More performing delivery systems
• More standardized procedures/templates for
  submission of project applications
• Risk management to become an integral part of SF
  preparation and implementation
• More effective role of monitoring committees in
  the policy debates, more active involvement of
  partnership
• Ex-ante programme evaluation to include an
  economic, environmental and social impact
  assessment
• Strengthen the role of the audit authority and to
  ensure a better coordination of audit activities
  between the different organisations concerned

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Points for reflection on the future (2)

• More transparency, political independence and
  stability of staff working on the Funds/ SF staff
  code
• Stronger coordination role for the NCA with more
  authority and responsibility
• Outsourcing of administrative tasks should not
  oppose the development of administrative capacity
• Creating an environment in terms of legal,
  administrative and financial structure/rules and
  procedures that enables an efficient and
  effective use of SF resources
• Appropriate strategy building as a prerequisite
  for successful implementation of OP
• Make better use of past experience and strengthen
  exchange of experience

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• Thank you for your attention !