COHESION POLICY 2021 2027 Convent of Marshals 27

COHESION POLICY 2021 -2027 Convent of Marshals, 27 th June 2018

Content 1. Shorter modern menu of priorities 2. Creating conditions for success 3. Faster and more strategic programming 4. More flexible policy 5. Faster and simpler delivery 6. More results, less reports 7. Communicating cohesion policy

1. SHORTER, MODERN MENU OF PRIORITIES

Thematic menu What's new? Why helpful? § Shorter, flexible menu of 5 policy objectives, breaking sectoral silos § Limits cases where integrated actions are programmed under more than one PO § A new, place-based, crosscutting policy objective for ERDF - PO 5 § Capacity building and cooperation with partners within and outside MShorizontal priorities in all specific objectives § Additional specific objectives for Interreg § Example: Policy objective "Smarter Europe": • Research and innovation • Digitalisation • SMEs • Skills • Education

Policy objectives 11 objectives are simplified and consolidated into 5: 1. A smarter Europe (innovative & smart economic transformation) 2. A greener, low-carbon Europe (including energy transition, the circular economy, climate adaptation and risk management) 3. A more connected Europe (mobility and ICT 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) Horizontal issues: administrative capacity building, cooperation outside the programme area ERDF: all POs and the Cohesion Fund under PO 2 -3 (excl. broadband)

ERDF Thematic Concentration Focus spending in key areas for jobs and growth § NEW! Concentration of resources at national level based on GNI per head § Member States equal or above 100% of GNI per head § At least 85% of resources other than technical assistance to policy objectives 1 and 2, and at least 60% to policy objective 1 – no minimum for PO 2 § Member States equal or above 75% and below 100% of GNI per head § At least 45% of resources other than technical assistance to policy objective 1 and at least 30% to policy objective 2 (75% to policy objective 1 and 2) § Member States below 75% of GNI per capita § At least 35% of resources other than technical assistance to policy objective 1 and at least 30% to policy objective 2 (65% to policy objective 1 and 2)

Sustainable urban development • New dedicated specific objective for integrated development of urban areas • 6% of ERDF to go to urban development, delivered through local development partnerships with different tools (Article 9 ERDF-CF) • Requirement for local development strategies – local ownership • European Urban Initiative: a coherent approach to capacity building, innovative actions, knowledge and policy development and communcation (Article 11 ERDF-CF) • Not applicable to Interreg

Europe closer to citizens (PO 5) - territorial tools § All instruments have to be based on local strategies § Simplified rules for all the tools § Available tools: § Integrated territorial investments (ITIs) § Community-led local development (CLLD) § Territorial tools under policy objective 5 (Article 22 -28 CPR)

2. CREATING CONDITIONS FOR SUCCESS

Creating the conditions for success Enabling conditions (used to be "ex-ante") § Fewer, clearer and with tighter link to the policy § Followed up, not just set at the beginning EU Governance § European Semester § Reform delivery tool § Rule of law § Macroeconomic conditionality

Enabling conditions Content: (Annexes III and IV) § Fewer : from 35 + 20 4 horizontal + 16 thematic § Clearer : fulfilment criteria detailed in the annexes (no guidance) § Focussed: improvement of effectiveness of spending Effectiveness: (Article 11) § Fulfilment: condition for submitting EU payment applications for the concerned specific objectives § Directly applicable without obligatory action plans § Applicability throughout the whole period (MC and ARM follow-up)

Enabling conditions Areas covered: § Horizontal: § Public procurement, State aid, Charter of Fundamental Rights, United Nations' Convention on the Rights of Persons with Disabilities § Thematic: § Smart specialisation strategies § Policy framework for energy efficiency, renewable energy § National plans on water and wastewater, waste management, prioritised action framework for nature conservation § National/regional broadband plan § Transport plan § Policy framework for active labour market, gender equality, education system, social inclusion and poverty reduction, Roma inclusion, health

3. FASTER AND MORE STRATEGIC PROGRAMMING

Programming 1/4 What's new? What's out? § Simplified, more focused and more strategic programming § Changes of the PA during implementation § Performance-oriented: Midterm review in 2025 § Synergies: Closer link with the European Semester § Flexibility: No official COM decision needed for up to 5 % of funding § Clarity: PA and programme templates as part of CPR § Overlaps between PA and programmes § Separate procedure for technical adjustment (combined with the performance review) § Lengthy details and descriptions

Programming 2/4 Partnership Agreement (Article 7, 8 and 9 CPR) § Setting out objectives and arrangements for using ERDF, Cohesion Fund, ESF+, EMFF, AMIF, ISF, BMVI at the beginning of the period § Selected policy objectives § Coordination, demarcation and complementarities between the Funds and other Union instruments § Preliminary financial allocation by policy objective (thematic concentration requirements) and list of programmes with preliminary allocations § Amount to be delivered through Invest. EU and transfers between categories of region § Summary of actions to reinforce the institutional capacity § Option: PA submitted together with a programme § Option: PA submitted as part of NRP

Programming 3/4 Content of Operational programmes (Article 17 CPR) § Summary of the main development challenges and strategy for contribution to policy objectives § Justification for selection of policy objectives and specific objectives § Priorities - each corresponds to a single policy objective § Description of specific objectives (actions, operations of strategic importance, target groups, indicators, types of intervention, targeted territories) § Financing plan § Assessment of fulfilment of enabling conditions § Communication and visibility § Partnership

Programming 4/4 Programming process (Article 18 -19 CPR) § Programming for years 2021 -2025 § Amendment of programmes § NEW! Transfer of up to 5 % of initial allocation of a priority (with 3% of total programme budget ceiling) – an amending decision of the Commission is not required

4. MORE FLEXIBLE POLICY

Mid-term review (Article 14 CPR) Flexible programming adjusted to new challenges and emerging needs in a fast changing world § Review of all programmes taking into account changes in socioeconomic situation, country specific recommendations and performance § NEW! Allocation of financial resources for 2026 and 2027 – '5+2' programming no performance reserve! § Request for amendment of programmes by 31 March 2025 § Takes into account the MFF technical adjustment; where relevant, adjusts the 2025 commitment as well

Transfers Flexibility to define delivery tools (Article 10 and 21, CPR) § NEW! Delivery through Invest. EU § Up to 5% of the allocation of a Fund § In the Partnership agreement or any time during implementation § Not subject to de-commitment § NEW! Transfers between shared management Funds (except for EAFRD) or to any instrument under direct/indirect management § Implementation in accordance with the rules of a Fund or instrument to which resources are transferred § Up to 5% of a programme budget § Transfers 'for the benefit of a Member State' § Any time during implementation

5. FASTER AND SIMPLER DELIVERY

Faster and simpler delivery • Extended possibility to use simplified cost options and financing not linked to costs schemes • Reduced number of controls and audits and increased crossreliance on audits • Reintroduction of n+2 rule and reduced level of prefinancing faster start of the programmes and quicker implementation • Reinforced visibility and communication provisions • No specific rules for operations generating net revenue • No major projects operations of strategic importance

Operations of strategic importance § Operations of strategic importance replaced major projects: § No appraisal by the Commission § No threshold – these operations are identified individually for each programme § A list of planned operations of strategic importance per specific objective in the programme (Article 17 CPR) § When they are selected, MA to inform the Commission (Article 67 CPR) § Progress in implementing these operations is examined in the monitoring committee as well as during the annual review meeting (Articles 35 - 36 CPR) § Their visibility has to be ensured by the Member State and the beneficiary (Articles 41 and 45 CPR)

New approach to technical assistance What's new? What's out? § Programme management related TA – reimbursed exclusively through flat rates § Reimbursements for the TA based on real costs § In addition, TA to reinforce capacity of the authorities, beneficiaries and partners – implemented through financing not linked to costs.

Union contribution to a programme What's new? What's less? § Full alignment with the Financial Regulation § Reimbursement based on real costs and corresponding paperwork § New forms of reimbursement of the Union contribution to a programme: § financing not linked to costs § reimbursement based on simplified cost options

Member States’ support to beneficiaries What's new? What's out? § Extension of the obligatory use of the simplified cost options for operations up to 200 000 EUR of total cost § Limitations linked to the public procurement when applying the SCOs § An off-the-shelf flat rate of up to 7% of eligible direct costs to cover indirect costs § Additional off-the-shelf method to calculate direct staff costs § Newly established calculation method (however those established for 2014 -2020, can be reused) § Keeping invoices or accounting records for the SCOs

Eligibility What's new? § Flexibility when responding to natural disasters § Separate and clearer rules on durability and relocation § For operations below 5 MLN EUR of total costs, VAT eligible. In all other cases VAT is ineligible. What's out? § Specific rules on the revenue generating operations § Restrictions on location of the operations § Detailed separate provisions for PPP schemes

Scope (Articles 4 and 5 ERDF/CF) ERDF: § investments in infrastructure § investments in access to services; § productive investments in SMEs; § equipment, software and intangible assets; § information, communication, studies, networking, cooperation, exchange of experience and activities involving clusters; § technical assistance. Cohesion Fund: § investments in the environment, sustainable development and energy with environmental benefits; § investments in TEN-T; § technical assistance. ERDF for productive investments in research possible for large enterprises IF cooperate with SMEs

Not supported by ERDF/Cohesion Fund § Decommissioning/construction of nuclear power stations; § Investments to reduce GHG emissions under ETS Directive § tobacco and tobacco products; § undertakings in difficulty § airport infrastructure except for outermost regions; § disposal of waste in landfill; § facilities for the treatment of residual waste; § production, processing, distribution etc. of fossil fuels, with the exception of investment related to clean vehicles § broadband infrastructure in "white areas" § rolling stock for use in rail transport with some exception

6. MORE RESULTS, LESS REPORTS

Performance, monitoring and evaluation What's new? What’s out? § Performance framework will cover all output and result indicators § Performance reserve § Better use of electronic data exchange system to follow progress in implementation § Structured and dynamic policy dialogue between COM and MS in the annual review meeting § Annual and progres reports for cohesion policy § Obligatory ex ante evaluation

Performance framework Content of programmes (Article 17 CPR) § All output and result indicators are covered by performance frarmework Performance framework (Article 12 CPR) § For each outputs indicator a milestone has to be set for end-2024 and a target for end-2029 § For each result indicator a target has to be set for end-2029 Methodologies (Article 13 CPR) § Methodologies to set milestones and targets shall be made available to the Commission and meet the minimum standards

Monitoring Committee (Article 33, 34 and 35 CPR) § General rules on setting up and composition of the monitoring committee are continued § NEW! Each member shall have a vote and a balanced composition § NEW! Rules of procedures and information to be published on a dedicated website § NEW! Up-dated functions of the monitoring committee § NEW! The Commission may request to be consulted on the draft methodology and criteria for selection of operations

Monitoring Annual Performance Review (Article 36 CPR) § Annual review meeting turned into a structured and dynamic policy dialogue between the Commission and the Member State § NEW! Reports replaced by data transmitted electronically and information submitted in advance to the Commission. § Only the final implementation report will be submitted at closure, i. e. by 15 February 2031 § NEW! Outcomes of the annual review meeting recorded in writing Transmission of data (Article 37 CPR) § More frequent transmission of structured data (every two months) on financial, output and result indicators for both grants and financial instruments.

Evaluation by Member States (Article 39 CPR) § Simplification of provisions: § NEW! No obligation to conduct an ex ante evaluation § NEW! No division into ex ante, on-going and ex post evaluation § Evaluation plans are maintained. § Evaluation assessing the impact of programmes to be submitted by 30 June 2029 Evaluation by the Commission (Article 40 CPR) § A mid-term evaluation to be carried out by end-2024 § A retrospecitve evaluation to be carried out by end-2031

7. COMMUNICATING COHESION POLICY

Communication and visibility (Art. 41 -45 and Annex VIII) • Harmonized EU rules: single EU branding, single funding portal, single list of operations • Special visibility for operations of strategic importance and operations above EUR 10 million (major communication event) • Single website portal providing access to all programmes • Communication coordinators in Member States and programme communication officer • Responsibilities of MAs and beneficiaries – financial correction up to 5% for beneficiaries' non-compliance • Possible re-use by EU Institutions of communication materials developed by beneficiaries/MAs

Thank you for your attention!