#EUBudget4Results Nadia Calvino, General Director for budget European Commission Sofia, 16 June 2016
Outline 1. Focus on performance 2. EU budget performance framework: MFF, PBB and political decision-making 3. 'EU Budget Focused on Results' overview 4. Progress and next steps 5. Conclusions and outlook
1. Focus on performance is unavoidable Increased focus on performance is unavoidable in a context of growing needs and budgetary discipline
Performance budgeting is the process that links funds allocated to measurable results (OECD) Limits "PBB is a tool which aims to improve the ‒ It should not lead to automatic allocations efficiency and effectiveness of public ‒ It cannot replace political decision-making expenditure by linking the funding of public sector organizations to the results ‒ Time inconsistency issues: political vs. they deliver, making systematic use of investment, evaluation vs. budgetary cycles performance information" ‒ Risk of "totemisation" of indicators (Dr Marc Robinson ) ‒ Proportionality and Cost-effectiveness ‒ One size does not fit all Benefits "You have to be careful in setting targets, ‒ Better informed budget allocation decisions to not set more than you could monitor ‒ Stronger administrative efficiency and manage, to not set targets for things which you have very little control over, ‒ Stronger public accountability and to very clearly distinguish between the objectives and targets" (Dr Marc Robinson) Realistic expectations are key to success: the process of improving the PBB framework is gradual and every step forward counts
2. Elements of the Performance Framework of the EU budget Treaty + EU legislation 2014-2020 Multiannual Financial Framework (i.e. performance- based budgeting tools embedded into the legal basis of the programmes) Annual budgetary process: informed political choices (i.e. programme statements) Managerial performance framework inside the Commission (i.e. Strategic Planning and Programming cycle) Ex-ante and retrospective evaluations of programmes (i.e. impact assessments, mid-term and ex-post evaluations) Regular reporting, transparency and accountability (i.e. report on the management and performance of the EU budget) EU performance framework is conceptually in line with international standards: the PBB in place is complementary to compliance audit and the political negotiation process.
A performance framework based on complementarity and mainstreaming Complementarity: Several programmes contribute to one policy R&D Mainstreaming: Policies are implemented via several programmes: - Climate action - Biodiversity - Gender equality
Leverage effects: EU Budget is a strong driving force • Investment tool • Integration mechanism • Cohesion driving force • Mobilising financing at national and private level European Fund for Strategic Investment (EFSI) allowed already financing of projects with a total value of investment of EUR 100 billion The EU budget has a leverage effect on the European economy
4 . BFOR: progress and next steps Milestones for 2016: Expert group on PBB Progress in 2015: Draft Budget 2017: Reinforcement of Development of conceptual framework programme statements for the implementation of the BFOR initiative within the new MFF 2015 Annual Management and Performance Report for the EU Budget Establishment of internal governance: Political leadership and technical Framework for cooperation with the workstreams OECD Draft Budget 2016: Reinforced Communication on Mid-Term Review of programme statements the MFF and BFOR Upgrading the Commission's SPP cycle Revision of the Financial Regulation Public outreach: Public outreach: - BFOR national events - BFOR national events - Conference BFOR, 22 September 2015 - Conference BFOR, 27 September 2016 - EU Results web app (750 projects) - EU Results web app (1500 projects) There is strong political momentum to progress in the implementation of the PBB framework embedded in the current MFF.
Legality and Regularity The estimated amount at risk at payment The estimated amount at risk at closure dependent on the mix between pre-financing, below the 2% materiality threshold interim payments, final payments and related cleared pre-financing under the previous programming period (2015 payments contain proportionally a high volume of pre-financing for Outlook at closure regarding current programmes). 2015 expenditure has decreased by some 10 % compared with the Estimated situation in 2014. This is notably due to the reduction in the amount at risk reported in amount at risk Estimated Estimated - = agriculture. as to the future amount at relevant corrections risk expenditure of at closure the year EU budget is adequately protected- Key role of Member States in this area
EU EU Results Results
5. Conclusions Increased focus on performance is unavoidable in a context of growing needs and budgetary discipline Realistic expectations are key to success: The process of improving the PBB framework is a gradual one where every step forward counts The EU performance framework is aligned with “ I want to make international standards sure that every The performance of the EU budget must consider action we take the multiplicity of objectives as well as the delivers maximum complementarity and mainstreaming of performance and policies and programmes value added ” EU budget is adequately protected - key role of Member States in this area Jean Paul Juncker There is strong political momentum to progress in the implementation of the PBB framework embedded in the current MFF
THANK YOU • Useful links: • EU Budget: http://ec.europa.eu/budget/index_en.cfm EU Results: http://ec.europa.eu/budget/euprojects/ • • Budget Focused on Results initiative: http://ec.europa.eu/budget/budget4results/index_en.cfm • EU annual budget life-cycle: http://ec.europa.eu/budget/annual/index_en.cfm EU Budget in my country: http://ec.europa.eu/budget/mycountry/index_en.cfm • • Public consultation on the revision of the Financial Regulation applicable to the general budget of the Union: http://ec.europa.eu/budget/consultations/index_en.cfm #EUBudget4Results
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