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“The Future of the Cohesion Policy – Are We Ready for the Challenges 2014-2020” – Sixth Meeting of the Council for Public Consultations at the CEAOEF
12/07/2011
The Council for Public Consultations at the Committee for European Affairs and Oversight of the European Funds held its sixth meeting on the topic “The Future of Cohesion Policy – Are We Ready for the Challenges of the Period 2014-2020” on July 12 2011.
The topic of the meeting is important and current. That’s why, it arrested the attention of the civil society, the Bulgarian Government and the Parliament. The Ambassador of the Republic of Poland – His Excellency, Mr. Leszek Hensel and the Ambassador of the Republic of Hungary – Her Excellency, Mrs. Judith Lang also took part in the discussion.
The Minster in charge of the European Funds Mr. Tomislav Donchev, the Minister of Regional Development and Public Works Mr. Rosen Plevneliev and the Deputy Minister of Economy and Energy Mr. Evgeni Angelov represented the Executive Power at the meeting.
The Chairman of the National Assembly Mrs. Tsetska Tsacheva welcomed the topic of the discussion and pointed out that the question whether Bulgaria is ready for the challenges concomitant to the Cohesion Policy for the period after 2013 is gaining importance. According to her, the Bulgarian Parliament is ever more engaged in the Bulgaria’s development discussions. The Polish Presidency of the European Union places high importance on the future development of the Cohesion Policy. In this regard, Mrs. Tsacheva voiced her hope that the fact that both Poland and Bulgaria belong to Central and Eastern European region would turn out to be a uniting factor in the search for a shared approach to and consensual decision on the future architecture of the Cohesion policy.
In view of the challenges ahead, the Ambassadors of Poland and Hungary indicated that the UE’s Cohesion Policy aims at stimulating regional economic growth. The Ambassadors pointed out that the allocation of the European funds in the new program period would be based on the positive results of the implemented reforms. In the context of the forthcoming debates on the new multiannual financial framework of the European Union and the Cohesion Policy’s role, the Polish Ambassador stated that “We need to be flexible enough in our economic decisions during the crisis.”
The Chairman of the Council for Public Consultations Mr. Kamen Kolev presented the EU Cohesion Policy’s new emphasis on bringing to fruition the goals of the Europe 2020 Strategy. He highlighted that Bulgaria should single out a few priorities and be able to balance out its commitments on its basic priorities and the priorities connected to the Europe 2020 Strategy. Mr. Kolev announced that in view of the intensified co-operation with the civil society, the Council for Public Consultations had carried out a survey on the business sector, the civil society, and the academic sphere’s attitude towards and suggestions on the EU Funds management for the next Programming Period 2014-2020. The survey sample consisted of 600 respondents, most of whom were representatives of the business sector in Bulgaria.
Some of the current financial period (2007-2013) main challenges that the business sector would like to see addressed, are the cumbersome procedures requiring a high documentation volume necessary for the project applications and the project evaluations (according to 80 % of the interviewed), the delays in the project reimbursements (65 %), the financial pool need for the project goals (30 %), the lack of clear instructions on the activities pertaining to the project implementation and evaluation (67 %), and ambiguous texts (>45 %).
The Chairwoman of the CEAOEF Ms. Monika Panayotova summarized the results from the survey on the Cohesion Policy’s future. The latter indicates that 52 % of the business representatives, who were interviewed, would like to see the Operational Program “Environment” continued into the next Programming Period. For the Operational Programs “Regional Development”, “Development of the Competitiveness of the Bulgarian Economy” and “Transport” these percentages are 54 %, 48 %, and 46 %, respectively. On the other hand, the respondents singled out the Operational Programs “Administrative Capacity” and “Technical Assistance” as the programs which are least important to the business.
The survey also indicates that the business sector identifies grants as the most preferable form of payment for the next Programming Period 2014-2020, although it does appreciate financial engineering instruments. The business representatives also believe that the funds allocation among the various Operational Programs should be differentiated and prioritized (>65 %), rather than balanced out (30 %).
The survey also recommends that the recipients be able to benefit from a wider range of on-line/electronic services, such as on-line applications and project evaluations, and be able to outsource some of the activities related to the project management (54 % and 30 % of the respondents, respectively, support these measures). Ms. Panayotova pointed out that procedures should not be too cumbersome and too strict in order to facilitate the administration’s work. The CEAOEF Chairperson also recommended that a new principle of proportionality be applied to the procedures, so that they could be rationalized and part of their administrative burden be removed, without breaking the rules.
Ms. Panayotova maintained that the European Cohesion Policy after 2013 shall be closely linked with the Europe 2020 Strategy. This means that resources shall be focused predominantly on the Europe 2020’s objectives and goals achievement. Since the Strategy only fleetingly includes the territorial approach, the Cohesion Policy should play the role of a territorial development strategy and cover the territorial dimension of the socio-economic cohesion.
Of high importance is the integrated approach application to development through the axis “region-city-village”, adhering to documents such as the European Perspective for Spatial Development.
The Cohesion Policy should be output-oriented for its efficiency enhancement – it demands reforms so that specific visible outcomes be attained. The list of the Cohesion Policy priorities should be clearly determined and shortened in comparison with the one, used in the current Programming Period. In this way, it could be better adapted to support certain activities, promoting Bulgaria’s development and growth potential. The logic that should be followed during the Cohesion Policy early planning stages and the Structural Funds for Bulgaria in the 2014-2020 period, lies on three main hierarchic goals: а principal objective: the country’s development stimulation, strategic goals which are part of the Europe 2020 Strategy and operational goals which include improving the business environment, promoting research, innovation, and the development of new technologies, increasing employment and creating new job opportunities, improving the infrastructure, bolstering local administrative capacity, developing territorial collaboration, etc.
In conclusion, Ms. Panayotova explained that starting the debate on the future of the Cohesion policy so early would allow us to better plan the national activities on the relevant policies and the National Assembly to defend Bulgaria’s national interests in the context of the new rights granted to national parliaments after the Lisbon Treaty implementation.
The Minister in charge of EU funds management Mr. Tomislav Donchev welcomed the survey which had been carried out among the Council for Public Consultations members. He assured the public that at all meetings with our European partners Bulgaria insists that investment in basic infrastructure, one of the country’s top priorities, be included among the Europe 2020 Strategy objectives.
Minister Donchev added that a “regional level of thinking and planning” shall be indispensable during the next period and that two parallel processes are being implemented in the administration of the European Funds. On the one hand, the centralization of the system is endeavored. On the other, the Minister seeks to decentralize the process at the planning regions level. In relation to this attempt, the establishment of six Intermediate Bodies is being prepared. They are to assist the local authorities and to maintain the communication process with the project candidates.
Minister Donchev emphasized that our vision for “Bulgaria 2020” has been prepared with the National Plan for Development which includes the main set of essential national priorities as well as additional objectives. All future steps the country will take, as well as the negotiations with the EC for the next period will be based on this document. In conclusion, Mr. Donchev drew attention to the fact that the most important task is to determine the needs we want to address with the European Funds, and not to concentrate on the Operational Programs type and the specific number. In addition, he underlined that fewer OPs will probably be implemented during the next period and maintained that similar priorities shall be concentrated in the framework of one OP.
Minister Rosen Plevneliev discussed two key points – the investment in basic infrastructure and the big projects. He indicated that it would be impossible to talk about “green” growth, innovations and economic development if the country lacks basic infrastructure. Furthermore, according to him, big projects render higher absorption rates, lower risks and better visibility of the outcomes. Minister Plevneliev pointed out that efforts in the area of transport infrastructure shall be directed to the Hemus, Black Sea and Struma highways construction. “I believe that the right design and execution of the projects will lead to success”, concluded Minister Plevneliev.
The Deputy Minister of Economy, Energy and Tourism Evgeni Angelov informed the members of the Council for Public Consultations about the main differences between grants and revolving financial instruments. He explained that the EU foresees the financial engineering instruments’ role expansion in the SME field of the Cohesion Policy. An important facet of the future Cohesion Policy will be the combination of grants with the new forms of financial engineering – the revolving instruments. This combination is expected to ensure that the funded projects will be much more effective and economically justified because it lays an emphasis on their Internal Rate of Return. The focus is expected to shift from a policy based on the question “What is there a grant for?” to one which is driven by the inquiry “What is needed?”.
The discussion following those presentations included additional questions related to the next Programming Period preparation, the JEREMIE instrument execution, the link between innovations and the national government, the opportunities for partnerships between universities and the business sector, etc. Minister Plevneliev and Deputy Minister Angelov answered those questions and provided additional information on the relevant issues.
The presentations from the meeting are available at this link:
http://parliament.en/en/parliamentarycommittees/members/240/documents
The topic of the meeting is important and current. That’s why, it arrested the attention of the civil society, the Bulgarian Government and the Parliament. The Ambassador of the Republic of Poland – His Excellency, Mr. Leszek Hensel and the Ambassador of the Republic of Hungary – Her Excellency, Mrs. Judith Lang also took part in the discussion.
The Minster in charge of the European Funds Mr. Tomislav Donchev, the Minister of Regional Development and Public Works Mr. Rosen Plevneliev and the Deputy Minister of Economy and Energy Mr. Evgeni Angelov represented the Executive Power at the meeting.
The Chairman of the National Assembly Mrs. Tsetska Tsacheva welcomed the topic of the discussion and pointed out that the question whether Bulgaria is ready for the challenges concomitant to the Cohesion Policy for the period after 2013 is gaining importance. According to her, the Bulgarian Parliament is ever more engaged in the Bulgaria’s development discussions. The Polish Presidency of the European Union places high importance on the future development of the Cohesion Policy. In this regard, Mrs. Tsacheva voiced her hope that the fact that both Poland and Bulgaria belong to Central and Eastern European region would turn out to be a uniting factor in the search for a shared approach to and consensual decision on the future architecture of the Cohesion policy.
In view of the challenges ahead, the Ambassadors of Poland and Hungary indicated that the UE’s Cohesion Policy aims at stimulating regional economic growth. The Ambassadors pointed out that the allocation of the European funds in the new program period would be based on the positive results of the implemented reforms. In the context of the forthcoming debates on the new multiannual financial framework of the European Union and the Cohesion Policy’s role, the Polish Ambassador stated that “We need to be flexible enough in our economic decisions during the crisis.”
The Chairman of the Council for Public Consultations Mr. Kamen Kolev presented the EU Cohesion Policy’s new emphasis on bringing to fruition the goals of the Europe 2020 Strategy. He highlighted that Bulgaria should single out a few priorities and be able to balance out its commitments on its basic priorities and the priorities connected to the Europe 2020 Strategy. Mr. Kolev announced that in view of the intensified co-operation with the civil society, the Council for Public Consultations had carried out a survey on the business sector, the civil society, and the academic sphere’s attitude towards and suggestions on the EU Funds management for the next Programming Period 2014-2020. The survey sample consisted of 600 respondents, most of whom were representatives of the business sector in Bulgaria.
Some of the current financial period (2007-2013) main challenges that the business sector would like to see addressed, are the cumbersome procedures requiring a high documentation volume necessary for the project applications and the project evaluations (according to 80 % of the interviewed), the delays in the project reimbursements (65 %), the financial pool need for the project goals (30 %), the lack of clear instructions on the activities pertaining to the project implementation and evaluation (67 %), and ambiguous texts (>45 %).
The Chairwoman of the CEAOEF Ms. Monika Panayotova summarized the results from the survey on the Cohesion Policy’s future. The latter indicates that 52 % of the business representatives, who were interviewed, would like to see the Operational Program “Environment” continued into the next Programming Period. For the Operational Programs “Regional Development”, “Development of the Competitiveness of the Bulgarian Economy” and “Transport” these percentages are 54 %, 48 %, and 46 %, respectively. On the other hand, the respondents singled out the Operational Programs “Administrative Capacity” and “Technical Assistance” as the programs which are least important to the business.
The survey also indicates that the business sector identifies grants as the most preferable form of payment for the next Programming Period 2014-2020, although it does appreciate financial engineering instruments. The business representatives also believe that the funds allocation among the various Operational Programs should be differentiated and prioritized (>65 %), rather than balanced out (30 %).
The survey also recommends that the recipients be able to benefit from a wider range of on-line/electronic services, such as on-line applications and project evaluations, and be able to outsource some of the activities related to the project management (54 % and 30 % of the respondents, respectively, support these measures). Ms. Panayotova pointed out that procedures should not be too cumbersome and too strict in order to facilitate the administration’s work. The CEAOEF Chairperson also recommended that a new principle of proportionality be applied to the procedures, so that they could be rationalized and part of their administrative burden be removed, without breaking the rules.
Ms. Panayotova maintained that the European Cohesion Policy after 2013 shall be closely linked with the Europe 2020 Strategy. This means that resources shall be focused predominantly on the Europe 2020’s objectives and goals achievement. Since the Strategy only fleetingly includes the territorial approach, the Cohesion Policy should play the role of a territorial development strategy and cover the territorial dimension of the socio-economic cohesion.
Of high importance is the integrated approach application to development through the axis “region-city-village”, adhering to documents such as the European Perspective for Spatial Development.
The Cohesion Policy should be output-oriented for its efficiency enhancement – it demands reforms so that specific visible outcomes be attained. The list of the Cohesion Policy priorities should be clearly determined and shortened in comparison with the one, used in the current Programming Period. In this way, it could be better adapted to support certain activities, promoting Bulgaria’s development and growth potential. The logic that should be followed during the Cohesion Policy early planning stages and the Structural Funds for Bulgaria in the 2014-2020 period, lies on three main hierarchic goals: а principal objective: the country’s development stimulation, strategic goals which are part of the Europe 2020 Strategy and operational goals which include improving the business environment, promoting research, innovation, and the development of new technologies, increasing employment and creating new job opportunities, improving the infrastructure, bolstering local administrative capacity, developing territorial collaboration, etc.
In conclusion, Ms. Panayotova explained that starting the debate on the future of the Cohesion policy so early would allow us to better plan the national activities on the relevant policies and the National Assembly to defend Bulgaria’s national interests in the context of the new rights granted to national parliaments after the Lisbon Treaty implementation.
The Minister in charge of EU funds management Mr. Tomislav Donchev welcomed the survey which had been carried out among the Council for Public Consultations members. He assured the public that at all meetings with our European partners Bulgaria insists that investment in basic infrastructure, one of the country’s top priorities, be included among the Europe 2020 Strategy objectives.
Minister Donchev added that a “regional level of thinking and planning” shall be indispensable during the next period and that two parallel processes are being implemented in the administration of the European Funds. On the one hand, the centralization of the system is endeavored. On the other, the Minister seeks to decentralize the process at the planning regions level. In relation to this attempt, the establishment of six Intermediate Bodies is being prepared. They are to assist the local authorities and to maintain the communication process with the project candidates.
Minister Donchev emphasized that our vision for “Bulgaria 2020” has been prepared with the National Plan for Development which includes the main set of essential national priorities as well as additional objectives. All future steps the country will take, as well as the negotiations with the EC for the next period will be based on this document. In conclusion, Mr. Donchev drew attention to the fact that the most important task is to determine the needs we want to address with the European Funds, and not to concentrate on the Operational Programs type and the specific number. In addition, he underlined that fewer OPs will probably be implemented during the next period and maintained that similar priorities shall be concentrated in the framework of one OP.
Minister Rosen Plevneliev discussed two key points – the investment in basic infrastructure and the big projects. He indicated that it would be impossible to talk about “green” growth, innovations and economic development if the country lacks basic infrastructure. Furthermore, according to him, big projects render higher absorption rates, lower risks and better visibility of the outcomes. Minister Plevneliev pointed out that efforts in the area of transport infrastructure shall be directed to the Hemus, Black Sea and Struma highways construction. “I believe that the right design and execution of the projects will lead to success”, concluded Minister Plevneliev.
The Deputy Minister of Economy, Energy and Tourism Evgeni Angelov informed the members of the Council for Public Consultations about the main differences between grants and revolving financial instruments. He explained that the EU foresees the financial engineering instruments’ role expansion in the SME field of the Cohesion Policy. An important facet of the future Cohesion Policy will be the combination of grants with the new forms of financial engineering – the revolving instruments. This combination is expected to ensure that the funded projects will be much more effective and economically justified because it lays an emphasis on their Internal Rate of Return. The focus is expected to shift from a policy based on the question “What is there a grant for?” to one which is driven by the inquiry “What is needed?”.
The discussion following those presentations included additional questions related to the next Programming Period preparation, the JEREMIE instrument execution, the link between innovations and the national government, the opportunities for partnerships between universities and the business sector, etc. Minister Plevneliev and Deputy Minister Angelov answered those questions and provided additional information on the relevant issues.
The presentations from the meeting are available at this link:
http://parliament.en/en/parliamentarycommittees/members/240/documents
