Experiences of Slovenia in the

Perspective 2014-2020 and Risks

of Decommitments

Brussels, 7.4.2016

Cohesion policy in Slovenia 2014-2020

GDP p.c. in 2010:

• Slovenia = 83.7 % EU-27

• Western Slovenia = 100 % EU-27

• Eastern Slovenia = 69.2 % EU-27

Comparison between the 2007-2013 and

2014-2020 MFF's

2007-2013

(million €)

2014-2020

(million €)

Change

(%)

ERDF 2,038 1,391 -31.7

ESF 756 716 -5.3

Cohesion fund 1,411 895 -36.6

TOTAL Cohesion 4,205 3,002 -28.6

Rural development 922 838 -9.1

European territorial cooperation 164 100 -39.0

Number of OP's 3 1

Number of cohesion regions 1 2

Programmes 2014-2020

Programme Date of approval PARTNERSHIP AGREEMENT between Slovenia and the

European Commission for the period 2014–2020

30. 10. 2014

Operational Programme for the Implementation of the

European Cohesion Policy in the 2014-2020 period

16. 12 .2014

Rural development programme of the Republic of

Slovenia 2014-2020

13. 2. 2015

Operational Programme for support from the European

Maritime and Fisheries Fund in the Republic of Slovenia

for the period 2014–2020

29. 7. 2015

4 cross-border cooperation programmes

5 transnational cooperation programmes

4 interregional cooperation programmes

Ex-ante conditionalities (14.9.2015)

General ex-ante conditionalities (7) Thematic ex-ante conditionalities (21) 3 unfulfilled 14 unfulfilled

public procurement

statistical system and result

indicators

environmental legislation

research and innovation

infrastructure for research and

innovation

digital growth

infrastructure for next generation

networks

the promotion of the SBA

the measures to promote energy

efficiency in buildings

measures to promote the production

and distribution of renewable energy

sources

prevention and risk management

water sector

transport

railway transport

other transport modes

active and healthy aging

health

Absorption of European funds for individual

operational programmes 2007-2013

0

100.000.000

200.000.000

300.000.000

400.000.000

500.000.000

600.000.000

700.000.000

800.000.000

900.000.000

2007 2008 2009 2010 2011 2012 2013 2014 2015

OP Regional Development OP Infrastructure OP Human Resources

Absorption rate = 97%

The net position of the state budget in

relation to the EU budget 2007-2013 (in mio €)

2007 2008 2009 2010 2011 2012 2013 2014

2015

-9 -65 +156 +327 +407 +451 +508 +633

+446

Implementation of CP 2014-2020 and

risk of decommitment

47.145.291

436.338.377

509.192.883 519.739.196

466.272.982

423.561.160

332.798.413

276.851.467

0

100.000.000

200.000.000

300.000.000

400.000.000

500.000.000

600.000.000

2015 2016 2017 2018 2019 2020 2021 2022

ESF ERDF CF YEI TOTAL

Approved projects / tenders: 37 = 360 million € = 12 %

Advance payments: 144 million €

2015 absorption: 0

Estimated 2016 absorption: 206 million €

N+3

n+3 2017 (in €) 2018 (in €) Committed

(in mio €)

OP TOTAL 408.173.353 823.788.634 359,2

ERDF 187.015.457 377.775.031 67,4

ESF 96.430.332 194.791.236 63,2

CF 119.552.544 242.010.831 224,1

YEI 5.175.020 9.211.536

Challenges - European Commission (1) Lengthy administrative procedures, bureaucratic and complex

implementation system – further SIMPLIFICATION !!! in the management of EU-funded projects is necessary (shared responsibility between EC and MS). This should include consistent rules concerning the eligibility of costs, avoiding gold plating, a closer connection between payments and results, a reduction in the time period for reimbursement for beneficiaries, the creation of one set of common auditing rules for projects, simpler rules for projects which generate their own revenue, the wider use of simplified costs, E-cohesion, the "one-stop-shop" principle for beneficiaries, and a proportionate and unified approach to supervision.

Cohesion policy is based so far on an extensive system of programming and conditionalities and assessments, which poses a rather heavy burden particularly for smaller programs.

Proper application of the partnership principle helps increase the effectiveness of EU spending (pre-condition for good delivery; new partnership mind-set!).

The subnational level was responsible for 55% of total public investments in 2013 and thus plays a significant role in promoting economic growth in Europe.

The multilevel financing system should be improved in the future (shrinking public budgets, pledging funds from own budgets…).

Owing to internal regional disparities, it may still be necessary even in more developed regions to invest in infrastructure providing basic services in the areas of environment, transport, and information and communication technologies (ICT).

Challenges - European Commission (2)

The concept of Community-Led Local Development (CLLD) and Integrated Territorial Investment (ITI) is very complex.

Very complex implementation of financial instruments (the right balance between the use of direct and indirect instruments is needed).

Combining different funding sources and different tools for a single project may offer significant advantages only if different funding sources and tools entail equivalent reporting and eligibility requirements.

Stringent audits and checks (many of them and are not always coordinated).

Specific measures are immediately required to simplify territorial cooperation programmes (thematic concentration should not be a predominant principle).

Ex-ante conditionalities (Article 19 CPR) ensure that EU resources are invested in a legal environment that complies with European law, but:

o it is unacceptable that funding on the territory of LRAs should be delayed due to failings at national institutional level;

o "external conditionality" for ESIF regarding the freezing of regional aid for Member States which breach EU budget deficit rules - such measures would primarily penalise LRAs for the failures of their national governments;

o cohesion policy is essentially a regional policy and must remain so, avoiding more or less centralising policies at all levels of governance.

Challenges - European Commission (3)

There is a need for capacity-building and technical assistance to improve the

absorption of funds (especially in less developed regions).

We need more focus on the territorial dimension on Cohesion policy (properly

adapted to local and regional needs).

The regional and local levels must remain at the heart of the policy to ensure

the territorial focus of cohesion policy. If it is kept as a horizontal policy

throughout the EU it must be drastically simplified to reduce the administrative

burden and error rates. The current simplification effort cannot simply focus on

the end user but must encompass the entire delivery system. Strengthening the

administrative capacity, transparency and accountability at local and regional

level including an adequate level of fiscal autonomy are key success factors for

better delivery.

„Now is the time for new or maybe not so new ideas and for setting the

agenda for the period beyond 2020! In a few years from now discussions

about who will get how much will reduce the room for creative

manoeuvre“ (Thomas Wobben).

Challenges – Slovenia (1) The biggest risk for the loss of funds in the field of environment and transport

infrastructure.

The complexity of procedures, arising in particular from our domestic legislation

(public finance, public procurement, spatial planning and environmental protection…).

Problems due to the illiquidity of project applicants (lack of own resources,

difficulties in obtaining credit, bank guarantees…).

Long administrative procedures in ministries (document preparation, selection of

projects, the delay between payment and reimbursement of funds to applicants…).

Weak flow of information between government departments.

There is no precise annual or multi-annual plan of tendering funds and therefore no

information which calls and when they will be prepared and published.

Lack of clear instructions / guidance for the execution of specific tasks and changing

the "rules of the game" during the project implementation.

Better cooperation between all levels of policy – national, regional and local.

The strategic approach in the preparation of European projects and on this basis,

the preparation of projects on the stock.

Preparation of good and innovative development projects that improve the quality

of life.

Challenges – Slovenia (2) Slovenia should inform the European Commission about the designation of bodies

for the implementation of the cohesion policy until the middle of September

2016 - problems with the utilization of certain advances!

Information system in the field of cohesion policy (E-cohesion).

The method of implementation of projects is unclear because of „innovations“

implemented in the legislation (ITIs…).

System implementation in the division between East and West cohesion region

is unclear.

A significant number of ex-ante conditionalities have not been fulfilled yet.

Lack of eligible projects, slow and lengthy procedures of approval of (major)

projects, unsolved property relations…

Cohesion policy must be…

EFFICIENT

MORE RESULT ORIENTED

SIMPLER (10 years of talking !!!; EC's High level group on

simplification)

MORE FLEXIBLE AND RESPONSIVE TO CURRENT

CHALLENGES (Structural reforms)

PRIVATE INVESTMENT CAN SUPPORT COHESION OBJECTIVES

AND RATHER CONVENTIONAL METHODS OF GRANTS CAN BE

MORE EFFECTIVE

monika.kirbis@gmail.com

+386 41 866 239