Nadia Calvino, General Director for budget European Commission Sofia, 16 June 2016
#EUBudget4Results
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
Limits
‒ It should not lead to automatic allocations
‒ It cannot replace political decision-making
‒ Time inconsistency issues: political vs. investment, evaluation vs. budgetary cycles
‒ Risk of "totemisation" of indicators
‒ Proportionality and Cost-effectiveness
‒ One size does not fit all
Performance budgeting is the process that links funds allocated to measurable results (OECD)
Realistic expectations are key to success: the process of improving the PBB framework is gradual and every step forward counts
Benefits
‒ Better informed budget allocation decisions
‒ Stronger administrative efficiency
‒ Stronger public accountability
"PBB is a tool which aims to improve the efficiency and effectiveness of public expenditure by linking the funding of
public sector organizations to the results they deliver, making systematic use of
performance information" (Dr Marc Robinson)
"You have to be careful in setting targets, to not set more than you could monitor
and manage, to not set targets for things which you have very little control over, and to very clearly distinguish between
the objectives and targets" (Dr Marc Robinson)
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
Mainstreaming: Policies are implemented via several programmes: - Climate action - Biodiversity - Gender equality
R&D
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
Progress in 2015:
Development of conceptual framework for the implementation of the BFOR initiative within the new MFF
Establishment of internal governance: Political leadership and technical workstreams
Draft Budget 2016: Reinforced programme statements
Upgrading the Commission's SPP cycle
Public outreach:
- BFOR national events
- Conference BFOR, 22 September 2015
- EU Results web app (750 projects)
Milestones for 2016:
Expert group on PBB
Draft Budget 2017: Reinforcement of programme statements
2015 Annual Management and Performance Report for the EU Budget
Framework for cooperation with the OECD
Communication on Mid-Term Review of the MFF and BFOR
Revision of the Financial Regulation
Public outreach:
- BFOR national events
- Conference BFOR, 27 September 2016
- 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
dependent on the mix between pre-financing, 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 current programmes).
has decreased by some 10 % compared with the situation in 2014. This is notably due to the reduction in the amount at risk reported in agriculture.
The estimated amount at risk at closure
below the 2% materiality threshold
Estimated
amount at risk
as to the
relevant
expenditure of
the year
Estimated
future
corrections
Estimated
amount at
risk
at closure
- =
Outlook at closure regarding
2015 expenditure
EU budget is adequately protected- Key role of Member States in this area
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 international standards
The performance of the EU budget must consider the multiplicity of objectives as well as the complementarity and mainstreaming of policies and programmes
EU budget is adequately protected - key role of Member States in this area
There is strong political momentum to progress in the implementation of the PBB framework embedded in the current MFF
“I want to make sure that every action we take delivers maximum performance and value added” Jean Paul Juncker
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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