Transcript Slide 1

The revised Financial Regulation and
the new 2014 – 2020 Financial
Framework
Laurent SARAZIN
Head of Unit, DG EuropeAid R/3 – Legal Affairs
The FIDIC-MDB Harmonised Construction Contract Conference
Brussels, 25 – 26 June 2012
1
Introduction

Revision of the Financial Regulation - state of play

The Common Implementation Regulation (CIR)
and MFF package

The new EU policy framework : the "Agenda for
Change"
2
New Financial
Regulation
Calendar
Last estimate : 1/1/2013
2011
FR BUDGET
April 2011
May 2010
2013
2012
IR BUDGET
COREPER
HU PRESIDENCY
TEXT
FR EDF
PRAG
COMMISSION
PROPOSAL
TRILOGUE
(1ST READING)
November 2011
EUROPEAN PARLIAMENT
AMENDMENTS
EUROPEAN PARLIAMENT
Last deadline for entry into force
2010
MFF - EXTERNAL ACTION FINANCIAL INSTRUMENTS
December 2011
PROPOSALS
3
Management modes
Current
architecture
From 5 categories ….
centralised
direct
Shared
(Member
States)
Decentralised
(Third
Countries)
Joint
(international organisations)
Indirect
• All implementing partners of EU
funds are public
• Heterogeneous regimes for the
rules applicable to expenditure
4
Management modes
New
architecture
….To
….To
….To3
33main
main
maincategories
categories
categories
EU
EU
EUBudget
Budget
Budget
Direct
Direct management
management
Shared
management
Member States
Heads of Delegation
Indirect management
Third countries
International organisations
National agencies and Financial
Institutions (public or private with
public service mission)
Authorising Officers
EIB-EIF
Public & Private Partnerships
CFSP Missions
Regulatory agencies
5
New entities
•Public Private Partnerships: cooperation between
public authorities and private sector for performance
of public contracts or concessions, complying with:
• Established in a Member States;
• Providing adequate financial guarantees;
• Entrusted with a public-private partnership
•Financial Institution implementing “financial
instruments”, complying with the definition of
"public body or private body entrusted with a public
service mission".
6
Procurement
CURRENT THRESHOLDS
New thresholds
Service contracts
PROPOSED THRESHOLDS
> 200,000
International
restricted
> 300,000
International
restricted
10,000 –
200, 000
FWC (where
possible) /
Competitive
Negotiated
20,000-300,000
FWC / Competitive
negotiated / AMI
0 – 10,000
Single tender
2,500-20,000
Single tender
0-2,500
Invoice
7
Procurement
CURRENT THRESHOLDS
New thresholds
Supply contracts
PROPOSED THRESHOLDS
> 150,000
International open
> 300,000
International open
60,000-150,000
Local open
100,000-300,000
FWC / Local open
10,000-60,000
Competitive
negotiated
100,000 -20,000
FWC / Competitive
negotiated
0-10,000
Single tender
2,500 -20,000
Single tender
0-2,500
Invoice
8
Procurement
CURRENT THRESHOLDS
New thresholds
Works contracts
PROPOSED THRESHOLDS
> 5,000,000
International open /
International
restricted
(exceptional)
> 5,000,000
International open /
International
restricted
300,000-5,000,000
Local open
300,000-5,000,000
Local open
10,000-300,000
Competitive
negotiated
20,000-300,000
Competitive
negotiated
0-10,000
Single tender
0-20,000
Single tender
9
Procurement
•New case for negotiated procedure:
•Replacement of contractor - where a new
contract has to be concluded because of an early
termination of an existing contract
10
Procurement
CURRENT RULES
Guarantees on
pre-financing
PROPOSED RULES
Procurement - pre-financing > Procurement
150.000
- where financial
capacity is not
assessed
-possible waiver:
public bodies
Authorising
Officer's (AO)
Risk
assessment
- or where
financial capacity
is not assessed
11
Common Implementing Regulation (CIR)
Development
Cooperation
Instrument
(DCI)
European
Neighbourhood
Instrument
(ENI)
Partnership
Instrument
(PI)
PreAccession
Instrument
(IPA)
Greenland
Instrument
EDF
(outside
MFF)
Thematic Programs
Global Public Goods
Non-State Actors &
Local Authorities
Pan-African Programme
European Instrument for Democracy & Human Rights (EIDHR)
Instrument for Stability (IFS)
Instrument for Nuclear Safety Cooperation (INSC)
Objectives :
• Avoiding divergence of rules along the legislative procedure
• Unique set of rules for the implementation of all instruments
12
Link between CIR
and FR
2 layers of
regulations
Financial Regulation
(the main ‘toolbox’)…
…completed by the Common
Implementing Rules (CIR)
(specificities authorised by the FR)
Geographical & thematic
for EU
External
regulations
Action
IMPLEMENTING PARTNERS & FINAL BENEFICIARIES
13
Harmonising on the basis of
the simplest rule
• Simplified tax regime (CIR Article 5)
- Where possible, negotiate full tax exemption with
third countries for EU aid disregarding the implementing
mode;
- Relation EU/contractors and grant beneficiaries: tax
actually incurred is an eligible cost of the action
• Simplified untying aid provisions (CIR Article 8-11)
- Common regime for developing countries
- Fully untying aid regime as common de minimis rule
for the origin of supplies and goods below 100,000 €.
The new EU policy
framework
- Focus on 2 pillars:
• Democracy, human rights &
good governance
• Inclusive & sustainable growth
for human development
- Concentration on max. 3 sectors per
country
- Aid focused on countries most in need
& where impact is greatest
(Differentiation)
- Common vision for EU+MS: joint
actions & programming promoted
“Agenda for
Change”