1 Committee of the Regions Commission on the EU Budget 13 February 2014 Opinion on the EU Budget execution Manfred Kraff Deputy Director-General DG Budget.

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Committee of the RegionsCommission on the EU Budget

13 February 2014

Opinion on the EU Budget execution

Manfred KraffDeputy Director-General DG Budget

Accounting Officer of the Commission

1. SPEED OF BUDGET IMPLEMENTATION

2. BUDGET IMPLEMENTATION ERRORS

3. LIQUIDITY AND FINANCIAL PLANNING PROBLEMS

4. FOCUS ON RESULTS

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AGENDA

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Opinion on the EU Budget execution 13 February 2014

SPEED OF BUDGET IMPLEMENTATION

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Country DECIDEDPrefinancing

(POA)Interim

Payments (IP)Total Payments

(POA+IP)

ABSORPTION INTERIM

PAYMENTS

ABSORPTION TOTAL

PAYMENTS

(EUR million) 1 2 3 4 = 2 + 3 5 = 3 / 1 6 = 4 / 1

Austria 524.4 39.3 408.4 447.8 77.88% 85.38%Belgium 1 073.2 80.5 689.9 770.4 64.29% 71.78%Bulgaria 1 185.5 106.7 574.6 681.3 48.47% 57.47%Cyprus 119.8 10.8 65.8 76.6 54.95% 63.95%Czech Republic 3 787.8 339.7 1 800.6 2 140.3 47.54% 56.51%Denmark 254.8 19.1 128.8 147.9 50.54% 58.04%Estonia 391.5 50.9 301.1 352.0 76.90% 89.90%Finland 618.6 46.4 439.6 486.0 71.07% 78.56%France 5 394.6 404.6 2 877.4 3 282.0 53.34% 60.84%Germany 9 380.7 703.6 6 204.3 6 907.9 66.14% 73.64%Greece 4 363.8 327.3 2 271.0 2 598.3 52.04% 59.54%Hungary 3 626.9 471.8 1 557.2 2 029.0 42.93% 55.94%Ireland 375.4 28.2 234.5 262.7 62.48% 69.98%Italy 6 930.5 520.4 3 878.4 4 398.8 55.96% 63.47%Latvia 583.1 71.6 482.4 553.9 82.72% 95.00%Lithuania 1 028.3 133.7 677.1 810.8 65.85% 78.85%Luxembourg 25.2 1.9 15.1 17.0 59.94% 67.43%Malta 112.0 10.1 51.7 61.8 46.19% 55.19%Netherlands 830.0 62.3 450.3 512.6 54.26% 61.76%Poland 10 007.4 873.7 6 322.3 7 195.9 63.18% 71.91%Portugal 6 853.4 488.4 5 200.0 5 688.4 75.87% 83.00%Romania 3 684.2 478.9 1 031.4 1 510.4 28.00% 41.00%Slovakia 1 499.6 135.0 585.5 720.5 39.05% 48.05%Slovenia 755.7 68.0 464.4 532.4 61.45% 70.45%Spain 8 053.0 604.3 4 469.5 5 073.8 55.50% 63.00%Sweden 691.6 51.9 358.7 410.6 51.87% 59.37%United Kingdom 4 498.9 335.6 2 495.9 2 831.5 55.48% 62.94%

TOTAL 76 649.7 6 464.4 44 036.0 50 500.4 57.45% 65.88%

Period 2007-2013

ESF Absorption (end 2013)

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Period 2007-2013

ERDF Absorption (end 2013)

Country DECIDEDPrefinancing

(POA)Interim

Payments (IP)Total Payments

(POA+IP)

ABSORPTION INTERIM

PAYMENTS

ABSORPTION TOTAL

PAYMENTS

(EUR million) 1 2 3 4 = 2 + 3 5 = 3 / 1 6 = 4 / 1

Austria 680.1 51.0 309.0 360.0 45.44% 52.94%Belgium 990.3 74.3 573.6 647.9 57.93% 65.43%Bulgaria 3 205.1 288.5 1 356.9 1 645.4 42.34% 51.34%Croatia 228.4 - - - 0.00% 0.00%Cyprus 279.5 25.2 167.1 192.2 59.79% 68.79%Czech Republic 13 932.8 1 233.8 5 746.8 6 980.6 41.25% 50.10%Denmark 254.8 19.1 110.3 129.4 43.29% 50.79%Estonia 1 860.2 167.4 1 301.7 1 469.2 69.98% 78.98%Finland 977.4 73.3 648.9 722.2 66.39% 73.89%France 8 052.7 604.0 4 233.7 4 837.7 52.57% 60.07%Germany 16 108.0 1 208.1 9 914.3 11 122.4 61.55% 69.05%Greece 12 149.3 911.2 7 808.6 8 719.8 64.27% 71.77%Hungary 12 649.7 1 138.5 7 055.4 8 193.9 55.78% 64.78%Ireland 375.4 28.2 235.2 263.3 62.65% 70.15%Italy 21 027.3 1 577.1 8 028.1 9 605.2 38.18% 45.68%Latvia 2 407.6 219.6 1 300.7 1 520.3 54.02% 63.15%Lithuania 3 442.0 309.8 2 425.8 2 735.6 70.48% 79.48%Luxemburg 25.2 1.9 15.3 17.2 60.74% 68.23%Malta 444.0 40.0 172.7 212.7 38.90% 47.90%Netherlands 830.0 62.3 485.1 547.3 58.44% 65.94%Poland 34 791.0 3 000.5 21 932.5 24 932.9 63.04% 71.66%Portugal 11 498.2 887.9 8 068.3 8 956.2 70.17% 77.89%Romania 8 976.5 807.9 2 483.9 3 291.8 27.67% 36.67%Slovakia 6 100.0 536.6 2 950.8 3 487.4 48.37% 57.17%Slovenia 1 933.8 174.0 1 304.9 1 479.0 67.48% 76.48%Spain 23 057.2 1 729.3 12 347.6 14 076.9 53.55% 61.05%Sweden 934.5 70.1 636.2 706.3 68.08% 75.58%United Kingdom 5 392.0 406.2 2 370.4 2 776.6 43.96% 51.50%Territorial Cooperation 7 922.8 648.7 3 979.5 4 628.2 50.23% 58.42%

TOTAL 200 525.7 16 294.2 107 963.5 124 257.7 53.84% 61.97%

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Period 2007-2013

CF Absorption (end 2013)

Country DECIDEDPrefinancing

(POA)Interim

Payments (IP)Total Payments

(POA+IP)

ABSORPTION INTERIM

PAYMENTS

ABSORPTION TOTAL

PAYMENTS

(EUR million) 1 2 3 4 = 2 + 3 5 = 3 / 1 6 = 4 / 1

Austria - - - - 0.00% 0.00%Belgium - - - - 0.00% 0.00%Bulgaria 2 283.0 239.7 734.8 974.5 32.18% 42.68%Croatia 149.8 - - - 0.00% 0.00%Cyprus 213.2 22.4 84.1 106.5 39.46% 49.96%Czech Republic 8 819.0 926.0 3 521.4 4 447.4 39.93% 50.43%Denmark - - - - 0.00% 0.00%Estonia 1 151.7 144.0 801.3 945.3 69.57% 82.07%Finland - - - - 0.00% 0.00%France - - - - 0.00% 0.00%Germany - - - - 0.00% 0.00%Greece 3 697.2 277.3 2 466.0 2 743.3 66.70% 74.20%Hungary 8 642.3 1 080.3 3 456.4 4 536.7 39.99% 52.49%Ireland - - - - 0.00% 0.00%Italy - - - - 0.00% 0.00%Latvia 1 539.8 192.5 721.7 914.2 46.87% 59.37%Lithuania 2 305.2 288.2 1 502.7 1 790.9 65.19% 77.69%Luxemburg - - - - 0.00% 0.00%Malta 284.2 29.8 118.1 148.0 41.57% 52.07%Netherlands - - - - 0.00% 0.00%Poland 22 387.2 2 328.5 11 132.5 13 461.0 49.73% 60.13%Portugal 3 060.0 229.5 1 970.8 2 200.3 64.41% 71.91%Romania 6 552.4 819.1 1 573.3 2 392.3 24.01% 36.51%Slovakia 3 898.7 409.4 1 432.2 1 841.5 36.73% 47.23%Slovenia 1 411.6 148.2 420.1 568.3 29.76% 40.26%Spain 3 543.2 265.7 2 309.8 2 575.6 65.19% 72.69%Sweden - - - - 0.00% 0.00%United Kingdom - - - - 0.00% 0.00%TOTAL 69 938.5 7 400.5 32 245.1 39 645.6 46.10% 56.69%

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Opinion on the EU Budget execution 13 February 2014

BUDGET IMPLEMENTATION ERRORS

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ECA AR 2012- Error Rate evolution

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ECA AR 2012- Summary

CHAPTER 2012 vs. 2011 OVERALL CONCLUSION

3. Agriculture: Market and direct support

3.8% 0.9%Overdeclarations of land & Administrative errorsWeaknesses in ‘first level checks’ (paying agencies)

4. Rural Development, Environment, Fisheries and Health

7.9% 0.2%

Errors in all Member States and almost all measuresNon respect of eligibility requirementsWeaknesses in ‘first level checks’ (paying agencies)

5. Regional policy; Energy and Transport

6.8% 0.8%

Issues in eligibilityPublic procurementWeaknesses in ‘first level checks’ (managing authorities and intermediate bodies)

6. Employment and social affairs

3.2% 1.0%Issues in eligibilityWeaknesses in ‘first level checks’ (managing authorities and intermediate bodies)

7. External aid, Development and Enlargement

3.3% 2.2% Principal identifiable reason of increase is Court's methodological change

8. Research and other internal policies

3.9% 0.9% Principal identifiable reason of increase is Court's methodological change

9. Administrative and other expenditure

0.0% -0.1%

Statement of assurance (DAS)

4.8% 0.9%Third year increaseOnly a third (0.3) due to methodological change.

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Protection of EU Budget COM(2013)862– Key figures

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Protection of EU Budget COM(2013)862– Implementation

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Protection of EU Budget COM(2013)862– EAGF

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Protection of EU Budget COM(2013)862– ERDF + ESF

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Opinion on the EU Budget execution 13 February 2014

LIQUIDITY & FINANCIAL PLANNING PROBLEMS

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Comparison between the 2007-2013 financial framework and the annual budgeted appropriations

Period 2007-2013

- Gap in Payments

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Period 2007-2013

- Execution, Back-log - RAL

EUR million

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EC outstanding budgetary commitments and pre-financing per MFF heading and in years of commitments/payments

Pre2007 - 2012- Outstanding Commitments,- Pre-financings

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Opinion on the EU Budget execution 13 February 2014

FOCUS ON RESULTS

Getting results from EU Budget

The Chapter is subdivided in three parts and covers performance issues only:

1. Art. 318 TFEU Evaluation Report (two paragraphs only)2. 2012 Annual Activity Reports (DG COMP, DG MOVE, DG MARE)3. ECA Special Reports published in 2012

Main issues in Chapter 10:

•Evaluation Report: ECA acknowledges progress but concludes that it did not provide sufficient, relevant and reliable evidence on what the EU policies have achieved. => NEW KEY INTEREST FOR THE EP (CONT):

MEP THEURER's Report 2013/2172(INI)•AARs: ECA identified weaknesses as regards the formulation of SMART objectives and RACER indicators•Special Reports: ECA repeats some observations made in 2012 SRs, e.g. the lack of availability of data to measure performance

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ECA AR 2012

- Chapter 10

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Thank you for your attention