ipa ii – financial perspective 2014-2020

EU Enlargement

IPA II – Financial Perspective

2014-2020

European Union Delegation

11.04.2013, Skopje

EU Enlargement

What is Sector Approach?

Sector Approach is a way of working together between:

government

donors

other key stakeholders.

It is a process aiming at broadening government and national ownership over public sector policy and resource allocation decisions within the sector, increasing the coherence between policy, spending and results, and reducing transaction costs.

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What does Sector Wide Approach entail?

• A shift from stand alone projects to contribution to the development and implementation of a coherent, nationally owned programme in a given area/sector.

• There is no single definition of the policy area that can be considered a sector, nor is there an exhaustive list of possible sectors.

• A sector is a defined policy area under the responsibility of a line minister (following DG ELARG guidelines).

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Contrast between Sector Based Approach and Conventional Project Approach

Uncoordinated project approach Sector Wide Approach narrow focus on projects & narrowly

defined objectives bilateral negotiations and agreements donor-recipient relationships with

unbalanced power parallel implementation

arrangements short-term disbursement and success

of projects blueprint approach

country holistic view on entire sector external partners' coordination and

collective dialogue partnerships with mutual trust and

shared accountability increased use of local procedures long term capacity/system

development in sector process oriented approach through

learning by doing.

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Sector Wide Approach main principles

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What are relevant aspects of Sector Wide Approach in the context of IPA?

• The sector needs to be relevant in terms of preparation for EU accession. (N.B.: a sector is not the equivalent of a negotiation chapter. One and the same negotiation chapter can be relevant for different sectors and several chapters can be relevant for the same sector.)

• International and Bilateral Donors are to be consulted before the Sector Policy Document is agreed, a look at the list of sectors covered by these other donors is helpful (but should not determine the selection of supported sectors).

• "Institution building" or "alignment on the acquis" are not sectors as such but specific objectives which can be relevant for almost all sectors (except the sectors for which no further reforms are deemed necessary).

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Objectives of IPA II (Article 2 para.1)

Support for political reforms

Support for economic, social and territorial development and reforms, with a view to a sustainable, smart and inclusive growth

Strengthening of the ability to fulfil the obligations stemming from membership (progressive alignment with and implementation of the acquis and EU structural, cohesion, agricultural and rural development funds and policies)

Regional integration and territorial cooperation involving beneficiary countries, Member States (as well as third countries under the European Neighbourhood Instrument, as appropriate)

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Guiding principles for designing IPA II

Reinforced link between the financial assistance and the policy agenda

Contribute to the objectives of the EU 2020 Agenda

Good governance and capacity building remain core themes of financial assistance

More attention to socio-economic development and lasting impact

Stronger ownership of the reform agenda and related financial assistance

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Important issues for IPA 2

• Have a common understanding on the sector based approach

• Comprehensive and inclusive multi-level sector policy dialogue is the most important element

• A more differentiated approach with regards to the preparation for the absorption of EU cohesion funds

• More focused support on selected sectors• A more differentiated approach with regards to

implementation modalities

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IPA II: Structure of documents

IPA REGULATION COMMON IMPLEMENTING

REGULATION

IPA IMPLEMENTING REGULATION

IPA COMMON STRATEGIC FRAMEWORK

Strategy Papers (Country / Multi-Country)Programmes

(Country / Multi-country / CBC)Individual or Special measures

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Country Strategic Framework

• The CSF will follow the example of the structural funds and cover all countries and all policy areas, to achieve better alignment of the financial assistance and the enlargement policy.

• The CSF would be a EC owned document.

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Country Strategy Paper (CSP)

• The CSP would be more strategic and focused, based on a thorough needs assessment, preparing the country for accession.

• The identified priorities must be set in a time frame of seven years, and must be compliant and relevant, since there would be only one mid-term review.

• The Country Strategy Papers should be built around the four specific objectives develop for each of these objectives the three main considerations for financial assistance, i.e. the specific needs of the country concerned, its (current and to be developed) capacities and the impact on the state of preparedness for accession to be achieved by the end of the planning period in 2020.

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CSP _ What does it mean for EU priorities, IPA and the country?

• An overall objective defined for the period 2014-2020

• several Sector Programme for an IPA beneficiary should identify what is needed to modernize a sector and align it to EU standards;

• It should be based on a countries national strategies, development plans, and be underpinned by the EU’s overall enlargement policy as well as by the Accession Partnership and the SAA;

• Should allow for EU integration priorities and IPA funds to be strategically planned and sequenced at an early stage.

• Indicative amount for 2014-2020: EUR 600 million

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Indicative list of sectors (1)

Policy Area A) Transition process and institution building• Sector: Public Administration Reforms

– Subsector: PAR– Subsector: Public Financial Management

• Sector: Justice Home Affairs and Fundamental Rights– Subsector: Justice and Judiciary– Subsector: Home Affairs– Subsector: Human and Fundamental Rights

• Sector: Private Sector Development – Subsector: Business Environment and SME’s– Subsector: Competitiveness, Innovation, R&D– Subsector: Access to Finance– Subsector: Industrial and Business Infrastructure policy

• “Non Sector”: EU Integration Facility– Support for ad-hoc Acquis needs– Support for participation in UPA’s

Indicative allocation for period 2014-2020: EUR 120-150 million

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Policy Area B) Regional development• Sector: Transport and Energy

– Subsector: Roads– Subsector: Railways– Subsector: Energy Infrastructure

• Sector: Environment and Climate Change– Subsector: Water– Subsector: Waste– Subsector: Air– Subsector: Climate Change– Subsector: Integrated Pollution Prevention and Control

• Sector: Balanced local economic and regional development


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Policy Area C) Employment, social policies and human resources development– Subsector: Employment and employability– Subsector: Social Policies and Social Inclusion– Subsector: HRD


Policy Area D) Agriculture and Rural Development– IPARD Programme– Acquis support

Indicative allocation for period 2014-2020: EUR 80 - 90 million

Policy Area C) Regional and Territorial Cooperation– Subsector: CBC

Indicative allocation for period 2014-2020: EUR 30 million

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Time Line for adoption of key documents

2013 February-May: Support in facilitating the drafting process of the CSP and wider stakeholder consultations:

Government WG’s input by 19th of April 2013

Government input by 30th of April 2013

CSO/EUD input by 30th of April 2013

MS, IFIs, NMS, IOs input in May 2013

Consultation with regions and municipalities on 13-18 May 2013

EC would present the first official draft of the document in June 2013 for wider consultations

IPA 2014 annual programme to be adopted in parallel

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ipa ii – financial perspective 2014-2020

Documents