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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.

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slide1

The revisedFinancial 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
Introduction

Revision of the Financial Regulation - state of play

The Common Implementation Regulation (CIR) and MFF package

The new EU policyframework : the "Agenda for Change"

2

new financial regulation calendar
New Financial RegulationCalendar

Last estimate : 1/1/2013

2013

2010

2011

2012

April 2011

FR BUDGET

IR BUDGET

COREPER

HU PRESIDENCY

TEXT

FR EDF

May 2010

COMMISSIONPROPOSAL

PRAG

COMMISSION

DK PRESIDENCY

Last deadline for entry into force

TRILOGUE

(1ST READING)

EUROPEAN PARLIAMENT

November 2011

AMENDMENTS

EUROPEAN PARLIAMENT

MFF - EXTERNAL ACTION FINANCIAL INSTRUMENTS

December 2011

PROPOSALS

3

management modes current architecture
Management modes Current architecture

From 5 categories….

Shared

(Member States)

Decentralised

(Third Countries)

Joint

(international organisations)

centralised

direct

Indirect

  • All implementing partners of EU funds are public
  • Heterogeneous regimes for the rules applicable to expenditure

4

slide5

Management modes New architecture

….To 3 main categories

….To 3 main categories

….To 3 main categories

….To 3 main categories

….To 3 main categories

….To 3 main categories

….To 3 main categories

….To 3 main categories

….To 3 main categories

….To 3 main categories

EU Budget

EU Budget

EU Budget

EU Budget

EU Budget

EU Budget

EU Budget

EU Budget

Indirect management

Indirect management

Direct management

Direct management

Direct management

Direct management

Shared management

Shared management

Shared management

Third countries International organisations National agencies and Financial Institutions (public or private with public service mission)

EIB-EIF

Public & Private Partnerships

CFSP Missions Regulatory agencies

Member States

Heads of Delegation

Authorising Officers

5

new entities
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 new thresholds service contracts
Procurement New thresholds Service contracts

7

procurement
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

slide12

Objectives :

  • Avoiding divergence of rules along the legislative procedure
  • Unique set of rules for the implementation of all instruments
link between cir and fr
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 regulations

for EU External Action

IMPLEMENTING PARTNERS & FINAL BENEFICIARIES

harmonising on the basis of the simplest rule
Harmonising on the basis ofthe 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 €.
agenda for change

The new EU policy

framework

“Agenda for Change”

- 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