Gold-platingin the European Structural

and Investments Funds

Dr Kai BöhmeSpatial Foresight

21/03/2017 Presentation for the Committee on Regional Development 1

Structure of the Presentation

1. Objective & methodology2. Definition of gold-plating in ESIF3. Gold-plating in the programme cycle4. Reasons for gold-plating5. Effects of gold-plating6. Conclusions7. Recommendations

21/03/2017 Presentation for the Committee on Regional Development 2

Aim & methodology

Aim: Contribute to the debate and policy dialogue on gold-

plating related to cohesion policy Clarifying gold-plating in ESIF, its reasons and effects Providing pointers for actions to reduce gold plating

Methodology: Desktop analysis of literature and documents In-depth interviews with selected stakeholder Focus group with selected stakeholders Coverage 28 MS, 9 of which in-depth

21/03/2017 Presentation for the Committee on Regional Development 3

Definition of gold-plating in ESIF

Active gold-plating: additional administrativeprocedures and regulatory obligations that go beyond theESIF requirements set out at EU level.Passive gold-plating: national, regional or local playersfail to apply simplification measures proposed in the ESIFregulations.Administrative costs: costs for an administrative taskcarried by bodies responsible for managing a policy.Administrative burden: costs funds’ beneficiaries andfinal recipients have for complying with the informationobligations.

21/03/2017 Presentation for the Committee on Regional Development 4

Definition of gold-plating in ESIF

21/03/2017 Presentation for the Committee on Regional Development 5

ESIFEU regulatory

framework

other EUregulatory frameworks

nationalframeworks

sub-nationalframeworks

Interpretations ofregulatory frameworks

obligatoryadministrative

workload and costs

additionaladministrative

workload and costs

additionaladministrative

workload and costs

obligatoryadministrative burden

additionaladministrative burden

additionaladministrative burden

+

+

+

+

Programme management and implementation

Beneficiaries´ management and implementation of funded actions

Gold plating addingto the minimum

requirements of theESIF regulatory

framework

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Gold-plating in the programme cycleProgramme developmentand accreditation

Fundingapplications& eligibilitychecks

Reporting &monitoring

Payment .claims &

reimbursements

Financialcontrols

ProgrammeevaluationsGold-plating most

prominent in:- Eligibility- Reporting- Payment- Financial

controls

more rules = higher error risks = more uncertainty

Vested interests

Bad experience

Changing regulations

Delayed regulations

Interpretationuncertainties

Risk aversionand fear

Administrativetraditions and

cultures

Bureaucratic power

Lack of communication and cooperation

Complexity of the system

Inconsistencies &additional policy

objectives

Back seatdriving byauditors

21/03/2017 Presentation for the Committee on Regional Development 7

Reasons for gold-plating

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Effects of gold-plating

Increasedadmin

costs andburden

Reducedeffective-

nessFocus on how to implement rather onwhat to achieve (doing it the right way

prevails over doing the right thing)

ADMIN BURDEN (Beneficiaries)- More work (in particular for small

entities)

Disincentive to apply

ADMIN COSTS (programme bodies)- More work

Higher error risks

More goldplating

Gol

d-pl

atin

g

21/03/2017 Presentation for the Committee on Regional Development 9

more rules = more errors = more uncertainty

Gold plating in ESIF Increasedadmin

costs andburden

Reducedeffective-

ness

More goldplating

Focus on how to implement rather onwhat to achieve (doing it the right way

prevails over doing the right thing)

ADMIN BURDEN (Beneficiaries)- More work (in particular for small

entities)

Disincentive to apply

ADMIN COSTS (programme bodies)- More work

Higher error risks

Vested interests

Bad experience

Changing regulations

Delayed regulations

Interpretationuncertainties

Risk aversionand fear

Administrativetraditions and

cultures

Bureaucratic power

Lack of communication and cooperation

Complexity of the system

Inconsistencies &additional policy

objectives

Back seatdriving byauditors

Gold-plating in the case of ESIF

Conclusions on gold-plating in ESIF

Gold-plating increases administrative costs and burden Both active and passive gold-plating play a role Gold-plating happens irrespective of the administrative

level and time of ESIF management processes

Differences mainly between Member States Gold-plating mainly driven by audit fear and uncertainties Complexity of the system leads to vicious circles In some cases gold-plating might be justifiable

Reducing or avoiding gold-plating is a task for all players inthe ESIF shared management system

21/03/2017 Presentation for the Committee on Regional Development 10

Recommendations

All players need to reduce gold-plating in the2014-2020 period: EU legislators: increase transparency and promote

clarity, simplicity and continuity of rules. National level: e-governance should be further promoted,

national administrative changes can be launched. Programme level: focus on providing clarity to

beneficiaries and to make more use of SCO.Potential actions across levels include Capacity building, open dialogue, better focus on a

balance between compliance and performance. Encouraged use of simplification measures.

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Recommendations beyond 2020

At least 3 paths how to reduce gold-plating: Current system

increased shift from compliance to performance More & tighter rules

main focus on input control and compliance More flexibility & trust

main focus on achievements and performance

It is up to the legislators to choose the path

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21/03/2017 13

Thank you !

Dr Kai BöhmeSpatial Foresight GmbH

+352 691 87 32 49kai.boehme@spatialforesight.eu

www.spatialforesight.eu

Presentation for the Committee on Regional Development

Current system

More & tighter rules

More flexibility & trust