Management Plan 2015 - European Commission · Management Plan 2015 ... Mid-Term Review Ref....

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Management Plan 2015

DG Economic and Financial Affairs

Mid-Term Review

Ref. Ares(2015)3228103 - 31/07/2015

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Contents

PART 1. MISSION STATEMENT .........................................................................................................3

PART 2. THIS YEAR'S CHALLENGES ...................................................................................................4

PART 3. GENERAL OBJECTIVES OF THE POLICY ................................................................................6

3.1. Objective "To foster jobs, growth and investment".........................................................6

3.2. Objective "A deepened, efficient and fair Economic and Monetary Union" ...................7

3.3. Objective "To promote prosperity beyond the EU" .........................................................9

PART 4. SPECIFIC OBJECTIVES FOR OPERATIONAL ABB ACTIVITIES ..............................................10

4.1. ABB Activity "Economic and Monetary union"...........................................................10

4.2. ABB activity "Financial Operations and Instruments" ................................................11

4.3. ABB activity "International Economic and Financial Affairs"......................................12

4.4. Details on specific objectives per main ABB field. ......................................................13

PART 5. HORIZONTAL ACTIVITIES ...................................................................................................37

5.1. Policy strategy and coordination for DG Economic and Financial Affairs ..................37

5.2. Management of the Directorate-General for Economic and Financial Affairs...........38

5.3. Details on specific objectives per horizontal activity..................................................39

ANNEX 3. PRIORITISED INTERNAL CONTROL STANDARDS FOR EFFECTIVE MANAGEMENT..........47

ANNEX 4. PLANNING OF STUDIES (EVALUATIONS AND OTHER STUDIES) .....................................50

ANNEX 5. COMMUNICATION STRATEGY........................................................................................62

ANNEX 6. TASK FORCE FOR GREECE AND SUPPORT GROUP FOR CYPRUS ....................................64

1- Task Force for Greece (TFGR) ................................................................................64

2- Support Group for Cyprus (SGCY)..........................................................................66

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PART 1. MISSION STATEMENT

The mission of the Directorate-General for Economic and Financial Affairs is to contribute to raising the economic welfare of the citizens in the European Union and beyond, notably by developing and promoting policies that ensure sustainable economic growth, a high level of employment, stable public finances and financial stability.

* * * * *

In pursuing this mission, our core objectives are:

• to ensure a smooth functioning of the EU's Economic and Monetary Union through a strong economic governance framework;

• to promote sound macro-economic policies in the Member States to ensure balanced and sustainable growth and job creation, and to improve sustainability and quality of public finances, in the context of the Stability and Growth Pact, the Macroeconomic Imbalances Procedure, the Europe 2020 strategy and the European Semester and to undertake surveillance of Member States' economies, on the basis of preventive and corrective tools enshrined in secondary legislation, to promote fiscal sustainability and the prevention/correction of internal/external macroeconomic imbalances;

• to conduct macroeconomic adjustment programmes and in this context cooperate with the ESM. We also support efforts to safeguard financial stability by establishing and operating an effective system of macro-prudential supervision;

• to design and implement, in close cooperation with the European Investment Bank (EIB) Group and the European Bank for Reconstruction and Development (EBRD), EU investment programmes including the flagship "Investment Plan for Europe", to design financial assistance programmes and to undertake financial market operations and to manage the treasury and assets on behalf of other Commission services;

• to maintain close working relations with the EIB Group, the EBRD, the World Bank Group and other multilateral development banks, with a view to promoting EU priorities and common positions and ensuring appropriate coordination of the Commission's financial cooperation with these institutions. To maintain close working relations with the IMF and with the corresponding G7 and G20 groups to develop international strategies in the economic and financial area.

• to prepare the gradual enlargement of the euro area;

• to support economic prosperity, growth and stability not only within the EU but also at the international level by shaping global economic governance and EU international economic relations with a view to advancing EU interests and putting in place an efficient and robust policy framework conducive to a sustainable and balanced growth of the global economy, supported by an efficient and stable international monetary and financial system.

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PART 2. THIS YEAR'S CHALLENGES

Having come through the worst financial and economic crisis in generations, the EU has achieved much towards creating the foundations for sound and sustainable growth. However, despite these efforts, the economic recovery remains weak and is hampering efforts to reduce the high levels of unemployment.

The impact of the crisis has not only been cyclical, as highlighted by the weakness in aggregate demand, but also has a significant structural component which has lowered the potential growth of EU economies. While the global economic environment accounts for some of the current slowdown, specific domestic factors are impeding faster growth in the EU: fragmentation of financial markets, debt overhangs, incomplete adjustment of macroeconomic imbalances, low investment, very low inflation, and still weak confidence, partly reflecting uncertainties about the commitment to structural and institutional reforms.

DG ECFIN's overarching objectives for 2015 mirror the three key pillars of the economic strategy of the Commission: boosting investment, pursuing structural reforms and ensuring fiscal responsibility. Simultaneous action in all three areas is critical for restoring confidence, reducing the uncertainty that is impeding investment and maximising the strong mutually reinforcing effects of action on all three pillars. Given the urgency of revitalising growth across the EU, DG ECFIN will work towards strengthening the economic recovery, boosting investment and continuing the development of a deep and fair EMU in line with the Annual Growth Survey 2015, as will be set out in the upcoming Broad Economic Policy Guidelines.

DG ECFIN will continue to implement the economic governance framework, in particular for the euro area. In this context, it will promote the pursuit by Member States of budgetary positions that are sound, sustainable and of high quality in terms of their contribution to growth and investment. It will continue to assess implementation of structural reforms for jobs and growth, including work to detect and address macroeconomic imbalances at an early stage. The surveillance activities include the Commission's provision of policy guidance to Member States, which aims at enhancing the capacity of their economies to create growth and jobs; the coordinated approach supports the functioning of the Economic and Monetary Union and the internal market. In 2015, country surveillance will be strengthened and streamlined in the context of the European Semester of economic policy coordination.

The EFSF financial assistance programme with Greece expired on 30 June 2015. Following a request by the Greek authorities and agreement by euro-area Member States, DG ECFIN together with the IMF, ECB and ESM are negotiating a third financial assistance package with Greece under the ESM. This new ESM programme is necessary to stabilise the economy and ensure that Greece continues its adjustment process, thereby correcting its weaknesses and paving the way for a return to financial markets access. Since the time for the negotiation of this new ESM three year programme is limited, it was necessary to put in place a short-term bridge loan under the EFSM in July for Greece to enable the country to respect its external debt service obligations. Depending on the duration of the negotiations for the ESM programme, a second short-term bridge loan under the EFSM may have to be put in place in August. If negotiations for the ESM programme are successful, a first review of the new programme is expected to take place before end-2015. If the negotiations are not successful, DG ECFIN will look into contingency plans. In any case, DG ECFIN will continue to closely monitor the evolution of the economic and financial situation in Greece and the implementation of adjustment measures.

In close cooperation with the EIB, the Commission has launched an ambitious investment plan, with the aim of bridging the investment gap without creating new debt. The European Fund for Strategic Investments (EFSI) will mobilise additional finance, using innovative financial instruments to leverage its impact and that of European Structural and Investment Funds. This

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will be accompanied by other initiatives such as lifting regulatory hurdles and putting in place an investment advisory service to boost project development and preparation across Europe. While the full impact will be felt over a longer period, the new initiatives should start to deliver some results already in 2015.

In order to be able to deliver on the agenda for growth and jobs, the architecture of EMU needs further strengthening. This will secure the confidence of EU citizens and businesses in the euro and ensure that the European economy can better withstand economic and financial turbulence. Following the launch of the Banking Union, deepening and strengthening EMU requires deeper coordination of economic policies and effective and credible surveillance based on a strong analytical base. Following the review of the functioning of the economic governance legislation, which the Commission presented in November 2014, DG ECFIN will assess the options for further improving economic governance in order to ensure its efficiency, transparency and fairness.

The EU trade, investment and employment prospects are to a large extent contingent on the prosperity and continued integration of the global economy, including in the EU candidate countries and trade partners in its neighbourhood, supported by an efficient and stable international monetary and financial system. This requires shaping global economic governance and EU international economic relations with a view to advancing EU interests and putting in place an efficient and robust policy framework conducive to a sustainable and balanced growth path for the global economy.

The Commission took office with a strong commitment to foster growth and fight unemployment, with a focus on actions to increase investment. DG ECFIN is a key player with respect to the economic and social challenges facing the EU. This management plan sets out key priorities and deliverables that ECFIN aims to achieve in 2015 as part of the collective mission of the Commission to make the EU economy more competitive, resilient and equitable in order to help deliver on jobs, growth and investment. DG ECFIN is committed to pursuing the objectives and actions contained in this plan and will continuously monitor their progress throughout the year.

List of key performance indicators (KPIs) selected by the DG

1. Related to the objective "To foster jobs, growth and investment": EU's potential growth/output – see p. 6

2. Related to the objective "A deepened, efficient and fair Economic and Monetary Union": The dispersion of output gaps – see p. 7-8

3. Related to the objective "To promote prosperity beyond the EU": Countries benefiting from macro-financial assistance achieve a sustainable macro-economic situation - see p. 9

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PART 3. GENERAL OBJECTIVES OF THE POLICY

In pursuing the mission of the Directorate-General, in line with the strategic priorities of the Commission and against the background of the main challenges outlined in the previous sections, our general objectives are:

3.1. Objective "To foster jobs, growth and investment"

Making the EU more competitive and strengthening its growth potential, thus supporting employment creation. The European Semester, the Europe 2020 strategy and the Investment Plan for Europe are key vehicles through which progress towards meeting this objective will be pursued. In addition, economic analysis will be provided, including by publishing a forecast three times a year. General objective 1: To foster jobs, growth and investment

A European Union characterised by strong and sustainable growth, with higher investment and more efficient labour markets to the benefit of citizens and businesses

⌧ Non programme-based

Impact indicator 1: EU's potential growth/output Definition: The potential growth/output of the EU and the Member States is a well-established indicator of the medium-term growth outlook based on economic fundamentals. By increasing the EU's potential growth and economic structural strength, the EU economy will be in a better position to enjoy the cyclical upturn which is currently taking place. However, one needs to bear in mind that it is intrinsically difficult to distinguish cyclical from longer-term developments. Source of data: DG ECFIN Baseline (2014) 1

Milestone Current situation - 30/06/2015 2

Target

Estimates based on the Commission's Winter 2015 forecast show EU potential growth recovering to 1% in 2015 and 1 ¼% in 2016

Implementation of surveillance

Implementation of the Investment Plan for Europe

The Spring 2015 forecast has confirmed that potential output is set to edge up to about 1% in 2015 and 1.2 % in 2016 in the EU, as the contributions from capital, labour and TFP remain low.

As regards milestones, the Council adopted the European semester country-specific recommendations on 14 July.

Increase potential output growth by promoting the implementation of growth-enhancing measures at EU and Member States level.

Source: DG ECFIN

1 Here and afterwards, as the AMP 2015 was finalised on 17 February 2015, the baseline refers to the latest

information known at that date.

2 Here and afterwards, the updates include the state of play for milestones, where relevant.

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The Council adopted the EFSI regulation on 25 June.

Impact indicator 2: Employment rate Definition: Employment rate by sex (total), age group 20-64 - %, EU-28: The employment rate is calculated by dividing the number of persons aged 20 to 64 in employment by the total population in the same age group. The indicator is based on the EU Labour Force Survey. The survey covers the entire population living in private households and excludes those in collective households such as boarding houses, halls of residence and hospitals. Employed population consists of those persons, who - during the reference week - did any work for pay or profit for at least one hour, or were not working but had jobs from which they were temporarily absent.Source of data: Employment based on ESA 2010 methodology released for the first time on 12 December 2014 (indicator code: t2020_10): http://ec.europa.eu/eurostat/web/europe-2020-indicators/europe-2020-strategy.

Baseline (2014) Current situation - 30/06/2015 Target

Current level: 68.4% in 2013. Since the beginning of the recovery, the EU economy has made progress in recovering from the loss of employment during the crises. Since mid-2013, the improvement in labour market conditions has been evident in falling unemployment rates and increasing employment growth.

In the third quarter of 2014, employment grew by 0.3% in the EU. The annual growth rate of employment stood at 0.9%. This was the highest growth rate recorded since the beginning of the economic and financial crisis.

The Commission's winter 2015 forecast projects employment growth in 2015 at 0.7%.

EU-28 employment rate at 69.2% in 2014.

The improvement in labour market conditions continues in the EU, but the progress is subdued since the rise in economic activty is not strong enough to support a more marked improvement.

In the first quarter of 2015, employment grew by 0.3% in the EU compared with the previous quarter. Compared with 2014Q1, employment increased by 1.1%.

The Commission's Spring 2015 forecast projects employment growth in 2015 at 0.9%.

75% in 2020

3.2. Objective "A deepened, efficient and fair Economic and Monetary Union"

Taking full advantage of EMU's potential by implementing the economic governance framework, in particular for the euro area, promoting the adoption of structural reforms that improve Member States' adjustment capacity and employment and social outcomes, and pursuing surveillance mechanisms aimed at detecting and addressing macroeconomic imbalances at an early stage. General objective 2: A deepened, efficient and fair Economic and Monetary Union.


Impact indicator 1: The dispersion of output gaps Definition: The business cycles of euro-area Member States' diverged sharply following the sovereign crisis. Cyclical differences have recently come down as the recovery has gained strength but they remain high by historical standards. The large and persistent cyclical divergences currently

http://ec.europa.eu/eurostat/web/europe-2020-indicators/europe-2020-strategy

http://ec.europa.eu/eurostat/web/europe-2020-indicators/europe-2020-strategy

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observed in the euro area can mainly be explained by large heterogeneity in Member States' economic structures, inadequate national economic policies, insufficient cross-border integration and shortcomings in EMU architecture including inadequate risk sharing. Source of data: Quarterly Report on the Euro Area (2014), Vol. 13 No. 2 (Focus section on Growth differences between euro-area Member States since the crisis. Output gaps are taken from the AMECO database).

Baseline (2014) Milestone Current situation - 30/06/2015

Target

Cyclical divergence in the euro area, measured by the standard deviation of output gaps, has receded somewhat since its 2013 peak, but remains elevated and well above its long-term average. This is a serious concern since it: (i) impedes the smooth functioning of the euro area by making the single monetary policy less effective; (ii) may become entrenched and turn into lasting differences in structural growth; and, (iii) may undermine citizens’ trust in EMU and support for the euro.

Implementation of surveillance

Reduction in current account imbalances and stock of external liabilities

Contribution to the Five Presidents' Report on EMU architecture

Reliable measurement of output gaps is a pre-requisite for effective fiscal policy actions aimed at reducing output-gap dispersion. ECFIN plays an important role in developing the EU's commonly agreed methodology, in collaboration with the EPC & technical experts from all the EU Member States. The performance of the method is regularly assessed & compared to equivalent methodologies used by other international organisations, such as the OECD & the IMF.

The latest data on dispersion of output gaps from AMECO show that dispersion rates are still very high, with output gaps in 2014 ranging from -9.4% of GDP in Greece to +1.4% of GDP in Latvia. The average output gap for the EU28 countries was -2.4% in 2014, with the majority of the EU Member States in the range zero to -3%.

As regards milestones, European Semester country-specific recommendations were adopted by the Council on 14 July.

The Five Presidents' Report "Completing Europe's Economic and Monetary Union" was published on 22 June 2015.

Reduce the dispersion in the output gap to its long-term average.

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3.3. Objective "To promote prosperity beyond the EU"

Further the growth, stability, and resilience of the global economy and strengthen the role of the EU as an actor, in particular through enhanced economic surveillance of EU enlargement countries and financial operations to support EU neighbourhood policy; reinforcing the role of the Commission, in line with the TFEU, in international economic and financial institutions and fora, such as the G7, the G20, and the IMF, and preparing common positions on issues related to global macroeconomic policy coordination, the international monetary system, global surveillance, debt strategy and development and other global issues.

General objective 3: To promote prosperity beyond the EU ⌧programme-based

(MFA) Impact indicator 1: Countries benefiting from macro-financial assistance achieve a sustainable macro-economic situation Definition: The economic stabilisation and external and internal sustainability in a number of countries in the European Union's neighbourhood remains challenging. For the Union's Mediterranean neighbours, this is compounded by specific regional challenges. Some of these countries have requested EU financial support and others may require it in the near future. The implementation of MFA operations for Ukraine will remain a top priority. Source of data: IMF, Commission estimates Baseline Milestone Current situation -

30/06/2015 Target

Operations ongoing or set for implementation at the end of 2014 were for Ukraine, Jordan, Tunisia and Kyrgyz Republic

Amount of MFA disbursed

Five MFA operations ongoing: the 4 mentioned in the left-hand column plus Georgia. In the first half of 2015, tranche disbursements were made under all 5 operations (ranging from a EUR 10 m grant to Kyrgyzstan to a EUR 250 m loan to Ukraine).

Benefiting countries have achieved a sufficient level of foreign exchange reserves to ensure a sustainable macro-economic situation.

Impact indicator 2: International economic governance and participation in the G7, G20 and IMFDefinition: The Commission, in line with the TFEU, represents the EU in a number of international institutions dealing with global governance.

Baseline Milestone Current situation - 30/06/2015

Target

DG ECFIN coordinates the EU position on economic and financial issues dealt with by the G7 and the G20. DG ECFIN also coordinates common EU positions and statements in the IMF to advance the EU policy agenda.

Agreement on EU Terms of Reference (ToR) for G20 meetings

In the first half of 2015, DG ECFIN successfully coordinated and promoted EU economic and financial interests in a number of international institutions including the G7, G20 and IMF as well as in ongoing negotiations at the UN.

Strengthened global growth and financial stability. Enhanced promotion of the economic and financial interests of the EU at the international level.

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PART 4. SPECIFIC OBJECTIVES FOR OPERATIONAL ABB ACTIVITIES

4.1. ABB Activity "Economic and Monetary union"

Economic and Monetary Union has taken the EU a significant step further in its process of economic integration. Although significant progress has been made, such as 6-pack and 2-pack legislation and the Banking Union, additional steps remain necessary to move towards a deep and genuine EMU. The Commission will continue with the reform of Economic and Monetary Union to preserve the stability of the single currency and to enhance the convergence of economic, fiscal and labour market policies among the Member States that share the single currency, on the basis of the “Five Presidents' Report” and the Commission’s Blueprint for a Deep and Genuine Economic and Monetary Union. Against the background of the mandate given to the "five presidents" during the October 2014 Euro Summit to prepare next steps on better economic governance in the euro area, DG ECFIN will take forward work in this area. Concrete steps include the follow up to the 6/2 pack review, further encouragement of structural reforms, if necessary through additional financial incentives and a targeted fiscal capacity at euro-area level.

SPECIFIC OBJECTIVES

1. Economic Governance and euro-area reforms

2. Enhanced Integrated Surveillance

3. Acting as the economic service for the Commission as a whole

4. Euro-area enlargement

5. Financial assistance to Member States

6. Protection of the euro against counterfeiting

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4.2. ABB activity "Financial Operations and Instruments"

This activity encompasses an important part of the EU's arsenal of financial instruments to mitigate the impact of the global economic and financial crisis and preparing Europe's recovery path. The main deliverable for 2015 will be the design and roll-out of the European Fund for Strategic Investment (EFSI). The public risk-bearing capacity is to be well deployed and managed soundly so that targeted projects trigger job creation, economic growth and increase Europe's competitiveness. DG ECFIN will also follow up on the recommendations of the Special Task Force on Investment and, in particular, develop an EU portal providing access to a list of investable projects and will continue to participate in governance structures in the areas of financial instruments and financial support mechanisms, including the sound and efficient management of off-budget financial assets.

SPECIFIC OBJECTIVES

1. Bridging the investment gap, notably through the EFSI

2. To promote the use and enhance the efficiency of investment and EU financial instruments

3. To promote the EU interest in the governing bodies of the EIB/EIF and to strengthen the EU-EIB/EIF co-operation to align EIB/EIF lending with EU policy priorities

4. To ensure sound and efficient management and follow-up of financial operations

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4.3. ABB activity "International Economic and Financial Affairs"

In order to manage this process of increasing economic and financial interdependencies, the EU maintains economic relations with many countries, regions and institutions in the world. Its ultimate objective is to foster economic prosperity and stability in the EU and, while serving the Union's interests, also in the rest of the world.

DG ECFIN supports this by providing analysis and policy advice on international economic issues relevant to the EU, and by spreading the values and principles of the Union's economic framework and policy recommendations to other countries. The DG ensures the Commission's presence in multilateral economic fora; leads negotiations and regular dialogues on the economic aspects of bilateral relations with EU enlargement countries, several G20 countries and other regions and countries; through its representation at the Board of Directors of the EBRD, it ensures that the policies of the EBRD are increasingly aligned with EU policies in particular in case of co-financing; manages macro-financial assistance to third countries; strengthens co-operation in the external field with the EBRD, the EIB, other International Financial Institutions (IFIs) and multilateral development banks, and advises and co-manages financial instruments in the external field in close cooperation with other services of the Commission, in particular DGs DEVCO, NEAR and the External Action Service (EEAS).

SPECIFIC OBJECTIVES

1. Macro-financial assistance, notably to Ukraine

2. Cooperation and liaison in the external field with EIB, EBRD and other international financial institutions (IFIs)

3. Representation in G7, G20 and IMF

4. Enlargement and Neighbourhood policies

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4.4. Details on specific objectives per main ABB field.

1. ABB Activity "Economic and Monetary union"

(1) Heading 5 appropriations managed by the DG (global envelope) XX 01 02 (2) BA lines (XX 01 04) and, when relevant XX 01 05 and XX 01 06

Relevant general objectives: (1) To foster jobs, growth and investment (2) A deepened, efficient and fair Economic and Monetary Union Specific objective 1: Economic Governance and Euro-Area Reforms

To continue to strengthen economic governance and foster euro- area reforms, within the framework of the European Semester.


Result indicator 1: Percentage of Country Specific Recommendations (CSR) that have been partially or completely complied with. Definition: The EU issues country-specific recommendations for economic reform to its Member States under the European Semester. These recommendations for each EU Member State as well as for the euro area as a whole, issued by the Council on a recommendation by the Commission based on an assessment of the challenges, risks and policy gaps in the country concerned, aim to promote – both in the individual countries and in the EU as a whole as a result of an appropriate coordination of economic policies - sustainable economic growth and job creation, poverty reduction and social inclusion, productivity and competitiveness, while safeguarding and further advancing financial stability and sound public finances. The effectiveness of the country-specific recommendations in reaching these goals crucially depends on their implementation. Source of data: Synthetic indicator of EU-wide implementation of these recommendations: methodology explained in ECFIN Economic Brief Issue 37, October 2014. Regular updates since then. Baseline (2014) Milestone Current situation - 30/06/2015 Target

In 2014 there was at least some progress on around 50% of the 2013 CSRs.

Publication of country reports in Q1 2015

Adoption of CSRs in Q2 2015 under a streamlined and strengthened European Semester

Country reports were published on 26 February (COM(2015) 85)

CSRs were adopted on 13 May and were discussed with Member States and ECB in the ECOFIN–EPSC Committes between the end of May and mid-June 2015.

The Council introduced a limited

To achieve partial or complete implementation of CSRs, also through a regular monitoring on the part of the Commission.

ABB activity: Economic and Monetary Union

Financial resources

(€) in commitment appropriations

Human resources

Operational expenditure

Administrative expenditure

(managed by the service)

Total Establishment plan posts

Estimates of external

personnel (in FTEs)

Total

(1) (2)

13 024 800 - - 13 024 800 409 63 472

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number of changes in the COM proposed texts.

The Council adopted the 2015 CSRs on 14 July and issued a note explaining its position where it disagreed with the Commission recommendation.

Until May 2015, there was at least some progress on 55% of the 2014 CSRs; slightly above the score of the previous round.

Result indicator 2: Number of Member States compliant with their budgetary obligations under the Stability and Growth Pact. Source of data: Council decisions regarding Excessive Deficit Procedures (EDPs) Eurostat and DG ECFIN calculations regarding MTOs Baseline (2014) Milestone Current situation -

30/06/2015 Target

Nine Member States are in EDP. Four Member States have structural balances at their medium-term objectives (MTO).

Surveillance notes to EFC after each forecast round (Q1, Q2 and Q4).

Adoption of Opinion on SCPs and related CSRs in Q2 2015.

Adoption of steps under the EDP when necessary.

Adoption of COM Opinions on DBPs in Q4 2015.

Currently 7 Member States are in EDP.

In June 2015, the Council decided to abrogate the EDP for Malta and Poland.

Five Member States (namely, DK, DE, LU, NL and SE) have structural balances at their medium-term objectives (MTO).

All Member States comply with their budgetary obligations under the Stability and Growth Pact as laid down in the CSRs for Member States under the preventive arm and in the EDP recommendation for Member States under the corective arm.

Main outputs in 2015

Description Indicator Target

Proposal for Broad Economic Policy guidelines under article 121.2 TFEU

Q1 2015 – Published on 2.3.2015 (COM(2015)99)

Report on the transposition of the Fiscal Compact part of the intergovernmental Treaty on Stability, Coordination and Governance in the EMU (AP entry: 2015/ECFIN/031)

Report on the transposition by the Contracting Parties bound by the Fiscal Compact

Q4 2015

Horizontal assessment of Stability and Convergence Programmes

Note to EFC/Council Q2 2015

Implications of the Commission economic forecast for fiscal surveillance

Note to EFC February, May and November 2015

Possible procedural steps under the SGP (both under the EDP and the preventive arm)

Appropriate legal documents and accompanying SWDs

On continuous basis

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Country reports (combining In Depth Reviews for Member States indentified as having macroeconomic imbalances and the Staff Working Documents (SWD) under the European Semester)

Published on 26.2.2015 (COM(2015)85)

Follow-up on the 2015 Draft Budgetary Plans

Note to the EWG March 2015

Contribution to Country Specific Recommendations, including opinions on the Stability and Convergence Programmes for all non-programme EU Member States

Legal documents and accompanying note with a technical assessment of the SCPs for each non-programme EU Member State

Published on 13.5.2015 (COM(2015)251) Council adoption on 14.7.2015

Opinions on the 2016 Draft Budgetary Plans for non-programme euro-area Member States

Commission opinion for each non-programme EA Member State and accompanying SWDs

November 2015

Overall assessment of draft budgetary plans for 2016 in the euro area(AP entry: 2015/ECFIN/011)

Communication November 2015

Initiatives for a deeper and fairer EMU in line with Commission Work Programme including follow-up to the review of the 6 pack / 2 pack and possible proposal on a more efficient external representation of EMU; the follow-up could include the integration into the legal EU framework of the European Union of the remaining elements on the Treaty of Stability Coordination and Governance (TSCG) (AP entry: 2015/ECFIN/018)

Preparation of possible legislative and non-legislative initiatives from the Commission

Q3-Q4 2015

Commission assessment on the transposition of the Council Directive 2011/85/EU on requirements for budgetary frameworks.

Internal assessments prepared for all 28 MS Q2 2015

Alert Mechanism Report AMR 2015 November 2015

Compendium on the application of the MIP

2015

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Relevant general objectives: (1) To foster jobs, growth and investment (2) A deepened, efficient and fair Economic and Monetary Union Specific objective 2: Enhanced Integrated Surveillance

To promote the pursuit by Member States of sound macro-economic policies to ensure balanced and sustainable growth and to improve sustainability and quality of public finances, within the context of the EU 2020 strategy and the European Semester.


Result indicator 1: Business and Consumer Surveys (BCS) published monthly for 28 EU MS and for candidate countries.

Baseline Current situation - 30/06/2015

Target (2015)

12 monthly press releases on latest BCS results (ESI and BCI press on 2nd last working day of the reference month and four releases on quarterly developments ('European Business Cycle Indicators' published one week after the reference quarter

(ESI/BCI published on 29.01.2015, 26.02.2015, 30.03.2015, 29.04.2015, 28.05.2015 and 29.06.2015; EBCI published on 13.01.2015 and 14.04.2015)

Continued timely publication

Result indicator 2: Accuracy of the forecast exercise Baseline Milestone Current situation -

30/06/2015 Target (2015)

The Commission staff track record generally in line with that of the OECD, IMF and Consensus Economics, according to a December 2012 study

An update and extension of the 2012 study by September 2015

An update of the forecast accuracy and a decomposition of the forecast errors will be published by end-2015.

Accuracy comparable to the accuracy of the forecasts of the other major international forecasters, such as the IMF, OECD, consensus

Result indicator 3: Number of policy areas covered by CSRs for which an assessment framework has been provided

Baseline Current situation - 30/06/2015 Target (2015)

Providing a number of analytical assessment frameworks and studies in the areas of structural reforms, competitiveness and innovation, services and digital economy, energy, transport and climate change, cohesion policy, current account, housing, deleveraging, and spillovers

Assessment methodologies for current account balances were refined in Spring 2015.

Work is ongoing on new methodologies for housing prices and private debt.

Pilot exercise on the quantification of structural reforms (forthcoming).

Assessment framework on energy, transport, SOEs, Cohesion policy and infrastructure completed and used in the context of the European Semester.

Identification of regulatory bottlenecks to investment.

Full coverage

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Main outputs in 2015:


Commission staff publishes three European Economic Forecasts per year (Winter, Spring, Autumn).

Publication - (Published on 05.02.2015 and 05.05.2015)

Timely publication

Four quarterly and 12 monthly publications on BCS results.

Publication Timely publication

Quarterly reports on the Euro Area Publication - (Published on 01.03.2015, 10.07.2015)

March, June, October and December 2015

Potential growth and output gap Estimates for the 28 Member States December2015

Analytical assessment frameworks and studies

Estimation of global macro models

Publications, workshops, notes to EPC

Timely delivery - 11 discussion papers will be published in the first half of September 2015 as a result of the biannual ECFIN Fellowship initiative "Mapping the New Normal EMU in the global economy"

Maintaining and updating the AMECO database

Three public annual updates linked to forecasts and regular internal updates

Publication dates of the economic forecasts

Procurement of external commercial data supply services for DG ECFIN: €1,000,000. Number of contracts: 20

100% paid or committed

Relevant general objectives: (1) To foster jobs, growth and investment (2) A deepened, efficient and fair Economic and Monetary Union Specific objective 3: Acting as the economic service for the Commission as a whole


Result indicator 1: Provide macro-relevant estimates of the impact of EU policies for the whole of the Commission Baseline Current situation - 30/06/2015 Target (2020)

Economic service function focused on 3 key initiatives (Digital Single Market (DSM), energy and services)

Report on investment to be published in July and part of the Market Design package.

Quarterly Report on the Euro Area: Focus on the euro area services sectors (Volume 14, No 2 – 2015)

Estimation of service sector mark-ups determined by structural reform indicators (European Economy. Economic Papers 547, April 2015).

Increase the focus on impact on investment. Provide an assessment of the contribution of EU policies and structural reform at national level to the outcome of the EU2020 strategy.

18



Estimated 10 internal and EPC notes 25 impact assessments and 300 ISCs

Timely delivery

Relevant general objectives: (1) To foster jobs, growth and investment (2) A deepened, efficient and fair Economic and Monetary Union Specific objective 4: Euro-Area Enlargement

To further prepare the enlargement of the euro area and to support the continuing changeover to the euro at EU level in order to take full advantage of EMU's potential.


Result indicator 1: Level of progress by non-euro-area Member States towards sustainable convergence. as a precondition for future euro-area enlargements Source of data: Eurostat

Baseline Current situation - 30/06/2015 Target

Lithuania became the 19th euro-area member on 1 January 2015. In 2014 the non-euro-area Member States without an opt-out fulfilled the criteria as follows:

Bulgaria: met 3 of 5 criteria (60%)

Czech Republic: 60%

Croatia: 60%

Lithuania: 100%

Hungary: 60%

Poland 40%

Romania: 40%

Sweden: 60%

Next assessment of convergence criteria to be carried out in the course of 2016.

Progress on economic convergence and integration with the euro area

Result indicator 2: Level of citizens' awareness and support for introducing the euro in 7 non-euro-area Member States and Sweden as reported by Eurobarometer. Source of data: Eurobarometer


In 2014: on average 52% in favour of adopting the euro

The April 2015 Eurobarometer survey (EB 418) in the seven non-EA countries (Bulgaria, Czech Republic, Croatia, Hungary, Poland, Romania – first time - and Sweden) shows an average support of 49%. Support varies significantly across MS, ranging from highest support in Romania (68%), Hungary (60%), Bulgaria (55%), Croatia (53%), to a majority against in Czech Republic (70% against), Sweden (66%) and Poland (53%).

Increase in support

19



Ongoing monitoring of public opinion in non-euro-area countries and extension of monitoring to Sweden by April 2015

Number of surveys 1

Relevant general objectives: (1) To foster jobs, growth and investment (2) A deepened, efficient and fair Economic and Monetary Union Specific objective 5: Financial assistance to Member States

To preserve macro-economic and financial stability in the EU by providing financial assistance: to euro-area Member States facing a severe deterioration of their borrowing conditions; and to Member States outside the euro area facing difficulties with their balance of payments.


Result indicator 1: Programme execution on track for ongoing programmes (as indicated in Quarterly reviews) To preserve financial stability in the EU by providing financial assistance: to euro-area Member States facing a severe deterioration in their borrowing conditions; and to Member States outside the euro area facing difficulties with their balance of payments. Baseline Current situation - 30/06/2015 Target

In euro-area countries, regular quarterly reviews, in liaison with ECB and IMF. In non-euro-area countries two regular reviews per year under post-programme surveillance but the Commission can join the quarterly IMF review missions (i.e. de-facto also 4 missions p.a.).

Romania: Since the beginning of the second precautionary BoP programme in October 2013, no programme review has been completed due to Romania's non-compliance with policy conditionality.

Greece: The EFSF programme ended in June 2015. Hence there is a need for a successor arrangement since Greece has no access to financial markets. Discussions with the Greek authorities on the conditionality content of the programme to be supported by the ESM are ongoing.

Programme reviews completed as foreseen by programme or post- programme surveillance schedule.

Negotiation of a 3-year programme under the ESM and its Memorandum of Understanding. First review of that programme in October-November 2015, including agreement on a set of prior actions to trigger disbursements.

Result indicator 2: Reduce Balance of Payments stress for Romania as measured by gross international reserves Source of data: Central Bank of Romania Baseline Current situation - 30/06/2015 Target

Romania's gross international reserves as of end-September 2014 covered 115% of short-term external debt and around 6 months of imports of goods.

Romania's gross international reserves as of end-June 2015 covered 105% of short-term debt at remaining maturities and around 6 months of imports of goods and services.

Maintain adequate level of foreign reserves broadly covering short-term foreign debt by the end of the programme ending in September 2015.

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Monitoring programme targets International reserve levels Meeting programme targets and ensuring sustainability at expiration of programme

Relevant general objectives: (1) To foster jobs, growth and investment (2) A deepened, efficient and fair Economic and Monetary Union Specific objective 6: Protection of the euro against counterfeiting

⌧ Programme-based (Pericles programme)

Specific objective 6a: Protection of the euro against counterfeiting through the Pericles programme, established by Regulation (EU) No 331/2014 establishing an exchange, assistance and training programme for the protection of the euro against counterfeiting (the Pericles 2020 programme)3.

Specific objective 6b: Develop anti-fraud policy and legislation with respect to the protection of the euro against counterfeiting, and provide the support necessary for partners to protect the euro effectively.

⌧ Non Programme-based

Specific objective 6a: Result indicator 1: Number of euro counterfeits detected. Source: Article 4 of Regulation (EU) No 331/2014 Result indicator 2: Number of illegal workshops (mints and printshops) dismantled. Source: Article 4 of Regulation (EU) No 331/2014 Result indicator 3: Number of individuals arrested. Source: Article 4 of Regulation (EU) No 331/2014 Specific objective 6b: Result indicator 1: Degree of classification of euro coins and communication to Coin National Analysis Centres (CNACs).

Baseline 6a (2011) Milestone 6a (2017) Current situation - 30/06/2015

Target 6a (2020)

1: 606,000 notes and 157,000 coins detected.

+/- 5% compared to 2011.

529,332 notes and 75,520 coins detected

Keep counterfeits under control in an average +/- 5% compared to 2011.

2: 45 illegal workshops dismantled.

3% increase compared to 2011.

374 5% increase compared to 2011.

3: 6 858 individuals arrested/charged.

3% increase compared to 2011.

7,8825 5% increase compared to 2011.

Baseline 6b Milestone 6b (2017) Target 6b (2020)

100% classified. 100% classified. 50%6 100% of coins classified and communicated to the CNACs.

3 OJL 103/1 – 05.04.2014 4 Latest available data collected from the Member States refer to 2014 and do not include SK, PT, EE, CZ, IE. Complete data on police activities for 2015 (illegal workshops dismantled and number of individuals arrested/charged) will be available in June 2016. 5 See footnote 4. 6 Backlog due to the fact that the recruitment of the technical analyst is still in progress.

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Main Outputs in 2015.

Specific objective 6a: 4 seminars, 4 staff exchanges, 1 study and 1 purchase of equipment (4 applications were received under the 1st deadline and are still under the evaluation process). Specific objective 6b: European Technical Scientific Centre (ETSC). - Modification of the Commission Decision establishing the ETSC (2005/37/EC), to regulate the transfer of the activities on euro protection from OLAF to ECFIN (OJ L 19, 21.1.2005, p. 73) - replaced by a proposal for a Commission decision establishing CCEG (second semester of 2015). - 3 Euro Counterfeiting Experts Group (ECEG) Meetings, 2 Counterfeit Coin Experts Group (CCEG) and 2 European Technical and Scientific Centre (ETSC) work team meetings. (2 ECEG, 1 CCEG and 1 ETSC work team meetings were already held).

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2. ABB activity "Financial Operations and Instruments"

(1) Heading 5 appropriations managed by the DG (global envelope) XX 01 02 (2) BA lines (XX 01 04) and, when relevant XX 01 05 and XX 01 06.

Relevant general objectives: (1) To foster jobs, growth and investment (2) A deepened, efficient and fair Economic and Monetary Union Specific objective 1: Bridging the investment gap, notably through the EFSI


Result indicator 1: To increase investment with private sector participation Source of data: ECFIN L2/L3

Baseline (2014) Milestone (2015) Current situation - 30/06/2015

Target (2018) Achieving targeted increase in

investment

Commission Communication on the European Fund for Strategic Investments

Proposal by the Commission and adoption by the European Parliament and the Council of the EFSI Regulation

The proposal was adopted by the Commission on 13 January 2015 (COM(2015)10) and by EP and the Council on 25 June 2015 ((EU)2015/1017). The Regulation was published in the OJ on 1 July 2015.

The EFSI Agreement with EIB, the Advisory Hub Agreement with EIB, the Delegated Regulation on EFSI Scoreboard, the establishment of the Investment Portal and other documents relating to the implementation of EFSI were adopted by the Commission on 22 July 2015.

Creating EUR 315 billion investment.

ABB activity: Financial Operations and Instruments

Financial resources (€) in commitment appropriations

Human resources


Administrative expenditure (managed by the service)



personnel (in FTEs)

Total

(1) (2)

50 500 000 - - 50 500 000 76 8 84

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Legislative proposal for the establishment of the European Fund for Strategic Investments

Adopted by the Commission on 13 January 2015 (COM(2015)10)

January 2015

a. Agreement on the Management of the European Fund for Strategic Investments and on the EU Guarantee (AP entry : 2015/ECFIN/007)

b. Framework Partnership Agreement on the European Investment Advisory Hub (AP entry : 2015/ECFIN/019)

c. Commission Delegated Regulation establishing a scoreboard of indicators for the application of the EU guarantee (AP entry : ECFIN/2015/022)

d. Commission implementing decision creating the European Investment Project Portal setting out its technical specifications (AP entry : 2015/ECFIN/030)

a. + b. Adopted by the Commission and signed by the Commission and the EIB on 22 July 2015

c. + d. Adopted by the Commission on 22 July 2015

a. + b. + c. + d. Q3 2015 (following adoption of the EFSI Regulation)

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Relevant general objectives: (1) To foster jobs, growth and investment (3) To promote prosperity beyond the EU Specific objective 2: To promote the use and enhance the efficiency of investment and EU financial instruments


Result indicator 1: Number of beneficiary SMEs receiving financial support Source of data: EIF reports

Baseline 2014

Current situation – 31/03/2015

Target as defined for the entire duration

of the programme7

Cumulated figures for the entire programme period as of 30/06/2014 for CIP8, MAP9, G&E10, and as of 31/3/2014 for EPMF11 – latest available:

CIP: 347,197 (SMEG07: 346,783; GIF 414) (Number of final beneficiaries)

MAP: 234,726 (SMEG01: 234,413; ESU1201: 313 (data as of June 2014 for ESU01))

G&E: 137,175 (SMEG98:136,860; ESU98: 315 (data as of June 2014 for ESU98))

EPMF Guarantees: 10,169 micro-loans. EPMF FCP-FIS13: 10,942 micro-loans

Cumulated figures for the entire programme period as of 31/03/2015 for CIP, MAP, G&E, and as of 31/3/2015 for EPMF – latest available:

CIP: 370,049 (SMEG07: 369,577; GIF 472) (Number of final beneficiaries)

MAP: 234,726 (SMEG01: 234,413 ; ESU01: 313 (data as of June 2014 for ESU01))

G&E: 137,175 (SMEG98: 136,860; ESU98: 315 (data as of June 2014 for ESU98))

EPMF Guarantees: 18,061 micro-loans.

EPMF FCP-FIS: 19,783 micro-loans

CIP (target for the entire duration of the programme14): At least 316,950

MAP: At least 200,000 EPMF: (target for the entire duration of the programme) 46,000 microloans.

Result indicator 2: Total investment/loan volume leveraged (EU + other sources) Source of data: EIF reports

Baseline 2014

Current situation - 31/03/2015


of the programme

7 as per Annex to the Proposal for a Decision of the European Parliament and of the Council establishing a

Competitiveness and Innovation Framework Programme 2007-2013, COM(2005)121 final, SEC(2005)433 dated 6/04/2005, p. 6

8 Competitiveness and Innovation Programme 9 Multi-annual Programme for Enterprise and Entrepreneurship 10 Growth & employment 11 European Progress Microfinance Facility for Employment and social Inclusion 12 ESU : ETF (European Technology Facility) Start Up facility 13 Fonds Commun de Placement – Fonds d'Investissement Spécialisé 14 as per Annex to the Proposal for a Decision of the European Parliament and of the Council establishing a

Competitiveness and Innovation Framework Programme 2007-2013, COM(2005)121 final, SEC(2005)433 dated 6/04/2005, p. 6

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Figures as of 30/06/2014 for CIP, MAP, G&E, and as of 31/3/2014 for EPMF – latest available:

CIP: a) GIF: EUR 2,893 million (actual intermediary size);

b) SMEG07: EUR 17,871 million (loan amount).

MAP: a) "ESU01": EUR 1,320.1 million (actual intermediary size);

b) "SMEG01": EUR 16,824.9 million (loan amount).

G&E: a) "ESU98": EUR 513.1 million (actual intermediary size);


EPMF: a) Guarantees: EUR 92.30 million (actual volume of micro-loans to final beneficiaries).

b) FCP-FIS: EUR 79.23 million (actual volume of micro-loans to final beneficiaries).

ELENA15: EUR 23 million in TA for new projects.


CIP: a) GIF: EUR 3,108 million (actual intermediary size);

b) SMEG07: EUR 19,428.1 million (loan amount).

MAP: a) "ESU01": EUR 1,345 million (actual intermediary size);


G&E: a) "ESU98": EUR 518.1 million (actual intermediary size);


EPMF: a) Guarantees: EUR 199.5 million (actual volume of micro-loans to final beneficiaries).

b) FCP-FIS: EUR 133.7 million (actual volume of micro-loans to final beneficiaries).

ELENA: EUR 25 million in TA for new projects (investment generated EUR 1,194 million from 1/7/2013 to 30/6/2014).

CIP (target for the entire duration of the programme): EUR 13,000 million

MAP: EUR 8,000 million

EPMF: (target of the entire duration of the programme) EUR 500 million in loans

ELENA: minimum leverage 20/25 (technical assistance/ investment volume)

Result indicator 3: Number of jobs created or maintained in SMEs receiving new financing Source of data: EIF reports & L2 analysis

Baseline 2014



of the programme

Figures as of 30/06/2014 for CIP, MAP, G&E, and as of 31 March 2014 for EPMF – latest available:

CIP: a) GIF16: 6,844 (number of employees at final beneficiaries at date of first investment; data from Employment Report as at 31/12/2012);

b) SMEG0717: 1,225,640;


CIP: a) GIF: 6,844 (number of employees at final beneficiaries at date of first investment; data from Employment Report as at 31/12/2012);

b) SMEG07: 1,263,062 (number

CIP (target for the entire duration of the programme): 378,150

NB: no targets were defined for MAP or G&E in the initial programme when it was launched.

15 European Local Energy Assistance Programme 16 High Growth and Innovative SME Facility 17 SMEG : Small &Medium Enterprises Guarantees window (with year according to the relevant programme, i.e. 1998, 2001, 2007)

26

(number of employees at final beneficiaries at inclusion date).

MAP: a) ESU01: no information available;

b) SMEG01: 940,849 (number of employees at final beneficiaries at inclusion date).

G&E: a) ESU98: no information available;


EPMF (as of 31 March 2014 for EPMF):

a) Guarantees: 13,250 (total number of employees at first inclusion date);

b) FCP-FIS: 17,704 (total number of self-employed and employees of micro-enterprises at signature date of micro-credit loans).

of employees at final beneficiaries at inclusion date).

MAP: a) ESU01: no information available;

b) SMEG01: 940,849 (number of employees at final beneficiaries at inclusion date,).

G&E: a) ESU98: no information available;


EPMF: a) Guarantees: 29,714 (total number of employees at first inclusion date);

b) FCP-FIS: 31,718 (total number of self-employed and employees of micro-enterprises at signature date of micro-credit agreement).



Contribution to the reporting package on financial instruments to the Budgetary Authority; coordination of Article 140(8) reporting under Financial Regulation. (AP entry: 2015/ECFIN/08)

Reports 49.1 & 38.5 sent to DG BUDG on 27/4/2015 (advanced working copy sent to DG BUDG on 17/4/2015) in line with initial timetable foreseen in DG ECFIN letter of 3/2/201518 ; final version after review cycle with DG BUDG completed on 8/5/2015 (38.5), resp. 11/5/2015 (49.1). Report 140.8 : Adoption by the Commission foreseen by end of September 2015.

Reports 38.5 & 49.1 : reports to be submitted to BUDG by 17/4/2015

Report 140.8: ISC to be launched by 30/6/2015

Communication on National Promotional Banks (AP entry: 2014/ECFIN/029)

Adopted by the Commission on 22 July 2015 July 2015

Planned evaluations: Full-scale independent evaluation of the Project Bond Initiative

18 ARES(2015)42882

27

Relevant general objectives: (1) To foster jobs, growth and investment (3) To promote prosperity beyond the EU Specific objective 3: To promote the EU interest in the governing bodies of the EIB/EIF and to strengthen the EU-EIB/EIF co-operation to align EIB/EIF lending with EU policy priorities


Result indicator 1: Implementation of ex-ante coordination mechanism between the EIB and the Commission on projects and programmes and closer cooperation with the EIB Group and other financial institutions in particular within the EU Source of data: ECFIN L1 – GIB plus its Article 19 IT system

28

Baseline (2013/2014) Current situation - 30/06/2015 Target (2015)

a) (i) The Commission was informed of EIB lending inside EU: EUR 62 billion in total – only aggregated from 2015 onwards according to new Public Policy Goals;

(ii) For EIF :

- The Commission was informed of EIF venture capital commitments: EUR 1.5 billion;

- The Commission was informed of EIF guarantee/-microfinance commitments: EUR 1.9 billion

b) In the context of Art. 19, in 2013, 353 Commission opinions were delivered on time out of the 386 EIB project proposals received (i.e. 91%).

a) (i) EIB: Loan signatures year-to-date as of 31 May 2015 inside the EU stood at EUR 20.5 billion. This includes an increased share of Special Activities (c. 30% of total lending volumes) following launch of EFSI.

(ii) EIF: At the end of Q1 2015, EIF has signed EUR 735 million in venture capital commitments and EUR 1.7 billion in guarantee and microfinance commitments.

b) As of 10 July 2015, 197 EIB project proposals were processed under the Art. 19 procedure, of which 100% were delivered on time.

a) (i) The Commission is aware that EIB provides the following orientations for 201519 on Public Policy Goals:

- Innovation and skills: EUR 15 billion

- SME/access to finance: EUR 17 billion

- Resource efficiency: EUR 12.5 billion

- Strategic infrastructure: EUR 15.5 billion

(ii) The Commission is aware that EIF provides the following orientations20:

- Target venture capital commitments: EUR 1.9 billion

- Target guarantee/-microfinance commitments: EUR 2.8 billion

b) 95% timely delivery of Commission Opinions issued on EIB projects for which no follow-up questions have been requested to the EIB.


Description (Final output)

Indicator Target

Report on the effectiveness of the existing system of European public financing institutions in promoting investment in Europe and its Neighbourhood.

Adoption of the Communication to the Commission and presentation of the report to the European Parliament and the Council

December 2015

Planned evaluations: Study on effectiveness of existing system of European public financing institutions in promoting investment in Europe and its Neighbourhood to be completed in Q3 2015 - including qualitative assessment of the value-added of EIB and EBRD operations and instruments relative to a peer group

19 EIB orientations are described in the EIB Group Operational Plan 2015-2017. 20 Based on EIF's Corporate Operational Plan 2015-2017.

29

Relevant general objectives: (1) To foster jobs, growth and investment (3) To promote prosperity beyond the EU Specific objective 4: To ensure sound and efficient management and follow-up of financial operations


Result indicator 1: To ensure secure treasury and asset management under various mandates, the main ones being ECSC, Competition fines (BUFI), Participants Guarantee Fund (PGF) and Reserves of the Joint Sickness Insurance Scheme (JSIS) Source of data: ECFIN L5 Baseline (2014) Current situation - 30/06/2015 Target (2015)

The balances of the main mandates in terms of size were at 31/12/2014:

- BUFI portfolio: EUR 3,292 million.

- ECSC portfolio: EUR 1,738 million.

- PGF portfolio21: EUR 1,591 million.

- JSIS-portfolio: EUR 273 million.

The balances of the main mandates as of 31/05/2015 were:

- BUFI portfolio: EUR 3,097 million.

- ECSC portfolio: EUR 1,749 million.

- PGF portfolio: EUR 1,672 million.

- JSIS-portfolio: EUR 273 million.

The fines (BUFI portfolio) are to be invested in such a way as to ensure that funds are easily available when needed, while aiming for a return which is at least equal to the return guaranteed to the fined companies.

The assets are to be invested in such a way as to ensure that funds are available as and when needed, while still generating the highest return available, consistent with maintaining a high degree of security and stability over the investment horizon.

Result indicator 2: Mandates as Asset Management Designated Service (AMDS) - Monitoring of certain asset-management mandates outsourced under which the EIB and EIF invest funds on behalf of the Commission Source of data: ECFIN L5 Baseline (2014) Current situation - 30/06/2015 Target (2015)

To monitor the compliance of EIB's and EIF's asset management with Asset Management Guidelines.

The number of Asset Management mandates increases as the new Multiannual Financial Framework 2014-2020 is implemented. Currently 10 mandates (total amount under management: EUR 3.495 million as of 30/09/2014) are managed by EIB and EIF. The main mandates in terms of size are:

- NER300: EUR 1.631 million as of 30/09/2014

- RSFF: EUR 1.050 million as of

Total amount under management: EUR 4,337 million as of 31/05/2015.

The main mandates in terms of size are:

- NER300: EUR 2,128 million as of 31/05/2015

- RSFF: EUR 703 million as of 31/05/2015

To assist the Designated Service of the Commission (namely the operational departments managing the respective programmes to establish Asset Management Guidelines (AMGs) and to agree the Investment Strategies and Benchmarks with the Asset Manager (AM) as well as to monitor the investment process of the AM by reviewing its periodic reports.

Typically, the assets are to be invested in such a way as to ensure that funds are available as and when needed, while still generating the highest return available, consistent with maintaining a high

21 The financial management of the assets of the single PGF for the H2020 programme was transferred in April 2014 from

EIB to DG ECFIN.

30

30/09/2014 degree of security and stability over the long term.

Result indicator 3: Borrowing and lending activity - Financial support for third countries and Member States is provided by the Commission under the form of loans from the EU Source of data: ECFIN L4

Baseline (2014) Current situation - 30/06/2015 Target (2015)

a) Supporting the joint efforts of the Commission with the ECB and the IMF to address the consequences of the financial crisis in particular concerning the different financial instruments and facilities such as the EFSM, the EFSF, the Greek Loan Facility and the ESM.

b) The EFSM completed the planned funding of the Irish and Portuguese programmes in 2014).

c) The first loan under the EFSM facility to Ireland (EUR 5 billion) matures on 4-12-2015. Ireland may request its extension at least four months in advance.

d) To continue to administer the Greek Loan Facility (GLF) by determining the applicable quarterly interest rate, informing Greece and the lenders and controlling the money flows.

a) On track

b) On track

c) The extension of EFSM for Ireland is being prepared in case Ireland requests extension.

d) On track

a) To provide timely loans for financial assistance

b) Coordination with the ECB for timely collection of interest payments and reimbursements

c) If requested, to carry out the extension operations at the time of the maturity of any loans to be extended

d) Coordination with the ECB for timely collection of interest payments from Greece and transmission to lenders


Description (Commission outputs)

Indicator Target

Financial Report ECSC in Liquidation at 31 December 2014 (AP entry: 2015/ECFIN/014)

Adoption by the Commission foreseen in September 2015

July 2015

Report on borrowing and lending activities of the European Union in 2014 (AP entry: 2015/ECFIN/015)

Adopted by the Commission on 10 July 2015

September 2015

Potential legislative proposal to the Council regarding the future of the Euratom loan facility and a proposal for a new ceiling. (AP entry: 2015/ECFIN/009)

Proposal postponed to 2nd quarter 2016 as no official application which could trigger exceeding the ceiling was received.

2Q2016

31

3. ABB activity "International Economic and Financial Affairs"


Relevant general objectives: (2) A deepened, efficient and fair Economic and Monetary Union (3) To promote prosperity beyond the EU Specific objective 1: Macro-financial assistance, notably to Ukraine

Providing macro-financial assistance to third countries in resolving their balance of payment crises and restoring external debt sustainability

⌧programme-based (MFA)

Result indicator 1: Current account balance (% of GDP) Source of data: Commission estimates, IMF

Baseline *Milestones/Current situation - 30/06/2015 Target 2020

Countries 2013

2014 (forecast)

2015 2016 2017 2018 2019 2020

Jordan -10.3 -7.0 -7.6 -6.7 -6.2 -4.9 -4.9 -4.8*

Kyrgyzstan -15.0 -13.7 -17.0 -15.1 -13.4 -10.6 -10.0 -8.6*

Georgia -5.7 -9.6 -11.5 -12 -10.7 -9.9 -8.1 -6.6*

Tunisia -8.4 -8.9 -7.8 -7.0 -5.9 -5.2 -4.3 -4.0*

Armenia -8.0 -8.1 -7.3 -7.1 -6.9 -6.6 -6.5 -6.5*

Moldova -5.7 -5.3 -7.3 -7.7 -7.7 -7.5 -7.2* -7.2*

Ukraine -8.6 -4.0 -1.6 -2.8 -2.0 -2.2 -2.5 -2.7

Result Indicator 2: External debt (% of GDP) Source of data: Commission estimates, IMF

Jordan 33.2 35.8 38.6 32.9 37.7 34.9 34.1* 33.5*

Kyrgyzstan** 43.7 51.0 57.0 59.5.8 59.5 56.4 53.7 52.0*

Georgia 81.8 84.2 84.3 82.0 80.8 78.6 76.6 74.3*

ABB activity: International Economic and Financial Affairs

Financial resources (€) in commitment appropriations

Human resources


Administrative expenditure (managed by the service)



personnel (in FTEs)

Total

(1) (2)

222 364 518 - - 222 364 518 52 12 64

32

Tunisia 54.0 57.3 63.2 64.6 64.1 63.5 63.0 63.0*

Armenia 82.0 80.6 81.8 83.4 83.5 83.0* 81.1* 81.0*

Moldova 83.2 85.8 108.9 105.4 98.3 94.0* 90.0* 86.0*

Ukraine 77.5 95.8 140.0 133.0 128.0 125.0 122.0 120.0

Result Indicator 3 : Official foreign exchange reserves in months' imports of goods and services Source of data: Commission estimates, IMF

Jordan 4.9 6.4 6.4 6.6 6.4 6.3 6.4* 6.5*

Kyrgyzstan 4.2 3.7 3.1 3.2 3.2 3.4 3.6 3.9*

Georgia 3.4 3.0 3.1 3.3 3.7 4.3 4.6 4.9*

Tunisia 3.4 3.9 4.2 4.2* 4.2* 4.2* 4.2* 4.2*

Armenia 5.4 4.7 4.4 4.5 4.4 4.4 4.5* 4.5*

Moldova 5.2 4.8 4.3 4.0 3.8 3.5* 3.2* 3.3*

Ukraine 3.3 1.7 3.2 3.7 4.3 4.5 4.5 4.4

Result indicator 4: To provide loan funding for necessary MFA/Euratom operations Source of data: ECFIN L4


a) To borrow for the requested MFA and Euratom loans at a reasonable price in the market

b) Borrowing, lending and management of the debt service of operations under the MFA/EURATOM facilities on time

a) On track: - Jordania (13y Mid-Swap -10 bps)

- Ukraine I and Georgia (13y Mid-Swap -11 bps)

- Tunisia (12y Mid-Swap -15 bps)

b) On track

a) Funding at a reasonable spread not more than swaps + 30 basis point

b) To ensure 100% timely repayment and budgetary cover if necessary



Commission proposal for MFA III for Ukraine and borrowing decisions on various disbursements on ongoing MFA operations

Implementation of the MFA decisions and disbursements in line with the MoU

Ukraine: adoption 2015.Q1; timely disbursements subject to meeting conditionality

Possible proposals for legislative decisions on (MFA to Neighbourhood countries.

Provide balance of payments assistance in the context of IMF program – emergency instrument (countries TBD)

TBC

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Main expenditure related outputs in 2015

Draft Budget 2015 Output Budget line

Number EUR million

MFA grant commitments to third countries 01 03 02 3 77.96

Operational assessments, PEFA studies and ex post evaluations 01 03 02 2 0.2

*The instrument of MFA is by nature a short-term crisis-related instrument spanning over 2 to 3 years maximum. This means that it is not possible to quantify its specific objectives in terms of indicators/milestones beyond the horizon of the MFA operations. Therefore, for years going beyond the MFA operation or the IMF projections, the figures reflect the latest data available, and are marked with an asterisk.

** External public debt (% of GDP)

Relevant general objectives: (2) A deepened, efficient and fair Economic and Monetary Union (3) To promote prosperity beyond the EU Specific objective 2: To maintain and strengthen strong cooperation and liaison in the external field with EIB, EBRD and other IFIs


Result indicator 1: Enhancing effectiveness of IFI and MDB financing in the external field in particular through the EIB External Lending Mandate (ELM); coordinating the EU position in the governing bodies of the EBRD Source of data: ECFIN L1

34

Baseline (2013/2014) Current situation - 30/06/2015 Target (2015)

a) Proportion of financial instruments in the external blending facilities: 7%

b) As of June 2014, EIB had utilised 99% of the total EUR 29.5 billion guarantees available under the external lending mandate (ELM) 2007-2013 (extended until 30 June 2014) for loans

c) The ELM 2014-2020 became operational on time on 1 July 2014. For the ELM period 2014-2020, guarantees of EUR 27 billion plus optional EUR 3 billion are available.

d) Promote EIB loans in ELM regions in support of EU climate change agenda; loans amounted to EUR 2.1 billion in 2013, or 31% of total signatures.

a) Proportion of financial instruments in the external blending facilities has increased to approx. 10%.

b) The lending capacity provided by the ELM 2007-2013 was virtually fully utilised by its expiry date of 30 June 2014.

c) On 31 May 2015, EUR 2.2 billion loans had been signed under ELM 2014-2020.

d) On 31 May 2015, the proportion of loans in ELM regions in support of the climate change agenda amounted to 23%. Given the early stage of the ELM period, this number is subject to significant monthly fluctuations.

a) Use of financial instruments increased by >7% together with IFIs and MDSs resources in the external field.

b) + c) The Commission will monitor the utilisation of the guarantee: EIB loans signed as a percentage of the total envelope for the 7-years period (2014-2020) under the ELM (EUR 27 billion plus optional EUR 3 billion) – annual average target should be approximately 14%.

d) Total signatures in ELM regions originated by EIB (> 25%22)

e) Monitor the volume and number of EBRD loans signed: EUR 8.5 billion, 392 individual projects and 72 outstanding balances under the Trade Facilitation Programme.

f) Coordinate the EBRD capital review and bank strategy.

e) On 30 June 2015, EUR EUR 2.7 billion in loans had been signed in a total of 142 operations.

f) Cooperation with the EU Director and his office has been deepened.

e) Target for number of operations is 350-415 and for Annual Business Investment is EUR 7.5-9.1 billion23

f) To have a regular monitoring of the shareholding; to support the EU Director in the EBRD in the capital review and strategy orientation of the Bank.

Result indicator 2: Management and provisioning of the Guarantee Fund for the External Action, whose function is to cover the risk of loans and loan guarantees to third countries Source of data: ECFIN L5/EIB


On the basis of the provisioning mechanism, the EU budget paid EUR 58.43 million to the Fund in in February 2014. On 31 December 2013, net assets of the Fund amounted to EUR 1,981.29 million. As the ratio between net assets and the

On the basis of the provisioning mechanism, the EU budget paid EUR 144.40 million to the Fund in February 2015. On 31 December 2014, net assets of the Fund amounted to EUR 2,114.67 million. As the ratio between net assets and the outstanding capital liabilities (EUR 26,353.17 million), within the

To ensure that the Guarantee Fund remains adequately provisioned in year N+2 on the basis of its assets and contingent liabilities as of the end of year N.

22 As indicated in Article 3.7 of Decision No 466/2014/EU

23 Source: EBRD 2015 Business Plan

35

outstanding capital liabilities (EUR 23,609.19 million), within the meaning of the Guarantee Fund Regulation, was lower than the target amount a provisioning of EUR 144.40 million was inserted in the preliminary EU budget of 2015.

meaning of the Guarantee Fund Regulation, was lower than the target amount, a provisioning of EUR 257.12 million was inserted in the preliminary EU budget of 2016.


Description (Commission outputs)

Indicator Target

a) EIB External Mandate ancillary documents: regional technical operational guidelines prepared together with EIB and in consultation with EEAS (no AP entry mandatory for a SWD)

b) Implementation of financial instruments in the external blending facilities

c) Report to the European Parliament and the Council on the EIB External Activity with EU budgetary guarantee. (AP entry: 2014/ECFIN/021)

d) Report on the functioning and work of the "EU Platform for Blending in External Cooperation" covering period from end July 2014 to date. (AP entry: 2014/ECFIN/010)

e) 2014 Annual Report of the EU Governor of the EBRD to the European Parliament. (AP entry: 2014/ECFIN/022)

f) Annual Report from the Commission on the Guarantee Fund and the management thereof in 2014. (AP entry: 2015/ECFIN/016)

g) Report to the budgetary authority on guarantees covered by the general budget – Situation as of 31 December

a) Staff Working Document transmitted to other institutions on 8 May 2015

b) Proportion of financial instruments in the external blending facilities

c) Adoption by the Commission

d) Adoption by the Commission

e) Adoption by the Commission

f) Adoption by the Commission

a) May 2015

b) >7% by end 2015

c) October 2015

d) December 2015

e) October 2015

f) May 2015

36

2014. (AP entry: 2015/ECFIN/017)

h) Evaluate the need of the change of the target rate of the Guarantee Fund

g) Adoption by the Commission

h) Start of the review scheduled in September 2015

g) July 2015

h) End of 2016

Planned evaluations: Evaluation of the Guarantee Fund for external Actions to assess the target rate ; Mid-term review of the External Lending Mandate (ELM) of the EIB under Decision 446/2014/EU (2015/2016)

Relevant general objectives: (3) To promote prosperity beyond the EU

Specific objective 3: EU representation in G7, G20 and IMF ⌧ Non programme-based

Result indicator 1: To promote the EU interest and to coordinate EU positions in the G7, G20, and IMF Source of data: ECFIN D3

Baseline (2013) Milestone (2014/2015)


Target (2015)

a) DG ECFIN coordinates the EU position on economic/financial issues dealt with in the G20

b) DG ECFIN ensures an active EU representation in a number of G20 working groups

c) Since 2010, the European Commission is invited to the full meeting of the G7. DG ECFIN coordinates economic/ financial issues dealt with by the G7

d) DG ECFIN coordinates common EU positions and statements in the IMF to advance the EU policy agenda

a) Ongoing

b) Ongoing

c) Ongoing

d) Ongoing

a) G20 Terms of Reference (ToR) coordinated in the first half of 2015: two ToR for G20 Deputies meetings (Dec 2014, June 2015) and two ToR for G20 Ministerial meetings (Feb 2015, Apr 2015).

b) Provision of input to three G20 FWG meetings (Jan 2015, Mar 2015, May 2015) and two G20 IIWG meetings (Jan 2015, May 2015).

c) Succesfully contributed to G7 Finance Ministerial (May 2015), G7 Summit (June 2015), four G7 Sherpa meetings (Dec 2014, Mar 2015, Apr 2015, May 2015) and a

a) Ensure effective coordination of EU positions in 2015 for two G20 Deputies and four G20 Ministerial meetings, on the basis of Terms of Reference to be agreed in the EFC.

b) Provision of relevant input to G20 working groups, in particular for four Framework for Growth and three Infrastructure Investment WG meetings in 2015.

c) Contribute to preparation in 2015 for successful G7 Finance Ministers meeting, G7 Sherpa meetings and G7 Summit. Contribute to Commission representation in the G7 Deauville Partnership.

d) Produce common messages on IMF policy, including governance and multilateral surveillance as well as country items.

37

number of G7 Deauville Partnership meetings.

d) Produced six common messages on IMF policy in first half of 2015.



Coordination of written EU negotiation positions for G20 finance track meetings

Six EU G20 Terms of Reference (to be agreed in EFC)

February 2015; April 2015; June 2015; September 2015; October 2015; December 2015

Reporting on progress on G20 international macroeconomic policy coordination

Note assessing progress of G20 Framework Working Group

End-2015

UNFCCC: United Nations Framework Convention on Climate Change

Notes for the EPC (WG) on climate finance ECOFIN Council conclusions on climate finance – November 2015 - outlining the EU position for COP 21

38

Development in the framwork of UN Addis-Ababa and New-York conference/Summit

Notes defining and defending the EU position on various topics (debt restructuring; international financial architecture …) - Negotiation

Addis-Ababa conference mid-July 2015 and New-York post-2015 Summit in September 2015

Relevant general objectives: (2) ) Financial operations and instruments (3) To promote prosperity beyond the EU Specific objective 4: Enlargement and Neighbourhood Policies

To support the enlargement process, the implementation of the EU Neighbourhood Policy and EU priorities in other third countries by conducting economic analysis and providing policy assessment, advice and input to negotiations on international economic and financial affairs


Result indicator 1: Level of compliance of enlargement countries with the economic sub-criteria for EU accession as well as with the targeted policy guidance issued Source of data: ESTAT, National Sources


No enlargement country fulfils economic accession criteria

Successfully contributed to the multilateral dialogue with enlargement countries, inter alia through the preparation of ECFIN technical assessments of the countries' medium-term economic and fiscal programmes.

Policy discussion with all enlargement countries on reform measures to be taken over the short to medium term.

Adoption of Joint Conclusion with targeted policy guidance of the "Economic and Financial Dialogue between the EU and the Western Balkans and Turkey.

Strengthening economic and fiscal surveillance through targeted policy guidance to move closer to compliance



Assessments of enlargement countries' medium-term economic and fiscal programmes

Joint ECOFIN policy conclusions with targeted policy guidance for candidate countries

Adoption Spring 2015

Assessment of enlargement countries' state of compliance with the economic accession criteria

Economic chapter of the Progress Report for each individual Enlargement country October/November 2015

39

PART 5. HORIZONTAL ACTIVITIES

5.1. Policy strategy and coordination for DG Economic and Financial Affairs

The ABB Activity 'Policy Strategy and Coordination' gives the necessary impulse to the policy definition, preparation and implementation in order to achieve the overall mission of the Directorate General within the time scales laid down. To that end, this Activity promotes the development of a strategic planning culture within the DG in accordance with the Commission Strategic Planning and Programming cycle so that legislative proposals and non-legislative acts pass smoothly and efficiently through the institutional system. Also, this Activity aims to develop an administrative culture of better regulation and the use of evaluation and impact assessment as valuable policy instruments for policy shaping.

In addition, by the active promotion of the main policies of the DG through supportive means of information, communication, awareness raising and dialogue with decision-makers and other key stakeholders, this activity contributes directly to the success of the DG's main policies. Similarly, a sound coherence of the different activities within the DG, an efficient and effective liaison internally and with the horizontal services, the Cabinet, the other institutions involved including the European Parliament, the EFC and EPC, are essential to strengthen and further support the DG's policy strategy.

SPECIFIC FUNCTIONS

1. To provide guidance and leadership to achieve the mission and objectives of the Directorate-General for Economic and Financial Affairs

2. To carry out external communication on the euro/EMU and to contribute to the general communication strategy of the Commission

3. To carry out the DG's internal communication strategy

4. To strengthen policy coordination through inter-institutional relations and cooperation with other stakeholders

5. To contribute to the co-ordination of economic and financial policies in the EU through the efficient functioning of the EFC, EPC and EWG

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5.2. Management of the Directorate-General for Economic and Financial Affairs

SPECIFIC FUNCTIONS

1. To ensure implementation and monitoring of a reliable internal control and anti—fraud system within the DG

2. To promote and maintain sound and efficient management of financial resources within the DG

3. To promote and maintain sound and efficient management of human resources within the DG

4. To promote and maintain sound and efficient management of IT resources within the DG

5. To promote and maintain sound and efficient document and logistics management

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5.3. Details on specific objectives per horizontal activity

1. Horizontal activity "Policy strategy and coordination for DG Economic and Financial Affairs"


1. Objective: To provide guidance and leadership to achieve the mission and objectives of the Directorate-General for Economic and Financial Affairs

In 2014, the two-yearly stakeholder survey on output quality indicators was carried out with a marked increase in the coverage of external stakeholders.

Specific objective: To provide guidance and leadership to achieve the mission and objectives of the Directorate-General for Economic and Financial Affairs

Output Indicator 1: Level of satisfaction of Cabinet Members, the President's Cabinet and the President's briefing Cell with DG ECFIN's work and output

Baseline (2014) Milestone Target (2015)

In 2014, the global level of stakeholder satisfaction was 3.6 on a scale of 1 to 5.

Implement recommendations of the 2014 stakeholder survey agreed with senior management in order to maintain at least the same level of stakeholder satisfaction.

2. Objective: To carry out external communication on euro/EMU and to contribute to the general communication strategy of the Commission

Develop, implement, monitor and adapt the most suitable external communication strategy to establish an effective and regular dialogue with stakeholders, civil society and specific target audiences so that these actors better understand, endorse and apply the EU policies promoted by the DG. For this, several vehicles are to be used, including press conferences, press releases, publications, conferences, seminars and travelling exhibitions.

ABB activity: Policy strategy and Coordination

Financial resources


Human resources






personnel (in FTEs)

Total

(1) (2)

- - - - 108 49 157

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Specific objective: To carry out external communication on euro/EMU and to contribute to the general communication strategy of the Commission Output/Result Indicator 1: Level of target group's knowledge and support of EMU-related policies and governance issues

Source of data: Eurobarometer


Euro area: 69% see the euro as good for the EU.

Next such survey is scheduled for October 2015.

Increase in support

3. Objective: To carry out the DG's internal communication strategy

As DG ECFIN's Communication Strategy states, effective internal communication facilitates external communication to the extent it helps staff understand and share the common vision and objectives of the DG ECFIN and the Commission and sing from the same hymn sheet in external contacts.

Specific objective: To carry out the DG's internal communication strategy Output/Result Indicator 1: Percentage of best practices identified in the internal communication area which are put in practice by the DG Source of data: R1


Target

New internal communication initiatives and actions will be launched in the first half of 2015, outlined in the corresponding Annex of the DG ECFIN Communication Strategy.

Implement 50% of the new actions by Q3 2015.

25% higher usage of internal communication channels by Q4 2015.

25% higher approval rate by Q4 2015

An internal communication survey was carried out in DG ECFIN in May. The results are currently being analysed by R.1. The R.1 IC team meets regularly with user groups across the DG which deepens the understanding of our audience's needs and helps us promote initiatives and actions.

Gradual implementation of agreed new actions, to be monitored quarterly, involving launch of pertinent surveys to better understand the needs of audiences and measure progress of actions, for both new and existing actions.

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Output/Result Indicator 2: Feedback on existing internal communication Source of data: R1


Target

A large number of new and existing internal communication activities will continue to be carried out in 2015 as outlined in the corresponding Annex of the DG ECFIN Communication Strategy.

25% higher usage of channels by Q3 2015.

25% higher approval rate by Q3 2015.

Statistical data show that ECFINnet continues to get more visits and page views (140,000 and 388, 000 respectively in Q1-Q2 2015 compared to 93,000 and 184,000 respectively for the same period in 2014).

Maintenance and gradual improvement of existing internal communication tools.

Statistical data from web based channels will be regularly monitored and analysed.

4. Objective: To strengthen policy coordination through inter-institutional relations and cooperation with other stakeholders

Strengthen dialogue and cooperation with other DG's in the Commission, the co-legislators European Parliament and Council, the Member States and other inter-institutional stakeholders to ensure a smooth and efficient progress on legislative proposals and non-legislative initiatives put forward by the DG.

Specific objective: To strengthen policy coordination through inter-institutional relations and cooperation with other stakeholders

Output/Result Indicator 1: Backlog of Parliamentary questions for which ECFIN is responsible


The number of Parliamentary questions (EPQ) for which DG ECFIN is in the lead, rose from 440 in 2011, to 808 in 2013. In 2014 ECFIN received 365 questions, for which it was in the lead. However, numbers for 2014 were significantly impacted by the elections for the European Parliament. During the first six weeks of 2015 ECFIN had already received 74 EPQs. The number of blacklisted questions on average was close to zero in 2014Q1 (the statistics for the rest of 2014 are not representative due to EP elections).

By the end of the first 6 months of 2015, the number of Parliamentary questions for which DG ECFIN was the lead DG had reached 270. If one includes the number of questions which were first given to ECFIN and which were only redistributed after ECFIN had prepared the answer, the number would be 300. Due to the new working methods of the new Commission, we still have to establish a way to work within the deadlines for replying to EPQ; there is still a record high number of EPQs on the blacklist for the Commission as a whole (more than 400). For DG ECFIN

100% of EP questions answered on time.

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there were 43 EPQs on the blacklist on 02/07/2015.

5. Objective: To contribute to the co-ordination of economic and financial policies in the EU through the efficient functioning of the EFC, EPC and EWG

To contribute to the formulation, co-ordination and surveillance of economic and financial policies in the EU through the smooth and efficient functioning of the Economic and Financial Committee (EFC), the Economic Policy Committee (EPC), and the Eurogroup Working Group (EWG), as well as their subcommittees, working groups and task forces, in particular as regards administrative and general support.

Specific objective: To contribute to the co-ordination of economic and financial policies in the EU through the efficient functioning of the EFC, EPC and EWG Result Indicator 1: Number of workshops, conferences, meetings and teleconferences

Source of data: Meeting Statistics and MeetingOne Report

Baseline (2014) Current situation - 30/06/2015

Target

Meetings: 96

Teleconferences: 104

72

129

To meet the obligations as set by the Work Programme of the Committees and their Working Groups

Result Indicator 2: Number of notes and reports (documents registered in Ares)

Source of data: ECFIN Document Management Statistics January-June 2015


Target

606 388 N/A

Result Indicator 3: Level of satisfaction of EFC/EPC members with DG ECFIN's work and output

Source of data: Stakeholder Survey 2014

Baseline (2014) Milestone Target

3.67 on scale of 1 to 5 3.75 to be obtained at the next stakeholder survey

45

2. Horizontal activity "Management of the Directorate-General for Economic and Financial Affairs"

(1) Heading 5 appropriations managed by the DG (global envelope) XX 01 02 (2) BA lines (XX 01 04) and, when relevant XX 01 03 XX 01 05 and XX 01 06.

1. Objective: To ensure implementation and monitoring of a reliable internal control and anti-fraud system within the DG

To implement and maintain an effective internal control and anti-fraud system so that reasonable assurance can be given that resources assigned to the activities are used according with the principles of sound financial management and that the control procedures put in place give the necessary guarantees concerning the legality and regularity of the underlying transactions in the area of budget and off-budget operations.

Specific objective: To ensure implementation and monitoring of a reliable internal control and anti-fraud system within the DG Result Indicator 1: Number/value of cases referred to OLAF for investigation compared to the total programme expenditure

Source of data: List of cases referred to OLAF kept by R.4.2


Number of cases submitted to OLAF in 2014 : 0

0 0 cases

Result Indicator 2: Ratio of ex-post observations accepted as factually correct over number of observations issued (qualitative)

Source of data: Ex-post control reports issued during 2014


100% 100% >=80 %

ABB activity: Administrative Support

Financial resources


Human resources





Estimates of external personnel (in FTEs)

Total

(1) (2)

- 7 581 468 68 3 71

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2. Objective: To promote and maintain sound and efficient management of financial resources within the DG

To plan, perform, monitor and report on the spending of financial resources so that financial management is ensured for all the DG's activities. Ensure the proper accounting of budget-based financial operations.

Specific objective: To promote and maintain sound and efficient management of financial resources within the DG Output/Result Indicator 1: The budget execution of payments appropriations should be maximised with respect to the final budget. Source of data: Abac Workflow


99.5% 71.1% of payment appropriations that will lapse at year-end

>98% The Commission has stressed many times in the recent past that payment appropriations granted are too tight to meet the liabilities services are faced with and that it would therefore be unacceptable to have some of these appropriations lapse.

Output/Result Indicator 2: Financial exceptions (overrides and non-compliant events) with respect to procurement procedures and grant procedures should be avoided. Source of data: register of financial exceptions


0 0 – No breach of procurement or grant procedures

0 Commission policy implies zero tolerance towards bypassing or circumventing procurement and grant procedures

3. Objective: To promote and maintain sound and efficient management of human resources within the DG

Recruit, train and retain highly qualified staff so that effective and efficient operation of the DG and promotion of equal opportunities are ensured. Ensure a sound management of resources aimed at recruiting and training staff.

Specific objective: To promote and maintain sound and efficient management of human resources within the DG Result Indicator 1: Mobility rate (staff turnover)

Source of data: Source of data: Sysper mobility files


9.9 %

70 officials have been transferred within ECFIN since the beginning of the year, representing officials on 9.9% of establishment plan posts

4.2 %

27 officials have been transferred within ECFIN since the beginning of the year, representing officials on 4.2% of establishment plan posts

6-12 %

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Result Indicator 2: Vacancy rate

Source of data: Sysper job quota management


4.6 %

Out of 32 vacancies 17 are reserved posts to be filled shortly.

5.7 %

Out of 38 vacancies 12 are reserved posts to be filled shortly.

5 %

Result Indicator 3: Utilisation of training and external personnel budget

Source of data: ABAC and eSire


On 01/12/2014, 89% of the budget has been used to organize/manage 56 (related) learning activities.

On 01/12/2014 the execution rate of 201 allocation stood at 98.7%

On 30/06/2015, 58.6% of the training budget has been reserved to organize/manage 35 (related) learning activities.

On 30/06/2015, the execution rate of the 2014 allocation stood at 47.31%.

100 %

Result Indicator 4: Gender breakdown by grade (targets)

Source of data: Qlikview and Sysper


1. Women as a percentage of the AD non-management workforce: 32.2%

2. Women as a percentage of HoU workforce: 23.8%

3. Women as a percentage of senior management: 15.4%

Note: For management posts, percentages calculated on the basis of filled posts, inflating the proportion of women.

1. Women as a percentage of the AD non-management workforce: 31.7%

2. Women as a percentage of HoU workforce: 24.4%

3. Women as a percentage of senior management: 12.5%

1. 43% (Commission target 2014)

2. 26.3% (Commission target 2014 for ECFIN)

3. 25% (Commission target 2014)

4. Objective: To promote and maintain sound and efficient management of IT resources within the DG

Define, plan, set up, maintain and develop high quality Information Technology (IT) infrastructures, tools and services so that the staff is adequately supported in their operation. Implement and maintain efficient local IT governance, based on the IT governance approved by the Commission and standard methodology (COBIT, ITIL). Convert relevant audit recommendations for local ICT management into actions.

Specific objective: To promote and maintain sound and efficient management of IT resources within the DG Result Indicator 1: Percentage of critical and urgent incidents responded to and resolved within the defined time limit (incident resolution time for ITIC and local IT services combined)

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Service data provided by ITIC:

- no critical incidents in 2014 (Jan-Oct)

- urgent incidents results: 78%, 81%, 60%, 76%, 67%, 100%, 100%, 83%, 50%, 75% (Jan-Oct 2014 respectively)

Critical: <=60 minutes (95% of incidents)

Urgent: <=120 minutes (95% of incidents)

Result Indicator 2: Number of new IT systems, modules or significant upgrade of existing IT systems


Among 14 projects, 10 projects have been developed. Of those not developed (2 of these project were low priority and 2 were normal priority).

Meet the objectives (high and medium priority) as defined by the ITSC.

In the 2014 planning approved by the ITSC, 12 projects were classified as high/normal priority.

5. Objective: To promote and maintain sound and efficient document and logistics management

Put in place and maintain an effective document management system so that any document connected with the DG's official functions can be electronically filed, stored and retrieved irrespective of its original form and the document management system in place

Specific objective: To promote and maintain sound and efficient document and logistics management Result Indicator 1: Monitoring of HAN (Hermes, Ares, Nomcom) activities

Baseline (2013) Milestone (10/2014)


Target (2015)

December 2013

- Registered documents not filed: 1.44%

- Number of empty files: 4.86%

- Number of unused files: 5.19%

- Country Master files: 70 documents

1.27%

2.87%

5.65%

78 documents

1.76%

6.5%

13.8%

38

0.5%

< 5%

< 7.5%

≥ 70

Result Indicator 2: Percentage of staff trained in e-Domec and Ares


Target (2015)

70% trained in e-Domec

35% trained in Ares

74%

54%

≥ 70%

≥ 35%

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ANNEX 3. PRIORITISED INTERNAL CONTROL STANDARDS FOR EFFECTIVE MANAGEMENT

Based on recent IAS and IAC audits as well as the 2014 Risk Management exercise, DG ECFIN has drawn up the list below of priority ICS to improve their effectiveness in 2015.

Table Summarising Priority ICS

Priority Control Issues

(1)

Prioritised in MP 2014

(2)

Effectively implemented

(3)

Internal Control Standards

(4)

Summarise the relevant requirements and/or effectiveness criteria

(5)

Control issues and planned measures to improve or develop controls

Y N ICS 8

"Processes and procedures"

Decision of the Commission 2001/844/EC on security.

Commission Security Notices, in particular "Security Notice N°1".

Against the background of major changes to the operational activities of ECFIN, the nature and scale of the security risks were altered. The Security Action Plan (SAP) was adopted on 28/11/2012 by ECFIN Directors. On information security, several measures were already implemented in 2012-2014: adoption of the ECFIN manual for handling sensitive information, creation of specific ECFIN security marking, developing internal security rules and procedures, in-depth review of information security in some sensitive business processes, filling-in of relevant security functions, registration of security breaches, raising awareness, etc.

The implementation of the SAP is ongoing; information security procedures and measures need to be further developed and implemented. In particular there is a need to raise awareness of staff and provide guidance on information security in some sensitive business processes in order to implement security measures tailored to specific operational processes and risks.

50

Y N ICS 11

"Document management"

The implementation of the document management action plan24 allowed for the reporting and monitoring of activities of ECFIN services in the past few years. The latter showed that the basic building blocks are present and that progress is made on many aspects.

However, further efforts on several fronts are required to achieve better standards in this particular field:

• Harmonisation of document management practices in DG ECFIN and an increase in the use of electronic workflows25;

• Implementation of additional requirements from central services related to document management (e.g. e-mail registration); and

• Management of the transition during reorganisation phases and provision of continuity of services.

• It is suggested that ECFIN units introduce their document management practices in their unit manuals in order to ensure continuity of services.

In this respect, the harmonisation of cross- cutting processes would be helpful to address the main challenges of ECFIN.

• Further requirements are likely to affect the document management field, which calls for a change in the management approach by all ECFIN services concerned. The necessary training and guidance might be required from central services.

• Continuity of good working methods and access to documents needs to be guaranteed by all stakeholders during reorganisations.

24 Ref. Ares(2012)1137179 - 27/09/2012 25 Ref. Ares(2013)2534472 - 21/06/2013, Implémentation de l'utilisation de l'e-signataire

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Y N

ICS 12

"Information and Communication"

Note Ares(2014)1329924 of 28/4/2014 on the Update to the ICS requirements and Note ARES(2014)1934406 of 13 June 2014 on operationalizing the revised ICS 12. Requirements 25 to 26

Requirement 25 concerning the establishment of a DG communication strategy is about to be effectively concluded in the second half of 2015 with the final adoption of the DG ECFIN communication strategy. This strategy provides the strategic context for the annual communication plan that every DG is required to formulate as part of its AMP. The DG ECFIN communication strategy is seen as an integral part of DG ECFIN's work, which is essential for the achievement of its operational objectives and it emphasises that all DG ECFIN staff have, to a greater or lesser degree, a role to play in successfully implementing this strategy and must regard this role as integral to their core business. DG ECFIN will amend its communication strategy in the second half of 2015 on the basis of the results emanating from the external evaluation of its communication activities. This evaluation was concluded in June and its key findings discussed and endorsed by DG ECFIN's Board of Directors. Besides preparing for the adoption of the final strategy, DG ECFIN has been fully applying the corporate communication themes as reference points; it consults with partner DGs and project teams under the two Vice-Presidents responsible; and it ensures regular updates of its planning in Sharepoint on the basis of the annual Communication plan for information and advice from DG COMM and the Communication Steering Board (CSB). In the first half of 2015, ECFIN further stepped up its stakeholder outreach, including officials in national ministries, journalists specialised in economic policy, and social partners and closely works with the network of European Semester Officers (ESOs).

Requirement 26 concerning the respect of legal and regulatory requirements, including copyright, is fully implemented as DG ECFIN works closely in consultation with the central IP service of DG JRC.

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ANNEX 4. PLANNING OF STUDIES (EVALUATIONS AND OTHER STUDIES)

Type of evaluation or other study

Timing6 No Title Reason 1 Scope 2

Focus 3

Author 4

Type 5

Start End

Associated DGs

Planned costs (EUR)

Comments7

I. On-going evaluations (work having started in previous years)

Evaluation of MFA operations in Bosnia-Herzegovina

FR-Following the recommendations of the European Court of Auditors and in accordance with the Financial Regulation, MFA operations in third countries (Western Balkans and the NIS) are to be subject to ex post evaluation. The ECFIN multi-annual evaluation programme has been established on the basis that an average of two operations and up to a maximum of three operations per year will be evaluated. The evaluation aims to support organisational learning and to enable the DG to discharge its obligations in terms of transparency and accountability. In this context, recourse to an external evaluator ensures that the evaluation is seen by stakeholders as an independent assessment of the functioning of the instrument.

This evaluation focuses on assessing ex post the contribution of MFA to structural reform and the macroeconomic performance of the recipient country, thereby complementing the MFA implementation reports prepared by the DG.

R E 6/2014 2/2015 103,574.00 The evaluation was completed in January and has been published on the ECFIN website.

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Evaluation of the economic adjustment programme for Ireland

The Commission is strongly committed to evaluating in a proportionate way all EU spending and non-spending activities with an impact on society or economy (SEC(2007)213 and SWD(2015)111). This also applies to the economic adjustment programmes supported by financial assistance. These programmes are of huge economic and financial importance for both the beneficiary MS and the euro area as a whole

The scope of the evaluation includes assessing whether:• Objectives and measures of the intervention were relevant in relation to the economic and financial challenges (relevance); • Conditionality and financial assistance were appropriate given the intended outputs and results (efficiency); • Intended results have been achieved and intended impacts can then materialise in the medium/long term (effectiveness); • The EU intervention added value; • The intervention was coherent with other EU policies/activities.

R I 9/2014 6/2015 The evaluation has been completed and was published on the ECFIN website in July.

54

Evaluation of the economic adjustment programme for Portugal


The scope of the evaluation includes assessing whether:• Objectives and measures of the intervention were relevant in relation to the economic and financial challenges (relevance); • Conditionality and financial assistance were appropriate, given the intended outputs and results (efficiency); • Intended results have been achieved and intended impacts can then materialise in the medium/long term (effectiveness). • The EU intervention added value;• The intervention was coherent with other EU policies/activities.

R I 7/2015 3/2016 The evaluation has commenced. Nominations have been requested for the Inter-Service Group and a draft Evaluation Roadmap has been prepared.

55

Evaluation study on DG ECFIN's communication strategy and activities in view of the evolving role of the DG

FR-In accordance with the Financial Regulation, ECFIN's ongoing activities are required to be evaluated once every six years. In this context the evaluation aims to support organisational learning and to enable the DG to discharge its obligations in terms of transparency and accountability. Recourse to an external evaluator ensures that the evaluation is seen by stakeholders as allowing an independent assessment of the functioning of the activities.

P/R E C 11/2014 4/2014 COMM 96,825.00 A draft final report has been prepared.

56

Evaluation of the financial sector programme for Spain


The scope of the evaluation includes assessing whether:• Objectives and measures of the intervention were relevant in relation to the economic and financial challenges (relevance); • Conditionality and financial assistance were appropriate, given the intended outputs and results (efficiency); • Intended results have been achieved and intended impacts can then materialise in the medium/long term (effectiveness). • The EU intervention added value; • The intervention was coherent with other EU policies/activities.

R I 10/2014 Q4/2015 COMP/ FISMA

The evaluation is ongoing. An Interim Report has been completed. It is anticipated that the final report will be completed by the end of the year.

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II. Evaluations planned to start in 2015 or later

Evaluation of the Guarantee Fund for External Actions

According to the last Comprehensive Report on the functioning of the Guarantee Fund (GF), the 9% target rate of the GF should be reviewed from time to time in order to assess whether it continues to be commensurate with the risk profile borne by the fund. Such a review will be undertaken at the time of the mid-term review of the external mandate. Due to the increased geopolitical risks and financial needs in some of the regions covered by the GF (e.g. Ukraine) and the defaults registered in Syria, a review of the 9% target rate seems to be necessary.

Considering the mid-term review of the GF which will begin in March 2015 (end date: 31/12/2016), it is considered opportune to evaluate whether the 9% target rate is still efficient and fulfils the objectives of the GF: In this context, the appropriateness of the current levels of the main parameters of the GF has to be assessed.

P/R E 01 March 2015

01 December 2016

100,000.00 It is anticipated that work to establish an Inter-Service Group and draft an evaluation roadmap will commence in Q3 2015. It is likely that an external contractor will be appointed from the Eurostat framework contract to undertake the evaluation.

58

Impact Assessment of the Euratom Loan Facility study

FR-In accordance with the Financial Regulation, ECFIN's ongoing activities are required to be evaluated once every six years. In this context the evaluation aims to support organisational learning and to enable the DG to discharge its obligations in terms of transparency and accountability. Recourse to an external evaluator ensures that the evaluation is seen by stakeholders as allowing an independent assessment of the functioning of the activities.

The Euratom Loan Facility impact assessment study is an ex ante evaluation of the current facility which will feed a potential new facility proposal to the Council once the EUR 3,8 bn lending ceiling is reached.

P/R E I 1/2015 9/2015 ENER 289,200.00 The study is ongoing. A draft Interim Report has been completed.

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Evaluation of MFA operations in third countries (Ukraine, Jordan, Tunisia Kyrgyzstan, Georgia)

FR-Following the recommendations of the European Court of Auditors and in accordance with the Financial Regulation, MFA operations in third countries (Western Balkans and the NIS) are to be subject to ex post evaluation. The ECFIN multi-annual evaluation programme has been established on the basis that an average of two operations and up to a maximum of three operations per year will be evaluated. The evaluation aims to support organisational learning and to enable the DG to discharge its obligations in terms of transparency and accountability. In this context, recourse to an external evaluator ensures that the evaluation is seen by stakeholders as an independent assessment of the functioning of the instrument.

These evaluations focus on assessing ex post the contribution of MFA to structural reform and the macroeconomic performance of the recipient country, thereby complementing the MFA implementation reports prepared by the DG.

2016 onwards

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Evaluation of the Pilot Phase of the Project Bond Initiative (PBI)

Non-legislative The legal base of the Connecting Europe Facility (CEF) foresees the evaluation of the PBI in view of the full deployment of the Initiative

R E Q1/2015

Q4/ 2015 ENER, MOVE, CONNECT

150.00

External evaluation in the context of the mid-term review of the External Lending Mandate (ELM) of the EIB under Decision 446/2014/EU

Review + poss legislative proposal

Assess EIB's application of the allocation policy, review EIB's reporting and performance measurement systems, and give recommendations on possible activation of additional ceiling of EUR 3 bn.

P/R E R 01 July 2015

01 March 2016

CLIMA BUDG SG NEAR DEVCO EEAS LS

150,000.00 Q4/2016

Proposal for a more efficient external representation of our Economic and Monetary Union

Non-legislative As per the President's political guidelines

TBD

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Evaluation of DG ECFIN's forecasting services

Non-legislative The objective for this evaluation is primarily to support learning and understanding, leading, where demonstrated as being necessary, to changes to the forecasting activities of the DG and their resulting outputs, with consequent benefits for the various communities of users, both internal and external to the Commission. This evaluation will also follow up on the evaluation carried out in 2007-2008. It will need to take into account any findings of the performance audit of the CoA on economic surveillance, which a priori would cover forecasting services.

P/R E I 2016 2016

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Medium Term Evaluation by 31 December 2017 (Art 13 (4) Regulation (EU No 331/2014: Pericles 2020: Exchange, assistance and training programme for the protection of the euro against counterfeiting)

Non-legislative Evaluation on achievement of objectives, cost effectiveness and value added. In view of possible renewal, modification or suspension of the measures.

End 2017

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III. On-going other studies (work having started in previous years)

IV. Other studies planned to start in 2015 or later

Study on effectiveness of existing system of European public financing institutions in promoting investment in Europe and its Neighbourhood, including qualitative assessment of the value-added of EIB and EBRD operations and instruments relative to a peer group

Study to support the Commission's report to the EP and Council as required by Decision No 1219/2011/EU

(i) Analysis of the operations and instruments used by the EBRD, the EIB Group and a peer group of financial institutions in EBRD's countries of operations; (ii) assessment of their effectiveness and cooperation; (iii) recommendations for improvements

P/R E O Dec-14

Q3/2015 NEAR, REGIO, REGIO, EEAS participate in Steering Committee

150000,00 Type: Other External consultant study to support ECFIN's preparation of the EP report

1. L - legal act, LMFF - legal base of MFF instrument, FR - financial regulation, REFIT, CWP - 'evaluate first', O - other (please specify in Comments) 2. specify what programme/regulatory measure/initiative/policy area etc. will be covered 3. P - prospective, R - retrospective, P/R - prospective and retrospective 4. E - external, I - internal, M - mixed (internal with external support) 5. FC – fitness check, E – expenditure programme/measure, R – regulatory measure (not recognised as a FC), C – communication activity, I – internal Commission activity, O – other – please specify in the Comments 6. Please provide month and year (for ongoing projects please provide the real start date) 7. Allows to provide any comments related to the planed items, in particular changes against the previous year plan in terms of timing and scope with relevant explanations etc.

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ANNEX 5. COMMUNICATION STRATEGY

DG ECFIN's communication plan for 2015 is closely linked to the ongoing process of reformulating its communication strategy as the framework of common objectives and principles for the challenges ahead. The aim of this exercise is to integrate communication firmly into policy development, thus making full use of communication as an integral part of successful policy-making. For the same reason, DG ECFIN's communication actions are at the very core of the Commission's corporate communication priorities, in particular linked to "Europe's competitiveness and employment" and "Europe working for citizens" and well integrated into the project team "The euro and social dialogue".

The new Commission's innovative project-oriented structure and its clearly established priorities, together with the Europe2020 growth strategy are strongly reflected in DG ECFIN's communication actions planned for 2015. The necessary paradigm shift of greater outreach to multiple target groups, which DG ECFIN initiated in 2014, will be further put in practice, tested and calibrated. While in the past few years substantial and far-reaching steps were taken to overcome the economic and financial crisis and to improve the governance of the Economic and Monetary Union (EMU), DG ECFIN's communication will in 2015 address the new challenges to raise economic welfare, design a deeper and fairer EMU and contribute to the social dialogue towards these goals. This debate is ever more necessary as it is also a debate on the course of European integration. It is a debate in which we want to listen and be heard: Europeans must not be divided into strong and weak, winners and losers. Everyone can play their part to strengthen economic recovery.

With reference to the 2015 Annual Growth Survey (AGS), DG ECFIN's communication actions will raise awareness and support for how the Commission plans to put Europe firmly back on a path of sustainable job creation and economic growth. Communication will as an integral part of policy-making contribute to pursuing an economic and social policy based on three main pillars defined in the 2015 AGS: a boost to investment; a renewed commitment to structural reforms; and the pursuit of growth-friendly fiscal responsibility. On this path, DG ECFIN's communication aims to shape the debate on how the focus of the European Semester cycle can be further sharpened. Likewise in rendering the process more open and multilateral, communication will reach out more than in the past to account for the need to increase accountability and improve ownership by all actors, including social partners.

By the same token, communication will provide the context around the Macroeconomic imbalance procedure and the Country-specific recommendations as they remain key elements of the 2015 European Semester in identifying the most urgent policy recommendations in each Member State economy. In parallel, initiatives under both arms of the Stability and Growth Pact will result in targeted communication outputs demonstrating the Commission's resolve in pursuing fiscal responsibility. While significant efforts and notable progress as to the reduction of deficits and the stabilisation of debt levels have been accomplished towards restoring sound public finances in the context of the crisis, important challenges remain to move on in a differentiated and growth-friendly manner.

DG ECFIN's communication activities related to the European Semester will benefit from the coordination with partner DGs, the SG and DG COMM and ad-hoc support from the Commission Representations in the Member States. In this respect communication will continue to rely on the network of European Semester Officers (ESOs), drawing from the recent positive experience of co-financing seminars and workshops and the strong support from ECFIN staff as speakers.

Moreover, DG ECFIN's communication activities will convey and repeat the main messages and narrative about being at the forefront of further developing support mechanisms to euro area and non-euro area countries, and implementing macroeconomic adjustment (post)programmes together with our partners. DG ECFIN communication will also support Commission

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contributions to developing international strategies on economic and financial policy in cooperation with international and multilateral institutions, groups and fora. The challenge therein lies in embedding the various policy initiatives in an overall compelling yet sufficiently flexible narrative. This is key to the success of every initiative.

DG ECFIN contributes to financial assistance programmes for EU and non-EU countries also by borrowing on the markets to on-lend the proceeds to beneficiary countries. Regarding these borrowing/lending activities, DG ECFIN will communicate with investors and investor organisations and stands ready to participate in roadshows, together with the ESM and the EIB. In addition, communication output on specific events of bond issuances and disbursements are planned. Moreover, DG ECFIN will communicate on financial instruments in support of SMEs and infrastructure by presenting them on topical seminars and workshops as well as through websites. These measures will take place in coordination with partner DGs and financial institutions such as the EIB/EIF.

DG ECFIN is involved in the setting-up and implementation of the "Investment Plan for Europe", as announced by President Juncker on 26 November 2014. DG ECFIN will also contribute to a wide-ranging EC-EIB communication campaign to explain the programme and its benefits and to increase visibility.

Interlinked with policy communication, DG ECFIN will continue to monitor in all countries which have not yet adopted the euro citizens' perception of and support for the single currency. Communication will continue highlighting the benefits of the euro/EMU towards the general public and selected stakeholders, including national administrations, social partners, journalists and academia. The focus of broader communication activities will be on presenting tangible benefits of the euro for the citizens and businesses and on demonstrating that the EU's economic strategy works and delivers positive results in terms of creating the basis for sustainable and job- rich growth in Europe.

A detailed list of communication actions is available on https://myintracomm-collab.ec.europa.eu/networks/commservices/lists/alt%20planning%202014/ecfin%20communication%20plan%202015.aspx?initialtabid=ribbon%2elistitem&visibilitycontext=wsstabpersistence

https://myintracomm-collab.ec.europa.eu/networks/commservices/lists/alt%20planning%202014/ecfin%20communication%20plan%202015.aspx?initialtabid=ribbon.listitem&visibilitycontext=wsstabpersistence




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ANNEX 6. TASK FORCE FOR GREECE AND SUPPORT GROUP FOR CYPRUS26

1- Task force for Greece (TFGR)

2- Support Group for Cyprus (SGCY)

Note: the amount of € 1 075 000 is already included in the a/m amount of 7 581 468 shown under the global envelope; this table provides a further breakdown specifically for TFGR and SGCY.

1- Task Force for Greece (TFGR)

Annual work programme 2015

Mission and Objectives:

1. identifying and coordinating, in close cooperation with Greece and benefiting from input from other Member States, the technical assistance that Greece needs to deliver the EU/IMF adjustment programme;

2. assisting the relevant Greek authorities in defining the details of the kind of technical assistance to be provided;

3. preparing clear Terms of Reference for all technical assistance assignments which specify the nature and scope of the technical assistance actions to be provided, the entity in the Greek administration that will be the beneficiary of technical assistance, the budgetary and human resources (including ENDs and experts from the private sector) that will deliver the technical assistance, and the expected results, with milestones and delivery deadlines;

4. recommending legislative, regulatory, administrative and if necessary (re)programming measures for an accelerated take-up of EU funds, in close cooperation with the relevant Commission services, the Greek authorities and the EIB, focusing on competitiveness, growth and employment/training;

26 TFGR and SGCY were transferred to the SG as of 1 July 2015 – see PV(2015)2131 /F1

27 Staff placed at disposal to the TFGR and the SGCY from other DGs is not included

Financial resources


Human resources






personnel (in FTEs)

Total

1 075 000 1 075 000 14 26 4027

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5. providing quarterly progress reports to the Commission and the Greek authorities as well as, on a needs basis, more frequent alert reports. The Task Force may also be used to provide technical assistance and to co-ordinate the work of the Commission in a limited number of other areas, for example external border control and asylum.

Establishment and organisation of the TFGR:

Further to the decision in July 2011 to propose a comprehensive programme of technical assistance for Greece to support the delivery of the EU/IMF adjustment programme and to accelerate the absorption of EU funds.28 The TFGR commenced operations as of 1 September 2011. The latest administrative and budgetary arrangements are set out in Commission decision of 18.4.2012 on administrative and budgetary arrangements for the TFGR (C(2012) 2688 final)29.

A programme of technical assistance is being managed and further developed on the basis of close cooperation with the Greek authorities, so as to respond to their priority needs.

The support of Member States and other potential providers of technical assistance (e.g. non-EU states such as Norway as well as EU and international organisations such as OECD, IMF, EIB, World Bank) is coordinated through bilateral contacts and regular coordination meetings.

Regular information, including on the TFGR's working methods, is provided to the Commission, other institutions, the Greek authorities and the wider public through the TFGR's regular progress reports.

In order to streamline the use of funds under centralised management, a representative of DG EMPL participates in the currently established procedures of the TFGR, acts as Authorising Officer by sub-Delegation (AOSD) as per Article 59 of the Financial Regulation30 for Structural Fund Technical Assistance and carries out the tender and the other procedures agreed with the TFGR31.

Specific objective: “To coordinate technical assistance that Greece needs to deliver the EU/IMF adjustment programme; and to recommend legislative, regulatory, administrative and if necessary (re)programming measures for an accelerated take-up of EU funds, focusing on competitiveness, growth and employment/training”


Result indicator 1: Greek absorption rate under the cohesion policy programmes (latest figures dated end of November 2014)

86.83% (placing the country in the 5th position at the EU level from 18th at the end of 2011)

A position among the top 10 and/or an absorption rate of > 90%

28 For more details see: http://ec.europa.eu/commission_2010-2014/president/taskforce-greece/index_en.htm 29 See also Ares(2011)1062316 - 06/10/2011. 30 Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the

general budget of the European Communities and Commission Regulation (EC, Euratom) No 2342/2002 of 23 December 2002 laying down detailed rules for the implementation of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities.

31 For more details see the Memorandum of understanding between DG EMPL, DG ECFIN and the TFGR signed for the implementation of Structural Funds in the context of the technical assistance to be provided to Greece (SEC(2012) 401 final).

http://myintracomm.ec.europa.eu/serv/en/TFGR/Documents/decision_2688.pdf

http://myintracomm.ec.europa.eu/serv/en/TFGR/Documents/decision_2688.pdf

http://ec.europa.eu/commission_2010-2014/president/taskforce-greece/index_en.htm

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Result indicator 2: N° of signed TA contracts that address priority areas identified jointly with the Greek authorities and in coordination with the EWG

2 in 2014 16 in 2015

2- Support Group for Cyprus (SGCY)

Annual work programme 2015

Mission and objectives of the SGCY:

1. helping to alleviate the social consequences of the economic shock by mobilising funds from European Union instruments and by supporting the Cypriot authorities' efforts to restore financial, economic and social stability;

2. bringing in further expertise to facilitate the emergence of new sources of economic activity;

3. identifying and coordinating, in close cooperation with Cyprus and benefiting from input from other Member States and international organisations, the technical assistance that Cyprus needs to help deliver the EU/IMF economic adjustment programme;

4. assisting the relevant Cypriot authorities in defining the details of the kind of technical assistance to be provided;

5. preparing clear terms of reference for all technical assistance (TA) assignments, which specify the nature and scope of the technical assistance actions to be provided, the entity in the Cypriot administration that will be the beneficiary of technical assistance, the budgetary and human resources that will deliver the technical assistance, and the expected results, with milestones and delivery deadlines; and

6. providing regular progress reports to the Commission and the Cypriot authorities.

Establishment and organisation of the SGCY:

Following a request by Cyprus on 25 June 2012, the European Commission, the European Central Bank and the International Monetary Fund agreed an economic adjustment programme with the Cypriot authorities on 2 April 2013. The programme aims to address the financial, fiscal and structural challenges facing the economy in a decisive manner and should allow Cyprus to return to a sustainable growth path.

Against this background, former Commission President Barroso took the initiative of proposing a two-pronged programme of technical assistance for Cyprus to support the delivery of the EU/IMF economic adjustment programme and assist the Cypriot authorities in developing a new sustainable growth model. This proposal was endorsed by the College of Commissioners during its meeting of 27 March 2013.

(1) The SGCY commenced operations on 1 July 2013 with the appointment of its Head. The SGCY has 12 members of staff, three of which are based in Nicosia and embedded in the Cypriot administration.

(2) A programme of technical assistance has been agreed and is regularly updated with the Cypriot authorities so as to respond to Cyprus' priority needs. To this end, the SGCY has

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established close contacts with the relevant Cypriot ministries and the Cypriot Directorate General for European Programmes, Coordination and Development.

(3) The support of Member States and other potential providers of technical assistance (e.g. international organisations such as IMF, World Bank, WHO) is coordinated through bilateral contacts and coordination meetings in Brussels and Nicosia.

(4) Technical assistance coordinated by the SGCY should complement other EU or national initiatives. While some projects may deliver tangible benefits in the short-term, in many cases, reforms will translate into concrete improvements for Cypriot businesses or citizens only over a longer period of time.

(5) The SGCY provides information on its activities to the Commission, other institutions, the Cypriot authorities and the wider public through regular oral briefings and written reports.

Programming technical assistance projects:

(6) The SGCY proceeds with the programming of technical assistance projects as follows:

Scoping of individual TA projects: In close cooperation with the Cypriot authorities, the SGCY establishes technical assistance needs in various areas. This phase involves experts from Member State administrations, agencies and/or international institutions going on short "scoping missions" to Cyprus to frame the terms of reference for a technical assistance project. These experts work with the Cypriot authorities and the SGCY to design the technical assistance project in the areas in question.

Design and implementation of individual TA projects: The TA projects help to implement reforms in the agreed areas. The projects involve detailed terms of reference, project plans, monitoring and reporting, and evaluation upon delivery. The SGCY draws on expertise and know-how from Member States, international organisations or specialised agencies as well as external resources (e.g. ICT service providers) needed to implement specific projects.

Financial arrangements to fund technical assistance projects:

(7) As regards funding of technical assistance activities, the following general approach has been chosen:

The preparation of reforms in identified areas: This work is carried out mainly by Member State public sector officials. The latter undertake an overall screening and scoping of TA needs on the ground and define specifications for a set of projects to be implemented. Resources to finance these preparatory activities mainly come from the technical assistance reserves of the European Structural and Investment Funds (ESIF). These technical assistance reserves are managed under "centralised management" within the budget implementation modes set out in the Financial Regulation32.

Resources to fund the implementation of individual TA projects: These are potentially available under the ESIF Operational Programmes for the programming period 2014-2020. In addition to

32 Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the

financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 and Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union.

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funds potentially available from the centrally-managed TA reserves of the ESIF, the Cypriot authorities have been requested to make available also in 2015 nationally-managed funds under Article 25 of Common Provisions Regulation33 for the purposes of financing individual TA projects in the context of the EU/IMF economic adjustment programme.

A representative of DG EMPL participates in the procedures of the SGCY, acts as Authorising Officer by Sub-Delegation (AOSD) for ESIF technical assistance as per Article 65 of the Financial Regulation and carries out tenders and the other procedures which he/she has agreed with the SGCY34.

Relevant general objective: To foster jobs, growth and investment Specific objective: To help to alleviate the social consequences of the economic shock by mobilising funds from European Union instruments and by supporting the Cypriot authorities' efforts to restore financial, economic and social stability, and bring in further expertise to facilitate the emergence of new sources of economic activity Result indicator 1: Number of designed, launched and completed short-term TA projects (Source of data: European Commission, DG ECFIN, SGCY) SGCY TA projects have as primary objectives either to facilitate the delivery of the economic adjustment programme for Cyprus or the emergence of new sources of economic activity in the country Baseline (2014) Current situation - 30/06/2015 Target (2015)

12 projects 18 projects 25 projects

Result indicator 2: Number of designed, launched and completed long-term TA projects (Source of data: European Commission, DG ECFIN, SGCY) SGCY TA projects have as primary objectives either to facilitate the delivery of the economic adjustment programme for Cyprus or the emergence of new sources of economic activity in the country Baseline (2014) Current situation - 30/06/2015 Target (2015)

2 projects (designed and launched)

6 projects (designed and launched) 5 projects (designed and launched)

Result indicator 3: Number of experts embedded in the Cypriot administration Source of data: European Commission, DG HR, Unit B.2 SGCY experts embedded in Cypriot ministries support the Cypriot authorities in the delivery of the economic adjustment programme and coordinate, on behalf of the SGCY, the technical assistance provided to Cyprus in their field of expertise Baseline (2014) Current situation - 30/06/2015 Target (2015)

1 resident expert 3 resident experts 3 resident experts

33 Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down

common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006.

34 For more details see the Memorandum of Understanding between DG EMPL, DG ECFIN and the SGCY of

12 June 2014 for the implementation of Structural Funds in the context of the technical assistance to be provided to Cyprus.

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Completion of 8 service contracts awarded under the negotiated procedure with a single tender (Commission output)

Final contractual payment 4th quarter 2015

Completion of 5 service contracts awarded under the restricted procedure with at least three candidates, without a contract notice (Commission output)

Final contractual payment 4th quarter 2015

Award of 3 long-term TA projects (Commission output)

Signature of a framework agreement, administrative arrangement, or a service contract awarded under the open or restricted procedure with publication of a contract notice or under a framework contract

4th quarter 2015

Completion of recruitment of 2 temporary agents as Cyprus resident experts (Commission output)

Experts embedded in Cypriot ministries taking up duties in Nicosia

1st quarter 2015

Planned evaluations: none

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LIST OF ACRONYMS

AMDS: Asset Management Designated Service

AMG: Asset Management Guidelines

AMR: Alert Mechanism Report

AOSD: Authorising Officer by Sub-Delegation

BCI: Business Cycle Indicators

BCS: Business Consumer Survey

BoP: Balance of Payments

CCEG: Counterfeit Coin Experts Group

CIP: Competitiveness and Innovation Programme

CNAC: Coin National Analysis Centre

COSME: Programme for the Competitiveness of Enterprises and Small and Medium-sized Enterprises

CPR: Common Provision regulation

CSF: Common Strategic Framework

CSR: Country Specific Recommendations

DG BUDG: Directorate-General Budget

DG CLIMA: Directorate-General Climate Action

DG COMP: Directorate-General Competition

DG CNECT: Directorate-General Communications Networks, Content and Technology

DG DEVCO: Directorate-General International Cooperation and Development

DG ECFIN: Directorate-General Economic and Financial Affairs

DG ECHO: Directorate-General Humanitarian Aid and Civil Protection

DG ENER: Directorate-General Energy

DG ENV: Directorate-General for the Environment

DG FISMA: Directorate-General Financial Stability, Financial Services and Capital Markets Union

DG GROW: Directorate-General Internal Market, Industry, Entrepreneurship and SMEs

DG MOVE: Directorate-General Mobility and Transport

DG NEAR: Directorate-General Neighbourhood and Enlargement Negotiations

DG REGIO: Directorate-General Regional and Urban Policy

DG RTD: Directorate-General Research and Innovation

DG TAXUD: Directorate-General Taxation and Customs Union

DS: Designated Service

DSM: Digital Single Market

EA: Euro Area

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ECOFIN: Economic and Financial Affairs Council

EEAS: European External Action Service

EBRD: European Bank for Reconstruction and Development

ECB: European Central bank

ECEG: Euro Counterfeiting Experts Group

ECSC: European Coal and Steel Community

EDP: Excessive Deficit Procedure

EEEF: European Energy Efficiency Fund

EEN: Enterprise Europe Network

EFC: Economic and Financial Committee

EFSI: European Fund for Strategic Investments

EFTA: European Free Trade Association

EFSM: European Stability Financial Stabilisation Mechanism

EIB: European Investment Bank

EIF: European Investment Fund

EIP: Excessive Imbalances Procedure

ELENA: European Local ENergy Assistance

ELM: External Lending Mandate

EMU: Economic and Monetary Union

ENP: European Neighbourhood Partner

EPC: Economic Policy Committee

EPMF: European Progress Microfinance Facility

ERM: Exchange Rate Mechanism

ESI: Economic Sentiment Indicator

ESM: European Stability Mechanism

ESTAT: Eurostat

ETSC: European Technical and Scientific Centre

EU: European Union

EURATOM: European Atomic Energy Community

EWG: Eurogroup Working Group

FCP: Fonds Commun de Placement

FIIEG: Financial Instruments Interservice Expert Group

FIS: Fonds d'Investissement Spécialisé

FP7: Seventh Framework Programme

FSB: Financial Stability Board

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G&E: Growth and Employment

GDP: Gross Domestic Product

GLF: Greek Loan Facility

HOS: Heads of State and Government

IAC: Internal Audit Capability

IAS: Internal Audit Service

ICS: Internal Control Standard

IDR: In-depth review

IfG: Institution for Growth

IFI: International financial institutions

IMF: International Monetary Fund

IPG: Integrated Policy guidelines

ISC: Inter Service Consultation

JSIS: Joint Sickness Insurance Scheme

LGTT: Loan Guarantee Instrument for TEN-T projects

LIME: Lisbon Methodology

MDB: Multilateral development banks

MAP: Multiannual programme for enterprises and entrepreneurship

MFA: Macro Financial Assistance

MFF: Multiannual Financial Framework

MIF: Municipal Infrastructure Facility

MIP: Macroeconomic Imbalance Procedure

MoU: Memorandum of Understanding

MS: Member State

MTO: Mid-Term Objective

NGO: Non-Governmental Organisation

NMS: New Member States

NRP: National Reform Programmes

OGWG: Output Gap Working Group

OECD: Organisation for Economic Co-operation and Development

PGF: Participants Guarantee Fund

PPP: Public-Private Partnerships

REER: Real Effective Exchange Rate

RSFF: Risk-Sharing Finance Facility

SCP: Stability and Convergence Programme

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SGCY: Support Group for Cyprus

SGP: Stability and growth Pact

SME: Small and Medium Enterprise

SMEG: Small and Medium Enterprise Guarantee

SPP: Strategic Planning and Programming

TA: Technical Assistance

TFEU: Treaty on the functioning of the European Union

TFGR: Task Force for Greece

ToR: Terms of Reference

TSCG: Treaty on Stability, Coordination, and Governance

UNFCCC: United Nations Framework Convention on Climate Change

WB: World Bank

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