Framework for Public-Private Partnerships

The European Commission presents a framework for encouraging the use of public private partnerships (PPPs) to meet existing and future needs for investment in public services, infrastructure and research in Europe.

The framework involves:

• increased funding for PPPs through working with the EIB, by re-focusing existing Community instruments and by developing guarantee instruments for PPP financing;
• in cases involving EU funding, better rules and procedures in order to ensure a level playing field between wholly publicly managed projects and those managed under PPPs;
• a more effective framework for innovation, including the possibility for the EU to participate in private law bodies and directly invest in specific projects;
• considering an EU legislative instrument on concessions, based on the ongoing Impact Assessment;
• improved information dissemination and exchange of best practice; including the creation of a new PPP group in which relevant stakeholders can share their concerns and further ideas with regard to PPPs.

2010 EU Budget Agreed

The 2010 budget of the European Union was approved by conciliation delegations from Parliament and the Council. Three issues were solved – the funding for the EU economic recovery plan, funding for the closure of the Bulgarian nuclear plant Kozloduy and emergency aid to milk producers.

The EU economic recovery plan will cost €2.4 billion next year. €75 million will go for support for the closure of the Bulgarian nuclear plant Kozloduy. €300 million will be used as emergency measures for milk producers.

 

Results from the EU-Russia Summit

So what are the particular results of the last EU-Russia summit? First, the parties signed financing agreements for five cross-border co-operation programmes (CBC) under the European Neighbourhood and Partnership Instrument (ENPI).

Second, Russia claimed to support the energy security of the EU, though doubts remain.

Third, Russia has pledged to support the EU position on climate policy, but details remain vague.

 

Bulgaria, Romania and Greece Most Corrupt in the EU

Bulgaria, Romania and Greece were at the bottom of the Transparency International Corruption Perceptions Index 2009 for the European Union.

Denmark leads the index, followed by Sweden and Finland. Estonia and Slovenia are the least corrupt from the East European Member States.

 

New EU Legislation on Investment Issues

Two new legal acts have been published in the Official Journal that deal with the investment process. Regulation (EC) No 1060/2009 on credit rating agencies introduces a common regulatory approach in order to enhance the integrity, transparency, responsibility, good governance and reliability of credit rating activities. Directive 2009/65/EC applies to undertakings for collective investment in transferable securities (UCITS) established within the territory of the European Union.

Both acts are quite detailed.

 

Solvency II is Adopted

The directive on the taking-up and pursuit of the business of insurance and reinsurance (Solvency II) has been adopted by the Council. It will provide a common legislative framework for the insurance and reinsurance businesses in the European Union.

Positive Report on the Implementation of the 2008 EU Budget

The European Court of Auditors has issued an overall positive report on the EU budget implementation for 2008. The error rate in the “Agriculture and natural resources” sector is substantially lower.

For Bulgaria the main concerns remain the management and control of funds in agriculture – both under pre-accession funding and from the European Agricultural Fund for Rural Development (EAFRD) after the accession.

 

Progress Report on Structural Actions

The European Commission has presented a progress report on the implementation of its action plan to strengthen the shared management of the EU structural and cohesion funds.

The report summarizes common errors in the management of EU funds on national level:

• contracts awarded without following the correct tender procedure;
• inadequate documentation to support expenditure (lack of audit trail);
• inaccurate calculation of overheads;
• application of incorrect co-financing rate;
• overestimated payment claims.

Commission Reports on EU Funds in Bulgaria and Romania

We now have the European Commission reports on the status of implementation of EU funds in Bulgaria and Romania until 31 July 2009.

Bulgaria has received 488 million Euro out of the total 1,36 billion Euro allocation for 2004-2006 – or a 36% success rate. The advance payments under the 2007-2009 budget amount to 828,7 million Euro. However, Bulgaria has not received interim payments due to the rejection of the compliance assessments of the Management and Control System submitted by Bulgaria in 2008 and 2009 for all operational programs. The only interim payments are from the European Agricultural Fund for Rural Development (EAFRD). A major recommendation for Bulgaria is to improve the management capacity of implementing structures.

Romania has received 1,89 billion Euro for 2004-2006 out of 2,97 billion Euro allocation, or a 63% success rate. The advance payments under the 2007-2009 budget amount to 2,42 billion Euro. Romania has also received 94 million Euro interim payments for the operational programs. A major recommendation for Romania is to revise the national legal framework for public procurement.

A Common European Income Tax?

EurActiv reports on some budget drafts for the 2014-2020 financial framework. The really interesting part is the hinted idea of replacing current budget resources (mainly from VAT) with something that might be called European income tax. One of the considerations of the Commission appears to be that the financing of the EU budget from VAT is incomprehensible for the European citizens.

A bold idea indeed.