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The European Union (EU) is committed to ensuring its budget delivers maximum value for citizens by focusing on results and performance. In 2018, as part of the shift towards performance-based budgeting, the EU revised the rules applicable to the general budgeBriefing - Performance-based delivery of the Recovery and Resilience Facility: Blueprint for future EU spending instruments? - 04-11-2024
The European Union (EU) is committed to ensuring its budget delivers maximum value for citizens by focusing on results and performance. In 2018, as part of the shift towards performance-based budgeting, the EU revised the rules applicable to the general budget and introduced the possibility of financing that is not linked to cost (FNLC) in addition to the traditional ways of financing based on incurred costs (Article 125 of EU Regulation 2018/1046). Under this method, payments are based on results achieved, and are made if a beneficiary fulfils predefined conditions linked to progress in implementing or achieving the objectives of a project or programme. The Recovery and Resilience Facility (RRF) – the EU's ground-breaking instrument created to support the Member States' post-pandemic economic recovery – is a key example of how this delivery method is applied. For the first time, disbursements to the Member States depend on achieving pre-defined milestones and targets relating to the implementation of reform and investment measures. Since the creation of the RRF, the EU has set up similar instruments in other policy areas. The Ukraine Facility (UF) and the Reform and Growth Facility for the Western Balkans (WBF), both launched in 2024, share some key features with the RRF delivery method. Along with the application of the FNLC principle for payments, other common features include the prominent role of the reform measures, using scoreboards to monitor implementation, and setting up special forums, known as 'dialogues', for the exchange of information and views with the European Parliament. Examining in detail this innovative way of funding as it applies to the three facilities helps to shed light on an emerging, performance-based modus operandi that is already being discussed as a possible blueprint for other spending tools under the post-2027 EU budget. Source : © European Union, 2024 - EP Read more