Overall implementation

·   The launching of the 2014-2020 operational programmes under the European Structural and Investment Fund (ESIF) and the Fund for European Aid to the most Deprived (FEAD) was a major achievement in 2014.

·   More than 300 ESIF and FEAD operational programmes were adopted in 2014 or early in 2015 through carryover and more than EUR 2 billion was paid in initial pre- financing to ensure successful launching of the new generation of operational programmes.

·   Unused 2014 allocations were transferred by revision of the Multiannual Financial Framework in early 2015 ensuring full utilisation of the 2014 ESIF allocations and subsequent adoption of the remaining programmes.

·   For the 2007-2013 programmes the backlog of unpaid bills increased slightly to EUR 24.7 billion despite EUR 5 billion reinforcements through amending budget and transfers. However, the steep increase in the backlog since 2010 has come to an end in 2014 and the European Parliament, the Council and the Commission have agreed in May 2015 on a 'payment plan' with a clear strategy for phasing out the backlog by end 2016.

Implementation of the 2014-2020 programming period

·   2014 was the first year of the multiannual financial framework for the period 2014- 2020. The main achievements for the European Structural and Investment Funds (ESIF) and the Fund for European Aid to the most Deprived (FEAD) relate to the adoption of the 2014-2020 operational programmes. Under sub-heading 1b (H1b) 294 (66%) operational programmes out of 443 were adopted including through carryover by 31 March 2015. Under heading 2 (H2), 32 (22%) Rural Development and European Maritime and Fisheries Fund operational programmes out of 145 were adopted including through carryover. All remaining programmes not adopted in 2014 are expected to be adopted by end-2015.

·   To ensure full use of the 2014 ESIF allocations, a total amount of EUR 20.7 billion for H1b and H2 was transferred to subsequent years by a revision of the MFF Regulation in early 2015. This revision implies a transfer of unused 2014 ESIF allocations for H1b of EUR 11.2 billion to 2015 and for H2 of EUR 9.4 billion to 2015 and 2016. The reprogramming is more significant for H2 where 83% of the 2014 allocation is transferred to subsequent years, whereas the share of H1b is 24% with the lowest share for FEAD (0%), Youth Employment Initiative (5%) and ESF (15%).

·   2014 payments relate to the first instalment of the initial pre-financing for the operational programmes already adopted. For the 5 ESI Funds the initial pre-financing actually paid in 2014 amounts to EUR 1.7 billion and an additional EUR 0.4 billion for FEAD. For all other operational programmes, the 2014 initial pre-financing will be paid together with the 2015 instalment after the adoption of the programme. No interim payments were paid in 2014 and unused payment appropriations were transferred to reduce the backlog progression of the 2007-2013 operational programmes.

Implementation of the 2007-2013 programming period for sub-heading 1b

·   In 2014, the initial budget of payment appropriations for the 2007-2013 period amounted to EUR 46.6 billion, an increase of 3% on the corresponding 2013 figure. Payment appropriations were reinforced by almost EUR 5 billion via amending budget No 3 (EUR 2.8 billion) and by internal transfers and the end-of-the-year transfer (EUR 2.1 billion) resulting in a final level of available appropriations of EUR 51.7 billion.

·   Overall payment execution for the three 2007-13 Funds under H1b of EUR 51.8 billion reached 111% of the initially authorised 2014 budget of EUR 46.6 billion. Overall cumulative payments have reached 67.9% of the 2007-13 financial allocation and the level of 2007-13 outstanding commitments decreased significantly from EUR 133 billion to around EUR 81 billion.

·   Initial payment forecasts by Member States overestimated actual payment requests by 11% in total but the forecast results vary widely between countries. Member States updated their forecasts in September 2014, lowering their estimation by around EUR 7 billion, to an amount even smaller than (but close to) the payment applications actually submitted during the year.

·   Member States' submission of payment claims under H1b of EUR 21.5 billion during the month of December surpassed Commission's expectations of EUR 18-19 billion (based on Member States forecasts and previous error rates) and proved to be closer to Member States' September forecasts of EUR23billion. However, thanks to the reinforcement of the 2007-2013 programmes by payment appropriations initially foreseen for ESIF pre-financing, the backlog of unpaid bills remained within the Commission's forecast for the backlog of up to EUR 25 billion.

·   Thanks to the reinforcements provided by amending budget No 3 and the appropriations made available from the 2014-20 budget lines (programmes not yet adopted), the backlog ended 2014 at EUR 24.7 billion which is an increase of EUR 1.3 billion from the previous year's level. Even though the backlog in 2014 increased by a slower pace than in the past years, the level reached is considered unsustainable. The phasing out of the unsustainable backlog by end-2016 has been addressed in the 'payment plan' agreed by the European Parliament, the Council and the Commission in May 2015.

Implementation of the 2000-2006 programming period

·   88% of the programmes, representing 74% of the total 2000-2006 financial allocation, had been closed by the end of 2014.

·   Overall, cumulative implementation reached 99.1% for the EU-15 2000-2006 allocation and 99.5% for the EU-10 2004-2006 allocation.

·   The 2000-2006 outstanding commitments decreased by 29% from EUR 2.6 billion to EUR 1.8 billion contributing to the overall reduction of the RAL. Payments (EUR 245 million) account for a reduction of 33% and closure de-commitments (EUR 0.5 billion) account for the remaining 67%. 

To read the full paper, please folow the link below. 

Source: Analysis of the budgetary implementation of the European Structural and Investment Funds in 2014, DG Budget, May 2015