EU Financial Regulation Gets a Makeover: Simplified Rules, Easier Access to Funding
The European Union is set to overhaul its financial regulation, aiming to simplify the application process, reduce bureaucracy, and ensure that every euro from the EU budget delivers maximum added value. This article explores the key changes in the new system.
Simplification and Streamlining
Reducing Complexity
The current complex system of rules and procedures will be replaced by a single set of harmonized rules, eliminating duplication and overlapping regulations. This reduction in administrative burden will make it easier for beneficiaries and managers to access and use EU funds.
Easier Access to Funding
Simplifying the Application Process
Under the old financial rules, beneficiaries had to navigate multiple layers of bureaucracy, providing extensive information and documentation to access funding. The new system simplifies this process by:
- Reducing the amount of information required
- Extending the validity period of provided evidence to three years
- Allowing beneficiaries to reuse their information
Reusing Information and Obtaining a ‘Seal of Excellence’
Beneficiaries can now obtain a ‘seal of excellence’ certificate, which recognizes the quality of their projects. This certification process makes it easier for them to secure alternative funding from national, regional, or private sources.
More Focus on Results
Shifting from Input-Based Spending to Output-Based Results
The new financial rules shift the focus from input-based spending to output-based results. This means that beneficiaries will be paid for achieving specific outcomes rather than simply providing documentation of costs incurred.
Examples of Outcome-Based Payments
- Training centers can be paid per person successfully completing a course or finding employment within a set timeframe
- Other examples may include payments for the number of people served, the quality of services provided, or the impact achieved
Simplified Audits and Checks
Single Audit Approach
The new system introduces a ‘single audit’ approach, where each project is audited only once by an independent auditor. This eliminates duplication and reduces the administrative burden on beneficiaries.
Trusted Partners’ Audits and Assessments
Trusted partners’ audits and assessments will be taken into account, while tougher checks will be applied in cases of high risk or potential abuse.
Greater Transparency
Conflict of Interest Rules Extended to National and Regional Authorities
The new financial regulation includes provisions for conflict of interest rules extended to national and regional authorities implementing EU funds. This aims to prevent the use of shell companies and tax havens, ensuring greater transparency and accountability in the use of EU funds.
Voluntary Disclosure of Shareholders
This provision encourages transparency by allowing individuals or entities involved in the implementation of EU funds to disclose their shareholders voluntarily.
Conclusion
The overhaul of EU financial regulation seeks to make it easier for beneficiaries and managers of EU funds to access and utilize these resources, with a focus on simplification, streamlining, and increasing transparency. By reducing bureaucracy and making the process more efficient, the new system aims to deliver maximum added value from every euro in the EU budget.