FEAD Regulation - introducing specific - measures for addressing the COVID-19 crisis Webinar EUROCITIES, 22 April 2020

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FEAD Regulation - introducing specific - measures for addressing the COVID-19 crisis Webinar EUROCITIES, 22 April 2020
FEAD Regulation - introducing specific        #SocialRights
measures for addressing the COVID-19 crisis
Webinar EUROCITIES, 22 April 2020
FEAD: Facts and figures

Budget: 3,8 bn EUR (current prices) from cohesion allocation
Shared management
General objectives: promote social cohesion and enhance social inclusion
and contribute to achieving the EU2020 poverty reduction target
•    -> contribute to poverty reduction
• Specific objective: contribute to alleviating the worst forms of poverty by
  providing non-financial assistance to the most deprived persons
FEAD: Scope of support
2 types of Operational Programmes

a) Food and/or Basic Material Assistance (OP I)- 23 Member States

• Purchase and distribution of food- annual reach 12,5 million people

• Purchase and distribution of basic material assistance (clothes, sleeping bags, school
  supplies, etc.) 1 million people

• Accompanying measures

b) Social Inclusion of the Most Deprived (OP II)- DE, NL, DK, SE

• Non-material social inclusion activities outside active Labour market

• Reaches about 35,000 people (dedicated target groups)
FEAD – who are the most deprived ?

• Article 2(2) of FEAD Regulation: Persons whose need for assistance is
  established according to a set of objective criteria
• Defined at national level (in the OP or later)
Examples: people covered by minimum income scheme; homeless persons;
disadvantaged children; migrants, marginalized communities
FEAD – Implementation on the ground

• Article 2(3) of FEAD Regulation: through partner organisations (public
  bodies or non profit organizations)
• For OP I: Deliver food or material assistance (multiple levels possible);
  Provide accompanying measures; May also purchase assistance
   • Exclusive list of eligibility of expenditure

• For OP II: undertake social inclusion activities for the most deprived
• Role of cities/ municipalities
FEAD – Networking and Community

• Stakeholder exchanges: 18 FEAD network meetings from 2016 until 2019

• FEAD Community: Mutual learning on implementation challenges and next
  MFF
Reasons and objectives of the FEAD covid-
19 amendment proposal

• Ensure the most deprived continue to receive FEAD assistance in a safe
  environment
• Enable Managing Authorities, partner organisations and other actors involved
  in the implementation of the Fund to react quickly to the emerging additional
  needs of the target groups
• The most deprived are exposed to further hardship stemming from this crisis.
Key elements of the proposal

• Ensuring quick and effective crisis response by the FEAD (e.g early
  eligibility of actions, flexibility for OP amendments, broadening scope of
  eligibility)
• Providing flexibility and liquidity (e.g reporting, control and audit
  requirements, temporary increase of co-financing rate)
• Alignment with CRII package (ESI Funds)
Ensuring a quick and effective response to
  COVID-19 outbreak (1)

• Modification of key elements of the OP I not subject to COM decision
  (only notification) - Article 9(4) FEAD
• Expenditure for operations for fostering crisis response capacity to the
  COVID-19 outbreak is eligible as from 1 February 2020 (including when the
  OP must be amended) – Article 22(4) FEAD
Alignment with CRII package (ESI Funds)
Ensuring a quick and effective response to
 COVID-19 outbreak (2)
Food and basic material assistance may be provided through (electronic)
vouchers or cards:
• Rationale: Such indirect delivery reduces contamination risks
• COM proposal: only electronic vouchers for food and/or basic material
  assistance, as in the ESF+ Regulation proposal
• EP and CL amendment: also other forms of vouchers are allowed

N.B: preparation costs for vouchers (and meals) are also eligible under Article
26(2)(c) as in ESF+ proposal
Ensuring a quick and effective response to
 COVID-19 outbreak (3)
Provide protective materials and equipment to partner organisations
(Article 26 (2) (a))
Rationale:
• enables buying protective equipment for partner organisations outside
  technical assistance
• Allows continuation of traditional delivery schemes in safe environment
Providing flexibility and liquidity
Eligibility for suspended operations and operations that cannot be fully
implemented (Articles 26a, 26b, 26c)
• Rationale: introduce specific provisions regarding the eligibility of costs
  incurred by beneficiaries in case the delivery of food/basic material
  assistance or social assistance is delayed as well as for suspended and not
  fully implemented operations.
• Differentiation between FEAD OP I, OP II and Technical assistance
  operations.
• No similar provision in CPR
Ensuring a quick and effective response to
 COVID-19 outbreak (3)
Provide protective materials and equipment to partner organisations
(Article 26 (2) (a))
Rationale:
• enables buying protective equipment for partner organisations outside
  technical assistance
• Allows continuation of traditional delivery schemes in safe environment
Providing flexibility and liquidity (ctd)
Deadline for Annual Implementation report extended to 30/9/2020(Article
13 (1))
Co-financing rate of 100% on Member State request (Article 20(1a))
• Applicable for the accounting year 2020-2021, provided that the programme
  amendment is approved by the Commission at the latest before the
  submission of the final application for an interim payment
• Requires a programme amendment
• Need to notify the financial table; from the subsequent accounting year `reset`
  financial tables to normal
Alignment with CRII package
Providing flexibility and liquidity (ctd)
Lighter control and audit trail requirements (Article 30 (1a))
• Rationale: Reduce administrative burden; provide flexibility for compliance
  with certain management and control requirements (eg audit trail
  requirements during confinement periods)
• Based on an analysis of potential risks
• Applies only to FEAD OP I type programmes
State of play
• COM proposal adopted 2 April, as part of the CRII Plus package
• COREPER 8 April, Presidency compromise text
• EP Plenary adoption, 17 April
• Council adoption (Wednesday 22 April, tbc)
• Enters into force on the day following the OJ publication
State of play Coronavirus Response Investment Initiative Plus
(CRII Plus) – COM proposal for CPR (COM(2020)138)

• Full flexibility to transfer resources for 2020 between the 3 Cohesion policy
  Funds (Investment for Growth and Jobs Goal) : ESF, ERDF, Cohesion Fund
  (Art. 25a(2) CPR)
   • full flexibility for the 2020 allocations
   • No minimum share for ESF
   • YEI and FEAD: not affected
• Flexibility between categories of regions (Art. 25a(3) CPR)
• Full flexibility on thematic concentration (Art. 25a(5) CPR)
• Increasing EU co-financing rate to 100% (Art. 25a(1) CPR)
State of play Coronavirus Response Investment Initiative Plus
(CRII Plus) – Less administrative burden:
 Some examples:

 • No more amendments to Partnership Agreements (Art. 25a(6) CPR)

 • Deadline for submission of annual implementation reports for all ESI Funds 2019 extended (Art. 25a(9)
   CPR)

 • Eased use of a non-statistical sampling method for audit (Art. 25a(12) CPR)

 • Up to 10% financial flexibility per priority at programme closure (New Art. 130(3) CPR)
Reminder:
          The ESF+ components                       EGF

                                                    € 1,6 bn
                                                  (outside MFF
                                                    ceiling)

                   European
                  Social Fund +         EU priority
Support to the
                                         actions /
most deprived
                                      experimentation
  (FEAD)
                                          (EaSI)

                   Employment,
Investment in     education and
 Youth (YEI)      social inclusion         Health
                      (ESF)

   Shared management € 100 bn        Direct mgt € 1,2 bn
Policy Objective 4 - A More Social Europe – Implementing the
               European Pillar of Social Rights
                              ESF+ Specific Objectives

                                        EDUCATION                                SOCIAL
  EMPLOYMENT
                                         TRAINING                              INCLUSION
• (i) Access to employment          • (iv) Improving the quality,         • (vii) Active inclusion
  of all jobseekers                   effectiveness and labour            • (viii) Socio-integration of
• (ii) Modernising labour             market relevance of                   migrants and marginalised
  market institutions and             education and training                communities e.g. Roma
  services                            systems                             • (ix) Equal and timely access
                                    • (v) Promoting equal                   to services; social protection
• (iii) Women’s labour                                                      healthcare systems and
  market participation,               access to and completion
                                                                            long term care
                                      of, quality and inclusive
  work/life balance, well-            education
  adapted working                                                         • (x) Social integration of
                                    • (vi) Lifelong learning,               people at risk of poverty;
  environment, adaptation             upskilling, anticipating
  of workers & enterprises,           change and new skills               • (xi) Addressing material
  active & healthy ageing                                                   deprivation including
                                      requirements                          accompanying measures

     Gender equality, equal opportunity & non-discrimination
  Also contributes to other policy objectives, in particular, to PO 1 a
        Smarter Europe; PO 2 A Greener, low-carbon Europe
ESF+ support for addressing material
deprivation (specific objective xi)
• Ensures continuation of support provided by the FEAD in 2014-2020 to OP I:
  Addressing material deprivation through food and/or basic material
  assistance to the most deprived, including accompanying measures
• Objective of the merge: to promote synergies between ESF and FEAD
  support, whilst preserving lighter rules for FEAD-type support:
   • ESF+ Regulation and CPR proposals continue to provide for simpler requirements for
     this type of operations
The Regulation proposal provides for full flexibility. ESF + support to address material
deprivation can take two forms:
• Specific objective is part of comprehensive ESF + programme
• Specific programme exclusively addressing material deprivation

Relevant derogations in Common Provisions Regulations, such as:
• Performance framework: no targets and milestones
• Exceptions on programming and monitoring

NEW! Electronic vouchers/electronic cards for food and/or basic material
assistance (Article 17 (2))
ESF+ support to social integration of the most
deprived (specific objective x)

• May ensure continuation of support provided by the FEAD in 2014-2020 to
  OP II: now part of a broader specific objective x – “promoting social
  integration of people at risk of poverty or social exclusion, including the
  most deprived and children”
• In “duly justified cases”, addressing the most deprived under specific
  objective (x) counts for 2% minimum allocation to address material
  deprivation.
• In ESF+ proposal, this falls under Chapter II, General support of the ESF+
  strand under shared management (already in 2014-2020 many of the simpler
  rules only applied to OP I)
• Common provisions apply throughout
Partnership principle

   Social
  partners
                           ESF+
Civil society                           ESF+ resources for
                       programming,
                      implementation,   capacity building of
  Bodies for                                partners
                       monitoring and
 fundamental
                         evaluation
rights, gender
equality, non-
discrimination
Partnership
 CPR - Article 6 - Partnership and             ESF+ - Article 8
     multi-level governance
1. Each MS organises partnership        • MS to ensure participation of
   incl.:                               social partners and civil society in
• urban and other public authorities;   the delivery of employment,
• economic and social partners;         education and social inclusion
• civil society                         policies under ESF+

2. Involvement at all stages (PA,       • Member States to allocate
preparation, implementation,            appropriate amount of ESF+ in
participation in monitoring             each programme for the capacity
committees)                             building of social partners and
                                        civil society organisations.
3. Continuation of ECCP
                                        • Recital 26
4. COM consults partners min. once      • Partnership     for     innovation
a year on programme implementation      (art.13)
ESF+ programming state of play
• Spring 2019: informal dialogue with Member States
  started
• November 2019: COM letter to Member States on
  partnership and transparency
• Q3-Q4 2020: expected submission of Partnership
  Agreements and programmes
→ formal negotiations can start
Thank you !
References:
- FEAD website https://ec.europa.eu/social/main.jsp?catId=1089&langId=en
- COM proposal FEAD amendment:
  https://ec.europa.eu/social/main.jsp?langId=en&catId=1089&furtherNews=ye
  s&newsId=9638
- CRII Plus press release
  https://ec.europa.eu/commission/presscorner/detail/en/qanda_20_574
- ESF+ COM proposal
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