Four expert groups will identify measures to improve financial risk management and minimize financial sanctions under operational programs

At the first round table, organized at the initiative of Deputy Prime Minister Iliyana Tsanova, a decision was taken to establish four expert groups to summarize and develop measures to improve financial risk management and minimize financial sanctions under operational programs. The groups will have to report on  the results of their work in a month. “This way, all decisions will be taken by consensus among stakeholders in the management of EU funds. Our goal is to provide the next government with an action plan to improve management and control in order to protect the national interest in the next programming period”, Iliyana Tsanova said.

The four expert groups will work in the following areas:  

• Law on management of EU funds, regulating relations between institutions, involved in the management of EU funds, in a legal way, allowing administrative appeals; 
• Standardizing procurement documents and defining the scope of preliminary control, as well as other preventive measures to reduce public procurement errors;  
• Establishing effective communication and coordination, sharing experience, good and bad practices in risk management, and minimizing financial penalties in order to avoid repeating the same mistakes;  
• Evaluation of the European Commission’s new approach of imposing financial corrections for public procurement violations. Developing a mechanism for sharing the responsibility for financial corrections.  

The groups will include experts from all authorities involved in the management and control of European funds and public spending.  

Participants in the discussions on the “Financial risk management of EU funds - the first 7” recognized that the emphasis in the new programming period would be on results-oriented management of EU funds. Financial corrections continue to be treated as an instrument of the European Commission and Member States to correct the management of these funds. Experience with financial corrections in the past programming period 2007-2013 suggests that constant effort is needed to improve the management of EU funds, taking into account the size and frequency of their imposition at various control levels of the system.  

“Risk management is a key element in the functioning of the system for management of EU funds. We need systematic and regular risk assessment, preventive measures and proper allocation of responsibility”, Iliyana Tsanova said. She summarized the following conclusions:  

• Legislative measures regulating the relationship between institutions involved in the process, their liability, and an appeal method are needed;  
• Maximum coordination is needed between the various key players in the management, absorption and control of EU funds;  
• Ex ante control with regard to public procurement should be increased, as well the capacity of the Public Procurement Agency in exercising this control;
• It is necessary to unify the different types of contracts as much as possible;  
• The sustainability of investments must be guaranteed. This should be achieved both by raising awareness among beneficiaries and tracking investments at the national level.