Task Force for Greece 1

TFGR Greece

12 active TA policy domains

1.Accelerate Cohesion policy projects 7.Public Health

2.Access to Finance/Financial Sector 8.Reform of Judicial System

3.Reform of Public Administration 9.Migration, Asylum and Borders

4.Budget and Taxation 10.Labour Market, Social Security, ed.

5.Anti-corruption/AML 11.Privatisation and Land Registry

6.Business Environment 12.Energy, Transport and Environment

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TA delivery methods :

1. Upstream dialogue, preparation and coordination

2. Expert missions (Sept 2011-Sept 2013):

• 356 expert missions including 29 workshops

• 1965 Expert Days

• heavy investment of "own-resources" by MS Domain Leaders (FR, NL, DE);

• 25 MS have provided experts; Most active: FR, NL, DE, SE, BE, EE, ES, AU, UK, DK

3. Small value EU COM contracts (since Nov 12): 36 signed contracts of € 418,000

4. Long-Term assistance projects:

• EU COM funded projects: 6 [8,3M €] + 4 in discussion for [2M€]

• GR funded projects: 2 [2,2M€] with OECD + 1 with WHO [10m]

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Number of Expert days (mostly funded by EC):break down by policy field:total 1965 expert days.

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TA missions: breakdown by policy field (total of 356 missions)

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Business environment

Business EnvironmentOpening up markets:

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1. OECD and Greek Administration

2. Sectors Screened

• Food

• Retail

• Construction products

• Tourism

OECD found 555 problematic provisions in regulations (e.g. Barriers to Entry; Price Distortions ; Third-party levies)

3. 329 Recomendations : total effect from rising expenditure, increased turnover and lower prices for the Greek consumer EUR 5.2 billion annually, or the equivalent of 2.5% of GDP.

4. Next step: Omnibus Law in preparation to Parliament before Easter

Business Environment:Cutting red tape:

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1. OECD and Greek Administration: target is to cut admin, burden for companies by 25%

2. 13 Sectors Screened:

VAT, Public Procurement, Company Law/Annual Accounts, Working Environment/Employment Relations, Agriculture, Energy, Environment, Fisheries, Food Safety, Pharmaceutical Legislation, Statistics, Telecommunications, Tourism

OECD measured the administrative burdens of legislation & is in the process of making recommendations in these sectors

3. Next step: Omnibus Law in preparation to parliament before Easter

Business environment: Public procurement

3 main working streams for which TA is provided: 1) Comprehensive reform of public procurement legislation TA is provided to the Single Public Procurement Authority, who

presented in December a draft codified and simplified PP law 2) Centralisation of procurement through the creation of Central

Purchasing Bodies and the use of framework agreements TA is provided to SG Commerce – first wave of framework

agreements is currently being launched 3) Effective use and enhacement of e-procurement tools (e-notification portal+e-procurement platform) 2 independent

experts evaluated the 2 systems and drafted a report with suggestions to improve their functionalities

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Business environment:Trade Facilitation

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1. Achievements:

• Adoption of a detailed TF roadmap (-50% time to export in 3 years)

• Pre-Customs: simplification risk analysis systems and roll-out of approved trader scheme for exporters of fruits and vegetables…

• Customs: opening of the customs brokers profession, roll out of eCustoms, risk based controls, electronic procedures/payments…

2. Priorities for TA:

• Pre-Customs: simplification of national legislation, development of electronic tools for traders (single-window for exports)

• Customs:

• Continuation of simplification reforms in customs offices

• Development of a Long term strategy for Customs to support the national budget & economic policy, trade & business needs

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Financing of Real Economy

Access to Finance (1/2)

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1. Banking sector

• 1st round of recapitalisation of Greek banks has been finalised

• Total volume of loans to corporates is still decreasing

2. Liquidity instruments supported by EU Structural Funds

• 1,7 bn EUR from EU Structural Funds (SF) were provided to generate - together with banks - in total 3,2 bn EUR new loans for SMEs

• 360 million EUR of new loans were contracted until December 2013

3. TA focused on two directions:

• improve effectiveness of financial instruments under SF

• create a new instrument to complement lending (guarantee scheme)

Access to Finance (2/2)

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4. Improve effectiveness of SF

• High level discussion platform (MoD, banks, SMEs, TFGR, ETEAN, EIF, EIB)which proposes ideas to improve access to credit for SMEs

Main conclusions: Lack of collateral; simplification of instruments and procedures is needed

Electronic information platform with all existing financial instruments and creation of a National SMEs application tool

• Working group on simplification (MoD – TFGR)

5. Institution for Growth in Greece (IfG)

• Steering committee (Hellenic Republic, German KfW, EIB, EIF, EU Commission, France)

• Law passed in December 2013: Greece provides 350 million EUR; KfW: 100 million EUR; Onassis foundation 30 million EUR

• Implementation planned before summer break

6. Better design for next programming period financial instruments

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Structural Funds

Structural Funds

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1. Figures for next programming period :

• Total Envelope EU Funds (excl EAFRD) 15.5Bln€ ERDF 8.37 Bln€; ESF 3.95 Bln€; CF 3.24Bln€;

• Agri related 18.2Bln € EAFRD 4.2Bln€; Support to markets 14Bln€;

2. Priorities for TA:

• Finalisation of partnership agreement for 2014-2020 + preparation of operational programmes;

• Simplification of management and control procedures

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Public Administration Reform

Reform of public administration (1/2)

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1. Achievements:

• Set-up of the Council of Reform (GCR) and of the SG interministerial coordination

• Preparation of a 2 years strategy and action plan for the reform (including HR topics) (imminent adoption)

• GCR decisions on reorganization of the of line Ministries

• Staff reduction (>200,000 staff over last 4 years)

2. Priorities for TA:

• Optimal functioning of GCR and SG interministerial

• Finalization of the evaluation of public entities

• Implementation of the transformation decisions taken by the GRC

• Adoption and implementation of the 2 years action plan - definition of relevant financing

• Adoption and implementation of the Digital and eGovernment strategies

• Procedure of selection of middle & senior managers

Reform of public administration (2/2)

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Main chapters covered by the 2 years action plan (example of actions)

(1)Improve the coordination of the administration: capacity of the GRC to steer, development of policy, …

(2) Enhance the internal effectiveness: strengthen support functions (HR, ICT, audit, internal control, etc)….

(3) Strengthen the efficiency and accountability of the civil servants: evaluation of civil servants performance, internal mobility capacity, etc

(4) Design a citizen-oriented public sector: improve key processes which are linked to citizens and companies' satisfaction

(5) Communicate and manage change

(6) In parellel strong ICT component to the modernisation of the state

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Anti corruption

Anti-money-laundering/anti-corruption:

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1. Recent developments

• Extensive training for AML and AC officials (over 700 participants);

• New AML law setting up a registry of bank accounts, system is operational end of January 2014;

• Appointment of national coordinator on Anti-Corruption responsible for implementing the national strategy on AC; Fighting Anti-Corruption will contribute to supporting economic growth.

• Strong activity of Financial Intelligence Unit (1446 cases of suspected tax evasion, 405 cases sent to Prosecutor's Office, freezing of assets worth more than EUR 140 million).

2. Next priorities for TA:

• Adoption and implementation of the New Agenda for Anti Money Laundering, including recommendations from AML Network report;

• Support of anti-corruption coordinator and his office;

• Develop proper implementation plan for AC strategy.

• Develop actions for AC strategy in use of structural funds

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Conclusions

Conclusions:

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1. Reform design phase over: time for implementation:

• Political leadership remain crucial;

• Change management and leadership skills lacking;

• Resource constraints (staff, motivation, budget);

• Cross-Ministerial coordination;

2. Broadening of TA programme:

• >50% of TA directed towards admin reform and tax/budget;

• Doubling of support for use of other policies (cohesion funds, AML/AC, privatisation + land registry, private health).

3. Financing of future TA.

• Centrally managed budget for TA

Small value contracts

Long term projects

• Art 25 of new SF regulation Transfer of fund from shared management (GR) to the Commission for TA purposes