Influencing the reform of the European financial regulation

The European Commission (EC) has started the review of its financial regulations, which control all grants and tenders disbursed worldwide.

The EC is the largest donor in the world, contributing roughly €50bn per year to civil society (Ian Begg, European Institute, LSE). However, according to many members of Euclid pan-European network of third sector leaders, its financial procedures are allegedly the most expensive (administratively) and inaccessible (difficult to apply, manage and report) in the world, preventing the main bulk of organisations, especially at the grassroots level, from applying. 

DG Budget is leading the process of reform and started its mid-term review of the budget earlier this year. DG Budget is running an internal task force within the EC and at this stage, it appears that no public consultation will be organised. The process has been sped up and a first draft of the new regulations will be ready by the end of December. Adoption of the Commission’s proposal to the Council is scheduled for spring 2010. The best time to influence is before the first draft is ready, thus in September-October 2009. In any event, it is crucial that the needed changes are incorporated in the Commission’s proposal.

The consultation

Thanks to its contacts within the EC and specifically in DG Budget, Euclid Network (EN) has been invited to provide recommendations for the review to make the regulations more cost effective and third sector friendly. 

EN has launched an internal consultation amongst its members and partners to define up to 10 key changes to be made in the new regulations, which will be supported with case studies. The results of the consultation will be launched at an EN roundtable in London on 18 September.  

EN members from across Europe will encourage other national and European networks to take part in the consultation. ACEVO (Association of Chief Executives of Voluntary Organisations), BOND (the British network of development NGOs), ODI (the UK-based international development think tank), CONCORD (the European umbrella for development NGOs), CSV (an umbrella body for volunteering organisations), TSEN (the Third Sector European Network), Civic Forum, ECAS (European Citizens’ Advisory Service), SOLIDAR, the London School of Economics, CJDES (the French national association for third sector leaders) and Ideell Arena (the Swedish national association for third sector organisations) are invited to take part, and all other networks are also encouraged to participate. 

A lawyer will assist in translating the changes in to legal language providing a new wording for the regulations which will be submitted to DG Budget. 

After September, EN will engage with governments and MEPs to ensure that the changes are adopted in the final text. The new regulations will have to be approved by the European Council and the European Parliament if the Lisbon Treaty is ratified.  

Timeline 

21 Aug – 17 Sept: Consultation of members and partners

19 Sept – 25 Sept: Draft and submit recommendations to EC

25 Sept – end of year: Campaign and lobby governments and MEPs  

Expected results

If adopted in the new regulations, the recommendations will:

– decrease the administrative costs of EU funding

– increase the accessibility and flexibility of funding

– save time for both applicants and EU officials

– incentivise social entrepreneurship and innovation

– promote transparency and accountability

– increase the reputation of the EU

– set an example for other donors.

This will have a dramatic benefit for the development of civil society and its relationship with the EU.  

How to participate

To participate in the consultation and give your view, please answer the following two questions: 

1.     What do you want to change? 

2.     What’s your story?  

Participants can suggest several changes to reform EU funding but each suggestion must be supported by an example or case study to show why you have suggested this change.  

At the end of your suggestion, tell us your name, position, organisation and please give us the permission to quote your contribution. Please email your submissions to matthew.rowlands@euclidnetwork.eu. 

Contributions are also invited through an online form available at http://www.surveymonkey.com/s.aspx?sm=mloZ9UemIUKW3sGuQlt1EQ_3d_3d 

All participants are invited to the roundtable on 18 September to hear the final outcomes of the consultation. Please contact jenna.collins@euclidnetwork.eu to book your place.

 

For further information, visit the Euclid Network website at the following link: http://www.euclidnetwork.eu/pubb/news_ext.php?id=217.

 

Source: www.euclidnetwork.eu