EUROPEAN COMMISSION Brussels, 21.11.2018 COM(2018) 755 final REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Annual Monitoring Report on the implementation of Structural Reform Support Programme 2017 {SWD(2018) 465 final}



REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Annual Monitoring Report on the implementation of Structural Reform Support Programme 2017 INTRODUCTION Since 2017, the European Commission has been managing a dedicated programme with an initial budget of EUR 142.8 million (increased to EUR 222.8 million with the amendment of the Regulation (EU) 2017/825) aimed at supporting Member States in the design and implementation of institutional, administrative and growth-enhancing reforms – the Structural Reform Support Programme (SRSP). Structural reforms are, by their very nature, complex processes, the design and implementation of which require a complete chain of highly specialised knowledge and skills. In some Member States, the capacity to initiate and implement structural reforms is often not adequate to address the administrative, economic and social challenges that such reforms entail. The objective of the Structural Reform Support Programme is thus to help Member States address those challenges and strengthen their capacity to prepare and implement institutional, administrative and growth-enhancing reforms, thereby contributing to strengthening institutions, governance processes, public administrations as well as to improving performance and resilience of the economic and social sectors. The goal is to enhance cohesion, competitiveness, productivity, sustainable growth, job creation and investment. IMPLEMENTATION OF THE PROGRAMME IN YEAR 2017 2017 was the first year of the implementation of activities under the SRSP. Already in the first round of the Programme, the demand from Member States far exceeded the available budget. 16 Member States submitted 271 requests for support for an estimated amount almost 4 times the available annual SRSP 2017 budget of EUR 22.5 million. To select the requests from the Member States for funding under the SRSP in 2017, the Commission assessed the requests against the principles and criteria established in the SRSP Regulation. As a result, 159 requests from 16 Member States were selected for funding. The distribution of the selected requests across the main policy areas was as follows: ·29% in the area of labour market, education, health and social policy; ·28% in the area of growth and business environment; ·18% in the area of revenue administration and public financial management; ·16% related to financial services and access to finance; and ·9% related to governance and public administration. In line with the principle of sound financial management, priority for funding was given to requests that allowed for quick delivery of support and rapid implementation of reforms on the ground, and to requests addressing defined objectives, with strong expected results on the ground.

Almost 90% of the requests that were selected for funding in 2017 relate directly to EU's strategic priorities. The breakdown of the selected requests split according to the relevant circumstances under which they may be submitted under the SRSP Regulation (Article 7(3)) was as follows: ·51% of selected requests related to the implementation of reforms in response to challenges highlighted in the process of the European Semester (Country-Specific Recommendations, country reports); ·27% of selected requests related to the implementation of the Union strategic priorities (Capital Markets Union, Energy Union and climate, etc.); ·7% of selected requests related to the implementation of Union law; and ·4% of selected requests related to the implementation of the EU's economic adjustment programmes. While it is not in the remit of this report to evaluate the actual impact of the support measures, it is fair to say that already 14 months since the start of the implementation of the support measures selected for funding, the Programme had started to deliver the expected outputs – whether in the form of strategic and legal advice, studies, training, workshops, recommendations, actions plans, etc. By 31 October 2018, 12% of the reform support projects had already been delivered (finalised), 82% had begun to be implemented on the ground and 6% were under preparation. The largest proportion of support measures implemented in 2017 aim at: ·improving the functioning of national revenue administrations (11%); ·promoting the development of national and cross-border capital markets (9%); ·making healthcare systems more accessible, effective and resilient (9%); ·reforming the energy frameworks, including transitioning towards low-carbon economy, promoting energy efficiency and renewable energy (6%); ·strengthening education and training schemes (5%); and ·enhancing the efficiency and effectiveness of the public sector (5%).



PROGRESS IN RELATION TO PROGRAMME'S OBJECTIVES The Programme is also on track when it comes to delivering on its general objective . Support measures are being implemented in those policy sectors for which institutional, administrative and/or structural reforms have been envisaged and/or should be undertaken by the Member States, also thanks to the support provided. In particular, all of the support measures selected under the SRSP 2017 round contribute to the implementation of institutional, administrative and structural reforms that Member States carry out in various economic and social sectors, and which are being undertaken in response to economic and social challenges. Overall, the first year of implementation of the SRSP shows that the SRSP can offer a significant contribution in helping the Member States' national authorities in their efforts to identify and overcome certain structural weaknesses hindering the design and implementation of reforms. The Programme has for example helped reviewing the current law-making procedures, identifying weaknesses and providing recommendations for improvements. Likewise, the Programme has also proven to be an important tool helping to enhance the capacity of Member States to define more efficient processes and methodologies (improving the efficiency of health system) and/or to progress towards more effective human resource management (exchange of experiences among judges from different Member States to share their national practices with the requesting Member State).