Report from the Commission - 20th annual report on implementation of the structural funds (2008) {SEC(2009)1495}
Date: 2009-10-30
Institutions: European Commission
Subjects: Community budget, Structural Funds, activity report, implementation of the budget, structural expenditure

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 30.10.2009 
COM(2009)617 final 

REPORT FROM THE COMMISSION 

20TH ANNUAL REPORT ON IMPLEMENTATION OF  
THE STRUCTURAL FUNDS (2008) 

{SEC(2009)1495} 

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TABLE OF CONTENTS 

1. 

2. 

3. 

4. 

5. 

6. 

Introduction .................................................................................................................. 3 

Analysis of Implementation ......................................................................................... 4 

Consistency and Coordination ..................................................................................... 8 

Evaluations................................................................................................................... 9 

Controls ...................................................................................................................... 10 

Committees Assisting the Commission ..................................................................... 12 

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REPORT FROM THE COMMISSION 

20TH ANNUAL REPORT ON IMPLEMENTATION OF  
THE STRUCTURAL FUNDS (2008) 

This report is presented in accordance with Article 45(2) of Regulation (EC) No 1260/1999 
laying  down  general  provisions  on  the  Structural  Funds.  It  covers  the  activities  linked  to 
Structural Funds 2000-2006 assistance during 2008. 

More detailed information is available in the Commission Staff Working Document (attached 
to this report). 

1. 

INTRODUCTION 

2008 was the ninth year in which Structural Funds programmes and projects for the 
2000-2006  programming  period  were  implemented.  Altogether  7181  were  managed 
in 2008. 

In  addition  to  implementation  of  2000-2006  Structural  Funds  programmes  and 
projects and preparation for their closure, the Commission was also heavily involved 
in  planning  and  programming  of  434 programmes  (317  ERDF,  117  ESF)2  of  the 
2007-2013 period in 2008.  

Efforts  were  continued  to  improve  the  quality  of  programmes  and  projects 
co-financed by the Structural Funds, an objective which also covers reliable financial 
management  of  programmes.  The  partnership  model,  better  financial  management, 
control  and  evaluation  have  produced  very  high  quality  results  and  also  made  for 
good governance of co-funded programmes and projects. 

The ex post evaluation of Objectives 1 and 2 programmes for 2000-2006 is expected 
to be completed by the end of 2009. The ex post evaluation for the ESF programmes 
is  planned  to  be  finalised  early  2010.  Furthermore,  the  ex  post  evaluations  for 
Community initiatives URBAN and INTERREG were also launched in 2008. The ex 
post  evaluation  of  the  EQUAL  Community  Initiative  was  launched  early  2009. 
Concerning the FIFG, the outsourcing of the ex post evaluations was launched at the 
end of 2008. 

Exchange  of  experience  was  promoted,  notably  through  interregional  and  urban 
networks  and  the  conference  "Regions  for  Economic  Change"  in  February  2008, 
where  for  the  first  time  "RegioStars"  were  awarded  to  good  practice  innovation 
projects. 

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226  Objective  1  and  Objective  2,  47  Objective  3,  12  FIFG  (outside  Objective  1),  81  INTERREG, 
71 URBAN, 27 EQUAL, 73 LEADER+ and 181 Innovative Action programmes 
See Communication on the results of negotiations on strategies and programmes for the programming 
period 2007-2013. 

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As the biggest event ever organised in relation to Cohesion Policy, the OPEN DAYS 
"European week of regions and cities", was held together with the Committee of the 
Regions  and  216  regions  and  cities  across  the  EU  with  the  headline  "Regions  and 
cities in a challenging world". 

Both the Slovenian and the French presidencies acknowledged the importance of the 
ESF by organising high level conferences, namely one in Maribor in June 2008 and 
one in Le Havre in September 2008.  

2. 

ANALYSIS OF IMPLEMENTATION 

2.1. 

Budget Implementation 

2.1.1.  ERDF 

2008  was  a  good  year  in  terms  of  budgetary  execution  despite  the  worsening 
economic climate. The overall execution rate for payments reached 99.9% (the same 
result as in 2007 and 2006) with EUR 15.1 billion being disbursed to Member States 
for regional programmes and projects. The execution level of payment appropriations 
was higher than initially foreseen for all objectives: EUR 11.5 billion were paid on 
Objective  1,  EUR 2.4 billion  on  Objective  2,  EUR 1 billion  on  INTERREG  III  and 
EUR 0.2 billion on other programmes (Urban, Innovative Actions, Peace).  

The  2008  execution  of  the  2000-2006  period  has  exceeded  the  initial  forecasts 
(EUR 15.1 billion  paid out instead of  the budgeted  EUR 9.2 billion). At the end of 
2008,  commitments  from  previous  years  on  which  payments  were  still  to  be  made 
(RAL) amounted to EUR 12.6 billion to compare with EUR 27.7 billion as at the end 
of 2007. This represents 9.7 % of total commitments for the period 2000-2006 and is 
equivalent  to  7 months  of  commitments  on  the  basis  of  an  average  EUR  20  billion 
being committed by year.  

In  2008,  the  so-called  "n+2"  rule  did  not  apply  to  the  2006  commitment  tranche. 
Instead,  the  total  amount  to  be  de-committed  under  the  "n+2"  rule  for  the 
programming  period  2000-2006  will  be  finalised  at  the  closure  of  the  operational 
programmes. 

For the whole period, EUR 118 billion have been paid to Member States as at the end 
of 2008. This represents an absorption rate for all Member States of 91 % of the EUR 
129.4 billion overall allocation.  

In  the  context  of  the  financial  crisis  and  the  Recovery  Package  proposed  by  the 
Commission,  an  extension  of  six  (or  twelve)  months  has  been  granted  on  a 
programme-by-programme basis for the Member States which opt for it. Out of 379 
programmes of the 2000-2006 period, 281 (or 74 %) with 90 % of ERDF funds have 
chosen to extend their eligibility dates.  

2.1.2.  ESF 

In terms of budgetary execution, 2008 was a satisfactory year for the ESF despite the 
exceptional circumstances due to the economic and financial crisis.  

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Concerning  the  2000-2006  programming  period,  the  payment  credits  consumption 
during  2008  reached  EUR  6.394  billion  which  corresponds  to  98%  of  the  annual 
payment credits allocation. The 2008 consumption by objective ranges from 90.91% 
of annual payment credits for Objective 2 to 100% for Objective 1.  

The  total  outstanding  commitments  at  the  end  of  2008  stood  at  EUR  6.4  billion 
(compared to EUR 12.9 billion in 2007). This represents 9.3 % of total commitments 
for the period 2000-2006. 

In 2008, the so-called "n+2" rule did not apply. The total amount to be de-committed 
under the "n+2" rule for the programming period 2000-2006 will be finalised at the 
closure of the operational programmes. 

For  the  whole  period,  EUR  62.2  billion  (90.7% of  the  overall  allocation)  has  been 
paid to Member States as at the end of 2008.  

In  line  with  the  regulatory  framework,  payments  for  the  2000-2006  period  could 
continue until the end of 2008. However, in the context of the financial crisis and the 
recovery package  proposed  by  the  Commission,  an  extension  of  six  (or  twelve 
months)  has  been  granted  on  a  programme-by-programme  basis  for  the  Member 
States which opt for it. Out of 91 programmes where DG EMPL is "chef de file", 68 
(or 75 %) have chosen to extend their eligibility dates. 

2.1.3.  EAGGF 

in  2008  from 

total  amount  paid 

The 
the  EAGGF-Guidance  Section  was 
EUR 2.0 billion. The financial execution rate of EAGGF payment appropriations for 
rural development programmes for the period 2000-2006 reached 97.2% (taking into 
calculation  all  Community  funds  available  on  EAGGF  budget  lines,  including  an 
amount  of  EUR  0.19  billion  transferred  at the end of 2008 from other budget lines 
not  related  to  the  Structural  Funds).  If  the  execution  rate  were  calculated  using  the 
initial budget for payment appropriations, the execution rate would attain 100%. 

In 2008 there were no commitments for rural development programmes related to the 
2000-2006  period,  except  an  amount  of  EUR  0.14  million  concerning  one 
programme. 

At the end of 2008 commitments from previous years on which payments were still 
to be made (RAL) totalled EUR 1.8 billion, compared with EUR 3.9 billion in 2007. 

As  stated  above,  the  year  2006  was  the  last  of  the  programming  period  and  so  the 
"n+2"  rule  regarding  decommitments  was  not  applied  in  2008.  The  amount  of  any 
such  decommitments  will  be  calculated  at  closure  in  line  with  the  Commission 
guidelines on closure of the 2000-2006 programmes. 

2.1.4.  FIFG 

The  budgetary  implementation  in  2008  was  highly  satisfactory.  The  overall 
execution rate for payments was 97.8%, with EUR 320 million being disbursed to the 
Member  States.  Concerning  the  execution  level  of  payment  appropriations,  EUR 
195.7 million were paid in Objective 1 and EUR 124.3 million outside Objective 1. 

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The  2008  execution  of  the  2000-2006  period  is  EUR  320  million  compared  to  the 
initial forecast of EUR 269 million.  

The total RAL for the FIFG at the end of the year 2008 reached EUR 449.3 million 
(compared  with  EUR  812.5  million  in  2007).  This  represents  11.3  %  of  total 
commitments for the period 2000-2006.  

For the whole period, as at the end of 2008, EUR 3 515.2 million have been paid to 
Member States. This represents an absorption rate for all Member States of 89.3 % of 
the EUR 3 935.8 million overall allocation. 

2.2. 

Programme Implementation 

2.2.1.  Objective 1 

Objective 1 programmes focused on basic infrastructure projects (41.4%), with over 
half of all investment in this category spent on transport infrastructure (51.9%). More 
than  a  third  (33.3%)  of  Objective 1  resources  was  invested  in  the  productive 
environment, where the focus continues to be on assisting SMEs and the craft sector 
(28.3%).  Projects  geared  to  human  resources  account  for  23.2%  of  resources  in 
Objective 1 regions. The main areas of assistance in this field are almost equally split 
between  labour  market  policies  (31.3%)  and  education,  and  vocational  training 
(30.9%).  

2.2.2.  Objective 2 

The  main  focus  of  programmes  in  Objective  2  regions  continues  to  be  on  the 
productive  environment,  with  over  half  of  all  financial  resources  devoted  to  this 
category  (55.5%).  Within  this  field,  assistance  to  SMEs  and  the  craft  sector  is  the 
most dominant (55.8%). The second most supported field is basic infrastructure, with 
29.7%  of  all  Objective  2  resources.  Unlike  Objective  1  programmes,  the  most 
important  areas  in  financial  terms  are  planning  and  rehabilitation  of  areas  (45.4%). 
In the category of human resources (10.2% of all investment in Objective 2 regions), 
workforce 
information  and 
communication technologies are the main fields of investment (30.5%).  

flexibility,  entrepreneurial  activity, 

innovation, 

2.2.3.  Objective 3 

ESF  programme  implementation  in  2008  continued  to  be  focused  on  the 
European Employment  Strategy,  particularly  on  the  measures  aimed  at  improving 
employability  in  the  labour  market  (31.3%),  lifelong  learning  (actions  developing 
educational  and  vocational  training  represented  22.3%  of  the  expenditure),  social 
inclusion  (20.7%)  and  equal  opportunities  (6.4%).  A  marked  difference  still 
remained  in  concrete  implementation  of  programmes  as  measured  by  financial 
implementation between the EU15, where long established programmes continued to 
be  implemented,  and  EU10,  where  some  Members  States  are  experiencing 
considerable difficulties in getting some projects and measures under way. 

2.2.4.  Fisheries outside Objective 1 

Expenditure of the FIFG programmes outside Objective 1 focused on processing and 
marketing (25.2%). The second most important measure was operations by members 

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of the trade (15.4%), followed by aquaculture (12.4%). The expenditure dedicated to 
scrapping amounted to 11% in 2008. 

2.2.5.  Community initiatives 

2.2.5.1.  INTERREG 

By the end of 2008 the 81 INTERREG III/Neighbourhood programmes had selected 
about  15,000  projects  and  networks  aiming  at  reducing  the  effects  of  national 
borders,  language  barriers  and  cultural  differences  and  developing  border  areas, 
supporting strategic development and territorial integration across larger zones of the 
Union  and  better  integration  with  its  neighbours.  Effectiveness  of  regional 
development  policies  and  instruments  has  also  been  supported  through  sharing  of 
good practice and exchange of experience. 

In  2008,  the  implementation  of  81  INTERREG  III/Neighbourhood  programmes 
continued to progress well with a payment execution rate of 85%. Due to the more 
specific  and  challenging  nature  of  cooperation  programmes  and  projects 
de-commitments due to the "n+2" rule could not be avoided for some programmes, 
representing an overall amount of € 3.74 million in recoveries. 

2.2.5.2.  EQUAL 

The  EQUAL  Community  Initiative  programmes  were  administratively  closed  in 
most Member States. Only a few asked for an extension of the final date of eligibility 
into 2009 in order to achieve a higher absorption rate and to continue mainstreaming 
actions.  

Most  Member  States  focused  their  actions  under  EQUAL  on  consolidating, 
documenting  and  synthesizing  project  results,  on  the  dissemination  actions  such  as 
final conferences on the lessons learnt as well as on the integration of the EQUAL 
aquis  and  approach  into  the  ESF  Operational  Programmes  2007-2013,  e.g.  through 
the  transfer  of  staff,  the  continuation  of  national  thematic  networks,  the  funding  of 
transnational  and  innovative  projects  or  the  commitment  to  actively  participate  in 
learning networks of ESF managers.  

2.2.5.3.  URBAN 

Work  continued  in  2008  on  the  management  of  the  71  operational  programmes 
implementing  the  URBAN  Community  Initiative  by  way  of  annual  reports, 
monitoring  committees  and  annual  meetings.  Work  on  the  management  of  the 
URBACT I programme also continued by way of monitoring committees, reporting 
procedures  and  the  close  follow-up  of  the  two  Pilot  Fast  Track  Networks.  The 
URBACT II  programme  is  also  one  of  the  main  instruments  of  the  Regions  for 
Economic Change initiative, aiming at bringing best practice and innovative concepts 
faster into implementation.  

2.2.5.4.  LEADER+ 

The Community Initiative Leader+ consists of three actions: implementation of local 
development  strategies  by  public  private  partnerships,  cooperation  between  rural 
territories  and  networking.  73  Leader+  programmes  for  the  EU  15  have  been 

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approved  for  the  period  2000-2006.  Recently  acceded  EU  Member  States  had  the 
option  of  integrating  Leader+  type  measures  into  their  EAGGF  Objective  1 
programmes. 

Most  of  the  Leader+  National  Networks  ended  their  activity  in  2008.  The  main 
activity  at  the  end  of  the  programming  period  was  dissemination  and  know-how 
transfer.  The  European  Leader+  Observatory  issued  in  2008  a  second  and  third 
publication presenting a total of fifty examples of good practice. 

2.2.6. 

Innovative actions 

2.2.6.1.  ERDF 

DG Regional Policy also managed 181 Regional Programmes of Innovative Actions 
(124 were closed up to 31 December 2008, of which 39 were closed during the year 
2008), which help to promote strategic innovation in the regions, by experimenting 
with  innovative  methods  and  practices  designed  to  improve  the  level  of  innovation 
and  the  quality  of  EU  assistance  under  three  themes:  knowledge  and  technological 
innovation, information society and sustainable development. 

2.2.6.2.  ESF 

During  2008,  the  remaining  Innovative  Actions  for  2004  were  closed  and  a 
finalised. 
considerable  number  of  2005  and  2006  projects  were  also 
DG Employment,  Social  Affairs  and  Equal  Opportunities  managed  the  remaining 
projects selected under the 2005 and 2006 rounds, together with two projects relating 
to dissemination activities. The DG also held a seminar for 2006 project promoters 
and  cooperated  with  DG  Regional  Policy  in  the  initiation  of  a  follow-on  network, 
involving earlier innovative project promoters, notably in Germany. 

3. 

CONSISTENCY AND COORDINATION 

3.1. 

Consistency with other Community policies 

3.1.1.  Competition 

There  were  no  major  developments  to  be  reported  for  State  aid  policy  in  the 
reporting period 2008. 

3.1.2. 

Internal market 

Member  States  are  required  to  ensure  that  operations  co-financed  by  the  Funds 
comply  with  Public  Procurement  Directives.  Where  the  Commission  learns  of  any 
breach of EC legislation or where audits demonstrate that this is the case, appropriate 
action  is  taken.  A  new  regulatory  framework  for  public  procurement  and  the 
awarding of works concessions has been introduced in order to provide greater legal 
certainty both for the private and for the public sector. 

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3.1.3.  Environment 

In relation to the on-going programmes, the focus has continued to be on supporting 
compliance  with  the  Community  acquis  in  the  field  of  urban  wastewater,  water 
supply,  waste management  and  biodiversity.  Other  important  areas  of  investment 
have  been  in  eco-innovation  and  rehabilitation  of  polluted  soil.  The  promotion  of 
sustainable 
in 
environmentally-friendly 
transport  and  energy  and  by  pro-actively  ensuring 
compliance of projects with environmental legislation. 

development 

investments 

continued 

through 

has 

3.1.4.  Transport 

Cohesion programmes continue to be the main source of Community support for the 
realisation of EU priorities in the transport sector, as introduced in the White Paper 
“European  transport  policy  for  2010:  time to  decide”  and  its  mid-term  review 
published  in  2006.  Accordingly,  Funds  have  been  used  both  in TEN-T  projects  as 
well  as  projects  supporting co-modality,  energy efficiency  in  transport,  intelligent 
transport systems and urban transport mobility. 

3.1.5.  Gender equality 

The  Commission  worked  on  the  implementation  of  the  “Roadmap  for  Equality 
between Women and Men”, reflecting the Commission’s commitment to this issue. 
In  this  context,  gender  equality  and  gender  mainstreaming  are  cross-cutting  issues 
linked  to  all  programmes  in  the  2007-2013  programming  period.  A  meeting  of  the 
High  Level  Group  on  Gender  Mainstreaming  in  the  Structural  Funds  in  June  2007 
underlined  the  importance  of  involving  gender  bodies  in  the  elaboration  and 
implementation of the programmes. 

3.2. 

Coordination of instruments 

3.2.1.  The Structural Funds and the Cohesion Fund 

In  2000-2006,  all  25  Member  States  benefited  from 
the 
Structural Funds,  while  13  Member  States  also  benefited  from  the  Cohesion  Fund 
which  supports  the  less  prosperous  countries.  The  Structural  Funds  have  been 
carefully co-ordinated among themselves, and vis-à-vis the Cohesion Fund (ERDF in 
particular), to avoid duplication in projects supported.  

the  support  of 

3.2.2.  The Structural Funds and the EIB/EIF 

The Commission and the EIB and EIF reinforced their cooperation by setting up the 
three initiatives JASPERS, JEREMIE and JESSICA to help with the implementation 
of individual projects under the 2007-2013 programming period. 

2008  was  the  first  full  year  of  operation  of  JASPERS  (Joint  Assistance  to  Support 
Projects  in  European  Regions).  At  the  end  of  the  year,  JASPERS  had  an  active 
portfolio of 280 assignments and had completed 82 assignments in 2008 compared to 
22 in 2007.  

The  new  JEREMIE  initiative  (Joint  European  Resources  for  Micro-to-Medium 
Enterprises) to improve access to finance for SMEs in the regions had a successful 

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first  year  in  2008  being  used  by  regions,  managing  authorities,  as  well  as  in  the 
business and banking sectors.  

The  JESSICA  initiative  (Joint  European  Support  for  Sustainable  Investment  in 
City Areas), focusing on sustainable investment, growth and jobs in Europe’s urban 
areas, introduces  a  cultural  shift  in  how  Structural  Funds  support  is  delivered, 
encouraging  recyclable  forms  of  assistance  and  moving  away  from  an  exclusive 
reliance on grants. 

4. 

EVALUATIONS 

In  2008, 
decision-making under the Cohesion Policy.  

the  Commission  continued 

to  carry  out  evaluations 

to  support 

An  analysis  of  ERDF  co-financed  innovation  projects,  putting  emphasis  on  their 
success factors and the common constraints and obstacles, was completed. The study 
develops  a  more  in-depth  knowledge  of  the  mechanisms  supporting  innovation  on 
the  basis  of  the  evidence  from  selected  ERDF  co-financed  projects  from  different 
regions.  Equally,  effort  is  devoted  to  designing  and  testing  practical  methods  and 
tools, which can be used to undertake project analyses. 

The ex post evaluation of Objectives 1 and 2 for the 2000-2006 period, i.e. a total of 
twelve  interlinked  and  phased  "work packages"  to  explore  different  aspects  of  the 
effectiveness and efficiency of the Cohesion Policy, continued to be carried out. In 
respect  of the ex  post evaluation of  the ESF 2000-2006  programmes,  a preparatory 
study  geared  to  analyse  the  relevance  and  reliability  of  available  information  was 
finalised in the course of 2008. Building on this study, the main ex post evaluation 
and two ex post thematic evaluations were launched at the end of 2008. 

Concerning the FIFG, the outsourcing of the ex post evaluations was launched at the 
end of 2008. 

Furthermore,  the  ex  post  evaluations  for  Community  initiatives  URBAN  and 
INTERREG  were  launched  in  2008.  The  ex  post  evaluation  of  the  EQUAL 
Community Initiative was launched in early 2009. 

Another important task of the Commission is to provide methodological guidance to 
the Member States and organise exchange of experience in the field of evaluation. In 
this respect, the online and interactive resource for the evaluation of socio-economic 
development EVALSED is currently being updated. 

5. 

CONTROLS 

5.1. 

ERDF 

For  the  1994-1999  period,  closure  audits  were  carried  out  on  a  sample  of  57 
programmes  (including  one  INTERREG  programme,  and  2  Objective  2  1994-1996 
programmes)  covering  all  EU 15.  By  the  end  of  2008,  40  out  of  the  55  procedures 
had  been  completed  and  financial  corrections  of  an  amount  of  approximately  EUR 

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258 million have been applied. For the remaining 17 cases, a decision will be taken 
in 2009. 

For the programmes adopted under the 2000-2006 period, in total 207 audit missions 
(excluding  INTERREG)  had  been  carried  out  examining  the  functioning  of  key 
elements  of  management  and  control  systems  in  Member  States,  out  of  which  22 
were  performed  in  2008.  Additionally,  21  missions  for  the  reviews  of  winding-up 
bodies  were  performed  in  relation  to  ERDF  in  order  to  verify  the  preparation  of 
Member  States  for  closure  and  to  identify  and  mitigate  related  risks.  As  regards 
INTERREG,  following  the  reservations  made  in  AAR  2007  on  51  INTERREG  III 
programmes,  an  intensive  audit  plan  has  been  carried  out,  raising  the  number  of 
audited  programmes  from  eight  at  the  end  of  2007  to  23  at  the  end  of  2008, 
corresponding to 54.1% coverage of the programmes' amount. 

5.2. 

ESF 

For  the  1994-1999  period,  the  closure  audits  were  finalised  with  the  audit  of  three 
projects in Germany (Brandenburg) and with the audit of the closure certificates in 
Belgium (Flanders). As a result, the objectives – coverage of all Member States and a 
reasonable  amount  of  programmes  -  concerning  the  closure  audits  1994-1999  were 
accomplished.  

For the 2000-2006 period, 113 missions were organised involving the audit of (a) the 
audit of uncovered (in part or in full) operational programmes identified in the risk 
analysis  for  2007,  (b)  follow-up  missions  on  the  implementation  of  action  plans 
agreed  in  the  framework  of  suspension  procedures  or,  on  the  results  of  audits 
undertaken  by  the  Court  of  Auditors  of  the  European  Union  and  (c)  the  audit  of  a 
sample of operations. In addition, five missions in preparation of the closure 2000-
2006,  76  audits  on  substantive  testing  of  operations  (sample  checks  including  desk 
review and visits on the spot) and 18 follow-up missions were carried out in 2008.  

5.3. 

EAGGF 

As  regards  the  1994-1999  period,  the  ex-post  audit  programme  was  already 
completed  in  2006.  A  number  of  financial  correction  procedures  are  under  way. 
Three  financial  correction  decisions  covering  fifteen  programmes  were  adopted  by 
the Commission during the year. 

For  the  period  2000-2006  (EU-25),  26  programmes  covering  45.3%  of  planned 
expenditure were audited during 2008. Since the year 2000, a total of 92 programmes 
out of the 152 approved EAGGF-Guidance programmes had been subject to an audit. 
The  programmes  audited  cover  94.3%  of  the  planned  EAGGF  contribution  and 
60.6% of the number of programmes. Three financial correction decisions covering 
three programmes were adopted by the Commission during the year representing an 
amount of € 18.8 million in recoveries. 

5.4. 

FIFG 

As  regards  the  1994-1999  period,  by  the  end  of  2008,  fifty  out  of  fifty-two 
programmes  were  closed,  two  are  in  the  process  of  being  closed  by  a  financial 

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correction decision (adopted beginning 2009). The percentage of programmes closed, 
or in the process of being closed, represents 94.2% of the total. 

As  far  as  the  2000-2006  period  is  concerned,  the  eight  FIFG  audits  carried  out  in 
2008, covering nine operational programmes, focused on the verification and follow-
up  of  the  effective  functioning  of  management  and  control  systems  and  the 
preparation for the closure of the programmes. DG MARE has carried out a total of 
44  audit  missions  covering  all  its  18  mono-fund  programmes  as  well  as  14  multi-
fund programmes representing a contribution of EUR 286.94 million (6.92% of total 
2000-2006  initial  budget).  In  total,  DG  MARE  systems  audits  have  covered 
programmes representing 94% of total FIFG initial contribution for 2000-2006. The 
financial corrections applied in 2008 represented € 1.65 million in recoveries. 

Lessons learnt from controls 

The risk remains that some management and control systems for the Structural Funds 
programmes  are  still  affected  by  material  weaknesses  in  certain  Member States. 
However, where identified deficiencies in the systems remain, the Commission is in 
the  process  of  concluding  the  follow-up  of  remedial  action  plans  or  has  launched 
suspension and/or financial correction procedures which will be finalised in 2009. 

5.5. 

OLAF 

During  2008,  OLAF  undertook  41  missions  in  the  Member  States  relating  to 
measures co-financed by the Structural Funds. Some 23 of these missions concerned 
on-the-spot  checks3  (during  which  31  on  the  spot  controls  were  carried  out  on 
economic  operators)  and  18  other  types  of  missions  were  carried  out  to  gather 
information or to assist either national administrations or judicial authorities.  

In  2008,  Members  States  communicated  to  the  Commission,  in  accordance  with 
Regulation  (EC)  N°  1681/944  and  Regulation  (EC)  N°  1828/20065,  some  3  8696 
notifications  of  irregularities  involving  EUR  528  647  682  affecting  co-financed 
measures  of  the  1994-99,  2000-2006  and  2007-2013  programming  periods.  62 
notifications  concern  the  1994-99  programming  period  with  a  financial  impact  of 
approximately EUR 11 million. Member States have informed the Commission that 
administrative and/or judicial procedures have been concluded at national level for a 
number of cases and an amount of EUR 109 811 425 has been recovered. 

6. 

COMMITTEES ASSISTING THE COMMISSION 

6.1. 

Coordination Committee of the Funds (COCOF) 

In  2008,  the  main  topics  discussed  by  Coordination  Committee  of  the  Funds 
(COCOF)  were  the  financing  of  the  programme  for  the  use  of  operational  and 

3 
4 
5 
6 

Regulation (EC) N° 2185/1996, OJ L 292, 15.10.1996, p. 2 
OJ L 178, 12.07.1994, p.43 
OJ L 371, 27.12.2006, p,1 
2007:  number  of  communicated  cases  3  671;  overall  amount  related  to  the  communications  € 
694 362 858.  

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non-operational  technical  assistance,  the  closure  of  INTERREG  III  programmes 
2000-2006,  financial  engineering,  major  projects,  revenue-generating  projects, 
eligibility  of  energy  efficiency  and  renewable  energies  interventions,  and  good 
practices in relation to management verifications to be carried out by Member States. 

6.2. 

ESF Committee 

In  2008,  the  ESF  Committee  (pursuant  to  Article  147  of  the  Treaty)  discussed  the 
Lisbon package, the renewed social agenda and adopted an opinion on the EU budget 
review  with  a  particular  focus  on  the  aim  to  achieve  full  employment,  quality  of 
work and social cohesion and on the development of the European labour market and 
human  capital  formation.  The  ESF  Committee  was  also  consulted  on  the  "Green 
Paper  on  Territorial  Cohesion"  and  on  the  Commission's  proposal  which  aimed  at 
maximising the contribution of Structural Funds, in particular the ESF, to address the 
crisis  in  the  framework  of  the  European  Economic  Recovery  Plan.  The  ESF 
Technical Working Group pursued its programme of mutual learning concerning the 
use  of  public  tendering  for  ESF  operations,  the  closure  of  2000-2006  programmes, 
and examples of ESF human resources development programmes. 

6.3. 

Committee on Agricultural Structures and Rural Development (STAR) 

The  STAR  Committee  met  seven  times  in  2008  and  gave  a  favourable  opinion  on 
three  amendments  of  the  SAPARD  rural  development  programmes  for  Bulgaria 
(2 amendments)  and  Croatia  under  Article  4  of  Council  Regulation  (EC) 
No 1268/1999. 

6.4. 

Committee on Structures for Fisheries and Aquaculture (CSFA) 

In 2008, the Committee was consulted on a number of issues, including the European 
Transparency Initiative and the guidelines for determining financial corrections to be 
made to  expenditure co-financed  by the Structural Funds or the Cohesion Fund for 
non-compliance with the rules on public procurement. 

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