Sharing INTERREG experiences
Sharing INTERREG experiences
This FAQ is being developed by INTERACT Point Tool Box and will be updated regularly.
Natura 2000 is a European Union network of sites designated by Member States under the Birds Directive (79/409/EEC) and under the Habitats directive (92/43/EEC). Covering 17% of EU territory, the Natura 2000 Network currently comprises more than 18,000 sites.
Even if the Natura 2000 network is mainly co-financed through the Commission's LIFE Nature Programme, other funding is possible, such as INTERREG. Within the framework of INTERREG, Natura 2000 must be taken into account during the preparation of the Programmes as well as during their implementation.
During the elaboration of the Priorities and Measures of the programmes, consideration must be given to the "Special Protection Areas" as well as the "Special Areas of Conservation", in order to prevent any conflicts from arising during the selection and implementation of projects.
Source: INTERACT Point Tool Box
All Community Initiative programmes are required to fulfil the obligations for evaluation as set out in the Structural Funds regulations. The obligation of carrying out evaluations is laid down in Council Regulation (EC) No 1260/1999 (Article 40) of 21 June 1999 where ex-ante, mid-term, and ex-post evaluation are compulsory.
General methodological advice on ex ante evaluation and on indicators for monitoring and evaluation was prepared by the services of the European Commission for all types of programmes in the new programming period 2000-2006 (See Methodological Paper No 7 on Ex Ante Evaluation and Indicators For INTERREG (Strand A and B))
According to Methodological Paper No 7, Evaluation is conceived as a cyclical process corresponding to the life-cycle of a programme. Therefore, the different phases of evaluation - ex ante, mid-term, and ex post - have to be taken into consideration.
As far as the ex-ante evaluation is concerned:
From Council Regulation (EC) No 1260/1999 (Article 41) of 21 June 1999:
1. The purpose of ex-ante evaluation shall be to provide a basis for preparing the development plans, assistance and programme complement of which it shall form part.
Ex-ante evaluation shall be the responsibility of the authorities responsible for preparing the plans, assistance and programme complement.
2. For the preparation of plans and assistance ex-ante evaluation shall involve an analysis of the strengths, weaknesses and potential of the Member State, region or sector concerned. In the light of the criteria listed in Council Regulation (EC) No 1260/1999 (Article 40) of 21 June 1999, it shall assess the consistency of the strategy and targets selected with the specific features of the regions or areas concerned, including demographic trends, and the expected impact of the planned priorities for action, quantifying their specific targets in relation to the starting situation, where they lend themselves thereto.
The ex-ante evaluation shall take into account, amongst other things, the situation in terms of competitiveness and innovation, small and medium-sized enterprises, employment and the labour market having regard to the European employment strategy, the environment and equality between men and women, and it shall include in particular:
The ex-ante evaluation shall verify the relevance of the proposed implementing and monitoring arrangements, consistency with Community policies and how far the indicative guidance referred to in Council Regulation (EC) No 1260/1999 Article 10(3) of 21 June 1999 has been taken into account.
Source: INTERACT Point Tool Box
All Community Initiative programmes are required to fulfil the obligations for evaluation as set out in the Structural Funds regulations. The obligation of carrying out evaluations is laid down in Council Regulation (EC) No 1260/1999 (Article 40) of 21 June 1999 where ex-ante, mid-term, and ex-post evaluation are compulsory.
1. [The] Mid-term evaluation shall examine, in the light of the ex-ante evaluation, the initial results of the assistance, their relevance and the extent to which the targets have been attained. It shall also assess the use made of financial resources and the operation of monitoring and implementation.
2. [The] Mid-term evaluation shall be carried out under the responsibility of the Managing Authority, in co-operation with the Commission and the Member State. It shall cover each Community support framework and each assistance. It shall be carried out by an independent assessor, be submitted to the Monitoring Committee for the Community support framework or assistance concerned in accordance with Article 35(3) of Council Regulation (EC) No 1260/1999 of 21 June 1999, and then sent to the Commission, as a general rule three years after adoption of the Community support framework or assistance, and no later than 31 December 2003, with a view to the revision referred to in the above-mentioned regulation (Article 14.2).
3. The Commission shall examine the relevance and quality of the evaluation on the basis of criteria defined beforehand by the Commission and the Member State in partnership, with a view to reviewing the assistance and allocating the reserve referred to in Article 44 of Council Regulation (EC) No 1260/1999.
4. As a continuation of mid-term evaluation, it shall be updated for each Community support framework and assistance and completed no later than 31 December 2005 in order to prepare for subsequent assistance operations.
Source: Council Regulation (EC) No 1260/1999 of 21 June 1999 - Article 43
All Community Initiative programmes are required to fulfil the obligations for evaluation as set out in the Structural Funds regulations. The obligation of carrying out evaluations is laid down in Council Regulation (EC) No 1260/1999 (Article 40) where ex-ante, mid-term, and ex-post evaluation are compulsory.
1. On the basis of the evaluation results already available, ex-post evaluation shall cover the utilization of resources and the effectiveness and efficiency of the assistance and its impact and shall draw conclusions regarding policy on economic and social cohesion. It shall cover the factors contributing to the success or failure of implementation and the achievements and results, including their sustainability.
2. Ex-post evaluation shall be the responsibility of the Commission, in collaboration with the Member State and the Managing Authority. It shall cover the assistance and be carried out by independent assessors. It shall be completed not later than three years after the end of the programming period.
Source: Council Regulation (EC) No 1260/1999 of 21 June 1999 - Article 43
According to Article 34 of Council Regulation (EC) No 1260/1999 of 21 June 1999, the Managing Authority will be responsible for submitting the annual implementation report to the European Commission. This report will be sent within six months of the end of each year.
The annual report will include the same information as required for the final report, in particular:
(a) any change in general conditions which is of relevance to the implementation of the assistance, in particular the main socio-economic trends, changes in national, regional or sector policies or in the frame of reference referred to in Article 9(c) of the above-mentioned regulation and, where applicable, their implications for the mutual consistency of assistance from the different Funds and consistency between Fund assistance and that from other financial instruments;
(b) the progress in the implementation of priorities and measures for each of the Funds in relation to their specific targets, with a quantification, wherever and whenever they lend themselves to quantification, of the physical indicators and indicators of results and of impact referred to in the Article 36 of the Regulation at the appropriate level (priority or measure);
(c) the financial implementation of the assistance, summarising for each measure the total expenditure actually paid out by the paying authority and a record of the total payments received from the Commission and quantifying the financial indicators referred to in Article 36(2)(c); financial implementation in the areas receiving transitional support shall be presented separately in respect of each priority; financial implementation of the EAGGF Guarantee Section for the measures referred to in Article 33 of Commission Regulation (EC) No 1257/1999 of 17 May 1999 shall be presented at the level of the total amount of the financial implementation;
(d) the steps taken by the Managing Authority and the Monitoring Committee to ensure the quality and effectiveness of implementation, in particular:
(e) the steps taken to ensure compatibility with Community policies as stipulated in Article 12 of Council Regulation (EC) No 1260/1999 and to ensure co-ordination of all the Community structural assistance referred to in Article 17(1) and the second subparagraph of Article 19(2);
(f) a separate section, where appropriate, on the progress and financing of major projects and global grants.
Source: INTERACT Point Tool Box
In order to receive the payment of the final balance, the final report on implementation will have to be submitted to the Commission at the latest 6 months after the final date of eligibility of the expenditure and approved by the Commission (Article 32.4.b of Council Regulation (EC) No 1260/1999 of 21 June 1999).
For multi annual assistance, the Managing Authority shall, within six months of the end of each full calendar year of implementation, submit to the Commission an annual implementation report, while for all assistance to be implemented over a period of less than two years, the final report will have to be submitted instead (Art. 37.1).
According to Article 37.2, the final report, as well as the annual report, must include the following information:
(a) any change in general conditions which is of relevance to the implementation of the assistance, in particular the main socio-economic trends, changes in national, regional or sector policies or in the frame of reference referred to in Article 9 (c) of Council Regulation (EC) No 1260/1999 and, where applicable, their implications for the mutual consistency of assistance from the different Funds and consistency between Fund assistance and that from other financial instruments;
(b) the progress in the implementation of priorities and measures for each of the Funds in relation to their specific targets, with a quantification, wherever and whenever they lend themselves to quantification, of the physical indicators and indicators of results and of impact referred to in Article 36 of Council Regulation (EC) No 1260/1999 at the appropriate level (priority or measure);
(c) the financial implementation of the assistance, summarizing for each measure the total expenditure actually paid out by the paying authority and a record of the total payments received from the Commission and quantifying the financial indicators referred to in Article 36(2)(c); financial implementation in the areas receiving transitional support shall be presented separately in respect of each priority; financial implementation of the EAGGF Guarantee Section for the measures referred to in Article 33 of Commission Regulation (EC) No 1257/1999 of 17 May 1999 shall be presented at the level of the total amount of the financial implementation;
(d) the steps taken by the Managing Authority and the Monitoring Committee to ensure the quality and effectiveness of implementation, in particular:
(e) the steps taken to ensure compatibility with Community policies as stipulated in Article 12 of Council Regulation (EC) No 1260/1999 and to ensure coordination of all the Community structural assistance referred to in Article 17(1) of Council Regulation (EC) No 1260/1999 and the second subparagraph of Article 19(2);
(f) a separate section, where appropriate, on the progress and financing of major projects and global grants.
Source: Council Regulation (EC) No 1260/1999 of 21 June 1999 (Article 43)
Participants in INTERREG projects may take either the status of Lead Partner (according to the Lead Partner principle) or of project partners. Each status has different roles and responsibilities. In addition, the functions to perform and the degree of involvement may vary from project to project. However, the Lead Partner is the participant responsible for the whole implementation of the operation.
If the Lead Partner originates from a non-EU Member State, the responsibility for ERDF funds is delegated to a partner from a EU Member State (ERDF LP).
Source: INTERACT Point Tool Box
On 6 May 2003 the Commission adopted a new Recommendation - No 2003/361/EC - regarding its definition of SMEs; this will replace Recommendation No 96/280/EC as from 1 January 2005.
The category of micro, small and medium-sized enterprises (SMEs) is made up of enterprises which employ fewer than 250 persons [from 0 (self-employed) to 249] and which have an annual turnover not exceeding EUR 50 million, and/or an annual balance sheet total not exceeding EUR 43 million.
As regards the term "Enterprise", the Recommendation establishes the following definition (Article 1):
"An enterprise is considered to be any entity engaged in an economic activity, irrespective of its legal form. This includes, in particular, self-employed persons and family businesses engaged in craft or other activities, and partnerships or associations regularly engaged in an economic activity".
Please consult directly the Commission Recommendation No 2003/361 of 6 May 2003 for important aspects such as the following:
Sources: Commission Recommendation No 96/280 of 3 April 1996 and Commission Recommendation No 2003/361 of 6 May 2003
Public equivalent body, in the interpretation of the EU legislation on public procurement, means any legal body governed by public or private law
Source: INTERACT 2nd call for proposals
ERDF co-financing rates for operations are 75% of the eligible costs for partners in Objective 1 areas and 50% of the eligible costs for partners in other areas. For partners from outermost regions and being involved in operations financed by the some specific programmes, the ERDF co-financing rate is 85% of the eligible costs.
A peculiarity of INTERREG IIIC programmes is that regions having dual Objective status (partly Objective 1) involved in Regional Framework Operations must calculate an average co-financing rate varying between 50% and 75%, taking into account an estimated involvement of each region's institutions in the Regional Framework Operations sub-projects.
See also FAQs INTERREG IIIC, Financial section, Q2
Source: INTERACT Point Tool Box
There are different types of funding that must be differentiated:
1. Public Funding
2. Private Funding
INTERREG programmes are targeted mainly at public authorities and public equivalent bodies. Private partners can participate if they fulfil the conditions stipulated for each programme. Other private partners are not eligible to receive INTERREG funds. Nevertheless, some programmes allow private participation in projects but only with own funding. A third channel for getting private partners involved in projects is by sub-contracting them as consultants or external experts.
Source: INTERREG Baltic Sea Region, INTERREG IIIC.
INTERREG III is an initiative in the framework of the ERDF and therefore all general rules concerning eligibility of expenditure regarding the structural funds are applicable.
Costs for the preparation of project applications are usually not eligible. In some cases, expenditure incurred before project approval may be co-financed, but this will be specified in each grant decision, by the competent managing authorities.
EU funds may be required for small infrastructure investment or for equipment, relevant to the project's objectives. In any case, motorways, large road or other infrastructure investments will not be eligible.
For further insight into the types of expenditure which are eligible or not, the applicable Council Regulation on "Eligible expenditures" are Commission Regulation (EC) No 1265/2000 of 16 June 2000; Commission Regulation No 448/2004 of 2 March 2001, amending regulation No 1265/99, and withdrawing regulation No 1145/2003.
Source: INTERACT Point Tool Box
The de minimis rule was set out in Commission Regulation (EC) No 69/2001 of 12 January 2001, which states that if an enterprise receives public aid amounting to EUR 100 000 or less over a three-year period then it is within the ceiling established by the Regulation. It intends to minimize distortion of competition and to increase the role of competition policy as a means of developing greater territorial cohesion.
Article 92 (1) of the EC Treaty imposes a general ban, subject to certain exceptions, on "any aid granted by a Member State or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods ... in so far as it affects trade between Member States". Clearly, any financial assistance given by the State to one firm distorts or threatens to distort, to a greater or lesser extent, competition between that firm and its competitors which have received no such aid; but not all aid has an appreciable effect on trade and competition between Member States. This is particularly true where the amount of aid involved is small. And it is small amounts of aid which are usually - but not always - granted to small & medium enterprises (SMEs), mainly under schemes administered by local or regional authorities".
In 1992, in an effort to reduce the administrative burden on the Member States and on the Commission itself, and in order to simplify matters for SMEs, the Commission introduced what is known as the de minimis rule: this sets a threshold figure below which Article 92 does not apply.
The public assistance which is allowed up to the EUR 100 000 ceiling comprises all aid granted by national, regional or local authorities, regardless of whether the resources are provided from domestic sources or whether the measures are part financed by the Community from the Structural Funds, and more specifically the European Regional Development Fund (ERDF).
Source: Commission Regulation (EC) No 69/2001 of 12 January 2001
All interventions funded from the EU Structural Funds are subject to 5% controls of total eligible expenditure performed by national auditing institutions. It is a random selection based on a risk analysis and is carried out on a programme level. In case a project is selected for controls, the responsibility of the Lead Partner and the project partners is to cooperate with the auditing bodies and present all requested information.
Sources: Commission Regulation (EC) No.438/2001 of 2 March 2001 - Article 10 and INTERREG III B Baltic Sea Region
A representative sample is a project implemented under a programme, which could be said to be an illustration of the projects on that programme. The criteria for selecting the sample of operations to be controlled shall take into account:
Source: Commission Regulation (EC) No 438/2001 of 2 March 2001 - Article 10.3