Commission Report (2002): Poland

• Progress since the last Regular Report
• Overall assessment
• Conclusion

Chapter 21: Regional policy and co-ordination of structural instruments

Progress since the last Regular Report

Since the last Regular Report, important progress has been made in preparing for the implementation of structural policies.

Concerning territorial organisation, Poland adopted a government decree on the establishment of a provisional NUTS classification and this classification was agreed with the Commission in June 2002.

There has been one significant development since the last Regular Report regarding the legislative framework. This wasthe adoption in September 2002 of amendments to the Public Finance Act providing for sufficient flexibility and multi-annual programming.

With regard to institutional structures, Poland adopted a government decision in March 2002 which designated the management structures for the implementation of the Structural Funds and the Cohesion Fund. The Ministry of Economy has been designated as the managing authority for the future Community Support Framework and for the Cohesion Fund and is already fulfilling the role of inter-ministerial co-ordination. The Ministry of Finance has been designated as the future paying authority for all the Funds. The broad lines of implementation arrangements have been drawn up. All managing authorities, of future operating programmes have been designated. This also includes the Ministry of Labour and Social Policy as the Managing Authority for the use of the Human Resources Development Operational Programme and the Equal programme in the context of its overall responsibility for the use of the European Social Fund.

With regard to programming, Poland submitted the first draft of its National Development Plan 2004--2006 to the Commission in June 2002. When finalised, this plan will serve as the basis for the establishment of the Community Support Framework. Poland intends to implement six Sectoral Operational Programmes, one Integrated Regional Operational Programme and one Technical Assistance Operational programme. For the implementation of the Integrated Regional Operation programme, important roles will be played by the Marshalls' offices and the Voivods' offices at the regional level.

In order to ensure that the partnership principle is applied, an extensive consultation process regarding the National Development Plan was initiated in July 2002. The Monitoring Committee has not yet been set up.

With regard to monitoring and evaluation, a macro-economic impact assessment has taken place and work on an ex-ante evaluation, which started in the course of 2002 is ongoing. Some progress has been made on the development of an information technology monitoring system. Work is ongoing regarding the definition of indicators in the context of developing the Operational programmes.

With regard to financial management and control some limited progress has been made. Poland has moved forward with the legislative alignment of its Public Internal Financial Control (PIFC) systems, following the entry into force in January 2002 of the amendment to the public Finance Act, which provides a basis for PIFC in line with the acquis. With regard to administrative capacity in this field, no significant developments can be reported.

As regards statistics, the compilation of regional data for analysis, evaluation and monitoring is continuing.

Overall assessment

Poland has already organised its territory into units corresponding to the NUTS classification. It has made good progress with the adoption of the amendments to the Public Finance Act allowing for multi-annual budgeting as regards the legislative framework for the acquis covered by this chapter.

Poland has made important progress as regards the setting up of institutional structures. It has designated the bodies which are to be responsible for the implementation of the Structural and Cohesion Funds. However, the on-going detailed allocation of tasks has to be further developed. Steps must be taken to strengthen effective inter-ministerial co-ordination. Poland should decide as soon as possible on the detail of the implementation structures and will have to meet its detailed commitments to bring the administrative capacity of the Managing and Paying Authorities, intermediate bodies and other relevant bodies up to the level required.

Project selection and decision-making should be managed within a framework that ensures transparency, efficiency and reliability in the implementation of programmes. Poland should also continue to work towards developing the necessary structures and co-ordination mechanisms to manage financial assistance from the European Social Fund in the context of the European Employment Strategy and the inclusion process.

With regard to programming, the contents of the draft National Development Plan for 2004--2006 underlines that progress has been made. However, Poland still needs to further improve its programming capacity. To that end, there will need to be an effective inter-ministerial co-operation. Real partnership needs to be pursued, not just throughout the whole process of preparing the National Development Plan and Operational programmes, but subsequently as well. Further urgent and substantial progress must also be made with the technical preparation of projects eligible for Structural and Cohesion Funds assistance (project pipeline).

Work on ensuring compliance with the acquis requirements for monitoring and evaluation must continue. To ensure effective and efficient implementation of the Structural Funds programmes, it is crucial that an effective monitoring system should be up and running in good time. Notably the development of the Structural Funds overall IT system, under the lead of the Ministry of Finance and its interface with the ESF IT module, remains an important concern.

Poland is continuing its efforts in the field of financial management and control. It is preparing the specific procedures for financial control, auditing, certification of expenses and correction of irregularities specifically applicable to the Structural and Cohesion Funds. However, much more progress will be needed to implement the system of financial flows between the Paying Authority, Managing Authorities, Intermediate Bodies and final beneficiaries and putting in place the appropriate systems and procedures for financial management and control at all levels. In this context, considerable increases in adequately trained staff are required, notably within the Paying and Management authorities and Intermediate bodies to ensure their effective operation. Internal audit units have not yet been established in the ministries responsible for the implementation of the Funds and this requires attention. The central audit service within the Ministry of Finance has been set up but the training of internal auditors will have to be a priority. Common guidelines for the internal audit services still need to be drawn up.

Poland still needs to implement procedures for multi-annual planning of budgetary expenditure.

As far as statistics are concerned, more needs to be done to bring them up to the level required for programming, monitoring and evaluation, in particular as regards ex-ante evaluation.

Conclusion

In its 1997 Opinion, the Commission concluded that Poland was committed to establishing a regional development policy adapted to its regional disparities, and added that measures needed to be taken to establish and develop Poland's institutional structures in this field and to improve inter-ministerial co-ordination, and that its administrative capacity needed to be enhanced to implement various operational programmes efficiently and that, subject to these modifications, Poland should, in the medium term, be ready to apply the Community rules and channel funds from the EC structural policies.

Since the Opinion, Poland has made important progress in legislative terms, and, more especially over the last year, has made progress with developing the necessary administrative set up and capacity. A reasonable degree of legislative alignment has been achieved, although the current level of administrative capacity needs to be substantially improved.

Negotiations on this chapter have been provisionally closed. Poland has not requested any transitional arrangements in this area. Poland is generally meeting the commitments it has made in the accession negotiations in this domain.

In order to be ready for membership, Poland should focus further efforts on defining the detail of the implementation structures and on reinforcing the administrative capacity through sustained action on all levels in line with agreed timetables, strengthening inter-ministerial co-ordination and the partnership process, and further reinforcing systems and procedures for effective monitoring, financial management and control. Poland is committed to a close follow up of the operational programmes of the structural funds and implementation structures and has developed implementation and administrative capacity plans, including the increase of personnel in the managing and paying authorities, for that purpose. These plans should be implemented with due vigour.

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