Better return on investments

Making the reform of European financial regulation work more effectively for civil society

Euclid Network (EN) is leading developing solutions for the reform of European financial regulations to make them work more effectively for civil society.

EN is the European network of third sector leaders launched by the British, French and Swedish professional bodies in 2007 to promote leadership and innovation in civil society in Europe and beyond. It connects 300 members across Europe and the European neighbourhood, and is supported by UNDEF, EC, FCO, SIDA and works in partnerships with corporations such as Intesa Sanpaolo Bank Group.

Context

The European Commission (EC) has started the review of its financial regulations, which constrain 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, its financial procedures are the most expensive (administratively) and inaccessible (difficult to apply, manage and report) in the world, preventing the main bulk of organisations, especially at the grass roots, from applying.

DG Budget is running an internal consultation within the EC. No public consultation will be made. The process has been sped up and a first draft of the new FR will be ready by the end of September.

Project

Thanks to its contacts within the EC and specifically in DG Budget EN has been invited to provide inputs for the review to make the regulations more cost effective and civil society friendly.

We will soon launch an internal consultation to define the 10 main changes to be made in the new regulations. The changes must backed by case studies. Members and partners will provide inputs and the results of the consultation will be launch at EN's AGM in London on 18 September.

EN members from across Europe will encourage other national and European networks to take part in the consultation. We are planning to contact: BOND (The British network of development NGOs), ODI (the UK-based international development think tank), CONCORD (the European umbrella for development NGOs), Civic Forum, ECAS, SOLIDAR, the London School of Economics, CGDES and Ideell Arena (the Swedish national association for third sector organisation). Other non listed partners might contribute as well.

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

After September EN will raise this issue with governments and MEPs to ensure that the 10 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 10 recommendations will

· decrease the administrative costs of EU funding

· increase the accessibility and flexibility of funding

· save time for both applicants and EU officials

· incentivize social entrepreneurship and innovation

· promote transparency and accountability

· increase the reputation of the EU