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Document 52012SC0351
COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT Accompanying the document Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the Fund for European Aid to the Most Deprived
COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT Accompanying the document Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the Fund for European Aid to the Most Deprived
COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT Accompanying the document Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the Fund for European Aid to the Most Deprived
/* SWD/2012/0351 final */
COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT Accompanying the document Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the Fund for European Aid to the Most Deprived /* SWD/2012/0351 final */
1. Introduction
and Procedural issues In its 2020 Strategy, the European Union has
set the objective to reduce by at least 20 million the number of people at risk
of poverty or social exclusion. Yet poverty and social exclusion are rising in
many Member States, raising concerns over the social consequences for
individuals and society at large. In contrast to increasing needs, the
willingness and ability of Member States to support those who are at the
margins of our society have in many cases decreased. Often the European level
is argued to be (co-) responsible for these developments. The EU's Food Distribution programme for the
Most Deprived people (MDP) was created in 1987 to make a meaningful use of the
then agricultural surpluses. With the expected absence of intervention stocks
or at least high unpredictability over the period 2011-2020, the MDP has lost
the original rationale and will be discontinued at the end of 2013. However, there continues to be a need for
material assistance to the most deprived people. In its proposal for the next
multiannual financial framework the Commission has reflected this and reserved
a budget of 2.5 billion Euro. The main Union's instrument to support
employability, fight poverty and promote inclusion is and will remain the
European Social Fund (ESF). Legal analysis showed that a separate instrument is
necessary as the ESF legal basis (Art 162 TFEU) requires a sufficiently close
link of the supported activities with employment or mobility. This impact
assessment examines the range of interventions the Fund for European Aid to the
Most Deprived (FEAD) could support. 2. Consultations
Discussions in Council, Parliament and with
civil society and local authorities on the current aid for most deprived under
the MDP programme provide meaningful insights and ideas for the future. The proposed significant cut of the support
provided under the MDP scheme in 2012 following the General Court ruling of 13
April 2011 led to a large number of negative reactions. Many stressed the importance
of this support and pleaded for a continuation of the scheme at a time that the
needs were increasing. Large charities and civil society
organisations representing food banks, as well as organisations working with
children and homeless people have expressed repeatedly the need for support to
be provided beyond 2013 and have contacted Member States representatives as
well as the President of the European Council. Local authorities also support
the continuation. Two meetings with umbrella associations
representing not only the beneficiaries but also the actual end-beneficiaries
were held in order to discuss the issues. In general the possible broadening of
the scope of the instrument beyond food aid, the fact of placing people at the
centre of the instrument were welcomed but the associations regretted the reduced
budget. Member States views about such an
instrument are divided: seven Member States argue that food support is social policy and a national competence. Others argue
strongly in support of the scheme on social and political grounds. Thirteen
Member States issued a statement in December 2011, in which they requested the
continuation of the MDP following 2013. The European Parliament has
repeatedly and across all political groups expressed strong support for the
continuation of the programme. In December 2011, 11 umbrella associations wrote
to the Commissioner and the Director General for Employment, Social Affairs and
Inclusion asking for progress to be made towards an EU Homelessness Strategy.
In their 2012 National Reform Programmes at least half of the Member States
have referred to homelessness as a priority issue of their social inclusion
policies. In addition, the European Parliament called for an EU strategy on
homelessness - first in a Written Declaration (2010) and then in a resolution
(2011). The Compact for Growth and Jobs adopted by
the European Council on 29 June 2012 notes that "in the implementation of
the country-specific recommendations, Member States will put particular emphasis
on … tackling unemployment and addressing the social consequences of the crisis
effectively […and] developing and implementing effective policies to combat
poverty and support vulnerable groups". 3. Problem
definition While the proposed instrument is a new one,
it is relevant to look at the still existing MDP programme which is the only
European Union programme currently reaching directly the most deprived persons
in the EU. The MDP has never sought to resolve food
poverty. Yet, in many cases the MDP represents the main source of food aid.
During the discussions with the umbrella associations, all insisted that the
predictability of the European support via the MDP was an essential element for
their operations. A termination of the MDP without substitution threatens this
acquis and could be perceived as a demonstration of the lack of interest of the
European Union in pressing social questions. There is a considerable leverage effect as
the charitable organisations involved provide the bulk of the means for running
the food aid distribution and parts of the food aid itself. The ratio of total
resources mobilised to MDP inputs is around 3. There is uncertainty as to the exact reach
and impact of the programme. However, the existing open approach to target group
definition is found adequate with beneficiaries. In addition, detailed criteria
would impose heavier administrative burdens and increase the cost of assistance
as such criteria must be checked. Eight per cent
of all European citizens or about 40 million live in conditions of severe
material deprivation and cannot afford a number of necessities considered
essential in Europe to live a decent life. Poverty and
social exclusion are not uniform across the EU. In general, problems are more
acute in eastern and southern Member States. Besides aggravating the pre-existing levels
of poverty and social exclusion, the economic crisis has also reduced the
ability of a number of Member States to sustain social expenditure and
investment at levels sufficient to reverse this negative trend. In the period
2009-2012, social protection benefits in-kind are expected to fall relative to
GDP in most Member States. Cash social protection benefits should decrease
relative to GDP in nearly half of the Member States. The inability to access appropriate quantities
and quality of food, concerned 8.7% of the European population in 2010. The
number of persons experiencing food deprivation declined steadily until 2009
when the trend inverted. Social support provided by Member States and regional and local authorities never or rarely focuses specifically on access to
food, except for subsidies for school canteens, or meals delivered at home to
the elderly or disabled. A particularly severe form of material
deprivation is homelessness. The extent of homelessness is however
difficult to quantify and data should be improved. Nevertheless estimations
indicate that there lived 4.1 million people homeless in Europe in 2009/2010.
Homelessness is increasing. Even more worryingly, a new profile of homeless
people is emerging which consists of families with children, young people and
people with a migrant background. While there are variations in the roles of
NGOs and the state as providers of services for homeless persons in Europe, the predominant model is that local authorities have the main responsibility for
enabling and steering such services and NGOs are the main service providers,
financed to a large extent by municipalities. Focusing on developments across Member
States the risk of poverty or social exclusion for different age groups
indicates that the crisis has often over proportionally hit children and young
adults. 5.9 % of households in the EU cannot afford new clothes for their
children and 4.5% not even two pairs of properly fitting shoes (including a
pair of all-weather shoes). This corresponds to approximately 6 million
children. Children suffering from material deprivation
are less likely than their better-off peers to do well in school, enjoy good
health and realise their full potential as adult. NGOs and civil society organisations
provide a variety of support to children also going beyond the provision of
food adapted to children's specific needs and health awareness. The support is
– for instance – related to clothing, recreational and leisure activities
(which remain a challenge for many disadvantaged children and are essential to
their development) or parenting support (e.g. awareness raising, advice,
sometimes combined with play activities involving children). EU action is
justified on the grounds of Article 174 (TFEU) which provides for the Union to "promote its overall harmonious development" and on article 175 (TFEU)
which makes provisions for specific actions outside the Structural Funds. EU-level action is necessary given the
level and nature of poverty and social exclusion in the Union, further
aggravated by the economic crisis, and uncertainty about the ability of all
Member States to sustain social expenditure and investment at levels sufficient
to ensure that social cohesion does not deteriorate further and that the
objectives and targets of the Europe 2020 strategy are achieved. 4. Objectives The general
objective of the Fund for European Aid to the Most Deprived (FEAD) is to
contribute to the achievement of the poverty reduction target of the Europe
2020 strategy thereby increasing social cohesion in the European Union. The specific objectives are: to
alleviate the worst forms of poverty in the European Union and to help to
coordinate efforts, to develop and introduce instruments to promote social
inclusion of the most deprived persons. Because the instrument is to be implemented
in shared management the identification of operational objectives would ideally
take into account the ex-ante evaluations of the individual operational
programmes. These are yet to be conducted. At the European level the
operational objectives, for which the monitoring system will need to provide
consistent data on the European level are to: 1. Assist needy people with
basic goods; 2. To have a multiplier
effect of at least 2. The multiplier effect is estimated as the ratio of total
resources mobilised to the EU resources provided. 5. Policy
options Common to all options considered is that
implementation will be under shared management through operational programmes. These
are proposed by the Member States, decided on by the Commission and last for
seven years. The Commission plays an information brokering and supervisory role.
Actual implementation is done by Managing Authorities. Depending on the
programmes, the Managing Authorities either organise a central purchase of the
material assistance goods to be distributed or leave this procurement to the
beneficiaries themselves. The options considered do not differ in terms of the
allocation of resources to the Member States. The main issue concerns the scope of the
actions of the new instrument. The options range from essentially a successor
instrument to the current MDP dispensing Food Aid (option 1) to a
more fundamental rethink. Under the Food Assistance (option 2),
the programme could finance a number of measures or services directly related
to the delivery of food aid. With a broad scope (option 3), food
aid would not anymore be the only element but other forms of material
assistance and corresponding accompanying measures would be possible. These
would be related to homelessness and child poverty, two areas which play a key
role for social inclusion and show a clear worsening trend as a result of the
crisis. These areas are so far not taken up by other community instruments,
such as the ESF. Accompanying measures directly related to the material support
provided would further strengthen integrated approaches to poverty alleviation
and the fight against social exclusion in line with the European platform
against poverty and social exclusion. Making a meaningful use of agricultural
surpluses was at the core of the MDP. The use of intervention stocks is
discarded from further analysis on the technical grounds that (i) using
intervention stocks reduces budgetary transparency and encourages
to act upon expectations about the future development of prices for these
agricultural products in a programme aiming at providing support to the most
deprived people within the EU; (ii) a regulation which foresees the use of
intervention stocks is necessarily more complex; and (iii) the
forecasts are that the opportunity will not arise anyway due to
the expected absence of intervention stocks (on balance) in the future.
Nevertheless, it may be justified to foresee an optional use. The impacts of the different options are
presented and compared in the table below. Thereby the operational objective to
assist needy people with basic goods is directly reflected in the number of
people supported and whether the most urgent needs are actually addressed. The
operational objective of a multiplier of at least 2 has been translated into
the questions whether the options manage to mobilise the resources and whether
overall administrative requirements are reasonable. The effects on social inclusion and on
employment and the labour market refer very much to the general objective. It
is considered as too ambitious though to claim a strong direct or even
measurable link between the instrument and these impacts. Table 1. Expected impacts.
|| Option 0 – No funding || Option 1 – Food aid only (baseline) || Option 2 – Food assistance || Option 3 – Broad scope Number of people supported || - No programme – no people supported || 0 Direct effect estimated at 2.1 million per year || - Direct effect estimated at 1.96 million per year. Slightly less than the baseline as some of the resources available are spent on accompanying measures || 0 Direct effect estimated at 2.13 million per year Reaching the most deprived (having the highest added value) || - || 0 || 0 || + The greater flexibility offered should allow a targeting better matched to the needs in each MS/ region Effect on social inclusion || - || 0 One problem of serious deprivation (lack of food) is addressed, no guarantee that this is the most urgent need || + Same target group, but more effective offer || ++ The better targeting on the most urgent needs should increase the social inclusion effects Employment and labour market || ?? The employment and labour market effect of option 0 depends on the use of the money. In case the money foreseen for this scheme would go to the ESF there would possibly be a neutral or positive employment and labour market impact || 0 || + Combining food-aid with other activation measures following a chain of support might lead more efficiently to employment || + As compared to option 2 some of the participants may be even further removed from the labour market (f.i. children). However, this could be offset by the greater flexibility to address local situations. Overall social impact || ? depends on how the resources would be allocated to other programmes but probably overall negative in comparison with the baseline || 0 || + || ++ Mobilisation of resources || - With the discontinuation of the programme voluntary contributions would become more difficult || 0 || + || ++ Administrative complexity and transparency || + No programme – no administration (not taking into account that without the programme these people still might need support which will be more difficult to organise || 0 || - As option 2 corresponds to a broader scope they represent increasing levels of complexity for management. Potential overlaps with other schemes notably the ESF also increase || -- Same consideration as for option 2 but with possibly greater complexity as the scope of actions is even broader, at least if a programme chooses to work on more than one domain only. Overall economic impact || ? Very much depending on the question how these people will be supported otherwise. || 0 || + || ++ Environmental impacts || - || 0 || + || + Legend:
baseline 0; - worse than baseline; + better than baseline; -- worse than -; ++
better than + On the basis of the experience with the
existing support programme one can forecast that this programme would allow to
help annually around 2 million people depending on the options considered. This
corresponds to approximately 5% of the severely materially deprived population.
However the real coverage is likely to be at least twice as big as this
estimate does not take into account the mobilisation of additional resources from
national and private sources. These often more than double the total resources
available. Moreover, the Severely Materially Deprived Persons (SMDP) can only
be seen as a very rough proxy for the target population. It is used only in the
absence of any better one. Only a fraction really qualifies for assistance
under any of the options considered programme. The social impact of the FEAD can be expected
to go beyond. By providing a platform around which practitioners will be able
to exchange information and experiences, it will bring significant benefits for
many stakeholders in terms of processes. The evidence-based and mid- to
long-term oriented implementation of the FEAD by means of operational
programmes will also encourage a dialogue between various stakeholder groups
and support a strategic approach in the future. Improvements of the delivery
mechanisms (notably simplification and reductions of the administrative burden)
should ensure the continued relevance of process effects. The FEAD will be an instrument
to facilitate a practical dialogue between European priorities and social
cohesion policies. The environmental impacts of the FEAD are
essentially linked to distribution of the goods and the reduction of waste.
Figures on carbon saving point to an effect in the range of 0.5 to 1.0 tons CO2
reduction per ton of food. Overall it seems possible to conclude that food aid has
a positive environmental impact compared to no food aid. The options 1 (food
aid only) to 3 (broad scope) correspond to decreasing volumes of food aid and
therefore to decreasing levels of carbon saving (from 573 thousand to 400
thousand tons). Making actions against food waste and encouraging recycling
eligible under the instrument in the options 2 and 3 may compensate in part or in
total this effect. While limited, the carbon savings are not negligible. Option 3 is the preferred option on the
grounds that it will allow the Member States to better target their
interventions to their needs. Also the accompanying measures should ensure a
greater sustainability of the results obtained. 6. Monitoring
and evaluation The programme will be implemented under
shared management. Exact targeting and the link with existing social support
instruments will vary strongly between Member States. Furthermore the
institutions actually receiving support rely to a large extent on volunteer
work and donations. Therefore putting heavy reporting obligations on such
organisations should be avoided as much as possible. Still these organisations
will need to inform not only the Commission about their work but also other
donors and the volunteers so to keep up their motivation. While identifying a
limited number of major lines of activity it should be possible to report for
each of these lines by a few common input and output indicators on an annual
basis. Such a basic annual reporting will be
accompanied by structured surveys at least twice during the implementation
period. These surveys will aim at: 1. providing some insights on
the structure of the client population; 2. Assessing the importance
of the in-kind contributions other than goods; 3. Collecting data on the
immediate impacts of the aid provided on the persons reached. These surveys will form the basis for the
evaluation of the effectiveness, efficiency and impact of the operational
programmes.