I was the lead reporting member of the highly challenging and topical special report ‘Cross-border cooperation with EU neighbouring countries’ until the end of my European Court of Auditors mandate at the end of September 2022.
Its publication took place only now due to standard procedural scheduling.
Cross-border cooperation is a key element of the European neighbourhood policy, which covers 16 countries along the EU’s external border.
Until recently, it also remained one of the very few areas of cooperation between the EU and Russia.
We had conducted our audit at a time when the 2014-2020 programmes were approaching the end of their implementation. A period that obviously preceded Russia’s war on Ukraine.
For the 2014-2020 period, the European Commission set up 15 joint programmes with neighbouring countries (ENI CBI programmes) with a total contribution of almost €1 billion. These programmes are intended to benefit both the member states and the neighbouring countries with which they directly share a land or maritime border.
Our objective was to determine whether the programmes have been effective in enhancing territorial cooperation across the EU’s external borders.
To answer the main audit question, we examined:
Whether the programmes targeted clearly identified needs and priorities that were common to the regions along the EU’s external borders and complemented other EU-financed programmes;
Whether ENI CBC projects have been selected and implemented efficiently and effectively;
Whether the Commission and managing authorities made effective use of monitoring and evaluation mechanisms, and learned lessons with a view to strengthening the management of cross-border programmes proposed for the 2021-2027 financing period.
We found that the programmes targeted relevant needs, but their complementarity with other EU-funded programmes was insufficient and the involvement of EU delegations to neighbouring countries could be further improved.
With few exceptions, ENI CBC projects were selected and implemented efficiently and effectively, however we identified weaknesses in results monitoring and reporting.
The programmes have managed to achieve a balanced distribution of project participants from EU and neighbouring countries.
Cross-border programmes have contributed to building and maintaining trust between the EU and neighbouring countries and among neighbouring countries themselves- Leo Brincat
Safeguards are in place to mitigate the risk of fraud, however the programmes cannot effectively use a fraud reporting IT tool recommended by the Commission. The programmes for the financing period running till 2027 draw upon lessons learned but carry additional risks.
We concluded that ENI CBC programmes have provided relevant and valuable support to the regions on both sides of the EU’s external border; however, they suffered from significant delays to the start of their implementation.
Moreover, cross-border cooperation with neighbouring countries faces a challenging future: as part of a broader response to Russia’s invasion of Ukraine, the Commission has suspended cross-border programmes with Russia and Belarus. The invasion has also cast severe doubt on half of the programmes proposed for the 2021-2027 financing period.
In the south, the Mediterranean Sea Basin programme continues to offer a forum for dialogue and cooperation between the participating countries. However, the number of joint projects between Israeli and Arab participants remains low, even if the very existence of such joint projects can be considered a success in itself.
As a result of our audit, we recommend that the Commission should: improve coordination between programmes with a partial geographic overlap; enhance the involvement of EU delegations; adapt a fraud reporting IT tool; provide guidance on monitoring sustainability after project closure; consult all relevant services on large infrastructural projects; enhance the use of common indicators.
The selection process in place was largely transparent and designed to select the most suitable ENI CBC projects. The projects audited were on course to achieve their intended outputs but some had weaker cross-border impact.
There was limited information on overall results achieved at programmes level and on their sustainability despite monitoring of projects by managing authorities.
The next programmes draw upon lessons learned but face additional risks and the significant impact of political challenges.
Changes reflect lessons learned, but certain simplification measures result in decreased Commission supervision.
Political challenges and Russia’s invasion of Ukraine highlight the programmes’ importance but also their limits in improving cooperation between participating countries.
Coordination during project selection and implementation with existing programmes remained non-systematic.
We attached importance to the relevant EU delegations’ need to be closer involved in the selection process, for example as observers in an advisory capacity, and in project monitoring to leverage the political benefits of successful cross-border cooperation. In our view even the EEAS should be involved as observers in such a process.
COVID-19 travel restrictions hampered implementation even further.
Given the strategic importance of large infrastructural projects in bilateral relations with partner countries, DG REGIO should consult all relevant Commission’s directorates-general as well, on the list of planned projects and on related concept notes.
Besides providing benefits at regional level, cross-border programmes have contributed to building and maintaining trust between the EU and neighbouring countries and among neighbouring countries themselves.
As of June 2022, the Commission was preparing a legislative proposal that would channel ENI CBC funding to support Ukrainian refugees and help EU beneficiaries of the suspended programmes. However, the invasion has cast severe doubt on the future of half of the proposed Interreg NEXT programmes.
Leo Brincat is a former Maltese member of the European Court of Auditors.