In order to achieve a balanced\ndevelopment across the Eurozone, there should be a combination of centralized\ncontrol and management of the available funds for development (the National\nStrategic Reference Framework (NSRF) documents are the EU funds at national\nlevel) by the Commission. <\/p>\n\n\n\n
At the same time there should be\na centrally coordinated management and allocation of these NSRF funds in such a\nway as to demonstrate the real contribution (quantitative and qualitatively\nmeasured) both to the local society and economy of the member state and in the budget of the central\ngovernment of the member state that will approve and build any public project,\nbut also in the overall Eurozone\/EU economy. <\/p>\n\n\n\n
The Commission’s goal should be\nnot only the general development in the Eurozone\/EU territory but also the\nspecialized development in the Eurozone\/EU member states. In order to achieve\nthis there should be a centrally planned management of the allocation of NSRF funds.\n<\/p>\n\n\n\n
by Thanos S. Chonthrogiannis<\/strong><\/p>\n\n\n\n \u00a9<\/em>The law of intellectual property is prohibited in any way unlawful use\/appropriation of this article, with heavy civil and criminal penalties for the infringer.<\/em><\/p>\n\n\n\n The incorrect policy of the Development fund management system which are allocated\nto all Eurozone\/EU member countries.<\/strong><\/strong><\/p>\n\n\n\n In summary, we will mention that\nthe current system of management of the NSRF funds and generally the\ndevelopment funds of Eurozone which are allocated to the Euro-area member\ncountries does not yield the greatest in terms of the expected growth size in\neconomies of the Eurozone\/EU member countries. <\/p>\n\n\n\n The Euro area\/EU development\nfunds that the European Commission determines each time and are granted through\nthe well-known seven years programs of the NSRF funds in the Euro-area\/EU\nmember countries do not yield the most. <\/p>\n\n\n\n The reason is that the management\nand grant of the funds takes place by the central governments of the\nEurozone\/EU member countries, which should be aware of the problems and needs\nof their member countries. <\/p>\n\n\n\n This entitles the governments of\nthe member states to choose several times to finance with these funds projects\nthat are not so necessary for their society and their economy.<\/p>\n\n\n\n However, the projects that they\nare prejudging to finance are very important and necessary in terms of the\nprestige of the governments and their governmental parties. These projects are\ngiven to companies which usually are financiers of the governmental parties and\nhabitually hire potential voters of these governmental parties. The governments\ngoal is to attract more voters reducing parallel the unemployment in their\neconomies. <\/p>\n\n\n\n On the other hand, the any grades\nof high absorption in this type of NSRF funds that the member states present\nare usually not reflected in the change of the status of the economy that\nabsorbs these funds.<\/p>\n\n\n\n Moreover, many times the governments\nof the Eurozone\/EU member states although that they are showing that they\nabsorb these funds in practice these funds are dramatically delay reaching the\nbeneficiary-contractors\u2019 treasury. In this way, the governments create unfair\ncompetition against legal persons who are not politically adjacent to them,\nwhile at the same time they succeed to exert political pressures on those\ncompanies that undertake the projects. <\/p>\n\n\n\n The central governments in order to\navoid exerting political pressures which will doom their popularity, they\nchoose to finance projects that the legal persons who undertake them are\n“friendly” to the respective governments of the member countries.<\/p>\n\n\n\n On the other hand, the state\ncorruption is moving into large levels, as the funds in these programs will go\nto companies that are selected from the governments. The ministries of the governments\nof the member states that are responsible for the development and manage the\nspecific NSRF funds, set “strange terms\u201d-obstacles to the applicants for\nfunding. <\/p>\n\n\n\n For example, in Greece for the\npreparation of a business plan the applicant for funding from the specific\nfunds of the NSRF should apply to specific accountants\/business consultants who\nare listed in the accountants\/business consultants list which designate the\nGreek Ministry of Development. <\/p>\n\n\n\n If the author (accountant\/business\nconsultant) of a business plan who will choose the funding applicant to make his\nbusiness plan does not mention his name on this list of the ministry of\ndevelopment, the funding application is rejected.<\/p>\n\n\n\n The questions which everyone can pose are: <\/p>\n\n\n\n 1.<\/strong> Are there any related or closed friendly relationships between those who draw up business plans and their names are on the ministry’s list and those responsible in development ministry who reject or approve the business plans and of course the approval for funding from the NSRF funds? <\/p>\n\n\n\n 2.<\/strong> How much of the funding of the project goes as remuneration and to whom? <\/p>\n\n\n\n 3.<\/strong> Why are specific accountants\/business consultants being selected and at the same time is excluding the largest percentage of this type of freelancers and companies\u2019 professionals equally in the market?<\/p>\n\n\n\n In order to avoid this kind of\nmalfunctions in the management of the Eurozone\/EU development funds, the\nCommission should organize a different type of organizational and\nadministrative structure which will guarantee the maximum efficiency of these under\nmanagement development funds. <\/p>\n\n\n\n The new organizational structure that will bring maximum efficiency of\nunder-utilized development funds to the Eurozone\/EU economy<\/strong><\/strong><\/p>\n\n\n\n The European Commission will must create, in each member state of the Eurozone, an Independent Management Authority for its Development Funds. In order to facilitate the reader and the following analysis we will name this authority as an Independent Development Fund Management Authority (IDFMA).<\/p>\n\n\n\n Of course, the management of these Euro area\/EU development funds (i.e. NSRF funds) will be completely dismissed from the managerial hands of the so far responsible Development Ministries of the central governments of the member states of the Eurozone\/EU and will be given full in each of these Independent Development Fund Management Authorities (IDFMAs). <\/p>\n\n\n\n Essentially, the European Commission will create nineteen (19) Independent Development Fund Management Authorities in the Eurozone territory, as well as its respective member countries.<\/p>\n\n\n\n In the organizational and administrative structure respectively of each of these nineteen (19) Independent Development Fund Management Authorities (IDFMAs), excluding all others, will must include:<\/p>\n\n\n\n 1.<\/strong> All the services of the Eurozone member state and the Eurozone\/EU in general, services which are in the member state and they are responsible not only for the deposit and approval development projects but also for the management of the development (NSRF) funds.<\/p>\n\n\n\n 2.<\/strong> Independent departments that will be staffed either through a project contract or will belong to the payroll of this Independent Authority. The actions of these independent departments will be audited as to the integrity of the applications-dossiers of projects seeking funding, but also in the course of completion of projects within the pre-defined schedules. <\/p>\n\n\n\n These independent divisions will\nact autonomously and independently of all other departments of the Independent\nDevelopment Fund Management Authority (IDFMA). <\/p>\n\n\n\n Such a type of organizational structure in each independent authority will lay the foundations for more effective control of applications-projects which are seeking funding, since the independent type actions of these departments will be rechecked either by choice or by randomness cases that already have been checked as to the integrity of the applications-dossiers and the predetermined course of completion of the projects. <\/p>\n\n\n\n And of course, these independent divisions will not know the existence of one with the other. <\/p>\n\n\n\n 3.<\/strong> The heads of all the departments of the Independent Development Fund Management Authority (IDFMA) will be reported to the respective CEO (Chief-Executive Officer) of IDFMA and only to him. The head-CEO of IDFMA will never report not only to a minister, but not to the respective President of the government of the member state. <\/p>\n\n\n\n 4.<\/strong> The departments and services of the Independent Development Fund Management Authority (IDFMA) who will carry out their audit and management tasks will never contact each other and will not be informed about which cases are checked each time by the authorized departments. <\/p>\n\n\n\n With this type of sealing is achieved a complete fight against any corruption that can occur in these mechanisms. <\/p>\n\n\n\n 5.<\/strong> The Independent Development Fund Management Authority (IDFMA) of each Eurozone member country will must belong 100% administratively, organizationally and operationally to the Commission Commissioner responsible for the Development portfolio (the European Commissioner for Development).<\/p>\n\n\n\n The CEO, the Authorized Council and the heads of the departments of the Independent Development Fund Management Authority (IDFMA) should be selected on strict criteria and only by the specific Commission Commissioner and after the candidates for these positions will have submitted their applications in Brussels and in the relevant EU section. <\/p>\n\n\n\n 6.<\/strong> The procedure and criteria for hiring the staff of these Independent Development Fund Management Authorities (IDFMAs) in each Eurozone member country will must be the same and common in all Eurozone member countries. <\/p>\n\n\n\n The staff who will be recruited for the staffing and the smooth operation of these independent authorities will have to come from both the public and the private sector. <\/p>\n\n\n\n It would be a great mistake for\nthe European Commission to approve any requests made by the governments of the\nEurozone member states to recruit in these Independent Development Funds Management\nAuthorities the existing civil servants of the Development Ministries who have\nmanaged to date the NSRF programs. <\/p>\n\n\n\n In such a case, the state corruption and any of its methods will be “transfused” by these governmental agencies to these new independent authorities. The staff as well as the executives who will be recruited to these Independent Development Funds Authorities will must have nothing to do with the development fund management of the NSRF programs. <\/p>\n\n\n\n 7.<\/strong> The total of the governments of the Eurozone member states will must never know who the candidates for the above administrative positions of the Independent Development Funds Management Authorities (IDFMAs) of their member countries are. <\/p>\n\n\n\n It will also not allow in every government of each of the Eurozone member countries to propose who wants to be in these administrative positions of the Independent Development Fund Management Authority (IDFMA), simply leaving the European Commission to agree every time with government\u2019s suggestions.<\/p>\n\n\n\n 8.<\/strong> The candidates for the staffing of these administrative positions of the Independent Development Fund Management Authorities (IDFMAs) will be originating in labor terms both from the private and public sectors of the Eurozone as a whole. <\/p>\n\n\n\n The foreign candidates of all these administrative positions of IDFMA should be aware of the official language of the member state of the Euro area to which the respective Independent Development Fund Management Authority (IDFMA) belongs, i.e. the candidates for the administrative positions of the Italian IDFMA should be aware of the Italian language respectively. <\/p>\n\n\n\n 9.<\/strong> The payroll of these administrative positions of the Independent Development Fund Management Authorities (IDFMAs) in each Euro-area member state should only be charged to the European Commission’s budget (they will be regarded as Brussels officials). <\/p>\n\n\n\n The remaining\nemployees of the Independent Development Fund Management Authorities (IDFMAs)\nfor the first years, both their payroll and the operating expenses of the IDFMA\nwill be paid by the state budget of the member state of the Eurozone that\nbelongs the respective IDFMA. <\/p>\n\n\n\n In future, the payroll of all employees of the Independent Development Fund Management Authority (IDFMA) and the total operating costs of the IDFMA should be financed from the European Commission’s budget (and they will be considered in their total as employees of the European Commission). <\/p>\n\n\n\n 10.<\/strong> The working status of payroll employees of these Independent Development Fund Management Authorities (IDFMAs) (and in general of each IDFMA in the respective Eurozone member countries) will be characterized by trespasses-permanence. <\/p>\n\n\n\n The evaluations of the employees\nof each IDFMA in the respective member countries of the Eurozone will take\nplace every year and with the completion of the three years will be decided\nwhether to renew their contract. The process of evaluation and employment\ncontracts will be the same for all IDFMAs in the Euro area. <\/p>\n\n\n\n By completing five years of work, the Commission and specifically the European Commissioner responsible for the Development portfolio, will decide on the renewal of the employment contracts of the highest administrative positions and the positions of the heads of the departments of each IDFMA in the respective member countries of the Eurozone. <\/p>\n\n\n\n 11.<\/strong> In a second stage and after the creation of all these Independent Development Fund Management Authorities (IDFMAs) in the respective Eurozone member countries, the Commission will must unify all the information systems of nineteen (19) IDFMAs via secure internet. <\/p>\n\n\n\n This strategy will achieve full homogeneity in the information systems of all the Independent Development Fund Management Authorities (IDFMAs) and the only that will change will be the local language of each Eurozone member country. <\/p>\n\n\n\n 12.<\/strong> The Government of each member state of the Eurozone will be able at any time to receive information in each case and for each case by the head-CEO of the Independent Development Fund Management Authority (IDFMA) of its member state without a restriction and with the same access that will have the European Commission’s Commissioner responsible for the Development portfolio (approval, course and completion of any project of interest which is funded by the development funds of the NSRF programs). <\/p>\n\n\n\n However, the administrative and\norganizational structure, the decisions on management, the methodologies and\nstrategies, the systems and the staffing as well as the operation of each\nIndependent Development Fund Management Authority (IDFMA) that will exist in\neach Eurozone member-country, should be taken solely by the European\nCommission’s responsible Commissioner for Development.<\/p>\n\n\n\n In this way, the management of\nthe European Financial Structural Funds will be left out of the \u201chands\u201d of the\ngovernment of each Eurozone member state, creating all the conditions for the\nrapid approval and financing of each project in each Eurozone member state and in\nthe entire territory of the Eurozone. <\/p>\n\n\n\n Why must be created this managerial system of the Development (NSRF) funds\nin the territory of the Eurozone?<\/strong><\/strong><\/p>\n\n\n\n According to my opinion, it is of the utmost importance to the European Commission and more generally to the development of a high degree of operational management of the NSRF funds. By formulating this model of administration, control, management and monitoring the progress of projects which are funded by these development funds, the European Commission succeeds in direct and real time: <\/p>\n\n\n\n 1.<\/strong> To know at the same time the applications for funding of projects, but also the nature and type of projects that seek funding in each member-country of the Eurozone and throughout the total Eurozone territory.<\/p>\n\n\n\n 2.<\/strong> To be able to coordinate both the approval, financing and acceleration of the completion of cross member-countries projects in which will be involved more than one Eurozone member-countries (e.g. works on a pipeline network for natural gas transmission throughout the Eurozone territory, projects for rail and road networks equally throughout the Eurozone, etc.).<\/p>\n\n\n\n 3.<\/strong> To be able to transfer development funds that have been committed in a member country, which these funds are not needed directly by the specific member country, e.g. due to reduced demand for funding for projects in its territory, in other member-country or other euro area member countries due to high demand for project financing in their dominions. <\/p>\n\n\n\n If this transfer of funds is\ncombined with the movement of labor from Eurozone\/EU member countries which\ndispose high unemployment in their territories in other Eurozone\nmember-countries that are in demand for labor and project supply surplus, will\nbe achieved a reduction in total unemployment figure in all the Eurozone\neconomy. <\/p>\n\n\n\n In addition, the European Commission with this system of transfer of development funds from one-member state to another will be able to influence, in addition to all others, the cost of living and the wage levels in its member countries on behalf of Eurozone citizens.<\/p>\n\n\n\n 4.<\/strong> To achieve a homogeneous allocation of funds and to accelerate the increasing rates of investments in Eurozone member countries with aim to achieve greater growth rates in large areas of the Eurozone territory. Achieving in this way greater and faster convergence of the economies of Eurozone member countries.<\/p>\n\n\n\n 5.<\/strong> The methodology, the methods of approval, control and acceleration of projects and investments, the fight against any state corruption and financial crime occurring in this type of management of development funds will be applied simultaneously and in the first year throughout the Eurozone, since all employees of all Independent Development Fund Management Authorities (IDFMAs) will have the same common working culture on all these issues. <\/p>\n\n\n\n 6.<\/strong> With full administrative control of the nineteen (19) Independent Development Fund Management Authorities in the Eurozone as a whole under the Commission\u2019s Development portfolio, and given that all of these IDFMAs will be fully owned by the Commission’s Development portfolio administration (having these IDFMAs in their entirety the same administrative relationship that the ECB has with the respective central banks of the Eurozone member countries) the European Commission can turn this portfolio into a Ministry of Development of the Central Government of the Eurozone.<\/p>\n\n\n\n More development and economic homogeneity in the Eurozone <\/strong><\/strong><\/p>\n\n\n\n In addition, the EU member\ncountries that are not yet part of the Eurozone will must also create\nrespective Independent Development Fund Management Authorities (IDFMAs) in\ntheir countries. <\/p>\n\n\n\n What we are proposing to the European\nCommission is the creation by an Independent Development Fund Management\nAuthority (IDFMA) in each EU member country with the same administrative and\norganizational structures and as described in the above paragraphs for the Eurozone\nmember countries.<\/p>\n\n\n\n The IDFMAs to be created by EU\nmember countries (totaling eight (8) in number as well as EU member countries)\nwill have the same administrative and organizational function as the respective\nIndependent Development Fund Management Authorities (IDFMAs) (total Nineteen\n(19)) that will be in each member country of the Eurozone. <\/p>\n\n\n\n The difference between them will\nbe that the Independent Development Fund Management Authorities (IDFMAs) of EU\nmember countries will be reported to the individual development Minister of the\nEU member state’s government that belong, and not to the Commission’s\nCommissioner, Commissioner responsible for the Development portfolio. <\/p>\n\n\n\n The wage and operational costs of\neach Independent Development Fund Management Authority (IDFMA) of these EU\nmember countries will be borne by the respective EU member state budget that it\nbelongs to and not by the budget of European Commission.<\/p>\n\n\n\n The specific Independent\nDevelopment Fund Management Authorities (IDFMAs) of each EU member state will\nbe involved in 100% administrative and operational competence of the European\nCommission’s Commissioner responsible for the Development portfolio, when the\nEU-member country enters 100% in the Euro area (adoption of the euro as the\nofficial currency). <\/p>\n\n\n\n However, the administrative, the organizational and operational structures equally of the eight (8) Independent Development Fund Management Authorities (IDFMAs) of the respective EU member states will be identical to the corresponding nineteen (19) IDFMAs of the corresponding nineteen (19) member states of the Eurozone. <\/p>\n\n\n\n So that when the EU member countries enter the Eurozone it will be smooth the transfer of the administration of their respective IDFMA to the Commission. <\/p>\n\n\n\n Certainly, our proposal to the\nCommission for this type of organization and management of its development funds\nthroughout the European territory will find a severe reaction from the governments\nof the Eurozone member countries, given the economic and political transfer of\npower which will be carried out by the governments of the Eurozone\nmember-countries to the European Commission (Brussels). <\/p>\n\n\n\n But the Eurozone cannot move to a single economic, fiscal & tax policy and consolidation respectively, if it has not been able to fully control its public tax revenue in its territory (See Analysis with title-The Proper way to achieve the one and only Operating Budget of the Eurozone-I, published at https:\/\/www.liberalglobe.com<\/a>, 27\/12\/2018) as well as the corresponding development policy which are applied and implemented at the same time in all Eurozone member-countries. <\/p>\n","protected":false},"excerpt":{"rendered":" In order to achieve a balanced development across the Eurozone, there should be a combination of centralized control and management of the available funds…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,860],"tags":[387,529,381,25,364,389,190,361,528,386,527,2191,385],"class_list":["post-347","post","type-post","status-publish","format-standard","hentry","category-economic","category-fiscal-economics","tag-commissioner-for-development","tag-current-management-of-eu-nsrf-funds","tag-development-funds","tag-eu","tag-european-commission","tag-european-financial-structural-funds","tag-eurozone","tag-eurozone-budget","tag-more-development-and-economic-homogeneity-in-the-eurozone","tag-political-pressures","tag-the-proper-way-to-organize-and-manage-the-eu-development-nsrf-funds","tag-trust-economics","tag-unfair-competition"],"_links":{"self":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/347","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=347"}],"version-history":[{"count":6,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/347\/revisions"}],"predecessor-version":[{"id":5668,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/347\/revisions\/5668"}],"wp:attachment":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}