Why should the EU support
good governance?
The quality of public administration is important for economic
competitiveness and societal well-being. At a time when Mem-
ber States are facing increasing pressures on public budgets,
the challenge of ensuring high-quality public services requires
technological and organizational innovation to boost efciency.
This applies both in public administration and in delivering public
services and quality public investment. At the same time, good
governance and legal certainty are necessary for a stable busi-
ness environment. It is essential that the institutions that gov-
ern economic and social interactions within a country fulfll a
number of key criteria. These criteria include the absence of cor-
ruption, a workable approach to competition and procurement
policy, an efective legal environment, and an independent and
efcient judicial system. Moreover, strengthening institutional
and administrative capacity, reducing the administrative bur-
den and improving the quality of legislation underpins structural
adjustments and fosters economic growth and employmen
The quality of public administration has a direct impact on
the economic environment and is thus crucial to stimulating
productivity, competitiveness and growth(1)
. Apart from its key
role as an economic regulator, the public sector also stands out
as a service provider and employer. It accounts for more than
25 % of total employment and a signifcant share of economic
activity in the EU28 Member States. Additionally, an efcient
and productive public sector can be a strong driver of economic
growth through its support for and governance of the private
sector
(2)
. An efective public administration is a key element of
the competitiveness of the EU economy, supporting measures
to reduce the administrative burden on individuals and SMEs(3)
.
The modernisation of public administration was identifed as
one of the fve priorities of the Commission’s last three Annual
Growth Surveys(4)
. Reform of public procurement, digitisation of
public administration, reduction of administrative burden, and
increased transparency are all growth enablers(
In the same tone, the European Commission(6)
argues that
“high-quality, reliable public services and legal certainty were
historically a major precondition for the economic success of
today’s front-runner countries”. It further argues that “... weak
administrative and judicial capacity as well as legal uncer-
tainty constitute key impediments in addressing economic
development challenges.
What support did Cohesion
Policy provide to administrative
capacity in the period 2007-13?
The 2006 Community Strategic Guidelines for Cohesion iden-
tify good governance and capacity building as key issues to
address. Though the share of overall funding volumes is relatively small (1.1 % of decided allocations), administrative
capacity building (ACB) is important in view of the expected
benefts for governance.
The following 2 headings/categories are reported(7)
:
• Promoting partnerships, pacts and initiatives through the
networking of relevant stakeholders;
• Mechanisms for improving good policy and programme
design, monitoring and evaluation at national regional and
local level, and capacity building in the delivery of policies
and programmes.
The strengthening of institutional capacity and the efciency of
public administrations and public services at national, regional
and local level and, where relevant, social partners and non-
governmental organisations, were a major ESF priority for the
2007-2013 period (Article 3.2(b) – Regulation EC 1081/2006).
This new priority was introduced for Convergence regions
and Cohesion Member States as a key element for promot-
ing structural adjustments, growth and jobs, and economic
development. It is seen as a means which will contribute to
reforms, better regulation and good governance, especially in
the economic, employment, education, social, environmental
and judicial felds