OVERALL RESULTS BASES: Law on Budget Stability and Financial Sustainability. adapting

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1 ANNUAL REPORT

2 OVERALL RESULTS BASES: Law on Budget Stability and Financial Sustainability. Measures adapting the structure and spending of ministerial departments Presidents' Conference: Agreements to tackle a reform process in public administration. MILESTONES Commission for the Reform of the Public Administration (CORA) created in October Suggestions Box for citizens in the first quarter of 2013, with 2,239 suggestions. Report on the Reform of the Public Administration, approved in June DEVELOPMENT: Execution: 222 measures: over 45% already implemented (101) and the rest in the process of implementation. Legislation and regulations: 4 Draft Bills (1 Constitutional Law), 14 Bills (3 Constitutional Laws), 21 Royal Decrees and numerous Ministerial Orders and Resolutions. RECOGNITION: OECD report: Calls the Spanish reform one of the most advanced among member states. UN egovernment evaluation: Spain has risen from 24th place in 2012 to 12th in UN award in 2014 (Improving the Delivery of Public Services): Data Intermediation Platform.

3 SIZE OF PUBLIC SECTOR 53% 51% Eurozone Spain Public expenditure (% GDP) 51.0% 49.7% 49% 47% 47.3% 45% 46.3% 43% 44.4% 41% 39% 37% 35% 38.4% SAVINGS: Accumulated savings of the structural reform measures in the Public Administration: billion: 2.68 billion for central government, 5.54 billion for regional governments; 2.20 billion for local authorities and 766m for ordinary people and businesses. Steady savings: The greatest efficiency is being generated as all the mechanisms are deployed and the necessary laws are passed.

4 PROBLEMS IN ADMINISTRATION CORE REFORM ELEMENTS LATE PAYMENTS BY THE PUBLIC ADMINISTRATION INFLATION OF ADMINISTRATIVE STRUCTURES DUPLICATIONS WITHIN AND BETWEEN ADMINISTRATIONS INEFFICIENT USE OF RESOURCES AND FUNDS COMPLEXITY OF ADMINISTRATIVE PROCEDURES

5 LATE PAYMENTS BY THE ADMINISTRATION LIQUIDITY MEASURES FOR THE PUBLIC ADMINISTRATION billion to pay more than 8 million invoices for 230,000 suppliers to regional governments and local authorities billion for regional governments through the Regional Liquidity Fund (FLA). Savings of 20.0 billion in interest payable until full repayment. PLAN TO END LATE PAYMENTS IN THE PUBLIC SECTOR. Law to Limit Commercial Debt. Integrates commercial debt into the principle of financial sustainability, obliges the publication of the PMP and the implementation of a cash-flow plan to guarantee compliance with it. Law on E-invoicing. Guarantees control of costs and protection of suppliers in their commercial relations with the public administration. Processing of 2 million invoices every year will be made easier through a single digital platform: FACe.

6 STREAMLINING INFRASTRUCTURES RESTRUCTURING THE PUBLIC SECTOR IN ADMINISTRATION, BUSINESS AND FOUNDATIONS: GENERAL STATE ADMINISTRATION: Action on 162 entities, which involves winding up 104. Agreement by the Council of Ministers of 16/3/2012, published by Order HAP/583/2012, of 20 March. Law15/2014, dated 16 September, on streamlining the public sector and other administrative reform measures. Royal Decree 701/2013, dated 20 September, on streamlining the public sector. Autonomous regions: Winding up of 675 entities. Initial commitment of 508, increased to 790. When this objective is met, the regional public sector will be made up of 1,579 entities, representing 33.35% of the 2010 figure and below the level of 2003 (when the inventory of entities dependent on the regional governments was created). Local authorities: Reduction of 1,225 entities. Means a reduction of 21.4% on the 5,713 in 2010, bringing the numbers down to 2000 levels. MOBILITY OF PUBLIC EMPLOYEES: More flexibility in the functional dependency of substitute public-sector employees working on temporary programs or in response to excessive accumulation of tasks. Boost to voluntary mobility between territorial administrations. Creation of an administrative service position in the civil administration for military staff.

7 ELIMINATING DUPLICATION ASSIGNMENT OF POWERS TO THE CENTRAL TRIBUNAL FOR CONTRACTUAL RESOURCE: 11 agreements signed. INTEGRATION OF REGIONAL OFFICES ABROAD INTO THE STATE NETWORK: Agreements to integrate a total of 57 offices. SINGLE EMPLOYMENT PORTAL: Began to operate on 17 July 2014, with 105,000 vacancies (September 2014), from national and regional public employment centres as well as private institutions. COORDINATION OF REGISTRATION FOR JOB SEEKERS AND APPLICATION FOR BENEFITS: Coordination in place in all autonomous regions. INTER-CONNECTION OF REGISTRIES OF NON-UNIVERSITY EDUCATIONAL CENTRES: Effective connection between regional and State registries. MASTER AGREEMENT IN THE NATIONAL EMPLOYMENT SYSTEM: Approved 2 August A total of 80 job placement agencies have been selected to work with the State Public Employment Service and 14 regional public employment services. Contracts will be in force by the first quarter of 2015.

8 ELIMINATING DUPLICATION "PLATEA" PROGRAMME: To share stage productions between local authorities. A total of 196 spaces have joined (from all autonomous regions) and 172 productions have been approved. HORSE TRANSPORTATION CARD: Can be processed online from any autonomous region, without the need to present a request before the different regional offices every time a transportation is to take place. Approved by Royal Decree 577/2014, entry into force on 1 October SINGLE SPORTING LICENCE: Approved by the Law on streamlining the public sector and other administrative reform measures. Has begun its phase of regulatory implementation. MUTUAL RECOGNITION OF HUNTING AND FISHING LICENCES: A Protocol for Collaboration has been signed between MAGRAMA and 4 autonomous regions. Seven other regions are considering joining. IT system to be finalised in January PUBLIC SECTOR CONTRACTING PLATFORM: Single site with all the information on contracting for all the public administrations. Three regional governments have already approved formalisation of the agreement. Effective data interconnection planned for January UNIFICATION OF OFFICIAL REGISTERS OF BIDDERS AND APPROVED COMPANIES: Three regional governments have already approved the formalisation of the agreement. Implementation planned by the end of 2014.

9 MANAGEMENT OF COMMON RESOURCES AND SERVICES PROPERTY MANAGEMENT PLAN: Income from sales already stands at 153 million. Leases have been adapted and renegotiated, leading to savings of 47.7 million. Major divestment is planned by the Ministry of Public Works and the Ministry of Defence. REFORM OF THE VEHICLE FLEET: The number of vehicles has been cut by 30% (269), leading to savings of 12.7M (160% of the amount initially planned). CENTRALISATION OF PURCHASING AND SERVICES: Centralised purchases within each ministerial department (savings of 176 million). Start of centralisation between ministerial departments (Saving of 30 million on mail, 24 million on cleaning, 16 million on cars and 7.5 million on fuel). Centralised purchasing initiatives with regional governments (savings of 54 million on medicines and vaccines). CENTRALISATION OF STATE ADMINISTRATION ACCOUNTS AND SALARY PAYMENTS: Under Law 15/2014, on streamlining the public sector and other administrative reform measures. The aim is to consolidate the more than 4,800 current accounts in the General State Administration and centralise salary payments. The terms and conditions are expected to be ready by the end of STREAMLINING PRINTING INFRASTRUCTURE AND REPROGRAPHIC SERVICES AND COMBINING PUBLICATION AND PRINTING AT THE OFFICIAL STATE GAZETTE - BOE: Making the AEBOE services available, with an increase in the number of clients of 10% and turnover of 75% (first half of 2014 on the previous year).

10 ADMINISTRATIVE STREAMLINING e-address IMPLEMENTED: Allows delivery of more than 10 million notifications per year, replacing postal notifications, with a saving of 2.5 per notification. Other systems of online notifications to the electronic offices of the different public agencies have also been implemented, to which 2.1 million companies have signed up. Savings of 71.9 million (since 2013). DATA INTERMEDIATION PLATFORM: Means people do not have to present any documents that are already held by the administration, whatever that administration may be. Exchange of more than 30 million certificates (2013). Savings of 3 million for government and 152 million for citizens and companies (2013). REGISTRY INTERCONNECTION SYSTEM: Allows documents to be presented in paper form to any public registry, where they are digitised for future submission by electronic means. Operates in the General State Administration and in some regions and local authorities. Electronic transmission of more than 350,000 registry entries with the attached digitised documentation. Savings of over 1.3 million for all the public administrations (since 2013). "EMPRENDE EN 3" PORTAL: Allows all the paperwork needed for opening or moving a business to be processed at one Internet site and with all the administrations at the same time. In operation in 1,232 municipalities and for 49% of the population. APPOINTMENTS WITH THE TRAFFIC DIRECTORATE: Now operates for all procedures and at all main offices of the Directorate General for Traffic: 1,176,000 appointments made (since 2013). APPOINTMENTS FOR THE PUBLIC EMPLOYMENT SERVICE: In operation in all the SEPE offices (707): 16 million appointments (since June 2013). 483 offices (68%) make appointments for the day after the request, 204 offices (29%) for the 2nd to 5th day; and 20 offices (3%) for between the 6th and 10th day.

11 ADMINISTRATIVE STREAMLINING ONLINE SERVICE FOR EUROPEAN HEALTH DOCUMENTS: Online request and delivery to the home of the European Health Insurance Card: 1,198,387 cards issued. ONLINE SERVICE FOR SOCIAL SECURITY REPORTS: Allows employers to discover online their position with respect to payment of Social Security contributions. Over 600,000 certificates issued (since July 2013). ELECTRONIC SOCIAL SECURITY OFFICE ("Your Social Security"): Allows individuals to carry out the most common procedures online, as well as learning their situation with respect to contributions and possible access to benefits. New online procedures will be incorporated. "A LA CARTE" OFFICIAL STATE GAZETTE - BOE: Personalised information on official provisions (95,070 registered users). Preparation of 58 legal codes in electronic format (761,779 downloads). INTEROPERABLE DIGITAL MEDICAL HISTORY: 12 autonomous regions issue and receive the summary medical history, 2 autonomous regions already issue it and a further 2 receive it. INTEROPERABLE e-prescription: Electronic prescriptions in place in 89% health centres, 50% doctor's offices and 82% pharmacies. 77.4% prescriptions are already issued electronically. Start of interconnection between the autonomous regions in a pilot phase in 2014 and implementation in the National Health System in 2015.

12 BOOST TO e-government Users of e-government European Union 32% 14% 16% 38% Spain 39% 16% 14% 31% Frequent user Occasional user Potential user Non-user

13 BOOST TO e-government 45% Users of e-government 43% 41% 40% 38% 37% 35% 30% 31% 34% 25% 30% 29% 25% 24% 23% 23% 20% 15% 20% 21% 12% 12% 17% 18% 10% Obtain information - Spain Download forms - Spain Submit forms - Spain Obtain information - EU Download forms - EU Submit forms - EU

14 BOOST TO e-government Paper In person Online Tax returns by form of submission 73% 80% 70% % 40% 47% 55% 62% 60% 50% 40% % 20% 24% 27% 31% 30% 20% % %

15 BOOST TO e-government Social Security: Subscribers to electronic NOTESS notifications ,544, , ,947 Jun Dic.

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