The performance-based mechanism is intended to enhance the visibility of the essential services, to mobilise a large number of stakeholders, in view of the fact that improving services depends closely on regional and national policy choices and on the interaction between different levels of government.
Achievement of the targets will be verified in 2013 on the basis of the most recent statistical information (generally referring to 2012).
Around €3 billion are conditioned to the attainment of the targets, and the rewards must then be reinvested in the same sector.
The financial incentives are awarded pro rata to the regions of the South and the Ministry of Public Education on the basis of the number of targets achieved and the corresponding share of resources determined on the basis of agreed allocation criteria - in italian (pdf, 210 Kb).
A midterm assessment will take place at the end of 2009 on the basis of the progress achieved in closing the gap between the current value and the target for 2013 (pdf, 17 Kb). Therefore a share of the incentive funds will be assigned in 2009.
In order to link the performance-based mechanism to the different starting point and therefore the to the effort that the regions will have to undertake, the system includes a flexibility clause: a region will receive the entire reward for an indicator if it has narrowed the gap between its baseline value and the target in 2013 by at least 70%. The flexibility mechanism can be applied to a maximum of four indicators, each relating to a different objective. Accordingly, at least one target must be achieved in full for each of the objectives.
The mechanism also rewards local excellence: where a region has not achieved the target by 2013, part of the incentive will be assigned to local governments in charge of delivering or managing services that have improved their performance levels with respect to the service indicators, within the framework of a formal incentive mechanism established by the region.
Performance-based mechanism
