Brussels, 30/05/2011 (Agence Europe) - Fragmenting EU cohesion policy spending along sector-specific lines, such as climate, energy or transport, would “undermine the tried and tested principle of multi-level governance and jeopardise the regions' contribution to the achievement of EU 2020 objectives”. That is the warning issued by the Regional Development Committee on Thursday 26 May, with an eye on forthcoming Commission budget proposals. The plenary session vote on the Pieper report will be held on 22-23 June (see EUROPE 10387).
No change in the budget. Under the EU's next long-term budget - 2014-2020 - regional policy should get at least as much funding as it does at present if it is to play its role in reducing development disparities (some of which are growing) among regions. Ahead of a Commission proposal for a “common strategic framework”, MEPs advocate integrating spending under the various EU structural funds (funding regional development and social measures) by introducing common eligibility rules for funding and allowing for multi-fund planning.
New category of aid for “transitional” regions. For the next long-term budget, the committee suggests putting in place an “intermediate category” of regions, so that regions with the same GDP could be treated in the same way, irrespective of their past eligibility status. Constanze Krehl (S&D, Germany) pointed out that some 36 regions would benefit from this, The measure, which was approved by 27 votes to 10, with no abstentions would be likely to benefit regions particularly in France, Spain, Italy, Germany the UK and Belgium. Rapporteur Markus Pieper, however, was surprised that the Commission had backed this new category of funding.
MEPs against macro-economic funding conditions. The committee firmly rejects conditions that would require member states to undertake fundamental social and economic reform. MEPs state that “all conditionalities should fully respect the principles of subsidiarity and partnership”. Development and investment partnership funding should nonetheless be subject to specific conditions, to be decided by the Commission and member states, say MEPs. The committee suggests that these conditions could include a requirement to implement existing EU legislation in full (for example, on price regulation, tendering procedures, transport, and health and the environment).
Connecting regions across borders while avoiding relocation. Cross-border, inter-regional and trans-national co-operation efforts need to be stepped up at all EU internal borders and, to this end, the share of structural funds allocated to these efforts should be increased to 7%, says the committee.
MEPs on the committee believe that the EU should support large, private firms investing in research and development, even indirectly through infrastructure financing. However, clear rules are needed to prevent the EU funding the relocation of firms within the Union. Where necessary, these rules should bar large companies from receiving direct subsidies, the report adds. Support for small and medium-sized enterprises (SMEs) in the EU “must be strengthened in light of the key role they can play in the implementation of the EU 2020 strategy”, MEPs say.
French Socialist delegation in EP: intermediate regions kill two birds with the one stone for. On behalf of the whole delegation, Catherine Trautmann said she was waiting for the College of Commissioners to take on the issue and called on France not to sacrifice the Community's largest solidarity project. “The European budget contains an undeniable added value. That is why it must not suffer from austerity measures. We mustn't put cohesion and agricultural policy in competition one with the other, or put regions in competition one against the other”, she said.
Estelle Grelier (SURE committee) highlighted “the current hesitation from a number of European commissioners, including their chief, Mr Barroso”. Given this hesitation, “it is important that the Parliament adopts a clear position on Commissioner Hahn's proposal. This support for a strong, fair cohesion policy which responds to regional developments and needs illustrates the vision of European Socialists in the current debates on the size of the EC budget and its post-2013 perspectives. What is needed is an ambitious budget sufficiently well funded to meet citizens' wishes and to allow the EU to fulfil its role”.
Patrice Tirolien (REGI committee) said that “not only will this new category of intermediate regions alter the concept of transition within regional policy, countering the impact of thresholds and ensuring fair shares among regions with the same level of GDP, it is also a genuine commitment to stronger cohesion in Europe in the coming years”. (G.B./transl.rt)