Brussels, 26/09/2011 (Agence Europe) - Cohesion policy and regional aid are central to optimisation of the European structural funds for the forthcoming programming period (€376 billion proposed in the multi-annual financial framework of the EU 2014-2020). On 6 October, the Commission will present a draft general regulation which aims to remodel the cohesion instruments, bringing in new priorities, conditions and performances to finance the regions of Europe efficiently, whilst respecting the objectives of the EU Strategy 2020. In an initial version of this draft regulation, of which Agence Europe has obtained a copy, conditionality is by far the most innovative principle the Commission wishes to bring in, by creating a link between the granting of aid and conditions to be respected both before (ex ante), and after (ex post) the distribution of European money.
Priorities 2020. Priorities which determine the eligibility of certain projects for European funding will be redefined, the preliminary version of the general regulation suggests. Member states will therefore be obliged to implement the programmes funded by structural funds within thematic areas established by the European Commission. The scope of the cohesion fund (for regions with GNI per head of population below 90% of the European average) will be transport (trans-European transport network) and the environment (climate change, biodiversity, water, waste management, soil protection, ecosystems and urban development).
The list for the European Regional Development Fund (ERDF), on the other hand, is longer, with 11 thematic areas, all of which stem from the 2020 objectives for the EU: research, information and communication technology, the competitiveness of small and medium-sized enterprises (SME), transition to a low-carbon economy, prevention of and adaption to climate change, sustainable use of resources, sustainable transport and reduction of bottlenecks, promotion of employment, education and the efficiency of public administrations. Although the areas of action are broader, the Commission will set in place quotas in accordance with the categories the regions come under. For example, the richest regions will be obliged to operate an investment mix rising to 20% in energy efficiency and renewable energies, 30% in innovation, 30% in support to SMEs; while the poorest regions will be bound only by an obligatory minimum of 6% funding in energy efficiency.
Ex ante conditions, concrete actions and budgetary stability. In its revision of the cohesion policy, the Commission also wishes to set in place strict systems for the framework and monitoring of member states, in order to ensure that European money, whether it is distributed via the cohesion fund or the European development fund (ERDF), has every chance of being allocated for good reason, and managed appropriately.
Before paying out ERDF funds to the member states or regions in question, the Commission will require them to fulfil a range of very specific conditions, which will be determined depending on the priority thematic area of the programme to be financed. These criteria, to be established by the Commission, range from the transposition of European legislation to a requirement for action plans or concrete measures, all of which in line with the 2020 objectives. For example, personalised services for jobseekers must be set in place, or the time it takes to set up a business reduced, or the number of people from a less-favoured background going into higher education increased, etc.
Additionally, in order to ensure that the European cohesion funds are spent in an ideal budgetary context, thereby guaranteeing the anticipated benefits, member states will have to prove themselves by demonstrating a stable economy under control. If a member state fails to take effective measures to bring its debt under control, it will be exposed to the suspension of the cohesion funds and will risk seeing pending payments suspended up to 50% of their total, or even 100%, depending on a decision of the Council.
Ex post conditions, performance bonuses. In order to create incentives for the beneficiary member states or regions to make the best possible use of the funds allocated to them, the Commission is planning a list of conditions to be respected, with bonuses. If these objectives are achieved, the member states in question will be able to receive additional funds from a reserve made up of 5% of the cohesion budget. At the mid-term reviews of the programmes in question, it will be established whether the 5% will be made available as bonus payments.
The revision of the cohesion policy and the budget allocated to it in the multi-annual financial framework will be the main focus of the debate to be held at the 39th General Assembly of the Conference of the Peripheral Maritime Regions to be held in Aarhus (Denmark) from 28 to 30 September. (MD/transl.fl)