Brussels, 11/10/2011 (Agence Europe) - EU ministers, meeting in Luxembourg on Tuesday 11 October, gave a relatively warm reception to proposals on rules for implementing cohesion policy from 2014 to 2020. Criticism focused on the macroeconomic conditions which would see the suspension of structural funding to countries which fail to abide by the rules of the stability and growth pact, and on the capping of European funding at 2.5% of the GDP of each member state.
This General Affairs Council held a first exchange of views just to sound out matters before beginning fully-fledged negotiations begin. Regional Policy Commissioner Johannes Hahn gave a brief presentation of the package of legislative proposals (of 6 October) to modernise cohesion policy. The Commission wants to simplify the structural funds and optimise the results of European funding, with a series of preconditions for the granting of aid and performance incentives (5% of funding being held back).
The various delegations welcomed the Commission initiative and stressed the need to simplify and clarify procedures for the allocation of European monies.
Several countries, including Italy, Greece, Hungary, Romania and the Czech Republic, were critical of the macroeconomic conditions on structural funding, as proposed by the Commission. Only France, Germany and Bulgaria unequivocally backed this proposal. The commissioner called on the member states not to devote too much time to this point which, he suggested, is only marginal. He pointed out that sanctions (suspension or even withdrawal of funding) would only apply in extreme cases. However, as may be seen by initial reactions, the macroeconomic conditions will be at the heart of negotiations on this legislative package.
Four delegations expressed criticism of the ceiling on European funding of 2.5% of each member state's GDP. These were the delegations of the three Baltic States and Hungary, which recently have seen their GDP fall, meaning a reduction in European funding in the next planning period from what they currently receive. The four member states wrote to the European Commission on this matter on 30 September.
Opinions were mixed on the proposal to create a category of “transition regions” (whose GDP is between 75% and 90% of the European average). This new category would provide for further transition for the least developed regions which have not fully made up the difference with the most developed. The reactions, whether for or against, reflected the level of development of the countries concerned.
The Polish Presidency of the EU Council of Ministers concluded with a statement of its determination to take forward the negotiations, particularly in three issues - territoriality, conditionality and 2020 objectives. An initial report on the state of play in discussions is expected by December. (MD/transl.rt)