Brussels, 15/11/2011 (Agence Europe) - A little help is expected for countries most severely affected by the crisis thanks to a temporary increase in EU co-financing rates. EU funding will be stepped up 10% for cohesion programmes as of the end of 2013 for six countries, so that the EU pays up to 95% of regional development project costs. The first countries concerned are Greece, Ireland, Portugal, Romania, Lithuania and Hungary but other member sates could also be eligible for European support.
The parliamentary committee on regional policy has approved the measure providing an exemption to the general regulation on structural funds (No1083/2006, European Regional Development Fund, European Social Fund and Cohesion Fund), under certain conditions. During the committee meeting on Monday 14 November, in Strasbourg, a large majority (26 votes for, none against and 3 abstentions) supported the draft report by Danuta Hübner (EPP, Poland) on increasing the amounts paid to certain member states. The rapporteur was particularly keen on this increase in the co-financing rate as a contribution to economic recovery. Danuta Hübner, who also chairs the parliamentary committee and who is former European regional policy commissioner, explained that: “Swift actions to help those hit hard by the crisis have been our priority. A temporary rise in co-financing ceilings will not affect total EU regional funding in the member states but will allow funds to be concentrated on completing some projects and thus reduce the pressure on national budgets”. She underlined that the mechanism must be set in place rapidly, according to clear and transparent conditions.
Higher co-financing for countries in difficulty therefore takes as read that the countries in question will set out priorities in their projects for the promotion of growth, employment and competitiveness. These countries must also show that, under the current maximum co-financing rates, they could not have afforded to pay their share of the projects.
MEPs insist that the temporary rise in the EU's share of investment costs should be duly justified and apply without prejudice, or automatic renewal, to the 2014-2020 programming period of structural funds. (MD/transl.jl)