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Europe Daily Bulletin No. 10502
Contents Publication in full By article 23 / 42
GENERAL NEWS / (ae) ep/cohesion

Negotiations opened on 2014-2020 funding

Brussels, 24/11/2011 (Agence Europe) - Discussion of the European Commission's legislative proposals reforming EU cohesion policy for the 2014-2020 period began in the European Parliament (EP) regional development committee on Tuesday 22 and Wednesday 23 November. Discussions will run alongside negotiations on the next EU multiannual financial framework, and MEPs want the reform negotiations completed by the end of 2012.

General regulation. “The challenge is huge”, stated Constanze Krehl (S&D, Germany), rapporteur on the general regulation with Lambert van Nistelroij (EPP, Netherlands). While the Commission initiative to make administration of the structural funds easier by giving them common rules is welcomed by the rapporteurs as a “big step forward”, they say they will base their consideration on the challenges they have already identified to ensure that the next planning period meets the cohesion objective and provides an effective response to the current economic context.

Macroeconomic conditionality. Macroeconomic conditionality has already been severely criticised by the rapporteurs, despite Regional Policy Commissioner Johannes Hahn's attempts to reassure MEPs. Addressing the EP least week, he emphasised that suspending funding because of failure to control the national budget would be used only as a last resort.

Capping. Another controversial issue is that of capping the amount of structural funding to be allocated. Several countries, for example, the Baltic States and Hungary, have protested against capping the amount that can be allocated to any country at 2.5% of its national GDP. The rapporteurs intend to look closely at this point.

Flexibility. Although the changes proposed by the Commission seek to simplify procedures and to bring about better results, the MEPs are worried by the lack of flexibility. “I fear that the whole may become more bureaucratic and that projects may become more of a beauty contest rather than addressing the substance”, said van Nistelroij.

Further rapporteurs will give individual consideration to each fund: Jan Olbrycht (EPP, Poland) will look at the European Regional Development Fund (ERDF) Victor Bostinaru (S&D, Romania) the cohesion fund, Riika Manner (ALDE, Finland) European territorial cooperation regulation, Joachim Zeller (EPP, Germany) European Grouping for Territorial Cooperation (EGTC) and Elisabeth Morin-Chartier (EPP, France), of the EP employment committee, will be the rapporteur on the European Social Fund. (LC/transl.rt)

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