Brussels, 13/12/2011 (Agence Europe) - The EU Council has agreed to the additional 10% in co-financing of European structural and cohesion funds, and to financial instruments such as “reimbursable grants” and “credit lines”. This last stage in the institutional process confirms that Greece, Ireland, Portugal, Hungary, Latvia and Romania may benefit from a European Union rate of co-financing reviewed upward for their projects within cohesion policy, which means that European aid can climb to 95% in some cases. This change in the regulation is a temporary measure to help the above countries, and others that so wish, to face the crisis, by supporting the real economy and employment. The new rules may be applied retroactively to 1 January 2010 until the end of 2013, when the current cohesion policy programme comes to an end.
The Council also adopted a regulation to complete the general regulation for structural and cohesion funds, redefining financial instruments such as reimbursable grants and guarantee schemes.
Under the leadership of Danuta Hübner (EPP, Poland), who chairs the parliamentary committee in charge of regional development, the Commission's proposal was adopted rapidly by the Parliament, leaving member states the possibility to support these financial instruments in their turn before the end of the year. The result is that, as of 19 December, these six countries may make use of these mechanisms - which gives a shot in the arm for countries lacking in liquidity.
Johannes Hahn, European Regional Policy Commissioner, was delighted, saying: “We want to encourage member states and regions to use EU financial instruments since they can enhance the impact of cohesion policy. They are catalysts for public and private resources and will allow us to achieve the investment levels needed to realise the goals of the EUROPE 2020 strategy. I welcome the adoption by the member states of our proposals to tighten the financial control of these instruments, in order to serve the interest of European taxpayers' money”. (MD/transl.jl)