Brussels, 13/12/2011 (Agence Europe) - On Tuesday 13 December, the European Parliament (EP) approved the regulation which allows the temporary (until the end of 2013) increase of the EU's maximum joint-funding rate for programmes running in member states in receipt of support from the European financial stabilisation mechanism (Greece, Ireland and Portugal) and the balance of payments facility for non-eurozone member states (Latvia and Romania). The EU will be able to provide funding of up to 95% for rural development projects in these countries, a move designed to speed up investment and boost competitiveness.
This temporary increase in Community co-funding, provided on application from the member state concerned, will reduce the amount of matching national funding required in budget years 2011 and 2012.
The overall amount of EU money earmarked for rural development will not change and the temporary measures will not have any impact on the programming period after 2013. The report by Paolo De Castro (S&D, Italy) was adopted in plenary session by 622 votes to 60, with 17 abstentions. The Council is expected to agree formally to the proposal in the coming days. The new rules will come into force as soon as they are published in the EU Official Journal. (LC/transl.rt)