Brussels, 26/06/2012 (Agence Europe) - Due to the broad agreement between the EU27 states on four negotiating blocks, the Council has been able to conclude a substantial part of the technical aspects of the negotiations on the legislative package for reviewing 2014-2020 cohesion policy. On 26 June in Luxembourg, the General Affairs Council approved a partial general orientation on aspects relating to thematic concentration, the performance framework, financial instruments and net revenue generating operations (see EUROPE 10641). Nonetheless, given that not everything has been adopted, some points can still be renegotiated later.
Concentration. The final discussion of the heads of state occurred without any great drama accompanying it. Thematic concentration was the subject that divided most of the delegations but in the end the Danish minister for European affairs, Nikolai Wammen, was delighted that “the majority of delegations accepted the compromise”. The final text does not include any exceptions to the regulation on European Regional Development Funds (ERDF) for the more developed regions that are islands or those that form a crucial part of cohesion policy countries. Some delegations, such as Greece, Cyprus, Malta, Hungary, Slovenia and Bulgaria will not ultimately have benefited because these regions already particularly benefit from a form of favourable treatment. The Commission was delighted because Commissioner Johannes Hahn, responsible for regional development, was afraid that “exceptions would become the rule”. The Council, however, admitted a fourth thematic ERDF objective - information technologies. Furthermore, the funds will also be able to finance infrastructure in the most developed regions, contrary to what had initially been advocated by the Commission. Thematic concentration was generally made more flexible compared to the Commission's proposals but without losing sight of how best to take action, according to the terms used by Hungary and Poland.
Performance. With regard to the performance framework, modalities for suspending or getting rid of funds were established for cases where key objectives are not attained. Several delegations, however, regretted that this framework does not include any positive incentives. Italy firmly regretted that “with this approach, we are going to discourage ambitious projects, to find the lowest common denominator in terms of ambition, in an effort to avoid becoming subject to sanctions”. Poland also declared its wish to maintain the performance reserve in the block (which is negotiated with the Multiannual Financial Framework). Poland thinks that the text has now been watered down because “the majority of member states do not see the benefit of this mechanism”.
Instruments and revenue. The section on financial instruments stipulates that Structural Funds can be used to underwrite loans, guarantees, holdings or mutualisation of risk, as long as these instruments correspond to an identified need. The Netherlands, however, warned against innovative financial instruments, which have a potential but, as yet, unknown effect. Finally, the block on net revenue generating projects (road, rail, public transport, water, waste) is aimed at reducing spending eligible under EU co-funding. It also sets out the modalities for public-private partnerships.
Overall, the United Kingdom requested that in the future, under the Cypriot Presidency, the different workgroups tackle cohesion whilst better coordinating their efforts. Several delegations supported this approach and the British statement. (MD/transl.fl)