Brussels, 07/11/2013 (Agence Europe) - On Thursday 7 November, cohesion policy reform took another step forward, following approval by the Parliamentary committee of the compromise on the contentious issues contained within this field, such as the controversial subject of macro-economic conditionality. If this compromise is passed, it will be of purely symbolic importance and although things have proved tough, nothing has yet been won. The plenary still has to have its last word before the €325 billion for the regions of Europe can be considered as being definitively approved for the 2014-2020 period.
Vote far from overwhelming. MEPs on the Parliamentary regional development committee endorsed the compromise on macro-economic conditionality, the performance reserve and the co-financing and pre-financing rates approved by Coreper at the end of October (see EUROPE 10953). MEPs, however, were few to vote on this and only 27 voted in favour, with 4 against, with 10 abstentions. The package was put to a vote as a whole because the chair of the committee, Danuta Hübner (EPP, Poland), would not allow the votes to be divided up, particularly on Articles 19 and 20 on macro-economic conditionality, to the great disappointment of Elisabeth Schroedter MEP (Greens, Germany). Schroedter, like other MEPs from the Italian and Greek delegations and United Left, abstained. They wanted to mark their opposition to this mechanism, whilst congratulating the negotiators on their work.
Symbolic measure. Constanze Krehl (S&D, Germany), rapporteur on the common strategic framework, helped draw up the compromise and energetically defended the achievements of Parliament. Although macro-conditionality has not been definitively removed, Parliament will be part in the decision-making process and has introduced very tight socio-economic safeguards. The MEP said that “it is true that conditionality will not be applied over the next seven years. That's the success of the negotiating team. We introduced so many safeguards, we put a spanner in the works”. She summed up what was left as being little more than symbolic. Commissioner for Regional Policy Johannes Hahn also confirmed to the press that this was theoretically an instrument of last resort and that it should “never be implemented”.
In the shadow of a second reading. It is not certain that macro-conditionality, presented in its present shape, will sufficiently reassure all the other MEPs. They will be called on to approve this compromise and the cohesion reform package as a whole in the plenary session at the end of the month. The groups are still divided and this time, MEPs will be able to vote on the amendments. This means that the shadow of a second reading procedure is still a possibility. Schroedter clearly explained the strategy to the Greens in this regard: “If we reject Articles 19 and 21, there will be a second reading to resolve this question and this question alone. We may win and the Council will be obliged to shift because it will understand that this is a vital point for the European Parliament”.
Adoption of this package is still therefore shrouded in uncertainty. Commissioner Hahn thinks, however, that, “for political reasons, the plenary will follow the committee's opinion and I whole-heartedly invite them to do so”. He stated that a second reading would postpone discussions to the first quarter of 2014, “which will obviously cause a delay in the implementation of cohesion policy reform”. He also said that “investors are waiting, regions are waiting. It is vital these programmes start on time”.
Key reform points. Although all eyes are still trained on the issue of macro-economic conditionality, progress should not be seen as referring to this issue alone. The vote on the compromise was precisely the missing piece of the puzzle because all the other compromises on reform had already been approved by the Parliamentary committee in July. These compromises confirm simplification of cohesion policy in the future, particularly by way of a common regulation on the five funds and an approach that aims to promote efficiency. On the one hand, funds will focus on SMEs, renewable energies, innovation, employment, the fight against unemployment and reducing poverty. On the other, quantifiable results will constitute the focus. Ex ante conditions and clear targets will have to be worked out and respected by the operational programmes. The commissioner said that this meant that there was a strategy and then the funding, not the opposite. This will also be promoted through the performance reserve, which will exclusively earmark 6% of funds at the end of the period for countries that have performed well. The reform effectively reorganises the regions in a more coherently according to their GDP, with categories of less developed regions (below 75% of the European average), transition regions (between 75% and 90% of the average) and more developed regions (above 90% of the average). (MD/transl.fl)