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Europe Daily Bulletin No. 11200
SECTORAL POLICIES / (ae) cohesion

Sharp divide between cohesion and net contributor countries

Brussels, 19/11/2014 (Agence Europe) - Net contributor countries had the last word at the General Affairs Council on cohesion policy on Wednesday 19 November. The reference to the use of flexibility in the EU's economic governance disappeared from the conclusions (in the 6th cohesion report). The request to extend spending eligibility from the 2007-13 programming period, put forward by net beneficiary countries, was ultimately deemed non-admissible.

The General Affairs Council cohesion policy produced a broad ranging and full debate between member states on the relationship between the EU's economic governance and cohesion policy, explained the Italian minister for regional policy, Graziano Delrio at the end of the Council. Delrio said, “some countries are more sensitive about growth and flexibility, whilst others are more concerned about budgetary consolidation” and affirmed that diverse levels of sensitivity had been displayed at the Council.

The differences expressed were highlighted in the disappearance from the conclusions adopted by ministers, of the paragraph referring to the best possible use of flexibility in the Stability and Growth Pact rules. Net contributor countries considered that this involved an interpretation of the conclusions adopted during the June European Council. They therefore succeeded in removing this reference to flexibility. In their conclusions, European ministers, however, did agree that, “the objectives of the recovery could be reached through coherent interaction within the framework of EU economic policies between consolidation of public finances, structural reforms and growth friendly investment, underpinned by cohesion policy”. Although certain net beneficiary countries would like the link between economic governance and cohesion policy to be made more flexible and are opposed to net contributor countries defending it, other net beneficiary countries highlighted the importance of quality when it came to spending. The conclusions illustrate the need to take into account national reform programmes and specific country recommendations in the programming.

Another division expressed during the Council focused on the subject of extending spending eligibility for the 2007-2013 programming period. This demand was presented in a joint declaration by Slovakia, the Czech Republic, Hungary, Slovenia, Croatia, Bulgaria and Romania (and supported by Malta and Cyprus).

Net contributor countries such as the United Kingdom, Sweden and Denmark, opposed this. The Commissioner herself was not receptive to this suggestion either. Corina Cretu considered that this request for extending the eligibility could open up a Pandora's box and said that it would be very difficult to reach an agreement on it within the co-decision procedure. (MD)

Contents

SECTORAL POLICIES
ECONOMY - FINANCE - BUSINESS
INSTITUTIONAL
EXTERNAL ACTION
COURT OF JUSTICE OF THE EU