Brussels, 06/10/2015 (Agence Europe) - At its plenary session in Strasbourg on Tuesday 6 October, the European Parliament approved the proposal to modify the rules on the absorption of the structural and investment funds, in order to respond to the Greek crisis.
The report by Iskra Mihaylova (ALDE, Bulgaria) on the proposal amending the regulation (1303/2013) laying down the common provisions applicable to the various structural and investment funds (ERDF, ESF, Cohesion Fund, EAFRD, EMFF) was adopted by a very large majority (586 votes in favour, 87 against and 21 abstentions), under the emergency procedure.
The European Commission welcomes the vote of the European Parliament, “which paves the way for swiftly implementing the Jobs and Growth Plan for Greece” (presented by the Commission on 15 July). The aim is to allow Greece to make full use of EU funds and inject liquidity into the economy of the country. Greece is set to receive more than €35 billion, an amount from the EU budget already earmarked for the country over the years 2014-2020, under the European Structural and Investment Funds.
Not a blank cheque
“However, these exceptional measures don't represent a 'blank cheque' for the Greek government. If Greece doesn't speed up the pace of its payment applications for the programmes concerned before the end of 2016, it runs the risk of having to reimburse the additional initial pre-financing”, the rapporteur, Mihaylova warned.
The Commission's proposal, which was approved by the EP with no amendments (see EUROPE 11381), includes the early release of the last 5% of remaining EU payments, which would normally be retained until the closure of the programmes in 2017 and the complete removal of the need for national co-financing, meaning a 100% EU co-financing rate for 2007-2013. These measures aim to release additional immediate liquidity of some €500 million and to make a saving for the Greek budget of around €2 billion in 2015. It also increases the rate of initial pre-financing for programmes for 2014-2020 increase by seven percentage points, which may make a further billion euros available.
Following its formal adoption by the EU legislators, the text is expected to enter into force mid-October. (Original version in French by Lionel Changeur)