Brussels, 28/06/2016 (Agence Europe) - The European Commission announced on Monday 27 June that it had extended the special modifications to European structural and investment (ESI) funding for Cyprus and Greece, both countries having been particularly badly affected by the financial crisis.
Cyprus will enjoy an extension of an 85% EU co-financing rate. The 2014-2020 ESI funds regulation originally provided for Cyprus to benefit from an EU co-financing rate of 85%, the maximum legal rate under the European regional development fund (ERDF) and the European social fund (ESF), until June 2017, the remaining 15% having to be provided by the member state. The Commission proposes to extend the maximum EU co-financing rate for Cyprus until the end of the 2014-2020 programming period. According to the Commission, this extension will “relieve the Cypriot budget by €99 million” and help “ensure a smooth transition” after Cyprus' successful exit of the economic programme (see EUROPE 11528).
For Greece, the Commission is extending the temporary 10% increase in the stability support mechanism. This “top-up”, provided for in Regulation 1303/2013 which lays down common arrangements on the various regional funds, was due to end on 30 June 2016. The Commission notes that, from 2011 to 2015, thanks to this provision, Greece received €1.3 billion earlier than planned, allowing EU co-financed projects to get off the ground more quickly.
The Council and the European Parliament still have to approve the proposals. The Commission makes clear that they do not in any way modify the 2014-2020 ESI fund allocations.
Greece has already benefitted from a European Commission aid plan, using cohesion funds in July 2015 (see EUROPE 11391 and 11360). (Original version in French by Pascal Hansens)