On Tuesday 11 October, MEPs on the European Parliament’s regional development committee (REGI) voted (by 31 in favour and 3 abstentions) for the European Commission’s proposal to extend the special financial measures for Greece and Cyprus, given these countries' difficult economic situation.
The draft legislation aims to help the member states worst hit by the financial and economic crisis to continue implementing the programmes on the ground, said European Parliament rapporteur Iskra Mihaylova (ALDE, Bulgaria). The draft regulation, unveiled by the European Commission in June (see EUROPE 11582) aims to amend a number of the regulation’s measures on common arrangements (Regulation 1303/2013) for economically fragile member states.
In its current wording, Article 24 provides, for member states benefiting from financial aid, the option of increasing intermediate payments by 10% above the co-financing rate applying to the various European funds (ERDF, ESF, Cohesion Fund, EAFRD, FEAMP) but only until 30 June 2016. Once amended, the measure can run until 30 June of the year after the calendar year in which the member state stops receiving financial aid.
Amending Article 120, paragraph 3, of the same regulation would allow the 85% co-financing rate (rather than the usual 50%) to continue for Cyprus for the European Social Fund until the end of the programmes.
These are adjustments rather than a change to the actual financing granted to the two member states.
The European Parliament is expected to vote on the report at the second October plenary. (Original version in French by Pascal Hansens)