In a report adopted on Tuesday 21 March by a large majority (29 votes in favour, 2 against and 2 abstentions), MEPs on the European Parliament regional development committee (REGI) again launched an appeal to the European Commission and member states not to give too much space to financial instruments that can undermine subsidies within the next Multiannual Financial Framework.
MEPs strongly structured the original text proposed by the rapporteur Andrey Novakov (EPP, Bulgaria) (compromise amendment 17) by introducing a large number of clarifications and toughening up its original idea.
They emphasised that the financial instruments primarily register the “best results” in the most developed regions and metropolitan zones or the financial markets that are already advanced. Their results, however, are less conclusive in regions of high employment, low population density or, more specifically, the outermost regions.
MEPs are continuing to call for a halt to the use of binding objectives when using financial instruments. They are also demanding that the increase in share of financial instruments does not impact on the financial contributions that are not refundable. They are, above all, calling for subsidies to remain dominant within future cohesion policy. They consider that the financial instruments should play a “complementary” role and underpin subsidies following ex ante economic analysis.
MEPs are demanding that financial instruments are only strengthened within the framework of the Interreg programme by ensuring that they have a greater coherence with European territorial cooperation targets.
The increase in financial instruments is at the centre of all concerns at the European Parliament, regions (see EUROPE 11738) and certain member states (see EUROPE 11737) – particularly because Brexit threatens to take so much more out of the future cohesion policy budget. (Original version in Frecnh by Pascal Hansens)