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Europe Daily Bulletin No. 11758
SECTORAL POLICIES / Regions

Council revises EU co-financing slightly downwards for natural disasters

On Wednesday 29 March, the Committee of Permanent Representatives to the Member States (COREPER) gave the go-ahead to beginning negotiations with the European Parliament on the proposal to amend the regulation on common provisions on the European fund for supporting regions devastated by natural disasters.

The member states nevertheless revised the co-financing rates in European Commission proposal slightly downwards to 90%.  The Commission had proposed a 100% co-financing rate as part of the new priority axis within the European Regional Development Fund (ERDF) to help the regions reconstruct damaged infrastructure following natural disasters (for example, earthquakes and floods) (see EUROPE 11680).

The Italian delegation was the only one to support the initial European Commission proposal, with the other member states calling for a minimum of co-financing at a national level, according to one diplomatic source.  The reason for this reduction could be quite simple: a member state provides better follow-up when it participates in the financing, even if it is at a minimum level.

This is the only change to the Commission proposal.  The Council is now ready to begin negotiations with the European Parliament, which is expected to reach a position during its next plenary session on 3 April.

MEPs deemed it appropriate to impose a budgetary ceiling set at 5% for this new priority axis, in an effort to avoid abusive use of this new provision (see EUROPE 11750).

According to one parliamentary source, the inter-institutional negotiations look as if they will be particularly simple given that there are only two amendments to the Commission proposal.   (Original version in French by Pascal Hansens)

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